Charity Registration No. NI100803 Company Registratlon No. N1623171 (Northern Ireland) STUDIO SOUK ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2018 harbinson Iiiulholland
STUDIO SOUK LEGAL AND ADMINISTRATIVE INFORMATION Directors Fraser Brice Mark Graham Claire Patterson Charity number N1100803 Company number N1623171 Registered office 60 - 62 Ann Street Belfast BT14EG Indèp8nd&nt examingr Harbinson Mulholland Cenlrepoint 24 Omeau Avenue Belfast Co. Anlrim Northern Ireland BT2 8HS Bankers Sanlander 6 Royal Avenue Belfast BT1 10A
STUDIO SOUK CONTENTS Page Di¢101S report Independent examinerfs port Statement of financial activities Statement of financial position Notes lo the financial 8talemenls 7-15
STUDIO SOUK DIRECTORS REPORT (INCLUDING DIRECTORS, REPORT) FOR THE YEAR ENDED 31 MARCH 2018 The Directors present their report and financial slalements for the year ended 31 March 2018. Structure, governance and management Studio Souk was incorporated on 3 March 2014 and commenced operation in December 2014. The directors who served in the year are shown on page one and new directors can be appointed al a propedy convened company meeting. The Directors who setved during the year and up lo the date of signature of the financial slalemenls were.. Fraser Brice Mark Graham Claire Pallerson Objeetives and activities The company exists lo promote arts and CalIve processes lo the public and give heightened confidence. purpose, creative capacity and professional development among new emerging artists. The Directors have paid due regard lo guidance issued by the Charity Commission in deciding what ath'vities the charity should undertake. A¢hievement$ and performan¢e In 2018 we have added two new studio spaces to our city tre location due lo demand. This year has seen many cuts within the art5 sector resulting in the closure of two city centre artist studio facilities. We continue lo thrive through hard work and determination and ensure our sustainable model is maintained so that we will never have lo rely on Arts Council funding lo keep our doors open and our artists supported and nurtured. This year our Belfast City Council CMAF was used lo develop and curate a product collection that has been made arid designed by our artists. We look part in the Belfast Met programme'lnnovale Us" to furthei develop our skills, mainly within screen-prinling and laser cutting. We look on an intern who was a recent graduate of University of Ulster lo work with us and help her develop her illuslralion experience. We also look on a new member of staff who has previously worked for the Glasgow School of Art. She has been a great asset lo the team and lakes lead on the pastoral eare of our artists. We were awarded Top Choice for Arts and Crafts in Belfast by Lonely Planet and awarded lop 5 places lo visit in Belfast by The New York Times. We feel Ihis is great recognition for our work with local artists, our promotion of using recycled products within their craft and our continued engagement with the public- making the arts easily accessible lo the public. In 2018 we opened a small concession within the Bèlfast City Airport. The mission of this was lo further promote our local rnakers and talent lo tourist The key goal for the airport was to see locally made products within the airport rather than the usual merchandise that is typically found in these spaces. This project created five new jobs. Financial review In the year lo 31 hllarch 2018 there was net income of £12,90812017'. £24.067 net expendilurel allrbulable to unreslricled reseNes which now sland al £16,378 12017." £3,470). In addition there was nel expenditure of £Nil {2017.. £Nill allribulable lo reslricled reserves which brought reslricled reserves lo £Nil12017'. £Nill.
STUDIO SOUK DIRECTORS REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2018 statement of Directors. Responsibilities The directors are responsible for preparing the annual report and the financial slalemenls in acc(Kdan¢e with applicable law and regulations. Company law requires the directors lo prepare financial slalemenls for each financial year. Under that law the directors have elected lo prepare the financial slalemenls in accordance with the United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable lawl. Under company law the directors musl not approve the financial statements unless they are satisfied that they give 8 true and fair view of the slate of affairs of the company 8nd of the surplus or deficit of the company for that period. In preparing these financial statements the directors are required lo.. select suitablè accounting policies and apply them consislenlly., • make judgements and eslimales that are reasonable and prudent., prepare the financial slalemenls on the going concern basi5 unless il is inappropriate lo presume that the company will continue in business. The directors 8re responsible for keeping adequ81e aceounling records that disclose with reasonable accuracy al any lime the financi21 position of the company and enable them lo ensure that the finanaal sl8lemenls 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 50511) lal and Icl of the Income and Corporation Taxes Act 1988, Studio Souk is entitled to charity lax 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 accordan with the Slalemenl of Recommended Practice I'Accounting and Reporting by Charities'l 2015 and in aOrdan with the special provisions relating lo small companies within P8rt 15 of the Companies Act 2006. The Directors report was approved by the Board of Directors. Fraser Brice Director Dated.. 2.1.....
STUDIO SOUK INDEPENDENT EXAMINER'S REPORT TO THE DIRECTORS OF STUDIO SOUK We report to the Directors on our examination of the financial statements of Studio Souk Ilhe charity) for the year ended 31 M8rch 2018. Responsibilities and basis of report As the Directors of the charity land also ils directors for the purposes of company lawl you are responsible for the preparation of the financial stslemenls and you have considered the audit requirement of Section 65 131 of the Charities Act INI) 2008 Ilhe Act). Having satisfied ourselves that the charity is not subject lo audit under company law. and is eligible for independent examination, il is our responsibility lo.. examine the accounts under section 85 of the Charities Act INorthern Ireland) 2008., follow the procedures laid down in the general Directions given by the Charity Commission for Northern Ireland under section 6519llbl of the Charities Act., stale whether particular matters have come to our attention. Independent examinerfs statement We have examined your charity ac¢ounls as required under Section 65 of the Charities Act and our examination was carried out in accordance with the general Directions given by the Charity Commission for Northern Ireland under section 65{9llbl of the Charities Act. The examination included a review of the aceounling records kept by the charity and a comparison of the accounts presented with those records. 11 also included consideration of any unusual items or disclosures in the accounts. and seeking explanations from you as charity trvslees concerning any such mallers. Our role is lo slate whether any material mallers have come lo our allenlion giving us cause to believe.. That accounting records were not kept in respect of the charity as required by section 386 of the 2006 Act., or the financial statements do not accord with those records.. or That the financial slalemenls do not comply with the accounting requirements of section 396 of the Companies Act 2006 and with the methods and principles of the Charities Slalemenl of Recommended Practice applicable lo charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland. That there is further information needed for a proper understanding of the accounls to be reach¢d. We have completed our examination and have no concerns in respect of the matters11110141 listed above and, in connection with following the Directions of the Charity Commission for Northern Ireland, we have found no matters that require drawing lo your allenlion. Harbinson Mulholland Chartered Accounlanls Centpoint 24 Ormeau Avenue Belfast Co. Anlrim BT2 8HS Northern Ireland Dated.. ¥k
STUDIO SOUK STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2018 Unrestricted Restricted funds funds 2018 2018 Totsl Total 2018 2017 Notes nco Charitable activities 147,853 10,000 157,853 171.768 Ex enditure Charitable activities 134,945 10,000 144,945 195.835 Net incomellexpenditur¢l for the yoarl Net movement Sn funds 12,908 12,908 124,067) Fund balances al 1 April 2017 3.470 3.470 27,537 Fund balances at 31 Mar¢h 2018 16,378 1 $.378 3,470 The slalemenl of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing aclivilies. The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006. The notes on pages 7 to 15 form part of these finan81 slaternents.
STUDIO SOUK STATEMENT OF FINANCIAL POSITION ASAT31 MARCH 2018 2018 2017 Notgs Fixed assets Tangible assets Current assets Cash al bank and in hand 21,149 28,198 23.138 18,148 Cr$ditors'. amounts falling du8 Within one year 127,9091 142,8761 Nel current li8bililies 14,771) 124.7281 Total assets less current liabilities 16,378 3,470 Income funds Unreslricled funds 16.378 3,470 16,378 3,470 The company is enlilled lo the exemption from the audit requirement contained in section 477 of the Companies A¢1 2006, for the year ended 31 March 2018. No member of the company ha5 deposited a notice, pursuant lo section 476, requiring an audit of these financial slalemenls. The Directors acknowled9e their responsibilities for ensuring that the charity keeps Sccounling records which comply with section 386 of the Act and for preparing financial slalements which give a true and fair view Df the stale of affairs of the company as al the end ol the financial year and of ils incoming resources and application of resources, including ils Income and expenditure, for the financial year in accordance with the requirements of sections 394 and 395 and which olhenNise comply with the requirements of the Companies Act 2006 relating lo financial slalements, so far as applicable lo the company. These financial slalements have been prepared in accordance with the provisions applicable to companies subject lo the small companies regime. The financial slalemenls were approved by the Directors on . 21l.lllio.fi.... Fraser Bri Trustee Company Registration No. N1623171 The notes on pages 7 to 15 form part of these finanaal slalemenls.
STUDIO SOUK STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2018 2018 2017 Notes Cash flows from operating activities Cash generated from operations 14 4.990 730 Investing activities Purchase of tangible fixed assets {32,8691 Net cash used In Investing actlvltles 132,869} Net cash used In flnanclng actlvltles Net in¢ase1(dO¢r¢aseI in cash and ¢ash equivalents 4.990 132,1391 Cash and cash equivalents at beginning of year 18.148 50,287 Cash and cash equivalents at end ot year 23,138 18,148 The notes on pages 7 10 15 fom part of these fin8nci815t8lemenl$.
STUDIO SOUK NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2018 Accounting policies Charty information Studio Souk is a priv8te comp8ny limited by guarantee incorporated in Northern Ireland. The registered office is 60 - 62 Ann Street, Belfast, BT14EG. 1.1 Accounting convention The accounts have been prepared in accordance with the the Companies Acl 2006 and Accounting and Reporting by Charities.. Statement of Recommended Pra¢lice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021" las amenders for accounting periods commencing from 1 January 20161. The charity is a Publc Benefit Enlily as defined by FRS 102. The financial statements are prepared in sterling, which is the functional currency of the charity. hKonetsry amounts in these financial stslemenls are rounded to the nearest £. The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are sel out below. 1.2 Going concem At the time of approving the financial slatemenls. the Directors have a reasonable expectation that the charity has adequate resources lo continue in operational existence for the foreseeable future. Thus the Directors continue lo adopt the going concern basis of accounting in pieparing the financial stslemenls. 1.3 Charitable funds Unreslricled funds are available for use at the discretion of the Directors in furtherance of their charitable objectives unless the funds have been designated for other purposes. Reslricled funds are subject lo specific conditions by donors as lo how they may be used. The purposes and uses of the reslricled funds are sel out in the notes lo the financial slalemenls. Endowment funds are subject lo specific conditions by donors that the capital must be maint8ined by the charity. 1.4 Income Income is recognised when the charity is legally entitled lo it after any performan conditions have been met, the amounts can be measured reliably, and Il is probable that income will be received. Cash donations are recognised on Teceipl. 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 Ihe time of the donation. Legacies are recognised on receipt or othenNise if Ihe 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. Turnover is measured al the fair value of the consideration reiVed or receivable and represents amounts receivable for goods and services provided in the nomal course of business, nel of discounts, VAT and other sales related taxes.
STUDIO SOUK NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2018 Accountlng pollcles Icontinuedl 1.5 Expenditure All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate 211 costs related lo the category. Support costs are those costs incurred directly in support of expenditure on the objects of the charity. Governance costs are Ihose incurred in connection with adminislralion of the charity and compliance with constilulional and slalulory requirements. 1.6 Tangible fixed assets Tangible fixed assets are initially measured al cost and subsequently measured al cost or valuation, net of depreciation and any impairmenl losses. Depreciation is recognised so as lo write off the cost or valuation of assets less their residual values over their useful lives on the following bases.. Fixtures and fittings 250kn reducing balance The gain or loss arising on the disposal of an asset is determined as the difference between the sale prOed$ and the carrying value of the asset. and is recognised in nel inwmellexpenditurel for the year. 1.7 Impaimient of fixed assets At each reporting end dale. the charity reviews the carrying amounts of ils tangible assets lo determine whether there is any indication th81 those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is eslimaled in order lo determine the exlenl of the impairment loss lif any). Intangible assets with indefinite useful lives and intangible assets not yel available for use are tested for impairment annually, and whenever there is an indication that the asset may be impaired. 1.8 Cash and cash equivalents Cash and cash equivalents include cash in hand. deposits held al call with banks. other short-lerm liquid inveslmenls with original malurilies of three months or less, and bank overdrafls. Bank overdrafts are shown within borrowings in current liabilities. Basi¢ finan¢ial assets Basic financial a5sels. which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried al amortised cost using the effective interest melhod unless the arrangement conslilules a financing Iransa¢lion, where the transaction is measured al the present value of the future receipts discounted al a market rale of interest. Financial assets classified as receivable within one year are not amortised.
STUDIO SOUK NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2018 A¢counting policies (Continued) Basic financial liabilities Basic financial liabilities, including creditors and bank loans are initially recognised at Iransa¢lion price unles5 the arrangement constitutes a financing Iransaclion, where the debt instrument is measured al the present value of the future payments discounted al a market rale of inte$1. Financial liabilities classified as payable within one year are not amorlised. Debt instruments are subsequently carried al amortised cost, using the effective interest rale method. Trade creditors are obligations lo 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-eurrenl liabilities. Trade creditors are recognised initially al transaction price and subsequently measured at amortised cost using the effective Inte$1 method. Derecognition of linancial liabilities Financial liabilities are derecognised when the charity's conlraclual obligations expire or are discharged or cancelled. 1.9 Employee benefits The cost of any unused holiday enlillemenl is recognised in the period in which the employee's services are received. Termination benefits are recognised immediately as an expense when the charity is demonstrably committed lo lerminale the employment of an employee or lo provide lerminalion benefits. 1.10 Retirement benefits Payments lo defined contribution relirernenl benefit schemes are charged as an expense as they fall due. CrSti¢al a¢¢oLtntlng estimates and judgements In the application of the charity's accounting policies, the Directors are required to make judgements, eslimales and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other SoUrs. The estimates and associated assumptions are b8sed on historical experience and other factors that are considered lo be relevant. Actual results may differ from these eslimales. The estimates and uncjerlying assumptions are reviewed on an ongoing basis. Revisions lo 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. Tangible fixed assets Tangible assets are depreciated over their useful lives taking into account resiclual valLJes where 8ppropriale. The actual lives of the assets are assessed annually and may vary depending on a number of factors. In reassessing 2ssel lives factors such as maintenance programmes are taken into account. Residual value assessments consider issues such as the remaining live of the asset and the eslimaled value in use.
STUDIO SOUK NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2018 Charitable activities 2018 2017 Membership Commission Grants Other income 58.736 88,617 10,000 500 70,018 92,250 9.500 157,853 171,768 Analysis by fund Unreslricled funds Reslricled funds 147,853 10,000 157,853 For the year ended 31 March 2017 Unreslricled funds Reslricled funds 162,268 9,500 171,768 10-
STUDIO SOUK NOTES TO THE FINANCIAL STATEMENTS (CONTINUED} FOR THE YEAR ENDED 31 MARCH 2018 Charltable actlvltlgs 2018 2017 Staff costs Marketing and visual merchandising Volunteer costs Packaging Hospitality and events Other shop running costs 41.540 4.025 923 1,786 4,398 23,617 63,379 7,750 4,993 2.288 3.208 16,517 76,289 98,135 Share of support costs (see note 51 Share of governance costs (see note 5) 67,763 893 96,080 1,620 144,945 195,835 Analysis by fund Unreslri¢led funds Reslricled funds 134,945 10,000 144.945 Forthe year ended 31 March 2017 Unrestricted funds Reslricled funds 186,335 9,500 195,835 11
STUDIO SOUK NOTES TO THE FINANCIAL STATEMENTS {CONTINUED) FOR THE YEAR ENDED 31 MARCH 2018 Support costs Support Governancè costs costs 201B 2017 Depreciation SLJndry expenses Rent and rate Office supplies Electricity Maintenance Credit card charges Motor and travel Insurance Telecommunications Legal fees 7,049 750 32,967 760 1.024 8,752 4,241 132 4,221 1,062 6,805 7,049 750 32.967 760 1,024 8,752 4,241 132 4,221 1,062 6,805 9,399 4,530 30,948 1,055 26,655 11.394 4.693 1.689 1,560 2,157 2,000 Governance 893 893 1,620 67,763 893 68,656 97,700 Analysed beeen Charitable aclivilie5 67,763 893 68,656 97.700 Directors None of the Directors lor any persons connected with them) received any remuneration or benefits from the charity during the year. 12-
STUDIO SOUK NOTES TO THE FINANCIAL STATEMENTS {CONTINUED} FOR THE YEAR ENDED 31 MARCH 2018 Employees Number ofemployees The average monthly number of employees during the year was.. 2018 Number 2017 Number Permanent stsff including directors Employment costs 2018 2017 Wages and salaries Social security costs Other pension costs 41,515 61.371 2.008 25 41,540 63,379 Key management personnel reiVed total remuneration of £18,00012017'. £30,500} in thg period. There were no employees whose annual remuneration was £60,000 or more. Tangible fixed assets Fixtures and fittings Cost Al 1 April 2017 39,746 Al 31 March 2018 39,746 Dèpreciation and impaimient Al 1 April 2017 Depreck31ion charged in the year 11,548 7,049 Al 31 March 2018 18,597 Carrying amount Al 31 March 2018 21.149 Al 31 March2017 28,198 13-
STUDIO SOUK NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2018 Creditors.. amounts falling due within one year 2018 2017 Other creditors Accruals and deferred income 3,691 24,218 26,968 15,908 27,909 42,876 10 Restricted funds The income funds of the charity include reslricled funds comprising the following unexpended balances of donations and grants held on trust for specific purposes.. Movement in funds Incoming Resources resources expended Balance at l April 2017 Transfers Balance at 31 March 2018 Core Mulli-Annual Funding 10,000 110.0001 10,000 110,0001 The $trIcted funds represent a grant from Belfast City Council. 11 Analysis of net assets beeen funds Total 2018 Total 2017 2018 2018 Fund balances al 31 March 2018 are represented by.. Tangible assets Current asselsl{liabilitiesl 21,149 14,7691 21,149 14,7691 28,198 124,7281 16,380 16,380 3,470 14-
STUDIO SOUK NOTES TO THE FINANCIAL STATEMENTS (CONTINUED} FOR THE YEAR ENDED 31 MARCH 2018 12 Operatlng lease commltments Al the reporting end dale the charity had oulslanding commitments for future minimum lease payments under non-cancellable opefftling leases, which fall due as follows.. 2018 2017 Within one year Beeen two and five years In over five years 32.584 100,000 25,000 32,584 107,584 50,000 157,584 190,168 13 Related party transactions The were no disclosable related party transactions during the year12017- nonel. 14 Cash generated from operations 2018 2017 Surpluslldeficill for the year 12,908 124,0671 Adjustments for.. Depreciation and impairment of tangible fixed assets 7,049 9.399 Movements in working capital.. IDecreasellin¢rease in creditors 114,9671 15,398 Cash generated from operations 4,990 730 1s-