THE THOMAS HEATHERLEY EDUCATIONAL TRUST LIMITED (A company limited by guardntee) DIRECTORS, AND TRUSTEES, REPORT AND ACCOUNTS FOR THE YEAR ENDED 31ST AUGUST 2024 Company No: 00977615 Charity No: 312872
THE THOMAS HEATHERLEY EDUCATIONAL TRUST LIMITED (A company limited by guarantee) REPORT AND ACCOUNTS CONTEKrs Page Directors, and Trustees, Report 3-13 IndependentAuditorfs Report 14-16 statsment of Financial Activities 17 Balance Sheet 18 Statement of cash flows 19 Notes to the Accounts 20-32
THE THOMAS HEATHERLEY EDUCATIONAL TRUST LIMITED (A company limited by guarantee) DIRECTORS, AND TRUSTEES. REPORT FOR THE YEAR ENDED 31ST AUGUST 2024 The trustees are pleased to present their annual directors. report together with the financial statements of the charity for the year ended 31 st August 2024, which are also prepared to meet the requirements for a directors, report and Companies Act purposes. The financial statements compty with the Charities Act 2011. the Companies Act 20J6, the Memorandum and Articles of Assocsation, and Accounting and Reporting by Charities.. Statements of Recommended Practice applicable to charities preparing their accounts in accordan with the Financial Reporting Stsndard applicable in the UK and Republic of Ireland (FRS 102) (effectiV8 1 January 2019). OUR PURPOSE AND ACTIVITIES The enduring objective of the Charity is to offer a public benefrt through the promsion of education in the visual arts at the Heathedey School of Fine Art. The Charity was founded in 1969 and incorpor*d in 1970. It has had control of The Heatherfey School of Fine Art since 1974, which is one of the oldest, and now one of the few mainIng ful independent Art Schools in England. Its primary objective, to paraphrase its Memorandum of Association (22.2.77), is to advance education in the visual arts, by the teaching of drawing, painting. sculpture, design. print-making and associated visual arts and crafts. From the earliest days of the founding of the school in 1845. our teaching has been centred on a strong belief in the value to the artist of learning how to see. We provide a thorough grounding in methods of working from direct observation basing early study on the primary Sour of the human figure. portrart and natural objects. Students of Painting, Drawing, Sculpture. Ceramics and Printmaking explore the context of ideas within which they will build a personal language and develop the technical skills they require. The pattem of study offered by Heatherleys has all but dis4peared from mainstream colleges in the State Sector. We offer a portfolio of full and part time courses in direct response to the clear public demand for constructtve and supportNe teaching in the skills and disciplines of Fine ArL Full lime Diploma Courses are offered for those who wish to develop a career or to enrich their practice. Part time courses are structured to inlrcduce and develop the skills and interests of students who may construct their own menu from over 30 courses. Experienced tutors ar8 all artist practitioners and many are graduates of the Royal College of Art or The Slade. We offer a creative learning 8nvironment lo our student communty whatever their age, background or range of abilty. Vlthilst thé School is mindful of its responsibility to mainlain adequate Building Mainlenance Funds, the core activty of the school is to provide an education in the visual arts to students. and in so far that this is possible, by means of additional fee-paying students and a Bursary Fund to make this education accessible to talented but disadvantaged students. Funds are set aside for this purpose and Ihe charity is looking actively towards raising further funds specffically to exiend this Bursary programme. Achievement and actlvltles The mission of the school is to promote academic excellence and an education in the Fine Arts for all. We are commltted to making our Diploma and Part tlme courses accessible to a diverse student population. Accessible Learning We are commltted to making our Diploma and Part time courses accessible to a diverse student demogrnphic. Heatherleys offers full and part time courses in Fine Art to students with a variety of needs. Our stud8nt demographic represents a wide range of ages. social and cullurdl background and ethnic diverstty. We are noted for the strong sense of friendty communty which is fostered within the school, promotes a constructive approach to leaming and is an important support to students wh8n they lewrfe.
THE THOMAS HEATHERLEY EDUCATIONAL TRUST LIMITED (A company limited by guarantee) DIRECTORS, AND TRUSTEES, REPORT FOR THE YEAR ENDED 31ST AUGUST 2024 We enGourage and respect the participation in our courses of all adutt age groups from any background, whether they are preparing for professional practice as artists or exploring and developing their crealivty on a part time basis. We do this by providing a range of part time day and evening courses. offering beginners flexible and accessible choic8S for entry level tuilion. Day, evening and weekend courses provide an accessible introduction to the Fine Arfs for adum students of all ages and levels of ability. They may choose to use this programme as a pathway to further leaming or simply enjoy and benefit from the range of possibilrties available to the amateur enthusiasL Structured Diploma courses in Portraiture and Sculpture, directed by Minna Stevens and Tony Mott respectively, offer two years of intensive study to those who wish to develop a career in art. Sculpture Diploma Graduates may choose to continue their studies in an electrve Post Diploma year. The Post Diploma in Figurative Painting, coordinated by Fred Crayk. is a one year programme offered to students who have completed H8ath8rl&y's Diploma in Portraiture or an equivalent degrée course in painting. Students are provided with OprtUnItieS for further personal development as they make the transition to independent studio practice. Students Each year students are supported so that Ihey may be qualified for a career in the arts or to appty for courses in further and higher education for which they might not otheTwise have been 81igible. In an era of fluctuating and unsettled employment prospects, Heatherleys attraGt5 8 number of mature students who are drawn to our vocational courses as a means of developing or changing career pathways. The charity has helped a number of students to rediscover an earlier unfulfilled vocation in art and design. or to t&e initial steps inlo a new field after another career. On leaving Younger students may seek further qualifications on conpletion of a Diploma course at Heatherfeys, for instance by continuing their studies elsewhere on BA degree courses in Fine Art. Altemativety diploma graduates may choose to complete a further year of Post graduate study in erther sculpture or painting at Heatherleys. Their high calibre has been marked by the regular acceptance of our graduates Master of Arts degree courses at universities such as at the Royal Co15e9e of Art and Universty of the Arts London. Diploma Courses are structured so that they equip students with the practical skills and understanding nessary for professional practice. This to an extent that is not nomialty found in mainstream art schools these days. Graduates of the school are enabled to eslablish thernsees as exhibiting artists in painting. sculpture and printmaking. Many graduates of the Diploma in Portraiture choose to bec(yne professional portrait painters working to public or private commissions. On leaving the school, Diploma graduates may gain professional employment in a variety of arts relata areas including exhibf(icn preparation and curation, educational programmes. arts promotion and technical production such as making scenery and props for film production and theatrical companies such as at the Royal Opera House, London. Accredited Education Heatherleys has accredited status awarded by the British Accreditation Council. Accreditation undedines academic eXlLenCe to intemationally accepted stsndards and promotes student confiden in our independent instftution. The Council demands that our building and facilities meet the highest standards of H8alth and Safety, and that we subject our courses to ntinuOuS review. By means of a system of staff appraisals and class observations, we ensure our teaching staff and course programmes are of the highest quality so that we are able to fulfil student expectations. First awarded in 2017. the schcM)l Underg regular interim inspections and a fvll inspecticn every four years before our accredited status is formally newed. Our accredrted status was fomially renewed after full inspection in January 2024.
THE THOMAS HEATHERLEY EDUCATIONAL TRUST LIMITED IA company Ilmlted by guarantee) DIRECTORS, AND TRUSTEES, REPORT FOR THE YEAR ENDED 31ST AUGUST 2024 Flnanclal Support Each year we offer financial support to a number of students who are talented but financially disadvantaged (often younger ones) so that they may benefrt from the figurative art education which is provided by Heatherleys. The school has created a Bursary Fund, setting aside sch(x)I funds lo provide financial assistsnce For Diploma course sludents who would othemise be unable to afford fees for this -year course. Bursaries are awarded each year for this purpose. The John Walton Student Support Fund is available to help Diploma studenls already in receipt of a Bursary but who find themselves in unforeseen drfficulties. They may apply for help with travel. living expenses or buying course materials so that they are able to continue with their studies. We have Ihe enthusiastic supp)rt of Patrons and our Board of Trustees who are working to increase the level of support we can offer financially disadvantaged students. Wth their help in approaching donors. charitable trusts and foundations. we have been able to attract spons¢xship for students who rt otkEry4ise afford our fees. We are grateful to a number of sponsors, including the IPlor5hipful Company of Painler Stainers, the De Laszlo Foundation and Worlds End StudK)s, have donated funds to be used to support our deseTving students in their studies or upon graduation. Stud8nt Welfare The school has an important therapeutic function for some of our students. Although highw creatrve, they may be challenged by dTfficuliies which are temporary or permanent and rang8 from depression or bereavement to autism or include physical problems such as mobilty or hearing loss. Our modem building is purpose designed and equipped so that studios and facilf(ies are fully accessible for those with physical disabilities. Unsupported, these issues may interfere with the demands of an education in art and could lead to the abandonment of a course. As a smaller scale academic communty. are able to help those who mwJht otherlvtse struggle to learn in a larger, more impersonal university setting. They have been able to achieve their potential at Heather18ys, enhance the quality of their lives and develop careers in a broad range of arts related activities. Heatherleys has develcp8d and advertises our firm policy of inclusion for disadvantaged students and under-represenled minority groups. We welcome a diverse range of studenls who, although faced with physical or mental health difficulties or challenged by issues contsming identty, can fulty enjoy and benefit from our teaching. In 2023124 we continued our support for students whose leaming was disadvantaged due to physical disability or issues of mental health or identity. Our Student Support Offer. Diana Horton, worked with dass tutors in order to identify and include students who required individual support. She was able to guide tutors to an understanding of the particular challenges an indiwdual student might face so that they would be better equipped to help Ihem with their leaming. Diana is a personal connectton for students. offering direct practical assistance and emotional support on a range of levels. Wrth this help they are able to achieve their potential by completing courses which they might not otheThvise have been able to sustain. For instance. sh8 enabled a student with impaired colour vision to use digital support that could help with observational painting. We organised a stimulating programme of open discussion and awareness for Diploma students studying Portraiture which was themed around questions of diversty and identity. School policies communicate our commitrnent to support those who need tt (for instance, Equal Opportunities, Safeguarding and Leaming Support). Policies are regularty rewewed, published on our website and available in hard copy at accessible information points within the school.
THE THOMAS HEATHERLEY EDUCATIONAL TRUST LIMITED (A company limited by guarantse) DIRECTORS, AND TRUSTEES, REPORT FOR THE YEAR ENDED 31ST AUGUST 2024 Outreach and support We activew seek opportunities to benefft the public and have developed a series of rewarding partnerships btheen Heatherley and our local communty, including nearby schcKsls and hospitals. These partnerships are a powerful way to promote communty spirit and social cohesiveness. Our links with local schools enable us to encourage the creativity and confidence of young people in a variety of inrtiats"ves. We created opportunities to invite and involve members of the public in a range of erfents at Heatherleys, for example We invfted our k)cal communty to view exhibitions organised by the school in our Conservatory Gallery. These includ8d the work of part time and Diploma and Post Diploma students, staff exhibitions and the work of visiting professional artists. Our annual Diploma stlents, Exhibition has become a popular annual event and we were delighted to be able to share and celebrate the achievements of our graduating studenls with th8 general public. We invited the general public to attend art history ledures alongside our own students. Talks gtven by experts in our school library are free of charge and attract interest from all over London.. We maintain close connections w"r(h the young people of Ical Chelsea Academy School who are invited to participate in Printmaking sessions held for them in our specialised studios. A group of sixth Fomi Academy students and their teacher were invited to view and discuss the works in our annual Staff exhibition. Healherleys sponsored a range of public prizes and avRrds in order to acknowledge achievement and to encourage aspiring and emerging artists attempting to develop a care8r in the Fine Arts. Societies supported by the schwl during 202Y24 included the Royal Watercolour Society, the Society of Portrait Sculptors and the Chelsea Art Society. Our support for societies ass¢xiated with the National Federation of British Artists also included the Royal Institute of Painters in Ivatercolour. the Pastel Society and the New English Art Club. We enwuraged Ihe creativty of young people by sponsoring local photography competition 'A Day in the Lrfe',dDnating thr educational opportunty of 'hands on, sessions in our Printmaking studi¢. We actively support somé of Britain's major arts societies who share our charitable aims by offering the use of our specialised studio facilities. The Pastels Society organised vacation workshop sessions at Heatherleys We offered studio use to the Chelsea Arts Club to hoid weekly life drawing classes for their local artist members. We hosted a Masterclass long weekend for the S[ety of Portrait Sculptors. Future Activities We are determined to respond to the requirements of the those seeking an education in the Fine Arts based on fundamental skills and technical disciplines. We continuously enhance the quality of our courses in order to do this. In 2024r25 we will continue to monitor developments in educational. social and financial spheres in order to supply a programme of opportunities r8levant and responsive to the needs of th8 public. Forward Plannlng: we will review and update strategic planning targets in the light of tha changing economic climat8 which affects the circumstances of our students and may limit their opportunty to aCsS our courses. Qualty control: we will consolidate and expand our programme of staff appraisals, class observations and student feedback so that we mairrtain our reputation for academic excellence. Supportlng our staff: we will continue to support our teaching staff in their professional development, offering them opportunities to exhibit their work to the public and to their students in our Conservatory Gallery and promoting their achievements by means of Social Média. Support5ng our students.. VR will promote the help our Student Support Officer is ab18 to offer so that students may access the support available. Outr8ach: we will look for new opportunities to share our skills and facilities wÈth local communty groups who may not be able to access regular courses.
THE THOMAS HEATHERLEY EDUCATIONAL TRUST LIMITED (A company limited by guarantee) DIRECTORS, AND TRUSTEES, REPORT FOR THE YEAR ENDED 31ST AUGUST 2024 Communlcation: our marketing team will seek to create a strong Social Media profile in order to share the lively creativity and ethos of our school community with the public. We will also focus on the d8sign and development of an engaging new website whh will present the opportunities for full or part time education offered by our courses lo intending students. Selected Student and Alumni Achievements We are ayS delighted to hear from alumni who are successfulty developing their creative careers. many of whom were selected to show their work in prestigious exhibitions nationally and in London during 2023124. Exhibitors at the Ruth Borchard Self Portrait Prize Exhibition included Heatherley's alumni Martin Burroughs, David Weekes, Eve Petttt. Steven Colover. The Exhbition was held at The Atkinson Museum in SoLrthport, SeptemberlDecember Sculpture Diploma Graduate Annie Trevorah exhibited in New Wave.The exhibition is part of Vvhitechapel Gallery first Thursdays. Julylseptember Alumna Sarah Jane Mcon took part in Artwave. a lebratiOn of the arts over three weekends at Lewes in East Sussex. September. 18 Sculpture Diploma alumni and current students presented a tsvo day ethibition of their work in the Chapel at Brcmpton Cemetery in Fulham. The show was held as part of the annual Open Weekend celebrations. October. Alumna Sarah Jane Moon showed her paintings as part of an ASC Open Studio event at her studio in Brixton. November. Alumna Christina NiederbeTger showed her painting in 'Small is Beautrful, an exhbrtion at the Flowers Gallery London. November. Sculpture Diploma alumna Jeanie Gibbs exhibited in the group show, 'If You're Lost, This Is Vvhere You Can Be Found,. This exhibition presented painling and sculpture by invited emerging artists 8Songside students from the Royal College of Art. November. The Helen Wilson Prize for a painting by an Open Studio student was awarded to Patrick Waldron in December. Sarah Jane Moon showed her paintings in the Interrupt Art Exhibition at the Undercroft Gallery in Ncrwich. February. Portrait Diploma student Jose Moura exhibiied paintings at the Bulmar Gallery, London. February 2024. Anthony Connolly, President of the Royal Society of Portrait Painters, also invrted Jose to show his work at the Society's annual exhibrtion. March. First year Portrart Diploma students, Tiffany Mak and Isabella Murphy. yre invited to show their work as part of the Young Peoples. I nitiative at the Society of Women Artists. Portrait Diploma alumna. Rachel Parker, has been appointed VI president of the Society of Women Artists. Kaycon Anderson, Portrait Diploma alumna, has been made a member of The Contemporary Bntish Portrait Paint8rs' CollectiV8. A number of Haathedey's students and alumni. including David N8wens, Hero Johnson and Bemadette Timko were chosen to exhibit their paintings in this years, Royal Society of British Artists Annual Exhibition at the Mall Galleries. Portrait Diploma alumnae Natalia Glinoer and Evelyn Hong were both award winners. Februaryl March. Portrait Diploma student Jose Moura was awarded a place on the Masters of Art course in painting at City and Guilds School of Art, London. May. Annis Booker and Gina Kutyla were each selected by the Worshipful Company of Paint8r Stain8rs, to r8ceive bursaries awards enabling them to complete a year of Post Diploma Study at Heatherley's in 2024125 July.
THE THOMAS HEATHERLEY EDUCATIONAL TRUST LIMITED (A company limited by guardntee) DIRECTORS, AND TRUSTEES. REPORT FOR THE YEAR ENDED 31ST AUGUST 2024 Overview As a small school we are able to communicate easily with our students and respond quickty to their changing needs. Aware that the economic climate has continued to challenge our students we intrc4Juced a choice of some shorter, affordable part time and taster Courses so that students who were unable to commit to our regular pattem of e1Ve- week temis could continue their studies. We were able to support S¢Nne financk911y disadvantaged Post Diploma students with Bursary assistance. Flexible study options for post graduate sculpture students meant that we were better able to support these students in making the transition from full time study to independent careers. Despite economic concerns, assessment advisors report that our graduating Diploma and Post Diploma students continue to achieve consistently high academic standards in the work exhibited for final assessment. We were delighted to hear that. after a full and rigorous inspection by the British Accredttation Council, Heatherley's has once again been awarded full Accreditation. recc•Jnised nationally arKI International as an acknowledgement of academic excéllénce. GDPR We implement the requirements of the Data Protection Act (May 2018) ensuring that the confidential data we collect is safeguarded and secure. We communicate the ways we use, protect and store data. publicising our legally approved Data Protection Policy by means of Heathetleys. website. Public benefit statement In shaping our objectives for the year and planning our activities, the trustees have considered the Charity Commission's guidance on public benefrt, including the guidan 'public benefit: running a charity (PD2). The achievements and activities above demonstrate the public benefft arising through the Charity's activities. FINANCIAL REVIEW The Acxounts show a deficit fcr the year ended 31st August 2024 of £131,586 (2023 - £208,841 deficit), this is after including a depreciation charge on the school building at 75 Lots Road of £99,141. The financial position at the year- end revealed by the Balance Sheet on page 18 shows net current assets or working capital of £811,120 (2023- £875,581). The net book value of tangible fixed assets held all of which are used directly for charitable purposes, amounled to £3,357,761 {2023 - £3,456,476). The market value of investments were £810,377 (2023 - £787,487). We are an independent college, solety reliant upon student fees to finance our operations and any surplus income is invested tc provide a return that will replenish our bursary fund which enables students to benefrt from reIving 8 Fine Art education they otheNise may not have had an opportunity to sludy. Principal Funding Sources Principal funding sources are donations and income from student fees. Fundralslng standards The charity is not registered with the Fundraising Regulatcf and has not carried out any significant fundraising activities.
THE THOMAS HEATHERLEY EDUCATIONAL TRUST LIMITED (A company limited by guarantee) DIRECTORS, AND TRUSTEES. REPORT FOR THE YEAR ENDED 31ST AUGUST 2024 Investment powers and policy Under the Memorandum and Articles of Association, the charty has the power to make any investment which the trustees see fit. The trustees have considered the most appropriate policy for investing funds and have detennined that a mix of investments to generate income combined with cash deposits to ensure Ihat we can meet our requirements. The trustees have determined to maintain the most appropriate policy for investing fiJnds is to: a) invest with Ruffer LLP and maintsin some funds on deposit with Charities AKI Foundation (CAF) in conjunction wtth Scottish Widows Plc. b) ensure sufficient funds are held in deposit and current accounts to provide for working capital requirements. Roserves policy The Trustees have established a policy whereby the reserves of Ihe charity are maintained at a level to enable the continued operation of its actNtties. It is the policy of the Trustees to maintain free reserves at a level equtvalent to at least six months running costs to enable the Charity to meet its obligations in the short tem together with funds to cover any unforeseen deficits or revenue shortfalls. In setting th policy the Council of Trustees takes account of the following factors.. 1 Staff contr8Cts: maximum peric(l of notice for staff contracts is three months. The schcM)I has long-serving staff and this affeds the maximum amount of sLitutory redundancy payable. 2 Commitments" The school has contracts with maintenance companies to ensure the safe use and maintenance of lrfts, equipment and the upkeep of the sctK)oI. Six months running Costs are calculated on the basis of projected expenditure. wrth no allowance made for projected income. The tsr9et reserves amount fixed by The Thomas Heatharley Educational Trust Ltd is £823,382. The unrestricted funds not deSnated or invested in tangible fixed assets held by the charity are £767,847 (2023 - £790,364). As at the year*nd accounts showed reserves of £4,987.58 (2023 - £5,119,544) of vthich £55,305 {2023 - £52,855) was restricted. In addition. the Trustees have set aside designated funds totalling £798.345 (2023 - £819,849) for four specific purposes.. a designated Bursary Fund. a designated Building Fund and a designated School Development Fund and a Building Development Fund. Bursary Fund This fund was initially set up to assist with the provision of at least bursartes per year to grfted students who would otherwise be unable to afford to attend the Diploma Course; due to an increase in demand for bursary assistance and to enable us to fulfil our charttable role as a provider of art education the Trustees hav8 significantly increased the level of Designated Bursary Funds with a view to offering at least six bursaries a year for the next five years. Eight bursaries were awarded in the academic year 2023r24 and the balance of the Unrestr¢1ed Bursary Fund is £77,045 (2023 £89.849) and the restricted Bursary Fund is £43,057 (2023 £43,057). If there is any surplus funds. the Trustees decided in 2016 to replenish the Bursary Fund annually by transferring 60A of surplus income over expendrture before deducting building depreciation to the Bursary Fund wtth a view to sustaining a healthy and vital fund. Building Fund This fund is used to provide for major upkeep and repairs trj Ihe school. there was no movement in this fund for the year to 31 August 2024. School Development Fund This fund has been created to enabl8 the dev81opm8nt of new courses. fund a new website and database. A sum of £8,700 was expended from this fund to create a new website.
THE THOMAS HEATHERLEY EDUCATIONAL TRUST LIMITED IA company limited by guarantee) DIRECTORS. AND TRUSTEES. REPORT FOR THE YEAR ENDED 31ST AUGUST 2024 Building Improvement Fund This fund has been created to provide improvements of energy efficiencies within the school. there has been no movement on this fund for the year to 31 August 2024. Restricted Prize Fund There is also a restricted fund. The Prize Fund, from which prizes are avlarded annually to talented students, the current value of the Prize Fund is £12,248 (2023 - £9,798) The Charity has adequate cash reserves and the trustees believe that the scho)I can fvlfil its day-taY obligations. STRUCTURE, GOVERNANCE AND MANAGEMENT Governing Document I Constitutlon The Thomas Heatherley Educational Trust Limited is a company limited by guarantee and a registered charity governed by rts memorandum and articles of association. The Charity numbér is 312872 and the Company number is 977615. Recruitment and appointment of Trustees As set out in the Articles of Association the chair of the Council of Trustees is nominated by the other trustees. The Directors of the organisation are also the charity trustees for the purposes of chartty law. The Council of Trustees have power to appoint additional Trustees as it considers fit to do so. Th8 Trusl8es have no beneficial interest 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 to contribute £1 in event of winding up. The Council has the power to appoint addrtional Directors. Trustee induction and training The Trustees maintain a good working knowledge of charity and company law and best practise by regukr reading of chartty press articles and scrutiny of Companies House. Charty Commission, other Government and voluntary organisation advisory websites. New Trustees are given copies of the Memorandum and Articles of Association and copies of previous year's minut8s and attend an induction session given by an experienced Trustee. structuro and Management The object of Ihe Charty is to advance visual art education primarily in the figuratNe tradits'on through The Heatherley School of Fin8 Art. The Company is organised as follows: a) The Company is govemed by the Council of Trustees, who are elected annually from the membership of the Company. Trustees are elected. re-elected or retire at the Annual General Meeting of the Company. The Council elects a Chair-person from its number. The Council currently has ten members. All new Trustees are provided with relevant documentation on their ponsIbIlitieS as Trustees. b) All members of the Council give their setvices free of charge. c) Persons interested in the promotion of education in the visual arts, with appropriate backgrounds and qualifications, are inmled by the Trusiees to join the Charity as Company Members. d) The Council meets at least three times a year. Financial and management r8POrts are provided at each meeting. e) The Charity appoints executive ofFicers, the Principal of the School and the Bursar who manages the financial affairs of the Charity. fj The School is directed by the Principal and an Academic Board. 10
THE THOMAS HEATHERLEY EDUCATIONAL TRUST LIMITED (A company limited by guarantse) DIRECTORS. AND TRUSTEES. REPORT FOR THE YEAR ENDED 31ST AUGUST 2024 Organisation The trustees of the company meet temly as a Board. but have alx) set up a range of sugroupS i.e. the Development subcommittee, the Site subcommitte8 and the Articles of Association subcommittee, where the Trustees meet beeen Board meetings. The Chair and Financial & Inveslments subcommittee also meet with the Trustees on a regular basis. It is govemed by the Council of Trustees, which sets the overall fram8work. The principal is the Chief Executive Officer and the members of the-slaff team are then delegated full responsibilty for implementation within this framework. The role and contribution of volunteers During the year no volunteers wére used to support thè work of the paid staff. Staff Hèatherley's prides itself on its dedicated and experienced lecturers and tutors. all of whom are activety practising artists, and many of whom have been with the school Sin the 1970s. In any academic year the number of those teaching will be in the high twenties. The school thus offers them the opportunity to pass on their particular expertise while continuing their own professional practice on a part-time basis. The Academic Board, responsible for the direction of Ihe scht)ol'. Principal: Veronica Ricks MA {RCA) Director of Studies & Course Director, Diploma in Figurative Sculpture: Tony Mott HDFA(Lond) Course Director, Diploma in Portraiture.. Minna Stevens MA {RCA) Cowordinator, Printmaking: Hilary Daltry MA (Rome Scholar) Cwr(finator, Post Diploma in Figurative Painting: Fred Crayk Related Partles None of cur Trustees receives any remuneration or other benefit from work on behalf of the charity. Any ccntractual arrdngement with a related party needs to be dI10$ed. In this financial year there was none to disclose. Pay policy for senlor staff Senior management stsff pay is set with reference to market rates for similar roles within similar sized charities in the sector. The pay of the senior staff members are reviewed and approved by the Board. Risk PolFCy The trustees have a risk management strategy whh comprises: An annual review of the risks the charity may face: The establishment of systems and procedures to mitigate those risks Mlentified in the plan., and The implementation of procedures designed to minimise any wtential impact on the charity should those risks materialise. This work has identified that financial sustainabilty is the major financial risk for the charity, it is imperattve that we sustain our Bursary Fund through fundraising to enable the school to offer bursary assistance to students. Attenlion has also been focussed on non-financial risks arising from fire, health and safety of students and staff. A key element in the management of financiai risk is via a reviewed re*rves policy and the retention of sufficient working capital. 11
THE THOMAS HEATHERLEY EDUCATIONAL TRUST LIMITED (A company Ilmited by guarantee) DIRECTORS. AND TRUSTEES. REPORT FOR THE YEAR ENDED 31ST AUGUST 2024 REFERENCE AND ADMINISTRATIVE DETAILS Company Numb8r: 0977615 Charlty Number: 312872 Directors l Trustees: C Penn (Chairman) P E Driscoll (Resigned 8 May 2024) J Eagle N Gage R Leighton J Murray R Parker (Appointed 9 October 2024) F Christie M Shanks R Sharp Secretsry: Vistra Trust Corrpany Limited Senlor Stsff: Principal: Veronica RkS MAIRCA) Director of Studies.. Tony Mott HDFA Course Director. Diploma in Portraiture: Minna Stevens Co-ordinator. Printmaking.. Hilary Daw MA Co-ordinator, Post Diploma in Figurative Paintbng: Fred Crayk A Bursar is appointed and reports to the Trustees. Registered Office: 75 Lots Road, London SW10 ORN Websit8 . htt s:1fv4ww.heatherle Independent Auditor: SCB (Accountsnts) Ltd, 31 Sackville Street. Manchesler, M13LZ Bankers: Lbyds TSB Plc.. 417 North End Road. Fulharn. London SV46 1 NS Investment managers: Ruffer LLP. 80 Ifictoria Stre8t. London SW1 E 5JL Flagstone Group Lld, Clareville House, 26-27 Oxendon St, London SW1Y 4EL 12
THE THOMAS HEATHERLEY EDUCATIONAL TRUST LIMITED (A company Ilmitsd by guarantee) DIRECTORS, AND TRUSTEES, REPORT FOR THE YEAR ENDED 31ST AUGUST 2024 Trustees, responsibilities in relation to the fjnancial statements The Trustees (who are also directors of The Thomas Heatherley Educational Trust Limited for the purposes of company lawl are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulation. Company law requires the Directors to prepare financial statements for each financial year. Under that law the Directors have elected to prepare the financial stat8ments in accordance with Unrted Kingdom Generally Accepted Accounting Practice (United lfjngdom Accounting Standards and applicable law). Under company law the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of tts income and expenditure for that period. In preparing these financial statements, the Directors are required to.. select suitable accounting policies and then apply them consistentty; observe the melhods and principles in the Charities SORP., make judgements and estimates that are reasonable and prudenc state whether applicable UK Accounts'ng Standards have been followed, subject to any material departures disclosed and explained in the financial statements" prepare the financial ststements on the going conrn basis unless it is inappropriate to presume that the charrf(able company will continue in business. The Directors a responsible for keeping adequate accounting records that are sufficient to show and explain th8 company's transactions and disclose with reasonable accuracy at any time the finanal position of the company and enable them to ensure that the financial statements rnpty with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hen for laking reasonable steps for the prevenlion and d8tection of fraud and other irregularities. The trustees are responsible for maintenants and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. STATEMENT OF DISCLOSURE TO AUDITOR In accordance with company law. the company's Directors certify that: so far as they are aware. there is no relevant audit infomption of which the company's auditors are unaware. and as the Directors of the company they have tsken all the steps that they ought to have taken in order to make themselves aware of any relevant audit infomiation and to estsblish that the Charity's auditors are aware of that information. AUDITORS A resolution will be proposed and agreed at the Annual General Meeting that SCB (Accountants) Ltd be re-appointed as auditors of the Charty for the ensuing year. The report of the directors has been prepared taking advanlage of the small companies, exemption of section 415A of the Companies Act 2006. APPROVAL This report was appmed by the Board and srgned on ts behalf by: Christopher Penn (Chalrman of Trustees) 26th March 2025 13
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE THOMAS HEATHERLEY EDUCATIONAL TRUST LIMITED {A company limited by guarantee) Op5nion We have audited the financial statements of The Thomas Heathedey Educational Trust Limited for the year ended 318t August 2024, which comprise the Statement of Financial Activrties (Summary Income and Expenditure Account), balance sheet, statement of cash flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework tha has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102. The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generalty Accepted Accounting Practice). In our opinion the financial statements: give a true and fair view of the state of the charitabl8 companWs affairs as at 31st August 2024 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended., have been properly prepared in accordance with Untied Kingdom Generally Accepted Accounting Practice. and have been prepared in accordance wrth the requirements of the Companies Act 20C6. 8asis for opinion We conducted our audit in accordance with Internalional Standards on Audrti'ng (UK) IISAS (UK)) and applicable law. Our responsibilities under those standards are further described in the Audtiorfs responsibilities for the audit of the financial statements section of our report. We are iTKlependent of the company in accordance with the ethical requirem8nts that are relevant to our audit of the financial slatements in the UK, including the FRC'S Ethical Standard. and we have fulfilled our other ethical responsibilities in ¥cordance with these requirements. We believe that the audit evidence we hav8 obtained is sufficient and appropriate to provide a basis for our opinion. Concluslons relating to golng concem In auditing the financial statements. VR have concluded that the directors, use of th8 going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, V have not identified any material uncertainties relating to events or conditions that, individually or co118CtNety, may cast significant doubt on the [enttyl's ability to continue as a going concem for a period of at least hyelve months from when the financial statements are authorised for issue. Our responsibilities and the résponsibilities of the directors with respect to going concern are described in the relevant sections of this report. Other infomiatlon The Other information comprises Ihe inforMatn included in the annual report, other than the financial statements and our auditorfs report thereon. The directors are responsible for the other information. Our opinion on the financial statements does not cover the other infomiation and, except to the extent otheiSe explicrtly ststed in our report. we do nol express any form of assuran conclusion thern. In connection with our audit of the financHI statements, our responsibility is to read the other infomiation and, in doing so. consider whether the other infornation is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materialty misstated. If we identfy such material inconsislencies or apparent material misstat8ments, 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 th8 work we have performed. w8 conclude that there is a material misstatement of Ihis other infomiation we are required to report that fact. We have nothing to report in this regard. 14
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF (Conud) THE THOMAS HEATHERLEY EDUCATIONAL TRUST LIMITED (A company limited by guarantee) Op5nions on other mattèrs prescribed by the Companles Act 2006 In our opinion. based on the work undertaken in the course of the audit The information given in Ihe directors, report for the financial year f the financial statements are prepared is consistent with the financial statements= and The directors, report has been prepared in accordance wilh applicable legal requirement Matters on which we a required to report by exception In the light of the knoedge and understanding of the company and its environment obtained in the course of the audit, we have not identrfied material mbsstatements in the directors, repo We have nothing to report in respect of the following ffllerS in relation to which the Companies Act 2006 requires us to report to you rf. in our opinion: adequate accounting records have not been kept or returns adequate for our audit have not been received from branches not visited by us; the financial ststements are not in agreement 1th the accounting records and retums; Gertain disclosures of trustees, remuneration specified by law are not made; wè have not received all the infomiation and explanations we require for our audit", Responslbllltles of directors As explained more fvlly in the directors. rèswnsibllles statements set out on page 11, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such intemal control as the directors detemine is necessary to enable the preparation of financial statements that are free from material misstatem8nt, whether due lo fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to conlinue as a going concern, disclosing, as applicable. matters related to going (#?ern and using the going Concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic altemative but to do so. Audltor's responsibilities for the audit of the financlal statements Our objectives are to obtain reasonable assurance abcxrt whether the financial statements as a whole are free from material misstatement, whether due to fraud or error. and to issue an auditorfs 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 it exists. Misstatements can arise from fraud or error and are considered material if. individualty or in the aggregate, they coukl reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularilies, including fraud, are instances of nonwcomplk3nce with laws and regUlat)n$. We design pr(edureS in line with our responsibilities, outlined above, to detect materHI misstatements in respect of iThegularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below: We gained an understanding of the legal and regulatory framework applieAble to the company and the industry in which it operates. and considered the risk of acts by the company that were conlrary to applicable laws and regulations, including fraud. We discussed with the Directors the policies and prCedureS in place regarding compliance wtth laws and regulations. We discussed amongst the audti team the identrfied laws and regulations. and remained alert to any indications of non-compliance. During the audit we focussed on laws and regulations which could reasonabty be expected to gN8 rise to a material misstatement in the financial statements, including. but nol limited to, the Companies Act 2006, UK tax legislation Charity Act 2011 and SORP 2019. Our tests included agreeing the financial statement disclosures to underlying supporting documenLqtion and enquiries with management. Our produ$ in relation to fraLKI included but were not limited to: Inqui of management whether they have any knowledge of any actual, suspected or al*ed fraud, and discussions amongst the audit team regarding risk of fraud such as opportunities for fraudulent manipulation of financFal statements. We detemiined that the principal risks relat8d to posting manual journal entries to manipuSate financial performance and management bias through judgements in Is
INDEPENDENT AUDrroR'S REPORT TO THE MEMBERS OF (Conud) THE THOMAS HEATHERLEY EDUCATIONAL TRUST LIMITED (A company limited by guarantee) accounling estimates. We also addressed the risk of management override of inlèrnal controls. including testing journals and appropriateness of other entries in the nominal ledger. revi8wing Iransactions around the end of the reporting period,. and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud. Because of the inherent limitations of an audit. there is a risk that we will not deted all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that Complian wth a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-complianc8. The risk is also greater regarding irregularities occurring due to fraud rather than error. as fraud involves intentlonal concealment, forgery, collusion, omission or misrepresenL2tion. A further description of our responsibilities for the audit of the financial statemenls is IcKaled on the Financial Reporting Council's website at www.fr¢.org.uldauditorsresponsibilitie& This description forms part of our auditorfs report. Use of our reF)Ort This report is made solely to the companws members, as a body, in accordance with Chaptar 3 of Part 16 of the Companies Act 2006. Our audri work has been undertaken so that we might state to the company's members those matters we are required to stai8 to them in an auditorfs report and for no Iher purpose. To the fullest e*cent pennitted by law, we do not acc&pl or assume responsibilty to anyone other than the company and the company's members as a body, for our audtt work. for this report. or for the opinions we have formed. Jeffrey Bor FCA (Senlor Statutory Audltor) For and on behalf of SCB (Accountsnts) Ltd CHARTERED ACCOUNTANTS STATUTORY AUDITOR 31 Sackvllle Street Manchester M1312 Date: 0210412025 16
THE THOMAS HEATHERLEY EDUCATIONAL TRUST LIMITED (A company limited by guarantee) STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31ST AUGUST 2024 SUMMARY INCOME AND EXPENDITURE ACCOUNT Unrestricted Restricted Funds Funds Notes 2024 2023 Income Donations and legacies 11.354 14,600 25.954 22.400 Income from charitable actNfties 1.032,495 1,032.495 1,036,531 Income from other trading activities 41,252 41.252 41.943 Investm6nt income 60,965 60.965 58.581 Total income 1.146,066 14,600 1,160,666 1,159,455 Expendlture Cost of raising funds 25,863 25.863 26.888 Expenditure on charitable activities 1.261.287 12,150 1,273,437 1,258,157 Total expenditure 1.287.150 12,150 1,299,300 1,285 045 Net Income l {exp8nditure) & net movements in funds before gains &10sse5 on investments (141.084) 2.450 (138,634) (125,590) Net gainsl (losses) on investmerrts 12 7.048 7,048 (83.051) Net movement in funds (134.036) 2,450 (131.586) (208,641) Reconciliation of funds Total funds, brought foward 5,066.689 52,855 5,119,544 5,328,185 Total funds, carried forward 4,932,653 55,305 4.987.958 5,119,544 CONTINUING OPERATIONS None of the compary's activities were acquired or discontinued during the above two financial years. TOTAL RECOGNISED GAINS AND LOSSES No other gains and lossas were recognised in the year other than those shown above. The notes on pages 20 to 32 fonn part of these accounls. 17
THE THOMAS HEATHERLEY EDUCATIONAL TRUST LIMITED (A company Ilmlted by guarantee) BALANCE SHEET AS AT 31ST AUGUST 2024 Notes 2024 2023 Fixed assets Intangib18 assets Tangible fixed assets Investrnents 11 8,700 12 3,357.761 13 810.377 3.456.476 787.487 4.176,838 4.243,963 Current assets stocks Debtors Cash at bank and in hand 14 15 13,491 26,075 1.092.547 12,042 31,479 1,201,633 1.132.113 1,245.154 Llabilities Creditors falling due within one year 16 {320.993) {369,573) Net current assets 811,120 875,581 Net assets 4,987.958 5,119,544 The funds of the charity Unrestricted funds: General Designated Restricted funds 17 17 17 4,134,308 798,345 55.305 4,246,840 819,849 52,855 Total Charity funds 4,987.958 5,119,544 These accounts were approved and authoris&J for issue by the Board of Directors and Trustees on 2 March 2025 and were signed on its behaw by: i) hrlstopher Penn (Chairnian) Company Number 00977615 The notes on pages 20 to 32 fomi part of these accounts. 18
THE THOMAS HEATHERLEY EDUCATIONAL TRUST LIMITED (A company limited by guarantee) sTATEmEr OF CASH FLOWS FOR THE YEAR ENDED 31ST AUGUST 2024 2023 Net cash oufflow in operating activities {141.240 61,353 Cash flows from investlng activities Dividend and interest income Purchase of tsngible fed assets Addition of intsngible assets Purchase of investments Additions to I withdrawals from cash held wthin Investmts Sale Proceéd of Investrnent 60,%4 (4,269) (8.700) (15.841) 58,581 (964) (23.630) 2,191 554,136 Cash provided by Investlng activities 32,154 590,315 (Decrease)Ilncrea5e in cash & cash equivalents in the year 109,086 528,962 Cash & cash equivalents at the treginning of the year 1,201,633 672,671 Total cash & cash equivalents at the end of the year 1,092.547 1,201.833 Reconciliation of net movement in funds to net Cashflow from operating activities: 2024 2023 Net movament in funds Add back depreciation Deduct dividend and interest income from investments Deduct (gains) l add back losses on investment (Increase)Idecrease in stock Decreasel(Incre8se) in debtors (Decrease)Ilncrease in creditors (131.586) 102,983 (60,965) (7,048) (1.449) 5,405 (48.580) (208,641) 102,803 (58,581} 83,051 1.299 (8.425) 27.141 Net cash ouffiow In operating activiti8S 141.240 61,353 19
THE THOMAS HEATHERLEY EDUCATIONAL TRUST LIMITED (A company limited by guarantee) NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31ST AUGUST 2024 ACCOUNTING F>OLICIES Basis of prepardtion of accounts The financial statements have been prepared in accordan with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), The Financial Reporting Stsndard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. The Thomas H8atherley Educational Twst Lirnited meets the definits.on of a public benefft entity under FRS 102. The financial statements are prepared in sterling. which ts the functional currency of the Charity. Monetary amounts in these financial statements are rounded to the nearesl £. Tha accounts (financial statements) have been prepared under the historical cost convention wrth items recognised at cost or transaction value unless othenNise stated in the relevant note(s) to these accounts. Preparation of accounts on a going concern basis The charity's Financial Statements show a net deficit of £131,586 (2023 - deficit £208.eA1) for the year, total res8rves of £4,987,958 (2023- £5,119,544) and free reserves of £767.847 (2023 - £790,364). The Trustees have assessed whether the use of th8 going concern basis is appropriate and have considered possible events or condrlions that might cast signifunt doubt on the abilty of the charty to conlinue as a going concem. Trustees will continue to monitor and ensure spending to be done in line with incorne in order to maintain target level of reserves. The review of cashflow for 12 months from the date of approval of the financial statements. the associated assumptions that underpin ti, secured new income and the steps that Could be tsken to reduce expenditure should this be necessary. Based on the 1nfomatit above, the Trust8es have a reasonable expectation that the charity has adequate resources to continue in operation for the foreseeable future and will remain surplus in future periods. Therefore, the trustees have adopted the going Concern basis in preparing these accounts. Income Income is recognised when the Charty has entitlement to the funds, any performanc8 condttions attached to the item(s) of income have been met, rt is probable that the income will be reiVed and amount can be measured reliabty. (a) Income reiVed by way of donations and legacies are included in fijll in the Statement of Financial Activities when reived. unless they relate to a specified future period. in which case they are deferred. {b) Legacies entrtlement is tsken as the earlier of the date on which etther.. the charity is awar8 that the probate has been granted, the estste has been finalis8d and notification has been made by the executor(s) to the Chanty that the distribution is made. or when a distribution is reIVed from the estste. No legacies Vre recewed during the year. (c> Income from charitable actrvates in the fomi of school fees are recognised as earned (as the relaled gcods and seNi¢es are provided) under contract. Fees received in advance of the subsequent education year are recognised as deferred income until the following year. (d) Shop inrne and car parking incom8 is recognised as eamed (that is, as the related goods or services are provided). (e) Investment income is included when receivable. 20
THE THOMAS HEATHERLEY EDUCATIONAL TRUST LIMITED (A company limited by guarantee) NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31ST AUGUST 2024 Volunteets and donated services and facilities Donated professional services and donated facilrties are recognised as income when the charity has control over the itern, any conditions ass(xiated wrth the donated rtem have been met, the receipt of economic benefit from the use by the charity of the item is probable and that economic benefil can be measured reliabty. In accordance with the Charities SORP (FRS 102). the general volunteer time is not recognised and refers to the trustees, annual report for more informaticm about their contribution. No such ojntributions were received during the year. On reiPt, donated professional seniices and donated facililies are recognised on the basis of the value of the gift to the charty which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefrt on the open market" a corresponding amount is then recognised in expenditure in the period of recéipt. No such donations were received during the year. Expenditure recognitlon and irrecoverable VAT Expenditure is recognised once there is a legal or constrUctre obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the Dbligation can be measured reliabty. Expenditure is Classified under the following activty headings: (a) Cost of raising funds comprEes of the costs of running the STrp and other fijndraising activities and their assc¢iated support costs. (b) Expenditure on charitable actwities includes the costs directty aSslated vAth running an arts school, to further the purposes of the Charity and their associated support costs. Irrecoverabl8 VAT is charged as a cost against the activty for which the expenditure was incurred. Allocation of support costs Support costs are those functions that assist the of the charity but do not directly undertake charitable activities. Support costs include back-office costs. finance and administration personnel, payroll and governance costs which support the charity's programmes and activili8s. These costs have been allocated beeen cost of raising funds and expenditure on charitable activities. The basis on which support ci)sts have been allocated are set (Xrt in note 7. Funds structure Unrestricted funds are available to spend on acttvities that further any of the purposes of charity. Designated funds are unrestricted funds of the Charity which the tnEtses have decided at their discretion to set aside to use for a specrfic purpose. Restricted funds are donations which the donor has specified are to be solely used for particular areas of the Charity's work or for specific projects being undertaken by the Charity. Tangible fixed assets and depreclatlon Tangible ftxed assets (excluding investments) are slated at cost less depreciation. The cost of minor additions or those costing less than £500 are not capitalised. In accordance with SORP, the charty does not adopt a policy of revaluation of fre8hold land and buildings. Depreciation is promded at rates calculated to write off the cost or valuation of fixed assets, less their estimated residual value, over their expected useful lives on the following bases.. Freehold buildings Straight line over fify years Fixlures, frttings and equipment 25% reducing balance 21
THE THOMAS HEATHERLEY EDUCATIONAL TRUST LIMITED (A company limited by guarantee) NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31ST AUGUST 2024 Investments Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price. The statement of financial activities includes the net gains and losses arising on revaluation and disposals throughout the year. The Charity does acquire put options. denvatives or other complex financial instrum8nts through investment manager. The main fonn of financial risk faced by the charity is Ihat of volatility in equty markets and investrnent markets due to wider economic conditions, the attitude of investors to investment risk, and changes in sentiment Conceming equities and within particular sectors or sub sectors. The Council has agreed an lrniestment Poliw. 1.10 Reallsed l unrealised gains and losses All gains and losses are taken to the Statement of Financial Activiti8s as they arise. Realised gains and losses on investments are calculated as the difference beiween sales proceeds and their opening carrying value or their purchase value rf acquired subsequent to the first day of the financial year. Unr8alised gains and losses are calculated a5 the diff8rence between the fair value at the year end and their carrying value. Realised and unrealised investment gains and losses are combined in the Statement of Financial Activities. 1.11 Stock Stock is included at the lower of cost or net realisable value. 1.12 Cash at bank and In hand Cash at bank and in hand includes cash and short temi cash deposits. 1.13 Creditors and provlslons Creditors and provisions are reccMJnised where the charity has a present obligation resulting from a past event that will Probab result in the transfer of funds to a third paty and the amount due to S8tt18 the obligation can be measured or estimated reliably. Creditors and provisions are normally ognISed at their settlement amount after allowing for any trade discounts due. 1.14 Financial instrurnents The Charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instrumenls are initialty recognised at transaction value and subsequenlly measured at their settlement value wrth the exception of bank loans which are subsequentty measured at amortised cost using the effective interest methryj. 1.15 Taxation The Charity is a registered charity and. therefore. is not liable for Income Tax or Corporation Tax on income derived from ts charitable activities, as it falls within the various exemptions available to r&gistered charities. 1.16 Pension The charity operates a defined contribLrtion pension scheme on behalf of its employees. Contributions are charged to the Statement of Financial Activities in the period in which they are payable. The assets of the scheme are held separately from those of the chaiity in an independently administ8red fund. 1.17 Operatlng leases The Charity classifies the lease of copier as an operating lease. The rentals are charged to the Statement of Financial Activities on a straighl-line basis over the lease duration. No assets are held und@r hire purchase agreements. 22
THE THOMAS HEATHERLEY EDUCATIONAL TRUST LIMITED {A company Ilmlted by guarantee) NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31ST AUGUST 2024 1.18 Critical accounting estimates and Judgements In the application of the company's accounting policies. the charity is required to make judgments. estimates and assumptions about the carrying amount of assets and liabilities that are nct readily apparent from other sources. The estimates and associated assumptions are based on historical experience and oth8r factors that are considered to be relevant. Actual results may drffer from these estimates. The charty makes estimates and assumptions concerning the future. The resU'ng accounting estimates will. be definition, seldom equal the related actual results. The estimates and assumpt ions that have a significant risk of causing a material adjustment to the carrying a mounts of assets and liabilities within the next financial year are addressed below. (i) Useful economic lives of tangible assets The annual depreciation charge for tangible assets are sensitive to changes in the estimated useful economic lives and residual values of th8 assets. The useful economic lives and residual valu8s are re-assessed annually. They are amended when neSsary. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the rèvision affects both cuent and future periods. (iii) Allocation of shared cost betsveen muftiple activities Support costs relate to those functions that assist the of the Gharity but do not directly relate to charitable activities. Support costs include finance. payroll. premise and govemance costs which support the Charity's programmes and actrvities. These costs have been allated between cost of raising funds and expenditure on charitsble adivities. All the general support and governan costs are allocated to activities at different percentages. on the basis of staff time relating to each activity- DONATIONS AND LEGACIES Unrestricted Funds Restricted Funds 2024 2023 The Oswald Savage Memorial Fund Ralph Cobham The Linbury Trust Paint8rs Sainers Golden Bottle Trust Other donations < £1.000 11,354 11.354 2,000 1,500 10,000 2,000 1,500 10.000 10,000 10,000 2,400 22,400 1.100 14,600 1,100 25,954 11,354 The donations and legacies income in 2023 tolalling £22.400 vtss attributed to restricted fijnds. INCOME FROM CHARITABLE ACTIVITIES Unrestricted Funds 2024 2023 School f*s 1,032,495 1,032,495 1,032,495 1,036,531 1.036,531 1,032,495 Income from charitable aciivrties in 2023 totalling £1.036,531 was attributed to unrestricted funds.
THE THOMAS HEATHERLEY EDUCATIONAL TRUST LIMITED (A company limited by guarantee) NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31ST AUGUST 2024 INCOME FROM OTHER TRADING ACTIVITIES Unrestrfcted Funds 2024 2023 Shop income Car parking fees Other income Kiln rfng Income 32.094 5,942 32,094 5,942 34,112 7.040 206 585 870 870 41,252 41,252 41,943 The other trading incomè in 2023 totaifing £41.943 VRS attributed to unrestricted funds. INVESTMENT INCOME Unrestrtcted Funds 2024 2023 Interest on cash deposits Dividends 45.124 15.841 45,124 15,841 17,639 40,942 80.965 60,965 58,581 The investment income in 2023 totalling £58.581 was attributed to unrestricted funds. ANALYSIS OF EXPENDITURE Raising Funds School Outreach 2024 2023 Staff costs SubGontract Models cost Bursaries and prizes Other direct cost Premises and equipment costs Depreciation Advertising, promotion and prosFECtus Shop purchases Investment management costs Support costs (Note 7) Governance costs (Note 7) 476,130 86,553 36,308 59.380 178,723 92.685 476,130 86,553 36,308 59,380 178,723 92,685 34,344 25,863 477,938 89.715 40.993 64,810 169,770 92,888 19.739 25.597 1,291 281,335 20,969 25,863 291.114 18.200 291,114 18.200 Of the £1,299.300 expenditure in 2024 (2023 - £1,285.045). £1.287,150 was charged lo unrestricted funds (2023 - £1,274,595) and £12.150 to restricted funds (2023 - £10,450).
THE THOMAS HEATHERLEY EDUCATIONAL TRUST LIMITED (A company limited by guarantee) NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31ST AUGUST 2024 ANALYSIS OF SUPPORT AND GOVERNANCE COSTS The Charty initially identifies the costs of its support functions. It then identiftes those costs which relate to the governan function. Governan costs and other support Costs are apportioned separately between charity's key activities undertaken (see note 6) in the year. All the general support and govemance costs have been apportioned to the varbous charitable adivities on the basi5 of stsff time allocated to each activity. General support Gov8mance function 2024 2023 Finance and administratK)n stsff costs Management staff Premises costs Depreciation Communication costs Infomiation technology Insurance Bank charges Legal and professional costs Bad debts Sundry costs Audit fees 189,390 189,390 8,766 19.858 10,298 10,062 19,947 15.493 17.654 5,455 913 4,278 7,200 170.573 8,692 18,863 9,914 11.903 14,998 14.148 15.784 25,877 8.766 19,858 10.298 10,062 19,947 15,493 17,654 3.221 913 4,278 2,234 4,652 6,900 7.200 25
THE THOMAS HEATHERLEY EDUCATIONAL TRUST LIMITED (A company limited by guarantee) NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31ST AUGUST 2024 NET INCOMEI(EXPENDITURE) FOR THE YEAR This is stated after charging: 2024 2023 Depreciation of tangible fixed assets Operating lease- copier Auditors, remuneration- audrt of financial slatements 102.983 3.584 102,803 3,S34 ANALYSIS OF STAFF COSTS, TRUSTEES REMUNERATION AND EXPENSES, AND COST OF KEY MANAGEMENT PERSONNEL STAFF COSTS 2024 2023 Salaries National Insurance Pension 671.287 45.066 11.383 666.895 40,066 11.076 718 037 No employee reiVed remuneration in excess of £60.000 during the year. No Trustee received any remuneration durirKJ the year (2023 - £nil). No Trustees reiVed reimbursed expenses during the year (2023- £nill. The key managemeni personnel of the charity comprise the principal, director of studies, course director {diploma in portrditure) and co-ordinator (printmaking). The total employee benefits of the key managèment Personnel of the charity were £89,458 {2023 - £87,316). 10. STAFF NUMBERS The average monthty number of staff employed, calculated as full time equivalent, during the year was as follows: 2024 2023 Management Direct staff Administrative and support 12 12 19 19 The average number monthly employees during the year was 42 {2023 - 45). 26
THE THOMAS HEATHERLEY EDUCATIONAL TRUST LIMITED (A company limited by guarantee) NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31ST AUGUST 2024 11. INTANGIBLE ASSETS Intanglble Assets Total Cost: As at 1 September 2023 Addytions Disposals 8,700 8,700 As at 31 August 2024 8.700 8,700 Amortisation: As at 1 September 2023 Disposals Charge for the year As at 31 August 2024 Net book value: As at 1 September 2023 As at 31 August 2024 8.700 8,700 Nota . No amortisation is charged at year end as website is under development 12. TANGIBLE FIXED ASSETS Freehold Fixtures, interest in land rIng$ and and buildings equipment Total Cost: As at I September 2023 Additions Disposals 4.956,822 103.430 4,269 5.C60,252 4,269 As at 31 August 2024 4.956,822 107,699 5,064,521 Depreciation: As at 1 September 2023 Disposals Charge for the year As at 31 August 2024 1,511,331 92,445 1.603.776 99,141 3,842 102,983 1.610,472 96,287 1,7(A 759 Net book value: As at 1 September 2023 3,445,491 10.985 3,456,476 As at 31 August 2024 3.346,350 11,412 3,357,761 In addition to the freehold interest in building included above, the Charity also owns land at Christiania Wharf was gifted from The Royal Borough of Kensington and Chelsea and has been valued at £nil in the Financial Statements. due to a permanent restrictive covenant against anything oth8r than art educational use, which VRS imposed upon the transfar of the land. 27
THE THOMAS HEATHERLEY EDUCATIONAL TRUST LIMITED (A company limited by guarantee) NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31ST AUGUST 2024 13. INVESTMENTS Fixed asset investments are Mana on a discretionary basis as segregated portfolios by the charty's investment managers. The investment assets (including cash held for investment purposes) are held with the overall intentior) of retaining them for the long4em (namely, as fixed assets) for the continuing benefit of the charity in the form of income and capital appreciation. Consequently. this note does not shcrn the movement of individual investment transactions executed by the investment manager wÉthin their portfolio. Instead. the movement in the value of the portFolio is analysed to show new funds introduced to or funds wthdrawn from the portfdio, together with revaluations reflecting changes in market values. 2024 2023 Quoted investments Market value, brought forward Additions Disposals Unrealiséd gain l (loss) Market value, carried forbvard 787,488 15,841 1,401,046 23,629 (554,136) (83,051) 7,048 810.3TI 787,488 Total investments 810.377 787,488 Historic cost 697,773 681,932 Market value anatysed by type of investments: 2024 2023 UK Equttes UK bonds Foreign equities Foreign bonds Multi-assets fund Commodities Gold and gold equtties Cr8dit and derivative strategies Cash held within the investment portfol Market value as 8t 31 August 78,606 40,519 173.421 79,417 250.406 16,208 66.451 103,728 1.621 62,212 165,373 58.274 165,373 151,985 22.050 44,099 103,161 14,962 787,488 810,3TT 14. STOCK 2024 2023 Shop stock 13,491 12,042 13,491 12,042
THE THOMAS HEATHERLEY EDUCATIONAL TRUST LIMITED (A company Ilmlted by guarantee) NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31ST AUGUST 2024 15. DEBTORS 2024 2023 Trade Debtors other Debtors Prepayment 305 20.630 5,140 10,066 14,457 6,956 26,075 31,479 16. CREDITORS: amounts falllng due wlthln one year 2024 24,485 5,992 266,017 2,736 21,763 320,993 2023 15.714 7.153 323,768 2,417 20,521 369.573 Trade Creditors Taxation and social security Deferred Income (note 19) Other cr8ditors Accruals 17. MOVEMENT IN FUNDS Balance at 01.09.23 Gainsl (losses) Transfer3 Balance at 31.08.24 Income Expenditure Restricted funds: Prizes Fund Bursary Fund 9.798 43,057 4,600 10.000 2,150 10.000 12.248 43,057 52,855 14,600 12,150 55,305 Unrestricted funds: D88ignated funds Bursary Fund Building maintenan Fund School Development Fund Building Improvement Fund 89,849 600,000 50,000 80,000 819,849 11.354 4.246.840 1.134.712 11,354 24.158 77,045 6,000 41,300 80,000 798,345 4,134,308 8,7CM) 32,858 1.254.292 General funds Total Unrestricted Funds 5,086.889 1.146.oe6 5,119.544 1.160.666 1.287,150 1.299,3 4,932,653 4.987,958 Total funds 29
THE THOMAS HEATHERLEY EDUCATIONAL TRUST LIMITED IA company Ilmited by guarantso) NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31ST AUGUST 2024 17. Movement in funds- prevlous year Icontinuedl Balance at 01.09.22 Gainsl (losses) Transfers Balance at 31.08.23 Income EXpendIre Restslcted funds: Prizes Fund Bursary Fund 8,148 32,757 40,905 2.11YJ 20,3 22.4C(I 450 10,0 10,450 9,798 43,057 52,855 Unr8Stricted funds: Designated fvnds Bursary Fund Building Maintenance Fund School Development Fund Building Improvement Fund New Building Fund 70.392 255.000 30,543 50,000 345.000 50,000 80,000 (743.116) (218,116) 89,849 600,000 50,000 80,000 743.116 1,068,508 30,543 819,849 General ftjnds 4,218.772 1.137,055 1,244.052 (83,051) 218,116 4,246,840 Total Unrestricted Funds 5,287.280 1,137,055 1.274.595 83.051 5,066,689 Tota] funds 5,328.185 1,159,455 1,285,045 83.051 5,119,544 Description. nature and purpose of restricted funds: Prizè Fund: Funds received to provide prizes. Burnary Fund: Funds received to provide prizes. Description, nature and purpose of unrestrfcted funds: General funds: General fund represents funds available to spend at the discretion of the Trustees after allowing for all the designated funds. Purposes of Deslgnated Funds". Bursary Fund This fund was initially set up to assist with the provision of at I1 0 bursaries per year to talented students who would otherwise be unable to afford to attend the Diploma Courses", due lo an increase in demand for bursary assistance and to enable us lo fulfil our charitable role as a provider of art education it is appropriate to significantly increase the level of Designated Bursary Funds with a view to offering at least six bursaries a year for the next five years. Trustees and staff are currently seeking major funding from potential sponsors to enable such increases to maintained. Building Maintenance Fund: The School moved into a new purpose built building at 75 Lots Road in 2008 and the Trustees have decided lo create a designated School Maintenance Fund to provide for major upkeep and repairs to the building. The School Building Manager has prepar8d an estimale of costs for essenlial major future building costs to plant and equipment and upkeep such as replacing plant and equipment as it becomes ob501ete. 30
THE THOMAS HEATHERLEY EDUCATIONAL TRUST LIMITED (A company limited by guarantee) NOTES TO THE Accouwrs FOR THE YEAR ENDED 31ST AUGUST 2024 Descrlptlon, nature and purpose of restricted funds (continued): School Development Fund . In previous year Irustees proposed the creation of Ihe 'Schcol Development Fund. from Ihe New Building Fund. aimed at developing courses, funding a new website, and database. with a sum of £50,000 transferred in previous year. In current year £8,700 was expensed. 8uilding Improvement Fund . In previous year trustees proposed Ihe creation of the 'Building Improvement Fund, from the New Building Fund. This fund is designed to provide improvements in energy efficiency within th8 school. such as solar panel installations. New Building Fund.. In order to fulfil the School's charitable arms and better to meet increasing demands on art education, the Trustees have considered the scope to extend the capacty of its facilities. Extant plans prepared in 2008 for the building of a third floor studio would provide for additional classes. The cost of such extension is considerable and the Trustees would seek sponsors to match funding contributed by the School on an as yet to be defined basis. The estimated totsl costs of proposed new studios are £3.000.000. In previous year trustees proposed the reallocation of the 'New Building Fund, as this fund is redundant. given that the school no longer wishes to 8Xt8nd its studio space. 18. ANALYSIS OF FUND BALANCES BETWEEN NET ASSETS General Designated Restricted Total Intangible assets Tangible fixed assets Investments Net current assets 8,700 3.357.761 12,032 755,815 8,700 3,357,761 810,377 811,120 798,345 55,305 4 134 308 4 987 958 Analysis of fund balances between net assets- previous year General Designated Restricted Totsl Tangible fixed assets Investments Net current assets 3,456.476 (32,362) 822,726 3.456,476 787,487 875,581 819,849 52,855 819849 5,119,544 19. DEFERRED INCOME 2024 2023 Balance as at 1 st September Amount released to income in the year Amount deferred in the year 323,768 (323.7881 266.017 323.768 (323,768) 323,768 Balan as at 31st August 266,017 323,768 Deferred income represents f88 income for 2024r25 received in advance. 31
THE THOMAS HEATHERLEY EDUCATIONAL TRUST LIMITED (A company limited by guarantee) NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31ST AUGUST 2024 20. OPERATING LEASE COMMITMENTS The charity has operating lease commitments as shown below. Equlpment 2024 2023 Under one year to five years 8,317 29,801 3,934 38,118 3,934 21. PENSION The pension cost charge represents contributions payable by the chanty to the fund and amounted to £11,383 <2023 - £11,076). Contributions totalling £1.352 (2023 - £1,551) were payable to the fund at the year end and are included in creditors. 22. CAPITAL COMMITMENT 2024 2023 Contracted but not provided for in the financial statements 17,400 Capital commitment is f Website development 23. SHARE CAPITAL The company is limited by guarantee and d08s not have a share capitsl divided by shares. 24. MEMBERS, UABILITY The company is limited by guarantee and tIE EMberS each undertake to contribute an amount not eXeding £1. 25. RELATED PARTY TRANSACTIONS Detsils of transactions with trustees and senior management are in noté 9. 26. ULTIMATE CONTROLLING PARTY The charity was under the control of the Board of Trustees throughout the year. 32