BEECROFT ART TRUST Charity Registration No 310658
ANNUAL REPORT & ACCOUNTS
YEAR ENDED 31[st] MARCH 2022
BEECROFT ART TRUST
Charity Registration No 310658 Year Ended 31[st] March 2022
Contents
| Trustees Annual Report | 1 |
|---|---|
| Statement of Trustees’ Responsibilities | 4 |
| Independent Examiner’s Report | 5 |
| Statement of Financial Activities | 6 |
| Balance Sheet | 7 |
| Notes to the accounts | 9 |
BEECROFT ART TRUST Charity Registration No 310658 Year Ended 31[st] March 2022
Trustees Annual Report
The Trustee is pleased to present their report and accounts for the year ended 31 March 2022.
The accounts have been prepared in accordance with the accounting policies set out in note 2 to the accounts and comply with the Trust's governing document, the Charities Act 2011 and the Statement of Recommended Practice, Charities SORP (FRS102).
Objectives and activities
The promotion of the study of art, music, and literature and in particular, but without prejudice to the generality of the foregoing, the provision and maintenance of the Beecroft Art Gallery, at Southend-onSea, in the County of Essex as a public art gallery and library.
The gallery now has over 2,000 works in its permanent collections, including works by Constable, Molenaer, Bright, Epstein, Weight, Lear and Seago.
The art trust is administered and maintained for the objects set out in its governing document by the City Council, which meets any deficit incurred each year on operating the facility.
The Trustees in making decisions about the Trust make those decisions with due regard to the objects of the Trust.
In addition, they have due regard to their legal duty to carry out the Trust’s charitable purposes for the Public Benefit and the Charity Commissions’ guidance thereon.
Achievements and performance
The Beecroft Art Trust is currently maintained to allow the purposes in its Governing document set out below to take place during the financial year 2021/22.
Following on from the Trustees decision on 10[th] December 2020 to sell the former gallery building in Station Road the property was marketed by Dedman Gray Commercial with a guide price of £1,000,000. The deadline for bids was 5.00 pm on Friday 26[th] November 2021.
The sale of the former gallery building was completed on 8[th] February 2022 with a sale price of £1,300,000.
The Coronavirus restrictions were eased from 12th April 2021, as outlined in the Government’s roadmap. The Beecroft Gallery in the ‘Old Library’ building reopened as soon as it had an approved COVID-19 risk assessment in place. Operating hours returned to ‘normal’ and the Beecroft Gallery was open for 260 days during the year.
The Trustee considers that the performance of the charity during the year was good.
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Charity Registration No 310658 Year Ended 31[st] March 2022
BEECROFT ART TRUST
Plans for the future
The Trustees will look at the option of securing a more permanent solution to its occupancy of the “Old Library” building on Victoria Avenue.
Financial review
The cost of maintaining the Beecroft Art Trust exceeded the net income and the operating deficit of £181,060 (2021: £84,374) this has been partially funded by a donation from the Southend-on-Sea City Council General Fund with the remainder being reported as a deficit on the Trusts unrestricted fund.
Reserves Policy
The trust does not need to hold reserves as any deficit which arises on the operation of the trust, should the trust have no funds to meet it, is funded by Southend-on-Sea City Council, which is sole trustee of the trust.
Going concern
Beecroft Arts Trust meets the definition of a public benefit entity under FRS102. There are no material uncertainties about the charity’s ability to continue as a going concern.
Structure, governance, and management
Governing documents
The Trust’s Governing document is in the form of a Scheme sealed by Order of the Commissioners on 18[th] February 1980.
Trustee recruitment and training
Southend-on-Sea City Council elected members are corporate Trustees. Therefore, Councillors once elected become a corporate Trustee of the Trust.
Risk Assessment
The city council, when carrying out risk assessments for its own activities, includes within the assessment the activities of the trust, so any major risks applicable to the trust are covered by the council arranging appropriate insurance or having in place strategies to cover other contingencies.
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Charity Registration No 310658 Year Ended 31[st] March 2022
BEECROFT ART TRUST
Background
The Beecroft Art Gallery was founded by the late Walter G. Beecroft of Leigh-on-Sea, who set up a trust fund to purchase the building and collected paintings which formed the nucleus of the present collection.
Opened in 1953, the building was extended in 1960 when Sydney Thorpe Smith bequeathed his collection of local topographic works which illustrate the development of the Southend area as seen through the eyes of local artists to the gallery.
Due to serious ongoing structural problems the building in Station Road was closed in Autumn 2013.
The Beecroft Art Gallery was reopened in Autumn 2014 at the old Central Library building. The gallery occupies the basement, ground floor and 1st floor levels; the lower levels are used for temporary exhibitions and the first floor is used for a bigger display of the permanent collection and a costume gallery.
Despite significant efforts by Council officers, it was not possible to bring the former Gallery Building back into use for the purposes of the Trust after it was vacated in 2013. In December 2020 the Trustee opted to use the statutory sale provision in Section 6 of the Trusts of Land and Appointment of Trustees Act 1996 and proceed to sell (complying with S117-119 of the Charities Act 2011) and the proceeds will become investment permanent endowment.
At the same meeting the Trustees agreed to retain the Beecroft art collection in the former library building on an ad hoc basis.
Reference and administrative details
Trustee
Southend-on-Sea City Council
Secretary/Treasurer to the Trust
Southend-on-Sea City Council
Address
Civic Centre Victoria Avenue Southend-on-Sea Essex SS2 6EP
Independent Examiner
TC Group The Courtyard Shoreham Road Upper Beeding Steyning West Sussex BN44 3TN
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BEECROFT ART TRUST
Charity Registration No 310658 Year Ended 31[st] March 2022
Statement of Trustees’ Responsibilities
The Trustees are responsible for preparing accounts which give a true and fair view of the state of affairs of the Charity as at the end of each financial year and the income and expenditure of the Charity for that period.
In preparing those accounts, the Trustees are required to:
-
Select suitable and applicable accounting policies and then apply them consistently
-
Make judgement and estimates that are reasonable and prudent
-
Prepare the financial statements on a going concern basis unless it is inappropriate to presume that the organisation will continue in business
The Trustees are also responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the Charity and enable it to ensure that the financial statements comply with charity legislation and the relevant governing instruments. They are responsible for safeguarding the Charity’s assets and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Results
The Trust’s financial results are as per the annexed accounts.
By order of the Trustees
Signed J Chesterton J Chesterton (Mar 12, 2024 08:05 GMT) Joe Chesterton, Executive Director (Finance & Resources) Date Mar 12, 2024
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BEECROFT ART TRUST Charity Registration No 310658 Year Ended 31[st] March 2022
Independent Examiner’s Report
I report on the accounts of the Trust for the year ended 31[st] March 2022, which are set out on pages 6 to 14.
Responsibilities and basis of report
As the charity trustees of the Trust you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’).
I report in respect of my examination of the Trust’s accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.
Independent examiner’s statement
I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
-
accounting records were not kept in respect of the Trust as required by section 130 of the Act; or
-
the accounts do not accord with those records; or
-
the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 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.
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.
Mark Cummins FCCA
For and on behalf of TC Group Office: Steyning, West Sussex Dated:
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BEECROFT ART TRUST
Charity Registration No 310658 Year Ended 31[st] March 2022
Statement of Financial Activities
| 2021/22 2021/22 2021/22 |
2020/21 | |
|---|---|---|
| Unrestricted Endowment Total |
Total | |
| Funds Funds Funds |
Funds | |
| Note | £ £ £ |
£ |
| Income From | ||
| Donations 3 | 56,060 - 56,060 |
84,374 |
| Investments 4 | 1 - 1 |
3 |
| Fixed Asset Disposal | - 925,000 925,000 |
- |
| Total Income | 56,061 925,000 981,061 |
84,377 |
| Expenditure on | ||
| Charitable activities 5 | 181,061 13,277 194,338 |
84,377 |
| Total expenditure | 181,061 13,277 194,338 |
84,377 |
| Net income/expenditure and net movement in funds |
(125,000) 911,723 786,723 |
- |
| Reconciliation of Funds | ||
| Total funds brought forward | - 2,344,295 2,344,295 |
2,344,295 |
| Total funds carried forward | (125,000) 3,256,018 3,131,018 |
2,344,295 |
All income and gains for the year are recognised on the statement of financial activities. All the Charity's activities are classified as continuing.
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BEECROFT ART TRUST
Charity Registration No 310658 Year Ended 31[st] March 2022
| Balance Sheet | ||
|---|---|---|
| 2021/22 | 2020/21 | |
| Total Funds |
Total Funds |
|
| Note | £ | £ |
| Fixed Assets | ||
| Tangible Assets 6 |
- | 375,000 |
| Heritage Assets 6 |
1,969,295 | 1,969,295 |
| Total Fixed Assets | 1,969,295 | 2,344,295 |
| Current Assets | ||
| Cash at bank and in hand | 1,162,353 | 620 |
| Total Current Assets | 1,162,353 | 620 |
| Liabilities | ||
| Creditors: Amounts falling due within one year 7 |
(630) | (620) |
| Net current assets/(liabilities) | 1,161,723 | - |
| Total assets less current liabilities | 3,131,018 | 2,344,295 |
| The funds of the charity | ||
| Unrestricted Funds 8 |
(125,000) | - |
| Endowment funds 9 |
3,256,018 | 2,344,295 |
| Total charity funds | 3,131,018 | 2,344,295 |
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BEECROFT ART TRUST
Charity Registration No 310658 Year Ended 31[st] March 2022
Statement of Cash Flows
| 2021/22 | 2020/21 | |
|---|---|---|
| Total Funds |
Total Funds |
|
| Note | £ |
£ |
| Cash flows from operating activities: | ||
| Net cash provided by (used in) operating expenses 10 |
(138,268) | (13) |
| Cash flows from investing activities: | ||
| Dividends, interest and rents from investments | 1 | 3 |
| Proceeds from the sale of property, plant and equipment | 1,300,000 | - |
| Net cash provided by (used in) investing activities | 1,300,001 | 3 |
| Cash flows from financing activities: | ||
| Net cash provided by (used in) financing activities | - | - |
| Change in cash and cash equivalents in the reporting period |
1,161,733 | (10) |
| Cash and cash equivalents at the beginning of the reporting period 11 |
620 | 630 |
| Cash and cash equivalents at the end if the reporting period 11 |
1,162,353 | 620 |
Approved by the Trustee and signed on its behalf by an authorised signatory.
Signed
J Chesterton J Chesterton (Mar 12, 2024 08:05 GMT)
Joe Chesterton, Executive Director (Finance & Resources) Southend-on-Sea City Council for the Trustee Date Mar 12, 2024
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BEECROFT ART TRUST Charity Registration No 310658 Year Ended 31[st] March 2022
Notes to the accounts
Note 1 Legal Status
Beecroft Art Trust is an unincorporated charity registered in England and Wales (charity number 310658).
Note 2 Accounting Policies
Basis of preparation
The accounts 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 (FRS 102) (effective 1 January 2016) – (Charities SORP (FRS 102)), and the Charities Act 2011.
Beecroft Art Trust meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s). There are no material uncertainties about the charity’s ability to continue as a going concern given the continued support of Southend-on-Sea City Council.
Income
Donations and other forms of voluntary income are recognised as incoming resources when receivable, except insofar as they are incapable of financial measurement.
Charitable activities - represent income from rent and are recognised when receivable.
Investment income is accounted for when receivable.
Expenditure
Expenditure is accounted for on an accruals basis exclusive of the element of VAT which is recoverable by Southend-on-Sea City Council in accordance with VAT Notice 749 para 7.5.
Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries.
Tangible fixed assets and depreciation
Tangible fixed assets are capitalised at cost. Land is not depreciated. Buildings are depreciated on a straight-line basis over their useful life. The art collection is held as a heritage asset and is not depreciated on the basis it is expected to increase in value.
Cash at bank and in hand
Cash at bank and in hand includes cash and short term highly liquid investments. No separate bank account is maintained by the Trust, therefore all income and expenditure pass through the City Council’s account, and its cash balances are held within the City Council’s general bank account.
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BEECROFT ART TRUST Charity Registration No 310658 Year Ended 31[st] March 2022
Creditors and provisions
Creditors and provisions are recognised where the charity has present obligation resulting from a past event that will probably result in a transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably.
Critical accounting estimates and judgements
In the application of the charity's accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised.
The trustees do not consider that there are any critical estimates or areas of judgement that need to be brought to the attention of the readers of the financial statements.
Note 3 Income from Donations
Donations of £56,060 (2021 £84,374) were from Southend-on-Sea City Council as the funding required to make up the operational deficit for the year. Included in the donation of £56,060 are the following donated services:
| Employees – seconded staff Administration |
2022 2021 £ £ 54,588 - 340 343 |
|---|---|
| 54,928 343 |
Note 4 Income from Investments
Interest earned on cash balances held within Southend-on-Sea City Council and invested in accordance with the City Council’s Treasury Management Policy.
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BEECROFT ART TRUST Charity Registration No 310658 Year Ended 31[st] March 2022
Note 5 Cost of Charitable Activities
| Charitable Activities | |
|---|---|
| 2022 2021 Restated |
|
| £ £ |
|
| Employees | 58,591 - |
| Exhibition Expenses | 15,215 3,829 |
| Building/Ground Maintenance | 19,218 4,272 |
| Business Rates | 19,149 19,149 |
| Utilities | 53,593 48,064 |
| Insurance | 14,300 8,100 |
| Supplies & Services | 13,277 - |
| Governance costs | 630 620 |
| Administration | 365 343 |
| 194,338 84,377 |
The support costs incurred are the administration services provided by Southend-on-Sea City Council and governance costs. Total support costs for the year were £995 (2021: £963).
Governance costs comprise solely of fees paid to independent examiners. During the year £630 (2021: £620) was paid to the independent examiner in respect of examination services.
Employee costs relate to employees of the Council.
No staff are remunerated over £60,000 in the year.
The charity is managed by Southend-on-Sea City Council and doesn’t have any key management personnel.
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Charity Registration No 310658 Year Ended 31[st] March 2022
BEECROFT ART TRUST
Note 6 Fixed Assets
| Asset cost, valuation, or revalued amount Balance brought forward @ 01/04/21 Disposals Balance carried forward @ 31/03/22 Accumulated depreciation and impairment reviews Balance brought forward @ 01/04/21 Disposals Balance carried forward @ 31/03/22 Net Book Value Brought forward @ 01/04/21 Carried forward @ 31/03/22 |
Freehold Land & Buildings Art Collection (Heritage Assets) Total £ £ £ 1,250,000 1,969,295 3,219,295 (1,250,000) - (1,250,000) |
|---|---|
| - 1,969,295 1,969,295 |
|
| 875,000 - 875,000 (875,000) - (875,000) |
|
| - - - |
|
| 375,000 1,969,295 2,344,295 |
|
| - 1,969,295 1,969,295 |
Note 7 Creditors
Amounts falling due within one year
| Other Creditors | 2022 2021 £ £ |
|---|---|
| 630 620 |
Note 8 Unrestricted fund
The unrestricted fund has ended the financial year in deficit, the Trustees recognise that this is not a sustainable situation and a plan to mitigate this in the next financial year is in place.
Note 9 Endowment fund
The endowment comprises of the collection of art held by the Trust, the land and buildings owned by the charity and the funds received from the sale of the Station Road building, less the costs of sale.
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BEECROFT ART TRUST
Charity Registration No 310658 Year Ended 31[st] March 2022
Note 10 Reconciliation of net income/(expenditure) to net cash flow from operating activities
| 2021/22 | 2020/21 | |
|---|---|---|
| Total Funds |
Total Funds |
|
| £ | £ | |
| Net income/(expenditure) for the reporting period (as per the statement of financial activities) |
786,723 | - |
| Adjustments for: | ||
| Dividends, interest and rents from investments | (1) | (3) |
| Loss/(profit) on the sale of fixed assets | (925,000) | - |
| Increase/(decrease) in creditors | 10 | (10) |
| Net cash provided by (used in) operating activities | (138,268) | (13) |
Note 11 Analysis of cash and cash equivalents
| 2021/22 | 2020/21 | |
|---|---|---|
| Total Funds |
Total Funds |
|
| £ | £ | |
| Cash in hand | 1,162,353 | 620 |
| Total cash and cash equivalents | 1,162,353 | 620 |
Note 12 Trustee remuneration
No trustee was paid in respect of their services as a trustee in 2021 or 2022 and no expenditure was reimbursed.
Note 13 Related Party Transactions
During the year the trustee (Southend-on-Sea City Council) donated £56,060 (2021: £84,374) to the Trust to contribute to the operational deficit for the year. Southend-on-Sea City Council collected a further £1 (2021: £3) on behalf of the Trust in respect of income generated from facilities hire and interest earned on cash balances. The Trust paid the Council £193,708 in respect of operating costs for the year (2021: £83,757).
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Charity Registration No 310658 Year Ended 31[st] March 2022
BEECROFT ART TRUST
Note 14 Comparative Funds
| 2020/21 2020/21 2020/21 |
2020/21 2020/21 2020/21 |
2019/20 | |
|---|---|---|---|
| Unrestricted Endowment Total |
Total | ||
| Funds Funds Funds |
Funds | ||
| Note | £ £ £ |
£ | |
| Income From | |||
| Donations 3 |
84,374 - 84,374 |
176,506 | |
| Investments 4 |
3 - 3 |
5 | |
| Charitable activities | - - - |
1,726 | |
| Total Income | 84,377 - 84,377 |
178,237 | |
| Expenditure on | |||
| Charitable activities 5 |
84,377 - 84,377 |
178,237 | |
| Total expenditure | 84,377 - 84,377 |
178,237 | |
| Net income/expenditure and net movement in funds |
- - - |
- |
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130 Beecroft Art Trust 2021-22
Final Audit Report
2024-03-12
Created: 2024-03-11 By: Elizabeth Anslow (elizabethanslow@southend.gov.uk) Status: Signed Transaction ID: CBJCHBCAABAANRFbQ0qcX-xTQ17CPHe9iAXXbXwEE2Ns
"130 Beecroft Art Trust 2021-22" History
Document created by Elizabeth Anslow (elizabethanslow@southend.gov.uk)
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Document emailed to joechesterton@southend.gov.uk for signature
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Signer joechesterton@southend.gov.uk entered name at signing as J Chesterton 2024-03-12 - 8:05:27 AM GMT- IP address: 86.153.200.166
Document e-signed by J Chesterton (joechesterton@southend.gov.uk)
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Agreement completed.
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