City and Guilds Art School Property Trust Annual Report and Financial statements 31 August 2024 Company Limited by Guarantee Registration Number 992490 (England and Wales} Charity Repislralion Number 312871
Contents R•ports Reference and administrative information Trustees, report Independent auditor's report Financial statements Statement of financial activities 12 Balance sheet Statement of cash flows 14 Principal accounting policies 16 Notes to the financial statements 19 City and Guilds Art School Property Trust
Reference and administrative information Trustees John Taylor MBE (Chairman) Robin Broadhurst CVO CBE (appointed 27th November 2024) Humphrey Carey Aidan Crawshaw (resigned 121h March 2025) Heather Hilbum Brendan Finucane KC Timothy Schroder Sir Alan Yarrow Secretary Nicholas Rampley Registered office City and Guilds of London Art School 124 Kennington Park Road London SE114DJ Telephone 020 7626 3531 Prlncipal office 124 Kennington Park Road London SE114DJ Telephone Facsimlle 020 7735 2306 020 7582 5361 Audltor Buzzacott LLP 130 Wood Slreet London EC2V 6DL Bankèrs Barclays Bank plc Southwark Branch 29 Borough High Street London SE1 1LY Company registration number 992490 (England and Wales} Charity registratlon number 312871 City and Guilds Art School Property Trust I
Trustees, report Year to 31 August 2024 The Board of Trustees ("the Board") of City and Guilds Art School Property Trust ("the Charity.) presents its annual report and the audited financial statements for the year ended 31 August 2024. 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 set out therein and comply with applicable law and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102). Constitution 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 its Memorandum and Arlicles of Association dated 30 September 1970 and amended to allow for current governance arrangements on 7 March 2006. Principal alms and artivities The principal aim of the Charily. which was founded in 1879. is to support the teaching and training of students in the arts, crafts and sciences of the Fine Arts. This activity is consistent with the objects contained within the Memorandum of Association of the Charity. On 31 March 2012, the educational activities of the City and Guilds of London Art School Ltd ('the Art School") were transferred lo CGLAS Trust (Company No. 07817519) under a business transfer agreement. CGLAS subsequently changed ils name to the City and Guilds of London Art School Limited and is continuing the education81 activities of the Art School. The Charity changed its name on 17 April 2012 from the City and Guilds of London Art School to the City and Guilds Art School Property Trust. The objects of the Charity have not changed. The Art School's land and buildings at 114- 124 Kennington 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 to deliver the masterplan and to support the Art School's development in other ways. Governance, structure and management Organisation The Trustees are directors of the Charity for the purposes of the Companies Act 2006 and are Trustees of the Charity for the purposes of Charity legislation. The Board is the policy-making body of the Charity. It is assisted by the Secretary, who is appointed by the Board. City and Guilds Art School Property Trust 2
Trustees, report Year to 31 August 2024 Governance, structure and management (continued) Organisatlon (continued) Administrative, fundraising and other tasks are performed by staff employed by the City and Guilds of London Art School. An annual management charge is levied by the Art School in consideration of this. Rlsk management The Trustees have assessed the major risks to which the Charity is exposed. In particular, these relate to the Charity's f5nances, buildings and health and safety matters. All areas of risk are monitored through the Charity's governance structure which identifies the lines of responsibility and decision making administrative and financial, and in particular those relating to the planning and execution 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 to £10m and Directorfs Liability ofcover of up to £2m. The Charity's buildings are insured at their full re-build value. The Board is satisfied that systems are in place to mitigate. or control where possible, the Charity's exposure to these risks. Key management personnel 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 City and Guilds of London Art School and his services form part of the tasks for which the Art School levies a management charge as mentioned above. Statement of Trustees, responsibllltlos The Trustees (who are also directors of the Property Trust for the purposes of company law) are responsible for preparing the Trustees, report and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the income and expenditure of the charitable company for that period. In preparing these financial statements, the Trustees are required to= select Sultable accounting policies and then apply them consistently., observe the methods and principles in Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charities preparing their accounts in accordance with Ihe Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS make judgements and estimates that are reasonable and prudent. City and Guilds Art School Property Trust 3
Trustees, report Year to 31 August 2024 Governance, structure and management (continued) Statement of Trustees, responsibilities (continued) state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements., and • prepare Ihe financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation. The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Charitable company and hence for taking reasonable sleps for the prevention and detection of fraud and other irregularities. Each of the Trustees confirms that: so far as the Trustee is aware, there is no relevant audit information ofwhich the Charity's auditors are unaware., and + the Trustee has laken all the steps that he or she ought lo have taken as a Trustee in order to make themselves aware of any relevant audit information and to 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 date of this report are listed on page 1. No Trustee received any remuneration for services as a member of Ihe Board (2023- none) and no Trustee was reimbursed for travelling expenses (2023 - none). Objectives and relevant policies The Charity's objectives are sel to reflect its educational aims and ethos. In setting these, the Trustees have given due consideration to the Charity Commission's general guidance on public benefil. The Charity's key objectives for the year included= • Maintaining the Charity's propety 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 to renovate and partially redevelop Victorian studio buildings al the rear of 118-124 Kennington Park Road,. • To continue to support the Art School in its work in any other ways appropriate, in line with the Charity's staled objects. City and Guilds Art School Property Trust 4
Trustees, report Year to 31 August 2024 Grant-giving policy The Property Trust does not actively solicit grant applications, however from time to time may award grants to institutions. In previous years the Property Trust has made grants to 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 Trustees. Activities Development project and other refurbishments No major development work took place during the year. as the Art School consolidates its position and implements its 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 long-term developments and to that end the Trust has continued to pursue the renewal of planning consent for the 'Phase 3, development project for which consents had previously been granted. and finalising of the terms of the lease renewal for the two ffloors of the Vauxhall Telephone Exchange building which the Trust rents from British Telecom. It also commissioned a feasibility report from Purcell architects to determine the potential capacity for development of the Kennington Park Road sile and thereby inform the possible options to meet the Art School's future accommodation needs. Financial Ravlew Results for the year The Charity's funds structure is made up of 0 unrestricted funds, the general fund and the designated fixed asset fund, as well as restricted funds that are held for specific purposes. In order to separate the impact of the property development within the financial statements, the Charity established a designated fund to represent the value of its tangiblefixed assets. When the Charity incurs expenditure on langible fixed assets, which is capitalised, the amounts are transferred from other revenue funds to the designated fund. The restricted funds of the Charity relate to funds received for the development of the properties. These funds are either expended during the year on the properties or transferred to the designated fixed asset fund when costs are incurred for work on Ihe properties which is capitalised. The Charity recorded an operating surplus on unrestricted funds before transfers of £33,538 (2023- £4.483). Due to the temporary suspension of significant development activity pending review of the accommodation and facilities needed to meet the Art School's longer-term requirements, the Charity raised £nil of restricled donations during the year (2023 - £nil). The Charity expended £nil (2023- £nil) in relation to the development of its buildings during the year. The Charity capitalised a total of £51,290 of fixed asset additions (2023 - £6,360) representing chiefly new roofing and health and safety related items. City and Guilds Art School Property Trust
Trustees. report Year to 31 August 2024 Financial Review (Continued) Reserves policy and going ¢on¢em 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 restricted and not othemise committed. At 31 August 2024 the Charity held negative free reserves of £39,624. 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 activity. This loan is fully drawn down and was repaid in April 2024. The Board has carefully reviewed the Charity's cash flow position. It considers that. given its limited plans for the immediate future and the ending of its interest commitments and repayments in regard to the above loan, careful cash-flow management especially in respect of its obligations to and amounts due from the Art School, will, notwithstanding the current free reserves deficit position, provide the Charity with sufficient working capital to meet its liabililies out of its core rental income as they fall due. However, il also recognises that should its liquidity needs require it, the Charity's assets would provide adequate security to obtain a further loan. The Trustees have concluded that there are no material uncertainties related to events or conditions that may cast signrficant doubt on the ability of the Charity to continue as a going concern. Financlal posltlon The balance sheet shows total funds of £1,440,042 (2023 - £1,484,631) of which £nil (2023 £nil) is restricted. Restricted funds either raised for, and their use restricted to, specrfic purposes or comprising donations subject to donor imposed conditions, have been used in accordance with these restrictions. Unrestricted funds of the Charity at 31 August 2024 total £1,440,042 (2023 £1,484.631)- These funds are represented by tangible fixed assets of £1,479,666 (2023- £1,506,503) and a free reserves deficit of £39.624 (2023- £21,872 deficit). Future plans The Trust has continued to pause significant development activity pending review of the accommodation and facilities needed to meet the Art School's longer-lerm needs and will be undertaking further evaluation of options for meeting the Art School's longer-term space requirements. In the meantime, the Property Trust will continue to work with the Art School on progressing specrfic improvements to buildings and facilities on the site (a priority being the ongoing cycle of repairs to roofing), as limited resources will allow. The Charity's assets Acquisitions and disposals of fixed assets during the year are recorded in the notes to the financial statements. Approved by the Board on Iz <nw7cL ?oLf and signed on its behalf by.. John Tayl r MBE (Chairman) City and Guilds Art School Property Trust 6
Independent auditor's report Year to 31 August 2024 Independent auditor's report to the members of Clty and Guilds Art School Property Trust Opinion We have audited the financial statements of City and Guilds Art School Property Trust (the 'charitable company,) for the year ended 31 August 2024 which comprise the statement of financial activities, the balance sheet, the stalement 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 lawand United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporling Standard applicable in the UK and Republic of Ireland, (United Kingdom Generally Accepted Accounting Practice}. In our opinion, the financial statements.. + give a true and fair view of the state of the charitable company's affairs as at 31 August 2024 and of its income and expenditure for the year then ended-, + have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice. and have been prepared in accordance with the requirements of the Companies Act 2006. Basis for opinion We conducted our audit in accordance with International Standards on Auditing (UK) (ISAS (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance 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 ethical responsibilities in accordance wilh these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclusions relating to going concern 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 stalemenls is appropriate. Based on the work we have performed, we have not identified any material uncertainties r81ating to events or conditions thal, individually or collectively, may cast significant doubt on the charitable 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 responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. City and Guilds Art School Property Trust 7
Independent auditor's report Year lo 31 August 2024 Other informatlon The trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditorfs report thereon. Our opinion on the financial statements does not cover the other informalion and, except lo the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears lo be materially misstated. If we identify such malerial inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on Ihe work we have performed, we concludethatthere is a material misstatement ofthis other information, we are required to report that fact. We have nothing to report in this regard. Opinions on other matters prescribed by the Companies Act 2006 In our opinion. based on the work undertaken in the course of the audit.. • the information given in the trustees, report for the fi'nancial year for which the financial statements are prepared is consistent with the financial statements,. and + the trustees, report has been prepared in accordance with applicable legal requirements. Matters on which we are required to report by exception In the light oflhe knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees, report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if. in our opinion.. adequate accounting records have not been kept, or returns adequate for our audit have nol been received from branches not visited by us,. or • the financial statements are not in agreemenl with Ihe 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 trustees were nol entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies, exemptions in preparin9 the trustees, report and from the requirement to prepare a strategic report. City and Guilds Art School Property Trust
Independent auditor's report Year to 31 August 2024 R¢sponsibllities of trustees As explained more fully in the trustees, responsibilities statement, the truslees 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 to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations. or have no realistic alternative but to do so. Audltor's responsibilities for the audit of th• financial statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material 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, but is not a guarantee that an audit conducted in accordance with ISAS (UK) will always detect a material misstatement when il exists. Misstatements can arise from fraud or error and are considered material rf, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line wilh our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities. including fraud is detailed below. Our approach to identifying and assessing the risks of malerial misstatement in respect of irregularities, induding 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 to identrfy or recognise non-compliance with applicable laws and regulations., we obtained an understanding of the legal and regulatory frameworks that are applicable to the charitable company and determined that the most significant frameworks which are directly relevant to specific assertions in the financial statements are those that relate to the reporting framework (Statement of Recommended Practi. Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011), Companies Act 2006 and those thal relate to data protection (General Data Protection Regulation),. and identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. City and Guilds Art School Property Trust 9
Independent auditor's report Year to 31 August 2024 Audltor's responsibilities for the audit of the financial statem8nts (continued) We assessed the susceplibility of the charitable company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by- making enquiries of management as to their knowledge of actual, suspected and alleged fraud,. and considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. To address the risk of fraud through management bias and override of controls, we: performed analytical procedures to identrfy any unusual or unexpected relationships., reviewed journal entries to identify unusual transactions., assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias.. tesled authorisation controls on expenditure items, ensuring all expenditure was approved in line with the charitable company's financial procedures,, and performed substantive testing over income to gain assurance that the income recognised was malerially complete. In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included. but were not limited lo: agreeing financial statement disclosures to 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 audil procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. AudiÉing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. Material misstatemenls that arise due to fraud can be harder to detect 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 slatements is located on the Financial Reporting Council's website at www.frc.org.uk]auditorsresponsibilities. This description forms part of OLJr auditorfs report. City and Guilds Art School Property Trust 10
Independent auditor's report Year to 31 August 2024 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 been undertaken so that we might state to the charitable company's members those matters we are required to state to 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 other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed. Hugh Swainson. Senior Statutory Auditor For and on behalf of Buzzacott LLP 130 Wood Street London EC2V 6DL City and Guilds Art School Property Trust 11
Statement of financial activitias (including income and expenditure account) Year to 31 August 2024 Unrestricigd fvnds 2024 Total funds 2023 Totsl funds General Designated Restricted fund lunds funds Notes Incoma from: Donations Charitable aetiviliès Rent receivable Totsl incom8 15 307.573 307.573 307.573 307.573 303.744 303.744 Expenditurè on: Charitsble acts'vili&s . Costs of operating the Charity Premlses . Support costs Total exp¢ndlture 159,343 114.692 274,035 78,127 237,470 114.692 352,162 285.860 93.224 379.084 78,127 Net income lp9ndItUr0I 33.538 178,1271 144,S89) {75.3401 Transfers between funds 10 151,2901 51,290 Net movement in funds 117.7521 126,837) (44.589) {75.3401 Fund balance5 brought fortyard at 1 September 2023 121.8721 1,506,503 1.484,631 1,559.971 Fund balances carried forward at 31 August 2024 139,6241 1.479,666 1,440,042 1,484.631 All of the Charity's activities derived from continuing operations during the above two financial years. The Charity has no recognised gains and losses other than those shown above. A comparative statement for the previous year is included in note 16. City and Guilds Art School Propety Trust 12
Balance Sheet 31 August 2024 2024 2024 2023 2023 Notes Fixed assets Tangible assets 1,479.666 1,506.503 Current assets Debtors Cash at bank and in hand 99,692 57,766 157,458 49,846 107,848 157,694 Creditors.. amounts falling due within one year 7 (197,082) 1179,566) Net current (liabilities) (39,624) {21,872) Total ass8ts less current liabllltles 1,440,042 1,484,631 Total net assels 1,440,042 1,484.631 The funds of the charity: Income fijnds: . Reslticted funds Unrestricted funds: . General fund . Designated funds (39,6241 1,479,666 1,440,042 121,872} 1,506,503 1,484,631 The financial statements have been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relaling to small companies and with the Financial Reporting Standard 102. Approved by the Board on fknL ?C* and signed on its behalf by.. John Tay or MBE (Chairman) City and Guilds Art School Property Trust: A company limited by guarantee, Company Registration No. 992490 (England and Wales) City and Guilds Art School Property Trust 13
Statement of cash flows 31 August 2024 Year to 31 August 2024 Yearto 31 August 2023 Notes Net cash fl¢)ws provided by operatlng activitles 38,184 123.674 Net cash flows (used In) investing activltles {51,290) (6,360) Net cash flows {used In) financlng aclivilies (36.975) (50,193) Change in cash and cash equlvalenls in the year (50,081) 67,121 Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year 107,848 57.766 40,727 107,848 Notes to the cash flow stal•ment for the year to 31 August 2024 A Reconciliation of net Income to net cash provlded by operating activltles 2024 2023 Net (expenditure) Depreciation charge {Increase) decrease in deblors Increase in creditors Net cash provided by operating activities {44,589) 78,127 {49,846) 54,492 38,184 {75,340} 79,823 17.031 102,160 123.674 Cash flows from investing activities: 2024 2023 Purchase of tangible fixed assets Net cash (used In) Investing actlvllle8 {51,290) 151,290) (6,360} (6,360} C Cash flows from financing activities: 2024 2023 Repayments of borrowing Net cash (used in) Ilnancing activities {36,975) {39.975) {50,193} {50,193} D Analysis of cash and cash equivalenls 31 August 2024 31 August 2023 Cash at bank and in hand 57,766 107,848 City and Guilds Art School Property Trust 14
Statement of cash flows 31 August 2024 E Analysis of changes in net debt Al1 September 2023 At31 August 2024 Cash flows Cash at bank and in hand Loan payments falling due within one year Loan payments falling due after more than one year Total 107,848 {35.703} 150,081) 35,703 57,766 72,145 (14,378} 57,766 City and Guilds Art School Property Trust 15
Principal accounting policies 31 August 2024 Basis of accounting The financial statements have been prepared under the historical cost convention with items initially recognised at cost or transaction value unless otherwise stated in the relevant accounting policy note{s). The financial statements have been prepared in accordance wilh Accounting and Reporting by Charilies- Staternenl of Recommended Practice applicable to charities preparing their accounts in accordance with Ihe Financial Reporting Slandard applicable in the UK and Republic of Ireland IFRS 102) ('Charities FRS 102 SORP'}, the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. The charity constitutes a public benefit entily as defined by FRS 102. The accounts are presented in slerling and are rounded to the nearest pound. Critical accountlng estimates and areas of judgement Preparation of the accounts requires the Truslees and management to make significant judgements and estimates. The items in the accounts where Ihese judgements and estimates have been made include: • the useful economic lives attributed to tangible fixed assets used to determine the annual depreciation Charge. and estimates in respect to accrued expenditure. Going concern The Trustees have assessed whether the use of the going concern assumption is appropriate in preparing these financial statements. The Trustees have made this assessment in respect to a period of one year from the dale of approval of these financial statements. The Board has examined the requirement for free reserves i.e. those funds not invesled in tangible fixed assets, nol designated for specific purposes. not restricted and not otherwise committed. At 31 August 2024 the Charity held negative free reserves of £39,624. 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 activity. This loan is fully drawn down and was repaid in April 2024. City and Guilds Art School Property Trust 16
Principal accounting pollcies 31 August 2024 Going Concern (continued) The Board has carefully reviewed the Charity's cash flow position. It considers that, given its limited plans for the immediate future and the ending of its interest commitments and repayments in regard to the above loan, Careful cash-flow management especially in respect of its obligations to and amounts due from the Art School, will, noMithstanding the current fee reserves deficit position, provide the Charity with sufficient working capital to meet its liabilities out of its core rental income as they fall due. However, il also recognises that should its liquidity needs require it, the Charity's assets would provide adequate security to obtain a further loan. The Trustees have concluded that there are no material uncertainties related to events or conditions that may cast signrficant doubt on the ability of the Charity to ntinue as a going concern. Income Income is recognised in the period in which the Charity is entitled to its receipt and the amount can be measured with reasonable certainty. Fees receivable and charges for services and use of premises are accounted for in the period in which the service is provided. Expenditure Expenditure is included in the slatement of financial activities when incurred. Expenditure comprises the costs of charitable activities on Ihe Charity's 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 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 conditions. Tangible flxed assets Assets are included in these financial statements at cost at the date of acquisition together with the cost of additions and improvements to date. Depreci8tion is provided at the following annual rates in order to write off each asset over its estimated useful life= • Freehold property 20/0 on cost,. • Freehold propety improvements 4 % on cost., • Leasehold property The minimum life of the lease. Debtors Debtors are recognised at the settlement amount, less any provision for non-recoverability- Prepayments are valued at the amount prepaid. They have been discounted to the present value of the fulure cash receipt where such discounting is material. City and Guilds Art School Property Trust 17
Principal accounting policies 31 August 2024 Cash at bank and in hand Cash at bank and in hand represents such accounts and instruments that are available on demand or have a malurity of less than three monlhs from the (Sate 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. Creditors and provisions Credilors and provisions are recognised when there is an obligation at the balan sheet date as a result of a past evenl. it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlemenl can be estimated reliably. Creditors and provisions are recognised at the amount the charity anticipates 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. Financial instrumants The Trusl only holds basic financial instruments as defined in FRS 102. The financial assets and f inancial liabilities of the Trust and their measurement basis are as follows: Financial assets trade and other debtors are basic financial instruments and are debt instruments measured at amortised cost as detailed in note 6. Prepayments are not financial instruments. Cash at bank- is classified as a basic financial instrument and is measured at face value. FinanGial liabilities - trade creditors, accruals and other creditors are financial instruments, and are measured at amortised cost as detailed in note 7. Taxation and social security are not included in the financial instruments disclosure definition. Deferred income is nol deemed to be a financial liability, as the cash settlemenl has already taken place and there is an obligation to deliver services rather than cash or another financial instrument. Fund accounting The general fund comprises those monies which may be used lowards meeting the charitable objectives of the Charity at 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 to, a specific purpose, or donations subjecl to conditions imposed by the donor. City and Guilds Art School Property Trust 18
Notes to the financial statements Year to 31 August 2024 1 Net expenditure This is stated after charging: General Designated fund funds Restricted funds Totsl 2024 Auditorfs remuneration.. ststutory audit seTViCèS Depreciation Operating leas8 rentals 5,345 5,345 78,127 145,620 78,127 145.620 General Designated Resfricted fund funds funds Total 2023 Audilorfs MUneratiOn.. Stalutory audit services Depreciation Operating lease rentals 4,450 4,450 79,823 145.620 79,823 145,620 2 Support costs 2024 2023 Management charges from thè City and Guilds of London Art School Insuran Legal and professional fees Govemanc8 cosls Interest on loans and bank charges 53,805 19,010 35,356 5,345 1,376 114,692 57.261 16,154 10,425 4.450 4.934 93,224 3 Staff costs and Trustees, remuneration The average number of staff employed by the charity in the year was nil (2023 - nil). The Charity's total staff costs in the year were therefore £nil (2023- £nil}- No Trustee received any remuneration or other emoluments in respect of their services as a member of the Board during the year (2023 - none). No Trustees were reimbursed for travelling expenses during the year {2023- none). The Charity has purchased insurance to protect itselffrom any loss arising from the neglect or defaults of its Trustees, employees and agents and to indemnify the Trustees or other officers against the consequences of any neglect or default on their part. The insurance premium provided cover of up to a maximum of £2 million (2023 - £2 million). The aggregate remuneration of key management personnel was £nil (2023 - £nil). In the year ended 31 August 2024, key management personnel consisted of the Trustees and the Company Secretary who was an employee of the City and Guilds of London Art School. 4 Taxation City and Guilds Art School Property Trust is a registered Charity and therefore is not liable to income tax or corporation tax on income derived from its charitable activities, as it falls within the various exemptions available to registered charities. City and Guilds Art School Property Trust 19
Notes to the financial statements Year to 31 August 2024 5 Tangible fixed assets Freehold Freehold land and propety property improvements Leasehold prope Total Cost At 1 September 2023 Additions 382,169 1,413 383,582 595,872 1,478,945 49,877 1,528,822 2,456,986 51,290 2.508,276 At 31 August 2024 595,872 Depreciation At 1 September 2023 Charge for year At 31 August 2024 372,565 6,539 379,104 232,356 8.036 240,392 345,562 63,552 409,114 950,483 78,127 1,028,610 Net book values At 31 August 2024 At 31 August 2023 4,478 9,604 355,480 363,516 1,119,708 1,133,383 1,479,666 1,506,503 No formal valuation of Freehold land and property has been conducted 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 2024 2023 Other debtors 99,692 99,692 49,846 49,846 7 Creditors: amounts falllng due within one year 2024 2023 Trade creditors Loan. Social security and other taxes Other creditors Accruals and deferred income 16,625 35,703 10,302 57,404 76,157 179,566 12,380 41,330 126,747 197,082 'The loan was repaid fully in 2024 and hence no further payments are due. City and Guilds Art School Property Trust 20
Notes to the financial statements Year to 31 August 2024 7 Creditors: amounts falling due within one year (continued) Included within creditors is the following deferred income, analysed as follows and which relates lo a provision for an increase in rent pending the renewal of a lease.. 2024 2023 At 1 September Dèferred in the year Released in the year At 31 August 71,157 71,902 (21,311) 121,747 21,049 71,157 (21,049) 71,157 8 Restricted funds The income funds include restricted funds comprising the following donations and grants held on trusts to be applied for specrfic purposes.. Balance at1 September 2023 Donations Expenditure Balance at31 August 2024 Transfers Development Fund Balance at1 Saptember 2022 Balance at31 August 2023 Donations Expenditure Transfers DevelopnnI Fund The Development Fund represents funds donated for Ihe specific purpose of funding the Charity's Masterplan developmenl. Expenditure on work which is capital in nature is transferred to a designated fixed asset fund, as explained in note 9 below. Expenditure relating to professional fees for design and other planning work on current and future masterplan phases are expended. City and Guilds Art School Property Trust 21
Notes to the financial statements Year to 31 August 2024 9 Unrestrlcted Funds Balance at1 September 2023 Balance September 2024 Income Expendiiure Transfers General Fund Designated Fund (21,872) 1,506.503 1.484.631 307.573 (274,035) {78,127) (352,162) (51.290} 51.290 (39,624) 1,479,666 1,440,042 307.573 Balance at1 September 2022 Balance atl September 2023 Incon Expenditure Transfers General Fund Dgsignated Fund (19, 995) 1,579,966 1,559,971 303. 744 (299,261) (79.823) (379,084) (6,360) 6,360 (21,872) 1, 506,503 1.484,631 303, 744 Designated fixed assets funds: In order to separate the impact of the property development within the financial statements, the Charity established a designated fund to represent Ihe value of ils tangible fixed assets. When the Charity incurs expenditure on tangible fixed assets, the amounts are transferred from other revenue funds to the designated fund. A total of £51.290 (2023 - £6,360) was transferred to the designated fund during the year representing capital additions. No capital work was funded from the restricted funds (2023 none). The general fund showed a deficit of £39,624 {2023- deficit of £21,872) at the end of the financial year. 10 Analysis of net assets between funds General Designated fund fijnds Restricted funds Total 2024 Fund balances at 31 August 2024 are represented by: Tangible fixed assets Current assets Creditors: amounts falling due within one year Total net assets 1,479,666 1,479,666 157,458 157,458 1197,082) (39,624) 1.479,666 (197,082) 1,440,042 City and Guilds Art School Property Trust 22
Notes to the financial statements Year to 31 August 2024 11 Analysis of net assets between funds (continued) General Design8ted fund funds Restricted funds Total 2023 Fund balances at 31 August 2023 8re represented by.. Tangible lixed a$sels Guent assgfs Creditors.. amounts falling due withln one year Credilors.. amount falling due in mor8 than one year Total net asset8 1,506,503 1,506,503 157,694 157,694 (7 79,566) (179,566) (21,872) 1, 506,593 1,484,631 12 Liability of members The Charity is constituted as a company limited by guarantee. In the event of the Charity being wound up members are required lo contribute an amount not exceeding £1 each. 13 Leasing commltments Operating leases At 31 August 2024 the total of the Charity's future minimum payments under non-cancellable operating leases was: Buildings 2024 2023 Amounts due within one year Amounts due between one and five years 145,620 291,290 145,200 436,910 The buildings operating lease relates to the sub-lease of premises in the Old Vauxhall Telephone Exchange in Kennings Way for the period up to the first break clause. The previous lease expired in late September 2022 and Heads of Terms for a new lease from the date of that expiry were agreed at an increased rental which has been duly accounted for in 2023124. 14 Capital commitments As at 31 August 2024, the Charity had capital commitments of £nil (2023- £nil). 15 Rèlated party transactions Administrative, fundraising snd other tasks are performed by staff employed by the City and Guilds of London Art School. An annual management charge is levied by the Art School in consideration of this. The City 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 £53.737 (2023- £57,405), of which £41,330 was outstanding al the year end. The Trust recognised rental income from the Art School of £307,573 plus VAT in rent during the year (2023- £303,744 plus VAT), of which £nil was outstanding at the year end. City and Guilds Art School Property Trust 23
Notes to the financial statements Year to 31 August 2024 16 Comparative statement of financial activities Unreslricted funds 2023 Total funds Gener81 fund Dewgnaled Restric18d funds funds Notes Income from.. Donations Ch8rilable aGtivAlies . Rentreceivable Tolal income 15 303,744 303,744 303,744 303.744 Expendrture on." Charitable activities Costs Ofopeting the Charity . Premises . Support costs Tol81 expenditur8 206.037 93,224 299.261 79,823 285,860 93,224 379.084 79,823 Net income (expenditure) 4,483 (79,823) (75,34OJ Transfers been funds 10 (6.360) 6,360 Net movement in funds (1.8TTJ (73,463) (75,340J Fund balances brought fotwgrd at 1 September 2022 (19.995) 1,579,966 1,559,971 Fund b818nces carried foN&rd al 31 August 2023 (21,872) 1,506.503 1,484,631 City and Guilds Art School Property Trust 24