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2021-03-31-accounts

Charity Registration No. 801562

Company Registration No. 02372379 (England and Wales)

ST ETHELDREDA ART STUDIO

ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

ST ETHELDREDA ART STUDIO

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees

Miriam Barnett Aileen Cruse Frank Eliel Barbara Richards Henry Rolph

Secretary

Michael Chapman

Charity number

801562

Company number

02372379

Independent examiner

Argents Accountants Limited 15 Palace Street NORWICH Norfolk United Kingdom NR3 1RT

ST ETHELDREDA ART STUDIO

CONTENTS

Page
Trustees' report 1 - 2
Independent examiner's report 3
Statement of financial activities 4
Balance sheet 5
Notes to the financial statements 6 - 13

ST ETHELDREDA ART STUDIO

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 MARCH 2021

The trustees present their report and financial statements for the year ended 31 March 2021.

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 governing document, a Deed of Trust, 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) (effective 1 January 2019)".

Objectives and activities

The charity's objects and its principal activities for the public benefit continue to be: (a.) to promote the education of the public in visual arts, and

(b.) to promote the education of young artists by providing facilities for training and displaying their work. T h ere h as been no change in these during the year.

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

Achievements and performance

Our policy continues to be to rent premises and provide this and other facilities at reasonable cost to promote the charities objectives.

During the year the Covid pandemic was in full force. The Government supplied grants to help organisations like ours. These monies account for the large increase in receipts. This is likely a one-off.

The Trustees created two designated funds from these otherwise unrestricted funds:

  1. The “hardship fund” was set at £2000 and was to allow the Board to choose to help artists who are tenants who apply for financial assistance. In unusual circumstances this could be extended to include past tenants. One small request was granted in this year.

  2. The “development fund” was set at £8000. This was for any spend on an activity that helps ensure the ongoing viability of the Studios. That could include for example; improvements to the building (eg partitioning, plumbing, heating, lighting etc), promotional work that increases the recognition and standing of the Charity or support for the development of artists within the Studios.

Financial review

The financial results for the year and financial position of the company are shown in the annexed financial statements, and were considered satisfactory.

The reserves are considered adequate by the trustees for working capital and continued process of improvement. Due to the size of the reserves and their relatively short term nature, they are being held as cash in the bank.

The trustees has assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.

ST ETHELDREDA ART STUDIO

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Structure, governance and management

The charity is controlled by its governing document, a Deed of Trust, and constitutes a limited company , limited by guarantee , as defined by the Companies Act 2006.

The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:

Miriam Barnett

Aileen Cruse Frank Eliel Barbara Richards Henry Rolph

The trustees are elected by the members.

The charity is organised so that the trustees meet regularly to manage its affairs and is run by volunteers.

The trustees' r eport was approved by the Board of Trustees.

Trustee Dated: 22 October 2021

ST ETHELDREDA ART STUDIO

INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF ST ETHELDREDA ART STUDIO

I report to the trustees on my examination of the financial statements of St Etheldreda Art Studio (the charity) for the year ended 31 March 2021.

Responsibilities and basis of report

As the trustees of the charity (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).

Having satisfied myself that the financial statements of the charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the charity’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act) . In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner's statement

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.

Mark Johnstone Argents Accountants Limited 15 Palace Street NORWICH Norfolk NR3 1RT United Kingdom

Dated: 10 November 2021

ST ETHELDREDA ART STUDIO

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2021

Unrestricted
Restricted
funds
funds
2021
2021
Notes
£
£
Income from:
Donations , legacies
and grants
3
19,907
-
Charitable activities
4
6,650
-
Investments
5
3
-
Total income
26,560
-
Expenditure on:
Charitable activities
6
7,496
37
Net income/(expenditure)
for the year/
Net movement in funds
19,064
(37)
Fund balances at 1
April 2020
2,849
183
Fund balances at 31
March 2021
21,913
146		 TotalUnrestricted
Restricted
funds
funds
2021
2020
2020
£
£
£
19,907
1,046
-
6,650
7,945
-
3
6
-
26,560
8,997
-
7,533
11,268
46
19,027
(2,271)
(46)
3,032
5,120
229
22,059
2,849
183		 Total
2020
£
1,046
7,945
6
8,997
11,314
(2,317)
5,349
3,032

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.

ST ETHELDREDA ART STUDIO

BALANCE SHEET

AS AT 31 MARCH 2021

Notes
Fixed assets
Tangible assets
11
Current assets
Debtors
12
Cash at bank and in hand
Creditors: amounts falling due within
one year
13
Net current assets
Total assets less current liabilities
Income funds
Restricted funds
14
Unrestricted funds
Designated funds
15
General unrestricted funds		 2021
£
130
22,603
22,733
(820)
9,880
12,033		 £
146
21,913
22,059
146
21,913
22,059		 2020
£
70
3,019
3,089
(240)
-
2,849		 £
183
2,849
3,032
183
2,849
3,032

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 March 2021.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the Trustees on 22 October 2021

Trustee

Company Registration No. 02372379

ST ETHELDREDA ART STUDIO

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

1 Accounting policies

Charity information

St Etheldreda Art Studio is a private company limited by guarantee incorporated in England and Wales. The registered office is .

1.1 Accounting convention

The financial statements have been prepared in accordance with the charity's [governing document], 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) (effective 1 January 2019)". The charity is a Public Benefit Entity as defined by FRS 102.

The charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.

The financial statements are prepared in sterling , which is the functional currency of the charity. Monetary a mounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the charity 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 financial statements.

1.3 Charitable funds

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

Designated funds represent unrestricted funds set aside by the trustees for a specific purpose. Such funds can be undesignated or re-designated at a later date at the discretion of the trustees.

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.

Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity.

1.4 Income

Income , including that from grants, is recognised when the charity 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 charity 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 charity 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.

ST ETHELDREDA ART STUDIO

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

1 Accounting policies

(Continued)

1.5 Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

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

20% on reducing balances

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 net income/(expenditure) for the year.

1.7 Impairment of fixed assets

At each reporting end date, the charity 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 charity 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 charity's balance sheet when the charity 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.

ST ETHELDREDA ART STUDIO

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

1 Accounting policies

(Continued)

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 p aymen ts 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 charity’s contractual obligations expire or are discharged or cancelled.

1.10 Taxation

The charity is exempt from corporation tax n its charitable activities.

2 Critical accounting estimates and judgements

In the application of the charity’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.

3 Donations , legacies and grants

Unrestricted Unrestricted
funds funds
2021 2020
£ £
Donations and gifts - 1,046
Coronavirus Business Support Grants 19,907 -
19,907 1,046

ST ETHELDREDA ART STUDIO

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

4 Charitable activities

Art Studio Total Art Studio Exhibitions Total
2021 and events 2020
2021 2020 2020
£ £ £ £ £
Studio rental income (6,650) (6,650) (7,618)
-		 (7,618)
Commissions on sales - - - 22 22
Events and other fee income - - - 305 305
6,650 6,650 7,618 327 7,945

5 Investments

Interest receivable

Unrestricted Unrestricted
funds funds
2021 2020
£ £
3 6

ST ETHELDREDA ART STUDIO

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

6 Charitable activities

Art
Depreciation and
impairment
Rent and insurance
Rates
Electricity
Water
Telephone
Building maintenance
Exhibitions
Advertising
Sundries
Grant funding of activities
(see note 7)
Share of governance costs
(see note 8)
Analysis by fund
Unrestricted funds
Restricted funds		 Studio Exhibitions
and events
2021
2021
£
£
37
-
4,647
-
49
-
387
-
309
-
308
-
1,456
-
-
(280)
75
-
155
-
7,423
(280)
120
-
270
-
7,813
(280)
7,776
(280)
37
-
7,813
(280)		 Total
2021
Art
£
37
4,647
49
387
309
308
1,456
(280)
75
155
7,143
120
270
7,533
7,496
37
7,533		 Studio Exhibitions
and events
2020
2020
£
£
46
-
4,810
-
517
-
351
-
124
-
249
-
4,535
-
-
280
150
-
72
-
10,854
280
-
-
180
-
11,034
280
10,988
280
46
-
11,034
280		 Total
2020
£
46
4,810
517
351
124
249
4,535
280
150
72
11,134
-
180
11,314
11,268
46
11,314

7 Grants payable

Grants to institutions: Grants to individuals

Art Studio
2021
£
120
120		 2020
£
-
-

ST ETHELDREDA ART STUDIO

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

8 Support costs

Support
costs
Governance
costs
£
£
Accountancy
-
270
-
270
Analysed between
Charitable activities
-
270		 2021
Support
costs
Governance
costs
£
£
£
270
-
180
270
-
180
270
-
180		 2020
£
180
180
180

9 Trustees

None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.

10 Employees

The average monthly number of employees during the year was:

2021 2020
Number Number
Total - -
11 Tangible fixed assets
Fixtures and fittings
£
Cost
At 1 April 2020 8,321
At 31 March 2021 8,321
Depreciation and impairment
At 1 April 2020 8,138
Depreciation charged in the year 37
At 31 March 2021 8,175
Carrying amount
At 31 March 2021 146
At 31 March 2020 183

ST ETHELDREDA ART STUDIO

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

12 Debtors

Amounts falling due within one year:
Trade debtors
Creditors: amounts falling due within one year
Other creditors
Accruals and deferred income		 2021
£
130
2021
£
550
270
820		 2020
£
70
2020
£
50
190
240

13 Creditors: amounts falling due within one year

14 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 Resources Balance at Resources Balance at
1 April 2019 expended 1 April 2020 expended
31		 March 2021
£ £ £ £ £
Fixtures and Fittings 229 (46) 183 (37) 146

15 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
Incoming Balance at Resources Transfers
Balance at
resources 1 April 2020 expended 31 March 2021
£ £ £ £
£
Hardship fund - - (120) 2,000
1,880
Development fund - - - 8,000
8,000
- - (120) 10,000
9,880

ST ETHELDREDA ART STUDIO

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

16
Analysis of net assets between funds
Unrestricted
funds
Restricted
funds
2021
2021
£
£
Fund balances at 31
March 2021 are
represented by:
Tangible assets
-
146
Current assets/
(liabilities)
21,913
-
21,913
146		 TotalUnrestricted
funds
Restricted
funds
2021
2020
2020
£
£
£
146
-
183
21,913
2,849
-
22,059
2,849
183		 Total
2020
£
183
2,849
3,032

17 Related party transactions

There were no disclosable related party transactions during the year (2020 - none).