City and Guilds Art School Property Trust Annual Report and Financial statements 31 August 2023 Cornpany mited by Guarante* RegistratiN Number 00992490 (England and Walesl Chanty Registrat Nurnber 312871
Contents Reports Reference and administrative information Trustees, report Independent auditor's report Flnancial statements Statement of financial activities 12 Balance sheet 13 Statement of cash flows 14 Principal accounting polrcies Notes to the financial 5ts1&menls 16 19 City and Guilds Art School Property Trust
Reference and administrative irrformation Trustees John Taylor MBE Ichalrmanl Humphfey Carey Aidan Crawshaw Heather Hilburn Brendan Finucane KC Timolhy Schroder Sir Alan Yarrow Sacretary Nkholas Rampley Rag18tored offlce City and Guilds of London Art &ho 124 Kenninglon Park Road London SE11 4DJ T•laphon• 020 7626 3531 Principal offic• 124 Kennington Park Road London SE114DJ Telophono FSIMIl0 020 7735 2306 020 7582 5361 Audilor Buzzacotl LLP 130 Wood Street London EC2V 6DL Bankers Balay$ Bank plc Soulhwark Branch 29 Borough High stet London SE1 1LY Company registration number 00992490 (England and Wales) Charity registration number 312871 City and Guilds Art School Property Trust 1
Trustees, report Year lo 31 August 2023 The Board of Twstees I'the Board") of City ar)d Guilds Art Schix)I Property Trust I'the Charity") presents its annual report and the audited financial statements for the year ended 31 August 2023. The report has been prepared In accordance wlth Part 8 of the Charllies Act 2011 and Is also the report ol 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 and Reporting by Charities.. Statement of Recommended Practice appluble lo charities preparing their aGcounls in accordance wilh the Financial Reporting Standard applicable in the United Kirodom and Republic of Ireland IFRS 1021. Constltutlon The Charity is registered as a company and has the slalus of a company limited by guarantee, not having a share capital. Its goveming 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 activities The principal aim of the Charity, which was founded in 1879, is lo support the leaching and training of students in the arts, crafts and sciences of the Fine Arts. This activity is consistent with the objects contaifjed within the Memorandum of Associalron of the Charity. On 31 March 2012. the educational activities of the City and Guilds of London Art School Ltd I"Ihe Art School'l were transferred lo CGLAS TTUSt {Comp2ny No.. 078175191 under a business transfer agreement. CGLAS subsequently changed ils name lo the City and Guilds of London Art School Limited and is conlinuing the educational activities of the Art School. The Charity changed its rbame on 17 AFxiI 2012 from the City and Guilds of London Arl School to the City and Guilds Art School Property Trust. The objects of the Charity have not changed. The Art School's Sand and buildings al 114- 124 Kenninglon Park Road were retained by the Charity whose principal activity today is lo maintain and develop these properties for the ongoing benefrf( of the Art School, in aecoréance with a phased maslerplan established in 2008109. This also indudes the renting of additional property, such as the Old Vauxhall Telephone Exchange Building in adjacent Kennings Way, as required lo deliver the maslerplan and to support the Art School's development in other ways. GovprnanGg. slruGture and management Organisdtion The Trustees are directors of the Charity for the purposes of the Cornpanies Act 2006 and are Trustees of the Charity for the purposes of Charity legislation. The Board is the policy-making txxly of the Charity. 11 is assisted by the Secretary, is appointed by the Board. City and Guilds Art School Property Trust 2
Trustees, report Year lo 31 August 2023 Govemance. structure and managomont Icontinued} Oryanlsation (Continued) AémlnislralNe, fundraising and other tasks are perfofmed by staff employed by the City and Guilds of London Art School. An annual management charge is levied by the Art School In consideralion of this. Ri$k management The Trustees have assessed the major risks lo which the Charity is exposed. In particular, these relate lo the Charity's finances, buildings and health and safety matters. All areas of risk are Monitced through the Charity's govemance structure which identifies the lines of respon5ibilty and decision making administrative and financial. and in particular those relating to the planning and exe¢ulion of major building refurbishment projects. The Trustees ensure that the Charity'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 to Public Liability Insurance cover up lo £10m and Director's Liability of cover of up lo £2m. The Charity's buildings are insured at Ihelr full re-build value. The Board Is satisfied that 5yslems are in place to miligale, or control wh8r8 p0s9ible, the Charity's exposure to these risks. Key management Pgrsonnel The key management personnel of the Charity are the Trustees and the Company Secretary. The Trustees do not receive remuneration from the Charity. The Company Secretary is an employee of the Cty and Guilds of London Art School and his seNices form part of the tasks for which the Art School levies a management charge as mentsoned above. Statoment of Trustees. responsibilities The Trustees (who are also directors of the Property Trust for the purposes of company lawl are responsible for preparing the Trustees, report and financial statements in accordance with applicable law and United Kingdom Accounting Standards {Uniled Kingdom Generally Accepted Accounting Practice}. Company law requires the Trustees to prepare financial statements for eaeh financial year which give a true and fair view of the slate of affairs of the charitable company and of the income and expenditure of the charitable company for that perh)d. In preparing these financial stalemenls, the Trustees are required lo: select suitsble accounting policies and then apply them consistently., + observe the methods and principles in Accounting and Reporting by Charllles.. Statement of Recommended Practice appllcable to charities pr&paring their accounts in acGordan¢e wlth the Flnancial Reporting Standard applicable in the UK and Republic of Ireland (FRS 1021., make judgements and estimates that are reasonable ar)d prudent,. City and Guilds Art Schcx)I Property Trust 3
Trustees. report Year lo 31 August 2023 GovernanG¢, structur• and managemont (conlinuedl Statemont of frust•es' rospon&bilitles (continued) stale whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures di%losed and explained in the financial stslements,. and • prepare the financial slalemenls on the going concern basis unless il is inappropriale to presume that th8 charilable company will continue in operation. The Trustees are responsible for keeplng proper accounting records that disclose wilh reasonable attcuracy at any lime the financial position of the charitable company and enable them to ensure that the financ1 slalements 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 other irregularities. Each of the Trustees confirms that.. so fai as the Trustee is aware, the is no relevant audit infomialion ofwhich the Charity's auditors are unaware,. and • the Trustee has taken all the steps that he or she ought to have taken as a Trustee in order lo make themselves aware of any relevant audit information and to e$tablish that the Chanly's audrtors are aware of that information. This confirmation is given and should be interweled 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 Ihis report are listed on page 1. No Trustee received any iemuneralion for services as a member of the Board (2022- none) and no Trusl8e was reimbursed lor Iravelling expenses (2022- non8). Objectlvos and relevant pollcies The Charity s objectives are set to fefleel its educational aims and ethos. In setting these, the Trustees have given due consideration to the Charty Commission's general guidance on public benefit. The Charity's key objectives for the year included.. + Maintaining th8 Charity's propety in good order for the benefit of the Arl School, through a programme of annual maintenance and repair work., Extending Planning Permission and Listed Bulldlng Consent for the approved scheme lo renovate and partially redevelop Victorian studio bulldings al the rear of 118-124 Kenninglon Park Road., • To continue lo support the Art School in ils work in any oth8r ways appropriate. in line with the Charrty's staleé objects. City and Guilds Art School Property Trust 4
Trustsos. report Year 10 31 August 2023 Grant-glvlng policy The Property Trust does not actively soli¢il grant applications, however from time to lime may award grants to inslitulions. In previous years the Property Trust has made grants lo the City and Guilds of London Art School, in order to further the Trust's objective to support the Art School. The grant amounts are discussed and approved by the Board of Trustegs. Actlvltles Development project and other refurblshment5 No major development work look place during the year, as the Art School consolidales its position and puls 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 consent for the 'Phase 3, devdopmenl project for whith consents had previously been granted, and in negolialion of the lease renewal for the floors of the Vauxhall Telephone Exchange building which the Trust rents from British Telecom. Aside from that the main Tefurbishmenl work the Trust supported was the exlemal redecoration and renovation of part ofthe Georgian terrace's main frontage. Flnanclal Review Results for the year The Charity's funds structure is made up of tsvo unrestri¢led funds, the g&n&ral fund and the designated red asset fund, as well 05 restricted funds that are held for specific purposes. In order to separate Ihe impact of the property development wthin the financial slatemenls. the Charity established a designated fijnd to represenl the value of ils tangible fixed assets. When the Charity incurs expenditure on tangible fixed assets, which is capitalised, the amounls are transferred from other revenue funds to the designated fund. The reslricled funds of the Charity relate lo funds received for the development of the properties. These funds are either expended during the year on the properties or transferred to the de$ign8led fixed asset fund when costs are incurred for work on the properties which is capitslised. The Charity recorded an operating surplus on unrestricted funds before transfers of £4,48312022 - £1,431 }. Due to the t8mporary suspension of significant development activity pending review of the acwmmodation and facilities needed lo meet the Art School's longer-lerm requirements, the Charity raised £nil of r8slricled donations during the year {2022 - £nil). The Charity expended £6,36012022 £nill in relation to the development of its buildings during the year. The Charlly capitalised a tolal of £6.360 of fixed assel add(Lions12022- £nill. City and Guilds Art School Property Trust 5
Trustees, report Year to 31 August 2023 Flnancial Review (continued) Reserves pollcy and going con¢ern The Board has examined the requirement for free reserves i.e. those funds not invest&l in tangible fixed assets. not designated for specrfic purposes, not reslricted and not otherwise committed. Al 31 August 2023 the Charity held negative free reserves of £21,872. The Charity secured a loan facility lof £150.000) in 2019120 to assist with working capital needs during a period of reduced development and related fundraising activity. Thi8 loan is fully drawn down and is due lo be repaid in April 2024. The Board has carefvlly reviewed the Charity's cash flow position. 11 considers that, given ils limited plans for the immediate future and the ending of ils interest commitments and repayments in regard lo the above loan, careful cash-flow management especially in respect of ils obligations to and amounts due from the Art School, will. nO11hSnd1rv the current free reserves deficit position, provide the Charity with sufficient working capital lo meet ils liabilities oul of ils core rental income as they fall due. However, it also recognises that should its liquidity needs require it, the Charity's assets would provide adequate se¢urity lo obtain a further loan. The Trustees have concluded that there are no material uncertainties related lo ever)Is or conditions that may cast signrficant doubt on the ability of the Charity lo continue as a going concern. Flnancial poslflon The balance sheet shows total funds of £1,484,631 (2022 - £1.559,9711 of which £nil12022 £nill is reslricled. Restricted funds either raised for, and their use reslricled to, spe¢ific purposes or comprising donations subject lo donor imposed conditions, have been used in accord8nce with these r8striclions. Unreslricled funds of the Charity al 31 August 2023 total £1,484,631 (2022 - £1.559,971). These funds are represented by tangible fixed assets of £1.506,50312022- £1,579,966) and a free reserves deficit of £21,87212022- £19,995). Future plans The Trust has pul or) pause signifan1 development activity pending review of the accommodation and facilities needed to meet the Art School's longer-term requirements. A first slep in that review will be to undertake a feasibility study to detemiine the polelllial Capacity for development of the Kenninglon Park Road site. In the meantirne, the Property Trust will continue to work with the Art School on progre55ing specrfic improvements lo buildings and facilities on the sile la renovation of the frontage of the part of the Georgian terrace was un(Jertaken early in 2022-23, for example). as limited resources will allow. Th¢ Charity's assets Acquisitions and disposals of red as5els during the year are recorded in the notes to the financial stalemenls. Approved by the Board on I'l m qr<L ? o 'a ' and signed on ils behalf by.. John Tayl MBE (Chairman) City and Guilds Art School Property Trust 6
Independent auditor'$ report Year to 31 August 2023 Indgpgndont audftor'8 report to the members of City and Gullds Art School Property Trust Oplnlon We have audited the financial statements of City and Guilds Art Schod Property Trust Ilhe 'charilable company'} for the year ended 31 August 2023 which comprise the slalemenl of finan¢ial activities. the balance sheet, the slatement of cash flows, the principal accounting policies and the notes to the financial statements. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdgm Accounting Stsndards. including Financial Reporting Standard 102 'The FinarKial Reporting Standard applicable in the UK and Republic of Ireland, (United Kingdom G8nerally Accepted A¢counting Pra¢lice). In our opinion, the financial statements.. give a true and fair view of the state of the charitable company's affairs as al 31 August 2023 and of its income and expenditure for the year then ended", • have been properly ppared in accordance with United Kingdom Generally AcGepled Accounllng Practice,. and have been prepared in accordance with the requirements of the Companies Act 2006. Basls for opinion We conducted our audit in accordance with International Standards on Auditing IUKI IISAS IUKII and applicable law. Our responsibilities uThYer those standards are further des¢ribeé in the auditorfs responsibilities for the audit of the financial slalemenls section of our report. We are independent of the charitable company in COrdanCe wilh 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 elhi¢al responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriole lo provide a basis for our opinion. Concluslons relaling to going concem In auditing the financial statement5, we have concluded that the Trustees. use of the going concern basis of accounting in the preparation of the financial slalemenls is approprlate. Based on the work we have perfomied, we have nol identified any material uncertainties relating lo events or conditions that, individually or collectivdy, may cast significant doubt on the charrtable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibiliti6s and the responsibilities of the trustees wrth respect lo going ¢oncem are described in the relevant sections of this report. City and Guilds Art School Property Trusl 7
Independent auditor's report Year to 31 August 2023 Other infomiation The trustees are responsible for the other information. The other information comprises Ihg infomialion included in the annual report. other than the financial statements and our auditorfs report thereon. Our opinion on the financial 8tatemenls does not cover the other information and. except to the exlenl otherwise explicitly slated in our report, we do not express any form of assurance conclusion thereon. In conllection with our audit of the finan¢ial slalements. our responsibility is to read the olhor information and, in doing so. consider whether the other information is materially inconsistent with the financial slalemenls or our knOedge obtained in the audit or otherwise appears lo be materially misslaled. If we idenlfy such material inconsistencies or apparent material misslalemenls, we are required lo determine whether there is a material misstslemenl in the financial slalemenls or a material misslaternenl of the other informalk)n. If, base(1 on the work we have performed, we condude thallhere is a material misstatement of Ihls other information, we are required lo report that fact. We have nothing lo report In this regard. Oplnlons on other matters proscrlbed by the Companies Act 2006 In our opinion, based on ihe work undertaken in the course of the audit., • the information given in the trustees, report for the financial year for which the financial Statements are prepared is ¢onsislenl with the financial statements-, and • the trustees, report has been prepared in accordan with applicable legal requirements. Matters on which we arè required to report by exceptlon In the light of the krKledge and understanding of the charitable company and ils environment obtained in the course of the audit, we have not idenlrfied material misstalemenls in the trustees, report. We have nothing to report in respect of the following m2tters in relation lo which the Companies Act 2006 requires us lo report to you if, in our opinion". adequate accounling records have not been kept, or returns adequate for our audit have not been received from branGhes not visited by us., or + the financial statements are not in agreement with the accounb'ng records and turn$-, or certain disclosures of trustee5' remuneration specified by law are not made., or we have not received all the information and explanations we require for our aLtdil,' or • the Iruslees were not entitled lo prepare the financial statements in accordance with the small companies regime and take advantage of the small companies, exemptions in preparing the trustees, report and from the requirement to prepare a strategic report. City and Guilds Art School Propety Trust 8
Independent auditor's report Year lo 31 August 2023 Respon8ibilille8 of trustgès As explained more fully in the trustees, responsibilities statement, Ihe Iru51ees are responsible for the preparation of the financial statements and for being s?tisf that they give a true and fair view. and for such internal control as the trustees determine is necessary lo enable the preparation of financial stalernenls that are free from material misstatement. whether due lo fraud or error. In preparing the financial statements, the trustees are responsible for assessing the Gharilable company's ability to eonlinue as a going concern. discbsing, as applicable, matters related lo going concern and using the going concern basi8 of accounting unless the Iruslees either intend lo liquidale the charitable company or to 8$e operations. or have no realistic allernalive bul to do 50. Audltor's rosponsibililies for the audlt of the financial ststements Our objeGlives a lo obtain reasonable assurance about whether the financial statements as a whole are free from malerial misstatement. whether due to fraud or error. and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, bul is not a guarantee that an audit conducted in accordance with ISAS (UK) will always delecl a material misslalement when il exists. Misstalemenls can are from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expe¢led lo innuence the economic decisiorts of users taken on Ihe basis of these fjnancial statements. Irregularities, including fraud. are instances of non-compliance with laws and regulations. We deSn procedures in line with our responsibilities, outlined above. lo detect material misstatements in respect of irregularities, including fraud. The exlenl lo which our procedures are capable of detecting irregularities, including fraud is detailed below. Our approach to Klentrfying and assessing the risks of material misslatemenl in respect of irregularities. including fraud and rn-COMplianCe with laws and regulations, wa5 as follows.. the engagement partner ensured Ihal the engagement 18am collectively had the appropriate competence. capabilities and skills to identify or recognise non-compliance with applicable laws and gUlatiOnS.. we obtained an understanding of the legal and regulatory frameworks that are applicable lo the charitable company and determined that the most signrficanl frameworks which are directly relevant to specific assertions in the financial slalemenls are those that relate lo the reporting framework Islalement of Recommended Practice.. Accounting and Reporting by Charities pparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of IrelaThY IFRS 1021 and the Charities Act 20111, Companies Act 2006 and those that relale lo dats protection (General Data Protection RegulatioTJ}.' and Idenlrfied laws and regulalions were communicated within the audit team regularly and the team remained alert lo instances of non•compliance throughout the audit. City and Guilds Art Schcx)I Propety Trust
Independent auditor's report Year lo 31 August 2023 Audito¥ responsibilities for th• audit of tho financlal statefflonts Icontinuedl We assessed the su$ptIbl1itY of the charitable company's financial statements to material misstatement, including obtaining an understanding of how fraud might 0Ur. by.. making enquiries of manement as to their knowledge of actual. suspected and alleged fraud,. and considering the internal controls in place lo miligale risks of fraud and non-complian¢e with laws and regulation5. To address the risk of fraud through management bias and override of controls, we.. perform8d analytical procedures to identify any unusual or unexpected relationships., reviewed joumal entries to idenlrfy unusual transactions.. assessed whether judgements and assumptions made in determining the accounting estimates Wa indicative of potential bias., used data analytics to invgsligate the rationale behind any signrficanl or unusual transactions,. tested authori5alion controls on expenditure items, ensuring all expenditure was approved in line with the chantable company's financial pro¢edures,' and performed substantive testing over income lo gain assurare that the income recognise was materialty complete. In response lo the risk of irregularities and non4ompliance with laws and wulalions, we designed procedures which induded. but were not limited lo: agreeing financial statement disclosures to underlying supporting documenlalion,. reading the minutes of meetings of those charged with governance,. and enquiring of management as lo actLJal and potential liligalion and claims. There are inherent limilalions in our audit procedures described above. The more removed that laws and regulations are from financial Iransaclions. the less likely il is that we would become aware of non-complk9nce. Auditing standards also limit the audit pr¢)cedures uIre lo identify non<ompliance with laws and regulations lo enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due lo fraud can be harder lo delect than those Ihal arise from error as they may involve deliberate ¢oncealment or collusion. A further description of our responsibilities for the audit of the financial stslemenls is located on the Financial Reporting Council's website at www.frc.org.uklauditor$responsibililies. This description forms part of our auditor's report. City and Guilds Art School Propety Trust 10
Independent auditovs report Year to 31 August 2023 Use of our report This report is made solely to 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 b@en undertaken so that we might stsle to the charitable company's members those mallers we are required lo slate lo them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone oiher than the charitsble company and the charitable companys members as a body, for our audit wrxk, for this report. or for the opinions we have formed. I.ZZo Hugh Swainson. Senior Ststutory Auditor For and on behalf of Buzza¢ott LLP 130 Wood Street London EC2V 6DL 26 March 2024 City and Guilds Ari School Property Trust 11
Statement of financial activitios Year to 31 August 2023 UnresknGted funds 2023 T¢>tsi nds 2022 Total funds General Desiwaled Restnd fund fijnds funds Nolas IncomA from.. Donalons Charitable actiwtie8 . Rent reVab Totsl Income 15 303.744 303,744 303,744 303,744 246.020 246.020 Expenditure on: Charltablé g¢titIeS . Costs of operatsng the aTrty . Premls8S . Support cos15 Totsl oxp¢ndltur• 206,037 93.224 299.261 79.823 285.BeQ 93.224 379,084 218.269 109.107 327.376 79,823 Net Incorne lexpondltvr•l 4,483 179,8231 75.3401 181.3561 Transfèrs b¢lw¢n funds 10 16.3601 6,3eK) Nèt mfftrnent in lunds 11.8771 173,4631 5.3401 181.3561 Fund balancès bm9ht lorward at 1 September 2022 119.9951 1,579,986 1,559.971 1,641.327 Fund balancès rarrled fcward at 31 August 2023 121.8721 1,506,503 1,484631 1,559.971 All of the Charity's activities derived from continuing operations during the above financial years. The Charity has no re¢ogniseiJ gains and losses other than those shown above. A Gomparative statement for the previous year is included in note 16. City and Guilds Art School Property Trust 12
Balance Shoot 31 Augusl 2023 2023 2023 2022 2022 Nolgs Fix•d assets Tangible assgts 1,506,503 1.579.966 Current 888¢ts Debtors Cash at bank arKI in harKI 66,877 40,727 107,604 107.848 157,694 Crgdiiors: amounts falling ¢Jue within one year 7 I179,$66 {92,1231 Nèl current Iliabilrtiesl asgets 121,872) 15.481 Total assets l•ss current 1084,631 1,595,447 Credlt4ys: falliThJ thje after more Ihan one year Total nèt 088ots 135.4761 1.559,971 1.484.631 Tho lunds of tho charfty: Incorne funds.. . Restrlcted fijnds Unreslrited fund$'. . Gener81 fund . Designated funds 10 (21,8721 1,506,503 1.484,631 {19,9951 1,579,966 1,559.971 Approved by the Board on l & mar,L. 90,4 and slgned on ils behaff by- John Taylor MBE (Chairman) City and Guilds Art School Pro Trust.. A company limited by guarantee. Company Registration No. 00992490 (England and Wales) City and Guilds Art Schthjl Property Tnjst 13
Statemont of cash flows 31 August 2023 Yoor to 31 August 2023 Yeartr) 31 August 2022 Notes N•t c8$h flows provld•d by (used In} operatlng actfviti¥$ 123.674 127,4661 Not Gash flthvs lus•d Inl Investlng activitiès 16,3601 Net cash flthvs (used inl financing a¢tlvltl•s {50.1931 135,4761 Ch•ng8 In cash and cash oqulval•nt• in th¢ y•ar 67.121 162.942 Cash And cash equivalents at the beginning of the year Cash and cash oqulvalonts at the end of the year 40,727 107.848 103,669 40,727 Notes to the Cash flow statement for the year to 31 August 2023 A R•conclllatlon of net incorno to net cash provlded by {used inl op•ratlng actlvFtles 2023 2022 Net {expenditurel Deprecialion chargg Decrease in debtors Increase Idecreasel in creditors Not cash provlded by Iusgd In} opèrating actlvlil•8 175,3401 79,823 17,031 102,160 123.674 181,3561 79,925 11,022 137,0571 127,4861 B Cash flows from investing activitles: 2023 2022 Purchase of tangible fixed assets Net cash (used Inl Investing a¢tlvltl•$ 6,360 6,360 C Cash flows from financing actlvltles: 2023 2022 Repayments of borrowing Net cash {used Inl financlng 4¢tiviti•$ 50.1931 150,1931 135,4761 135,4761 D Analysls of cash and ¢a8h èqulvalents 31 August 2023 31 August 2022 Cash at bank and in h8nil 107,848 40,727 City and Guilds Art School Property Trust 14
Statement of cash flows 31 Augusl 2023 E Analysis of ¢hang¢$ in n•t debl At1 September 2022 At31 August 2023 Cash ows Cash at bank and in hand Loan payments falling due wthln one year Loan paymenls falling due after more than one year Total 40,727 150.4211 135,476 45,170 67,121 14,718 35.476 117.315 107,848 135,703> 72,145 City and Guilds Art School Propety Trust 15
Principal accounting policios 31 August 2023 Basls of accounlTng The financial 51atemenls hav8 been wepared under the historical cost conventson wilh items inilially recognised at cost or transaction value unless olhefwise stated in the relevant accounting policy nole{s}- The financial statements have been prepared in accordance with Accounting and Reporting by Charities= Stalemenl of Recommended Practice applicable to charities preparing their accounts in accordance wilh the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 I'charilies FRS 102 SORP'I, the Financial Reporting Standard applicable in the UK Republic of Ireland IFRS 1021 and the Companies Act 2006. The charity constitutes a public benefit entity as defi'ned by FRS 102. The accounts are kyesenled in sterling and are rounded lo the nea$1 pound. Critical accounting estimates and areas of Judgement Preparation of the accounts requires the Trustees and management to make significarbt judgements and estimates. The items in the accounts where these judgements and estimates have been maée include- • the useful economic lives attributed to tangible fixed assets used to determine the annual depreciation charge., and eslimat8s in respect lo accrued expenditure. Going Concern The Trustees have assessed whether th8 use of the going concern assumption is appropriate in preparing these financial statements. The Trustees have made Ihls assessment in respect to a period of one year from the date of approval of these financial statements. The Board has examineé the requirement for free reserves i.e. those funds nol invested in tangible fixed assets, not d8signated for specific purpose5, not restricted and not otherwise commilled. Al 31 August 2023 the Charity held negative free reserves of £21,872. The Charity secured a loan facility {of £150,000} in 2019120 to assist with working capital needs during a period of reduced development and related fundraising actwity. This loan is fully drawn down and is due lo be repaid in April 2024. City and Guilds Art School Property Trust 16
Principal accounting policies 31 August 2023 Golng Concgm {¢onlinued} The Board has carefully reviewed the Charity's cash Ilow posits'on. It ¢on$iders that, given its limited plans for the immediate future and the ending of its interest commitments and repayments in regard lo the above loan, careful cash-flow management especially in respect of its obligations to and amounts due from the Art School, will. nOlthStandIng the current fee reserves deficit position, provide the Charity wilh sufficient working capital to meet ils liabilities out of ils core renlal iru)me as they fall due. However, it also recognises that should ils liquidity needs require it, the Charity'5 assets would provide adequate security to obtain a further loan. The Trustees have concluded that Iher8 are no material uncertainties related lo events or conditions that rnay cast significant doubt on th8 ability of the Charity lo continue as a going concern. Incom• Income is recognised ir¢ the period in whlch the Charity Is entitled to its receipt and the amount can be measured vAth reasonable certainty. Fees receivable and charges for services and use of premises are accounted for In the period in which the service is provided. Expendlture Expenditure is included in the slalement of financial activlties when inrred. Expenditur8 comprises the eosts of charitable activities on the Charity's primary charitable purpose, i.e. the operalDn of Ihg Charity. The costs of operating the Charity include the costs of premises and governance costs. Grants payable are included in the stalemenl of financial activilwd when approved by the trustees and when the intended recipient has either received all the funds, or has been Informed of the decision to make the grants and has satisfied all relevant and due terms and ¢ondrtions. Tangible flxed assets Assets are included in these financial slalements al cost at the dale of acquisition together wrth the cost of additions and improvements to dale. Depreciation is provided al the following annual rates in order to wrÉle off each asset over its eslimated useful lrfe.. Freehold property 2% on cost,. * Freehold property improvements 4% on cost., Leasehold rffoperty The minimum lrfe of the lease. Debtors D8btors are recognised at the settlement amount, less any provis*)n for non•recoverability. Prepayments are valued al the amount prepaid. They have been discounted lo the present value of the future cash receipt where such discounting is materlal. City and Guilds Art SGhool Property Trust 17
Principal accounting polici93 31 August 2023 Cash at bank and in hand Cash al bank and in hand represents such accounts and instruments that are available on demand or have a maturity of less than three months from the dale of acquisition. Deposits for more Ihars three months but less than one year have been disclosed as short term deposits. Cash placed on deposlt for more than one year is disclosed as a fixed asset investment. Creditors and provlslons cditOrS and provisions are recognised when there is an obligation al the balance sheet dale as a result of a past event. it is probable Ihal a transfer of economic benefit will be required in selllement. and Ihe amount of the selllement can be eslimaled reliably. Creditors and provisions are recognised al the amount the charity anticipates it will pay to settle the debt. They have been discounted lo the present value of the future cash payment where such discounting is material. Financlal Instruments The Trust only holds basic financial instruments as defined in FRS 102. The financial ass8ts and financial liabilities of the Trust and their me?suremenl basis are as follows= Financial assets - trade arml other debtors are basic financial instruments and are debt inslrumenls measured al am(Kti5ed cost as detailed in note 6. Prepayments are not financial instruments. Cash al bank- is classrfied as a basic financial instrument and is measured al face value. Financial liabilities- 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 InstrL¢menls disdosure definition. Deferred income is not deemed to be a financial liability, as the cash selllemenl has already taken place and there is an obligation lo deliver services rather than Cash or another financial instrumenl. Fund aGcountlng The general fund comprise8 those monies which may be used towards meeting the charitable objectives of the Charity at the discretion of the Board. Within unreslricled funds. the designaled fund represents the net book value of the Charity's tangible fixed ass81s. The restricted funds are monies raised for, and their use reslricled to, a specific purpose. or donations subject lo conditions imposed by the donor. City and Guilds Art School Propety Trust 18
Notes to Ihe financial statements Year to 31 August 2023 1 Net expenditure This is slated aftw charging.. Genero1 Oesignaled nd nds Restn'cted funds T¢)tal 2023 Audilorfs remunerallon.. . Statutory audit seICeS Depreciation Operabnglgase rentals 4.450 4.450 79,823 145,620 79.823 145.620 Gen8ral D9s1gnat Restricled fuftiy funds funds Total 2022 Auditorfs remuner8tm' . ststul(Myaudi¢ services Deprecialio Operahng lease renlals 5.226 5,226 79,925 95,774 79,925 95,774 2 Support costs 2023 2022 Managernenl ¢harg8s from the Clty and Guilds of London Art School Insurance Legal and professional fe88 GovemBnce costs Intsr88t on loans and bank charges 57,261 16,154 10,425 fj2,778 16,138 19,533 5.22 5,432 109.107 4,934 93,224 3 Staff costs and Trustees, remuneration The average number of staff employed by the charity in the year was nil12022 - nill. The Charity's total staff costs in the year were therefore £nil {2022- £nil)- No Trustee receNed any remuneration or other emoluments in respect of their services as a member of the Board during the year12022 - none). No TTuslees were reimbursed for travelling expenses during the year12022- none}. The Charity has purchased insurance to prolecl itself from any loss arising from ihe neglect or defaults of ils Trustees, employees and agents and lo indemnify the Trustees or other ofFIGers against the consequences of any neglect or default on their part. The insurance premium provided cover of up lo a maximum of £2 million12022- £2 mllllon}. The aggregate remuneration of key management personnel was £nil12022 - £nlil. In the year ended 31 August 2023, key management personnel consisted of the Trustees and the Company Secretary who was an employe8 of the City and Guilds of London Art School. 4 Taxatlon City and Guilds Arl School Property TrLJSt is a registered Chafily and therefore is not liable to income tax or corporation tax on income derived from ils charitable activit, as it falls within Ihe various exeMpln$ available lo registered charities. City and Guilds Art School Propety Trust 19
Notes to the financial ststements Year lo 31 Augusl 2023 5 Tanglble fixed ass¢ts Freehold Frééhold land and property property improvements L@8sèhdd prop9rty TotAI Cost At 1 Septembef 2022 Additions 382.169 595.872 1,472.585 2,450.626 6,360 2.456,986 At 31 August 2023 382,169 595,872 1,478.945 Deprnciation At 1 Sèptèmber 2022 Chae for year At 31 AthJust 2023 361,069 11,496 372,S65 224,320 8,036 232,356 285,271 60.291 345,562 870,660 79,823 950,483 Net book v•lu•s At 31 AjuSt 2023 At 31 AuSt 2022 9,604 21.100 363,516 371,552 1.133,383 1,187.314 1,506,503 1,579,906 No formal valuation of Freehold land and property has been conducted dursng the year, but in the opinion of the Trustees, the market value of the freehold propety is well in excess of the figure shown above. 6 Debtors 2023 2022 Other debtors 49,846 49,846 66.877 66,877 7 Creditors: amounts fallSng due wlthln ono year 2023 2022 Trade Creditors Loan. SLKial s8¢Ulity and othgr taxes otr creditors Accruals and deferred incoff 5,746 50,421 9,756 35,703 10,302 57,404 76,157 179,566 26.200 92,123 Yhe loan balance above is in respeel of 8 bank borrowing facility wilh Charity Bank in respect of which the Charity has drawn down £150.000. 11 is belng paid back on a monthly basis along with interest al 4.25•A above the Bank of England base rale per annum, and will be fully repaid by April 2024. It is secured via a charge on the Charity's 114 and 116 Kennington Park Road properti'es. City and Guilds Arl School Property Trust 20
Notes to the financial ststements Year to 31 August 2023 7 Credltors.. amount$ falling due wlthln ong year (conlinu8dl Induded within creditofs ks the followin9 deferred income, analys as follows.. 2023 2022 At 1 Sèptember Deferred in the year Rel8a8ed in thg year At 31 August 21,049 71,157 121,0491 71,157 16,762 21,049 116,7621 21,049 8 Crèditors: amounts falllng after more than one yèar 2023 2022 Loan 35,476 9 Restricted funds The income funds include restricted funds comprising the followiTrJ donations and grants held on trusts to be applied for specrfic purposes: Bala at1 Seplemb¢f 2022 Balance at31 August 2023 CJonatkJns Expenditure TransfeTS Development Fund Balance B818n¢& at31 August 2022 September 2021 Dortallons Exponditure rransfers 08v81opm8llt Fund The Development Fund represents funds donated for the spectfic purpose of funding the Charity's Maslerplan developmenl. Expenditure on work which is capital in nature is transferred lo a designated fixed asset fund, as explained in note 10 below. Expenditure relating to professional fees for design and other planning work on current arKI future ma51erplan phases are expended. City and Guilds Art School Property Trust 21
Notss to the financial statements Yèar to 31 August 2023 10 Unrnstrlcted Funds Balance al i September 2022 Balance September 2023 Income Expendilure Transfers General Fund Dgsignatgd Fund I19,9) 1.579,966 1,559,971 303,744 1299,2611 179,8231 1379,0841 16,3601 6,360 121,8721 1,$08.503 1,484,631 303,744 Balance al I S&pton7bor 2021 Balance atl Sèplombor 2022 Income Exp8nditurt Trènsfers G8nerèlFund D8sNgnal8d Fund 118,5641 1,659,891 1,641.327 246,020 1247.4511 179,9251 1327,3761 119,9951 1,579.96 1,559,971 246,020 Designated fixed assets funds: In order lo 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 expendrture on tangible fixed assets, the amounts are transferred from other revenue funds lo the designated fund. A total of £6.360 12022 £nill was transferred to the designated fund dLJring the year representing capital addit5. No capital work was funded from the reslricled funds12022 none). The gerwal fund showed a deficit of £21.872 {2022- deficit of £19.995) al the end of the financial year. 11 Analysis of not a8s•ts between funds Gengral Designated fund funds Restricted funds Totsl 2023 Fund balancès at 31 August 2023 arg rgpre5ented by: Tangib fixed 88sets Curr&nl assats Creijllors: amounts falllng due within one year Credilors.. amount tslling due in more than one year Total nel assets 1.5C6,503 1,506,503 157,694 157,694 1179,5661 1179,5661 121.8721 1,506,503 1,484.631 City and Guilds Art SclK)ol Property Trust 22
Notes to thg financial statements Year lo 31 August 2023 11 Anal13 of net assets between funds {conlinued} General Designat8d lund funds Reslrioled funds Total 2022 Fund balances al 37 August 2022 a represented by.. Tary1b fixèd 8ssets Cuent assets Cr8dilors.' 8mountg IBlllng due trwtth'n one year Credilors.. amount falling tlu& in more (han on8 yèar Total net assefs 1.579,966 1.579,966 107,e04 lo7.4 192,1231 192,1231 35,476 119.9951 1,579,966 {35,476 1,559,971 12 Liability of members The Charity is consliluted as a company limited by guarantee. In the evenl of the Charity being wound up members are required lo contribute an amount not exceeding £1 each. 13 Leasing commltment8 Operating leases At 31 August 2023 the total of the Charity's future minlmum payments under non-cancellable operaling leases was, BuTrldlngs 2023 2022 Amounts duè within one year Amounts due between one and five yoars 145,200 582,900 7,981 The buildings operating lease relates lo the sub-lease of premises in the Old Vauxhall Telephone Exchange in Kennings Way for the period up lo the first break clause. The previous lease expired in late September 2022 and Heads of Terms for a new lease from the dale of that expiry were agreed at an Irreased rental which ha5 been duly accounted for in 2022123. 14 Capital commitments As al 31 Augu$l 2023. Ihe Charity had capital commitments of £nil12022- £nil). 15 Related party transactions Administrative, fundraising and other tasks are perfomied by staff employed by the City and Guilds of London Art School. An annual management charge is levied by the Art School in cortsideralion of this. The Clly and Guilds of London Art School is therefore considered a related party. The Art School charged the Charity a management fee for services provided of £57,261 (2022- £62,778), which was outstanding at the year end. The Trust recognised rental income from the Art School of £303,744 plus VAT in rent during the year12022 £246,020 plus VAT), of which £49.846 was oulslanding al the year end. City and Gullds Art School Property Trusl 23
Notes to the financial statements Year lo 31 August 2023 16 Comparative statern•nt of flnancial activities Unfftslrictedfvnds 2022 Totsl funds Gerjrt D8si9n81ed RestrAcÈe fund funds funds Notes InGOm• from.. Donalthis ChaTrl8ble . Rentreceitryble Total 15 24&020 244020 246.020 246,020 Ed1M oft". Charitèbl8 aCtwlOÈs . Cosls olopersting Ihg Charfty 138,344 109, 107 247,451 79,925 218,269 109,107 327,376 .. Support C0515 Total•xp•hdtsw• 79,925 Nel Income {exp•ndit4we) {1,431J (79,925) (41,356) 9,10 N•tmov•mentin lumls (1,431) 179,9251 1,356) Fundb818nces brwhtlgrnard al I50ptnhor 2021 (18,564) 1,659,891 1.641.327 Fundbalanc•s cwrlodforw•rd at 31 Aygtsst2022 (19,995) 1,579,966 1.55P,9TI City and Guilds Art School Prop8rty Trust 24