City and Guilds Art School Property Trust Annual Report and Financial statements 31 August 2022 Company Limited by Guarantee Regi5trathon Number 00992490 (England and Wales) Charity Regisiraiw Numb 312871
Contents Reports Reference and administrative infomialion Truslee5' report Independent auditor's report Flnancial Statements ststement of financial activities 12 Balan sheet 13 Ststemenl of cash flows 14 Principal accounting policies Notes to the financial statements 19 City and Guilds Art School Property Trust
Reference and administratlve information Trustees John Taylor MBE (Chairman} Humphrey Carey Aidan Crawshaw Heather Hilburn Brendan Finucane KC Timothy Schroder Sir Alan Yarrow Secretary Nieholas Rampley Rogistgred office Fishmongers, Hall London Bridge London EC4R 9EL Telephon& 020 7626 3531 Prlnclpal office 124 Kennington Park Road London SE11 40J Telophone Facsimile 020 7735 2306 020 7582 5361 Auditor Buzzacott LLP 130 Wood Street London EC2V 6DL Bankors Barclays Bank plc Soulhwark Branch 29 Borough High Street London SE1 1LY Company registratlon number 00992490 IEngland and Wales) Charity règistration number 312871 City and Guilds Art School Propety Trust 1
Trustees. report Year lo 31 August 2022 The Board of Trustees {'the Board") of City & Guilds Art School Property Trust I'the Charit) presents its annual report and the aud((ed financial slalements for the year ended 31 August 2022. The report has been prepared in accordance with Part 8 of the Charities Act 2011 and is also the report of the directors for the purposes of the Companies Act 2006. The financial statements have been prepared under the accounting policies sel out therein and comply with applicable law and Accounting ané Reporting by Charities= Sialemenl of Recommended Practice applicable lo Gharrties preparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland IFRS 102). Constitutlon The Charity is registered as a company and has the status of a company limited by guarantee. not having a share capital. Its governing document is ils Memorandum and Articles of Association dated 30 September 1970 and amended lo allow for current governance arrangements on 7 March 2006. Principal aims and adivities The principal aim of the Charity. which was founded in 1879. is to support the leaching and training of students in the arts, crafts and sciences of the Fine Arts. This activity is consislenl with the objects contained within the Memorandum of Association of the Charity. On 31 March 2012, the educational activities of the City & Guilds of London Art School Ltd I ttte Art School") were Iransfeffed lo CGLAS Trust (Company No: 078175191 under a business transfer agreement. CGLAS subsequently changed ils name lo the City & Guilds of London Art School Limited and is continuing the educational activities of the Art School. The Charity changed its name on 17 April 2012 from the City and Guilds of London Art School lo the City & Guilds Art School Property Trust. The objects of the Charity have not changed. The Art School's land and buildings al 114- 124 Kenninglon Park Road were retained by the Charity whose principal activity today is to maintain and develop these properties for the ongoing benefit of the Art School, in accordance with a phased masterplan established in 2008109. This also includes the renting of additional property, such as the Old Vauxhall Telephone Exchange Building in adjacent Kennings Way, as required lo deliver the masterplan and to support the Art School's development in other ways. Govemante. structure and management Oryanisation The Trustees are directors of the Charity for the Pufposes of the Companies Act 2006 and are Trustees of the Charity for the pijrposes of Charity legislation. The Board is the policy-rnaking body of the Charity. 11 is assisted by the Secretary. who is appointed by the Board. City and Guilds Art School Property Trust 2
Trustees, report Year lo 31 August 2022 Governance. structure and management {conlinued) Oryanisation (conlinued) Adminislralive, fundraising and other tasks are performed by staff employed by the City & Guilds of London Art School. An annual service charge is levied by the Art School in consideration of this. Risk management The Trustees have assessed the major risks to which the Charity is exposed. In particular, these relate lo the Charity's finances, buildings and heatth and safety matter5. All areas of risk are monitored through the Charity's governance slru¢lure which identifies the lines of responsibility and decision making adminislralive and financial, and in particular those relating lo the planning and execution of major building refurbishment projects. The Trustees ensure that the Charil¥s operations are protected against significant risk through an annual monitoring cycle and risk assessment. The Charity has a comprehensive insurance cover against key areas of risk,. in addition lo Public Liability Insurance cover up lo £10m and Director's Liability of cover of up to £2m. The Charity's buildings are Insured al their full re-build value. The Board is satisfied that systems are in place lo miligale, or control where possible, the CharilVs exposure to these risks. Key managemont Pgrsonnel The key management personnel of the Charity are the Trustees and the Company Secretary. The Trustees do not receive remuneration from the Charity. Statement of Trustees. responsibllities The Trustees (who are also directors of the Property Trust for the purposes of company18w} are responsible for preparing the Trustees, report and financial ststements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom G8nerally Accepted Aecounling Praclicel. Company law requires the Trustees lo prepare financial statements for each financial year which give a true 2nd fair view of the slate of affairs of the charitable company and of the income and expenditure of the charitable company for that period. In preparing these financial slalemenls. the Trustees a required lo.. select suitable accounting policies and then apply them consistentjy,. observe the methods and principles in Accounting and Reporting by Charities.. Sialemenl of Recommende¢Y Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 102).. City and Guilds Art School Propety Trust 3
Trustees, report Year to 31 August 2022 Govemance, strurture and management Icontinued) Statement of Trustoes, responsibilities (wntinued) make judgements and estimates that are reasonable and prudent- • slate whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained In the financial slatemenls-, and • prepare the financial statements on the going concern basis unless it is inappropriate lo presume Ihal the chaTrtable company will continue in operation. The Trustees are responsible for keeping proper a¢¢ounting records that disclose with reasonable accuracy al any time the financial position of the charitable company and enable them to ensure that the financial slalemenls comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irTegularitie$. Each of the Tnjstees confirms that.. so far as the Trustee is aware, there is no relevant audit infomiatson of which the Charity's auditors are unaware,. and the Trustee has taken all the steps that he or she ought lo have tsken as a Trustee in order to make themselves aware of any relevant audit informatK)n and lo establish that the Charity's auditors are aware of that information. This confirmation is given and should be interpreted in accordance with the provisions of s418 of the Companies Act 2006. Board of Trustees The members who are in office al the dale of thi$ report are listed on page 1. No Trustee received any remuneration for services as a member of the Board12021- none) and no Trustee was reimbursed for travelling expenses12021 none). Objectlves and relevant pollcles The Charity's objectives are set lo reflect its educational aims and ethos. In setting these, the Trustees have given due consideration to the Charity Commission's general guidance on public benefit. The CharilVs key objectives for the year included= • Maintaining the Charity's property in good order for the benefit of the Art School, through a programme of annual maintenance and repair work.. • Extending Planning Permission and Listed Building Consent for the approved scheme lo renovate and partially redevelop Victorian studio buildings at the rear of 11&124 Kenninglon Park Road.. City and Guilds Art School Propety Trust 4
Trustees, report Year lo 31 August 2022 Objectives and relevant policies Iconlinuedl • To continue to support the Art School in ils work in any other wayE appropriate, in line with the Charity's slated objects. Grant-glving policy The Property Trust does not actively solicit grant applications, however from lime lo lime may award grants lo instilulions. In previous years the Property Trust has made grants lo the City and Guilds of London Art School, in order lo fvrther the Trust's objeelive lo support the Art School. The grant amounts are (Jiscussed and approved by the Board of Trustees. Activitles Developmentproject and otherreffurbishments No development work look place during the year, as the Art School consolidates ils position and pul into place a new Strategic Plan which will help direct how the Trust can best support it. During the course of the year the focus has therefore been on future developments and lo that end the Trust has pursued the renewal of planning con$enl for Ihe'Phase 3, development project for which consents had previously been granted, and in negotiation of the lease renewal for the two floors of the Vauxhall Telephone Exchange building which the Trust rents from British Telecom. Aside from that, the various repair and maintenance works completed during the summer fflonlhs included roof repairs lo the Georgian buildings, replacement of the flat roof over the WC block al the rear of the VicloriarTr Studio buildings, intensive cleaning of the alriLsm entrance structure lo address wear and lear, and repairs lo the lower terrace brick wall and railings lo address tree root damage. Financial Revlew Results for the year The Charity's funds structure is made up of unreslricled funds, the general fund and the designated fixed asset fund, as well as restricted funds that are held for specific purposes {albeil theywere £nil al the balance sheet dale). In order to separate the impact of the property development within the financial slalemenls, the Charity established a designated fund lo represent the value of ils tangible fixed assets. When the Charity incurs expenditure on tangible fixed assets, which is capitalised, the amounts are transferred from other revenue funds lo the designated fund. The reslricled funds of the Charity relate lo funds received for the development of the properties, notwithstanding that no such funds were received in the cuent year. These funds would either be expended during the year on the properties or transferred lo the designated fixed asset fund when costs are incurred for work on the properties which is capitalised. The Charity recorded an operating deficit on unrestricted funds before transfers of £1,431 12021 £2.557). The Charity expended £nil 12021 £118,419) in relation lo the development of its buildings during the year. The Charity capitalised a total of £nil of fixed asset additions12021- £nill. City and Guilds Art School Property Trust
Trustees, report Year to 31 August 2022 FlnanGlal R•vlew (continued) Reserves policy and golng concern The Board has examined the requirement for free reserves i.e. those funds not invested in 18ngible fixed assets, not designated for specific purposes, not reslricled and not otherwise committed. Al 31 August 2022 the Charity held negative free reserves of £19,995 due lo unforeseen unfunded professional fees costs. The Charity secured an additional loan facility {of £150,000) in 2019120 to assist with working ¢apil21 needs during the current period of reduced development and related fundraising activity which will be fully repaid in April 2024. The Board has reviewed the Charity's future forecasts and cash flow position and consider that the Charity will have sufficient working capital to meet the Charity's liabilities out of ils core rental income as they fall due while recognising that, in exlremis, ils strong fixed asset base would enable il lo have recourse further loan funding rf necessary. The Trustees have concluded that there are no material uncertainties related lo events or conditions that may cast signrficant doubt on the ability of the Charity lo continue as a going concern. Flnancial position The balance sheet shows total funds of £1,559,971 12021 - £1,641,327> of which £nil12021 £nill is reslricled. Restricted funds either raised for, and their use reslricled lo, specrfi purposes or comprising donations subject to donor imposed conditions, have been used in accordance with these reslriclions. Unreslricled funds of the Charity at 31 August 2022 total £1,559,971 {2021 £1,641.327}. These funds are represented by general fund tsngible fixed assets of £1,579,96612021 £1,659,891) and a free reserves deficit of £19,99512021- deficit of £18,564). Future plans While significant development activity has currently paused, the Property Trust will continue lo work with the Art School on progressing with other works to undertake specrfic improvements lo buildings and facilities on the Kenninglon sile la renovation of the frontsge of the part of the Georgian terrace was undertaken early in 2022-23, for example). and lo plan for the next phases of masterplan works in due course. A priority for the immediate future continues to be secure renewal of the Planning and Listed Building Consenl for a scheme lo refurbish and partially redevelop Victorian studio buildings al the Tear of Ihe Art School for a further pericxj and lo keep under review how best this can be utilised to meet the Art School's future needs. The Charlty's assets Acquisitions and disposals of fixed assets during the year are recorded in the notes lo the financial statements. Approved by the Board on 2L L S'L s and signed on its behaK by.. John Tayi r MBE {Chairman City and Guilds Art School Property Trust 6
Independent auditorfs report Year lo 31 Altgust 2022 Indepondenl audilor's report to the Momr$ of City & Gullds Art School Property Trust Opinion We have audited the financial slalemenls of City and Guilds Art School Property Trust {Ihe 'charilable company'l for the year ended 31 August 2022 which comprise the stslemenl of financial aclivilies, the balance sheet, the statement of cash flows, the principal accounting policies and the notes lo the financial slalements. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards. including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland, (United Kingdom Generally Accepted Accounting Practice). In our opinion, the financial slalements.. • give a true and fair view of the slate of the charitable company's affair$ as at 31 August 2022 and of ils income and expendtture for the year then ended., have been propedy prepared in accordance with United Kingdom Gener811y Accepted Accounting Practice,. and have been prepared in accordance with the requirements of the Companies Act 2006. Basis for oplnlon We conducted our audit in accordance with Intemalional Standards on Auditing IUKI IISAS IUK}l and applicable law. Our SponSIbl1111eS under those standards are further described in the auditor's responsibilities for the audit of the financial sl8lemenls section of our report, We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these reqLtirements. We believe that the audit evidence we have obtained is sufficient and appropriate lo provide a basis for our opinion. Conclusions relating to going concem In auditing the financial statements, we have concluded that the Trustees, use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not idenlffied any material uncertainties relating lo events or conditions that, individually or collectively, may cast significant (Joubl on the charitable company's ability to continue as a going concern for a period of al least twelve months from when the financial statements are aulhorised for issue. Oijr resp)nsibililies and the responsibilities of the trustees with respect lo going concern are described in the relevant sections of this report. City and Guilds Art School Property Trust 7
Independent auditorfs report Year lo 31 August 2022 Other infom)ation The trustees are responsible for the other information. The other information comprises the inft)rmalion Included in the annual report, other than the financial slalemenls and our auditor's report Ihereon. Our opinion on the financial statements does not cover the other Information and, except lo the extent otherwise explicitly slated in our report, we do not express any form of assurance conclusion thereon. In ¢onnection with our audit of the financial statements. our responsibility is lo read the other information and, in doing so, consider whether the other information is materially inconsislenl with the financial statements or our knOedge obtained in the audit or otherwise appears lo be materially misslaled. If we idenirfy such material inconsistencies or apparent material misstatements. we are required lo determine whether there is a material misstalemenl in the financial slalements or a material misstatement of the other information. If, based on the work we have performed, weconclude that there is a material misstalementof thi$ other information. we are required to report that fact. We have nothing to report in this regard. Oplnlons on other matters prescribgd by the Companiès Act 2006 In our opinion. based on the work undertaken in the course of the audit.. * the infomiatson given in the trustees, report for the financial year for which the financial Stalements are prepared is consistent with the financial slatemenls,. and + the trustees, report has been prepared in accordance wlh applicable legal requirements. Matters on whlch we are requlred to report by exceptlon In the light of the knowledge and understanding ofihe charitable company and 115 environment obtained in the course of the audit, we have not identified material misstalemenls in the Iruslees, report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us lo report lo you if, in our opinion.. adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us,. or • the financial statements are not irb agreement wth the accounting records and returns., or certain disclosures of trustees, remuneration specified by law are not made", or we have not received all the information and explanations we require for our audit., or • the tTUStees were not entitled lo prepare the financial slalements in accordance with the small companies regime and take advantage of the small companies, exemptions in preparing the trijstees. report and from Ihe requirement to prepare a strategic report. City and Guilds Art School Propety Trust
Independent auditor's report Year lo 31 August 2022 Responslbllltlès of trustees As explained more fully in the trustee5' responsibilities slalemenl, the Iruslees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary lo enable the preparation of financial slalements that are free from material misslalemenl, whether due lo fraud or error. In preparing the financial slalemenls. the Iruslees are responsible for assessing the chariL8ble company's ability lo continue as a going concem, disclosing, as applicable, matters related lo going concern and using the going concern basis of accounting unless the trustees either intend lo liquidate the charitable company or lo cease operations, or have no realistic alternative but lo do so. Auditor's responsibilitie8 for the audit of the flnancial statements Our objectives are lo obtain reasonable assurance about whether the financial statements as a whole are free from material misslalemenl, whether due to fraué or error, and lo issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAS (UK) will always delect a material misstalemenl when il exists. Misstatements can arise from fraud or error and are considered materi81 if. individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial slalemenls. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above. lo delect material misslalemenls in respect of irregularities, including fraud. The exlenl lo which our procedures are capable of detecting irregul8rilies, including fraud is detailed below. Our approach lo identifying and assessing the risks of material misstatement in respe¢l of irregularities, including fraud and non-compliance with laws and regulations, was as follows.. the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills lo identrfy or recognise non-compliance with applicable laws and regulations,. we obtain8d an understanding of the legal and regulatory frameworks that are applicable lo the charitable company and determined that the most significant frameworks which are directly relevant to specrfic assertions in the financial statements are those that relate lo the reporting framework {Stalemenl of Recommende(J Pracllce.. Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland IFRS 1021 and the Charities Act 20111. Companies Act 2006 and those that relate lo éats protection (General Data Protection Regulalionl.. and identrfied laws and regulations were communicated within the audit team regularly and the team remained alert lo instances of non-compliance throughout the audit. Cily and Guilds Art School Property Trust 9
Independent auditor's report Year lo 31 August 2022 Auditor's respon$ibiliti¢s for the audit of the flnanelal Statements Iconlinuedl We assesseé the susceplibilily of the charitable company's financial statements lo material misslalemenl. including obtaining an understanding of how fraud might occur, by.. making enqulries of management as to their knowledge of actual, suspected and alleged fraud,. and considering the internal controls in place lo mitigate risks of fraud and non4ompliance with laws and regulations. To address the risk of fraud through management bias and override of controls, we.. perfom)ed analytical procedures to identify any unusual or unexpected relationships,. lesled journal entries to identify unusual Iransaclions,. assessed whether judgements and assumptions made in determining Ihe accounting estimates were indicative of potential bias., used data an8lytics lo investigate the rationale behind any significant or unusual Iransacb'ons.. lesled aulhori5alion controls on expenditure items, ensuring all expenditure was approved in line with the charitable company s financial procedures", and Performed substantive lesling over income to gain assurance that the income recognised was materially complete. In response lo the risk of irregularities and nonOp11ance wrth laws and regulations, we designed procedures which included, bul were not limited to.. agreeing financial statement disdosures lo underlying supporting documentation- reading the minutes of meetings of those charged with governancE,' and enquiring of management as to actual and potential litigation and claims. There are inherent limitations in our audit procedures des¢ribed above. The more removed that laws and regulations are from financial Iransaclions, the less likely il is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to idenlrfy non-complian with laws and regulations lo enquiry of the directors and other management and the inspection of regulatory and legal correspondence, rf any. Material misslalemenls that arise due to fraud can be harder to deted than those that arise from error as they may involve deliberate concealment or collusion. A further description of our responsibilities for the audit of the financial slalements is located on the Financi81 Reporting Council's website at www.frc.org uklauditorsresponsibilities. This descnplion forms part of our auditor's report. City and Guilds Art School Property Trust 10
Independent auditorfs report Year to 31 August 2022 Use of our report This report is made solely lo the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might slate to the ch8rilable companls members those mallers we are requlred lo stale to them in an auditor's report and for no other purpose. To the fullest exlenl permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable companls members as a body, for our audit work. for this report, or for the opinions we have formed. 6uao• Llf Hugh Swainson, Senior Stalulory Auditor For and on behalf of Buzzacott LLP, Slalulory Auditor 130 Wood Street London EC2V 6DL 19 May 2023 City and Guilds Art School Propety Trust 11
Statement of financial activities Year lo 31 August 2022 Unrestdcted funds 2022 Total fund8 2021 Total funds General De5ignalOd Re$bfjfa8d fvnd fund5 funds )tes In¢ome frorn: Chantsble ac*vities Rent re¢wvaNe Totsl Incomo 15 246,020 246,020 246,020 246.020 241,574 241.574 Expondlture on: Chantable activities . Costs of operatir¥J the Charity . Premises . Support o)sls Total Oxpondlturo 138,344 109,107 247.451 79.925 218,269 109,107 327,376 337,1Y26 101.625 438,651 79.925 N•t in¢orno l•xp•nditur•l 11.4311 179.9251 181,3561 1197,0771 Transfers bètw••n 9.10 N•t m0Ment in funds 11.4311 179.9251 181,3561 1197,0771 Fund balanc88 brought forward at 1 S8Ptemb8r 2021 118.5641 1.659.891 1,641,327 1.838.404 Fund balances carrfed forward at 31 August 2022 119.9951 1.579.966 1,559,971 1.641.327 l of the Charily's activities derived from continuing operations during the above tsvo financial years. The Charity has no recognised gains and losses other than those shown above. A comparative slalement for the previous year is included in note 16. City and Guilds Art School Property Trust 12
Balance Sheet 31 August 2022 2022 2022 2021 2021 Notes Frxed ass•t5 Tangible as$e18 1,579,966 1,659,891 Current ass•ts Debtors Cash at bank aftd in hand 66,877 40.727 107,604 77.900 103,669 181,569 Crodlt¢r8.' amounts falling due thin one year Net current assets Total assets less eurrent {92,1231 1114,3901 15,481 67,179 1,595,447 1.727,069 Credltors.. f8llirvJ after more than one year Total net assets 135,476) 1,559,971 185,7421 1,641,327 The funds of thfr charlty: Incorne fijnds.. Restricted funds Unrestricted funds.. General fund Designated funds 10 119,9951 1,579,966 1,559,971 118,5641 1,659,891 1,641,327 Approved by Ihe Board on 2 Z nknL Tr 2& and signed on ils behalf by.. John Ta r MBE Ichairmanl City and Guilds Art School Property Trust.. A company limited by guoranlee, Company Registration No.00992490 (England and Walesl 22 March 2023 City and Guilds Art School Property Trust 13
Statemont of cash flows 31 August 2022 Yoar to 31 Au9USt 2022 Year lo 31 August 2021 Notes N•t cash fl4)ws from op•ratlng actlvltles {27,466} 1135,4041 N•t cash flows from Sn Investlng ac¢lvitles Net cash flows from financlng activitles {35,4761 85,742 Change In cash and cash equlvalents In tho #r {62,9421 149.6621 Cash and cash equivalents at the beginning of the ye8r Cash #nd ¢a$h •quival•nts at the end of the ypar 103,669 40,727 153,331 103.669 Notes to the cash flow statement for thg ygar to 31 August 2022 A Rgconcillation of net expenditure to net cash (usod In) provlded by operatlng actlvltles 2022 2021 Nel income Deprec¢ation charge Decrease lincreasel in debtors Ilncreasel decrease in creditors, excluding repayments ol bormwing Net cash (used Sn) provlded by operatlng actlvitl$$ 181,3561 1197,0771 79,925 81,215 11,022 134,4341 137,0571 14,892 127,4661 1135.4041 B Cash flows from Investlng actlvltles: 2022 2021 Pur¢h8s8 of tangible fixad assèts Net cash used in in¥estin9 activitiès C Cash Ilows from finan¢ing a¢tivities: 2022 2021 Repayments of borrr)wi New loan taken out Nèt Cash us•d In flnanclng actlvltl•s (35,4761 164,258} 150,000 85,742 135,4761 D Anal15 ot ca$h and eash •quival•nts 31 August 2022 31 Augijsl 2021 Cash at bank and in hand 40,727 103,669 City and Guilds Art School Property Trust 14
Statement of cash flows 31 August 2022 E Analysis of changes in net debt A11 Sept6mb9r 2021 At31 August 2022 Cash flows Cash at bank and in hand Loan payments falling due within one year Loan payments falling due after morè than one year Totsl 103,669 148,5441 {85.7421 130,6171 162.9421 11.8771 50.266 114.5531 40,727 150,4211 135,4761 145,1701 City and Guilds Art School Property Trusl 15
Principal accounting policies 31 Aijgust 2022 Basis of accounting The financial slalements have been prepared under the historical cost convention with items initially recognised al cost or transaction value unless othermse slated in the relevant accounting policy nolels}. The financial statements have been prepared in accordance with Accounting and Reporting by Charities.. Slalement of Recommended Practice applicable lo charities preparing their accounts in accordance with the Financial Reporting Sland8ré applicable in the UK and Republic of Ireland IFRS 1021 {'Charities FRS 102 SORP'I, the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 and the Companies Act 2006. The charity conslilutes a public benefit entity as defined by FRS 102. The accounts are presented in sterling and are rounded lo the nearest pound. Critical accounting estimatès and areas of judgement Preparation of the accounts requires the Trustees and management lo make sKJnificanl judgements and eslimales. The items in the accounts where these judgements and estimates have been made include.. + the useful economic lives atlribuled to tangible fixed assets used lo determine the annual depreciation charge. As set out in the going concern accounting policy, the trustees have considered the irnpaet of the pandemic on the charity and have concluded that although there may be some negative consequences, il is appropriate for the charity lo conlinue lo prepare ils accounts on the going concern basis. Going concgm The Trustees have assessed whether the use of the going concern assumption is appropriate in preparing these financial statements. The Twslees have made this assessment in respect lo a period of one year from the dale of approval of these financial slatemenls. The Board has examined the requirement for free reserves i.e. those funds not invested in tangible fixed assets. not designated for specrfic purposes, not reslricled and not otherwise commilled. At 31 August 2022 the Charity held negative free reserves of £19.995 due lo unforeseen unfunded professional fees costs City and Guilds Art School Property Trust 16
Principal accounting policies 31 August 2022 The Trustees have reviewed the Charity's future forecasts and cash flow position. Having secured an additional loan facility lof £150.0001 in 2019120 to assist with working capital needs during the current period of reduced development and related fundraising activity. they consider that the Charity will have sufficient working capital to meet the Charity's liabilities out of ils core rental income as they fall due while recognising that, in extremis, ils strong fixed asset base would enable il lo have recourse lo further loan funding rf necessary. The Trustees have concluded that there are no material uncertainties related lo events of conéilions that may cast significant doubt on the abilty of the Charity lo continue 8$ a going concern. Income Income is Tecognised in the period in which the Charity is entitled lo ils receipt and the amount can be measured with reasonable certainly. Fees receivable and charges for serVIS and use of premises are accounted for in the period in which the service Is provided. Expendituro Expenditure is included in the statement of financial actNilies when incurred. Expenditure comprises the costs of charitable aclivilies on the Chartys primary charitable purpose, i.e. the operation of the Charity. The costs of operating the Charity include the costs of premises and governance costs. Grants payable are included in the statement of financial activities when approved by the Iruslees and when the intended recipient has either received all the funds. or has been informed of the decision lo make the grants and has satisfied all relevant and due terms and conditions. Tangible flxed assets Assets are included in these financial statements al cost at the date of acquisition together with the c051 of additions and improvemenls lo date. Depreciation is provided al the following annual rates in order to write off each asset over ils eslimaled useful life.. Freehold property 2% on cost. • Freehold property improvements 40A on cost., + Leasehold properly The minimum lrfe of the lease. Debtors Debtors are recognised at the settlement amount, less any provision for non-recoverabilily. Prepayments are valued al the amount prepaid. They have been discounted to the present value of the future cash receipt where such discounting is material. City and Guilds Art School Propety Trust 17
Principal accounting policies 31 August 2022 Cash at bank and in hand Cash at bank and in hand represents such accounts and instruments that are available on demand or have 8 maturity of less than three months from the dale of acquisition. Deposits for more than three months but less than one year have been disclosed as short term deposits. Cash placed on deposit for more than one year is disclosed as a fixed asset investment. Credltors and provisions Creditors and provisions are recognised when there is an obligation al the balance sheet dale as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the selllement can be estimated reliably. Credrtors and provisions are recognised at the amount the charity anlicipales it will pay to settle the debt. They have been discounted to the present value of the future cash payment where such discounting is material. Flnanclal Instruments The Trust only holds basic financial instruments as defined in FRS 102. The financial assets and financial liabilities of the Trust and their measurement basis are as follows.. Fin8nciel assets trade and other debtors are basic financial instnjmenls and 2re debt instruments measured at amortised cosl as detailed in note 6. Prepayments are nol financial inslrumenls. Cash al bank- is classified as a basic financial instrument and is measured at face value. Financial li8bilrfies- trade creditors, accruals and other creditors are financial instruments, and are measured al amortised cost as detailed in note 7. Taxation and social security are not included in the financial instruments disclosure definition. Deferred income is not deemed lo be a financial liability, as the cash settlement has already taken place and there is an obligation lo deliver services rather than cash or another financial inslrumenl. Fund accounting The general fund Comprises those monies which may be used towards meeting the charitable objectives of the Charity al the discretion of the Board. Within unrestricted funds, the designated fund represents the net book value of the Charity's tangible fixed assets. The restricted funds are monies raised for, and their use restricted lo. a specrfic purpose, or donations subject lo conditions imposed by the donor. City and Guilds Art School Property Trust 18
Notos to the financial statements Year to 31 August 2022 1 Net expendlture This is staled after charging-. General Designated fund fijnds Restricted funds Total 2022 Auditorfs remuneration-. . Statutory audit servicès Depreciatn Operating 188se rentals 5.226 5,226 79,925 95,774 79,925 95,774 General Designaled Reslricted fvrjd funds funds Total 2021 Auditorfs Trnwneration.. . Stalulory audll servKes Depreciation Operating lease ntaI$ 4,300 4,300 81,275 95,774 81,215 95, 774 2 Support costs 2022 2021 Management charges frorn the City & Guilds of London Art School Staff Costs Insuranc8 Legal and profèssional fees Govemance costs Interest on loans and bank char9es 51,778 43,796 27,204 15,766 4,132 5,185 5.$42 101,625 16.138 19.533 5,226 5,432 109,107 3 Staff costs and Trustees, remuneration During the year, the charity had no employees on its payroll12021- 0.4FTEI. The Charity's total staff costs in the year were therefore £nil12021 £27,204, of which £1,584 was in respect of employer's Nl and Pension conlributions). Management services were provided lo the charity by City and Guilds of London Art School to the value of £51,778 12021 £43.796). No Trustee received any remuneration or other emoluments in respect of their servlces as a member of the Board during the year12021 none). No Trustees were reimbursed for Iravelling expenses during the year (2021- none). The Charity has purchased insurance lo protect ilsew from any loss arising Irom the neglect or defaults of ils Trustees, employees and agents and lo indemnify the Trustees or other officers against the consequences of any neglect or default on their part. The insurance premium provided cover of up lo a maximum of £2 million12021- £2 million). City and Guilds Art School Property Trusl 19
Notes to the financial statements Yeai lo 31 August 2022 3 Staff costs and Trustoes, remuneration Iconlinuedl The aggregate remuneration of key management personnel was £nil12021 - £41,580). In the year ended 31 August 2022, key management personnel consisted of the Trustees and the Company Secretary. 4 Taxation City & Guilds Art School Property Trust is a registered Charity and therefore is not liable lo income tax or corporation lax on income derived from ils charitable activities. as it falls within the various exemptions available lo registered charities. 5 Tanglble flxed assets Freehdd Freehold land and propety property improvements Leasehold propety Totsl Ctsst At 1 September 2021 Add¢tions At 31 August 2022 382.169 595.872 1,472,585 2,450,626 382,169 595,872 1,472,585 2,450,626 D•prnclatlon At 1 September 2021 Charge for year At 31 August 2022 349.329 11.741 361,069 216,284 8,036 224,320 225,123 60,148 285.271 790,736 79,925 870,660 Net book values At 31 August 2022 At 31 August 2021 21,100 32,840 371,552 379,588 1.187,314 1,247,462 1,579,966 1.659,890 No formal valuation of Freehold land and property has been conéucled during the year, but in the opinion of the Trustees, the market value of the freehold property is well in excess of the figure shown above. 6 Debtors 2022 2021 Other debtors 66,877 66,877 77.900 77,900 City and Guilds Art School Propety Trust 20
Notes to the financial statements Year lo 31 August 2022 7 Credltors: amounts falling due within one yoar 2022 2021 Trade creditors Loan" Social se¢urity and other tsxes A¢cruals and deferTed income S.746 50.421 9,756 26,200 92,123 28,732 48,544 3,334 33,780 114.390 Included within creditors is the folloTrg deferred income, analysed as follows.. 2022 2021 At 1 S8ptember Deferred in the year Released in the year At 31 August 16.762 21,049 116,7621 21.049 16,762 16,762 116,7fj21 16,762 "The 2022 loan balance above is in respect of a bank borrowng facility wth Charity Bank in respect of which the charity drew-(Jown £150,000. It is being paid back by the charity on a monthly basis along with interest al 4.250/0 above the Bank of England base rale per annum, and will be fully repaid by April 2024. 11 is secured via a charge on the charity's 114 & 116 Kennington Park Road properties. Creditors.. amounts falling after more than one year 2022 2021 Loan 35,478 85,742 9 Restrlcted funds The income funds include reslricled funds comprising the following donations and grants held on trusts lo be appld for specffic purposes.. Balance at 1 Seplember 2021 Balance at31 Augu$t 2022 Donations Expenditufe Transfers Development Fund City and Guilds Art School Propety Trust 21
Notes to the financial statements Year to 31 August 2022 9 Restrlcted funds {conlinuedl B818n¢& B818nG8 8t31 August 2021 S8plgmbèr 2020 Donations Expenditure Tran818rs Development Fund 63, 757 (118,419J 54,662 The Development Fund Tepresents funds donated for the specrfic purpose of funding the Charity's Maslerplan development. Expenditure on work which is capital in nature is transferred lo a designated fixed asset fund, as explained in note 10 below. Expenéilure relating lo professional fees for design and other planning work on current and future maslerplan phases are expended. 10 Unrestrirtgd Funds Balancè at i September 2021 Balance September 2022 Incorne Expenditure Transfars G8n8ral Fund Design81od Fund 118.5641 1,659,891 1,641,327 246,020 1247,4511 179,9251 1327,3761 119.9951 1,579,986 1.559,971 246,020 Balance 811 September 2020 Balance al I September 2021 Income Expenditure Transfers Gener81 Fund Designated Fund 33,541 1,741, 106 1,774,647 241,574 (239,017) (81,215) (320,232) (54,662J (18,564) 1,659,891 1,641,327 241,574 (54,662) Designated fixed assets funds.. In order lo separate the impact of the property development within the financial statements. the Charity established a designated fund lo represent the value of ils tangible fixed assets. When the Charity incurs expenditure on tangible fixed assets, the amounts are transferred from other revenue funds lo the designated fund. A total of £nil 12021 £nill was transferred lo the designated fund dLÈring the year representing capital additions. In 2021, £54,662 of this capital work was fundetJ from restricted revenue funds raised. This year, no capital work was funded from the general fund 12021 none). The general fund showed a deficit of £19,99512021 deficit of £18.564) at the end of the financial year. City and Guilds Art School Property Trust 22
Notes to the financial statements Year lo 31 August 2022 11 Analysls of net assets between funds General Dèsignated nd funds Restricted funds Total 2022 Fund balan¢o5 at 31 August 2022
re repres•nt•d by:
Tangible fixed assets Current assets Creditors.. amounts falling due within one year Creditors.. amount falling due in more than one year Totsl net assets 1,579,966 1.579,966 107,604 107,604 192.1231 192.123 135,4761 119.9951 1,579.966 {35,4761 1,559.971 General Desynated fund funds R08tricterJ funds Tot 2021 Ftsnd balances al 31 August 2021 are repsented by.. T8ngible fixed assets Current 8$sgts CdIf0rs.' amounts falling due withln one year Cr8ditors.' amount falling du& An more than C8 year Tol81 netassets 1,659,891 1,659,891 181,568 181,568 (114,390J (114,390J (85,742) (18,564) 1,659.891 (85, 742) 1,641,327 12 Liabillty of mombers The Charity is constiluled as a company limited by guarantee. In the event of the Chartty being wound up members are required lo contribute an amount not exceeding £1 each. 13 Leaslng commltments Operating leases At 31 August 2022 the lolal of the Charity's future minimum payments under non-cancellable operating leases was.. Buildings 2022 2021 Amounts due wthin one year Amounts due between onè and five years 7.981 95,774 7.981 14 Capital mMItmentS As al 31 August 2022, the Charity had capital commitments of £nil {2021- £nill. City and Guilds Art School Property Trust 23
Notes to the flnanclal statements Year lo 31 August 2022 15 Related party transactlons During the year. The City & Guilds of London Art School and Guilds Art School Property Trust had shared management arrangements. The City & Guilds of London Art School is therefore considered a related party. The Trust recognised rental income from the Art School of £246.020 plus VAT in rent during the year {2021- £241,574 plus VAT}. The Art School charged the Charity a management fee for services provided of £44,577 12021- £29,420). 16 Comparative statement of financlal activlties UnrestrGted lund$ 2021 Total funds Ger81 08SSgnal Restricted fund funds nds Income from: Donations Charitable aCti%AeS . Reni receivable Total Incomo 241.574 241.574 241.574 241.574 Expendltufo on.. Charitable aGtswties . Cests of operats.ng the Charity Premises . Support costs Totsl •xpndltur• 137.392 101,625 239.017 81.215 118.419 337,026 101,625 438.651 81.215 118.419 incom• l•xpondlturel 2.557 181.2151 1118.4191 1197.077) Tran8f8r8 botwoon funds 154.6621 54.662 Net movement In fund 152.1051 181.2151 163.7571 1197.077) Fund b*lanco8 brought fon¥ard
t 1 Séptsmbèr 2020
33.541 1,741.106 63.757 1,838,404 Fund balaftcès carrhd fon¥ard •t 31 August 2021 118.5641 1,659.891 1.641,327 City and Guilds Art School Propety Trust 24