Watermans Annual Report 2011-12

Registered number: 01164904 Charity number: 267426

HOUNSLOW ARTS TRUST LIMITED

(A company limited by guarantee)

TRUSTEES' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2012

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CONTENTS

Page

Reference and administrative details of the charity, its Trustees and advisers

1

Trustees' report

2 - 32

Independent auditors' report

33 - 34

Consolidated statement of financial activities

35

Consolidated balance sheet

36

Company balance sheet

37

Notes to the financial statements

38 - 50

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REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 MARCH 2012

Hounslow Arts Trust Ltd Watermans, High Street, Brentford, Middlesex TW8 0DS +44 (0)20 8232 1020 www.watermans.org.uk Company registration number 1164904 Registered charity number 267426 Registered office Watermans, 40 High Street, Brentford,

Middlesex TW8 0DS Board of directors & Trustees The Directors of the charitable company (the charity) are its trustees for the purpose of charity law and throughout this Report are collectively referred to as the Board. Members of the Board, at the time of this Report, are as follows: Chair Andrew Ward Vice Chair Manjit Hunjan

Graeme Baker Stuart Cruickshank Mary Dalton Sue Marsh Maggie McNab Harjinder Singh-Heer Duncan Smith L B Hounslow nomination Cllr Colin Ellar Company Secretary Jan Lennox Chief Executive Officer Jan Lennox Bankers Nat West 100 High Street, Brentford, Middlesex TW8 8AY Auditors Nyman Libson Paul Regina House, 124 Finchley Road, London NW3 5JS Solicitors Bates Wells & Braithwaite 2-6 Cannon Street, London EC4M 6YH

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TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2012 INTRODUCTION The Trustees (who are also directors of the charity for the purposes of the Companies Act) present their annual report together with the audited financial statements of The Hounslow Arts Trust Ltd (the Company and the Group) for the year ended 31 March 2012. The Trustees confirm that the annual report and financial statements of the Company and the Group comply with the current statutory requirements, the requirements of the Company and the Group’s governing document and the provisions of the Statement of Recommended Practice (SORP), ‘Accounting and Reporting by Charities’ issued in March 2005 and updated in May 2008. AIMS & OBJECTIVES Hounslow Arts Trust Ltd is a charitable trust for the promotion of the arts. It manages and operates Watermans, the major arts centre in West London, presenting a year-round programme of high-quality performance, visual arts and film in its riverside venue. It also engages with a wide range of communities across Hounslow and West London through its extensive programme of participative arts. It is especially acknowledged for its digital and new media arts development and is one of very few year-round exhibitors of artists’ work in this field in London and, indeed, the UK. Aims The purposes of Hounslow Arts Trust Ltd as set out in its Memorandum & Articles are:

to advance the arts

to promote mental and physical health and relieve sickness especially amongst (but not limited to) people living in West London using techniques involving the arts

the prevention of crime using techniques involving the arts

to provide relief using arts based techniques for refugees and their dependents who are in conditions of need, hardship or distress through the provision of arts

to provide, in the interests of social welfare, facilities for arts-based recreation and leisure activities for the inhabitants of West London and the surrounding area being facilities: - of which those persons have need by reason of their youth, age, infirmity, disablement,

poverty or social or economic circumstances; and - which will improve the conditions of life for such persons by promoting their physical, mental

and spiritual wellbeing. The vision which shapes Watermans’ annual activities is to inspire communities through creative practice. In particular, it works to build an engaging and interactive programme with as wide a range of West London communities as possible, and to bring those communities together through cultural participation. It also takes an active lead in promoting engagement with innovative digital and new media arts practice.

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In shaping the organisation’s objectives for the year and planning its activities, the Board has considered the Charity Commission’s guidance on public benefit, including the guidance on public benefit and fee charging. In particular, the Board gives careful consideration to the reach and accessibility of the organisation’s activities to the public, including those on low incomes, with limited mobility or with other barriers to accessing our services. Watermans’ objectives in 2011/12 Watermans’ continuing objective is to offer a high quality, coherent and integrated programme which appeals to as wide a range of West London communities as possible. Participation is integral to everything that it does, and it offers a varied mix of ‘entry points’ to the programme to facilitate and encourage different communities, including those who are marginalised, to engage with arts, culture and creativity. In order to deliver a balanced programme which is stimulating and engaging to as many people as possible, Watermans has developed the following programme strands:

New media arts, which uses new and digital technologies as an integral part of the creative process in visual and performance-based work. This programme is critical in connecting with young audiences and is also highly effective in engaging wider communities in ideas and critical debate about local and global development

Performing arts, incorporating theatre, music, dance and comedy. The programme includes regular events of particular interest to South Asian communities

Participative arts, which is crucial to building creative communities and proactively engaging those who typically access arts and cultural programmes less than other groups. This programme includes a wide range of regular workshops/classes and intensive projects, and offers opportunities both at Watermans and out in communities across West and South London

Children’s theatre, including performances every weekend and during school holidays, and a Christmas show during December

Independent cinema, seven days per week, offering 1200 screenings per year for mainstream audiences and those with particular needs

Outdoor arts, which includes theatre and dance performances, drive-in movies and festivals, delivered principally in Hounslow town centre allowing Watermans to reach new audiences and bring major London-wide cultural events to the borough

In 2011/12, the cultural landscape in London was, predictably, dominated by the development of the arts and cultural programme to celebrate the London 2012 Olympic and Paralympic Games. Watermans has been fully committed to participating in the London 2012 cultural programme to strengthen its own strategic position but also to contribute to the opportunities for West London communities to engage in the Games and benefit from their legacy. We therefore continued to work actively with partners to develop a dynamic programme which will genuinely engage West London communities in the excitement of the Games. It was acknowledged that the opportunities and expectations associated with the Games were, however, set within an economic climate which continued to be challenging. The effects of significant restructuring in the public sector created a dynamic environment which continued to pose challenges, but also offer many new opportunities.

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During 2011/12, Watermans’ approach, therefore, was to focus on diversification of income and increasing the impact of the artistic programme. This was broken down into the following key areas: 1 developing the scale and impact of the arts programme, specifically:

delivering excellent and accessible programmes through a move towards fewer but larger-scale projects

producing an International Festival of Digital Art as a major 2012 project

increasing our impact across West London through direct delivery of projects in new places

developing greater visibility across London through high-profile projects 2 developing the audience experience of Watermans, specifically:

continued ‘animation of the venue’ through programming in public areas of the building

becoming more digitally driven in the delivery of the programme and in audience communications

3 building the health of the organisation, specifically:

increasing the level of reserves and therefore financial strength of the organisation

developing the organisation’s flexibility in devising programmes effectively with an increasing number of commissioners and partners

continuing the organisational development programme to ensure Watermans is able to deliver its services to a standard that fully meets the expectations of its audiences and funders

CREATIVE PROGRAMME Overview 2011/12 Watermans had a particularly successful year in 2011/12. The creative programme delivered many excellent projects and there were some important strategic developments pursued during the year. Despite the challenging economic climate, the programme attracted strong audiences and secured several new sources of funding. One of the highlights of the year was the launch of Watermans’ International Festival of Digital Art. The Festival runs from January to October 2012 and presents a series of 6 exhibitions by world-class digital artists in celebration of the London 2012 Olympic and Paralympic Games. Alongside the Festival’s exhibitions, Watermans commissioned Geometry, an innovative and extraordinary laser light sculpture by leading French media artist, Félicie d’Estienne d’Orves. The sculpture is installed outside Watermans and will light up the night sky throughout the Festival.

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Watermans also presented 2 major installations, Alsos and Akousmaflore, by Scenocosme, the

renowned French media arts collective which uses digital technologies to establish a relationship

between plants and sound and enable audience gestures and movements to generate random music

in their interactive environments. Alsos created a beautiful, immersive, night-time forest in which

visitors explored, torchlight in hand, the branches, plants and luminescent flowers. Reacting to the

changes in light, the flowers emitted a range of distinctive sounds, creating a complex and eerie

soundscape.

Watermans also continued its strategy to ‘animate the building’, with the aim of growing new audiences for the new media arts programme and improving the visitor experience to the venue. Akousmaflore, a small interactive garden of living plants, was installed in the entrance foyer. Reacting to the invisible electrical aura of humans, the plants sing when the audience lightly strokes them, creating a ‘plant concert’. The installation was extremely popular and engaged many people with new media arts who had not previously attended projects presented formally in the Gallery. Following the success of installing digital work around the building, we have programmed several further projects in the public spaces of the venue which are related to Gallery exhibitions. Taking this a step further, the Board have now designated funds to commission 2 new digital art installations to be presented online. The commissions will aim to reach new audiences and also enhance the experience of audiences at the venue. The learning and participation programme, delivered across 9 London boroughs, incorporated large-scale innovative media projects with young people, and a wide range of regular, ongoing activities in schools, youth and community centres and in specialist settings such as mental health units and day care centres. During the year, there were 35,000 attendances at workshops, classes and participative arts projects. Most of these activities were free of charge to participants. A particularly exciting initiative to develop the arts and mental health programme was started in January 2012. Based on discussions with mental health care professionals, potential improvements to programme design were identified, and a new longer term, film making project initiated with people diagnosed with anxiety and/or depression. With support from LB Hounslow and the Social Investment Business, a specialist health evaluator has been embedded in the project from the start. The project will conclude in summer 2012 but interim results appear promising. During the year, Watermans continued to work with partners in Hounslow to develop its programme of Outdoor Arts in the borough, allowing it to present an increasing number of high quality and exciting projects which would not be possible in the venue and to increase the scale and scope of the cultural offer available to West London communities. The Outdoor Arts programme will contribute to the London 2012 culture programme leading up to, and during, the Games, and extend the reach of Watermans’ programme to a wider range of West London communities. Audience attendance during the year was very good across the programme. The children’s theatre programme had notably good attendance throughout the year, and the cinema achieved its best audiences ever. In addition, the developing outdoor arts programme enabled us to reach a significant, new audience. In 2011/12, Watermans continued to diversify its income base, delivering a range of new and extended arts programmes through public sector contracts. As grant funding is increasingly replaced by contracts for services, Watermans has been developing its capacity to meet the demands of securing and delivering contracts for the past five years. In 2009, the organisation was awarded an investment

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from Futurebuilders, a government funding scheme managed by the Social Investment Business, to support third sector organisations with the potential to deliver public services under contract. The £230K investment, comprising a mix of grant and loan finance, has supported an organisational development programme which has ensured that Watermans is now well-placed to secure and deliver multiple contracts efficiently and effectively. During 2011/12, we continued this organisational development programme, particularly focusing on quality assurance for the services we offer, and introducing new quality management processes as we work towards ISO:9001 accreditation. The organisational development undertaken to date is already proving successful, as evidenced by the excellent contract customer feedback we receive. Watermans has again been successful in securing new public sector contracts during the year, despite the challenging financial climate within the public sector. We secured several new contracts, allowing us to extend the reach of our services and, for the first time, started delivering programmes in RB Kensington & Chelsea. Overall, income from public sector contracts increased by a further £81K, which represents growth of 16% on the previous year. Watermans was also awarded the Social Enterprise Mark in 2011, guaranteeing its credentials in trading as a social enterprise and delivering services which put ‘people and planet’ before profit. Review by programme strand New media arts The new media arts programme was both varied and successful. It included high-profile exhibitions which brought new work to London audiences, along with new commissions, artists’ talks and extensive projects with young people. The programme delivered many projects which were leading-edge in their creative use of technologies, and which provided both a platform for industry debate and direct participation and interaction with audiences. Watermans delivered 16 exhibitions during the 12 month period. Particular highlights included:

Alsos & Akousmaflore by Scenocosme – two major installations by the leading French media collective, creating connections between nature and technology. In Alsos, the Gallery was turned into a forest in which the viewer explored, with flashlight in hand, the luminous branches and fluorescent flowers reacting to the light and creating a symphony of sounds. In Akousmaflore, a small interactive garden of living musical plants hung in the main entrance area reacted to human gestures and gentle contact. Each plant reacted with different languages and songs to create a random musical universe or ‘plant concert’. The Scenocosme installations were a key project in the London Design Festival and attracted considerable press and media coverage.

A Brief History of Privatisation was the first major solo show at a gallery in London for established artist, Ellie Harrison. A Brief History of Privatisation was a new work developed for the Gallery, and was presented alongside 2 existing works, Vending Machine and Toytown in other public areas of the building.

Nisha Duggal’s Things to Make and Do was a new installation of moving image portraits documenting the hobbies and pastimes of a disparate group of people. Simply shot video portraits were animated into an orchestrated and composited schema, through which the

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viewer could compare and contrast the different people in the film, reflecting on what ‘makes us tick’. Again, this was the artist’s first solo show in London.

Sonic Bed, an installation by Kaffe Matthews and Eliane Radigue, encouraged listeners to lie in a large wooden bed, listening to slowly evolving soundscapes and ‘feeling’ the music move up, down and around their bodies in ever changing patterns of vibration. Watermans worked with Sound and Music to present Sonic Bed, as part of the first major UK retrospective of the work of Eliane Radigue, one of the most celebrated and influential of living composers. This London-wide festival staged a curated selection of Radigue’s work including a unique presentation of her installation works.

ENTER, Watermans’ annual showcase to promote the best of the graduating Asian new media artists, has provided a successful platform for emerging artists in London for the past 7 years. Selected artists have also received further support, including training and mentoring, further exhibitions of their work and commissions. ENTER11 included work by 7 new artists that involved innovative processes and diverse material ranging from interactive installation and film to graphic and communication design. Following this year’s exhibition, Alkesh Parmar went on to show the same piece at the Parliamentary exhibition, Materials for Living, and won a prize. Akhila Krishnan also won first prize in the RCA’s Man Group Drawing Prize with her Stitch Series, contributed to the Opening Ceremony of the London 2012 Olympic Games and has been invited to present a solo show in Watermans’ Riverside Gallery in autumn 2012. In January 2012, Watermans launched its International Festival of Digital Art in celebration of the London 2012 Olympic and Paralympic Games. The Festival presents leading digital artists from each of the 5 major continents and an additional British artist during Games-time. The Festival’s theme is audience interaction and participation. The first 2 exhibitions in the International Festival of Digital Art were presented during the 2011/12 financial year. These were Cymatics by Suguro Goto (representing Europe) and UNITY by One Room Shack Collective (representing Africa). The Festival continues until October 2012. Alongside the Festival exhibitions, Watermans commissioned Geometry, an extremely innovative laser light sculpture by French artist, Félicie d’Estienne d’Orves. The sculpture’s ever-changing laser beams will light up the sky above Watermans throughout the Festival until October 2012. The sculpture was commissioned with funds from the Mayor of London as a major cultural project for London 2012. The Festival has already generated significant international media coverage of Watermans’ new media arts programme and attracted group visits from universities around Europe. Watermans continued to build new partnerships during the year to support the development and promotion of the programme. The most significant partnership development has been with Goldsmiths for the International Festival of Digital Art. Watermans worked with Goldsmiths to develop a programme of seminars and events linked to each exhibition in the festival. These featured renowned artists and academics leading discussions about engagement and participation in digital art and presenting new work. The events have been extremely popular. The drive to make digital arts accessible to a wide public audience was pursued through a range of initiatives, including the major projects highlighted above. In addition, workshops and courses in digital photography, video, gaming, animation and sound design engaged people of all ages and abilities in learning about creative media and producing and presenting their own work in a professional arts centre.

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Performing arts Watermans’ performing arts programme included theatre, music, dance and circus and delivered 103 professional performances during the year. There was a particularly strong Asian performance programme, most notably within theatre, and a significant representation of international artists. The programme included:

A 2-week visit from Primetime Theatre, one of India’s leading theatre companies, as part of an international 20th anniversary tour. Two productions, Love on the Brink and Dance Like a Man were presented. Watermans’ presentation of Love on the Brink was the UK premiere of this production

A double-bill of contemporary theatre by Tamasha, one of the UK’s leading Asian theatre companies

The world-premiere of Mindwalking by Bandbazi of the new play by internationally-renowned writer, Tanika Gupta. The play was co-produced by Watermans and received excellent reviews

D’Arranged Marriage, by Tarun Mohanbhai from New Zealand, as part of a UK tour

Kathak Mughlia, a storytelling form of dance performed by Fasih Rehman, who is considered to be one of the finest male kathak dancers in the world. This project was presented in collaboration with Akademi

This performance programme was complemented by the theatre programme for children and young people, and the outdoor arts programme, which are reported more fully in subsequent sections. Participative arts The participative arts programme offers 2000 opportunities per year for people to engage directly in the arts and creative activities. Over 35,000 people attend workshops, classes and courses and take part in creative projects. The programme is delivered across 9 London boroughs – Hounslow, Harrow, Brent, Hillingdon, Ealing, Hammersmith & Fulham, Richmond, Kingston, and Kensington & Chelsea. There has been extremely fast growth in the participative arts programme over the past 6 years, driven by larger-scale projects and an increase in funding through public sector contracts. The move to contract funding has provided Watermans with the resources to deliver participative arts programmes much more consistently. The ability to deliver programmes throughout the year, whether for one, two, three or four years’ duration, is more efficient to manage and achieves more sustainable outcomes for participants. There has been a high level of demand during 2011/12 for projects in all the key target groups – children and young people, people with learning disabilities, and people with mental health issues. Children and young people remained a high priority and the programme continued to develop a wider range of activities. Summer jammin’, a programme of creative workshops during the school holidays, again provided activities in creative media, theatre, street dance, ballet, Afro-fusion and Bollywood dance, and included projects such as Make Your Own Pop Video. Similarly, intensive half-term

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projects catered for all ages, and there were regular weekly activities at Watermans in music, dance

and drama.

Elsewhere, there were many new developments enabling us to reach further communities in different parts of West London. Examples include:

A new programme commissioned by LB Ealing has provided weekly music and storytelling sessions at 3 of Ealing’s Children’s Centres; these sessions work with under-5s and their parents, developing creative expression and language skills in communities with English as an additional language

In summer 2011, LB Brent commissioned Watermans to deliver an intensive summer programme with young people who were at risk of being NEET from September; four groups of young people participated in LightGRAFFITI projects with international artist, Tine Bech

In addition, Watermans started working with RB Kensington & Chelsea to broaden their arts provision for young people during school holidays

Watermans also delivered exciting, larger-scale, media arts projects. Take Me To London continued to work with young people across West London to develop digital photography, digital story-telling, and film and video work about London landmarks. The project is now funded by BAA Communities Trust and enables disadvantaged young people to learn new creative skills, develop their team-working, and visit other parts of London which they have not been to before. Each group’s work is uploaded onto a googlemap, building up a picture of young people’s perspectives of their home city. The work produced was also developed into a full exhibition in the Gallery. Watermans’ programme with people with learning disabilities has been established and expanding for 17 years. The programme for adults in Hounslow provided regular weekly workshops which included a drumming group, and circus skills with Albert & Friends Instant Circus. A new development in 2011/12 was Create-Play-Destroy, a visual arts project in which participants created a series of interactive sculptural art works and spaces. The workshop sessions explored various themes including inside and outside, building and growing objects, scale, movement, play and interaction. Participants experimented with different materials including scrap materials, foam, wire, clay, etc and created spaces using projections and lights. Over the weeks, the group created sculptures and spaces, dismantled them, and constantly recycled them into new pieces. The whole process was documented with cameras and film and this, combined with some of the final sculptures produced, was used to create an exhibition of the participants’ work in the Riverside Gallery.

The Moon River club night, run by people with learning disabilities and supported by Watermans, continued to attract up to 300 people for each event. The project includes DJ training for participants who then DJ at the club nights. In addition, the club committee leads on the theme for each event, programming of music, dance and video guest artists, and producing publicity. Watermans also continued its programme for young people with disabilities during the year, with weekly workshops and a drama club at Watermans, and an extensive range of dance projects in special schools and different community spaces across Hounslow and Ealing. We also increased the number and range of special cinema screenings and theatre performances for young people with high needs and their families, which were extremely popular throughout the year. The arts and mental health programme maintained a range of activities throughout the year. Projects included a large-scale visual arts project involving all the main day centres in Hounslow, culminating in an exhibition in the Riverside Gallery to celebrate World Mental Health Day. A previous, very successful digital photography project, in partnership with West London Mental Health Trust and the

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University of West London, worked again with patients at The Cassell, the specialist national centre in

Richmond for people with severe personality disorders, which also led to an exhibition at Watermans.

The most significant development in the arts and mental health programme in 2011/12, however, was the start of a 6-month film project with people diagnosed with anxiety and depression. Watermans worked with a GP specialist in mental health to review the programme and consider how it could be developed further to deliver improved outcomes for participants. As a result, a longer term project was developed which included a robust evaluation by a specialist health evaluator. This includes evaluation using established mental health assessment systems, participant observation by the evaluator, and interviews with project participants before, during and after the project, including 6-month and 12-month follow-up interviews after the end of the project. The project has been funded by LB Hounslow’s Innovation Fund and the Social Investment Business. The project started in January 2012 and continues into 2012/13. The results of the project will be used to inform future development of the arts and mental health programme. Cinema The cinema continues to offer a busy programme of high quality, independent film, attracting a regular local audience and in 2011/12 was more successful than in any other year in Watermans’ history. The cinema operates 7 days per week and offers an average of 24 screenings per week. Film screenings for specific groups such as families, parents and babies, and matinees which are particularly popular with older people, are presented regularly each week. Audiences are consistent and the cinema programme drives considerable footfall to the building. In 2011, Watermans purchased the digital projection equipment which had previously been leased through the UK Film Council Digital Screen Network. The shift from celluloid to digital film distribution continues and Watermans currently screens over 90% of its film programme digitally. We expect the transition to digital to be complete by 2013, apart from very occasional exceptions. Digital projection offers more short-term flexibility in the number of screenings, length of runs, etc of different films and allows film scheduling which is much more responsive to customer demand. The digital film projector also offers a range of opportunities to expand the programme, in terms of the range of films offered, presentation of digital arts projects such as artists’ moving image work and screenings of live cultural events from elsewhere. For example, Watermans was part of the ‘Shakespeare in Cinema’ project with the Globe Theatre, and showed 4 Shakespeare plays in 2011/12. The series achieved 75% capacity audiences and received very positive feedback. There was also a substantial Asian film programme, with 75 screenings throughout the year, including festivals and events with London Indian Film Festival, Tongues on Fire, and a Niranjan Pal celebration with the South Asian Cinema Foundation. Theatre and performance for children and young people The children’s theatre programme provides high-quality performances developed by professional theatre companies specifically for a young audience. The programme is well-established and attracts a predominantly local audience. The weekly performances introduce children aged 3 to 9 to the theatre and provide associated opportunities for workshops and creative activities. Additional performances and activities are provided during school holidays.

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In 2011/12, the children’s theatre programme was extremely successful, offering 57 performances

and achieving very strong audiences. The Christmas show alone, A Night Before Christmas,

attracted over 4000 children to its schools and public performances.

Watermans also presented a programme of professional theatre and performance designed specifically for young people, aged 13-19. This provides high quality performances, with accompanying workshops, to encourage young people to engage with contemporary performance which addresses themes that are particularly relevant to them. It also offers the opportunity to retain audiences from the established children’s theatre programme as they get older and look for an alternative arts experience. One of the year’s most successful productions for this audience was Theatre Centre’s Under a Foreign Sky which explored the experience of 3 young Kosovan Serb migrants who arrive in Britain and want to make a new start in their young lives. Outdoor arts Watermans continued to develop its new Outdoor Arts programme inspired by, and linking to, the London 2012 cultural programme. The programme was designed to develop new audiences in the borough and also to contribute to increased animation of Hounslow town centre. The programme was continued in 2011/12 with the support of LB Hounslow and the Mayor’s Outer London Fund, which enabled us to present some of the leading outdoor artists and performance companies from the UK and Europe. These have included:

Taxi! by Avant Garde Dance Company

stunning night-time performances of Glow Clubs and The Sweet Life by the internationally-acclaimed Gandini’s

Bollywood Brass Band

2 events with leading fire artists, Flame Oz

2 drive in movie screenings in Hounslow town centre – of Devdas and The Blues Brothers

Hounslow Fashion Weekend, which was seen by over 10,000 people over the course of the two days on Friday 24 & Saturday 25 February 2012. The events included catwalk shows, pop up musicals, bands and samba performances, and ‘performance hair art’ by award winning artists, Osadía, from Barcelona, with active participation from the audience

Audience surveys conducted at the outdoor events showed that attenders came from across the borough and beyond, and included many people who did not regularly attend arts events. Watermans has continued its drive to improve the accessibility of its outdoor events and to promote them more effectively to disabled audiences. The initiative has been very successful with a significant number of people with disabilities attending events and providing positive feedback on their experience.

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The organisation is currently planning a significant outdoor arts programme for the London 2012 Cultural Olympiad. In addition, it is working actively with the Greater London Authority to ensure West London communities benefit from a strong cultural programme linked to the Games. In support of this, Watermans is hosting one of the Mayor’s Culture Squad outdoor arts apprentices from January 2012. Organisational development Programme and contract management Watermans is continuing its organisational development programme, much of which has been undertaken to allow the organisation to respond fully to the opportunities in public sector contracting. In the previous year, development of the staff structure and significant upgrading of programme management and other organisational systems had been undertaken to allow us to pursue new sources of funding and manage multiple partnerships and contracts efficiently and effectively. During 2011/12, the organisational development programme has prioritised work towards ISO:9001 accreditation. We are working with a specialist consultant to work towards ISO:9001 compliance and accreditation. During the past 12 months, we have:

updated our Quality Policy to meet ISO standards

introduced the ISO system of setting Quality Objectives for each 6-month period, which are then reviewed and updated every 6 months by a Board and senior management team sub-group

trained key staff in PRINCE2 project management

introduced a new Customer Feedback procedure (public customers)

introduced a new Contract Customer evaluation procedure (public sector contract customers)

restructured our server as a precursor to introducing a new system for document & record control

implemented new customer care systems within the Finance Team

developed and implemented new purchasing guidelines for all staff

implemented a more structured building and facilities maintenance regime to ensure consistency of operation

An investment of £230K by the Social Investment Business through its Futurebuilders programme has supported, and will continue to support, this organisational development. Customer and audience feedback Watermans’ new contract customer feedback form, which all commissioners are invited to complete at the end of the contract, or annually if the contract is for more than 1 year, is proving effective. Feedback has been excellent, with 100% of commissioners being confident or very confident in Watermans’ ability to deliver consistently high quality services, and 100% stating that their experience of Watermans is better or significantly better than other service providers.

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During the past year, we have also actively sought feedback from our audiences. Key elements of this are:

an annual survey among customers from the past year to assess and track overall satisfaction and attitude to key elements of the ‘public’ service. The findings are used to direct strategic emphasis over the following 12 months.

a feedback card system has been introduced throughout the venue to capture individual comments and complaints.

feedback/comments are collected for each exhibition/installation and are recorded and used as input into the evaluation of each project

All participative arts projects are now incorporated into an online evaluation process that records the level of activity as well as an assessment of the outcomes of each project. Environmental responsibility and performance Since our first Environmental Policy was implemented in 2009, Watermans has made steady improvements to its carbon footprint. This year, we became a member of Ecovenue, a significant theatre-specific environmental project run by The Theatres Trust. Ecovenue aims to improve the environmental performance of about 50 London theatres and raise awareness of how to make theatres ‘greener’. Ecovenue is promoting the sustainability of theatres and the reduction of carbon emissions through the provision of free, theatre-specific, environmental advice. Membership of Ecovenue has given us access to the following tools which help us to understand how our building works:

an advisor who is working with us on our environmental performance

a 'heat-loss' audit of our building using thermal imaging equipment

access to a utilities logging system

access to a network of both peers and experts Having implemented a number of energy-saving steps in our building, our most recent Display Energy Certificate (DEC) indicates a fall of 20% in our annual energy usage. We expect to be able to reduce this further during the coming year with the help of the tools mentioned above. As reported earlier, Watermans has started to increase its outdoor arts programming and has actively sought to improve its environmental performance in delivering outdoor events. We have sourced and used environmentally responsible providers, particularly power providers, and wherever possible we have used local suppliers. We have reviewed the access information we provide for our events and offered clear advice about alternatives to car use, with links to public transport websites. As we gain outdoor event experience, this is something which can be built upon further.

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Social Enterprise Mark

In 2011, Watermans was awarded the Social Enterprise Mark, which is a certification to show that an organisation is an ethnical business, showing social and environmental responsibility. Businesses displaying the Mark give assurance to customers that they are driven by social or environmental objectives and are trading to benefit people and planet. Achieving the Social Enterprise Mark also allows Watermans to be listed in the only online directory of certified social enterprises, which is a valuable way of promoting our services. Future plans 2012 represents a breakthrough year for the artistic programme. The International Festival of Digital Art, a laser light sculpture in the sky above Watermans and an extensive programme of outdoor arts will provide a substantial and exciting programme linked to, and inspired by, the London 2012 Games. The programme will offer world-class art to local communities and bring international attention to Hounslow and West London. This provides a new base from which to develop the scale and quality of the artistic programme in future years. It also stimulates a renewed determination to reach disadvantaged communities, especially in Hounslow, who do not currently engage with the arts. Watermans also aims to extend its programme to respond to new opportunities and new demands for its services. We will focus on our core competencies and established core services, where we have a strong track record and a thorough understanding of the issues. From this base, we will develop new projects which allow us to respond to emerging opportunities and to do so with minimum risk. The development of the programme is set within a difficult economic climate. Whilst many sources of income for the arts are likely to be severely constrained during the next few years, the opportunities within public sector contracts are significant, as long as organisations are able to scale up and deliver higher volume services. Watermans is now well placed to do this, but must ensure it manages the risks. The plan for 2012/13 is therefore focused on building the scale and quality of the programme, capitalising on the opportunities associated with the London 2012 Games, gradually extending the range of products we offer and scaling up our delivery of public sector contracts. This can be broken down into the following key areas which are closely linked and, in many cases, mutually reinforcing: 1 developing the reach and sustainability of the arts programme, specifically:

- developing new services which flow from our core programmes and core competencies

- extending the children’s and young people’s programme to meet increasing demand in key areas

- achieving greater impact across West London through an extended outdoor arts

programme, with a particular focus on Hounslow

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- developing a broader performing arts programme in the theatre

- expanding our range of partners to support development of the programme 2 developing the audience experience of Watermans, specifically:

- continuing to programme in the public spaces of the venue - starting to develop an online offer to increase distribution of artistic product and audience

engagement with the programme - improvements to the experience of visiting the venue

3 building the health of the organisation

- increasing the financial strength of the organisation, through increased annual revenues and increased productivity

- developing the organisation’s capacity to deliver higher-value public sector contracts

- developing sustainability through new revenue streams, e.g. from the private sector, directly

through schools, etc - continuing to build the profile of the organisation - retaining the ability to sense trends in the market and be responsive to change

A particularly important piece of work for 2012/13 is a review of the performing arts programme in the theatre. In the past, whilst the programme has included performances for children and young people and other communities, the major strength has been in Asian theatre, music and dance. The Asian arts programme has been supported for many years by London Councils and the Arts Council. London Councils’ funding programme for the arts ceased in 2011 and, from April 2012, the Arts Council will focus its funding support on new media arts. The organisation has considered the impact of these changes on future programming. The theatre programme must be financially viable. It has also been agreed that it is desirable to broaden the theatre programme to attract a wider audience, whilst continuing to incorporate programming that meets the cultural needs of the significant South Asian communities in Hounslow and West London. A review of the options for the development of a successful theatre programme will be undertaken in 2012. Watermans intends to work with an external consultant to bring a fresh perspective to the new strategy. A revised theatre programme will be launched in early 2013. STRUCTURE, GOVERNANCE & MANAGEMENT Hounslow Arts Trust Ltd is a company limited by guarantee and a registered charity, established in 1984. Its charitable purpose is the promotion and advancement of the arts in all their forms, and the improvement of social conditions through the provision of arts. These objects are set out in its governing document which is its Memorandum and Articles of Association.

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The governing body is the Board whose members are non-executive and unpaid. The Board meets

regularly, retains full and effective control of the company and monitors the executive. The Board

takes major strategic decisions and has ultimate responsibility for the conduct and financial stability of

the organisation.

To facilitate effective operations, the Board delegates authority to the Director for the management and artistic control of Watermans. ‘Director’ is the traditional title used in the sector for the chief executive post although it is not a director under the terms of the Companies Act, nor are other members of the executive team whose titles include the word ‘director’. It is the duty of the Director to provide the vision, leadership and direction that will enable Watermans to implement its strategic plans and ensure that the organisation’s management is efficient, effective and in accordance with good business practice. The Board delegates to the Director full control over the selection and presentation of all projects forming the creative programme at, and under the auspices of, Watermans. The framework for the programme is set by the Board within the programme strategy, and is monitored throughout the year. The Director and other members of the executive team generally attend meetings of the Board. The Board appoints and monitors the performance of the Director, and reviews the quality, effectiveness and timeliness of information provided to the Board by the executive team. The Board determines the contracts of employment for all staff. It also reviews the remuneration of all staff annually. The Board has access to independent professional advice if necessary, at Watermans’ expense. All Board members have access to the advice and services of the Company Secretary who is responsible to the Board for ensuring that Board procedures are followed. The affairs of Watermans are subject to continuous scrutiny by its major funders, Arts Council England and London Borough of Hounslow. Board management & development Appointment & terms of office of Board members As set out in the Articles of Association, the Board has a minimum of 8 members and a maximum of 15. London Borough of Hounslow has the power to nominate 1 elected member to the Board who is subject to the appointment processes of the Council and the guidelines on appointment to public office as they apply to Local Government nominees. The Board has the power to appoint its other members. The Board reviews its structure and composition regularly to ensure it has the required competencies to fulfil its duties and responsibilities. It reviews its membership annually against the required mix of competencies and, in the light of that review, makes new appointments as necessary. Vacancies for Board members are advertised in the national press and are subject to a formal recruitment process. Successful candidates are invited to attend a minimum of three Board meetings on a probationary basis, after which the Board may decide to appoint them to the Board.

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New Board members are co-opted to the Board at the time of their initial appointment following the probationary period, and are then subject to formal appointment at the next Annual General Meeting. They are then appointed for an initial term of 4 years. This initial term may be followed by a re-appointment for a further period of 4 years. The member must then leave the Board for a minimum of 1 year, before any re-appointment could be considered. Board members at the date of this Report are listed on the opening page. All Board members who served during the year under review were: Andrew Ward (Chair), Graeme Baker (appointed 26 March 2012), Stuart Cruickshank, Mary Dalton (appointed 28 November 2011), Cllr Pritam Grewal, Manjit Hunjan, Ahmed Ifabua (retired 26 March 2012), Sue Marsh, Maggie McNab and Duncan Smith. Induction & training of Board members New Board members attend 2 induction meetings to brief them on the organisational structure, the Board’s decision-making processes, the strategic plan and recent financial performance. Training sessions on topics including the company’s legal structure, and the legal responsibilities of company directors and charity trustees are provided for all Board members. In addition, the Board reviews any further development and training needs on an annual basis, and arranges training events and briefing sessions as necessary. Board management & organisation The Board meets approximately 8 times a year. There is a Futurebuilders Sub-Group, chaired by the Vice Chair of the Board, which meets 4 times a year to oversee the progress of the organisational development project funded by the Government’s Futurebuilders programme. Specifically, it monitors implementation of the project business plan, including cash flow, income achievement and any issues and risks associated with the project. The group reports to the full Board after each of its meetings. In addition, there is a Relocation Sub-Group, formed of 3 Board members, an external specialist adviser and appropriate members of the executive team, to review matters relating to the proposed relocation to a new site. This group also reports to the Board. Other temporary project teams are formed for particular purposes as necessary. All teams or sub-committees operate to terms agreed by the Board. Remuneration of trustees and related parties None of our trustees receive remuneration or other benefit from their work with the charity. In line with guidance from the Charity Commission and the Department for Culture, Media and Sport, the organisation has a Conflict of Interest Policy and is committed to ensuring that all stakeholders can have confidence in the Trust’s decision-making processes. The purpose of the Policy is to protect both the organisation and the individuals involved from any appearance of impropriety, and also to set out

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procedures for the declaration and management of actual, or perceived, conflicts of interest. This Policy applies to Board Members and all staff. The Policy requires Board Members and all staff of Hounslow Arts Trust Ltd to act in good faith and in the best interests of the organisation. They are expected to strive to avoid any conflict of interest between the interests of the organisation on the one hand, and their own personal, professional, and business interests on the other. This includes avoiding actual conflicts of interest as well as the perception of conflicts of interest. In the current year, no related party transactions were reported. Internal control & risk management The Board reviews the effectiveness of internal controls, including financial and compliance controls and risk management systems. The internal control systems are designed to meet the needs of Watermans and the risks to which it is exposed, to manage those risks and to provide reasonable reassurance against loss. Established regular procedures, including budgetary controls, operate to monitor the receipt of projected income and both revenue and capital expenditure. The Board has reviewed and assessed the risks to which the organisation may be exposed. Specific actions and responsibilities have been agreed for mitigating them. The risk management process is ongoing, and is regularly reviewed by the Board. Actions required to mitigate risks are incorporated into the organisation’s Strategic Plan. Finance & control The Board monitors and reviews all aspects of the financial performance, financial management, internal financial and management reporting arrangements, including the preparation of budgets. Audit All issues relating to the preparation and production of the annual financial statements of the organisation and its subsidiaries are reviewed and monitored by the Board. Each year, the Board considers the appointment of the external auditors, their remuneration and terms of engagement. Connected companies & charities The charity’s wholly owned subsidiary, Sharedart Ltd, was established to operate the commercial facilities and services which are principally the bar and restaurant and hire of space to external parties. The profits of the company are donated to the charity. The charity is also affiliated to Watermans Development Trust. As part of the structural review of the charity and its affiliated companies and charities, Watermans Development Trust has proposed that it be wound up as all its activities can be conducted through Hounslow Arts Trust Ltd. The Charity Commission has given consent to de-register Watermans Development Trust and this process is

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currently under way. Watermans Activities Group has objects related to those of Watermans. It has an independent trustee body and has had no financial or other direct relationship with Watermans since 2000. FINANCIAL REVIEW Watermans’ key financial objective is to ensure financial stability and continued solvency year on year so that it can pursue its organisational aims and objectives. For the financial year ending 31 March 2012, Watermans increased its turnover to £1,340,312, achieving growth of 5.3% on the previous year, and reporting a profit of £33,218. It begins the new financial year with a balance of £470,555 on unrestricted reserves. From April 2011, LB Hounslow moved from grant funding to commissioned services. Through an open procurement process, Watermans secured the arts and culture contract for the borough, worth £240K pa for 4 years. In addition, we secured a contract for work with young people worth £15K pa for 4 years. Combined with Arts Council funding of £100K pa, these contracts are important in maintaining the organisation’s financial stability through to 2015. The organisation continued to secure additional, alternative funding streams during the year, supporting its intention to diversify its income base. We have prioritised funding through public sector contracts, building on the work we have done through the Futurebuilders programme. These new income streams, combined with further organisational efficiency savings, allowed Watermans to achieve a small profit on the year. This will be used to increase the Reserves Fund and to create a Designated Fund of £25K to invest in new developments in the creative programme. Watermans has adopted SORP 2005 in preparing these financial statements, and the statement of financial activities (SOFA), balance sheet and notes are set out from page 26 onwards. Principal funding sources Watermans generates income from a range of sources including box office sales, trading income, public sector contracts and other sundry sources, and receives grant funding from Arts Council England. Public sector contracts & fee-based work Watermans again increased its public sector contracts and fee-based work in 2011/12. Funding from these sources rose by a further £81K, or 16%, on the previous year, to £590K. Watermans’ largest contract is with LB Hounslow, to provide the arts and cultural service for the borough. The contract is worth £240K pa and runs for a period of 4 years from 2011-15. Watermans also delivered an arts programme for adults with learning disabilities through a contract with London Borough of Hounslow’s Adult Services. This contract had a value of £24K in 2011/12.

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Additional contracts included the provision of a year-long programme of arts activities for young people with disabilities with LB Hounslow, music and storytelling at 3 Children’s Centres with LB Ealing, and creative media projects for young people at risk of becoming NEET with LB Brent. Watermans also started to deliver outdoor arts programmes through public sector contracts in 2011/12 and will aim to increase this source of income in future years. Watermans also completed delivery of its cultural programmes for London Councils in August 2011. The services included participative arts programmes for disadvantaged young people, increased access to culture for disadvantaged communities, and the enhancement of Londoners’ involvement in cultural activity linked to London 2012. Arts Council England Watermans received funding of £222,323 from Arts Council England in 2011/12. Due to a significant reduction in its own grant from Central Government, Arts Council England has reviewed its regular funding to all organisations with effect from April 2012. It created a new system of funding for ‘National Portfolio Organisations (NPOs)’ for which there was a competitive application process. Watermans was accepted into the new National Portfolio for a 3-year period from 2012-15, and will receive £100K in 2012/13. The Arts Council’s NPO funding will be directed to support of the new media arts programme. Box office income The organisation has a pricing policy which aims to ensure that anyone, whatever their means, is able to participate in our activities, to attend theatre performances or cinema screenings and view our exhibitions. The majority of our learning and participation programmes are free of charge, as are all of our exhibitions. All events in the theatre, and film screenings in the cinema, are moderately priced and offer a wide range of concessions and other discounts for those on lower incomes. Despite the continuing difficult economic climate, box office receipts in 2011/12 were £331K, showing a small increase on the previous year. Audiences for children’s theatre were particularly strong and box office income from the cinema this year was the highest ever. Trading Watermans’ principal area of trading is the operation of the bar and restaurant. This is conducted through Sharedart Ltd, the company’s subsidiary. All profits from the catering operation are donated by the subsidiary to Watermans for investment in the organisation’s activities. In addition, Watermans is able to hire space to commercial or community organisations when a particular space in the building is not in use for the regular programme. The income from this service also contributes to the development of the programme. In 2011/12, the trading subsidiary made a net contribution of £101K. Donations Watermans has steadily built an income stream from individual and corporate donations. In 2011/12, this contributed £58K to the organisation’s funds.

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Reserves and Financial Policies Reserves policy The Board has reviewed the organisation’s needs in line with guidance issued by the Charity Commission. Hounslow Arts Trust Ltd’s annual income is, broadly, split evenly between unrestricted and restricted income. It secures unrestricted income from ticket sales and donations, including a substantial donation from its trading subsidiary each year. It also receives a small proportion of its income in the form of an unrestricted annual grant from statutory sources. The remainder of its income is restricted and includes public sector contracts and project grants. All of these income sources are susceptible to external factors, some of which could impact upon the organisation in a sudden or unpredictable manner. In addition, maintenance of a large building carries a certain level of risk in terms of unplanned expenditure. It is desirable, therefore, to hold reserves to protect the organisation from serious disruption to its work. In 2010, the trustees agreed the need for a Reserves Fund to cover fluctuations in income or unplanned expenditure, and planned to establish a fund of £50,000 over 7 years. Despite the challenging economic climate, the organisation has had 3 successful years and has been able to set aside £12,000 in 2010, a further £10,000 in 2011, and £33,000 in 2012. The Reserves Fund therefore now stands at £55,000.

In the medium term, Watermans aims to relocate to a new building within the planned redevelopment of Brentford town centre. There are now initial signs that the development is gaining momentum. The trustees wish to set aside further funds to support the costs associated with a potential relocation and therefore intend to increase the Reserves Fund to £70,000 by 2014. It is also possible that there will be a remaining fixed asset value for the current building which would need to be written off at the point of relocation. As clearer information about the redevelopment becomes available, the trustees will continue to review their financial planning for the relocation.

The reserves policy will continue to be reviewed by the Board annually, however, or within the 12-month period in the case of any unexpected event which causes a significant change in the financial position of the organisation. Designated funds The Board committed itself to reviewing staff pay during 2011/12, following a pay freeze for all staff for the previous 4 years. The Board designated funds of £7K to fund a one-off bonus payment to all staff during 2011/12. The payments were made during 2011/12 and the designated fund was therefore fully expended during the year. In March 2012, the Board designated funds of £20K for 2 digital art commissions. These are to be completed by March 2014. In addition, the Board designated a further £5K to provide for replenishing technical equipment for the participative arts programme. This is also to be fully expended by March 2014.

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Restricted funds These are funds which have been earmarked by the donor or grant-maker for specific purposes within the overall aims of the organisation. The funds are analysed between long term and short term. Funds are for project activity and details are set out in note 19 of the accounts. Investment powers and policy Under the Memorandum and Articles of Association, the Board has the power to invest funds which are not required in the short term in any way they believe to be appropriate. In formulating its investment policy, Watermans has recognised that whilst it may have surplus funds to invest, these are likely to be called upon in the short term. Available funds are therefore kept in an interest bearing deposit account which minimises interest rate risk and maximises returns and liquidity. Funds have been invested with Bank of Scotland plc (registered in Scotland, number SC327000), an institution authorised and regulated by the Financial Services Authority, and National Westminster Bank plc (registered in England and Wales, number 929027), also an institution authorised and regulated by the Financial Services Authority. Property interests Watermans has a lease from London Borough of Hounslow for the use of its current building. The lease has a term which expires in 2024.

STATEMENT OF TRUSTEES' RESPONSIBILITIES The Trustees (who are also directors of The Hounslow Arts Trust Ltd for the purposes of company law) are responsible for preparing the Trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company and charity 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 the group and of the incoming resources and application of resources, including the income and expenditure, of the charitable group for that period. In preparing these financial statements, the Trustees are required to:

select suitable accounting policies and then apply them consistently;

observe the methods and principles in the Charities SORP;

make judgments 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 group will continue in operation.

The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable group and 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

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company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

PROVISION OF INFORMATION TO AUDITORS Each of the persons who are Trustees at the time when this Trustees' report is approved has confirmed that:

so far as that Trustee is aware, there is no relevant audit information of which the charitable group's auditors are unaware, and

that Trustee has taken all the steps that ought to have been taken as a Trustee in order to be aware of any information needed by the charitable group's auditors in connection with preparing their report and to establish that the charitable group's auditors are aware of that information.

In preparing this report, the Trustees have taken advantage of the small companies exemptions provided by section 415A of the Companies Act 2006.

This report was approved by the Trustees on 20 August 2012 and signed on their behalf, by:

Andrew Ward, Chair

Manjit Hunjan, Vice Chair

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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HOUNSLOW ARTS TRUST LIMITED

33

We have audited the financial statements of Hounslow Arts Trust Limited for the year ended 31 March 2012 set out on pages 24 to 39. The financial reporting framework that has been applied in their preparation is applicable law and the Financial Reporting Standard for Smaller Entities (effective April 2008) (United Kingdom Generally Accepted Accounting Practice applicable to Smaller Entities). This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006, section 151 of the Charities Act 2011 and regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and its members, as a body, for our audit work, for this report, or for the opinion we have formed.

Respective responsibilities of Trustees and auditors As explained more fully in the trustees' responsibilities statement, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. We have been appointed as auditors under the Companies Act 2006 and section 151 of the Charities Act 2011 and report to you in accordance with those Acts. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board's Ethical Standards for Auditors.

Scope of the audit of the financial statements An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the group's and the parent company's circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the Trustees; and the overall presentation of the financial statements. In addition, we read all the financial and non-financial information in the Trustees' report to identify material inconsistencies with the audited financial statements. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report.

Opinion on financial statements In our opinion the financial statements:

give a true and fair view of the state of the group's and the parent charitable company's affairs as at 31 March 2012 and of the group's incoming resources and application of resources, including its income and expenditure, for the year then ended;

have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice applicable to Smaller Entities; and

have been prepared in accordance with the requirements of the Companies Act 2006 and the Charities Act 2011.

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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HOUNSLOW ARTS TRUST LIMITED

34

Opinion on other matter prescribed by the Companies Act 2006 In our opinion the information given in the Trustees' report for the financial year for which the financial statements are prepared is consistent with the financial statements.

Matters on which we are required to report by exception We have nothing to report in respect of the following matters where the Companies Act 2006 and the Charities Act 2011 requires us to report to you if, in our opinion:

the parent charitable company has not kept adequate and sufficient accounting records, or returns adequate for our audit have not been received from branches not visited by us; or

the parent charitable company financial statements are not in agreement with the accounting records and returns; or

certain disclosures of trustees' remuneration specified by law are not made; or

we have not received all the information and explanations we require for our audit; or

the Trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption in preparing the Trustees' report.

Jennifer Pope (senior statutory auditor)

for and on behalf of

Nyman Libson Paul Chartered Accountants Statutory Auditors

Regina House 124 Finchley Road London NW3 5JS Date: 20 August 2012 Nyman Libson Paul are eligible to act as auditors in terms of section 1212 of the Companies Act 2006.

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CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 31 MARCH 2012

Designated funds

Restricted funds

Unrestricted funds

Total funds

Total funds

Note

2012 £

2012 £

2012 £

2012 £

2011 £

INCOMING RESOURCES

Incoming resources from generated funds:

Voluntary income 2 - 614,204 281,106 895,310 882,217

Activities for generating funds 3 - - 105,926 105,926 105,105

Investment income 4 - - 115 115 112

Incoming resources from charitable activities 5 - - 338,961 338,961 285,629

TOTAL INCOMING RESOURCES - 614,204 726,108 1,340,312 1,273,063

RESOURCES EXPENDED

Costs of generating funds:

Costs of generating voluntary income 6 - - 31,415 31,415 21,491

Fundraising expenses and other costs 3 - - 4,249 4,249 2,686

Charitable activities 11 - 651,490 590,725 1,242,215 1,196,461

Governance costs 7 - - 29,215 29,215 35,335

TOTAL RESOURCES EXPENDED

10

- 651,490 655,604 1,307,094 1,255,973

NET INCOMING RESOURCES/(RESOURCES EXPENDED) BEFORE TRANSFERS

-

(37,286)

70,504

33,218

17,090

Transfers between Funds 19 25,000 - (25,000) - -

NET MOVEMENT IN

FUNDS FOR THE YEAR 25,000 (37,286) 45,504 33,218 17,090 Total funds at 1 April 2011

- 146,806 425,051 571,857 554,767

TOTAL FUNDS AT 31

MARCH 2012

25,000 109,520 470,555 605,075 571,857

The notes on pages 38 to 50 form part of these financial statements.

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(A company limited by guarantee) REGISTERED NUMBER: 01164904

36

CONSOLIDATED BALANCE SHEET

AS AT 31 MARCH 2012

2012 2011

Note £ £ £ £ FIXED ASSETS Tangible assets 14 338,447 392,937 CURRENT ASSETS Debtors 16 118,933 150,901 Cash at bank 538,649 410,047 657,582 560,948

CREDITORS: amounts falling due within

one year 17 (240,536) (204,250)

NET CURRENT ASSETS 417,046 356,698 TOTAL ASSETS LESS CURRENT LIABILITIES 755,493 749,635 CREDITORS: amounts falling due after

more than one year 18 (150,418) (177,778) NET ASSETS

605,075

571,857

CHARITY FUNDS

Designated funds 19 25,000 - Restricted funds 19 109,520 146,806 Unrestricted funds 19 470,555 425,051

605,075

571,857

The financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006 and in accordance with the Financial Reporting Standard for Smaller Entities (effective April 2008). The financial statements were approved by the Trustees on 20 August 2012 and signed on their behalf, by:

Andrew Ward, Chair



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(A company limited by guarantee) REGISTERED NUMBER: 01164904

37

COMPANY BALANCE SHEET

AS AT 31 MARCH 2012

2012 2011

Note £ £ £ £ FIXED ASSETS

Tangible assets 14 338,447 392,937 Investments

15 2 2

338,449 392,939 CURRENT ASSETS

Debtors 16 221,182 244,978

Cash at bank 418,005 305,325

639,187 550,303

CREDITORS: amounts falling due within

one year 17 (228,340) (199,804)

NET CURRENT ASSETS 410,847 350,499 TOTAL ASSETS LESS CURRENT LIABILITIES 749,296 743,438 CREDITORS: amounts falling due after

more than one year 18 (150,418) (177,778) NET ASSETS 598,878 565,660 CHARITY FUNDS

Designated funds 19 25,000 - Restricted funds 19 109,520 146,806 Unrestricted funds 19 464,358 418,854

598,878 565,660

The financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006 and in accordance with the Financial Reporting Standard for Smaller Entities (effective April 2008). The financial statements were approved by the Trustees on 20 August 2012 and signed on their behalf, by:

Andrew Ward, Chair



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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2012

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1. ACCOUNTING POLICIES

1.1 Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention and in accordance with the Financial Reporting Standard for Smaller Entities (effective April 2008). The financial statements have been prepared in accordance with the Statement of Recommended Practice (SORP), "Accounting and Reporting by Charities" published in March 2005, applicable accounting standards and the Companies Act 2006.

The statement of financial activities (SOFA) and balance sheet consolidate the financial statements of the company and its subsidiary undertaking. The results of the subsidiary are consolidated on a line by line basis.

No separate SOFA has been presented for the company alone as permitted by section 408 of the Companies Act 2006 and paragraph 397 of the SORP.

1.2 Company status

The company is a company limited by guarantee. The members of the company are the Trustees named on page 1. 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.

1.3 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 particular projects.

Restricted funds are subject to specific conditions set by donors or grant making bodies as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the accounts.

1.4 Incoming resources

Voluntary income including donations, gifts and legacies and grants that provide core funding or are of general nature are recognised where there is entitlement, certainty of receipt and the amount can be measured with sufficient reliability. Such income is only deferred when: - The donor specifies that the grant or donation must only be used in future accounting periods; or - The donor has imposed conditions which must be met before the charity has unconditional entitlement.

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1. ACCOUNTING POLICIES (continued)

39

1.5 Resources expended

Expenditure is recognised when a liability is incurred. Contractual arrangements and performance related grants are recognised as goods or services when they are supplied. Other grant payments are recognised when a constructive obligation arises that results in the payment being unavoidable. - Costs of generating funds are those costs incurred in attracting voluntary income, and those incurred in trading activities that raise funds. - Charitable activities include expenditure associated with the presentation of performances, exhibitions, film screenings and learning and participation programmes and include both the direct costs and support costs relating to these activities. - Governance costs include those incurred in the governance of the charity and its assets and are primarily associated with the constitutional and statutory requirements. - Support costs include central functions and have been allocated to activity costs categories on a basis consistent with the use of resources, e.g. allocating property costs by floor areas, or per capita, staff costs by time spent and other costs by their usage.

1.6 Tangible fixed assets and depreciation

Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual value, over their expected useful lives on the following bases:

Building and capital works - 5% straight line basis Theatre, cinema and gallery

equipment - 16.67% straight line basis / 20% straight line basis /

25% straight line basis Cafe and bar equipment - 20% straight line basis Computer equipment - 33.33% straight line basis Administration and general - 20% straight line basis

1.7 Fixed asset grants

Grants received for the restricted purpose of funding fixed assets for charity use are accounted for in the Statement of Financial Activities as a restricted fund when they become available. The restricted funds are reduced annually by transfers of amounts equivalent to depreciation charges over the expected useful life of the asset concerned.

1.8 Direct taxation

As a charity the company is generally exempt from income and capital gains tax, but not from VAT. Irrecoverable VAT is charged within management and support expenditure.

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2. VOLUNTARY INCOME

Restricted funds

Unrestricted funds

Total funds

Total funds

2012 £

2012 £

2012 £

2011 £

Donations - 58,783 58,783 55,005

London Borough of Hounslow - - - 240,000

Arts Council England - 222,323 222,323 238,800

Project grants 11,950 - 11,950 42,945

Public sector contracts 589,949 - 589,949 263,972

Cinema Europa 12,305 - 12,305 11,495

Futurebuilders capital grant - - - 30,000

Voluntary income

614,204

281,106

895,310

882,217

The grants from Arts Council England are provided as annual revenue funding to assist Hounslow Arts Trust Limited in the payment of its overheads and programming expenses. The grants were expended for the purpose for which they were granted. Included within public sector contracts is £74,656 received during the year from London Councils as a contribution to three programmes of work. These are as follows: £12,176 as a contribution towards an arts project with young people to reflect on London's role as the next Olympic host city. Expenditure totalling £12,176 was allocated against this fund during the year which left it fully expended at 31 March 2012 (Section 37 statement). £31,552 as a contribution to a programme of exhibitions, events and workshops for Asian and refugee communities. Expenditure totalling £31,552 was allocated against this fund during the year which left it fully expended at 31 March 2012 (Section 37 statement). £19,525 as a contribution to a programme of workshops and events for disadvantaged young people. Expenditure totalling £19,525 was allocated against this fund during the year which left it fully expended at 31 March 2012 (Section 37 statement).

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3. TRADING ACTIVITIES

The charity has one wholly owned subsidiary company, Sharedart Limited, which is incorporated in the

UK. The company operates a licensed bar and catering facilities at Watermans which it has franchised and from which it receives rent and a percentage of the income. Income is also derived from hires. Audited accounts are filed with the Registrar of Companies. The charity also has a participating interest in Watermans Development Trust, which is itself registered as a charity. Watermans Development Trust has granted all its assets to the charity in anticipation of voluntarily being wound-up. A summary of their trading results is shown below:

Unrestricted funds

Total funds

Total funds

2012 £

2012 £

2011 £

Charity trading income

United Kingdom 105,926 105,926 105,105

Trading expenses

Administrative expenses 4,249 4,249 2,686

Net income from trading activities 101,677 101,677 102,419

4. INVESTMENT INCOME

Unrestricted funds

Total funds

Total funds

2012 £

2012 £

2011 £

Interest receivable 115 115 112 5. INCOMING RESOURCES FROM CHARITABLE ACTIVITIES

Unrestricted funds

Total funds

Total funds

2012 £

2012 £

2011 £

Operation of theatre, cinema and arts centre 338,961 338,961 285,629

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6. COSTS OF GENERATING VOLUNTARY INCOME

Unrestricted funds

Total funds

Total funds

2012 £

2012 £

2011 £

Fundraising costs of grants and donations 6,574 6,574 6,305 Support costs - Fundraising 24,841 24,841 15,186

31,415 31,415 21,491 7. GOVERNANCE COSTS

Unrestricted funds

Total funds

Total funds

2012 £

2012 £

2011 £

Auditors' remuneration 12,654 12,654 12,557

Wages and salaries 16,561 16,561 22,778

29,215 29,215 35,335 8. DIRECT COSTS

Basis of Allocation

Operation of theatre,

cinema and arts centre

Total 2012

Total 2011

£ £ £

Programming and performance costs Direct 96,765 96,765 146,425

Education and community Direct 171,869 171,869 51,763

Arts costs Direct - - 13,383

Cinema costs Direct 90,511 90,511 75,489

Technical production costs Direct 7,390 7,390 9,559

Front of house costs Direct 5,257 5,257 7,993

Marketing and promotion Direct 57,797 57,797 76,177

Telephone Direct 7,914 7,914 7,402

Printing and stationery Direct 2,215 2,215 2,237

Postage Direct 2,338 2,338 5,622

Office equipment Direct 4,153 4,153 4,272

Finance costs Direct 7,280 7,280 6,571

Licences and subscriptions Direct 3,973 3,973 3,527

Futurebuilders costs Direct 37,442 37,442 21,348

Wages and salaries Direct 363,739 363,739 363,581

National Insurance Direct 25,588 25,588 28,403

Depreciation Direct 14,741 14,741 23,110

898,972 898,972 846,862

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9. SUPPORT COSTS

Basis of Allocation Fundraising Governance

Operation of theatre,

cinema and arts centre

Total 2012

Total 2011

£ £ £ £ £

Repairs and maintenance - - 18,860 18,860 24,014

IT systems maintenance - - 12,098 12,098 13,256

Staff recruitment and training - - 692 692 62

Legal and professional fees - - 2,929 2,929 1,120

Sundry expenses - - 1,713 1,713 8,729

Staff welfare - - 1,683 1,683 1,727

Insurance - - 13,740 13,740 15,096

Light and heat - - 58,957 58,957 65,110

Travel costs - - 1,641 1,641 576

Bad debts - - (1,832) (1,832) -

Cleaning - - 41,503 41,503 41,162

Security - - 7,843 7,843 8,857

Rates - - 6,951 6,951 1,431

Irrecoverable VAT - - 9,312 9,312 10,484

Wages and salaries Staff time 22,721 15,148 113,606 151,475 137,890

National Insurance Staff time 2,120 1,413 10,598 14,131 13,969

Depreciation - - 42,949 42,949 44,080

24,841 16,561 343,243 384,645 387,563

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10. ANALYSIS OF RESOURCES EXPENDED BY EXPENDITURE TYPE

Staff costs Depreciation Other costs Total Total

2012 £

2012 £

2012 £

2012 £

2011 £

Costs of generating voluntary income - - 31,415 31,415 21,491

Fundraising expenses - - 4,249 4,249 2,686

Costs of generating funds - - 35,664 35,664 24,177

Operation of theatre, cinema and arts centre 513,531 57,690 670,994 1,242,215 1,196,461

Governance 16,561 - 12,654 29,215 35,335

530,092

57,690

719,312

1,307,094

1,255,973

11. ANALYSIS OF RESOURCES EXPENDED BY ACTIVITIES

Activities undertaken

directly Support

costs Total Total

2012 £

2012 £

2012 £

2011 £

Operation of theatre, cinema and arts centre 898,972 343,243 1,242,215 1,196,461

12. NET INCOMING RESOURCES / (RESOURCES EXPENDED)

This is stated after charging:

2012 2011

£

£

Depreciation of tangible fixed assets:

- owned by the charitable group 57,690 67,190

Auditors' remuneration 12,654 12,557

During the year, no Trustees received any remuneration, benefits in kind or reimbursement of expenses (2011 - £NIL).

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13. STAFF COSTS

Staff costs were as follows:

2012 2011

£

£

Wages and salaries 515,214 501,471

Social security costs 39,719 42,372

554,933 543,843 The average monthly number of employees during the year was as follows:

2012 2011

No. No.

Programme support/cinema 6 5

Marketing 2 3

Customer relations 14 13

Management and administration 5 5

Finance 2 2

Technical production 2 2

31

30

No employee received remuneration amounting to more than £60,000 in either year.

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14. TANGIBLE FIXED ASSETS

Building and capital works

Theatre, cinema and

gallery equipment

Cafe and bar

equipment Computer

equipment

Administration and

general Total Group

£

£

£

£

£

£

Cost

At 1 April 2011 628,380 246,604 10,970 202,985 95,806 1,184,745 Additions - - - 3,200 - 3,200 At 31 March 2012

628,380

246,604

10,970

206,185

95,806

1,187,945

Depreciation

At 1 April 2011 337,327 193,668 9,527 156,514 94,772 791,808 Charge for the year 30,536 14,741 340 13,422 (1,349) 57,690 At 31 March 2012

367,863

208,409

9,867

169,936

93,423

849,498

Net book value

At 31 March 2012 260,517 38,195 1,103 36,249 2,383 338,447 At 31 March 2011

291,053

52,936

1,443

46,471

1,034

392,937

Building and capital works

Theatre, cinema and

gallery equipment

Cafe and bar

equipment Computer

equipment

Administration and

general Total Company

£

£

£

£

£

£

Cost

At 1 April 2011 628,380 246,604 10,970 202,985 95,806 1,184,745 Additions - - - 3,200 - 3,200 At 31 March 2012

628,380

246,604

10,970

206,185

95,806

1,187,945

Depreciation

At 1 April 2011 337,327 193,668 9,527 156,514 94,772 791,808 Charge for the year 30,536 14,741 340 13,422 (1,349) 57,690 At 31 March 2012

367,863

208,409

9,867

169,936

93,423

849,498

Net book value

At 31 March 2012 260,517 38,195 1,103 36,249 2,383 338,447 At 31 March 2011

291,053

52,936

1,443

46,471

1,034

392,937

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15. FIXED ASSET INVESTMENTS

Shares in group

undertakings

Company £

Market value

At 1 April 2011 and 31 March 2012 2

Company investments at market value comprise:

2012 2011

£ £

Group 2 2 The company owns 2 £1 Ordinary shares in Sharedart Limited, being its entire issued share capital. Retained reserves are £6,197 (2011: £6,197) with a profit/loss for the year of £nil (2011: £nil).

16. DEBTORS

Group

Company

2012 2011 2012 2011

£ £ £ £

Trade debtors 67,180 34,333 46,478 14,552

Amounts owed by group undertakings - - 128,524 119,054 Other debtors 13,179 44,311 13,179 42,115

Prepayments and accrued income 38,574 72,257 33,001 69,257

118,933 150,901 221,182 244,978 17. CREDITORS:

Amounts falling due within one year

Group

Company

2012 2011 2012 2011

£

£

£

£

Other loans 22,222 22,222 22,222 22,222 Trade creditors 92,718 109,042 92,718 109,042 Social security and other taxes 24,744 13,365 20,658 13,365 Accruals and deferred income 100,852 59,621 92,742 55,175 240,536 204,250 228,340 199,804

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18. CREDITORS:

Amounts falling due after more than one year

Group

Company

2012 2011 2012 2011

£

£

£

£

Other creditors 150,418 177,778 150,418 177,778 Creditors include amounts not wholly repayable within 5 years as follows:

Group

Company

2012 2011 2012 2011

£ £ £ £

Repayable by instalments 172,640 200,000 172,640 200,000

Less: repayable within one year (22,222) (22,222) (22,222) (22,222)

150,418 177,778 150,418 177,778 The loan, from Futurebuilders, is repayable over 10 years. Following a repayment holiday in year one, interest will be charged at 0% p.a. for the first two years and at 6% p.a. thereafter for the remainder of the term.

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19. STATEMENT OF FUNDS

Brought

Forward Incoming

resources Resources Expended

Transfers in/out

Carried Forward

£ £ £ £ £

Unrestricted funds

General funds 425,051 726,108 (655,604) (25,000) 470,555 Designated funds

Virtual art installations - - - 20,000 20,000

Equipment for participative arts - - - 5,000 5,000

- - - 25,000 25,000 Restricted funds

Arts Council England 42 - (42) - -

ACE re capital works 57,888 - (5,086) - 52,802

Brentford SRB - Waterpoint 44,985 - (19,286) - 25,699

UK Film Council - digital projector 12,500 - (2,500) - 10,000

Awards for All - new media equipment 4,215 - (3,523) - 692

Project grants - 11,950 (11,950) - -

Public sector contracts - 589,949 (589,949) - -

Cinema Europa - 12,305 (12,305) - -

Futurebuilders capital grant 27,176 - (6,849) - 20,327

146,806 614,204 (651,490) - 109,520

Total of funds 571,857 1,340,312 (1,307,094) - 605,075

SUMMARY OF FUNDS

Brought

Forward Incoming

resources Resources Expended

Transfers in/out

Carried Forward

£ £ £ £ £

General funds 425,051 726,108 (655,604) (25,000) 470,555

Designated funds - - - 25,000 25,000

Restricted funds 146,806 614,204 (651,490) - 109,520

571,857 1,340,312 (1,307,094) - 605,075

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20. ANALYSIS OF NET ASSETS BETWEEN FUNDS

Designated funds

Restricted funds

Unrestricted funds

Total funds

Total funds

2012 £

2012 £

2012 £

2012 £

2011 £

Tangible fixed assets - 109,520 228,927 338,447 392,937

Current assets 25,000 - 632,582 657,582 560,948

Creditors due within one year - - (240,536) (240,536) (204,250)

Creditors due in more than one year - - (150,418) (150,418) (177,778)

25,000 109,520 470,555 605,075 571,857 21. OPERATING LEASE COMMITMENTS

At 31 March 2012 the Group had annual commitments under non-cancellable operating leases as follows:

2012 2011

Group and company

£

£

Expiry date:

Within 1 year - 639

Between 2 and 5 years 5,391 2,901

Watermans Annual Report 2011-12

Documents

Transcript of Watermans Annual Report 2011-12