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2020-12-31-accounts

Company registration number 01922826 Charity registration number 293194

Bankside Gallery Limited Company Limited By Guarantee

Trustees’ Report and consolidated financial statements 31 December 2020

Bankside Gallery Limited Company Limited By Guarantee

Contents

Page
Reference and administrative details 1
Trustees’ annual report 2 - 7
Independent examiner’s report 8 - 9
Consolidated statement of financial activities (incorporating the
income and expenditure account) 10
Consolidated group and charitable parent company balance sheet 11
` Notes to the financial statements 12 - 26

Bankside Gallery Limited Company Limited By Guarantee

Reference and administrative details

Name Bankside Gallery Limited
Charity number 293194
Company registration number 01922826
Registered office 48 Hopton Street
Blackfriars
London
SE1 9JH
Key personnel Director (executive): Angela Parker
Secretary Catherine Sullivan
Independent examiner Cara Turtington FCA DChA
Saffery Champness LLP
71 Queen Victoria Street
London EC4V 4BE
Bankers HSBC Bank Plc
22 Stamford Street
Blackfriars
London
SE1 9LJ

Page 1

Bankside Gallery Limited Company Limited By Guarantee

Trustees’ annual report For the year ended 31 December 2020

The trustees present their report on the accounts of the company for the year ended 31 December 2020, which are set out on pages 10 to 26. The financial statements have been prepared in accordance with accounting and reporting by Charities’ Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and republic of Ireland (FRS 102) and the Companies Act 2006.

Reference and administrative details

Reference and administrative details are shown on page 1 of the financial statements.

The Trustees

The Trustees who served the Company during the year were as follows:

Christopher Goodhart (Chairman) Mychael Barratt Sarah Burton (resigned 10 June 2020) James Faure Walker Jill Leman Victor Rae-Reeves Jennifer Smith David Ferry Peter Knowland (appointed 9 December 2020) Celeste Ricci (appointed 9 December 2020) Jess Morley (appointed 9 December 2020)

Structure, governance and management

Governing document and legal status

Bankside Gallery Limited is a company limited by guarantee; there are currently nine Members of the Company and, in the event of the Company being wound up, the liability in respect of the guarantee is limited to £1 per member. The Company is governed by its Articles of Association (amended by special resolution on 20 August 2014). The Company is also registered as a charity.

Related parties and connected organisations

Any transactions involving related parties or their associates, including Trustees and Key Personnel, must be disclosed to the full board of Trustees.

Bankside Gallery Limited is jointly and equally controlled by two charities, the Royal Watercolour Society and The Royal Society of Painter-Printmakers. The Company works closely in partnership with the two societies to pursue its charitable purposes and shares some common Board/Council members.

Under a written agreement between Bankside Gallery Limited, the Royal Watercolour Society and The Royal Society of Painter-Printmakers, the Company manages the Bankside Gallery, a centre of excellence for works on paper, located in Southwark, London, on behalf of the two societies.

Bankside Gallery Limited has one wholly-owned trading subsidiary, Bankside Gallery (Trading) Limited, which carries out ancillary trading activities on its behalf; further details can be found in note 6 to these financial statements.

Page 2

Bankside Gallery Limited Company Limited By Guarantee

Trustees’ annual report (continued) For the year ended 31 December 2020

Organisational structure

The governance and strategic planning of Bankside Gallery Limited is carried out by a Board of Directors, acting as trustees of the charity, which meets quarterly.

Day-to-day management of the Company, and of its trading subsidiary, is delegated to the Gallery Director, who is responsible for implementing the Company's strategic plan and for managing the team of staff at the Gallery.

A sub-committee of the Board, the Joint Executive Committee ('JEC'), is responsible for overseeing the implementation of the strategic plan and for working with the Gallery Director regarding any related issues that may arise between Board meetings, or which require more detailed work than would be appropriate at Board meetings. The membership of JEC comprises the Chairman of Bankside Gallery Limited, the Presidents of the two Societies and the Gallery Director.

The Gallery Director is charged with finding suitable artists or organisations to hire the Gallery for exhibitions when it is not being used for shows by Members of the two Royal Societies. To ensure the requisite standard of work, all external proposals are vetted by the two Society Presidents.

In addition to the Directors of Bankside Gallery Limited, and the Council Members of the two societies, the Company is grateful for the work of a small number of volunteers who assist at private views and educational events.

Remuneration review for key personnel is carried out annually in January and is undertaken by the Chairman. Staff performance against the charity’s annual budget is considered, as is the current inflationary environment with reference to the Consumer Price Index.

Recruitment and appointment of trustees

The Board of Bankside Gallery Limited comprises the Presidents of the Royal Watercolour Society and the Royal Society of Painter-Printmakers with up to ten other elected persons.

The elected Trustees are recruited on the recommendation of the Chairman of Bankside Gallery Limited, in consultation with the full Board, with the aim of ensuring that an appropriate balance of skills and experience is maintained. Any appointments are made, at a Board meeting, with the assent of the majority of the Trustees.

Risk assessment

As part of the regular process to review and update the Company's procedures to manage and mitigate risk, a comprehensive risk assessment register is in place and is reviewed annually by the Board; the most recent review was carried out in May 2020. The principal risks facing the Company are the loss of key staff, mitigated by the maintenance of up-to-date training manuals, dependency for income on a healthy economic environment, mitigated by careful financial management and prudent budgetary planning, and damage to the Gallery and its contents by flood water from faulty domestic appliances in the residential units which occupy the floors above the Gallery, mitigated by insurance and a financial reserve set aside by the Company.

In 2020 during the near seven months total closure period Bankside Gallery sought to minimise expenditure. It made full use of the government job retention scheme, and the business rates holiday, and applied for all

Page 3

Bankside Gallery Limited Company Limited By Guarantee

Trustees’ annual report (continued) For the year ended 31 December 2020

available grants Due to prudent financial management over the past 15 years the gallery has built up sufficient reserves to help weather closures in the short term, provided that it continues to make full use of all available financial resources.

Reserves Policy

The Trustees have reviewed the Company's need for reserves in line with the guidance issued by the Charity Commission.

They presently recognise the need to set aside amounts to cover:

The Trustees have assessed the likely cost of these eventualities and have set a target of £105,000 over a rolling 3-year period for General Fund reserves for the Company.

The balance held as unrestricted funds at the year-end was £179,038 (2019: £162,496), of which £142,532 (2019: £123,745) is regarded as free reserves, after allowing for funds designated or otherwise allocated by the Trustees for future depreciation of tangible fixed assets, and for specific contingencies or capital expenditure. The Company was building up reserves ahead of a refurbishment which took place during summer 2019.

Accounting records

The Company's accounting records are maintained by an outsourced bookkeeper who is suitably qualified for the task, and overseen by a charity-experienced Chartered Accountant who provides financial reports quarterly for the Board. Internal controls, appropriate for a charity of this size, have been put in place to protect the Company's funds and to ensure their proper application.

Objectives and activities

Objects

The Company's objects are to promote the benefit, enjoyment and appreciation of the visual arts by the general public and, in particular, to provide services and facilities of every description to charitable societies, associations or other charitable groups having as their purpose the furtherance of the visual arts, and the encouragement of persons in the practice thereof.

Page 4

Bankside Gallery Limited Company Limited By Guarantee

Trustees’ annual report (continued) For the year ended 31 December 2020

Aims and objectives

Bankside Gallery Limited aims to achieve its objects by being acknowledged as a centre of excellence for watercolours and printmaking. It currently has the following objectives which will enable it to achieve this aim:

Achievements and performance

The Trustees have paid due regard to the Charity Commission's guidance on public benefit in deciding what activities the Company should undertake. Bankside Gallery recognises and welcomes the need to carry out its charitable activities for the benefit of the general public and retains this aim at the centre of its strategic planning.

The Company offers free admission to all of its exhibitions and continues to work to increase the amount and breadth of education work it administers with the two Royal Societies, in the local community and beyond, seeking to involve people from the widest possible range of backgrounds and abilities.

During 2020 Bankside Gallery was severely impacted by the pandemic and was forced to close for nearly seven of the twelve months. The gallery

Financial review

Sources of funding and financial position

Bankside Gallery Limited funds its activities and administrative costs through grants and donations, including those from its two founding societies, exhibition submission fees from artists and commercial trading carried out by its subsidiary as described in note 6 to these financial statements.

The financial position of the Company is set out in the Statement of Financial Activities on page 10 and the Balance Sheet on page 11.

There was an increase in the General Fund during the year of £18,684 (2019 decrease: £46,971).

Page 5

Bankside Gallery Limited Company Limited By Guarantee

Trustees’ annual report (continued) For the year ended 31 December 2020

Including all funds, net funds increased during the year by £16,542 (2019 increase: £50,838) and, at 31 December 2020, the Company had total charitable funds of £179,038 comprising, as shown in Note 11, the Unrestricted General Fund of £147,325 and Unrestricted Designated Funds of £31,712.

Total income amounted to £332,743 (2019: £364,562), including income from the subsidiary's commercial trading operations of £123,246 (2019: £251,378). The cost of raising funds in the year was £114,432(2019: £190,955) and the cost of charitable activities was £201,769 (2019: £224,445).

Donated facilities

The Company enjoys full rent-free occupation and use of the Bankside Gallery and office premises at 48 Hopton Street, London. Further details can be found in note 14 to these financial statements.

Plans for future periods

Plans for 2021 have again been severely disrupted by the pandemic with the gallery only allowed to open from 17 May.

Currently the Company plans to carry out the following activities:

Trustees’ responsibilities statement

The trustees (who are also directors of Bankside Gallery Limited for the purposes of company law) are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and the group and of the incoming resources and application of resources, including the income and expenditure, of the charitable group for that period. In preparing these financial statements, the trustees are required to:

Page 6

Bankside Gallery Limited Company Limited By Guarantee

Trustees’ annual report (continued) For the year ended 31 December 2020

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Small company provisions

This report has been prepared in accordance with the special provisions of part 15 of the Companies Act 2006.

This report was approved by the Trustees on 2021 and signed on their behalf by:

Christopher Goodhart Chairman

Page 7

Bankside Gallery Limited Company Limited By Guarantee

Independent examiner’s report For the year ended 31 December 2020

I report to the charity trustees on my examination of the consolidated accounts of the Group comprising Bankside Gallery Limited (“the Charity”) and its subsidiary undertaking for the year ended 31 December 2020.

Respective responsibilities of trustees and examiner

As the trustees of the Charity (and also its directors for the purposes of company law) you are responsible for the preparation of the consolidated accounts of the Group in accordance with the requirements of the Charities Act 2011 (‘the 2011 Act’) and the Companies Act 2006 (‘the 2006 Act’). You are satisfied that the accounts for both the Charity and the Group are not required by charity law to be audited and have chosen instead to have an independent examination.

Having satisfied myself that the accounts of the Company and the Group are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity’s accounts as carried out under section 145 of the 2011 Act. In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5) (b) of the 2011 Act.

Basis of independent examiner’s report

My examination was carried out in accordance with the general Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently no opinion is given as to whether the accounts present a ‘true and fair view’ and the report is limited to those matters set out in the statement below.

Independent examiner’s statement

Since the Charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of the Institute of Chartered Accountants in England and Wales, which is one of the listed bodies.

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:

  1. accounting records were not kept in respect of the Charity and its subsidiary as required by section 386 of the 2006 Act; or

  2. the accounts do not accord with those records; or

  3. the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a ‘true and fair view’ which is not a matter considered as part of an independent examination; or

Page 8

Bankside Gallery Limited Company Limited By Guarantee

Independent examiner’s report (continued) For the year ended 31 December 2020

  1. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities.

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

Cara Turtington FCA DChA

15 September 2021

Saffery Champness LLP 71 Queen Victoria Street Chartered Accountants London EC4V 4BE

Page 9

Bankside Gallery Limited Company Limited By Guarantee

Consolidated statement of financial activities (incorporating the income and expenditure account) For the year ended 31 December 2020

Note
Income from donations and legacies
Grants and donations received
Donated facilities
Government grants – CJRS income
Other trading activities
Commercial trading operations
6
Investment income
Interest received
Charitable activities
Operation of art gallery
Total income
Expenditure on
Fundraising and marketing costs
2
Commercial trading operations
6
Charitable activities
Operation of art gallery
2
Total expenditure
3
Net income/(expenditure)
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward		 Unrestricted
general fund
£
101,065
38,770
46,908
123,246
896
310,885
21,858
332,743
3,965
110,467
114,432
199,627
314,059
18,684
18,684
128,642
147,326		 Unrestricted
designated
funds
£
-
-
-
-
-
-
-
-
-
-
-
2,142
2,142
(2,142)
(2,142)
33,854
31,712		 Total
funds
2020
£
101,065
38,770
46,908
123,246
896
310,885
21,858
332,743
3,965
110,467
114,432
201,769
316,201
16,542
16,542
162,496
179,038		 Total
funds
2019
£
49,052
38,770
-
251,378
1,120
340,320
24,243
364,563
11,964
178,991
190,955
224,445
415,400
(50,837)
(50,837)
213,333
162,496

The Statement of financial activities includes all gains and losses in the year. All of the above amounts relate to continuing activities. The notes on pages 12 to 26 form part of these financial statements.

Page 10

Bankside Gallery Limited Company Limited By Guarantee

Consolidated group and charitable company balance sheets As at 31 December 2020

Note
Fixed assets
Tangible assets
5
Investments
6
Current assets
Stocks
7
Debtors
8
Cash at bank
Creditors: amounts falling
due within one year
9
Net current assets
Creditors: amounts falling
due over one year
9
Total assets less current
liabilities
Net assets
Funds
Restricted income funds
Unrestricted income funds
11
Total funds		 Group
2020
2019
£
£
11,604
15,205
-
-
11,604
15,205
11,365
11,972
3,820
4,729
269,695
198,750
284,880
215,451
(70,589)
(68,160)
214,291
147,289
(46,857)
-
225,895
162,496
179,038
162,496
-
-
179,038
162,496
179,038
162,496		 Charitable Company
2020
2019
£
£
11,604
15,205
2
2
11,606
15,207
-
-
68,769
29,517
185,871
136,566
254,640
166,083
(40,351)
(18,794)
214,289
147,289
(46,857)
-
225,895
162,496
179,038
162,496
-
-
179,038
162,496
179,038
162,496		 Charitable Company
2020
2019
£
£
11,604
15,205
2
2
11,606
15,207
-
-
68,769
29,517
185,871
136,566
254,640
166,083
(40,351)
(18,794)
214,289
147,289
(46,857)
-
225,895
162,496
179,038
162,496
-
-
179,038
162,496
179,038
162,496
15,207
-
29,517
136,566
166,083
(18,794)
147,289
-
162,496
162,496
-
162,496
162,496

For the year ended 31 December 2020 the company is exempt from audit under section 477 of the Companies Act 2006. The members have not required the company to obtain an audit of its accounts for the year in question in accordance with s476.

The directors acknowledge their responsibilities in complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

The accompanying notes form an integral part of these financial statements.

The parent company has taken advantage of the exemption from the requirement to publish a separate income and expenditure account in accordance with Section 408 of the Companies Act 2006. The deficit for the year for the stand alone parent company was £30,366 (2019: £50,837 deficit).

These financial statements were approved by the Trustees and authorised for issue on the and are signed on their behalf by:

Christopher Goodhart Chairman Company Registration No.01922826

The notes on pages 12 to 26 form part of these financial statements.

Page 11

Bankside Gallery Limited

Notes to the financial statements For the year ended 31 December 2020

1. Accounting policies

1.1

Basis of accounting

The financial statements have been prepared in accordance with accounting and reporting by Charities’ Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Bankside Gallery Limited meets the definition of a public benefit entity under FRS 102. Assets and liabilities are wholly recognised at historical costs or transaction value unless otherwise stated in the relevant accounting policy note(s).

The financial statements are prepared in sterling, which is the functional currency of the Charity. Monetary amounts in these financial statements are rounded to the nearest £. The financial statements have been under the historical cost convention.

1.2 Basis of consolidation

These financial statements include the results of Bankside Gallery Limited together with its wholly owned subsidiary undertaking Bankside Gallery (Trading) Limited, whose financial year end is also 31 December.

1.3 Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. The trustees have considered the impact of the coronavirus pandemic on the charity. The trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.4 Income

All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

Donations are recognised when the charity has been notified in writing of both the amount and settlement date. In the even that a donation is subject to conditions that require a level of performance before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that those conditions will be fulfilled in the reporting period.

Legacy gifts are recognised on a case by case basis following the granting of probate when the administrator for the estate has communicated in writing both the amount and the settlement date.

Income generated from the supply of goods or services is included in the Statement of Financial Activities in the period in which the supply is made.

Page 12

Bankside Gallery Limited

Notes to the financial statements (continued) For the year ended 31 December 2020

1. Accounting policies

(continued)

1.4 Income

(continued)

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank.

1.5 Expenditure

All expenditure is accounted for on an accruals basis. All expenses including support costs and governance costs are allocated or apportioned to applicable expenditure headings.

The Trustees believe the charity has a single charitable activity of running the Bankside Gallery. Support and governance costs have been allocated to the charitable activity.

Governance costs comprise all costs involving the public accountability of the charity and its compliance with regulation and good practice. These costs related to statutory compliance and legal fees on constitutional matters.

Staff costs are allocated to activities on the basis of staff time spent on those activities.

Costs of charitable activities include governance costs and an apportionment of support costs (shown in note 2).

1.6 Donated facilities

The value of donated Gallery space and office accommodation is based on a professional valuation of the annual market rental, carried out in May 2005 by Drivers Jonas.

1.7 Fixed assets

Expenditure on equipment, fixtures and fittings that exceeds £2,500 is capitalised. All fixed assets are initially recorded at cost.

1.8 Depreciation

Depreciation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful economic life of that asset as follows:

Extension - Evenly over the remainder of the lease Fixtures, fittings & equipment - 25% straight line on cost

1.9 Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Page 13

Bankside Gallery Limited

Notes to the financial statements (continued) For the year ended 31 December 2020

1.10 Financial instruments

The Charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial assets are recognised in the Charity’s statement of financial position when the Charity becomes party to the contractual provisions of the instrument.

Financial assets are classified into specified categories. The classification depends on the nature and purpose of the financial assets and is determined at the time of recognition.

1.11 Basic financial assets

Basic financial assets, which include trade and other receivables and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Other financial assets classified as fair value through the statement of financial activities are measured at fair value.

1.12 Operating lease agreements

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged against profits on a straight line basis over the period of the lease.

1.13 Pension costs

The company operates a defined contribution pension scheme for employees. The assets of the scheme are held separately from those of the company. The annual contributions payable are charged to the statement of financial activities.

1.14 Taxation

No provision for taxation is included in the financial statements as the charitable company is entitled to exemption from tax on income and gains applied to wholly charitable activities.

Page 14

Bankside Gallery Limited

Notes to the financial statements (continued) For the year ended 31 December 2020

2.
Expenditure
Direct
costs
£
Fundraising and marketing
3,965
Commercial trading
operations
15,902
Operation of art gallery
40,913
Total
60,780
Costs of charitable activity
Gallery and office space (donated)
Support costs
Property costs
Administration
Finance costs
Depreciation
Governance costs (see below)
Governance costs
Independent examination fee
Other		 Staff
costs
£
-
51,446
118,775
170,221		 Support
costs
£
-
43,118
42,082
85,200		 Total
2020
£
3,965
110,466
201,770
316,201
38,770
38,770
23,296
52,523
4,949
1,460
2,972
85,200
4,060
781
4,841		 Total
2019
£
11,964
178,991
224,444
415,399
38,770
38,770
82,225
48,234
6,519
1,658
5,269
143,904
3,940
1,329
5,269

Page 15

Bankside Gallery Limited

Notes to the financial statements (continued) For the year ended 31 December 2020

2.
Expenditure
2019 Expenditure
Direct
costs
£
Fundraising and marketing
11,964
Commercial trading
operations
46,042
Operation of art gallery
38,770
Total
96,776
3.
Net income/(expenditure) for the year
This is stated after charging:
Depreciation
Independent Examiner’s fee
Operating lease costs:
Equipment
4.
Staff costs and emoluments (Group)
Total staff costs were as follows:
Wages and salaries
Social security costs
Other pension costs		 Staff
costs
£
-
85,911
88,808
174,719		 Support
costs
£
-
47,038
96,866
143,904		 Continued
Total
2019
£
11,964
178,991
224,444
415,399
2020
2019
£
£
1,460
5,525
4,060
3,940
4,251
4,251
2020
2019
£
£
155,259
156,802
8,945
12,307
6,017
5,610
170,221
174,719		 Continued
Total
2019
£
11,964
178,991
224,444
415,399
2020
2019
£
£
1,460
5,525
4,060
3,940
4,251
4,251
2020
2019
£
£
155,259
156,802
8,945
12,307
6,017
5,610
170,221
174,719
2019
£
156,802
12,307
5,610
174,719

Page 16

Bankside Gallery Limited

Notes to the financial statements (continued) For the year ended 31 December 2020

Particulars of employees

The average number of employees during the year, calculated on the basis of average head count, was as follows:

as as follows:
Full time staff
Part time staff		 Number
2020
2
8
10		 Number
2019
2
6
8

In addition, an average of 4 (2019: 10) people were employed during the year, on a temporary basis, to hang exhibitions and to cover staff holidays.

No employee received remuneration of more than £60,000 during the year (2019: £60,000).

The charity considers its key management personnel to comprise the trustees, and the Gallery Director. The total employment benefits of the key management personnel were £55,050 (2019: £57,825) and pension contributions of £4,224 (2019: £4,228) were made in the period.

Page 17

Bankside Gallery Limited

Notes to the financial statements (continued) For the year ended 31 December 2020

5. Tangible fixed assets

Group and charitable company

Gallery
refurbishments
£
Cost
At 1 January 2020
72,390
Additions
-
At 31 December 2020
72,390
Depreciation
At 1 January 2020
72,390
Charge for the year
-
At 31 December 2020
72,390
Net book value
At 31 December 2020
-
At 31 December 2019
-		 Extension
Other
improvements,
fixtures &
equipment
£
£
12,000
91,626
-
14,615
12,000
106,241
8,890
79,531
250
17,966
9,140
97,497
2,860
8,744
3,110
12,095		 Total
£
176,016
14,615
190,631
160,811
18,216
179,027
11,604
15,205

Page 18

Bankside Gallery Limited

Notes to the financial statements (continued) For the year ended 31 December 2020

6. Investments

Group Charitable company
2020 2019 2020 2019
£ £ £ £
Subsidiary undertaking at cost - - 2 2

The company owns 100% of the share capital of its trading subsidiary, Bankside Gallery (Trading) Limited, which is incorporated in England and Wales. Bankside Gallery (Trading) Limited carries out all trading operations of the charitable parent company. In that capacity it operates a bookshop at Bankside Gallery, charges fees for exhibition and corporate hire of the Gallery, and takes a commission on paintings and prints sold on behalf of artists exhibiting at the Gallery. Bankside Gallery (Trading) Limited donates all of its taxable profits to Bankside Gallery Limited under Gift Aid. Financial statements are filed with the Registrar of Companies.

A summary of the profit and loss account for Bankside Gallery (Trading) Limited for the year ended 31 December 2020 can be found below:

Trading income
Other income
Expenditure
Taxation
Profit
Donation to Bankside Gallery Limited under Gift Aid		 2020
£
123,246
285
(110,467)
-
13,064
(13,064)
-		 2019
£
251,378
761
(178,992)
-
73,147
(73,147)
-

7.

Stocks

Group Charitable company
2020 2019 2020 2019
£ £ £ £
Bookshop – goods for resale 11,365 11,972 - -

Page 19

Bankside Gallery Limited

Notes to the financial statements (continued) For the year ended 31 December 2020

8.
Debtors
Group
2020
2019
£
£
Trade Debtors
-
-
Amount due from subsidiary
Company
-
-
VAT debtor
-
-
Prepayment and accrued income
3,820
4,729
3,820
4,729
9.
Creditors
Amounts falling due within one year
Group
2020
2019
£
£
Trade creditors
4,792
9,667
Amount due to Royal Society of
Painter-Printmakers
600
151
Amount due to Royal
Watercolour Society
600
-
VAT creditor
3,957
7,823
Other creditors, accrual and
deferred income
57,497
50,519
Bank loan
3,143
-
70,589
68,160
Amounts falling due over one year

2020
2019
£
£
Bank loan
46,857
-
46,857
-		 Charitable company
2020
2019
£
£
208
-
63,834
22,291
1,008
2,605
3,719
4,621
68,769
29,517
Charitable company
2020
2019
£
£
-
1,123
600
151
600
-
-
-
36,008
17,520
3,143
-
40,351
18,794
2020
2019
£
£
46,857
-
46,857
-		 Charitable company
2020
2019
£
£
208
-
63,834
22,291
1,008
2,605
3,719
4,621
68,769
29,517
Charitable company
2020
2019
£
£
-
1,123
600
151
600
-
-
-
36,008
17,520
3,143
-
40,351
18,794
2020
2019
£
£
46,857
-
46,857
-
18,794
2019
£
-
-

Page 20

Bankside Gallery Limited

Notes to the financial statements (continued) For the year ended 31 December 2020

Bank loans are analysed as follows:

Over five years
Within two to five years
Within one to two years
Within one year		 2020
£
7,033
30,238
9,586
3,143
50,000		 2019
£
-
-
-
-
-		 2020
£
7,033
30,238
9,586
3,143
50,000		 2019
£
-
-
-
-
-

During the year the galley secured loan funding in the form of a Bounce Back Loan of £50,00. The fixed interest rate is 2.5% and the loan is repayable in instalments.

10. Commitments under operating leases

At 31 December 2020 the company and group had commitments under non-cancellable operating leases as set out below.

Operating lease payments falling due:
Within 1 year
Within 2 to 5 years		 Assets other than
land and buildings
2020
2019
£
£
3,980
3,980
5,307
5,307
9,287
9,287		 Assets other than
land and buildings
2020
2019
£
£
3,980
3,980
5,307
5,307
9,287
9,287
9,287

11. Unrestricted income funds

Insurance Claim Fund
Legacies Fund
General Fund		 Balance at
1-Jan-2020
10,000
23,854
128,642
162,496		 Incoming
resources
-
-
332,743
332,743		 Outgoing
resources
-
(2,142)
(314,059)
(316,201)		 Balance at
31-Dec-2020
10,000
21,712
147,326
179,038

Page 21

Bankside Gallery Limited

Notes to the financial statements (continued) For the year ended 31 December 2020

Insurance Claim
Fund
Legacies Fund
General Fund		 Balance at
1-Jan-2019
10,000
20,721
182,612
213,333		 Incoming
resources
-
-
364,562
364,562		 Outgoing
resources
-
(3,867)
(411,533)
(415,400)		 Transfers
-
7,000
(7,000)
-		 Balance at
31-Dec-2019
10,000
23,854
128,642
162,496

The Insurance Claim Fund was established with the proceeds of an insurance claim for flood damage at the Gallery, with a balance held sufficient to cover the insurance excess payable in respect of any two future claims.

The Legacies Fund may be used at the discretion of the Trustees and is set aside as a contingency fund for future initiatives.

12. Analysis of net assets between funds 2020

Tangible Investments
Net current
Company Fixed Assets
assets
£
£
£
Unrestricted
Income Funds:
Designated Funds
6,810
-
24,902
General Fund
4,794
2
189,387
Total Funds
11,604
2
214,289
Tangible
Net current
Group
Fixed Assets
assets
£
Unrestricted Income Funds:
Designated Funds
6,810
24,902
General Fund
4,794
189,388
Total Funds
11,064
214,290		 Non current
liabilities
£
-
(46,857)
(46,857)
Non current
liabilities
£
-
(46,857)
(46,857)		 Total
2020
£
31,712
147,326
179,038
Total
2020
£
31,712
147,326
179,038

Page 22

Bankside Gallery Limited

Notes to the financial statements (continued) For the year ended 31 December 2020

Analysis of net assets between funds 2019

Tangible
Investments

Company
fixed assets
£
£
Unrestricted Income Funds:
Designated Funds
10,310
-
General Fund
4,895
2
Total Funds
15,205
2
Analysis of net assets between funds 2019
Tangible

Group
fixed assets
£
Unrestricted Income Funds:
Designated Funds
10,310
General Fund
4,895
Total Funds
15,205		 Net current
asset
£
23,544
123,745
147,289
Net current
asset
£
23,544
123,747
147,291		 Total
2019
£
33,854
128,642
162,496
Total
2019
£
33,854
128,642
162,496

13. Contingencies

In the opinion of the Trustees there were no contingent liabilities at 31 December 2020 (2019:nil).

14. Related party transactions

The Trustees consider that there is no ultimate controlling party of the charitable company.

As described in the Trustees’ Annual Report earlier in these financial statements, the charity has a close working relationship with the Royal Watercolour Society and the Royal Society of PainterPrintmakers, and manages Bankside Gallery on their behalf. In order to carry out this function, the charity is afforded full occupation and use of the Gallery and office premises at 48 Hopton Street, London, in return for granting an indemnity to the Royal Watercolour Society in respect of all outgoings and covenants under the Lease held by the Society from the Corporation of London Borough of Southwark.

Page 23

Notes to the financial statements (continued) For the year ended 31 December 2020

Bankside Gallery Limited

The annual benefit of the use of the donated facilities was valued in 2005, by Drivers Jonas (Chartered Surveyors), at the figure shown immediately below; the Board considers that it would be uneconomic to commission a more recent valuation, and that the value of the benefit has not materially changed during 2020.

aterially changed during 2020.
2020 2019
£ £
Gallery space and office accommodation 38,770 38,770

This donation is fully reflected in the Statement of Financial Activities.

Annual donations are made to Bankside Gallery Limited by the Royal Watercolour Society and The Royal Society of Painter-Printmakers to cover a proportion of the running costs of the Gallery, in recognition of the company's role in helping the two societies to achieve their charitable aims. Donations may also be made if the Societies decide to promote any exhibitions beyond their regular annual programme.

A summary of these donations during the year follows:

Royal Royal
Watercolour Society of
Society Painter-Print
makers
£ £
Donations towards running costs of Bankside Gallery 23,850
23,850

This income has been included in the financial statements under incoming resources, and the outstanding balances with related parties at the year end are disclosed in notes 8 and 9 above.

Furthermore, Bankside Gallery Limited benefits from an indemnity in the joint names of the Royal Watercolour Society and The Royal Society of Painter-Printmakers whereby, for periods of 2 years at a time, both societies agree to provide such support and assistance as may be agreed with the company and, additionally, the Royal Watercolour Society agrees to make good any shortfall up to a maximum of the sum identified in the Company's budgets over the same period. For the year ended 31 December 2020, no call on the indemnity was required.

During the year Bankside Gallery undertook transactions with its subsidiary, Bankside Gallery (Trading) Limited. Total costs of £85,238 (2019: £120,616) were recharged to the trading subsidiary in relation to staff, property and administrative costs. At the year end the subsidiary owed £63,834 (2019: £22,291) to the charity.

Page 24

Bankside Gallery Limited

Notes to the financial statements (continued) For the year ended 31 December 2020

15. Company limited by guarantee

The Bankside Gallery Limited is a charitable company limited by guarantee and does not have share capital.

Every member of the company undertakes to contribute to the assets of the company in the event of the same being wound up while he is a member, or within one year after he ceases to be a member, for payment of debts and liabilities of the company contracted before he ceases to be a member, and of the costs, charges and expenses of winding up, and for the adjustment of the rights of the contributories among themselves, such amount as may be required not exceeding £1.

Page 25

Bankside Gallery Limited

Notes to the financial statements (continued) For the year ended 31 December 2020

16. Statement of financial activities comparative information

Income from:
Donations and legacies
Grants and donations
received
Donated facilities
Other trading activities
Commercial trading
operations
Investment income
Interest received
Charitable activities
Operation of art gallery
Total income
Expenditure on
Fundraising and marketing
costs
Commercial trading
operations
Charitable activities
Operation of art gallery
Total expenditure
Net income/(expenditure) and
net movement in funds
Transfers between funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward		 Unrestricted
Unrestricted
General
Designated
Funds
Funds
£
£
49,052
-
38,770
-
251,378
-
1,120
-
340,320
-
24,243
-
364,563
-
11,964
-
178,991
-
190,955
-
220,578
3,867
411,533
3,867
(46,970)
(3,867)
(7,000)
7,000
182,612
30,721
175,612
33,854		 Total
Funds
2019
£
49,052
38,770
251,378
1,120
340,320
24,243
364,563
11,964
178,991
190,955
224,445
415,400
(50,837)
-
213,333
162,496

Page 26