The trustees present their annual report and financial statements for the year ended 31 December 2023.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's governing document, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019).
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake in pursuit if the charity's objects, which are:
(i) to advance the arts for the public benefit through the promotion of
contemporary art, especially visual art;
(ii) advancement of public education in the understanding, appreciation,
production and practice of contemporary art; and
(iii) the relief of poor artists through the provision of affordable workspace,
studio facilities and artistic advice
The charitable objects are fulfilled by two main areas of activity, which take place within Brock Keep, a grade II listed building owned by Reading Borough Council. Although responsibility for the fabric of the building remains with the landlord, OHOS uses the building to provide affordable artists studios and to operate a public contemporary art gallery, five seven one Oxford Road Gallery.
Exhibitions programme
In February we hosted an exhibition 'FRESH #1: Escape' by MA Fine Art students from Reading School of Art. This is an example of our on-going relationship with Reading University.
In March we presented ‘Hummingbirds and Hamburgers’ –a solo exhibition of work by Christine Ellison and ‘Confronting the Disappearances’ – a group show of artists from Hong Kong organised by Charles Wong.
For a second year we also hosted a two-day build project by second year architecture students from Reading School of Architecture who created a temporary structure in the courtyard of the Keep.
In April, Peter Driver organised an exhibition of recent graduates from Winchester School of Art ‘Fresh #2: Boiling Point’ which also included public access printmaking and writing workshops.
In May we presented an Open Studios exhibition ‘Condition Critical’ as part of the West Berkshire and North Hampshire Open Studios scheme. Studio and Associate members exhibited current examples of their work and led tours of the artists’ studios at The Keep.
June saw an exhibition organised by Reading International ‘Home is Where the Music Is’ with artworks by Chris Zhongtian Yuan. An accompanying screening took place at The Biscuit Factory.
Associate member Caroline Streatfield organised ‘I'll Meet You There’ - an exhibition of painting in September, which also featured screening and artworks hosted at The Biscuit Factory.
We participated in the national Heritage Open Days event, welcoming members of the public to the Keep for tours of the gallery and studios over the course of one weekend.
In November the gallery was host to a two-week laboratory ‘Island Life’, organised by Lisa-Marie Gibbs and Philip Newcombe to physically test out the more ephemeral and itinerant practices that is The Engine Room, an independent arts and mental health collective based out of Dee Park Estate in Reading initiated by a group of creatives facing mental health challenges across our local communities.
Overall the programme of exhibitions and events attracted over 300 visitors in 2023, many of whom were first-time visitors.
We intend OHOS to be a centre for excellence in contemporary art and to support artists in the development of their careers while they contribute to the cultural life of Reading and the wider cultural scene. OHOS artists continue to be involved in solo and group exhibitions nationally and internationally.
It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to one year's typical expenditure. The trustees consider that reserves at this level will ensure that, in the event of a significant drop in income, they will be able to continue the charity’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year.
Trustees are satisfied that the accounts reflect a sound year with an increase in the assets for 2023.
The company's current policy concerning the payment of trade creditors is to follow the CBI's Prompt Payers Code (copies are available from the CBI, Centre Point, 103 New Oxford Street, London WC1A 1DU).
The company's current policy concerning the payment of trade creditors is to:
settle the terms of payment with suppliers when agreeing the terms of each transaction;
ensure that suppliers are made aware of the terms of payment by inclusion of the relevant terms in contracts; and
pay in accordance with the company's contractual and other legal obligations.
The charity is a company limited by guarantee.
The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:
All current Trustees are due to retire at the AGM in 2024, and may be reappointed for a further three-year term. The trustees have embarked upon an open recruitment process to seek new trustees, with advice from Reading Voluntary Action.
None of the trustees has any beneficial interest in the company. All of the trustees are members of the company and guarantee to contribute £1 in the event of a winding up.
Up to September OHOS was supported by one part-time freelance administrator, Ksenija Krotin. After her retirement and exploring the option of hiring a replacement it was decided to see if we could rely solely on the management committee to undertake the administrative tasks.
All other work to support the development and day to day operation of the charity was undertaken by trustees and members on a voluntary basis.
The trustees' report was approved by the Board of Trustees.
In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Open Hand Open Space Limited for the year ended 31 December 2023, which comprise the statement of financial activities and the related notes from the charity’s accounting records and from information and explanations you have given us.
This report is made to the charity's trustees, as a body. Our work has been undertaken solely to prepare for your approval the financial statements of Open Hand Open Space Limited and state those matters that we have agreed to state to the charity's trustees, as a body. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Open Hand Open Space Limited and the charity's trustees as a body, for our work or for this report.
It is your duty to ensure that Open Hand Open Space Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and surplus of Open Hand Open Space Limited. You consider that Open Hand Open Space Limited is exempt from the statutory audit requirement for the year, and is not required to obtain an independent examiner's report.
We have not been instructed to carry out an audit or a review of the financial statements of Open Hand Open Space Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.
The accountancy firm is a member of the Institute of Chartered Accountants in England and Wales, and are therefore subject to its ethical and other professional requirements, which are detailed at icaew.com/members handbook.
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
Open Hand Open Space Limited is a private company limited by guarantee incorporated in England and Wales. The registered office is 571 Oxford Road, Reading, Berkshire, RG30 1HL.
The financial statements have been prepared in accordance with the charity's memorandum and articles, the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019). The charity is a Public Benefit Entity as defined by FRS 102.
The charity has taken advantage of the provisions in the SORP for charities not to prepare a Statement of Cash Flows.
On 5 January 2021, Open Hand Open Space converted from a not-for-profit Registered Society to a not-for-profit Company limited by guarantee. Later in the year the company registered as a charity with the Charity Commission. The comparative information has been presented on a like-for-like basis as the activities and objects of Open Hand Open Space remain unchanged.
The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors or grantors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
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 benefits 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 are allocated on the portion of the asset’s use.
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.
At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.
Grant income
Assoc. members dues
Exhibitions, projects and other income
Rent
Rates and water
Repairs and renewals
Licenses and insurance
Light and heat
Insurance
Public relations
Website costs
Post and stationery
Telephone
Sundry expenses
Subcontractors
Fire safety
Accountancy
During the year, studio rents totalling £4,332 (2022 - £4,332) were received from trustees. Such amounts are shown within donations and legacies in the statement of financial activities.
No trustee expenses have been incurred in the period.
The average monthly number of employees during the year was:
The restricted funds of the charity comprise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be used.
The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.