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2023-03-31-accounts

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Charity Registration No. 800143

Company Registration No. 2150619 (England and Wales)

ARTSWORK LIMITED

TRUSTEES' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

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ARTSWORK LIMITED TRUSTEES REPORT FOR YEAR ENDED 31 MARCH 2023

Legal and Administrative Information

Trustees Norinne Betjemann (appointed May 2016) Fiona Parkinson (appointed May 2016) Dr Emma Dyer (appointed February 2017) Jason Jones – Hall (appointed December 2018) Wanjiku Nyachae (appointed December 2020) Jayanti Shah (appointed March 2022) Chair N Betjemann Chief Executive L Govier Secretary S Warwick Charity number 800143 Company number 2150619 Registered office MAST Mayflower Studios 142 - 144 Above Bar Street Southampton SO14 7DU Auditors Fiander Tovell Limited Stag Gates House 63/64 The Avenue Southampton S017 1XS Bankers Unity Trust Bank Plc Nine Brindley Place 4 Oozells Square Birmingham B1 2HB Santander UK Plc Business and Corporate Banking Operations Bridle Road Bootle Merseyside L30 4GB Triodos Bank UK Deanery Road Bristol BS1 5AS Contact Details info@artswork.org.uk / www.artswork.org.uk

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ARTSWORK LIMITED

CONTENTS

Page
Trustees report 1 - 16
Independent auditor's report 17 - 19
Statement of financial activities 20
Balance sheet 21
Statement of cash flows 22
Notes to the financial statements 23 - 37

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ARTSWORK LIMITED TRUSTEES REPORT FOR YEAR ENDED 31 MARCH 2023

The Trustees present their report and financial statements for the year ended 31 March 2023.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity’s Memorandum and Articles of Association, the Companies Act 2006 and the Statement of Recommended Practice, “Accounting and Reporting by Charities”, issued in March 2005, subsequently updated with effect from January 2019 (FRS 102).

Introduction

At Artswork we strive to make the arts and creativity available to absolutely everyone. We aim to break through barriers and develop new ways for people to discover the success, empowerment and sheer joy that the arts and creativity can bring to classrooms, communities and careers.

Imagine if... all our children were happy and confident, strong in their sense of self and the world that they live in.

Imagine if... every child – irrespective of race, background, wealth, identity or ability - felt valued, heard and represented.

Imagine if... we gave them all the opportunity to explore and fulfil their potential in a future that we are all making together.

Imagine if... we kept a sense of wonder, creativity and learning throughout our lives.

The Artswork team works regionally, nationally and internationally to make these aspirations a reality.

Chair’s Statement 2022/23

Our mission to empower children and young people through the arts and to support those who work with them has never been stronger. I’ve highlighted below just some of the achievements of the last year.

Our Portsmouth Creative Skills programme, designed to equip care-experienced young people with life and employability skills, was in its 5th year. We were especially pleased to invite a former participant, who had attended his first drumming workshop with the Virtual School of the scheme, to co-deliver a drumming workshop with his original mentor. He is now enrolled on a music course at college. Another participant reworked Portsmouth Guildhall’s Comic Con event logo to include LGBTQ+ colours and the revision was adopted by Guildhall for use in their event promotion.

This year Arun Inspires created opportunities for young people to creatively reimagine their towns and localities. Their work was professionally showcased through a number of exhibitions and included a sculptural reimagining of Bognor Regis town centre built out of paper, card and the children and young peoples’ photos. In another project, the civic Christmas tree in Littlehampton was decorated with artworks made by local children. Later

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in the year, the Easter trail was described by the local Traders partnership as “the most impactful art trail ever run in the town”.

In our partnership with West Sussex Clinical Commissioning Group, the selected artist consulted extensively with the nursing team, with the Children in Care Council and attended key events for looked-after children. They developed My Health Appointment – a dynamic age-appropriate resource that uses creativity to combat a vital health inequality for looked-after children by supporting them in a playful and child / young person-oriented way. The tool was launched in Arun and then made available to all Sussex looked-after children and promoted across national networks through the CCG. This project was shortlisted for the Nursing Times Award for Children’s Care 2022 and we look to its future development in 2023/24.

The Peer Action Collective is a programme equipping young people to make their communities safer, fairer places to live. It is funded by the Youth Endowment Fund, the #iwill Fund (a joint investment between The National Lottery Community Fund and the Department for Culture, Media and Sport) and the Co-op Group. 2022/23 saw us deliver phase one of this innovative programme with consortium partners Unloc and Youth Options to enable young people to take the lead in designing and conducting research into their peers’ experiences of violence and become changemakers in their communities. This led to a report and film of the work of all the young people involved and examines the learning from their research and the impact of some of the social action projects which were undertaken in the region.

Throughout the year Arts Award remained a key tool to inspire and facilitate young people as creative or cultural leaders. 10,416 certificates were awarded across all levels including 119 Gold, which is equivalent to A level.

As an Arts Council England Bridge organisation we supported sixteen Cultural Education Partnerships (CEPs), bringing together arts and cultural organisations with other partners such as health, criminal justice, education and the youth sector to deliver quality experiences for children and young people. We also delivered a programme of training and development sessions for CEP members and fostered communication between CEPS.

Our Artswork Professional Development programme has grown exponentially, delivering a range of courses including, for instance, Creative Consultation and Child Protection. Not only does this strand of our work support sector professionals, but it also offers Artswork an income generation stream.

The close of 2022/23 marked our official transition from being an Arts Council Sector Support Organisation to being a National Portfolio Organisation. This is an extremely exciting development for Artswork and necessitated a reshaping of our structure and staffing roles. Sadly, we’ve had to say good-bye to some hugely talented, creative and committed individuals, all of whom I am confident will continue to carry the banner of creativity, diversity and inclusion into their next roles. I thank them, as well as the staff who remain with the organisation and those who have joined Artswork, for all they have done in the quest to improve the lives of children and young people through the arts and creativity.

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I also thank Arts Council England for its continued support as well as funders not previously mentioned: Arun District Council, Department for Education, Department for Work and Pensions, and the Police & Crime Commissioner for Hampshire & the Isle of Wight.

Norinne Betjemann Chair

Artswork Trustees 2022/23

The trustees, who are also the directors for the purpose of company law, and who served in the year were:

Norinne Betjemann (appointed May 2016) Rick Hall (appointed September 2004) (Resigned 5 December 2022) Fiona Parkinson (appointed May 2016) Dr Emma Dyer (appointed February 2017) Jason Jones – Hall (appointed December 2018) Harley Russell (appointed December 2019) (Resigned 5 December 2022) Victoria Edwards (appointed February 2020) (Resigned 24 December 2022) Wanjiku Nyachae (appointed December 2020) Jayanti Shah (appointed March 2022)

Artswork Leadership Team 2022/23

Louise Govier – Chief Executive (appointed August 2020) Sarah Warwick – Chief Finance Officer Annabel Cook – Deputy Chief Executive Donna Vose – Head of Budgets, Contracts & Policy Ruth Taylor – Strategic Manager Richard Beales – Strategic Manager Lucy Marder – Strategic Manager

See full Artswork team: https://artswork.org.uk/about-us/staff-trustees-trainers/

Artswork’s Aims, Objectives and Activities

The trustees have paid due regard to guidance issued by the Charity Commission on public benefit on deciding what activities the charity should undertake.

At Artswork we believe in the power of the arts and creativity to:

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 Enable and inspire expression for everyone

At Artswork we strive to make the arts and creativity available to absolutely everyone. We aim to break through barriers and develop new ways for people to discover the success, empowerment and sheer joy that the arts and creativity can bring to classrooms, communities and careers.

We achieve this through:

The objectives of the charity are to promote, maintain, improve, and advance public education, appreciation and understanding of youth arts. The charitable company continues to explore new ways of improving provision for children and young people in creative activities.

Public benefit aims

Public benefit is at the heart of what Artswork does. In the fifth year of our current business plan, Artswork is delivering its mission through the following key public benefit aims:

  1. Lead and strengthen arts and cultural engagement with children and young people.

  2. Recognise, facilitate and lead the development of opportunities for work-based learning, employability and entrepreneurship.

  3. Enhance expertise, skills, knowledge and understanding of the arts and culture in work for, with and by children and young people.

  4. Build and facilitate cross-sector partnerships between those working in the arts and culture and those working with children and young people.

  5. Collect and share evidence of good practice and success stories.

  6. Actively promote networking, partnership and collaboration.

  7. Practice effective governance, leadership and management of Artswork.

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We deliver our aims through a range of strategic programmes:

Trustees monitor performance on a quarterly basis and measure this against key performance indicators, budget allocation and spend.

The Year in Numbers

During 2022/23, Artswork:

A full summary of activities and achievements is contained in the Appendix to this report.

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Financial Review 2022/23

Artswork's income in the financial year 2022/23 decreased moderately compared to 2021/22. This was due to a reduction in funds received to deliver the Kickstart Employment Programme. The Youth Endowment Funded Peer Action Collective research programme received more income than the previous year.

2022/23 was an extension year to our granted funded Arts Council England Bridge programme. Further income was awarded by the Department for Education to widen the scope of the Bridge role and Artswork therefore saw investment of £1,547,354 from Arts Council England and £94,000 from the Department for Education.

Artswork has again been successful in generating programme income from a range of sources, including local and national agencies, and via delivery and receipt of training and event fees. Artswork controls expenditure well, both within core and project budgets. We also maintain healthy reserves. Artswork's Professional Development programme continues to generate a steady and sustainable income stream.

The ongoing use of effective control and tracking systems (including purchase orders and ongoing interrogated budgeting) has produced clarity in short-term and long-term financial planning and management. Regular reviews of Artswork's financial planning and management accounts at Trustee board meetings have enabled the Trustees to maintain a consistent and detailed overview of the charity's financial progress and achievements.

Principal funding sources and activities 2022/23

Artswork achieved income from a range of sources during 2022/23. We also maintained excellent accounts and financial processes – evidenced by a complimentary report on the year from our auditors, Fiander Tovell.

Funds raised included:

Reserves Policy

Artswork, like many small charities, has limited opportunity to generate unrestricted income. Through continued careful budget forecasting, application for full cost recovery where possible, strict management of expenditure and utilisation of high interest bank accounts, Artswork has continued to build up reserves of £474,822 for general contingency requirements. Artswork aims to retain at least £210,000 of unrestricted funds. Designated funds are established by Trustees for specific future spending plans and projects, and after making these designations, the Trustees seek to retain a general fund to cover 12 months core running costs and closure costs, not specifically met by programme grants.

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Going Concern

Artswork has innovated its delivery over the last year and is opening new markets through online delivery. The charity has responded to sector changes, specifically Arts Council England’s Let’s Create strategy and invested in programme development to respond to the Creative People, Communities and Country agenda. Simultaneously Artswork has responded to new opportunities to deliver employability programmes and is working with a new main Apprenticeship provider to expand the reach of this work. Specifically, the following highlights the rationale for Artswork regarding itself as a going concern.

Environmental Responsibility

Artswork has committed to a comprehensive set of targets and responsibilities to reduce the ecological impact of our work and programmes. Our Environmental Action Plan is aligned to UN Sustainable Development Goals and national policy to achieve a 78% reduction in greenhouse gas emissions by 2035. It works from a known baseline of our measurable scope 2 and 3 emissions – 12.9 tonnes of CO2e per year (average from 10 years of data). Artswork’s real impact emissions are undoubtedly higher when considering supply chain and digital footprint emissions which have not historically been recoded and the Charity is working to measure these as part of our Action Plan. In 2022/23 the measurable emissions fell to 8.1 tonnes largely to due significant reductions in business travel. Artswork’s target is to reduce our own annual emissions to a maximum of 2.8 tonnes CO2e by 2035 whilst increasing our advocacy to ensure we are supporting the transition to a low-carbon society.

https://artswork.org.uk/our-environmental-journey/

During 2022/23, Artswork:

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Plans for 2023/24 onwards

Artswork has undertaken significant planning over the last 12 months to reframe the delivery of our mission in response to Arts Council England’s Let’s Create strategy. 2023/24 will see us commence our new programme of work that responds to our consultation and co-creation sessions with children and young people, communities, stakeholders, cultural education partnerships, employees and trustees whilst integrating our existing programme portfolio.

As a new Arts Council England (ACE) National Portfolio Organisation for 2023-26, we will be supporting the shared ambition for creative people, communities and country. Our programmes will embed co-creation with children and young people in local place-based planning and development, with young people in those places equipped and skilled to be changemakers in their communities. Over 3 years they will take the lead to use creativity to make a difference to the things they care most about, particularly their mental health and wellbeing and environmental sustainability.

We will monitor progress around our four guiding principles and ambitions for Dynamism, Environmental Responsibility, Inclusivity & Relevance and Ambition & Quality (ACE Investment Principles) and share our journey as we strengthen our Anti-Discrimination actions and develop our Environmental Action Plan in the context of our new activities. Artswork will continue to use data to inform our work and will strengthen our measurement tools to better understand and focus our impact. We will continue to advocate for creative learning opportunities, led by and for children and young people and share the story of their experiences and success. Artswork will continue to manage our own organisational finance and the ongoing Bridge Partnership Investments to a high standard.

2023/24 will see further integration of our employability and training programmes with our new place-based working strategy ensuring more children and young people can benefit from creative opportunities and experiences where they live. We will also further develop on-demand online self-guided professional development courses that will significantly expand the reach of our training for arts, cultural, education and youth sector professionals.

Louise Govier, Chief Executive, Artswork

Structure, Governance and Management

The organisation is a charitable company, limited by guarantee, incorporated on 27th July 1987 and registered as a charity on 5th October 1988. The company was established under a Memorandum of Association, which established the objects and powers of the charitable company and is governed under its Articles of Association. Artswork has an active and committed Board of Trustees with the necessary skills and experience to guide

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and govern the charity. New trustees are recruited using a variety of methods: via 'Board Bank' (including e.g. Inclusive Boards); personal recommendations by Chair, trustees, senior management team and other staff; from our pool of volunteers; through recruitment adverts. Trustees’ Skills Audits identify potential skills gaps on the Board and inform Artswork's Board recruitment strategies.

Prospective new trustees meet with the Chair and Chief Executive prior to appointment and/or may be invited to a more formal interview process. Following appointment, they are supplied with a 'Governance/Induction Pack', containing: Artswork constitution; history of Artswork; all approved Artswork policies, including those outlining Artswork's commitment to Equalities, Environment and Safeguarding; most recent annual report; Charities Commission 'Role of Trustees' booklet; most recent minutes; most recent audited accounts; generic publicity information; declaration form and project information.

New Trustees attend a quarterly Board meeting and are nominated by an existing Trustee; this nomination is seconded by another Trustee (this is minuted). Annually, Artswork organises a Board and Staff Away Day, and all Trustees are encouraged to attend Artswork’s projects, programmes and events.

At quarterly meetings, new policies are presented to the Board for approval. Key policies are also reviewed (usually annually) by Board and senior staff. Artswork's Business Plan and related annual work plans and budget forecasts are prepared by senior staff and approved by the Board. Management accounts are presented to the Board each quarter.

The Chief Executive is responsible for the day-to-day management of Artswork. She works with a senior team who have an overview of the Artswork’s work (Chief Financial Officer; Deputy CEO) with input and advice from other members of the senior leadership team. In addition, there are a small number of other organisational teams who lead on our key areas of work:

Trustees agree the Business Plan and associated action plans and the staff team deliver this, reporting back on progression on a quarterly basis. Trustees set the salary of the Chief Executive. They also review pay and remuneration on an annual basis agreeing appropriate increases in line with sector benchmarking and with a guaranteed annual 2% increment. Sector benchmarking is generally undertaken every 3 years.

Funds held as Custodian Trustee on Behalf of Others None.

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Risk Review

The Chair and Chief Executive have carried out a risk assessment of the charitable company's activities. The risk assessment matrix produced as a result of this process also contains an assessment of fraud risk. The matrix has been fully reviewed by the Board of Trustees at Board Meetings. All Trustees are satisfied that the appropriate mechanisms are in place for the different functions of the organisation. The Board of Trustees has agreed to continue to monitor Artswork's risk assessment quarterly and review each project on an individual basis annually. Risk Assessment is a standard agenda item at all Board Meetings and the Chief Executive notifies Trustees of any potential issues which could activate changes in risk weighting.

Members of the Board of Trustees

Members of the charitable company guarantee to contribute an amount not exceeding £1 to the assets of the charitable company in the event of winding up . The total number of such guarantees as of 31[st] March 2023 was 6. The trustees have complied with the duty in section 4 of the Charities Act 2006 to have due regard to public benefit guidance published by the Charity Commission.

Responsibilities of the Trustees

The trustees (who are also directors of Artswork Limited for the purposes of company law) are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for the year. In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and

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hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the trustees are aware:

This report has been prepared in accordance with the special provisions relating to small companies within Part 15 of the Companies Act 2006.

Auditors

The auditors, Fiander Tovell Limited, are deemed to be reappointed under Section 487(2) of the Companies Act 2006.

Signed on behalf of the trustees on 2023 6/12/2023 | 19:51 GMT

Norinne Betjemann (Chair)

Appendix to the report – Programme Highlights 2022/23

Cultural Education Partnerships

Local Cultural Education Partnerships (CEPs) were launched nationally in 2015 in response to Arts Council England’s Cultural Education Challenge. There are currently 16 in the south-east and all support children and young people’s arts and cultural opportunities through cross-sector partnerships and working practices. They work to bring together arts and cultural organisations, maximise the resources that support children and young people, leverage funds that wouldn’t otherwise be available for arts and cultural provision, and share knowledge and best practice.

During 2022/23, Artswork:

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Partnership Investment

Partnership Investment focuses on long-term solutions rather than one-off interventions, changing the lives of children and young people through lasting and meaningful engagement. Through co-investment and collaboration with other organisations, we work to leverage match amounts in work that embeds arts and culture in policy and practice.

School Engagement

This year saw renewed engagement from schools in response to our programmes aligned with school priorities including children and young peoples’ mental health and representation in the curriculum. In 2022/23 we:

Artsmark

Artsmark continues to be strongly embedded in Artswork’s support for Cultural Education Partnerships and our approach to investment programmes. During 2022/23:

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Communication, Information and Intelligence

Data and intelligence from the data, informs our work, increases our focus, and shapes our future work with children and young people. We work hard to share these findings beyond our own organisation to assist others working across creative, cultural, youth and education settings. Over this year we have increased the volume of video content that shares the impact of our programmes and launched a TikTok channel. In 2022/23 we:

Arts Award

Arts Award can be delivered with any arts or cultural activity and in any organisation – including schools, colleges, theatres, galleries, museums, libraries, arts centres, heritage organisations, alternative education provisions, performing groups, youth justice settings, youth clubs or community groups and healthcare services. It validates existing artistic interests and can be a child or young person’s first opportunity to think and work creatively. The five levels (Discover, Explore, Bronze, Silver and Gold) support creative progression from early exploration to the development of the professional skills required to be the next generation of artists and art leaders.

Artswork leads an Arts Award Leadership Network of 7 organisations & individuals who provide mentoring to arts and cultural organisations to support them to embed and strengthen their Arts Award offer. We also embed Arts Award across our Schools Engagement and targeted programmes including Portsmouth Creative Skills and Arun Inspires.

During 2022/23 we delivered a series of well-attended online support sessions including Delivering Arts Award for the first time, Funding your Arts Award project and Delivering Arts Award Digitally.

Young People’s Employability Programmes

Artswork’s Creative Apprenticeship programme relaunched during 2022/2023 with a new main training provider Creative Alliance. During the year we enrolled 4 Apprentices on the Level 3 Event Standard.

Our work-based learning offer delivered the 3rd cohort of Kickstart opportunities providing 14 young people aged 16-24 claiming universal credit with a six-month paid work placement. Working in partnership with RIO and employers across the south-east, Artswork provided wrap-around training to develop transferable skills, introduce working

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in the creative industries, and inviting participants to be youth voice experts in the arts and cultural organisations hosting them. https://artswork.org.uk/our-work-with-young-people/for-young-people/kickstart/

Portsmouth Creative Skills

Portsmouth Creative Skills is a flexible pre-employability programme designed to equip care experienced young people with confidence, employability and life skills. This innovative partnership with Portsmouth City Council and the Portsmouth Virtual School provides opportunities to engage with arts and cultural professionals, and to develop social, communication, team and professional skills.

This year 9 young people completed the 7 week summer programme, working with 28 creative practitioners and visiting 11 cultural venues. By the end of the programme, all participants achieved Bronze Arts Award and 100% reported an increase in selfconfidence, creative skills, and in their knowledge of the Portsmouth cultural scene and confidence in participating in it. Their final project involved working with social enterprise Digital Voice to create a short film describing their experience of living in Portsmouth and their views of arts and culture in the City.

https://www.youtube.com/watch?v=4I8MLpWFilE

Workshops with the Virtual School were held during May and February half-terms involving 11 young people and 7 creative practitioners. A former participant of the 2018 summer programme returned to co-deliver a drumming workshop with his original mentor.

Additional funding as part of Artswork’s Creative People, Communities and Country strand enabled the extension of this programme to a further 31 young people aged 10-19 years old. The Creative Identities programme had 3 strands:

Collectively the participants achieved 5 Discover and 9 Bronze Arts Awards. The Enham Trust project culminated in painting a mural on a shipping container for the National Seamanship Training Centre of the Nautical Training Corps at Tipner, Portsmouth.

Arun Inspires

This development programme for children and young people in West Sussex is advancing the cultural offer for Arun’s children and young people by delivering new creative

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opportunities in partnership with the cultural, education, youth and community sectors at a local, regional and national level.

Highlights for 2022/23 include:

Artswork is highly appreciative to our many partners and stakeholders for their commitment to raising cultural aspirations and opportunities in Arun. - https://artswork.org.uk/programmes/arun inspires/

Artswork Professional Development - CPD for the Arts, Culture and Youth sectors

Our professional development courses offer a practical way for arts, culture and education professionals at any level to build their skills and increase their knowledge and understanding of work with young people. This year our self-guided offer via Thinkific saw growth of our on-demand courses, with bulk bookings for 6 organisations reaching 668 participants.

We delivered 25 open courses, a number of which sold out including Creative Consultation. Our Child Protection courses remain extremely popular.

In-house training has grown this year with 30 courses delivered for 21 organisations including:

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Artswork is indebted to the expertise and energy of its training team and grateful for their work in adapting training to new contexts whilst ensuring a continuing high-quality offer.

Artswork’s Professional Development brochure is available for further information: https://artswork.org.uk/resources/artsworks-professional-development-brochure/

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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ARTSWORK LIMITED

Opinion

We have audited the financial statements of Artswork Limited for the year ended 31 March 2023 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and the notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

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INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF ARTSWORK LIMITED

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors' report included within the report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the statement of responsibilities, the trustees, who are also the directors of the charitable company for the purpose of company law, are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Extent to which the audit was considered capable of detecting irregularities, including fraud

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

DocuSign Envelope ID: 251E9569-08F1-438A-850C-8548E4692A74

ARTSWORK LIMITED

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF ARTSWORK LIMITED

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

Audit response to risks identified

To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https:// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the company’s members, as a body, in accordance with section 391 of the Companies Act 2014. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Adam Buse ACA (Senior Statutory Auditor) 7/12/2023 | 08:15 GMT for and on behalf of Fiander Tovell Limited .........................

Chartered Accountants Statutory Auditor

Stag Gates House 63/64 The Avenue Southampton Hampshire SO17 1XS

DocuSign Envelope ID: 251E9569-08F1-438A-850C-8548E4692A74

ARTSWORK LIMITED

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 MARCH 2023

Unrestricted
Restricted
funds
funds
2023
2023
Notes
£
£
Income and endowments from:
Donations and
legacies
3
-
1,000
Charitable activities
4
128,278
2,082,510
Investments
5
21,966
-
Other income
6
-
-
Total income
150,244
2,083,510
Expenditure on:
Charitable activities
7
85,313
2,558,943
Other
11
-
2,482
Total expenditure
85,313
2,561,425
Net income/(expenditure)
for the year/
Net movement in funds
64,931
(477,915)
Fund balances at 1 April
2022
487,432
1,417,655
Fund balances at 31
March 2023
552,363
939,740		 Total
Unrestricted
Restricted
funds
funds
2023
2022
2022
£
£
£
1,000
1,370
993
2,210,788
137,070
2,206,745
21,966
4,924
-
-
-
2,477
2,233,754
143,364
2,210,215
2,644,256
111,113
2,416,303
2,482
-
-
2,646,738
111,113
2,416,303
(412,984)
32,251
(206,088)
1,905,087
455,181
1,623,743
1,492,103
487,432
1,417,655		 Total
2022
£
2,363
2,343,815
4,924
2,477
2,353,579
2,527,416
-
2,527,416
(173,837)
2,078,924
1,905,087
Donations and
legacies
3
Charitable activities
4
Investments
5
Other income
6
Total income
Expenditure on:
Charitable activities
7
Other
11
Total expenditure
Net income/(expenditure)
for the year/
Net movement in funds
Fund balances at 1 April
2022
Fund balances at 31
March 2023

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

DocuSign Envelope ID: 251E9569-08F1-438A-850C-8548E4692A74

ARTSWORK LIMITED

BALANCE SHEET

AS AT 31 MARCH 2023

|Notes
Fixed assets
Tangible assets
13
Current assets
Debtors
14
Cash at bank and in hand
Creditors: amounts falling due within
one year
15
Net current assets
Total assets less current liabilities
Income funds
Restricted funds
18
Unrestricted funds-general
Designated funds
19
General unrestricted funds|2023
£
£
12,329
27,961
1,595,575
1,623,536
(143,762)
1,479,774
1,492,103
939,740
537
551,826
552,363
1,492,103
6/12/2023 | 19:51 GMT|2022
£
£
22,390
93,000
1,961,581
2,054,581
(171,884)
1,882,697
1,905,087
1,417,655
10,537
476,895
487,432
1,905,087|2022
£
£
22,390
93,000
1,961,581
2,054,581
(171,884)
1,882,697
1,905,087
1,417,655
10,537
476,895
487,432
1,905,087| |---|---|---|---| ||||1,905,087| ||||1,417,655
487,432| ||||1,905,087| |||||

The financial statements were approved by the Trustees on .........................

..............................

N Betjemann

Trustee

Company registration number 02150619

DocuSign Envelope ID: 251E9569-08F1-438A-850C-8548E4692A74

ARTSWORK LIMITED

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2023

Notes
Cash flows from operating activities
Cash absorbed by operations
24
Investing activities
Purchase of tangible fixed assets
Investment income received
Net cash generated from/(used in)
investing activities
Net cash used in financing activities
Net decrease in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year		 2023
£
£
(384,089)
(3,883)
21,966
18,083
-
(366,006)
1,961,581
1,595,575		 2022
£
£
(171,485)
(23,501)
4,924
(18,577)
-
(190,062)
2,151,643
1,961,581

DocuSign Envelope ID: 251E9569-08F1-438A-850C-8548E4692A74

ARTSWORK LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

1 Accounting policies

Charity information

Artswork Limited is a charitable company limited by guarantee incorporated in England and Wales. The registered office is 142-144 Above Bar Street, Southampton, SO14 7DU.

1.1 Accounting convention

The accounts have been prepared in accordance with the charitable company's Memorandum of Association, the Companies Act 2006 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (as amended for accounting periods commencing from 1 January 2016). The charitable company is a Public Benefit Entity as defined by FRS 102.

The accounts are prepared in sterling, which is the functional currency of the charitable company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the accounts, the trustees have a reasonable expectation that the charitable company has adequate resources to continue in operational existence for the foreseeable future. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the accounts.

The Trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves for the charitable company to be able to continue as a going concern.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

Designated funds comprise funds which have been set aside at the discretion of the trustees for specific purposes. The purposes and uses of the designated funds are set out in the notes to the financial statements.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

1.4 Income

Income is recognised when the charitable company is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the charitable company has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Legacies are recognised on receipt or otherwise if the charitable company has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

Grants are recognised in full in the Statement of Financial Activity in the year in which they are receivable. Grants related to specific performance outputs or service level agreements are classified as incoming resources for charitable activities and are recognised when the charitable company has earned entitlement.

DocuSign Envelope ID: 251E9569-08F1-438A-850C-8548E4692A74

ARTSWORK LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

1 Accounting policies

(Continued)

1.5 Expenditure

Liabilities are recognised in the period to which they relate. The value of any liability includes irrecoverable VAT where applicable.

Resources expended are allocated directly to the relevant activity, project or fund as far as possible and in accordance with the agreed funding terms.

1.6 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Fixtures and fittings 25% reducing balance Computers 33% straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.

1.7 Impairment of fixed assets

At each reporting end date, the charitable company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

1.8 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.9 Financial instruments

The charitable company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charitable company's balance sheet when the charitable company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

DocuSign Envelope ID: 251E9569-08F1-438A-850C-8548E4692A74

ARTSWORK LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

1 Accounting policies

(Continued)

Impairment of financial assets

Financial assets, other than those held at fair value through income and expenditure, are assessed for indicators of impairment at each reporting date. Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected.

If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in net income/(expenditure) for the year.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in net income/(expenditure) for the year.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the charitable company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charitable company’s contractual obligations expire or are discharged or cancelled.

1.10 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the charitable company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.11 Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.12 Leases

Rentals payable under operating leases, including any lease incentives received, are charged as an expense on a straight line basis over the term of the relevant lease.

DocuSign Envelope ID: 251E9569-08F1-438A-850C-8548E4692A74

ARTSWORK LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

1 Accounting policies (Continued)

1.13 Government Grants

Government grants relate to furlough claims and are recognised in the SOFA in the same period as the costs to which they relate.

2 Critical accounting estimates and judgements

In the application of the charitable company’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

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 revision affects both current and future periods.

The trustees consider there are no critical judgements or sources of estimation uncertainty in the financial statements.

3 Donations and legacies

Restricted Unrestricted Restricted Total
funds funds funds
general
2023 2022 2022 2022
£ £ £ £
Donations and gifts 1,000 1,370 993 2,363

DocuSign Envelope ID: 251E9569-08F1-438A-850C-8548E4692A74

ARTSWORK LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

4 Charitable activities

Programme Programme Programme
delivery delivery
2023 2022
£ £
Services provided under contract 128,278 137,070
Performance related grants 2,082,510 2,206,745
2,210,788 2,343,815
Analysis by fund
Unrestricted funds - general 128,278 137,070
Restricted funds 2,082,510 2,206,745
2,210,788 2,343,815
Performance related grants
ACE - Bridge project 1,641,354 1,714,354
Arun 53,900 52,375
Youth Endowment Fund 226,292 179,604
Kickstart 47,346 194,418
Other 113,618 65,994
2,082,510 2,206,745
5 Investments
**Unrestricted ** Unrestricted
funds funds
general general
2023 2022
£ £
Interest receivable 21,966 4,924
6 Other income
Restricted Restricted
funds funds
2023 2022
£ £
Other income - 2,477

DocuSign Envelope ID: 251E9569-08F1-438A-850C-8548E4692A74

ARTSWORK LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

7 Charitable activities

Staff costs
Depreciation and impairment
Programme delivery
Share of governance costs (see note 8)
Analysis by fund
Unrestricted funds - general
Restricted funds		 2023
£
1,007,491
11,461
1,614,277
2,633,229
11,027
2,644,256
85,313
2,558,943
2,644,256		 2022
£
1,082,126
10,703
1,425,557
2,518,386
9,030
2,527,416
111,113
2,416,303
2,527,416

8 Support costs

Audit fees
Accountancy
Analysed between
Charitable activities		 Support
costs
Governance
costs
£
£
-
9,647
-
1,380
-
11,027
-
11,027		 2023 Governance
costs
£
£
9,647
7,680
1,380
1,350
11,027
9,030
11,027
9,030		 2022
£
7,680
1,350
9,030
9,030

9 Trustees

None of the trustees (or any persons connected with them) received any remuneration or expense reimbursements during the current or prior year.

DocuSign Envelope ID: 251E9569-08F1-438A-850C-8548E4692A74

ARTSWORK LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

10 Employees

The average monthly number of employees during the year was:

2023
Number
Full time
16
Part time
31
Total
47
Employment costs
2023
£
Wages and salaries
906,642
Social security costs
77,547
Other pension costs
23,302
1,007,491
The number of employees on a full time equivalent basis was 33 (2022: 35).
The number of employees whose annual remuneration was more than £60,000
is as follows:
2023
Number
£60,000 to £70,000
1
11
Other
Restricted
funds
2023
£
Net loss on disposal of tangible fixed assets
2,482
12
Taxation		 2023
Number
16
31
47
2023
£
906,642
77,547
23,302
1,007,491		 2022
Number
16
31
47
2022
£
984,968
80,251
16,907
1,082,126
2022
Number
-
Total
2022
£
-

The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxationof Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.

DocuSign Envelope ID: 251E9569-08F1-438A-850C-8548E4692A74

ARTSWORK LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

13
Tangible fixed assets
Fixtures and
fittings
Computers
£
£
Cost
At 1 April 2022
1,516
88,598
Additions
-
3,883
Disposals
-
(4,610)
At 31 March 2023
1,516
87,871
Depreciation and impairment
At 1 April 2022
1,505
66,219
Depreciation charged in the year
3
11,459
Eliminated in respect of disposals
-
(2,128)
At 31 March 2023
1,508
75,550
Carrying amount
At 31 March 2023
8
12,321
At 31 March 2022
11
22,379
14
Debtors
2023
Amounts falling due within one year:
£
Trade debtors
9,567
Other debtors
3,305
Prepayments and accrued income
15,089
27,961
15
Creditors: amounts falling due within one year
2023
Notes
£
Other taxation and social security
26,080
Deferred income
16
6,860
Trade creditors
18,621
Accruals
92,201
143,762		 Total
£
90,114
3,883
(4,610)
89,387
67,724
11,462
(2,128)
77,058
12,329
22,390
2022
£
3,072
3,555
86,373
93,000
2022
£
21,715
4,639
112,019
33,511
171,884

DocuSign Envelope ID: 251E9569-08F1-438A-850C-8548E4692A74

ARTSWORK LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

16 Deferred income

2023 2022
£ £
Other deferred income 6,860 4,639
Deferred income is included in the financial statements as follows:
2023 2022
£ £
Deferred income is included within:
Current liabilities 6,860 4,639
Movements in the year:
Deferred income at 1 April 2022 4,639 5,452
Released from previous periods (4,639) (5,452)
Resources deferred in the year 6,860 4,639
Deferred income at 31 March 2023 6,860 4,639

Deferred income relates to course booking fees received in advance. The entirety of the balance at 31 March 2022 had been released to the SOFA in the year ended 31 March 2023.

17 Retirement benefit schemes

Defined contribution schemes

The charitable company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charitable company in an independently administered fund.

The charge to profit and loss in respect of defined contribution schemes is shown in note 10. £4,445 (2022 - £4,484) of these contributions are unpaid as at the balance sheet date.

DocuSign Envelope ID: 251E9569-08F1-438A-850C-8548E4692A74

ARTSWORK LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

18 Restricted funds

The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:

Balance at
1 April 2022
£
ACE - Bridge including Artsmark and DFE
1,238,732
Portsmouth Skills
21,396
Arun
78,735
Let's Create
278
HAF
-
Youth Endowment Fund
31,168
Kickstart
47,346
Jubilees Fund
-
Apprenticeships
-
Equitable routes
-
Syliva Fund
-
Schools Violence Reduction
-
1,417,655
Balance at
1 April 2021
£
ACE - Bridge including Artsmark and DFE
1,442,552
Creative Apprentice
11,890
Portsmouth Skills
24,896
Arun
142,823
Let's Create
1,582
HAF
-
Youth Endowment Fund
-
Kickstart
-
1,623,743		 Movement in funds
Incoming
resources
Resources
expended
31
£
£
1,641,354
(2,045,841)
34,374
(46,563)
53,900
(87,255)
(145)
-
1,175
(1,175)
226,292
(247,117)
64,770
(99,398)
6,945
(6,945)
18,668
(20,802)
5,000
(5,000)
1,177
(1,177)
30,000
(152)
2,083,510
(2,561,425)
Movement in funds
Incoming
resources
Resources
expended
31
£
£
1,714,354
(1,918,174)
5,949
(17,839)
32,476
(35,976)
52,375
(116,463)
6,657
(7,961)
24,382
(24,382)
179,604
(148,436)
194,418
(147,072)
2,210,215
(2,416,303)		 Balance at
March 2023
£
834,245
9,207
45,380
133
-
10,343
12,718
-
(2,134)
-
-
29,848
939,740
Balance at
March 2022
£
1,238,732
-
21,396
78,735
278
-
31,168
47,346
1,417,655

DocuSign Envelope ID: 251E9569-08F1-438A-850C-8548E4692A74

ARTSWORK LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

18 Restricted funds

(Continued)

a) Arts Council England - Bridge including Artsmark and DFE funding

In April 2011, Arts Council England (ACE) announced a new national network of 'Bridge' organisations, to ensure all children and young people experience the richness of the arts both in and outside of school. Artswork was selected as one of the 10 Bridge organisations across England - initially from 2012 to 2015 - to work strategically to develop and deliver increased access to arts and culture, and better connect arts and cultural organisations with children and young people, families and schools. ACE committed some £4.5m over this period to Artswork to deliver this role.

The funding comes from £10 million a year of Lottery money which ACE has allocated to support their network of bridge organisations. In 2014, ACE confirmed a further tranche of 3-year Bridge funding to enable Artswork to deliver a second phase from 2015 to 2018. In 2019, ACE confirmed a further tranche of funding to allow Artswork to continue to deliver Bridge until 2022. More recently ACE confirmed a fourth phase that will allow Artswork to continue the Bridge programme up to 2026.

b) Creative Apprenticeship Programme

Working in partnership with Eastleigh College and with cultural employers in Hampshire, Portsmouth, Southampton and the Isle of Wight, Artswork continues to deliver a Creative Apprenticeship programme. This was designed to create new entry level routes into the creative and cultural sector, to diversify the workforce, and to provide work based learning opportunities for young people to equip them with practical skills and knowledge needed to develop a career in the arts and cultural sectors.

c) Portsmouth Creative Skills Programme

Building on the success of the Creative Skills Initiative (a national programme for 16-21 year olds), we have begun delivery of the second year of a three-year Portsmouth Creative Skills Programme, which we are undertaking with Portsmouth City Council’s Virtual School and Leaving Care Service. This is funded through The Blagrave Trust, and forms part of the work of Portsmouth’s Cultural Education Partnership, with associated Partnership Investment.

d) Arun

In March 2018, following a successful submission by Artswork, the Board of Culture, Art and Sport (Arun) Limited, a former provider to Arun District Council, gifted £250,000 to Artswork to support arts development and growth in Arun. Enhanced by Partnership investment (£100,000) agreed by Artswork Trustees and Arts Council England, Artswork is:

e) Let's Create

Artswork participated in a national initiative delivered by Bridge organisations to create and deliver packs of arts and crafts materials to children and young people in need or facing disadvantage in the south east. Initially funded by Arts Council England and the Crafts Council, with further funds from The Art Fund, the programme was delivered to coincide with the 2020 spring, summer and autumn school holidays. A further Christmas initiative was made possible through donations raised through Artswork’s individual giving campaign. Packs were distributed to children via arts organisations, education settings including SEND schools, food banks, libraries and youth organisations.

DocuSign Envelope ID: 251E9569-08F1-438A-850C-8548E4692A74

ARTSWORK LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

18 Restricted funds

(Continued)

f) HAF

Artswork was given a Grant by Portsmouth City Council, a registered provider of the Government Holiday Activities and Food (HAF) programme. The Grant was to deliver a programme of healthy food and enriching activities during the summer and winter school holidays for pupils who receive benefits-related free school meals. The participants attended free sessions during which a meal was provided alongside arts and physical activities, nutritional information and education for participants and their families and signposting to services and further support. The programme was delivered in Portsmouth during August and December 2021.

g) Youth Endowment Fund

Artswork is a Grant recipient of the Youth Endowment Fund for the Peer Action Collective programme. The work aims to prevent children and young people from becoming involved in crime and violence. The National Peer Research and Social Action Network is working to:

Artswork is employing and leading a team of young Peer Researchers to design the research, recruit and interview participants about their experiences of crime and violence and enlisting participants to become Changemakers. The programme runs from summer 2021 until March 2023.

h) Kickstart

Artswork is a participant in the Department for Work and Pensions (DWP) Kickstart employment programme for young people at risk of long-term unemployment. The DWP Grant requires Artswork to deliver a 6 month employment and training programme in partnership with its Gateway partner Real Ideas Organisation. The Grant covers the salary, national insurance and pension contributions for each employee plus set-up, training and support costs for each participant. The programme runs between July 2021 and September 2022.

i) Jubilee Fund

To facilitate and produce an online workshop and accompanying resources suitable for children in participating schools.

j) Apprenticeships

An employability programme providing young people the opportunity to work in the creative industries on a combined programme of work and learning to enable them to develop the knowledge, skills and confidence to start a career in the arts.

k) Equitable Routes

Youth-led research into the current opportunities for creative and cultural careers for young people in the Solent region.

l) Sylvia Fund

A grant scheme for young people from Artswork’s employability programmes who face financial disadvantage as a barrier to the next step in their career journey. Applicants receive a contribution towards training and development costs, equipment or materials, travel or job related costs or those associated with setting up a creative enterprise.

m) Schools Violence Reduction (Choices)

Training services for the Year 6 and Year 7 Schools Project that works to reduce knife crime, gang violence, county lines involvement and promote healthy peer relationships. Artswork is providing inset training for teachers and classroom training for pupils.

DocuSign Envelope ID: 251E9569-08F1-438A-850C-8548E4692A74

ARTSWORK LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

19 Designated funds

The income funds of the charity include the following designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes:

Movement in funds Movement in funds
Balance at Incoming Resources Balance at Transfers Balance at
1 April 2021 resources expended 1 April 2022 31 March 2023
£ £ £ £ £ £
Investing in the future 14,753 18,890 (33,643) - - -
International Development 537 - - 537 - 537
Rent Provision 10,000 - - 10,000 (10,000) -
25,290 18,890 (33,643) 10,537 (10,000) 537

a) Investing in the Future Fund

A fund originally designated in 2015 to support the development work of Learning and Skills (wider programmes)

b) International Development

This was a fund designated to support Artswork in the development of international partnerships. Artswork’s CEO travelled to Chile in August 2017 to deliver a presentation at an international symposium run by Balmaceda Arte Joven – a Chilean youth arts organisation. The CEO was supported by Arts Council England (International Artists Development Fund) and by the Anglo-Chilean Society with only a small amount drawn down from Artswork’s designated fund.

c) Rent Provision

A provision of £10,000 was agreed by trustees to allocate toward rent from the Wider Programmes budget.

DocuSign Envelope ID: 251E9569-08F1-438A-850C-8548E4692A74

ARTSWORK LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

20 Analysis of net assets between funds

Unrestricted
funds
Designated
funds
Restricted
funds
£
£
£
Fund balances at 31 March 2023 are
represented by:
Tangible assets
-
-
12,329
Current assets/(liabilities)
551,826
537
927,411
551,826
537
939,740
Unrestricted
funds
Designated
funds
Restricted
funds
£
£
£
Fund balances at 31 March 2022 are
represented by:
Tangible assets
-
-
22,390
Current assets/(liabilities)
476,895
10,537
1,395,265
476,895
10,537
1,417,655		 Total
£
12,329
1,479,774
1,492,103
Total
£
22,390
1,882,697
1,905,087

21 Financial commitments, guarantees and contingent liabilities

The charitable company is committed to pay £976,242 (2022- £798,051) in relation to funding agreements agreed with providers for programme delivery where payment conditions have not yet been met.

22 Operating lease commitments

At the reporting end date the charitable company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Within one year
Between two and five years		 2023
£
-
-
-		 2022
£
55,059
3,563
58,622

During the period, the charitable company recognised £52,197 (2022 - £61,636) of lease costs in respect of leases detailed in this note.

In the year the charity exited the lease early and therefore there is no commitment at the year end.

DocuSign Envelope ID: 251E9569-08F1-438A-850C-8548E4692A74

ARTSWORK LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

23 Related party transactions

Remuneration of key management personnel

Remuneration of key management personnel
The remuneration of key management personnel, is as follows.
2023 2022
£ £
Aggregate compensation 363,596 409,416
None of the key management personnel are trustees or directors.
24 Cash generated from operations 2023 2022
£ £
Deficit for the year (412,983) (173,837)
Adjustments for:
Investment income recognised in statement of financial activities (21,966) (4,924)
Loss on disposal of tangible fixed assets 2,482 -
Depreciation and impairment of tangible fixed assets 11,461 10,703
Movements in working capital:
Decrease in debtors 65,039 45,282
(Decrease) in creditors (30,343) (47,896)
Increase/(decrease) in deferred income 2,221 (813)
Cash absorbed by operations (384,089) (171,485)

25 Analysis of changes in net funds The charitable company had no debt during the year.