THE THOMAS HEATHERLEY EDUCATIONAL TRUST LIMITED (A ¢ompany limited by guarantgo) DIRECTORS, AND TRUSTEES, REPORT AND ACCOUNTS FOR THE YEAR ENDED 31ST AUGUST2022 Company No: 00977615 Charity No: 312872
THE THOMAS HEATHERLEY EDUCATIONAL TRUST LIMED {A company Ilmlled by guarantoel REPORT AND ACCOUNTS CONTENTS Page Directors, and Trusteos, Report 3-14 Independent Audltor's Report 15-17 statement of Flnanclal Actlvltles 18 Balance Sheet 19 statement of cash flows 20 Notes to the Accounts 21-33
THE THOMAS HEATHERLEY EDUCATIONAL TRUST LIMITED (A company limited by guarantee) DIRECTORS, AND TRUSTEES, REPORT FOR THE YEAR ENDED 31ST AUGUST 2022 The trustees are pleased to present their annual directors. report together with the financial Statents of the charity for the year ended 31 st August 2022, whth are also wepared to meet the requirernents for a directors, report and Companies Act purposes. The financial slatemanls comply wth the Charitb&s Act 2011, the Companies Act 20ffi, tha Momorandum ané Articles of Association, and Accounting and Reporbng by Charities.. Slatoments of Recommeed Prle applicable to charities preparlng their acxounls in a(xordance vth the Financial Reporting Standard applicable in the UK and Republlc of Ireland IFRS 102) (effective 1 January 2019)- OUR PURPOSE AND ACTIVITIES The enduring obje¢live of Ihe Charity is to offer a wblic benefit through the provisK)n of education in the visual arts al the Heathgrley School of Flne Art. The Charity was founded In 1969 arKI incorrxjrated in 1970. It has had control of The Heathedey School of Fine Art Sin 1974, which 1$ one of Ihe oldest. arKI rvyw one of the few remaining fully independent Art sC)01s in England. Its primary obje¢tlve. to paraphrase its Memorandum of Asswiation (22.02.7n, is to advan education in the visual arts, by the teaching of drawing. palntlng. sculptu, des3n, winl-making arKI associated visual arts and ¢rafts. From ihe earliest days of the foundlro of the s¢hcol in 1845, wr leaching has been cent on a strong belief in the value to the artist of leaming how lo see. We provKle a thorough gjndIg in method5 of working from direct observallon baslng earty sluéy on tt)e primary s(KJrce of the human figure, portrait and natural objects. Students of Painting. Drawlng, Sculptu, Ceramics and Printma explore the context of Klea5 Wtthin which they will build a personal language and develop the lechnkal skills Ilw require. The pattern of study offered by Heatherleys has all lyjl disappeared from mainstream colleges in the Stale Sector. We offer a portfolio of full and part lime courses in direct response lo the clear public demand for constructive and supportive teaching in the sknlls and disuklines of Fine Art. Full lime DiOrna Courses are offered for those who wish lo develop a ¢areer or to enrlch their wactice. Part lime courses are structured lo Introdu and develop the skills and interests of students who may construct their own menu from over 30 courses. Expenenced lut(S are all artist praclilioneTs. and many are graduates of the Royal College of AJt or The Slade. We offer a creative learning environment lo our student community whatever their ago, bground or range of ability. The School has expanded considefftbly in recent years. bul tts operating surplus is not Substant1. It looks, therefor6. to interest on its capital reserves to subsidise bursaries and free places as particular needs arise. Funds have been s&1 aside for this purpose. The Charity is Iwking actNety towards raising fijrther funds spectfically to extené this programme. AGhiavement and actlvltles Thg mission of Ihe school Is to promote acadgmiG excallencg and an gduG*ion in tho Flno Artg for all. Accesslblg Loarning We are commlttod to maklng our Dlploma and Part tlme courses xcesslble to a dlverse student demographlc. Heathorleys offers full and part time COUTses in Fine M to sludents wlh a variety of needs. Our student l)ody repr8senls a wide age range, soclal and ojltural bkground and ethnic dNersty. We are noted for the strong sense of frfendly community which is fostered within the schtKA. proTnotes a constructive approach tD leaming and 18 an Imwrtanl support to students when they leave.
THE THOMAS HEATHERLEY EDUCATIONAL TRUST LIMITED (A company Ilmlted by guarantee) DIRECTORS, AND TRUSTEES, REPORT FOR THE YEAR ENDED 31ST AUGUST 2022 We encourage and res1 the participation in our courses of all wjult age groups from any background, whether they are preparlng for professional practice as artlsls or eworing and developing their creativity on a part lime basi8. We do Ihls by providing a range of part lime day and evening COLJrses, offering beginners flexible and aCCEssib choices for entry level tuillon. Part time day. evenlng and weekend courses provide an aleSSIble introduction lo the Fine Arts for adult students of all ages and levels of abiltty- They may chse to use this progrdmrne as a pathway lo further learnlng or slmply enjoy and benefit from the range of possitmlities available lo the amateur enthusiast. Structured Diploma courses in Portraiture and Sculpture. dIrectl by Tony Mott and Minna Stevens. offer two years of Intenslve study lo Ih05e who wish lo develop a career in art. In September 2021 we launched the Post Graduate Diploma in Figurative Painting, Coordinator Fred Crayk. This one year progrdmme provides the opportunlty for further support and personal development lo students who Are making the transitK)n from directed lo independanl practice. Students Every year students are SUPFQrted so that they may be qualffied fDr a 12rr in the arts or to apply for ¢ourse8 In further and higher edlation for which tw might not otherwse have been eligible. In an era of flucbjating and unselded empbyment prospe¢ts. Heatherteys allrads a number of mature Sbjdenls who are drawn to our vocational courses as a means of developlng or changing career pathways. The charty has held a number of students lo rediscover an earlier unfuffilled v¢xatM)n In art and design, or to lake Inillal steps inlo a new flel(i after another career. On leavlng Diploma Courses are struclured so that they equip students vllh the skllls and understanding necessary for professlonal practice. This to a degree that is nol niKmally fou in main51ream art h0O1$ these days. Gradualos of the school are enabled lo establish themselves as exhibrtirvJ arbsts in painting, sculpture arKI prSnlmaking. For In$lan¢e many graduates of the Diploma In portraitu chry)se lo become professional portrait palnlers yrki to public or private commissh)ns. Younger students may seek further qualificatbns on ¢omplelKfyn of a Dipk)ma course al Heatherleys, for instance by conllnulng their studies elsewhere on BA degree course5 in Fine Art. Their hwJh calibre has been marked by the regular a¢¢eplance of our graduales on Master of Arts degee courses such as al the Royal College of Art, London. On leai'lng the schod, waduates may galn professiona empbymenl in a variety of arts rdated areas including exhibition preparation and curation, uCatiOnal wogrammes. arts promotion and technical produclion such as making scenery and props for fllm and theatrical companies such as al the Royal Opera House, London. Accredlted EduGation Hoalh8rteys has Accredited status awarded by th8 Brtknsh AcmdllatK)n Council. By means of a serfes of interim checks and full inspections. Accreditation underflnes aClem[C excdlence to inlematlonally accepted standards and promot8s student confidence in our independent institutK)n. The Councll demands that our building and f111t meet the huhesl starKlards of Health and Safety, that we subject our (x)urses lo continuous review and, by me8ns of a system of staff appraisals and class observations, that we ensure our teaching staff and course programm&8 are of the highest qualrty so that we are able lo fu11[ student expeclalions. First awarded in 2017. Accreditation was due for renewal in December 2021 when we underwent tho fv11 Inspection which tak85 place every four years. We wero given extremety kY)Sitive comments in 811 categories and our accredi18d status has been renewed for the third time.
THE THOMAS HEATHERLEY EDUCATIONAL TRUST LIMrrED IA company Ilrnitad by guarante8) DIRECTORS, AND TRUSTEES. REPORT FOR THE YEAR ENDED 31ST AUGUST 2022 Flnanclal Support Each year we offer financial suppcrt to a number of sbjdenls who are talen18d bul financially disadvantaged {oflen younger ones) so that they may benefit from the figuralSv8 art educalB)n which is provided by Healhedeys. We have sel asKio school ndS lo wovide bursary assistanc8 Wh is a¥rdrded each year for this purpose. The John Walton Sludenl SupFKJrt Fund is available to help DIoma students already in receipt of a Bursary but who find themselves in unforeseen drfficulties. They may apply for help %wth travd, wth living expenses or buying course materials so that they are able to conlinue wth their studies_ We have the enlhusiaslic support of Patrons and Board of Twslees who are working to increase Ihe level of support we can offer financialty disadvantaged students so that tY may benefrt from a Pla on one of our Diploma courses. Vvith their help in approathing donors, charitable trusts arKI foundations, VR have been able lo attract sponsorship for students who could not otheThwse afford our fees. We are grateful lo sponsors. including the Worshipful Company of Painter Stainers, the De Lazlo Foundation and Golden Bollle Trust, who have donated fvnds lo used to support our students in their studies. Student welfare The school has an important Iherapwtic fundN)n for some of wr students. Atlhough highly ¢realivts, they may be challenged by difficulties which are temporary or pmart and range from depression or bereavement lo autism or include physical prOteMS such as mobility or hearing loss. Our building is purpose desvJned and equipped $0 that studios and faGililies are fully accessible for Ihose wth physical disabilities. UnsupkM)rted, these issues may interfere th the demands of an academi¢ educatrjn arKI coukl lead to the abandonment of a coutse. As a smaller scale academk ¢ommunty, we are alAe lo help those who might otherwise struggle to learn In a larger, more impersonal university setting. They have been able lo achieve their potential al Healhedeys, enhance the quality of their lives and develop careers in a broad range of arts related actNities. Heatherteys has developed and advertises our firm policy of inclusion for disadvantaged students and Underrepresent minority groups. We welcorne a diverse range of students who, although with physical or mental d1fficult$ or chalenged by issues concerning identity. can fully enjoy and benefit from our leaching. In 2021122 we continued our suprx)rt for students whose learning was dlsadvantaged due to physical disability or issues of mental health or identity. Our Student Support Officer, Diana Horton. wcyked wlth dass tutors in order to identtfy and indude students who required individual support. She was able to guKle bjiors lo an understanding of the particular challenges an individual sludenl might face so Ih2t they WlId be better equipped to help them with their leaming. She was a personal (x)nnection for students, offering direct practical assistance and emotional suptM)rt on a range of levels so that they could achieve their tK)tential by completing courses which they might not otherwise have been able to sustaln. School policies (xJmmuni¢ale our Commitment to support those who need it {for instance. Equal Opportunities. Safeguarding and Learning Support). Policies are regulady reviewed, published on our website and available in hard copy at accessibl8 inforniation points wthin the Sch. Outreach and support We acltvely seek opportunities to benefit the puNic and have devek)ped a sertes of rewarding partnerships i1ween Heathedeys and our local community, indudiry arbY ScFKKS and hospitds. These partnershlps are a powerful way lo promote community spldt and social cohesNeness. Our links wth local sch(KJls enable us to eneoLJrage the creativity and Gonfiden¢e of young people in a of initiabves.
THE THOMAS HEATHERLEY EDUCATIONAL TRUST LIMITED (A company limlted by guaranto9) DIRECTORS, AND TRUSTEES, REPORT FOR THE YEAR ENDED 31ST AUGUST 2022 Alth(MJgh school exhiltiOnS and public lectures Yrne curtailed due lo (¥)ntlnuing pandemic restrictions, we ¢realed opportunltl8S to invite and involve members of the public in 8 range of events 81 Healh8rteys wherever possible. A programme of live talks and recorded lactureg vras made available online both to our students and lo the public. As Lockdown restrictions on public gatherings (x)nlinued, Heatherleys websrte 'Lockdown Gallery, provided an DPPOrtunity for students lo share images of Ihelr artwork with the publTrc. With the lrfting of reslriclions, exhibitions could again be mtsjnted by the school induding strjdenl work, gtaff exhibllions and painting and Sculpture shown by vi8rting professional artists. We invited our local communlty lo view exhibitions in our scho(A gallery. Our annual Diploma Students, Graduation Exhibiti atlra¢t8 much OLrtside interest arKI we were delighted to be aNe lo share and celebrate the achievements of our graduating students with the general public. We actlvely suppcfft some of Britain's Ma)r Arts Srtietles who share our charitable aims, includit)g the Royal Walercolour Society, the siety of Portrait Sculpt(xs and &xieties associated with the National Federation of British Artists, the Royal Watercolour S(W. the Royal Insb'ttjle of Painters in Watercolour. Pastels Society and the New Engllsh AJt Club. We offered the New Engllsh Art Club use of studio spac at weekends to hold their speciali51 programmes of instruction for the public in painb'ng and drawing. The Pastels Society organised Easter vacation worksFw sessions al Heaihedeys We offered studio use io the chelsea Arts Club lo h)Id We lif8 drawing classes for their local artlsl members. We hosted a Masterclass long weekeThl for the S(Kiety of Portr8h S(#Jlptors. Heatherleys sponsor5 prizes in order to acknowtedge aehlevemenl and lo enUrage aspiring and emerging arti8ts attempting to develop a career in the Fine kn. Although optx)rtunities for exhibitions were still limited in eady 2021-22 due to the pandemk: We offered our prize for Portrait Sculpture, award for work exhibited by the sIety of Portrait Sculptrs during their annual exhibition. We supported the Society of Painter Prinlmakets by awarding a wze at thwr annual exhibition. We sponsored Ihe 'Lots Road group. of painters in their annual exhibttion. We encouraged the creatwity of young people by sp)nsoring I1 phot(NJraFthy o)mpetition 'A day in the Llfe,, donating the educatlonal OPFYNtuntty of Sessior in wr Printmaking studio.
THE THOMAS HEATHERLEY EDUCATIONAL TRUST LIMITED IA company Ilmlted by guaranteè) DIRECTORS, AND TRUSTEES, REPORT FOR THE YEAR ENDED 31ST AUGUST 2022 Future A¢tlvltlos We are determined lo respond to the requiremenls of the publi¢ seeking an educalior) in the Flne Arts based on fundamental skills and technical disciplines by conlinu(xJsW enhan¢lrKJ the quality of our courses. In 2022123 we will closely monitor developments in educational, social and financial spheres in order lo adapt and respond to changes in the economlc dim8le brought about by the pandem. Forward Plannlng: we will frnallY revEw update Strateg plannirvJ targets In the light of the current downturn In the economic dimate which affects the ¢ircum8tancés of our studenls and may limit their opportunlty to a(£ess our courses. Quality control: we will consolidate and expand our prtsjramme of slaff aPal$alS. dass observations and student feedback so that we maintsin our reputation for academic excdlertC8. Supporting our staff: we will continue to support our leaching staff in their professlonal development. offering them opportunities lo exhibit their work to the public and to their students in our Conservatory gallery and promollng their achievements by means of social med Supportlng our students: we IMII promote the help our Siudent Support Offi(r is able lo offer so that students may access the supp(Yi avadable. We wlll Imement a prografflme of open discussion and awareness for Diploma student and tutor groups Ihemed arourKI qu8st•)ns of diversity and identity. Outreach: we will rebuild Outreach partnerships and our prDgramm& of public le¢lu$ which wer8 curtailed due to pandemK restn'clions. W8 will Irrt)k for new optxKttinllles to share our sknlls and facilities with thal ¢ommLJnty 0upS who may not be able lo a(xess wlar courses. Communlcatlon: we wll furtTrEr develop our use of social me(lia to promote rAJurses and communicate our ethos to the pUtlC, so that tlw 2Tr aware of the edLKtional opt)rtunities available at Heatherleys. Flnancial Securlty: responding to the demands of the world energy crisis, we wlll research appropriate suslainable options, such as solar energy. which wll wol1 the future finanrAal se{rity of the school. Seloctod Studant and Alumnl Achlovgmonts in 2021122 Portrait Diploma graduates, Stephen Jones and Sally Minns were awarded Bursary scholarships by the Worshipful Company of Painter Stainer5, enabling them lo take up their ple5 on the Post Diploma in Figurative Paintlng. Sculpture Diploma Student Annie Trevorah was awarded a Pl on th8 Masters of Degree cr8e at the Royal College of Art, London. Sculpture Diploma graduate Yuri Potx)v red a Bursary award from the De Lazlo Foundation, allowing him to tak8 a third Post Graduate year studyiNJ sujlpture at Heathedeys. Portrait Diploma graduate Kayoon Anderson receNed a prize from the Royal Society of Portrait Painters for her painting in the Mr Heathedey's Painting Competition October 2021 umna Christina Neiderberger exhibTted her painting as a shortlisted candldale for the Contemporary British Palntiry Prvze 2021. Unit One Gallery, London. Feb 2022 Slmon Turvey was awarded Tr Helen Wi130n Pri for his eXceptnal painling at the Open Studio Christmas Exhibition. Dec 2021 SculptLJre Dlploma aduate Juliet Williams Twas awarded a pla( lo study on the Masters degree wurs8 al Sl Martins S¢hod of Arl. Jan 2022
THE THOMAS HEATHERLEY EDUCATIONAL TRUST LIMITED IA c(vnpany limited by guarantèè) DIRECTORS, AND TRUSTEES, REPORT FOR THEYEAR ENDED 31ST AUGUST 2022 Overvlew Our retum to the schod lrfe after the p8JKJemic was much appreaated by staff and students and a foeJJs for the year 21122 has been that of rebullding C4)urse enrolments and our relationship with tho public by means of outreach programmes, public events and exhlbitions. all ol whth had been curtailed the pr8vious year due lo Covhj reslrlcllons. We reviewed and reduced our offerlng of Onllne courses. developed as a crealNe 8118rnative to sludlo-based leaming when studen15 and teachers were unable to attend schcd. As expected. ther8 was less demand for distsnce leaming when students were abie lo return lo studio facilities. working with school modds and tearning as part of a group. Continuing online c()urses have offered beginners development of th8ir drawng skills and virtually explored the art of museums for those who sllll find il drfficult to attend regular courses. Members of the public, students and alumni wer8 invited lo a tt¥o -day Symposium, held in the sck¥)ol library. A panel of invited artists dlswssed aspects of painting Still Life, subject matter with an enthusiastic auél8nce spilling out into the corridor. We returned to a full cal&néar of school exhibith)ns véhKh enhance the leaming environment for our students and offer many of them the exaling Chae to exhibit their work. perhaps for th8 first time, sharing their achlevemenls with the rest of the school. The Diploma Grnduat8s Final Exhibition was particularty well attended by the public despite record temperatures of 40 degrees. GDPR We implement the requirements of the Data Proteclion Act {May 2018) ensuring thal Iho confidential data we collect is safeguarded and secure. We communK8te the ways we uso, pyotect and store dala, publklslng our legally approved Data Prote¢llon Polw by means of Heathedeys. website. Publlc beneflt statemont In shaping our objectives for year and plann1 our actNities, the trustees have ¢ons1dered the Charlty Commission's guidance on FMJblK benefit, inthding the guidance 'public benefit.. running a charity IPD2). The achievements and activities atM)ve demonstrate the publ benefft arislw Ihrough the Charity's activities. FINANCIAL REVIEW The Accounts show a deficit fv the year erKled 31 st Auwst 2022 of £118,79312021- £63,890}, this is after including a depre¢lation charge on the Scho builéing al 75 Lols Road of £99,141. The financial position at the year£nd revealed by the Balance Sheet on page 19 shows n&t Gurrenl assets or Worki[ capital of £366,634 (£732,191). The net book value of tangible fixed assets held all of Wh are used direclly for charilable purposes, arnounled lo £3,558,31412021- £3.661,407). The market value of investments we £1,403.23712021- £1,053.380). We are an independent college. solely reliant upon student fees to finan our operations ané any surplus income is invested to provide a tUrn thal will replenish our bursary fuThJ whTrch enables students to benefrt from receiving a Fine Art education they otherwlse may not have had an opportunity to study. Prlnclpal Fundlng Sourc¢s Prlnclpal fijnding sources a donations and orOme from sbjdenl fees.
THE THOMAS HEATHERLEY EDUCATIONAL TRUST LIMITED IA company Ilmited by guarantoel DIRECTORS, AND TRUSTEES, REPORT FOR THEYEAR ENDED 31ST AUGUST 2022 Invèstment wwers and policy Under the Memorandum arKI Artkles of Association. th8 oharity has the wwer to make any investment which the trustees see fit. The trustees have nsidered the mosl appropriate policy for investing funds and have delemiined that a mix of investments lo gerate income combined vAth cash dewsits lo ensure that we can meet our requirements. The Injstees have detemiined to maintain the most apptopriale polbcy for investing funds is to: a) invest with Ruffer LLP. CaZete and maintain some funds on deFfv)Sit wth Charities Aid Foundation {CAF) in conjunction with Scottish Widows Plc. b) ensure Sufflent funds are hdd in deposit and current ac(xxJnts to provide for working capital requirements. Ros8rves pollcy The Trustees have eslabli$hed a policy %thereby the roserves of the charty are maintained at a level to enable the conllnued operation of its activities. 11 is the of the Trustees to maintain free reserves at a level equivalent lo al least six months running costs to enable th8 Charity to meet its obligations in the short tertn together with funds to cover any unforeseen def119 or revenue shortralls. In setting thls polw C(mjnc of Trustees takes account of the followlng factors- I Staff conlracls.. maximum peri(MJ of notice for staff contracts Is three months. The schotsl has long-serving staff and thi5 affects the maximum amount of stattrtory redurKlancy payable. 2 Commitments.. The school has contracts with maintenance companl8s to ensure the safe use and maintenance of lifts. equipment and the upkeep of the schwl. Six fflonths running costs are cal(yJlated on the basis of projected expenditure, with no allowance mad8 for projected inGotne. The current reserves amount ed by The Thomas Heatherley Educational Trust Ltd is £610.39S. The unreslricled funds not designated or invested in tangible fixed assets held by the charity are £660,458 (2021 £664,564). As at the year-end atxounls showed reserves of £5,328.185 (2021 - £5,446.978) of which £40,S(2021 - £35.605 ds restricted. In addition. the Trustees have 881 asKle deswJnated funds totalling £1,068,50812021- £1,085.402) for three specific purposes.. a designated bursary fund, a designaled trAJlding maintenance fund and a designalod new building fund. Bursary Fund Thls fvnd was intlially set up to assist wth the provision of at least two bursarie5 per year lo giRed students who would otherwise be unable to afford to att&nd the Dipk)ma Course,. due lo an increase in demand for bursary assistance and to enable us to fulfll our charitable rcAe as a provider of art education the Truslees have SignlcantIY increased the level of Designated Bursary Funds wlh a view to offerirvJ al least six bursaries a year f(x the next five years. Euht bursariès were awaréed in the academic year 2021122 and the balance of the unStred Bursary Fund is £70,39212021 - £87,286) and the restricted Bursary Fund is £32,757 (2021 - £27.557} The Tnjstees decided In 2016 to replenish the Bursary Fund annually by transferring 6% of surplus income over expenditure before deducting building depreciation to the Buwry Fund wtth a view to sustaining a healthy and vital fvnd.
THE THOMAS HEATHERLEY EDUCATIONAL TRUST LIMITED (A wnpany limlted by guarantee} DIRECTORS, AND TRUSTEES. REPORT FOR THE YEAR ENDED 31ST AUGUST 2022 Bulldlng MaSntenanGg Fund The School moved Inlo a new purpose tKJill buikling at 75 Lols Road in 2(K)8 and a designaled SchTh)l Maintenance Fund has since been created lo provide for major upkeep and repairs to the building. The School Building Manager has prepare(l an estlmale of costs essential major future building costs lo plant and equipment and upkeep such as rep18cing plant and equlpment as it becomes obsolele. the current FurKI has a value of £255,000, there was no mov8m8nl on this fund during the year as the schwl did not requir8 any major expenditure on upkeep or plant and equlpmenl. New Bulldlng Fund In order lo fvlfil the School's charitable al[r and better lo meet increasing demands on art education, the Trustees have considered the s¢ope to extend the capacity of its facilities. Exlanl plans prepared in 2008 for the building of third ffcrf)r studDs would provide for addiltonal dasses. The cost of such exlensK)n is considerable and the TnJslee8 woukl S88k sponsors lo match funding contributed by the School on an as yel io be defined basis, estirnated total costs of a new studio 15 £3,(KJO,CQO. The New Building FUNJ has a balance of £743.11612021- £743,116) There is also a restricted fuThJ, The Prize Fund, from lch prrzes are awarded annually to talented sludenls, the current value of the Prize Fund is £8,14812021- £8,048} The Charity has adequate cash SerVeS arKI the trustees beIve Ihal the s¢101 can fvifil ils day404ay obligations. STRUCTURE, GOVERNANCE AND MANAGEMENT Govemlng Documènt I Constltution The Thomas Heatherfey Educational Tnjsl Limited is a company limited by guarantee and a registered charity governed by its memirandum and artides of a$sAtion. Tho Charity number is 312872 and the Company number is 977615. RrUItment and appolntment of Trusl085 As set out in the Artides of Ass(Kiation the chair of the Ccmjncil of Trustees Is nomlnaled by the other Iruslees.The Directors of the organisab'on are also the charity tnjstees for the purposes of charity law. The Councll of Trustoes have power to appoint addttional Truslees as it considers fit to do 30. The Trustees have no beneficial interes1 in the company other than as members. The Trustees are also the directors of the company. All of the Trustees are members of the company and guarantee lo contr1tle £1 In evenl of winding up. The Council has the F(9V lo appoint additional Directo. Trust99 Indurtion and tralnlng Th8 Trustees mainlaln a good workirwJ knovAedg8 of charily and company law and best practise by regular readlng of chadty press artides and scrutiny of Companies HSe. Charity Commission, other Government and voluntary organisalion advisory websiles. New Tfuslees are gNen copies of the Memorandum and Articles of Association ané copies of previous yearfs minutes and attend an Induction session given by an experie[1 Trustee. 10
THE THOMAS HEATHERLEY EDUCATIONAL TRUST LIMITED (A company limited by guarantee) DIRECTORS, AND TRUSTEES, REPORT FOR THE YEAR ENDED 31ST AUGUST 2022 structure and Managgmgnt The object of the Charity is to advance visual art education primarily in the figurdlNe traditM)n through The Heatherf8y School of Fine Art. The Company is organised as follow5.. a) The Company is governed by the Courril of Trustees. w) are dected annually from the membership of the Company. Tru51ees are elected, re-eleGted or retire at Ihe Annual General Meellng of the Company. The Council elects a Chair-person from tts number. The Council currently has seven members. All new Trustees are provided with relevant dumentalK)n on their responsibilitS as Trustees. b) All member5 of the Council give their servi$ free of charge. c} Persons interested in the promotion of edu(alion in the visual arts, with approprtate backgrounds and qualifications, are Invited by the Trustees to join the Charity as Company Members. d) The Council meets at least three limes a year. Finanryal and management reports are provided al each meeting. e) The Charity aprrf)inls Iwo executive officers, the PrinThpal of Ihe School arKI the Bursar who manages the fInarla1 affairs of the Charity. fj The School is directed by the Prinupd and an Academic Board. Organlsatlon The trustees of the company meet lemty as a Board, bul have also sel up a range of suWroup8 i.e. the Development subcommittee, the Sile subcommittee and the Mides of AssoGialion subc4)mmitteè. where the Trustees meet between Board meetings. The Chair and FinancHI & Investments subwmmillee also meet with the Trustee8 on a regular basis. It is governed by the Councrf of Trustees, whth sets the overall frarork. The PrirKxpal is the Chief ExecLrtivo Officer and the mernbers of the staff team are then delegated full responsibility frx Implementation within th18 framework. The role and contrlbLrtlon of volunteers During the y&ar no volunteers were used to SuPt the work of the paid staff. Staff Healhedey's pridgs Itself on ils dedicated and experienced lecturers arKI lulors, all of whom are actlvely pracllslng artists, and many of whom have boon with the School since the 19705. In any xademK year the number of those leaching will be in the htgh tsvenlies. Tr Schod thus offers them th& opportunity lo pass on their particular expertlse while continuing their own professional practice on a part-time basis. The Academic Board. responsible for the direction of the Schcd: PNncipal.- verOna Rlcks MA IRCA) Director of Studi85 & Course Dir&tor. Diploma in FvJuratNe Sculplure: Tony Mott HDFA{Lond) Course Director, Diploma in Portra¥Èure.' Minna Steven5 MA (RCA) Cwrdinator, Prir)Imaknng: Hilary Dalty MA (Rome Schdar) C¢>ordinalor, Post Diploma in Fiwrative Painting= Fred Crdyk 11
THE THOMAS HEATHERLEY EDUCATIONAL TRUST LIMITED (A company Ilmlted by guarantee) DIRECTORS, AND TRUSTEES, REPORT FOR THE YEAR ENDED 31ST AUGUST 2022 Rolatod ParU¢8 Nong of our Twstees receives any remuneration or other benefit from work on behalf of the charity. Any contractual arrangamenl with a rdated party needs lo be di5dosed. In thi5 financial year Ih8r6 was none to disc108e. Pay pollcy for sènlor staff SeniDr management staff pay is set with refererKe lo market rates frjr similar roles wtthin similar sized charities in the sector. The pay of the senior staff members are reyiewed and approve(J by the Board. Risk Pollcy The Iruslees have a risk tnanagement strategy whith )mPrISeS. An annual revte•V of the risks the charity may face.. The establishment of systems and procedures lo miligale those risks idenlrfied in the plan- arsd The implementation of predureS designed to minimise any wtenlial impact on th8 charity should thos@ rlsks malerialise. This work has id8nlinod that firrancial sustainability is the major financkql risk for the charity, it is imperative that we sustain our Bursary Fund through fundraisi lo ena8 the sch¢xsl to offer bursary assistance lo students. Attention has also been fwussed on non-financial risks arising from fire. health and safety of students and staff. A key element in the management of financial risk is via a reviewod reserves policy aThJ the retenlK)n of sufficient working (xpital. REFERENCE AND ADMINISTRATIVE DETAILS Company Number: 0977615 Charity Number. 312872 DirectOV8 l Trusteeg: C Penn lappoinled 23 Febnjary 2022) P E Ddscoll R Sharp J Eagle D Todd (Reslgned 28 July 2022} N Gage J Murray W Packer R Wllson (Resigned 23 March 2022) 12
THE THOMAS HEATHERLEY EDUCATIONAL TRUST UMITED (A company Ilmlted by guarantee) DIRECTORS, AND TRUSTEES, REPORT FOR THE YEAR ENDED 31ST AUGUST 2022 sretary. Vistra Trust Company Limited S•nlor Staff: Prlnclpal.. veron RkS MAIRCAI Dlreclor of Studies= Tony Moit HDFA Course Director, Diploma in Portraiture- Minna Stevens C(Fordinalor, Printmaking: Hilary Dallry MA C(Fordinalor, Post Diploma in FiguratNe Painting.. Fred Crayk A Bur8ar is appointed and reports to the Trustees. Rwlst8rad Offlee: 75 Lols Roafj. London SW10 ORN Independent Auditor.. SKS Audit LLP. 3 Sheen Road. Richmond. TW9 1AD Bankers: Lloyds TSB Plc., 417 Ncth End Road. Fulham. London SW6 1NS Investment managers: Ruffer. 80 Victoria Street, London SW1 E SJL Cazenove Capital, 1 LoThYon Wall Place: London EC2Y SAU Trustees, responslbllltles in relation to tho financlal st¢m¢nts Tmstees (w) are also directors of The Thomas Heathedey Educational Trust Lim(ted for the purposes of company lawl are reswnsible for preparing the Annual Reptyi and the financial slalemenls in ac)rdance wllh applicable law and regulatK)n. Company law r8qu¥es the Directors to wepare finartkgl slalements for each financial year. Under that law the Dlrectors have elected lo prepare the financial statements in aexx)rdarK with United Kingdom Generally Accepted Accounting Pract {United Kingdom AcccKJntir¥J Standards and applicable law>. Under company law the Directors musl not approve the financial statements Ljnless they are satisfied that they giv8 a tnjo and fair vlew of the slate of affairs of the MpanY and of its IrMe expendilure for that peric4J. In preparlng these flnanclal statements. the Directors are r%¥uired to". select suitable accounting policies and then apply them consistently,. observe the methods and principles in the Charities SORP- make judgements and estimates that are reasonable arKI pNdent', stste whethor applicable UK Ac(x)unling StatKlards have ken followed, subj'ect to any aterIal depathre$ disd05ed and explained in the fillarla1 statements., prepare the financwl statements on going concern basis unFoss it is inappropriate to prosume Ihat the charitable company wlll continue in business. The Directors are responsibie for keeping aéequate accounbng raccffds that are sufficienl lo show and explain the company's transactions and disdose wlh reasonable Ur8¢Y at any time tho financial position of the company and enable them lo ensure that the financial statements compty with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonat4e steps for the preventlon and dettion of fraud and other irregularities. The trustees are responsible for Maintenan and integrty of the (x)rporate and financial information included on the charttabl8 company's website. Legislation in the United n10M wverning the preparation and dSeMInall0n of rinancial 5tstements may dlffer from legislation in other jurisdiclions. STATEMENT OF DISCLOSURE TO AUDITOR In accordanGe with company law, the company's Directors certify that: so far as they are aware, there is no relevant audit infomiallon of whh th8 company's auditors are unaware,. and 8$ the Dlrectors of th8 company tlw have tsken all the steps that Ilw ought to have taken in order to make themselves aware of ary relevarrt audtl infomation arKI lo establish that the Charity's auditors are aware of that Infom)alion. 13
THE THOMAS HEATHERLEY EDUCATIONAL TRUST LIMITED (A company limited by guarantee) DIRECTORS, AND TRUSTEES, REPORT FOR THE YEAR ENDED 31ST AUGUST 2022 AUDITORS A resolLrtlon wlll be proposed and agreed at the Annual General Meetlng that SKSS Aud'rt LLP be re-appointed as audltors of the Charity for the ensuing year. Tha report of the dir8Ctor5 has been prepared taking advantage of the small companies, exemption of section 41 SA of the Companies Act 2006. APPROVAL Thb report was approved by the Board and signed on its haIr by.. Chrlstopher Penn Ichalrman of Trustees) 1st March 2023 14
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE THOMAS HEATHERLEY EDUCATIONAL TRUST LIMED {A company Ilmlted by guarantee) Opinlon We have audited the flnanclal slalements of The Thomas Healherfey Educational Trusl Limited for the year ended 31 Al August 2022. whi¢h comprise the Statement of Finala1 Actniil'es {Summary Income Expenditure Accounll, balance sheet, statement of Cash flows and notes lo the finanual statements, including a summary of significant accounting policles. The flnancial reporting framew(Kk that has been applied in their preparation is aplicable law and United Kingdom Accounting Standards, Indudlng Financial Rep(wting Standard 102. The FirTranclal fteptIng Standard applicablo in the UK and Republk of Ireland (Uniled KIjd0rn Generally Accepted Accounting Pra¢ti¢e). In our opinlon the finan81 stalemenls.. give a true and fair view of the stato of the charitaue company's affairs as al 31st August 2022 and of Its incoming r8source8 and application of resources, includiw its income and expenditure, for Ihe year then ended., have been propedy prepared in ordanCe with United KinOM Geral Accepted Accounting Praclico., and have been prepareé in accordance with the requlrements of the Companies Act 2006. Ba81s for oplnlon We conducted our audit in accordarKe wlh Internatnal Standards on Auditing (UK) IISAS {UKII and applicable law. Our responsibilities under those standards are further descrited in the ALKlitorfs responsibilities for the audit of the flnancial slalements section of our report. We are indendent of company in accordance with the ethlcal requirements that are relevant to audit of the finalla1 statements in the UK, induding the FRC'S Ethical Standard. and we have fulfilled our other ethical responsibilit'es in 1rdance with these requirements. We believe that the audll evidence we have obtained is sufficient aThJ approwiate lo provide a basis for our opinion. Concluslons relatlng to going conrAm In auditing the financial statements. we have oNlUded that the directors. use of tke going concem basis of accounting in the preparation of the finanal statements is approEYiate. Based on the work we have perfomied, we have not identified any material nrtainleS relating to events or conditlons that, individually or collectively. may cast significant doubt on the lentityl's abilty lo continue as a going ¢oncern for a period of al least months from when the financial glatemenls are aulhorised for issue. Our responsibilities and the resF(Jnsibilities of the dwectors with respect to plng concem are described in Ihe relevant se¢llons of this report. Other informatlon The other information ¢omprises the infomialion induded in the annual report, other than the financial statements and our audilorfs report Ihereon. The directors are responsible for the other information. Our opinion on the finanaal slalemenls does not cover the oiher information and. except to Ihe extent otherwise explicidy slated in our report, we do not express any form of assurance condusion thereon. In connection wlh our audit of the financial slalemenls, our responsibility Is lo read the other information and, in doing so. cJ)nsider whether Ihe other information is materially inconsislenl with the financial statements or our knovAty obtaInj in the audit or otherwise appears to be materially mlsslated. If we identify such material inconsislencM or apparent malertal mlsstalements. we are requlred lo delermlne whether there is a materlal misstatement in the ffinanclal slalemenls or a matsrfal mlsslatement of tha other information. If, based on the work we have perfomied, we IX)rKUde that thwe is a materfal mlsslatement of this other informallon we are required to report that fa¢1. We have nolhlng to rew>rt In this gard. 15
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF (Conud) THE THOMAS HEATHERLEY EDUCATIONAL TRUST LIMITED IA company Ilmited by guarantee) Oplnlons on othor matters proscrfbgd by the Companles Act 2006 In our opinion, based on the work undertaken in the course of the audit: The information given in the directors, rewrt for the finarrial year for which the financial statements are prepared is consistent with the fir)anryal sla18ments.' and The directors, r8POrt has been prepared in aCCC*da Yth applicable legal requirement Matters on whlch w8 are requlrod to report by exceptlon In the light of the knOedge and urnlerslanding of th& (x)mpany a1 its environment oblained in the course of the audit, we have not identified m31erial misstatements in the directors, roporL Vve have rthIng to rept in respect of the following matters in relation lo which the Companies A¢t 2006 requlres us to rept to you rf, in our opinion.. adequate accounting records have not been kept or retums adequate for our audit have not been rec8lved from branches not visited by us-, the fin2n(x81 statements are not in agreement wth the atxounting rrdS and r8turns.' certain disclosures of trustees. remuneration swxrd by law are not made., we have not rece¢d all the informatN)n and ewanations we require for our auéll.. Responsibiliti¢$ of dlrectors As explained more fully in the directors, $pSl ilities slalements sel out on page 11, the directors are responsible for the preparation of the financlal statements and for beiro 5alisfie(Y that they give a tnje and fair view. and for such internal control as the direclors determine is necessary lo enable the weparabon of financial statement8 that are free from material misstalemenl. whether due lo fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing. as applicable, matters related to going wncem and using Ihe going concem basis of accounting unless the director$ either intend to liquidate the company or to ¢ease 0rations, or have no realisllc alternative bul lo do so. Audltor's responslbllltles for tho audlt of the financial statoments Our objectives we lo obtain reasonable assurance about whether the financial statements as a whole are free from material misstalemenl, whether due lo fraud C error, and lo issue an audltorfs report that irKluées our opinion. Reasonable assurance is a high level of aSsrae, bul is Th)1 a guarantee that an audit Gonducted in accordance with ISAS (UK} will always delecl a material misslatemenl when li exists. M¢sstatements can arise from fraué or error and are considered material rf, indtvidually or in the a93regale, they could r8asonably be expected lo influence the economic decisions of users tak8n on the basis of these financial statements. Irregularflles, includlng fraud, are InStar of rnn-compliance wth18wE aThJ regulations. We design procedures in line with our responsibilities. outlined above. lo delecl material misstatements in reSpt of irregularities, including fraud. The extent lo whl¢h cHJr procedures are Capable of dele¢ling irregularities. induding fraud. is detailed b810w: We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which il opemtes, and considered the risk of acts by fhe wmpany that were (ntrary to applicable laws and regulations, IlUding fraud. We discussed wth the Directors the policles and PredureS in pla gardIng compliance with laws and rewlations. We discuswj amongst the audit team the identrftd laws and regulations, and remained alert to any indications of non-compliance. Durlng th8 audit we focus5ed on laws arKI regulations whh coukl reasonably be expected lo give rise to a malerlal mis5t81ement in the financial slalements. induding, but not limited to. the Cornpanies Act 2006, UK tax legislation Charity Act 2011 and SOFiP 2019. Our tests induded reIng the financtal statement disclosures to underfying supporting dotxmentation and enqulrles wtth management. Our prdreS in relatn lo fraud Included bul were not limited lo: inqulres of management whether they have any knowledge of any actual, suspected or alleged fraud, and discussions amongst the auélt team regarding risk of fraud such as opportunities for fraudulent manipulation of finaal statements. We determined that the prInPaI rlsk8 related to wsling manual N)urnal enlrfes lo maniwlate finanal perforMae and management bia5 through judgem8nls i 16
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF {ConUd) THE THOMAS HEATHERLEY EDUCATIONAL TRUST UMITED (A company Ilmiled by guarantee) accounllng estimates. We also addressed the risk of management oveTr*Ye of intemal ¢ontrols, including testing journals ar)d appropriateness of other entries In the nominal fedger. revivthiThJ Iransaclions around the end of the reporting p8riod', and evaluating Wheth w88 evide0 of bras by the directors that represented a risk of material misslalemenl due lo fraud. Because of the inherent Ilmitations of an audit. tr8 a risk that we will not deteGI all irregularities, including those leading to a material mlsstalemenl in the flnancial statements or rn-)mplian¢e wth regulation. This risk increas8S the more that cornpliance with a law or regulalN)n is removed from the events and transactions reflected in the financial stalemenls, os we will be less Ilkely lo become aware of instsn of non-compliance. Th8 risk is also gr8ater regarding irregularities ocujrring due lo fraud rather than or. as fraud involves Inlentlonal concealment, forgery, collusion, omission or misrepresentation. A furtheT description of our responsibilitEs for the audit of the financial statements Is located on the Finawial Reporting Council's website at www.frc.org.uklauditorsreswnsibilities. This descripb'on forms part of our auditor's report. This report Is made solely lo the company's members, as 8 b(Nty, in aCrdanCe wlh Chapler 3 of Part 16 of the Companies Acl 2006. Our audit work has been underlaken so that we might state to the company's members thoso mallers we are required lo stsle lo them in an auditorfs reFQrt arKI for no other purrx)se. To the fullest exlenl pem)ittod by law, we do not accept or assume responsibility to anyon& other than the cLYnpany arid the company's members as a body, for our audit work, for this rek. N for the opinions we have formed. James Foskett {Senlor Statutory Audftor) for and on behalf of SKS AUDIT LLP CHARTERED ACCOUNTANTS STATUTORY AUDITOR 3 SHEEN ROAD RICHMOND TW91AD 8 March 2023 17
THE THOMAS HEATHERLEY EDUCATIONAL TRUST LIMITED
(A company limited by guarantee)
STATEMENT OF FINANCIAL ACTIVITIES
FOR THE YEAR ENDED 31ST AUGUST 2022
SUMMARY INCOME AND EXPENDITURE ACCOUNT
| Notes Income Donations and legacies 2 Income from charitable activities 3 Income from other trading activities 4 Investment income 5 Total income Expenditure Cost of raising funds 6 Expenditure on charitable activities 6 Total expenditure Net income / (expenditure) & net movements in funds before gains & losses on investments Net gains / (losses) on investments 12 Net movement in funds Reconciliation of funds Total funds, brought forward Total funds, carried forward |
Unrestricted Funds £ - 1,031,464 44,843 34,376 1,110,683 21,186 1,187,455 1,208,641 (97,958) (26,135) (124,093) 5,411,373 5,287,280 |
Restricted Funds £ 21,600 - - - |
2022 £ 21,600 1,031,464 44,843 34,376 |
2021 £ 105,291 682,697 118,735 25,699 |
|---|---|---|---|---|
| 21,600 | 1,132,283 | 932,422 | ||
| - 16,300 |
21,186 1,203,755 |
9,754 1,098,334 |
||
| 16,300 | 1,224,941 | 1,108,088 | ||
| 5,300 - |
(92,658) (26,135) |
(175,666) 111,976 |
||
| 5,300 35,605 |
(118,793) 5,446,978 |
(63,690) 5,510,668 |
||
| 40,905 | 5,328,185 | 5,446,978 |
CONTINUING OPERATIONS
None of the company’s activities were acquired or discontinued during the above two financial years.
TOTAL RECOGNISED GAINS AND LOSSES
No other gains and losses were recognised in the year other than those shown above.
The notes on pages 21 to 33 form part of these accounts.
18
THE THOMAS HEATHERLEY EDUCATIONAL TRUST LIMITED (A company limltod by guarantee) BALANCE SHEET AS AT 31ST AUGUST 2022 Noto8 2022 2021 Flxod assets Tanglble fixed assets Investments 11 12 3.558.314 1.403.237 3.661,407 1.053.380 4.l,s51 4,714.787 Current assets Stocks Debtor8 Cash at bank and In hand 13 14 13.341 23.054 672.671 10.352 131.087 951.682 709.066 1.093.121 Llabllltlg8 Creditots falllro du8 withln one year 15 1342.432} (360,930> Net curren¢ assets 366.634 732.191 Net assets 5 328.185 S,446,978 The fund• of the Charlty Unr8Stricted funds: General Designated Re8tricted funds 16 16 16 4.218,772 1.068,508 40.905 4,325,971 1,085.402 35,605 Tolal charlty fvnds 5.328.185 5,446,978 These accounts were approved and authorIs Kssue by the Board of Dr8Ctors and Trustees on 151 March 2023 and were signed on ils behalf by.. Christopher Penn (Chalrnian) Company Number 00977615 Th8 notes on pages 2110 33 fom parl of these aux)unis. 19
THE THOMAS HEATHERLEY EDUCATIONAL TRUST UMITED (A company Ilmlted by guarant¢èl STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31ST AUGUST 2022 2022 2021 Net cash generated from l used in op&rdtlng actlvltles 63.213 29,984 Cash flows from investlng acthiltle8 Dividend and Interest income Purchase of tangible fLxed assets Purchase of investments Additions lo I wlthdrawals from cash hdd wtthln investsnents 34.376 16081 {376.607) 615 25,699 {2,4781 {13,5731 678 Cash provlded by Invgsling a¢tivities 342,224 10.326 Increase In cash & cash oquivalents in the year 279,010 40.310 Cash & cash equivalents al the beglnning of the year 951,682 911,372 Total Gash & cash equiva19nts at the end of the year 672.672 951,682 Reconclllation of nat movement In funds to net cashflow from op8Tating xtivltle8: 2022 2021 Nel movement in funds Add back depreciatk)n Deduct dlvldend and interest income from investments Deduct gains l add back losses on investment Dedud galns l add back105ses on dispo of red assets Decrease l (incmse) in stock De¢rease l (increase) in debtors Increase l (decrease) in creéitors {118,7931 103,701 (34,3761 26,135 163.69J) 105,014 125.699) {111,976) (2,989> 108,033 (18,498) (1,8711 {1 D1.9661 230,172 Net Gash generated from l used in operating activitios
THE THOMAS HEATHERLEY EDUCATIONAL TRUST LIMITED (A company limited by guarant891 NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31ST AUGUST 2022 ACCOUNTING POLICIES Basls of preparaOn of accounts The financial statements have been prepared in a(x(Ydanc8 wtth Accounting and Reporting by CharleS. Siatemenl of Recornmended Practice applicable to charities preparing theSr accounts in accordance with the Financial Reportsng Standard applicable in the UK and RepLIbl of Irdand IFRS 102) leffe¢tive 1 January 2019}. The Financial Reporting Standard applKable in the UK and Republic of Ireland {FRS 102) and the Companies Act 20tK. Th8 Thoma5 Heatherley Eduixtional Tru5l Limited meets the definition of a pU1C benefit entity unéer FRS 102. The finanal statements are prepared in steding, which is the functional cJJrrency of th8 Charlty. Monetsry amounts in these financial statements ar& rounded lo the nearest £. The accounts (financial statements) have been prepared under the histori c051 convention with Items recognised al Gost or IransaGtion value unless (therwise stated in the relevant nolelsl lo these accounts. Preparatlon of accounts on a golng concem basis The Charty's Financial Statements show net expenditure of £118,793 for the year and free reserves of £660,458. Based on this level of reserves atKI the twstees, proieclions, for the next twefve months the Trustees, believe that the Chartty is a going con¢em. Income Inoome 15 recognised when the Charity has entitlement to th8 funds, any p@rforrnan condltions attached lo ilemls) of IrMe have been meL rt b probable Ihat the incom8 will be rec8ived and amount can b8 measured reliably. (a) Income receNed by way of donatK)F)s and legacies are Induded in fvll in the Slatement of Flnanclal Activities whon recewed, unless they relate to a specified future period, in which case they are deferred. (b} Legacies enlillement is taken a5 the earfEr of the date on which either: the charity is aware Ihal the probate has been granted, the estate has been finalised and notification ha5 been made by the 8xeculor(s) lo the Charity thal the distribution is made, or when a distribution is received from the estate. No leg&ies were reIved during the year. (¢) Income from charitable activates in the form of school fees are recognlsed as earned las the related goods and services are provided) under contract. Fees recewed in advarK* of the subsequent education year are recognised as deferred income until the following year. (d) Shop In¢ome and car parking irm0 is recognised as earned (that 15. as the related gwds or services are p0VIded). (e) Investment income is included when r8ceNatA8. Voluntsers and donated $errflc8s and facllltles Donated professional seNl¢es and donated faulities are recognised as income when the charity has control over the item, any conditions assoryated th Ihe donated item have been met. the receipt (rf economic benefli from the use by the charity of the item is probaNe and Ihal economic ben8fil can be measured reliably. In accordan with the Charities SORP {FRS 102). the general volunteer lime is not recognised and refers to the trustees, annual reFX)rt for more infomialion about Iheir conlribjtion. No such tributionS were received during thè r. On recelpt, donated professional services and donated facilities are retx)gnlsed on the basis of the value of the gfft lo the charity which is the amount th8 charity would have been willing to Pay to otrtain services or flIllIeS of equwalenl economic benefit on the open market- a cwesporKling amount is then recognised in expenditure in Ihe period of lPt. No such donations were receiv8d during the year. 21
THE THOMAS HEATHERLEY EDUCATIONAL TRUST LIMITED IA company limltad by guarantee) NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31ST AUGUST 2022 Expendlturo recognhlon and IrroVerable VAT Expenditure is recognised On there is a legal or constsuctiv8 obligatn lo make a payment to a third p, il Is probable that settlement wlll be required and the amount of the obligatM)n can be measured reliably. Expenditure is Classified under the following activty headings.. (al Cost of raising funds (x)mprises of the costs of running the sh)p and other fundralsing activities their assoGlated support costs. (bl Expenditure on charitable actNilies Indudes the costs directty a5so¢rated wlth running an arts schcol, lo rth8r the purposes of the Charity and their assctkeé supp¢yt (X)51s. Irrecoverable VAT 1$ Charged as a cost against the activty for whh the experKliture was incuffed. Allocatlon of support ¢o$ts Support Costs are those fur)¢tions that asslsl the work of the charity but do not dillY undertake charitable activities. Support ¢o$ls Include ba¢k-office costs. firbance and administratK)n personnel, payroll and govemance (x)$ts whl¢h support the charis programmes arKI activities. These costs have been allocated beeen cost of ralslng funds and expenditure on charitable activities. The basis on which supp)rt costs have been allocated we set out in note 7. Funds structure Unrestricted fijnds are available to spend on liVieS that further any of the purposes of charity. Designated funds are Unrestrict funds of the Charity whth the Injslees have dlded al their discrellon lo set aside to use for a spec purpose. Restricted fvnds are donations which the dor has specifEd are to t soSdy used for particular areas of the Charity's work or f(K spe¢rfi¢ prO1ts Ling undertaken by Ihe Charity. Tanglblo flxgd assets and depr¢¢ialion Tangible fixed assets lex¢luding investmenlsl are staled at Cost l&ss depreciation. The cost of minor additions or tthse costing less than £500 are nol capitalised. Deplation is provided at ral8s calculated to write of the cost valuation of fixed assets, less their estimated reshjual valu8, over their expec18d useful lives on the fdlo%Mro ba5es'. Freehold building5 Fixtures, fittings and equipment Straight lin& over fifty years 25% reducing balan( Investments Investments are a fomi of basic financial instwment and are initially recognised at their transaction value and subsequenliy measured at their far value as al the balance sheet dale using the closing qLted market price. The statement of finanaal activities indudes the nel gains arml k)8ses arising on revalualK)n arKI disFX)sals IhrougFK)Ut the y8ar. Th8 Charity does rK)t a(¥ulre put opuons. derivatives or other complex flnancial instruments. The main form of finala1 risk faced by the charlty is that of volatilty In equlty markets and Investment markets due lo wder economic conditions. the attttude of investors to Investment risK and changes in sentiment conGeming equities and wthin partul2r slOrS or sub sectors. The Council has agre&Y an Investment Policy.
THE THOMAS HEATHERLEY EDUCATIONAL TRUST LIMITED (A company limlted by guarantèè) NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31ST AUGUST 2022 1.10 Reallsed l unreallsod galn$ and10ssgS All gains and Ioss8s are taken to the Statement of FinarKial Activities as they arfse. Realised gains and losses on investments are calculated as the difference between sales proceeds and their opening carrying value or their purchase value rf acquired subsequent to the first day of the financial year. Unrealised gains and losses are calculated as the éiffererKe between the fair value at Ihe year end and their rArrying value. Realised and unrealised investment gains and10sses are combined in the Statement of Financial Activities. 1.11 Stock Stock is included al the lower of cost or net alIsable vatue. 1.12 Cash at bank and In harKI Cash al bank and in hand indudes cash and short lem) cash deposit5. 1.13 Credltors and provlslons Creditors and provlsions are recx)gnised Whe the charity has a Fxesenl obligation resulting from a past event that will probably result in the transfer of funds lo a third party and the amount due lo selue the obligation can easured or eslimaled reliably. Creditors aTrJ provisions are normally reGognised al their selllemonl amount after allowing for any trade discounts due. 1.14 Financial Instruments The Charity only has financral assets and financia liabilitbes of a kind that qualify as basio financial instmments. Bask financial instruments are inits.ally recognised al trans110 value and subsequently measured at their setuemenl value [h Ihe exCeOn of bank loans which are 5ub5equenlly measured al amortised cost using the effective inleresl method. 1.15 Taxatlon The Charlty 18 a regL8tered ¢harlty arKt, Iherefore, is not liable for Income Tax or Corporation Tax on income derived from its charitable activities. as falls Iwthin the various exemplK)ns available lo gIStered charities. 1.16 Ponslon The ¢harty opwates a defined ¢onlribulK)n pension scheme on behalf of its employees. Contributions are charged lo the Stalement of Financial ActDiitss in the perKrfJ in which Ihoy are payable. The assots of the $¢heme are held separately from those of Ihe charity in an independendy administered fund. 1.17 Operating leases The Charity dassffies the lease of copier as an OForating lease. The rentals are charged to the Statement of Financial Activities or¢ a straigh14ine basis over the lease duration. No assets are held under hlre purchase agreements. 1.18 Judgement and key sources of estlmatlon uncertalnty In the application of the company's aCunting tx)licie5. Ihe charty is required to make judgments, eslimales and assumptions aut the carrwng amount of assets and liabllilies that are not readily apparent from other sources. The eslimales and assoclaled assumptions are based on historical experien(x and olher faclors that are considered lo be relevant. Actu81 results may drffer from these estimates. The eslimatss and underlying assumptDns are reviewed on an orsgoing basis. Revisions to accounting eslimales are wognised in the period in which the estimate is revised where the revision affects only that period, or In the period of the revision and future rHiods where the revision affects both current futur6 periods.
THE THOMAS HEATHERLEY EDUCATIONAL TRUST LIMITED {A company limited by guarantoe) NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31ST AUGUST 2022 DONAMONS AND LEGACIES Unrestricted Funds Restricted Funds 2022 2021 The De Lazlo Foundation Golden Bottle Trust Naplhens- M l Hopwood Other donations < £1,000 HMRC Job Retention Scheme Pain18rs Sainers 13,750 10,000 5,000 1,220 75,321 10.OIX) 10,OCN) 1.600 1.600 10.OIy) 21.600 10.000 21.600 105,291 The donations and legacies income in 2021 totalling £75.321 was attributed to unrestrict&J funds and £29.970 was attributed lo reStted funds. INCOME FROM CHARITABLE ACTivmES Unrestricted Funds 2022 2021 SC1 fees 1,031,464 1,031,464 1,031,464 1,031,464 682,697 682,697 In¢ome from ¢harhable activities in 2021 tolalling £682,897 5 attributed to Unrestr1&1 funds. INCOME FROM OTHER TIiADING ACTIVMES Unreslrlcted Funds 2022 2021 Shop income Car parklng fees Other income In$urartt Claim recelpt Klln Flring Income 25,329 6,825 781 11,373 535 25,329 6,825 781 11.373 535 12,472 3,427 102,352 44,843 44.843 118,735 The other trading income In 2021 totslllro £16.383 was attrIted lo unrestrioted funds. Abovo insurawe daim receipt Indudes a Imjsiness interruption daim of £11,373 (2021 £97,125) receivgd from Hiscox.
THE THOMAS HEATHERLEY EDUCATIONAL TRUST UMITED (A company limFted by guarantee) NOTES TO THE ACCOUNTS FOR THEYEAR ENDED 31ST AUGUST 2022 INVESTMENT INCOME Unreslrfcted Funds 2022 2021 Interest on cash deposits Dlvidenés 7,092 27,284 7,092 27,284 12,126 13,573 34,376 34,376 25,699 Th8 investment Inu)me in 2021 totdling £25,699 was attributed to unrestricted funds. ANALYSIS OF EXPENDITURE Ralslng Funds Schogl Outr8ach 2022 2021 Staff wsls Bursaries and prizes Other direct costs Premises and g]uipment Costs Depreciation Advertising, promotion and proSp[uS Shop purchases Fundraising ¢osls Investment management costs SupFX)rt costs (Note 7) Governance costs (Note 7> 498,94S 35,275 41,600 187,688 94,513 19,395 8.950 126 678 209,587 11,331 33,194 66.720 156.486 93.782 26.666 33,194 66,720 156,488 93,782 26,668 19,891 19,891 1,295 248,253 14.150 248.253 14,150 21,186 1,203,755 1,224,941 1,108,088 Of the £1,224,941 expenditure in 2022 12021 - £1.108,088), £1,208,641 was chard to unr8strlcted fiJnd8 12021- £1,079,788) and £16.300 to restricted funds (2021- £28,300).
THE THOMAS HEATHERLEY EDUCATIONAL TRUST UMITED (A mPanY limited by guarantee} NOTES TO THE ACCOUNTS FOR THEYEAR ENDED 31ST AUGUST 2022 ANALYSIS OF SUPPORT AND GOVERNANCE COSTS The Charity initially Klentifw the costs of its supwl functions. It then identifEs those (x)sts whkh relate to the governance function. Govemance costs and other SUPFXJrt (xjsls are apporboned separately be(w8en charity's key activities undertaken (see note 6) in the yew. Al the neral support and governance cosls have been apportioned io th8 variws charitable activities on the basis of staff tlme allocated to each activity- General support Govemancé function 2022 2021 Finance and administration staff costs Management staff Premises costs D8preatioll Communication costs Infornation t8chnology Insurance Bank charps Legal and prof8ssional costs Bad debts Sundry costs Audit fees 138,950 138,950 5.198 17,387 9,914 11,074 16,975 11,221 12,931 21,648 5,370 5,135 6,600 115,220 3.818 20.854 10,501 9,127 13,844 10,474 10.493 17.485 5.198 17,387 9,914 11.074 16.975 11,221 12,931 19.2 5.370 5,135 2.352 2,502 6.600 6.600 262,403 26
THE THOMAS HEATHERLEY EDUCATIONAL TRUST LIMITED {A company lirnited by guarantee) NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31ST AUGUST2022 NET INCOMEI(EXPENDITURE) FOR THE YEAR This is stated after charging.. 2022 2021 Depreciaik)n of langlble fLxed assets Operating16ase- copier Auditors, remunerath)n- audit of financiqi statements 103,701 7,214 105,014 3.982 ANALYSIS OF STAFF COSTS, TRUSTEES REMUNERATION AND EXPENSES, AND COST OF KEY MANAGEMENT PERSONNEL STAFF COSTS 2(r22 2021 Salaries National Insurance Pension 706,328 37,997 9,240 626,165 32.347 7,699 No employee 1Ved remuneratTron in excess of£60,IJJO during the year. No Trustee received any remuneration durlro the year {2021 £nil). No Trustees received reimbursed 8xpenses during the year12021- £nil). The key management rsonnel of the ¢harity comprise the Prinapal, Director of Studies, Course Director (Diploma in Portraiture) and Co-ordinator (Prinlmaknng). Tr total employee beneffts of the key management personnel of the charity were £82,640 {2021- £78,133). 10. STAFF NUMBERS The average monthly number of 51aff employed. calcjjlated as full time equfvalenl, durlng the year was as follows: 2022 2021 Management Direct staff Administrative and support 26 23.5 The average number monthly employees during the year as 75 (2021- 641. 27
THE THOMAS HEATHERLEY EDUCATIONAL TRUST LIMITED (A company limited by guarantee> NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31ST AUGUST 2022 11. TANGIBLE FIXED ASSETS Freehold Fixtures, Interest In land flttings and and buildings equlpmont Total Cost: As al 1 September 2021 Additions Di8posa18 4.956,822 101.858 608 5.058,680 608 As at 31 August 2022 4,956,822 102,466 5,059,288 Depreciation: As al 1 September 2021 Dlsposals Charge for the year 1.313.049 84.224 1,397,273 3.141 103.701 As al 31 August 2022 1,412,1 88.784 1,500,974 Net book value: As al 1 Sepleinber 2021 3,643,773 17,634 3,661,407 As at 31 Aust 2022 3,544,632 13.681 3,658,313 In addition to the freehold interest in building included above, the Charity also owns land at Christiania Wharf Wds gifted from The Royal Borough of Kensington and Chdsea and has been valued at £nil in the Financial Statements, due to a permanent restrictive covenant against anything other than art educatal use, which was imposed UFK)n the transfer of laThJ. 28
THE THOMAS HEATHERLEY EDUCATIONAL TRUST LIMITED IA company limhed by guarantee} NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31ST AUGUST 2022 12. INVESTMENTS 2022 2021 Quoted Investments Market valuo, brought fOard Addltlons Unrealised galn l (loss) Market value, cthed fowdrd 1,050,574 376.607 (26,135> 925,025 13,573 111,976 1.401.046 1.050,574 C4sh held as part of p)rtfolN) 2.191 2,806 Total investments 1.403,237 1,053,380 HlsioriG wsl 1.243.298 866.691 Market value analys¢d by type of itwestmorts: 2022 2021 UK Equltes UK bonds Forelgn equitt88 Forei9n tx)nds Gdd and gold equities Illiquid stratsgi&s and optlons Mutti-asset furK18 H8dg& funds Property Commoditie5 Other Cash held within the Investmgnt pwtfoi Market value as at 31 August 2022 134.812 187.275 508.147 232.884 73.601 80.144 10.070 9.286 46.567 36.221 21.603 62,626 1.403.237 102.830 188,038 312.129 202,521 72,551 79.000 4,069 3,598 15,597 10,238 8,750 54,059 1,053,380 13. STOCK 2022 2021 Shop stock 13,341 10.352 13,341 10,352
THE THOMAS HEATHERLEY EDUCATIONAL TRUST LIMrrED IA company limited by guarant80} NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31ST AUGUST 2022 DEBTORS 2022 2021 Trade Debtors Other Debtors Prepayment and acc*ued Income 1,491 14,076 7,487 11.551 112.494 7.042 23.054 131087 15. cREDoR5. anounts falllng due wlthln ¢)n¢ yoar 2022 22,841 9,395 288,486 2,650 19,060 342,432 2021 15.793 5.663 268,686 2.154 68,634 360,930 Trade Creditors Taxation and sooial se(xJrity Deferred Incomg {mte 181 Other credit5 Accruals 16. MOVEMENT IN FUNDS Balanc• at 01.0921 Gainsl Balan (losses) Transfers at 31.08.2' Income ExndItUre R95tricted funds.. Prizes Fund Bursary Fund 1,600 8,148 32,757 27,557 14.800 35,605 21,600 16,300 Unroslrfcted funds: Designated funds Bursary Fund Bulldlng Maintenance Fund New Building Fund 87,286 255.CK)O 743.116 16.894 70,392 255,0 743,11 1,085,402 4,325.971 1.110.683 16.894 1.191.747 1,068,508 4,218,772 G8n8ral funds 126,1351 Total Unrestricted Funds 5,411.373 1.110.683 1.208,641 26,135 5,287,280 5,328,185 Total funds 5,446,978 1,132,283 1.224.941 26,135
THE THOMAS HEATHERLEY EDUCATIONAL TRUST LIMITED IA company limited by guarantee) NOTES TOTHE ACCOUNTS FOR THE YEAR ENDED 31ST AUGUST2022 Movomant In funds- pr8vlous year Balance at 01.09.20 Galn Balance {lossesl Transfers at 31.08.21 In¢om¢ Expenditure Restrlcted funds: Priz93 Fund Bursary Fund 8,898 25,037 33,935 1.450 26,8SO 28,300 8,048 27,557 35.605 29,370 29,970 Unrostrlctsd funds: Designated funds Bursary Fund Building Maintenance Fund New 8uilding FurKI 94,261 255,000 743,116 8.975 87,286 255,000 743,118 1.092,377 6,975 1,085,402 G8neral funds 902,452 1,072,813 111.976 4,325,971 Total UnrestrKted Funds 5.476.733 902.452 1,079,788 111,976 5,411,373 Total funds 5,510,668 932.422 1,108.088 111,976 5,446,978 31
THE THOMAS HEATHERLEY EDUCATIONAL TRUST LIMITED (A comparby limited by guaranteo) NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31ST AUGUST 2022 16, MOVEMENT IN FUNDS {Continued) D¢rIptIon, naturo and purpose of re8trlcted fund8: Prlzo Fund., Funds roceived to provide prlles. Bursary Fund.. Funds r1Ved to provide prizes. Dgscrlptlon, naturo and purpose of unrestricted fund8: Gongral funds: General ftjnd represents fiJnd$ avallabl8 to spend al the discretion of the Trustees after allowing for all the designated funds. Purposos of Designated Funds: ursary Fund This fund was initially Sel up to a&siqt wth the provision of at least two bursaries per year lo talented sludenl$ who would otherwise be unable to afford lo atteThY the Diploma Courses,. due to an increase in demand for bursary assistall and lo ena0 us to fulfil our charilablo rol8 as a provider of art education it Is approprlate to signrfunuy increase the level of D8siqnated Burs Funds with a vrew to offering al least six bursarfes a year for the next five years. Trustees and staff are currently seeking major ndIng from potential sponsors to enable such increases lo be maintained. Bulldlng Malntenance Fund: The SdKl moved into a new purpose built building at 75 Lots Road in 2Q08 and the Tru$lees have de¢ide(i lo create a desvJnaled School Mairrterance Fund lo provide for major upkeep and repairs to the building. The School Building Manager has prepared an estimate of cost5 for essentlal major fubJre building ¢o$ts to plant and equipment and upkeep such as replacing plant arKI equipment as becomes ob501ete. New Bullding Fund: In order to fulfil the sChVs charitable aims and better lo meet increasing demands on art education. the Trustees have considered the scope lo extend the capacity of its facilities. Extant plans prepared in 21K)8 for the building of a thiré floor studlo would provide for additional classes. Tho cost of such extension is considerable and the Trustees would seek sponsors lo match funding contributed by the Sch(M)I on an as yet lo be defined basi5. The estimated total o)sts of proposed new studios are £3,CN)O.000. 17. ANALYSIS OF FUND BALANCES BEfwEEN NEf ASSETS General Deslgnated Restrlcted Total Tangible fix8d assets Investments Net rrent assets 3.558.314 3,558,314 1,403,237 366,634 1,403,237 334.729 40,5 4.218.772 1.068.508 5,328,185 Analysis of fund balances between nel assets- prevlous year General Deslgnated Restrlcted Totsl Tanglble ed aets Investments Nel Current assets 3.661.407 3,661,407 1,053,380 732,191 1,053,380 32,022 35,605 4,325.971 5,446,978 32
THE THOMAS HEATHERLEY EDUCATIONAL TRUST LIMITED (A company Ilmlted by guarantee) NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31ST AUGUST 2022 18. DEFERRED INCOME 2022 2D21 Balance as at 1st September Amount released lo income in the year Amount defeffed in the year 268,686 (268.686 288,486 88.757 188,7571 268,686 Balance as at 31 st August 288,486 268,686 D6ferred Income represents fee income fty 202W23 reIVed in advance. 19. OPERATING LEASE COMMITMENTS The charfty has operallng lease ¢0mMments as SI¥)7 below. Equlpmgnt 2022 2021 Under one year Two lo fNe years 3,934 3.934 3,934 7,869 7,869 11,803 20. PENSION The penslon ¢ost charge represents ntrIbUtionS payable by Ihe lo the fijnd and amounted to £9,240 (2021 - £7.699). ConlribulKsns lotalling £1.95512021 - £1.321) were paYae lo the fund al the year and are IndLKled in creditors. 21. SHARE CAPITAL The company Is limlted by Jjaranlee and does not have a share capital divlded by shares. 22. MEMBERS, LIABIUTY The company is limited by wararrtee and the members each uTrJertake to contribute an amounl not exceeding £1. 23. RELATED PAR TRANSACTIONS Detalls ot transactions with trustees and senbr management are in Th)te g.