STUDIO SOUK (A COMPANY LIMITED BY GUARANTEEI DIRECTORS REPORT AND ACCOUNTS FOR THE PERIOD ENDED 31 MARCH 2016 CONTENTS PAGE Legal and Admtnistrative Infomiation Directors, Report Examlnerfs Report statement of Financlal Actlvltles Balance Sheet Notes to the Accounts 7-11 REGISTERED NUMBER: N1623171 STUDIO SOUK DIRECTORS. REPORT AND ACCOUNTS YEAR ENDIP4G 31 MARCH 2016 LEGAL AND AOMINISTRATIVE INFORMATION Dlrectors Fraser Brice Lorna Kennedy lappoinled 1 October 20151 Claire Patterson Linzi Rooney {resigned 20 March 20171 Registered Office 60-62 Ann Street Belfast BT14EG Independenl Examiners Harbinson Mulholland Centrepoinl 24 Ormeau Avenue BELFAST BT2 8HS Bankers Sanlander 6 Doneg811 Square East Belfast BT1 5HL Registered with the Charity Commission N1100803 Company Registration Number N1623171 STUDIO SOUK DIRECTORS. REPORT AND ACCOUNTS YEAR ENDING 31 MARCH 2016 DIRECTORS, REPORT The directors present their report and the audited accounts for the year ended 31 March 2016. Structure, Governance and Managomont Studio Souk was incorporated on 3 March 2014 and cornmen￿d operation in December 2014. The directors who served in the year are shown on page one and new directors can be appointed at a properly convened company meeting_ Objectlvgs and Activitigs The company exists to promote arts and creative processes lo the public and give heightened confidence, purpose, creative capacity and professional development among new emerging artists. Achievements and Performance During the period under review a commercial outlet was estsblished in Belfast City Centre with creative spa￿5 for artists lo promote their work. Financial Review The charity began lo operate in December 2014 so the comparative results for the period are for 4 months of activity. In the period there was nel income of £26,00412015". £1,533) attributable to unrestricted reserves which now sland al £27,53712015'. £1,533). In addition there was nel expenditure of £8,00012015'. £8,000 income) attributable lo reslricled reserves which broughl restricted reserves to £nil12015.. £8,000). Statement of Directors, Responsibilities The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations. Company law requires the directors lo prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with the United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable lawl. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the surplus or deficit of the company for that period. In preparing these financial slalemenls the directors are required lo.. select suitable accounting policies and apply them consistently," make judgements and estimates that are reasonable and prudent., prepare the financial statements on the going concern basis unless il is inappropriate to presume that the company will continue in business. The ¢Jireclors are responsible for keeping adequate accounting records that di5c105e with reasonable accuracy al any time the financial position of the company and enable them lo ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregulaiities. STtJDIO SOLIK DIRECTORS, REPORT AND ACCOUNTS YEAR ENDIHG 31 MARCH 2016 DIRECTORS. REPORT ICONT'D) Directors and their Interests The directors during the year and at the year end are listed on page 1. This report has been prepared in accordance with the Statement of Recommended Practice I'Accounting and Reporting by Charities'l 2015 and in accordance with the special provisions relab.ng to small cornpanies within Part 15 ofthe Companies Act 2006. Signed on behalf of the board Fraser Brice Director Approved by the board on STUDIO SOUK DSRECTORS. REPORT AND ACCOUNTS YEAR ENDING 31 MARCH 2016 INDEPENDENT EXAMINER'S REPORT TO THE DIRECTORS OF STUDIO SOUK ON THE UNAUDITED FINANCIAL STATEMENTS We report on the financial statements of Studio Souk for the period ended 31 March 2016 which comprise the ststement of financial activities, the balance sheet and the related notes. These financial statements have been prepared under the historical act convention and the accounting policies sel out on page 7. Respective responsibilitles of the management board and the Independent Examiner As the charity's members you are responsible for the preparation of the Accounts you consider that the audit requirement of Section 65131 of the Charities Act INI) 2008 Ilhe Acll does not apply. 11 is our responsibility to state whether particular matters have come to our attention as a tesult of examining the financial slatemenls. Ba$is of Independent Examinor's Statement Our examination was carried out in accordance with the general directions given by the Charity Commissioners. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts and seeking explanations from you as members Con￿rning any such mallers. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently we do not express an audit opinion on the view given by the accounts. Independent Examlner's Statement In connection with our examination, no matter has come to our attention'.- which gives us reasonable cause to believe that, in any material respect, the requirements.. to keep accounting records in accordar7ce with Section 63 of the Charities Act (Northern Ireland) 2008. lo prepare Accounts which accord with the accoijnting rewrds and to comply with thè a¢counting requirements of the Act have not been met., or lo which, in our opinion, attention should be drawn in order to enable a proper understanding of the Accounts lo be reached. Harbinson Mulholland Chartered Aecountants Centrepoinl 24 Ormeau Avenue BELFAST BT2 8HS Date STUDIO SOUK DIRECTORS, REPORT AND ACCOUNTS YEAR ENDIPIG 31 MARCH 2016 STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING INCOME AND EXPENDtTURE ACCOUNT) 2016 Rest¥icted Fund5 2015 Unreslfided Restricted Funds Funds Notes Unrestricted Funds Total Total Income Charitable g¢tivitiès 101.142 5,626 1(￿,768 17,768 25,768 Total 101,142 5,626 106,768 17,768 8,000 25,768 Expendlture on.. Charitable activities 73,938 13,626 87.564 15,035 15,035 Govemance costs 1.200 1,2fKI 1.200 1,2CN) Totsl 75,138 13.826 88,784 16,235 16.235 Net movemènts In funds 26,004 I8,0￿) 18,004 1.533 9,533 Reconclliation of fun(ts Total funds brought forward 1,533 8.lJOO 9.532 Total funds carried fO￿ard 27,537 27,537 1,533 9,533 The statement of financial activities includes all gains and losses recognised in the year. All ￿n￿MIng resources and resources expended derive from continuing activities. The notes on pages 7 to 11 form part of these accounts. STUDIO SOUK DIRECTORS, REPORT AND ACCOUNTS YEAR ENDING 31 MARCH 2016 BALANCE SHEET Notes 2016 2015 FIXED ASSETS Tangible assets CURRENT ASSETS Debtors Cash at bank and in hand 4,200 13431 LIABILITIES Creditors: amounts falling due within one year NET CURRENT ASSETS TOTAL ASSETS LESS CURRENT LIABILITIES THE FUNDS OF THE CHARITY Unrestricted funds Restricted funds 27.537 1,533 For the financial year ended 31 March 2016 the company was entitled lo exemption from audit under section 477 of the Companies Act 2006 relating to small companies. Direclorfs responsibilities.. The members have not required the company lo obtain an audit of ils financial statements for the year in question in accordance with section 476., The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the prepamtion of financial statements. These financial statements have been prepared in accordan￿ with the provisions applicable to companies subject to the small companies, regime. The aocounls were approved by the directors on %/ DIRECTORS.. Ftaser Brice The notes on pages 7 to 11 form part of these accounts Registered in Northern Ireland.. N1623171 STUOIO SOUK DIRECTORS, REPORT AND ACCOUNTS YEAR ENCSING 31 MARCH 2016 NOTES TO THE ACCOUNTS ACCOUNTING POLICIES {al Accounting convention The accounts have been prepared under the historical cost convention and in accordance with the Financial Reporting Standard for Smaller Entities and Statement of Recommended Practice ISORPI I'Accounting and Reporting by Charities'l 2015. (bl Fund accounting General funds are unrestricted funds which are available for use at the discretion of the directors in furtherance of the gener81 objectives of the charity and which have not been designated for other purposes. Investment income is allocated to the appropriate fund. {c} Income All incoming resources are in¢luded in the SOFA when the charity is legally enlrtled to the income and the amount can be quantified with reasonable accuracy. Donated facilities are included al the value lo the charity where this can be quantified and a third party is bearing the cost. Idl Expenditure All expenditure is accounted for on an accrLfals basis and has been classified under headings that aggregate all costs related to the category. Support costs are those costs incurred directly in support of expenditure on the objects of the charity. Governance costs are those incurred in connection with administration of the charity and compliance with constitutional and statutory requirements. {91 Fixed Assets Fixed assets are slated at cost less accumulated depreciation. The costs of minor additions, where the useful life is considered to be less than 2 years, are not capitalised. At each balance sheet dale, the carrying amount of tangible assets is reviewed to delemine whether there is an indication that those assets have suffered an impairment loss. Where the carrying value exceeds the eslimaled recoverable amount (being the greater of fair value less costs lo sell and value-in-usel, an impairment loss is recognised by writing down the assets cash-generating units lo their recoverable amount. An impairment loss is recognised immediately in the profil and loss. Any reversal of a previous impairment loss is similarly recognised immediately in the profil and loss. Depreciation on the assets of the company is provided on the cost of the assets, caleulaled al annual rates estimated lo write off each asset over the lemi of its useful lile. The rates in use are as follows.'- Furniture and fittings - 25QA reducing balance STVDIO SOUK DIRECTORS, REPORT AND ACCOUNTS YEAR ENOING 31 AIARCH 2016 NOTES TO THE ACCOUNTS ICONT'D) {fj Taxatlon No provision is required for taxation as the company is defined as a charity for taxation purposes. INCOME 2016 2015 Grants Membership Commission 5,626 65,535 10,850 13,899 The charity earned commission of £35,60712015.. £1,019) on sales of artists, wares of £417,40612015'. £51,907). BREAKDOWN OF COSTS OF CHARITABLE ACTIVITY 2016 2015 Charitable activitlos undortaken Sundry expenses Rent Office supplies Volunteer costs Marketing and visual merchandising Packaging Hospitality and events Electricity Maintenance Employee costs Other shop running costs Credit card charges Motor and travel Depreciation Insurance Rates Telecommunications Retsil contractors 2,189 3,015 393 10,335 12.025 1,460 3,312 11,525 6,242 16,575 8,273 380 4,200 1,576 1,668 243 4,153 87 1,000 1,404 3,921 1,323 118 1,754 530 1,155 164 56 573 87.564 15,035 Governance costs The charty's governance costs consist of". 2016 2015 Examiner's fee STUDIO SOUK DIRECTORS, REPORT AMD ACCOUNTS YEAR ENDING 31 MARCH 2016 NOTES TO THE ACCOUNTS {CONT'DJ DIRECTORS. REMUNERATION Linzi Rooney, a director, became an employee during the year and received a gross salary of £15,000 and payments for managing projects of £1, 152. These payments were for management of operations and not for her role as a director. Other directors neither received nor waived any emoluments during the period. No expenses were reimbursed to directors during the period. STAFF COSTS The average number of persons employed by the company during the year was 2016 2015 Permanent staff including directors The aggregate payroll costs of these persons were as follows.. 2016 2015 Wages and salaries Employer National Insurance 15,000 TANGIBLE FIXED ASSETS Fumilure & Fittin Total Cost Al 31 March 2015 Additions 6.877 6,877 At 31 March 2016 6,877 6,877 Depreciation: At 31 March 2015 Provision for the year Depreciats"on on disposal 573 1,576 573 1,576 At 31 March 2016 2,149 2,149 Net book value: At 31 March 2016 At 31 March 2015 STUDIO SOUK DIRECTORS, REPORT AND ACCOUNTS YEAR ENDING 31 MARCH 2016 NOTES TO THE ACCOUNTS {CONT'D} DEBTORS 2016 2015 Prepayments and accrued income CREDITORS." amounts falllng due within one year 2016 2015 Other creditors Accruals and deferred income 5,469 2,800 11602 STATEMENT OF FUNDS Balance 31 March 2015 Transfers behveen funds Balance 31 March 2016 Incomin oin Unrestricted funds General fund 1,533 101,142 75,138 27,537 1,533 101,142 175,138) 27,537 Restricted tunds Zero waste project grant- bicycle Small projects grant- inner piece 8,000 18,0001 5,626 5,626 8,000 5,626 13,626 9.533 106,768 88,764 The unrestricted funds represent the free funds of the charity. The restricted funds represent two grants from Belfast City Council. 10 ANALYSIS OF NET ASSETS BETWEEN FUNOS Nel Current Assets Fixed Assets Totsl Unrestricted funds Reslricled funds 4,728 22,809 27,537 10 STUDIO SOUK DIRECTORS, REPORT AND ACCOUNTS YEAR EPIDING 31 MARCH 2016 NOTES TO THE ACCOUNTS {CONT'DI 11 RELATED PARTIES During the period the company made payments lo Linzi Rooney, a director, of £2,93312015." £1.3111 in respect of goods sold on her behalf in the Souk and £16,15212015.' £nill as an employee. These sales were on the same terms as for the other member artists. Payments of £970 were made lo David Rooney, brother of director Linzi Rooney, for assistance during the Christmas period and inner piece project. After the year end, David Rooney became an employee. 12 FINANCIAL COMMITMENTS There were no financial commitrnents al the year end. Ref.. 63859 11