Contemporary Applied Arts - Charities report - 22.2
Contemporary Applied Arts - Charities report - 22.2
REGISTERED COMPANY NUMBER: |
REGISTERED CHARITY NUMBER: |
Report of the Trustees and |
Unaudited Financial Statements for the Year Ended 30 September 2022 |
for |
Contemporary Applied Arts |
(A Company Limited by Guarantee) |
Contemporary Applied Arts |
Contents of the Financial Statements |
for the Year Ended 30 September 2022 |
Page |
Report of the Trustees | 1 | to | 9 |
Statement of Trustees' Responsibilities | 10 |
Independent Examiner's Report | 11 | to | 12 |
Statement of Financial Activities | 13 |
Balance Sheet | 14 | to | 15 |
Notes to the Financial Statements | 16 | to | 25 |
Contemporary Applied Arts (Registered number: 00899449) |
Report of the Trustees |
for the Year Ended 30 September 2022 |
The Trustees present their annual report together with the financial statements of the Company for the period 1 October 2021 to 30 September 2022. The Annual Report serves the purposes of both a Trustees' report and a Directors' report under company law. The Trustees confirm that the annual report and financial statements of the charitable company comply with the current statutory requirements, the requirements of the charitable company's governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019). |
Since the Company qualifies as small under section 382 of the Companies Act 2006, the strategic report required of medium and large companies under the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 has been omitted. |
Business review |
The period has been one of consolidation and stabilisation following the previous periods which were so adversely affected by the pandemic. We have sought to husband our resources, minimise any cash loss and manage our limited resources as best we can to refocus CAAs activities back to its core objectives. We are grateful to the maker members and volunteers who have donated freely of their time to assist in the plans which were discussed at the previous AGM in November 2022. |
Trustee changes |
Two of our longest-serving trustees, our Chair, Judith Unwin and Georgina Stewart retired in December 2022 after the end of the accounting period. We extend our deep appreciation to them for their hard work over many years. We undertook a search for a replacement Chair but have so far been unsuccessful. A principal concern arising from this is the lack of an individual who can focus on the fundraising that is needed to put CAA back on the path it should be treading to a more sustainable future. Full details of the trustees who served during the period are set out below in this report. |
Financial review |
During the period under review, CAA achieved Sales of £248,000 (2021 £157,000) a 58% increase and our gross margin on sales remained broadly constant at 47% (2021 48%). Our operating expenses were reduced to £212,000 (2021- £234,000) but due to the absence of the substantial donations and grants (including COVID support) that were raised in 2021, the overall result is still a loss of £42,000. In the period since the year-end CAA has managed to break even on a cash basis. |
At 13th June (the most recent date available before finalising this report), our cash balance is approximately £56,000 roughly sufficient to cover three months expenses. |
We are however able to report that in April 2023 our SITR lender agreed to write off the debt owed by CAA which will result in a substantial reduction in our net deficit. This is very welcome news and we are extremely grateful to the lender for this generosity. We are still left with net debts of £78,000 including rental liabilities and loans. Of the loans £6,000 is repayable over the next 12 months which is manageable. We continue to be grateful to our landlord for their forbearance with regard to the rental liabilities. |
Gallery makeover, Exhibitions and other activities |
Given our limited financial resources, CAA gallery staff concentrated on creating events and showcases within the gallery space at Paddington Street. These events were curated in-house by gallery staff and maker trustees. |
Contemporary Applied Arts (Registered number: 00899449) |
Report of the Trustees |
for the Year Ended 30 September 2022 |
Exhibiting makers were very much encouraged to attend in person and evening "private views" were well attended. With limited space in the gallery, private views were aimed primarily at CAA supporters and buyers. All exhibitions and shows were widely promoted through social media. Long-standing supporters were sent physical invitations to events where appropriate. |
Solo Show of Kuniko Maeda "Mono-Katachi" 4th to 16th October 2021 |
Kuniko Maeda is a Japanese artist based in London who makes paper, leather and textile artworks and installations. She specialises in sustainable textile design and incorporates Japanese traditional techniques and digital technology. By exploring the possibility of materials and their unique properties, she allows the materials to speak and embrace natural formed abstraction. |
Alongside her solo show Kuniko ran a workshop in paper manipulation. All ages were welcome. |
Festive Jewellery Showcase Dec 1st to 31st 2021 |
Aimed specifically at Christmas shoppers, CAA invited a wide range of jewellery makers to submit work for the Christmas show. Other disciplines were also on display with jewellery being the main focus. At this time of year jewellery historically achieves the best sales. |
London Art Fair at The Business Design Centre 20-24th April |
CAA took part in the London Art Fair at the Business Design Centre, Islington, 20 - 24 April 2022. Participating in the Fair's curated section PLATFORM, the presentation of makers and their work explored the theme of 'Music and its Part in Contemporary Visual Art'. |
Financially the show did well with good sales and a positive response from visitors. This was an important event for CAA to be seen by a wider audience. |
London Craft Week_ Anna Gravelle and Tanya Gomez May 9th to 15th |
"Rarified Landscape," a joint exhibition of textile artist, Anna Gravelle, and ceramicist Tanya Gomez ran during London Craft Week. The exhibition was widely promoted on LCW social media and through the LCW catalogue. |
Age UK Outreach Workshop May 22nd |
Ceramicist member Agalis Manessi led an outreach workshop at the Healthy Living and Learning Centre in Southwark. It was very well attended and thoroughly enjoyed by all. |
Platinum Jubilee Brooch Collection with Casely Hayford May 28th to June 3rd |
To celebrate the Queen's Jubilee members from all disciplines were invited to submit wearable artworks/brooches. They rose to the occasion with considerable inventiveness. |
New Makers June 2022 |
A call was put out to recruit new makers which resulted in 60+ applicants. Established makers from each discipline reviewed the applications and by general consensus thirteen new members were elected. |
New Maker SHOWCASE Nov 3rd to 18th 2022 |
Highly successful exhibition with the new CAA Makers attending the gallery in person to talk to visitors and to network amongst themselves. |
CAA was open to the public both days of the weekend. |
Marketing achievements, Website development |
Coming out of the pandemic, the board reviewed CAA's online presence, including the website, online shop, newsletter and social media accounts. Identifying the change in consumer behaviours (shopping more online), we agreed to focus on upgrading our digital touch points in 2022: |
Contemporary Applied Arts (Registered number: 00899449) |
Report of the Trustees |
for the Year Ended 30 September 2022 |
Upgrading the CAA website, database and E-commerce solutions: |
It became increasingly clear to the board that more was needed to ensure that the gallery's website could be an effective shop window and process online orders. In January, we contracted ArtLogic, a gallery-focused technology company, which provided us with an upgraded gallery website, advanced E-commerce shop, fully integrated digital database, CRM system and a built-in sales management tool. In three months, Pamela, the gallery team and a handful of maker volunteers completed the transition - uploaded all CAA-makers' biographies and works to the platform and launched the new website in April 2022. By the end of the year, the new website drove almost 100 online purchases, generating a 5-digit revenue figure and receiving the first-ever online orders from international markets (USA, Australia, Panama and Japan). |
Updating CAA brand guidelines: |
Reviewing the brand guidelines produced in 2008, the board recognised that the current document doesn't cover some of our new marketing channels, such as the newsletter and social media accounts (Facebook, Instagram and Pinterest). Olivia Yardly (CAA Employee) and Ofir Halfon (Board Trustee) worked together to expand the existing brand guidelines to the missing marketing channels, creating a consistent brand experience across all CAA touchpoints. |
Revamping CAA online marketing presence: |
With a focus on driving website sales, the board highlighted the need of revamping the gallery's marketing activity across all media channels, including the newsletter and social media accounts (Facebook, Instagram and Pinterest). Olivia Yardly (CAA Employee) and Ofir Halfon (Board Trustee) worked together to create a new marketing plan, defining the purpose of each channel in the marketing mix, their objectives and content pillars. Olivia presented the marketing plan to the board on the 16th of August - who approved it fully. Since launched, our monthly online reach increased by 49% to over 77,000 users across channels, driving more than 1,000 customers to the website every single month. |
In 2023, we will continue improving the gallery's online presence and expect additional growth in online & offline sales and brand awareness. |
Contemporary Applied Arts (Registered number: 00899449) |
Report of the Trustees |
for the Year Ended 30 September 2022 |
OBJECTIVES AND ACTIVITIES |
Objectives and aims |
CONSTITUTIONAL AND GOVERNANCE REPORT |
Policies and objectives |
Contemporary Applied Arts ("CAA") is London's original multi-disciplinary applied arts gallery which champions and promotes only the very best of British craft. CAA is a membership organisation, comprising around 230 leading British-based makers, professionals who create one-off pieces in ceramics, glass, jewellery, metal, paper, textiles, wood and furniture. This is a unique model in the applied arts world. Our makers' work demonstrates a perfect harmony of technical skill and artistic vision. CAA's gallery is a respected place for learning about, appreciating and purchasing contemporary craft. Our mission is to show high-quality applied arts in an accessible and engaging way, through our gallery displays and exhibitions, educational events, outreach and publications. |
The objects and purposes of CAA are wholly charitable and are to preserve, promote and advocate for the applied arts in the United Kingdom. |
In particular, we aim to: |
Further the study and understanding of the crafts in the UK by encouraging people to learn from CAA's activities, exhibitions and displays. We support our maker membership by displaying, publicising, promoting and selling their work in the company's gallery, in other venues and online. |
Act as a champion for the crafts, working to ensure that excellence in the applied arts in Britain is recognised, valued, experienced and enjoyed by the widest possible audiences. |
In these ways, CAA supports the marketplace for craft in the UK and supports our nationally-distributed maker members by offering the public access to their work via a commercial gallery, which exposes them to diverse audiences and often offers them opportunities to extend their practice and participate in creative projects. |
MEMBERSHIP |
As a membership organisation for craft artists across disciplines, CAA is unique in the UK. We currently represent around 200 designer makers, spanning the entire spectrum of the applied arts. Members range from well-established artist-makers to graduates from leading applied art courses. |
Our members are craft professionals and are selected by a panel of their peers. Only professional makers working in the applied arts may apply for membership of CAA. This allows artists to exhibit and sell their work through the gallery. Membership is open to makers living and working in the United Kingdom for at least six months of the year. |
The panel is currently made up of five professional artist-makers, all respected leaders in their fields. Panel members represent their own specialist discipline but are also responsible for contributing to the selection of makers from each field. The current panel was formed in November 2014 and the serving members are: |
Michael Carberry (jewellery) |
Anna Gravelle (textiles) |
Contemporary Applied Arts (Registered number: 00899449) |
Report of the Trustees |
for the Year Ended 30 September 2022 |
Robert Cooper (ceramics) |
Helen Yardley (textiles) |
Marlene McKibbin (jewellery) |
FRIENDS OF CAA |
By supporting CAA, our Friends also support the arts and crafts of Britain. Membership privileges include preview information, invitations to private views, lectures and events. Friends are regularly notified about gallery events and also receive a discount on purchases. In line with CAA's 75th anniversary, in 2023 we will review the Friends of CAA programme and relaunch it. |
OUTREACH & EDUCATION |
The trustees are conscious that we were unfortunately not in a position to do any outreach or education activities but given the exceptional circumstances we had no alternative but to focus on the priorities of cutting costs and staffing the gallery ourselves. |
RADCLIFFE TRUST |
We received a grant from The Radcliffe Trust just before the end of the financial period. This is to be used to mentor a new graduate, commission an artwork and provide a showcase for their work. We will report on the outcome in the next financial period. |
FINANCIAL REVIEW |
Financial position |
a. Going concern |
The financial statements have been prepared on a going concern basis. The Trustees have reviewed the Company's forecasts and projections covering a period of 12 months from the date of signing these financial statements. As a result of the legacy of the Coronavirus pandemic, there remains uncertainty over whether the future cashflows will be sufficient to cover the Company's liabilities that fall due. The trustees have cut expenditures to the greatest extent possible but future revenues may still be insufficient to maintain a viable organisation. |
CAA was the beneficiary of an interest free SITR loan in 2019. During the pandemic, the maturity of this loan was extended to December 2022. As noted in the Trustees Report the lender has agreed to waive repayment and convert this into a Donation. This together with the associated gift aid will make significant progress in reducing the net deficit in the Company's reserves, and the Trustees believe that CAA will have sufficient resources to meet its obligations as they fall due in the next 12 months. However, there does still remain material uncertainty that may cast significant doubt on the Company's ability to continue as a going concern. |
Contemporary Applied Arts (Registered number: 00899449) |
Report of the Trustees |
for the Year Ended 30 September 2022 |
FINANCIAL REVIEW |
Reserves policy |
b. Reserves policy |
A review of the reserves policy to determine what level of reserves CAA should prudently maintain took into account: |
- CAA's cash flow sensitivity, based on the uncertain nature of CAA's sales and donations, |
- revenues compared with its fixed costs, |
- the amounts needed to pay CAA's creditors in the event of an unplanned winding-up, |
- the need for an additional contingency, including allowance for any on-going losses |
It was agreed that reserves would ideally be at least £60,000, equivalent to some four months of unrestricted expenditure. This target was not achieved in recent years but it remains a principle that a substantial reserve should be built up. |
c. Principal funding |
CAA runs on earned income, the majority of which is made through sales of the maker members' work. In addition to this, the maker members pay an annual fee, the total income from which represents about 10% of CAA's core running costs. We also seek donations and support (for exhibitions, education and outreach, publications and other activities) from grant-making trusts, foundations and individuals. We welcome 'support in kind' where appropriate. |
Contemporary Applied Arts (Registered number: 00899449) |
Report of the Trustees |
for the Year Ended 30 September 2022 |
STRUCTURE, GOVERNANCE AND MANAGEMENT |
Governing document |
a. Constitution |
CAA is registered as a charitable company limited by guarantee and was set up by a Memorandum of Association on 1 March 1967 as last amended on 9 August 1994. It was founded as the Crafts Centre of Great Britain in 1948 and changed its name to Contemporary Applied Arts (CAA) in 1987. |
b. Governance of the Board of Trustees |
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 management of Contemporary Applied Arts ("CAA") is the responsibility of the Board of Trustees who are elected and co-opted under the terms of the Articles of Association. |
The Articles of Association stipulate that the Board of Trustees consist of up to twelve members and that three of the Board members must be maker members. Trustees are eligible to serve for two three-year terms with re-election at the end of the first. The Chair holds office for two terms and there is a provision for extension if appropriate. Judith Unwin retired as Chair in December 2022 after the end of the accounting period. A search for a successor has been undertaken but has so far not been successful. |
New Trustees are identified and recruited through recommendations, particularly by members of CAA, Friends and fellow arts organisations. Trustees are chosen on the basis of their professional skills, which might be of value to CAA as a business and/or arts charity, and also for their personal interests and activities, which often include engagement within the applied arts. |
c. Organisational Structure and Decision-Making |
The Board of Trustees, who are the Trustees of the charity registered with the Charity Commission, are responsible for the executive decisions. |
d. Management of Conflicts and Related Parties |
The Board of Trustees has adopted a policy which requires its members to declare any conflicts of interest and the agenda for each Board of Trustees meeting includes an item inviting such disclosure. |
A Declaration of Conflicts of Interest Form highlights the conflict which might exist where work of a trustee who is also a maker is sold or exhibited by CAA on preferential terms not available to other makers. During the year all sales were on an arm's length basis and no work of a trustee was sold or exhibited on a preferential basis. During the year, the work of maker members who are currently serving as Trustees sold by CAA totalled £10,015 (2021: £3,448). |
e. Risk management |
CAA has identified risks faced by the organisation, completed a risk register and adopted a risk management policy in 2012. The Charities Commission guide for charities on how to approach risk management and Arts Council England's Introduction to Boards of Arts organisations were used as the basis for this. In each case, the risk map spells out the potential impact of the risk, steps taken by CAA to mitigate it and who is responsible for managing the risk. A traffic system then assesses the likelihood and potential impact of each risk before and after control measures are applied. The Board has a policy of reviewing the risk register and policy at least once a year. |
Contemporary Applied Arts (Registered number: 00899449) |
Report of the Trustees |
for the Year Ended 30 September 2022 |
STRUCTURE, GOVERNANCE AND MANAGEMENT |
Recruitment and appointment of new trustees |
Board of Trustees (as of the date the accounts were approved, in alphabetical order) |
David Eton |
David Eton is a Chartered Accountant with more than 30 years of experience in the financial services Industry predominantly working with smaller entrepreneurial businesses. He has been Treasurer since November 2021. |
Ofir Halfon |
Ofir is a proven business leader with a track record in the marketing industry, combining strategy and creative to drive tangible business results. He is the Global VP of Product for Brainlabs, an independent agency powered by technology with a fast-growing international presence around the globe. |
Over the past ten years, Ofir has worked with some of the world's leading brands, including Spotify, Dyson, ASOS, Meta and TikTok. In 2018, Ofir completed his master's studies at Imperial College London, where he researched the impact of Emerging Technologies on the digital marketing industry |
Marlene McKibbin Jeweller; Maker Trustee |
Marlene McKibbin is a leading contemporary jeweller. Born in Newry, Co Down, she holds a BA from Ulster College of Art and an M.Des from the Royal College of Art. She has been making and exhibiting jewellery for over four decades and has shown in the UK and internationally. Her work is held in many major collections including the Victoria & Albert Museum London, Aberdeen Art Gallery, National Museum of Scotland, British Council Collection, MIMA Middlesbrough, The Alice and Louis Koch Collection Switzerland, and Fuller Craft Museum Brockton, MA, USA. She is a long-standing CAA maker member and, since 2001, Associate Lecturer at Central Saint Martins. |
Rt Hon Dame Janet Paraskeva |
Janet has extensive experience of regulation and of leading Boards gained during a highly |
successful career in a range of high-profile national organisations. She was the first Chief |
Executive of the National Youth Agency and created the European Confederation of Youth Club |
organisations. She went on to establish and manage the England operation of the National |
Lottery Charities Board and was Chief Executive of the Law Society from 2000 to 2006. Janet |
was First Civil Service Commissioner from January 2006 and is currently Chair of the |
Appointments Commission for the states of Jersey. She is also Chair of the Board of the Council |
of Licensed Conveyancers, Chair of Primary Eye Care Services, Vice Chair of the Video |
Standards Council and a trustee of Contemporary Applied Arts. Janet was appointed Dame |
Commander of the Order of the British Empire in 2010. She is a member of the Privy Council. |
Helen Yardley Textiles Maker Trustee |
Helen Yardley was born in Plymouth, Devon. She studied printed and woven textiles at Manchester where she obtained a first class degree before obtaining her masters at the Royal College of Art. |
She has served as a Trustee of the Crafts Council from 2003 to 2007 and is an Honorary Fellow of Design Nation. |
Contemporary Applied Arts (Registered number: 00899449) |
Report of the Trustees |
for the Year Ended 30 September 2022 |
STRUCTURE, GOVERNANCE AND MANAGEMENT |
She has received notable commissions for British Ambassadors Residences, Moscow and Vienna, London Stock Exchange, Abu Dhabi Stock Exchange, Coutts Bank The Strand, Fidelity Investments Tokyo and London HQ. |
Her work is held in the V&A, House of Commons Collection, Crafts Council Collection, Southampton Art Gallery. In addition to the UK she has exhibited in the USA, Japan, Germany, France and Italy. |
REFERENCE AND ADMINISTRATIVE DETAILS |
Registered Company number |
Registered Charity number |
Registered office |
Trustees |
JR Unwin (resigned 31.12.2022) |
T Bevan (appointed 18.10.21; resigned 06.09.2022) |
D Eton (appointed 25.11.21) |
O Halfon (appointed 13.02.22) |
MP McKibbin |
Rt Hon Dame JH Paraskeva (appointed 18.10.21) |
GL Stewart (resigned 31.12.2022) |
S Ten Hompel (resigned 06.09.2022) |
HC Yardley (appointed 18.10.21) |
Independent Examiner |
Millards, Chartered Accountants |
Worth Corner |
Turners Hill Road |
Crawley |
West Sussex |
RH10 7SL |
Approved by order of the board of trustees on |
Contemporary Applied Arts |
Statement of Trustees' Responsibilities |
for the Year Ended 30 September 2022 |
The trustees (who are also the directors of Contemporary Applied Arts for the purposes of company law) are responsible for preparing the Report of the Trustees 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 that period. In preparing those financial statements, the trustees are required to |
- | select suitable accounting policies and then apply them consistently; |
- | observe the methods and principles in the Charity SORP; |
- | make judgements and estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business. |
The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to 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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
Independent Examiner's Report to the Trustees of |
Contemporary Applied Arts |
Independent examiner's report to the trustees of Contemporary Applied Arts ('the Company') |
I report to the charity trustees on my examination of the accounts of the Company for the year ended 30 September 2022. |
Responsibilities and basis of report |
As the charity's trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act'). |
Having satisfied myself that the accounts of the Company 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 your charity's accounts as carried out under Section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under Section 145(5) (b) of the 2011 Act. |
Independent Examiner's Report to the Trustees of |
Contemporary Applied Arts |
Independent examiner's statement - matters of concern identified |
Since your charity's gross income exceeded £250,000 your examiner must be a member of a listed body. I can confirm that I am qualified to undertake the examination because I am a member of the Institute of Chartered Accountants in England and Wales, which is one of the listed bodies. |
I have completed my examination. |
Material uncertainty related to going concern: I draw attention to note 1 in the financial statements on going concern, which indicates that, there is uncertainty over whether future cashflows will be sufficient to cover the Company's liabilities as they fall due. Due to the uncertain outcome of these cashflows, a material uncertainty exists that may cast a significant doubt on the Company's ability to continue as a going concern. |
I confirm that no other matters have come to my attention in connection with the examination giving me reasonable cause to believe that in any material respect: |
1. | accounting records were not kept in respect of the Company as required by Section 386 of the 2006 Act; or |
2. | the accounts do not accord with those records; or |
3. | the accounts do not comply with the accounting requirements of Section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; and |
4. | the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities (applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)). |
I confirm that there are no other matters to which your attention should be drawn to enable a proper understanding of the accounts to be reached. |
Michael A Millard FCA, Independent Examiner |
The Institute of Chartered Accountants in England and Wales |
Millards, Chartered Accountants |
Worth Corner |
Turners Hill Road |
Crawley |
West Sussex |
RH10 7SL |
16 June 2023 |
Contemporary Applied Arts |
Statement of Financial Activities |
(Incorporating an Income and Expenditure Account) |
for the Year Ended 30 September 2022 |
30.9.22 | 30.9.21 |
Unrestricted | Restricted | Total | Total |
fund | funds | funds | funds |
Notes | £ | £ | £ | £ |
INCOME AND ENDOWMENTS FROM |
Donations and legacies |
Charitable activities |
22,919 | - | 22,919 | 24,809 |
Sales | 247,928 | - | 247,928 | 156,963 |
Grants received | 9,500 | 3,000 | 12,500 | 93,461 |
Investment income | 3 | 160 | - | 160 | - |
Total |
EXPENDITURE ON |
Charitable activities |
Charitable activities | 317,668 | - | 317,668 | 285,570 |
Governance | 8,883 | - | 8,883 | 22,145 |
Other | 1,132 | - | 1,132 | 1,245 |
Total |
NET INCOME/(EXPENDITURE) | ( |
) | ( |
) |
RECONCILIATION OF FUNDS |
Total funds brought forward | ( |
) | ( |
) | ( |
) |
TOTAL FUNDS CARRIED FORWARD | ( |
) | ( |
) | (94,183 | ) |
Contemporary Applied Arts (Registered number: 00899449) |
Balance Sheet |
30 September 2022 |
30.9.22 | 30.9.21 |
Unrestricted | Restricted | Total | Total |
fund | funds | funds | funds |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 8 |
CURRENT ASSETS |
Debtors | 9 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 10 | ( |
) | ( |
) | ( |
) |
NET CURRENT ASSETS/(LIABILITIES) | ( |
) | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
( |
) |
( |
) |
( |
) |
CREDITORS |
Amounts falling due after more than one year |
11 |
( |
) |
( |
) |
( |
) |
NET ASSETS/(LIABILITIES) | ( |
) | ( |
) | ( |
) |
FUNDS | 13 |
Unrestricted funds: |
General fund | (139,068 | ) | (94,183 | ) |
Restricted funds: |
Radcliffe Trust Grant | 3,000 | - |
TOTAL FUNDS | ( |
) | (94,183 | ) |
The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 30 September 2022. |
The members have not required the company to obtain an audit of its financial statements for the year ended 30 September 2022 in accordance with Section 476 of the Companies Act 2006. |
Contemporary Applied Arts (Registered number: 00899449) |
Balance Sheet - continued |
30 September 2022 |
The trustees acknowledge their responsibilities for |
(a) | ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and |
(b) | preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company. |
These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime. |
The financial statements were approved by the Board of Trustees and authorised for issue on |
Contemporary Applied Arts |
Notes to the Financial Statements |
for the Year Ended 30 September 2022 |
1. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Contemporary Applied Arts is a Company registered by guarantee in England. The nature of the charity's operations and principal activities are to preserve, promote and advocate for the craftsmanship in the United Kingdom. |
The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - 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), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. |
Contemporary Applied Arts Limited meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy. |
The financial statements are presented in sterling which is the functional currency of the charity and rounded to the nearest £. The financial statements prepared are for the year ended 30 September 2022, and the comparative figures are for the year ended 30 September 2021. |
The members of the company are the Trustees named on page 10. In the event of the company being wound up, the liability in respect of the guarantee is limited to £1 per member of the company. |
Income |
All income is recognised once the Company has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably. |
For legacies, entitlement is taken as the earlier of the date on which either: the company is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the Trust that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the company has been notified of the executor's intention to make a distribution. Where legacies have been notified to the company, or the company is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is treated as a contingent asset and disclosed if material. |
Donated services or facilities are recognised when the company has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use of the company of the item is probable and that economic benefit can be measured reliably. In accordance with the Charities SORP (FRS 102), the general volunteer time of the Friends is not recognised and refer to the Trustee's report for information about their contribution. |
On receipt, donated professional services and facilities are recognised on the basis of the value of the gift to the company which is the amount it would have been willing to pay to obtain services or facilities of economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt. |
Contemporary Applied Arts |
Notes to the Financial Statements - continued |
for the Year Ended 30 September 2022 |
1. | ACCOUNTING POLICIES - continued |
Income |
Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation. |
Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable. |
Expenditure |
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefit will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset's use. |
Support costs are those costs incurred directly in support of expenditure on the objects of the company and include project management carried out at Headquarters. |
Charitable activities and Governance costs are costs incurred on the company's charitable operations, including support costs and costs relating to the governance of the company apportioned to charitable activities |
Tangible fixed assets |
A review for impairment of a fixed asset is carried out if events or changes in circumstances indicate that the carrying value of any fixed asset may not be recoverable. Shortfalls between the carrying value of fixed assets and their recoverable amounts are recognised as impairments. Impairment losses are recognised in the Statement of Financial Activities. |
Tangible fixed assets are carried at cost, net of depreciation and any provision for impairment. Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual value, over their expected useful lives. |
Depreciation is provided on the following bases: |
Gallery improvements | - over the remaining term of the lease |
Gallery equipment | - over 3 years |
Website | - over 5 years |
Plant and machinery | - 20% on cost |
Office equipment | - 33% on cost |
Taxation |
The charity is exempt from corporation tax on its charitable activities. |
Contemporary Applied Arts |
Notes to the Financial Statements - continued |
for the Year Ended 30 September 2022 |
1. | ACCOUNTING POLICIES - continued |
Fund accounting |
General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Company and which have not been designated for other purposes. |
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Company for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements. |
Pension costs and other post-retirement benefits |
The Company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents the contributions payable by the Company to the fund. |
Going concern |
The financial statements have been prepared on a going concern basis. The Trustees have reviewed the Company's forecasts and projections covering a period of 12 months from the date of signing these financial statements. As a combination of a number of factors including the legacy of the pandemic, there remains uncertainty over whether the future cashflows will be sufficient to cover the Company's liabilities that fall due. The Trustees have cut expenditure to the greatest extent possible but future revenues may still be insufficient to maintain a viable organisation. |
CAA was the beneficiary of an interest free SITR loan in 2019. During the pandemic, the maturity of this loan was extended to December 2022. As noted in the Trustees Report the lender has agreed to waive repayment and convert this into a Donation. This together with the associated gift aid will make significant progress in reducing the net deficit in the Company's reserves, and the Trustees believe that CAA will have sufficient resources to meet its obligations as they fall due in the next 12 months. However, there does still remain material uncertainty that may cast significant doubt on the Company's ability to continue as a going concern. |
Interest received |
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Company; this is normally upon notification of the interest paid or payable by the institution with whom funds are deposited. |
Investments |
Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the balance sheet date, unless the value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and presented as 'Gains/(Losses) on investments' in the statement of financial activities. |
Contemporary Applied Arts |
Notes to the Financial Statements - continued |
for the Year Ended 30 September 2022 |
1. | ACCOUNTING POLICIES - continued |
Stocks |
The Company holds consignment stock on behalf of individual sellers, however the risks and rewards of ownership remain with the sellers up to the point of sale. Accordingly, consignment stock is not recognised on the balance sheet. |
Debtors |
Trade and other debtors are recognised at the settlement amount after any trade discounts offered. |
Prepayments are valued at the amount prepaid net of any trade discounts due. |
Cash at bank and in hand |
Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account. |
Liabilities and provisions |
Liabilities are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. |
Liabilities are recognised at the amount that the Company anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide. |
Provisions are measured at the best estimate of the amount required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the statement of financial activities as a finance cost. |
Financial Instruments |
The Company only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method. |
Contemporary Applied Arts |
Notes to the Financial Statements - continued |
for the Year Ended 30 September 2022 |
2. | CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY |
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. |
Critical accounting estimates and assumptions: |
The Company makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are the estimated useful lives of fixed assets. |
3. | INVESTMENT INCOME |
30.9.22 | 30.9.21 |
£ | £ |
Interest received | 160 | - |
4. | NET INCOME/(EXPENDITURE) |
Net income/(expenditure) is stated after charging/(crediting): |
30.9.22 | 30.9.21 |
£ | £ |
Depreciation - owned assets |
5. | TRUSTEES' REMUNERATION AND BENEFITS |
There were no trustees' remuneration or other benefits for the year ended 30 September 2022 nor for the year ended 30 September 2021. |
Trustees' expenses |
There were no trustees' expenses paid for the year ended 30 September 2022 nor for the year ended 30 September 2021. |
Contemporary Applied Arts |
Notes to the Financial Statements - continued |
for the Year Ended 30 September 2022 |
6. | STAFF COSTS |
The average monthly number of employees during the year was as follows: |
30.9.22 | 30.9.21 |
Employees |
7. | COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES |
Unrestricted | Restricted | Total |
fund | funds | funds |
£ | £ | £ |
INCOME AND ENDOWMENTS FROM |
Donations and legacies |
Charitable activities |
24,809 | - | 24,809 |
Sales | 156,963 | - | 156,963 |
Grants received | 34,961 | 58,500 | 93,461 |
Total | 333,199 | 58,500 |
EXPENDITURE ON |
Charitable activities |
Charitable activities | 285,570 | - | 285,570 |
Governance | 22,145 | - | 22,145 |
Other | 1,245 |
Total | 308,960 | - |
NET INCOME |
Transfers between funds | 65,600 | (65,600 | ) | - |
Net movement in funds | ( |
) |
RECONCILIATION OF FUNDS |
Total funds brought forward | (184,022 | ) | 7,100 | ( |
) |
TOTAL FUNDS CARRIED FORWARD |
(94,183 |
) |
- |
(94,183 |
) |
Contemporary Applied Arts |
Notes to the Financial Statements - continued |
for the Year Ended 30 September 2022 |
8. | TANGIBLE FIXED ASSETS |
Gallery | Plant & | Office |
improvements | machinery | equipment | Website | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 October 2021 |
Additions |
At 30 September 2022 |
DEPRECIATION |
At 1 October 2021 |
Charge for year |
At 30 September 2022 |
NET BOOK VALUE |
At 30 September 2022 |
At 30 September 2021 |
9. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
30.9.22 | 30.9.21 |
£ | £ |
Trade debtors |
Other debtors |
Prepayments and accrued income |
10. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
30.9.22 | 30.9.21 |
£ | £ |
Other loans (see note 12) |
Trade creditors |
Social security and other taxes |
Other creditors |
Accruals and deferred income |
Contemporary Applied Arts |
Notes to the Financial Statements - continued |
for the Year Ended 30 September 2022 |
11. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
30.9.22 | 30.9.21 |
£ | £ |
Other loans (see note 12) | 59,971 |
12. | LOANS |
An analysis of the maturity of loans is given below: |
30.9.22 | 30.9.21 |
£ | £ |
Amounts falling due within one year on demand: |
Other loans | 105,200 | 108,367 |
Amounts falling between one and two years: |
Other loans - 1-2 years |
Amounts falling due between two and five years: |
Other loans - 2-5 years |
Amounts falling due in more than five years: |
Repayable by instalments: |
Other loans more 5yrs instal | 10,006 | 23,548 |
13. | MOVEMENT IN FUNDS |
Net |
At | movement | At |
1.10.21 | in funds | 30.9.22 |
£ | £ | £ |
Unrestricted funds |
General fund | (94,183 | ) | (44,885 | ) | (139,068 | ) |
Restricted funds |
Radcliffe Trust Grant | - | 3,000 | 3,000 |
TOTAL FUNDS | ( |
) | (41,885 | ) | (136,068 | ) |
Contemporary Applied Arts |
Notes to the Financial Statements - continued |
for the Year Ended 30 September 2022 |
13. | MOVEMENT IN FUNDS - continued |
Net movement in funds, included in the above are as follows: |
Incoming | Resources | Movement |
resources | expended | in funds |
£ | £ | £ |
Unrestricted funds |
General fund | 282,798 | (327,683 | ) | (44,885 | ) |
Restricted funds |
Radcliffe Trust Grant | 3,000 | - | 3,000 |
TOTAL FUNDS | ( |
) | (41,885 | ) |
Comparatives for movement in funds |
Net | Transfers |
At | movement | between | At |
1.10.20 | in funds | funds | 30.9.21 |
£ | £ | £ | £ |
Unrestricted funds |
General fund | (184,022 | ) | 24,239 | 65,600 | (94,183 | ) |
Restricted funds |
Better Bankside | 3,750 | - | (3,750 | ) | - |
Arts Council Cultural Recovery Fund |
3,350 |
- |
(3,350 |
) |
- |
Arts Council Emergency Grant | - | 58,500 | (58,500 | ) | - |
7,100 | 58,500 | (65,600 | ) | - |
TOTAL FUNDS | (176,922 | ) | 82,739 | - | (94,183 | ) |
Comparative net movement in funds, included in the above are as follows: |
Incoming | Resources | Movement |
resources | expended | in funds |
£ | £ | £ |
Unrestricted funds |
General fund | 333,199 | (308,960 | ) | 24,239 |
Restricted funds |
Arts Council Emergency Grant | 58,500 | - | 58,500 |
TOTAL FUNDS | 391,699 | (308,960 | ) | 82,739 |
Contemporary Applied Arts |
Notes to the Financial Statements - continued |
for the Year Ended 30 September 2022 |
14. | RELATED PARTY DISCLOSURES |
The following craft items made by the Board of Trustees were sold through CAA's gallery during the year / period: |
YE 30 September 2022 | YE 30 September 2021 |
£ | £ |
Helen Yardley | 769 | - |
Simone ten Hompel | 2,175 | 990 |
Marlene McKibbin | 7,071 | 2,458 |
------------ | ------------ |
10,015 | 3,448 |
------------ | ------------ |
The Charity previously received a loan of £15,000 from a Trustee which is repayable on 24th November 2025. There are no conditions attached to the loan and the Trustee anticipates repayment to be made when the loan matures, unless future cashflows allow for earlier repayments. |
During the year the Charity received £1,500 (2021 - £3,500) in donations from its Trustees, before gift aid. The donors did not attach any conditions to their gifts which require the Charity to alter the nature of any of the existing activities. |
During the year the Charity received £9,134 (2021 - £6,055) sales income and £355 (2021 - £225) membership income from its Trustees. |
15. | FUNDS |
£3,000 Radcliffe Trust grant was received for expenditure to discover, support and enrich emerging talent. |