STUDIO SOUK IA COMPANY LIMITED BY GUARANTEEI FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2017 CONTENTS PAGE Legal and Administrative Information Directors, Report Examlner's Report Statement of Financial Activities Balance Sheet Notes to the Accounts 7-12 REGISTERED NUMBER.. N1623171
STUDIO SOUK DIRECTORS, REPORT AND ACCOUNTS YEAR ENDING 31 MARCH 2017 LEGAL AND ADMINISTRATIVE INFORMATION Directors Fraser Brice Mark Grah8m (appointed 20 March 20171 Lorna Kennedy (resigned 20 March 20171 Claire Pallerson Linzi Rooney (resigned 20 March 20171 Registered Office 60-62 Ann Street Belfast BT14EG Independent Examiners Harbinson Mulholland Cenlrepoint 24 Ormeau Avertue Belfast BT2 8HS Bankers Sanlander 6 Donegall Square East Belfast BT1 5HL Registered with the Charity Commission N1100803 Company Registration Number N1623171
STUDIO SOUK DIRECTORS. REPORT AND ACCOUP4TS YEAR ENDING 31 MARCH 2017 DIRECTORS. REPORT The directors, who are also the Trustees, present their report and the audited accounts for the year ended 31 March 2017. Structure, Governance and Management Studio Souk was incorporated on 3 March 2014 and CoMmend 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. Objectives and Activities The company exists to promote arts and creative processes to the public and give heightened confidence, purpose, creative capacity and professional development among new emerging artists. Achievements and Performance In 2015 il was evident that the demand for artist support and incubation spaTr was greater than our capacity. We decided lo expand into a new premises and convert three ffoors of the building lo accommodate more artist studios as well as offering more space to facilitate laige scale art and community projects. This year we were awarded Belfast City Council CMAF to ftjrther our engagement with the publie 8nd promote the arts lo a wider 8udience. We have designed and tailored a Creative Launchpad programme for new and emerging artists. We feel il is important lo respond lo feedback from our resident arlisls and collegeslschools, so that we can create the most beneficial support programmes as we enter into an uncertain future with many arts organisalions closing due to budget cuts. We have continued lo host engaging and family friendly workshops with the public that have a fun twist such as Painting with Tea and Water Pistol Painting. We have been shortlisled as the 'Top 8 Creative Co-working spaces in the UK, and Awarded for our 'Commilment lo the Environment, by BFW. We are also Top Choice for Arts and Crafts in Belfast, awarded by Lonely Planet. We feel this 15 great recognition for our work with local artists, our promotion of using recycled products within their craft and our continued engagement with the public. Financial Review In the year lo 31 March 2017 there was nel expenditure of £24,06712016. £26,004 nel incomel attributable lo unrestricted reserves which now stand al £3.47012016'. £27.5371. In addition there was nel expenditure ol £Nil 12016." £8,000) attributable lo reslricled reserves which brought reslricled reserves lo £Nil12016." £Nill. statement of Dlrectors, 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 f1nancial statements for each financial year. Under that law the directors have elected lo prepare the financial statements in accordance with the United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable lawl. Under compally law the directors must not approve the financial slalemenls unless they are satisfied that they give a true and fair view of the slate 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 to.. select suitable accounting policies and apply them consislenlly., make judgements and estimates that are reasonable and prudent., prepare the financial slalemenls on the going concern basis unles5 It is inappropriate lo presume that the company will continue In business.
STUDIO SOUK OIRECTORS, REPORT AND ACCOUNTS YEAR ENDING 31 MARCH 2017 DIRECTORS, REPORT ICONT'DI The directors are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any lime the financial position of the company and enable Iheffl to 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 irregularities. Tax Status Under Section 5051i} (al and {c) of the Income and Corporation Taxes Act 1988, Studio Souk is enlilled lo charity tax exemption. Directors and their Interests The directors during the year and al the year end are listed on page 1. This report has been prepared in accorclance with the Statement of Recommended Practice I'A¢counting and Reporting by Charilies'l 2015 and in accordance with the special provisions relating lo small companies within Part 15 of the Companies Act 2006. Signed on behalf of the board Fraser Brice Director Approved by the board on
STUDIO SOUK DIRECTORS, REPORT AND ACCOUNTS YEAR E1401NG 31 MARCH 2017 INDEPENDENT EXAMINER'S REPORT TO THE DIRECTORS OF STUDIO SOUK ON THE UNAUDITED FINANCIAL STATEMENTS We report on the financial statements of Studio Sotjk for the year ended 31 March 2017 which comprise the slalemenl of financial activities, the balance sheet and the related notes. These financial slalements have been prepared under the historical act convention and the accounting policies sel out on pages 7 10 9. Respective responsibilities 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 requiremènt of Section 65131 of the Charities Act INI} 2008 Ilhe Acll does not apply. 11 is our responsibility lo stale whether particular mallers have come lo our allenlion as a result ol examining the financial statements. Basis of Independent Examiner's Statement Our examination was carried out in accordance with the general directions given by the Charity's Commissioners. An examination Includes a review of the accounting records kept by Ihe Charity and a compari50n of the accounts presenlerl with those records. 11 also includes consideration of any unusual items or disclosures in the accounts and seeking explanations from you as members concerning 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 Examiner's Statement In connection with our examination, no matter has come to our allenlion'.- which gives us reasonable csuse to believe that, in any material respect, the requirements.. to keep accounting records in accordanTr with Section 63 of the Charities Act (Northern Ireland) 2008. to prepare Accounts which accord with the accounting records and lo comply with the accounting requirements of the Act have not been mel., or to which, in our opinion, attention should be drawn In order lo enable a proper understanding of the Accounts lo be reached. LLts (Q Harbinson Mulholland Chartered Accountants Cenlrepoinl 24 Ormeau Avenue Belfast BT2 8HS Date..
STUDIO SOUK DIRECTORS, REPORT AND ACCOUNTS YEAR ENDING 31 MARCH 2017 STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING INCOME AND EXPENDITURE ACCOUNTI 2017 2016 Unrestricted Restrided Funds Funds Notes Unrestricted Funds Restricted Funds Total Total Income Charitable activities 162,268 9,500 171,768 1(11,142 5,626 106,768 Total 162,268 9,500 171,768 101.142 5,626 106,768 Expenditure on= Charitable activities 186,335 9.500 195,835 75,138 13,626 88.764 Total 188.335 9,500 195.835 75,138 13.626 88,764 Net ineomellexpendttur81 124,0671 (24,0671 26.004 18,0001 18,004 Reconciliat40n of funds Total funds brought forward 27.537 27,537 1.533 8,000 9,532 Total funds carried forward 3,470 3,470 27.537 27,537 The statement of financial activities includes all gains and losses recognised in the year. All incoming resour$ 8nd resources expended derive from continuing activities. The notes on pages 7 10 12 form part of these accounts.
STUDIO SOUK DIRECTORS, REPORT AND ACCOUNTS YEAR ENDING 31 MARCH 2017 BALANCE SHEET Notes 2017 2016 FIXED ASSETS Tangible assets CURRENT ASSETS Debtors Cash at bank and in hand LIABILITIES Creditots.. amounts falling due within one year NET CURRENT ASSETS 22 809 TOTAL ASSETS LESS CURRENT LIABILITIES THE FUNDS OF THE CHARITY Unreslricled funds Restricted funds 3.470 27,537 27 These accounts have been prepared in accordance with the provisions available to companies subject lo the small companies regime within Part 15 of the Companies Act 2006, and the Slalemenl of Recommended Practice ISORPI I'Accounting and Reporting by Charilies'l 2015. For the financial year ended 31 March 2017 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating lo small companies. The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts. The rnembers have not required the company lo obtain an audit of its accounts for the year in question in accordance with section 476. The financial statements were approved by the board of directors and authorised for issue on and are signed on ils behalf by.. DIRECTORS.. Fraser Bri The notes on pages 7 10 12 form parl of these accounts Registered in Northern Ireland N1623171
STUDIO SOUK DIRECTORS, REPORT AND ACCOUNTS YEAR ENDING 31 MARCH 2017 NOTES TO THE ACCOUNTS ACCOUNTING POLICIES la} Basis of accounting These financial statements have been prepared under the histori1 cost convention and in accordance with applicable accounting standards, the Statement of Recommended Practice ISORPI "Accounting and Reporting by Charities" effective JanLJary 2015 and FRS 102 "The Financial Reporting Standard Applicable In the UK and Republic of Ireland" and the Companies Act 2006. The principal accounting policies. judgments and key sources of estimation uncertainly are set out below. This has been adopted by the company for the first lime In these financial slalements. The dale of Iiansilion was 1 April 2015 and no adjuslmenls were necessary lo the prior year statements a5 a result of that change. The principal accounting policies, judgements and key sources of esb'mation uncertainly are sel out below. The directors consider that these accounting policies are suitable, have been consislenlly applied and are supported by reasonable and prudent judgment and estimate5. The charity meets thè definition of a public benefil enlily under FRS 102. The financial statements are prepared in accordance with the historical cost convention. {bl Preparation of the accounts on a going Concern basis The charity reported nel expenditure of £24.067 for the year. The directors have considered the circumstances outlined above, and are of the view that they have secured sufficient funding to ensure that the company can continue lo trade for the next 12 months. For this reason they continue lo adopt the going COnM basis in preparing the financial slalemenls. Ic} Fund accounting General funds are uniestricled funds which are available for use at the discretion of the directors in furtherance of the general objectives of the charity and which have not been designated for other purposes Investment iricome is allocated lo the appropriate fund. dl Income All income is included on the Slalement of Financial Activities whèn the charity is legally entitled to the income and the amount can be quantified with reasonable accuracy. Donated facilities are included at the value lo the charity where this can be quantified and a third party is bearing the cost. lel Expenditure All expenditLJre is accounted for on an accruals basis and has been classified under headings that aggregate all costs related lo the category. Support costs are those costs incurred direclly in support of expenditure on the objects of the charity. Governance costs are those incurred in connection with adminislralion of the charity and compliance with conslilutional and slatulory requirements.
STUDIO SOUK DIRECTORS, REPORT AND ACCOUNTS YEAR ENDING 31 MARCH 2017 NOTES TO THE ACCOUNTS (CONT'DI (fl Flxed Assets Fixed assets are slated at cost less accumulated depreciation. The Costs of minor additions, where the useful life is considered lo be less than 2 years, are not ¢apilalised. Depreciation on the assets of the company is provided on the cost of the assets, calculated al annu21 rates eslimaled lo write off each asset over the term of ils useful life. The rates in use are as follows'.- Furniture and fittings 25 /0 reducing balance {gl Impairment of fixed assets Al each balance sheet date, the carrying amounts of tangible and intangible assets are reviewed lo determine whether there is an indication that those assets have suffered an impairment loss. Where the carrying value exceeds the eslimaled recoverable amount Ibeing Ihe greater of18ir value less costs to 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 immed1ately in the profil and loss. Any reversal of a previous impairment loss is similarly recognised imrnedialely in the profil and loss. (h) Debtors Trade and other debtors are recognised al the sellletnenl amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due. {al Cash at bank and in hand Cash and cash equivalents Include cash In hand, deposits held at call with banks and Dlher short-lerm liquid investments with original maturities of three months or less. Ibl Creditors and provisions Creditors and provisions are recognised where the charity has a present obligation iesulling from a past event that will probably result in the transfer of funds to a third party and the amount due to sellle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their selllemenl amount after allowing for any trade discounts due. Icl Financial instruments The charity only has financial assets and financial liabilities of a kind that qualify as basic financial inslrumenls. Basic financial instruments are initially recognised al transaction value and subsequently measured at their settlement value. Idl Taxation No provision is required for taxation as the company is defined as a charity for laxalion purposes. lel Critical accounting estimates and judgements In the application of the charity's accounting policies, the Trustees are required lo make judgements, eslimales and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The eslimales and associated assumptions are based on historical experience and other factors that are considered lo be relevant. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis.
STUDIO SOiIK DIRECTORS, REPORT AND ACCOUNTS YEAR ENDING 31 MARCH 2017 NOTES TO THE ACCOUNTS ICONT'DI Tangible fixed assets Tangible assets are depreciated over their useful lives taking into account residual values where appropriate. The actual lives of the assets are assessed annually and may vary depending on a number of factors. In reassessing asset lives factors such as maintenance programmes are taken into account. Resiclual value assessments consider issues such as the remaining live of the asset and the eslimaled value in use. INCOME 2017 2016 Grants Membership Commission 9,500 70,018 5,626 65,535 The charity earned commission of £92,25012016.' £35,607) on sales of artists, wares of £491,98712016'. £417.4061. BREAKDOWN OF COSTS OF CHARITABLE ACTIVITY 2017 2016 Costs directly allocated to activities: Marketing and visual merchandising Volunteer costs Packaging Hospilalily and events Employee costs Other shop running costs 7,750 4,993 2,288 3,208 63,379 12,025 10,335 1,460 3,312 16,575 98.135 Support costs allocated to activities: Sundry expenses Rent Office supplies Electricity Maintenan Credit card charges Motor and travel Depreciation Insurance Rates Telecommunications Governance Legal fees 4,530 30,675 1,055 26,655 11,394 4,693 1,689 9,399 1,560 273 2.157 1.620 2,189 3,015 393 11.525 6,242 380 4,200 1,576 1,668 243 4,153 1,200 36.784 Total
STUDIO SOUK DIRECTORS, REPORT AND ACCOUNTS YEAR ENDING 31 MARCH 2017 NOTES TO THE ACCOUNTS ICONT'DI DIRECTORS, REMUNERATION The Chief Executive Officer, who remained a director until 20 March 2017, received a remunerab'on of £30,50012016. 15,0001 and payments for managing projects of £Nil12016.. £1.1521.These payments were for management of operations and not for her role as a director. Other directors neither received nor waive(J any emoluments during the period. No expenses were reimbursed to directors during the period. The directors remuneration represents the total benefits received by key management. The charity considers its key management lo be its Chief Executive offir. STAFF COSTS The average number of persons ernployed by the company during the year was 2017 2016 Permanent staff including directors The aggregate payroll costs of these persons were as follows.. 2017 2016 Wages and salaries Employer National Insurance 61,371 15,000 TANGIBLE FIXED ASSETS Furniture & Fitlin Total Cost Al 31 March 2016 Additions 6,877 6,877 Al 31 March 2017 39,746 39,746 Depreciation.. At 31 March 2016 Provision for the year Depreciation on disposal 2,149 9.399 2.149 9.399 Al 31 March 2017 11,548 11,548 Net book value: Al 31 March 2017 Al 31 March 2016 10
STUOIO SOUK DIRECTORS, REPOFIT AND ACCOUNTS YEAR ENDING 31 MARCH 201Y NOTES TO THE ACCOUNTS ICONT'DI CREDITORS.. amounts falling due within one year 2017 2016 Other creditors Accruals and deferred income 26,968 15908 5,469 42 STATEMENT OF FUNDS Balance 31 March 2016 Transfers between funds Balance 31 March 2017 Incomin Out oin Unrestrlcted funds General fund 27.537 162.268 186,335 3,470 27,537 162,268 186,335 3,470 Restricted funds Core Mulli-Annual Funding 9,500 9.500 9,500 9,500 27,537 171,768 195,835 3.470 The unrestricted funds represent the free funds of the charity. The restricted funds represent a grant from Belfast City Council. ANALYSIS OF NET ASSETS BETWEEN FUNDS Net Current Assets Fixed Assets Total Unreslricled funds Restricted funds 24 28 470 11
STUDIO SOUK DIRECTORS, REPORT AND ACCOUNTS YEAR ENDING 31 MARCH 2017 NOTES TO THE ACCOUNTS ICONT'DI 10 RELATED PARTIES During the period the company made payments lo Linzi Rooney, a director, of £Nil12016.' £2,933) in respect of goods sold on her behalf in the Souk and £30,500 {2016". £16,1521 as an employee. During the period. Studio Souk made purchases from director Fraser Brice for £1.098. Frazer Brice also loaned the company £25,350. 11 FINANCIAL COMMITMENTS There were no fi'nancial commitments at the year end. Ref.. 92593 12