1Accounting Policies

Basis of measurement and preparation of accounts
BASIS OF PREPARATION OF FINANCIAL STATEMENTS
The financial statements are prepared under the historical cost convention, adjusted for the revaluation of the heritage assets at directors’ valuation based on professional advice, and in accordance with the Financial Reporting Standard for Smaller Entities (effective April 2008) and the Statement of Recommended Practice – Accounting and Reporting by Charities.
The accounts are showing a deficit result for the year of £27,463 on the unrestricted fund. There are negative unrestricted funds on the Balance Sheet at 31.3.13 of £46,181 and net current liabilities of £93,150. As described in the Trustees’ Annual Report, the charity’s ability to generate income has been adversely affected by the economic climate and cuts in public funding and raising sufficient funds to carry out its activities is a major risk managed day to day. The charity has responded as described in the Trustees’ Report by taking professional advice, restructuring, cutting costs and focusing on fundraising with professional help and on income generation activity tendering for contracts and making grant applications. The charity is presently developing business plans with a lower fixed cost structure for itself and the trading company to reduce the trading deficit and build a reserve. Based upon the reasonable expectation that the charity generates sufficient income to manage cash flows and payment of liabilities to creditors and that the Charity secures new sources of funding and new contracts for services, these accounts are prepared on a going concern basis. Projects are only undertaken when funds are in place and contribution to overhead is carefully monitored and controlled. Since the year end new work has been secured for the charity and Aspire Creative Enterprises.

Turnover policy
INCOMING RESOURCES
Income from charitable activities includes grants and funds receivable for services provided.
Donations and Grants
Income from donations and grants, including any capital grants is included in incoming resources when these are receivable, except as follows:
When donors specify that donations and grants given to the charity must be used in future accounting periods, the income is deferred until those periods.
When donors impose conditions which have to be fulfilled before the charity becomes entitled to use such income, the income is deferred and not included in incoming resources until the pre-conditions for use have been met.
When donors specify that donations and grants, including capital grants, are for particular restricted purposes, which do not amount to pre-conditions regarding entitlement, this income is included in incoming resources of restricted funds when receivable. Income is included based upon entitlement measurement and certainty being met.
The charity is not registered for VAT.

Tangible assets depreciation policy
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:
Music and audio equipment, computers and office furniture 25% Straight Line

HERITAGE ASSETS
Heritage assets are works of art and are recognised at trustees’ valuation. Heritage assets are not depreciated because they have a very long useful life and a high residual value and so any depreciation would be immaterial. They are reviewed regularly for impairment by the trustees with expert advice.

Other accounting policies
RESOURCES EXPENDED
Resources expended are included in the Statement of Financial Activities on an accruals basis. Certain expenditure is directly attributable to specific activities and has been included in those cost categories. Certain other costs, which are attributable to more than one activity, are apportioned across cost categories on the basis of an estimate of the proportion of time spent by staff on those activities. Independent examination/audit costs are shown as governance costs.

FUND ACCOUNTING
Funds held by the charity are either;
Unrestricted funds – these are funds which can be used in accordance with the charitable objects.
Restricted funds – these are funds that can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes and projects.

LEGAL STATUS
The charity is a company limited by guarantee and has no share capital. The liability of each member in the event of winding up is limited. On 20 October 2003 Aspire Trust Limited became a registered charity (Registration Number 1100166).

INTEREST RECEIVABLE
Interest is included in incoming resources when receivable by the charity

2Company limited by guarantee
Company is limited by guarantee and consequently does not have share capital.

Included in Tangible Assets is Heritage Assets valued at £50,000 being two works by Michelle Molyneux valued by the trustees at £50,000, based upon relevant professional opinion, and which in their view represents a prudent and reasonable value based upon cost, including management time of £7,500 incurred in 2008/9, and recognised gains of £12,500 in 2009/10 and £30,000 in 2010/11 with the acquisition of the new work. There has been no reduction in the value for depreciation as it is considered that the assets’ values are appreciating