The Arts Foundation
Report and Annual Accounts
For year ending 31 December 2021
Charity Registration No. 1000001
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Trustees and Principal Officers
Mr Howell James CBE - Chair of the Board of Trustees
Mr John Booth Mr Dennis Chang Mr Andrew Comben Ms Jan Dalley Ms Virginia Hodge Ms Frith Kerr Ms Monika Parrinder Mr Jonathan Reekie CBE Mr Matthew Slotover Ms Kully Thiarai Mr Simon Prosser (resigned 26 July 2021)
Charity Number 1000001
Principal Address
The Coach House Crockerhill, Chichester West Sussex PO18 0LH
Bank
CAF Bank Ltd 5 Kings Hill Avenue Kings Hill, West Malling Kent ME19 4JQ
Solicitors
Clintons 55 Drury Lane London WC3B 5SQ
Investment Advisors Investec Wealth and Investment ltd 30 Gresham Street London EC2V 7QP
Independent Examiner
Matthew Brown Adding Value Consultancy Ltd Bluecoat Chambers Liverpool L1 3BX
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THE ARTS FOUNDATION TRUSTEES’ REPORT
The Trustees present their report and accounts for The Arts Foundation for the year ended 31st December 2021.
Constitution
The Arts Foundation is a charity No. 1000001, registered in accordance with the Charities Act 1960 and was established by a declaration of Trust dated 16th July 1990. A Deed of Variation was agreed by the Charity Commissioners and was signed by the Trustees on 4th May 1995 and 13[th] October 2004.
Objectives
The Arts Foundation was established with the purpose of supporting the artistic development and livelihoods of individual artists in the UK. The purpose of the foundation’s Fellowship programme, delivered through the Arts Foundation Futures Awards, is to provide unrestricted financial support for artists and creative practitioners at a pivotal moment in their careers to enable future development, and to encourage dialogue and exchange between artists.
Public Benefit Statement
In considering the objectives and activities, the Trustees have considered Charity Commission guidance on public benefit to ensure that the organisation is meeting its public benefit requirements.
The Arts Foundation Futures Awards gives out five fellowships every year, with all finalists receiving financial support. Each year the awards focus on both broad and innovative art forms, across Craft, Design, Film, Literature, Material Innovation, Music, New Media, Performing and Visual Arts, and aim to highlight lesser-known areas of creative practice and include emerging multidisciplinary artists.
The contribution of the Arts Foundation Futures Awards to the Arts in the UK is demonstrated by its past Fellows, many of whom have become leaders in their respective art forms, including Wayne McGregor (1994), Alice Oswald (1996), Sarah Kane (1998), Asif Kapadia (2001), Ali Smith (2001), Rufus Norris (2002), Lynette Yiadom-Boakye (2006), and more recently, Simon Fujiwara (2009), Alice Birch (2014), Hollie McNish (2015), Evan Ifekoya (2017), Holly Hendry (2019), and Bethany Williams (2020).
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Review of Activities undertaken during the year
The Arts Foundation Futures Awards
The Arts Foundation Futures Awards 2021 were held online with Guest of Honour, Lily Cole. The five winning fellows were announced as John Barber (Choral Composition), Joanna Pocock (Environmental Writing), Shneel Malik (Materials Innovation), Keisha Thompson (Theatre-Makers), and Tanoa Sasraku (Visual Arts), who each received £10,000 Fellowships with all fifteen artists/finalists receiving £1,000 towards the development of their artistic practice.
Later in the year, the Arts Foundation Futures Awards 2022 categories were announced as: Animation, Materials Innovation, Music for Change, Theatre-Makers and Visual Arts, with judging taking place from September to November.
The Animation award was supported by The David Collins Foundation, and the finalists were announced as Savinder Bual, Sophie Koko Gate, Mary Stark and Petra Szemán. The Judges were Irish Director, Johnny Kelly, Artist, Animator and Curator, Edwin Rostron, and time-based media artist, Birgitta Hosea.
The Materials Innovation award finalists were announced as: Elissa Brunato, Riccardo Cenedella, Guan Lee and Patrick Morris. The Judges were British model, actress, environmentalist, and writer, Lily Luahana Cole, Architecture and Design critic of The Financial Times, Edwin Heathcote, and UCL Professor of Materials & Society and TV, and Radio presenter, Mark Miodownik MBE.
The Music for Change award was supported by PRS Foundation, and the finalists were announced as: Eliza Shaddad, Max Barton & Jethro Cooke (Slowstepper), Love Ssega and Hanna Tuulikki. The category judges were Founder of Icebreaker One, Gavin Starks, TV and Radio broadcaster, Edith Bowman, and Folk Singer, Sam Lee.
The Theatre-Makers award was supported by The Maria Björnson Memorial Fund, and the finalists were announced as: Lee Hart, Anna Himali Howard, Helen Monks & Matt Woodhead (LUNG) and Conrad Murray. The category judges were Director of Creativity and Social Change at Battersea Arts Centre, Liz Moreton, Artistic Director and CEO of New Art Exchange, Saad Eddine Said, and Director of Kate Pakenham Productions, Kate Pakenham.
The Visual Arts award was supported by The Yoma Sasburg Estate and the artist finalists were announced as: Rhea Dillon, Sadé Mica, Shenece Oretha and Libita Sibungu. The category judges were Artist, Oreet Ashery, Director of Tate St Ives, Anne Barlow, and Director of Aesthetica, Cherie Federico.
London International Animation Festival
On 3 December 2021, the Arts Foundation hosted a successful one-off event, ‘Meet the AFFA 2022 Animation Finalists’ in partnership with the London International Animation Festival (LIAF) and The Horse Hospital in central London.
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Artist Support, Profile-raising and Communications
The Arts Foundation continues to support the development and profile-raising of current and past fellows and finalists through ongoing dialogue, marketing, communications, and PR activities. To date, over 900 people have watched the AFFA 2021 online ceremony, and each of the Fellows were featured on BBC Radio 4's Front Row, with fellows featuring in Design Week, The Art Newspaper, The Financial Times and The India Times. The foundation continued to grow its audience and supporters across social media platforms, reaching approximately 10,000 followers, as well as mailing lists and usage of the artist directory on our website.
Future Plans
Over the course of the next year, the Arts Foundation intends to deliver the Arts Foundation Futures Awards in early 2022, and begin planning for the awards in 2023, which is the 30th anniversary of the charity.
Organisation Development
The Arts Foundation’s long-standing Director, Shelley Warren stepped down in October 2021, and the Board appointed, Mary Jane Edwards as Interim Director, who has since been made permanent.
In 2021 the Arts Foundation established a Finance Committee to oversee its investment strategy and policy, meeting annually, the committee is comprised of Matthew Slotover (Committee chair), John Booth, Howell James, and the Director (observer).
Equality, Diversity and Inclusion
Outside of the awards themselves, the Arts Foundation continues its commitment to Equality, Diversity and Inclusion and achieved internal targets set in the previous year to ensure the fellowship programme is accessible and representative of contemporary UK society as a whole.
Financial Review
Income for the year totalled £41,035 (2020: £93,129). Total expenditure in the year was £138,278 (2020: £131,934).
With regards to the Foundation’s investment portfolio, on the 31st of December 2021, the total value of the Fundsmith portfolio and Investec Wealth and Investment (IW&I) portfolio was £1,030,682. The total return of the whole portfolio was £163,044.
As a result, the net incoming resources for the year was £65,801 (2020: £84,839) which has increased total funds to £1,082,149 (2020: £1,016,348)
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Going Concern
The financial statements have been prepared on a going concern basis. The trustees have considered the level of funds held and the expected level of income and expenditure for the twelve months from authorising these financial statements. The trustees assess the charity to be a going concern based on review of financial performance of the current year to date, the management accounts forecast for the remainder of the current financial year, and longer-term plans and forecasts for 2023 and beyond. As a result, the trustees are satisfied that these accounts can be prepared on a going concern basis.
Statement of Trustee’s Responsibilities
The Charity Trustees are responsible for preparing the annual report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards. The law applicable to charities in England and Wales requires the trustees to prepare financial statements for each financial year which give a true and view of the state of affairs of the charity and of the incoming resources and application of resources for that period.
In preparing those financial statements, the Trustees are required to:
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select suitable accounting policies and then apply them consistently
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observe the methods and principle in the Charities SORP
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make judgements and estimates that are reasonable and prudent
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue as a going concern
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state whether applicable accounting standards have been followed, subject to any material departure disclosed and explained in the financial statements.
The Trustees are responsible for maintaining proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Charities Act 2011. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Approval
This report has been prepared in accordance with the requirements of the Charities Act 2011.
This report was approved by the Board of Trustees on 20[th] June 2022 and signed on their behalf:
Mr Howell James CBE Chair of the Board of Trustees
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THE ARTS FOUNDATION INDEPENDENT EXAMINER'S STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2021
INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES
I report to the trustees on our examination of the accounts for the year ended 31[st] December 2021.
Responsibilities and basis of report
As the charity trustees you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’). The trustees consider that an audit is not required for this year under section 144(2) of the Act and that an independent examination is needed.
I report in respect of my examination of the charity’s accounts carried out under section 145 of the Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.
Independent examiner’s statement
I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
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accounting records were not kept in respect of the Trust as required by section 130 of the Act; or
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the accounts do not accord with those records; or
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the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair view which is not a matter considered as part of an independent examination.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
Matthew Brown, CPFA Adding Value Consultancy Ltd Accountants and Financial Management Consultants
Date: 20[th] June 2022
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The Arts Foundation Statement of Financial Activities for the year ended 31 December 2021
| 2021 | 2020 | ||
|---|---|---|---|
| £ | £ | ||
| Income | |||
| Grants and Donations | 32,178 | 80,363 | |
| Investment Income and Other Earned Income | 8,857 | 12,766 | |
| 41,035 | 93,129 | ||
| Expenditure on Charitable Activities | 138,278 | 131,934 | |
| Other Sources of Funds | 163,044 | 123,644 | |
| Net Incoming Resources | 65,801 | 84,839 | |
| Funds Brought Forward | 1,016,348 | 931,509 | |
| Funds Carried Forward | 1,082,149 | 1,016,348 |
All income and expenditure relate to continuing operations.
The Statement of Financial Activities includes all gains and losses recognised during the year.
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The Arts Foundation Balance Sheet as at 31 December 2021
| Notes | 2021 | 2020 | ||
|---|---|---|---|---|
| £ | £ | |||
| FIXED ASSETS | ||||
| Tangible Fixed Assets | 2 | 0 | 3 | |
| Investments | 3 | 1,030,682 | 967,638 | |
| 1,030,682 | 967,641 | |||
| CURRENT ASSETS | ||||
| Cash at Bank and in hand | 52,967 | 48,707 | ||
| CREDITORS | ||||
| Amounts fallingdue within oneyear | 1,500 | 0 | ||
| NET CURRENT ASSETS | 51,467 | 48,707 | ||
| TOTAL NET ASSETS | 1,082,149 | 1,016,348 | ||
| FUNDS | ||||
| Unrestricted Funds | 1,082,149 | 1,016,348 | ||
| TOTAL FUNDS | 1,082,149 | 1,016,348 |
These accounts have been prepared in accordance with the requirements of the Charities Act 2011. The accounts were approved by the Trustees on 20[th] June 2022 and signed on their behalf:
Mr Howell James CBE Chair of the Board of Trustees
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The Arts Foundation
Notes to the Accounts
For the year ended 31 December 2021
1 - Accounting policies
Basis of preparation
The accounts have been prepared under the historical cost convention as modified by the inclusion of investments at market value. The financial statements have been prepared in accordance with the requirements of the Charities Act 2011 and the Statement of Recommended Practice for Charities.
Incoming Resources
Voluntary income and donations are accounted for as received. Investment income is accounted for as it becomes payable.
Resources expended
Expenditure is recognised on an accruals basis with the exception of Artistic Grants and Fellowships.
Depreciation
Depreciation has been provided at the following rates in order to write off the assets over their estimated useful lives.
Office Equipment 20% straight line
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The Arts Foundation Notes to the Accounts cont. For the year ended 31 December 2021
2 - Tangible Fixed Assets
| Office Equipment | ||
|---|---|---|
| £ | ||
| Cost | ||
| At 1 January2021 | 4,191 | |
| Additions/disposals | 0 | |
| At 31 December 2021 | 4,191 | |
| Depreciation | ||
| At 1 January2021 | 4,188 | |
| Charges duringtheyear | 3 | |
| At 31 December 2021 | 4,191 | |
| Net Book Value | ||
| At 31 December 2021 | 0 | |
| At 31 December 2020 | 3 |
3 - Investments
| Investments | ||||
|---|---|---|---|---|
| £ | ||||
| Cost | ||||
| At 1 January2021 | 967,638 | |||
| Additions/ (disposals) | (100,000) | |||
| Revaluation | 163,044 | |||
| At 31 December 2021 | 1,030,682 | |||
| 2021 | 2020 | |||
| £ | £ | |||
| Listed Investments | 1,030,682 | 967,638 |
Investments are included at closing market bid value at the balance sheet date. Any gain or loss on valuation is taken to the Statement of Financial Activities.
4 - Employees
The average number of employees during the year was 1 (2020: 1) There were no employees who received employee benefits of more than £60,000 in the year
No remuneration was paid to trustees during the year. During the year, one trustee was reimbursed travel expenses of £62 (2020: Nil)
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THE ARTS FOUNDATION DETAILED STATEMENT OF FINANCIAL ACTIVITIES
This page does not form part of the statutory financial statements
| 2021 | 2020 | ||
|---|---|---|---|
| £ | £ | ||
| INCOME | |||
| Grants and Donations | 32,178 | 80,363 | |
| Investment Income | 8,585 | 12,766 | |
| Other Income | 272 | 0 | |
| 41,035 | 93,129 | ||
| Other Sources of Funds | |||
| Revaluation of Investments | 163,044 | 123,644 | |
| 163,044 | 123,644 | ||
| EXPENDITURE | |||
| Artist Grants & Fellowships | 60,100 | 65,000 | |
| Artist Promotion and Events | 8,012 | 3,678 | |
| Awards Activities and Expenses | 6,430 | 8,528 | |
| Artistic Advisors | 2,350 | 0 | |
| Staffing Costs | 51,551 | 44,543 | |
| Travel, Subsistence and Hospitality | 628 | 432 | |
| Office Rent and Room Hire Costs | 5,168 | 5,768 | |
| General Expenses | 1,389 | 327 | |
| IT costs including software and support | 699 | 2,348 | |
| Accountancy and Professional Fees | 1,850 | 1,250 | |
| Depreciation | 3 | 0 | |
| Bank Charges | 96 | 60 | |
| 138,278 | 131,934 | ||
| Net Resources Gained (Expended) | 65,801 | 84,839 |
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