REGISTERED CHARITY NUMBER: 1003774 Re rt of the TteeS and FiDanci#l StAtenieMts for the Year Eudcd 31st March 2024 for Feve$ Art Gall¢ Sa(lofskys Ststsjtory Auditoi's Princes House Wright Street Kingsion upon Hull HU2 8HX
Ferens Al't Galle Contents oftlie Financial Statemellts foi. tlie ear ended 31st Mareh 2024 P4ge Repoi't o( tbe Trustees Report of tli¢ Independent Auditoi 4 to 7 Statement ofFiMancial Aetivities Bxl#n¢e Sheet Notes to the Financial Statements 10 to 14
Ferens Al't Calle ort of tlie Trustee5 eai" ended 31st March 2024 for the The trustees pitsent theii. r¢p)it MTith the financial slatemertts of the charity for tlje year ended 3 1st March 2024. The trustees have adopted the pi'ovisions of AccounÉiiig and Reportin8 by Chwyties: Statement of Reeomineiided Pi'actice applicable lo charities prepai'ing theii. accounts in accordance with the Financial Repoiiiig Standard applleable in the UK and Republic of lirlaiid (FRS 102) (effective l January 2019). OBJII CTIVES AND ACTIVITIES Objeetives, alld publie benefit In 1919 T.R. Fen3 bequeathed the land the tlIding now stands on and the money to constnjct }d ftlinisli an Art Gollery. The Art Gallery is held on ts'ust by Kingston up)n Hull City Council for "the exhibition of works of art in perpetuity" Hull CultUiE & Leisure Limited occupies aLKI runs die art gallery on bdialf of Kingston upon Hull City Couiicil ivho are i'esponsible foi. its maintenance. which is in part funded from the Ferens Art Galla'y Endowment fund. Kingston upon Hull City Council, as sole tte¢, maintains the Ferens Art Gallery and its colle¢tioiis for tl)e benefiL of t])e geneixl public. Tbe Ii-ustee is of the opinioll tliat li has complied with the duty in Section 4 of the Charities Act 2011 with regard to public bencfit guidance publistied by the Charity Commis8ion. ACHIEVEMENT AND PERFORMANCE The fund was set up to pui'chase and exhibit works of arL No purchases during 2023124 have been capitalised (2022123 nil)- The Adopt-a-Painting Scheme was set up in 2008109 to fund tlie restornlion of artwoi'ks. Dui'ing 2023124, no donatioiis Iveit received (2022123 - 1)il). No expendiluit was incurred during 2023124 (2022123 - nil). The policy of the trust is io ensure that Land 8t Buildings show a b'ue and fail. view in accoidance with FRS102 so tliis is considered and are i'e-valued each year. FINANCIAL REVIEW Finallcial posfiiioii The financial position of the chai'ity is strong ivkth net assets at 3 1st Mai'¢h 2024 amounting to £1 l5,614.427 {2023 £103,478,096). Roserves poliey Tlie Ti'ust operates a Resei'ves Poli¢y whereby the fvnd LTtains sufficient casli to ensure it lias sufficient available funds for its operations. Coing coneeyn The chai'ity has suClent Yescrves to enable any debts to be paid as diey fall due. The tswtees do not foresee any pioblems in the ncxt twelve inonths from Ihe date that thcge financial statements are auihori5ed foi. issue. STRUCTURE, COVII RNAIYCE AND MANACEMENT Govert)Iihg doellmellt The charity is controlled by its goiierning document, a deed of tsust and constitutes unincoKp)rated chai'ity. Fettns Ait Oallery was built in 1927 from monies held Én a tsvst fund set up 1919 by T.R. Ferens. Followin8 the completion of the gallery, a deed of trust Was Clydted. dated 15 March 1928, and rcsidual imonies weit depositcd iviih the Ferens Gallery Endowiient Fund to providc fundii)g for the purchase ofartwots. Ferens Al't Gallery was i'¢gistered as a charity on 5 August 199L (no. 1003774), with the Ferens Art Gallei'y Endoivtnent Fund being vegistei'ed as lis constituent charity. Page I
FereiES Art Gallei ort of tlie Truslees ear eoded 31st MAreb 2024 for the STRUCTURE, GOVERNANCE AND MANAGEMENT Recruitment and appointment of neiv IrsteeS Kingston upon Hull City Council is ihe sole irustee it is Ihe Council's Coiporate Trustee Committee as per Ilie Council constitulioi) that exercises conts'ol. The i'eci'uitsneni and appointment is b&sed solely on ivhen Ihere are chaliges to the Committee a5 a I'esult of official loeal elections. Oi'ganisatlonal sti'uetui'e Kingslon upon 14ull City Council is the sole Irustee of ihc Fei'eiis Art Gallcry. The fvnctioii ot. the trustee is exercised by tlie Council's Corp017te Trustee Comiiiittee as per the Council constitution. The curirnt members of the Coipoi?te Trustee Coinmittee al'e Councillor J. Dad. Councillor R. Pritehard and Councillor M. Ross. rhe Coi'poE71e Trustee Coillinittee is I'esponstble foi. ensuring that arrangeinents are made for keeping propel. books of account whieli represent a th'ue and fair vieiv of the affaii's of the Tiwl in respect of activities. It also ensures t]iat the financial slatenieiils have been properly pi'epared in accordance with the TnLSt Deed, the Charities Act 2011 and the Statement of Reconimeiided Practice: Accounting and Reporting by Cliarities (effective l January 2019). Induction aiid training of new ti'usÉe¢s The councilloiB are given a copy of the scheme document logethei. with any a¢dentS Inade lo it and a copy of tlie latest chai'ity i-eport and the accounts. Risli maiiageillent The Ii'ustees have a duty to identify and revtemi the risks lo whicli the charily fts exposed and to ensure appi'opi'iale conliDls are in place lo provide reasonable assuiince agairLSt fraud and error. The Cliarity has identified the i'isks to wl)ich it may be exposed aiKi has implemented a risk maiiagement slrateg)i which coii)prises' an annual review of the I'isks which tlie ChArily niay face. the eslabli,shment of systems aiid piDcedures to Iniiigate those risks. and thc itnplemcnlatioi) of proceduits designed lo mininiise any potential iiiipact ott d)e Cliai'tty should any of those i'isks matetialise. REFERENCE AND ADMINISTRATIVE DETAIiS Reglsteitd Chaj'ity numbei, 1003774 Pi'liicipal addl'ess Klngston upon Flull CILY Council Guildhall Alfred Geldej. Sts'eet Kingston upon Hull HUI 2AA Tr'ustees Kingston upon Hull City Council Auditors Sadofskys Statutoi'y Auditors Princes Flouse Wi'ight Sti'eet Kingston upon Hull HU2 8HX Page 2
Fere Art Galle oi* of tlle Truste ear ended 31st Mai'eli 2024 foi. the REFERENCE AND ADMINISTRATIVE DETAIiS B74nl<eYs National Weslininster Batik plc 34 Kftiig Edward Sts'eet Icingston upoii Hull HUI 3SS STATEMENT OF TRUSTEES, RESPONSIBILITIES The ti'ustees are responsible for preparing ihe Report of the Tte¢S and the financial stateniettts in qccordance with applicable law and United Kingdoni Accounting Standaits (United Kingdom Genei'ally Aeeepted Accouiiting Practi¢e}. The law applÉcable to charities iii England and Wales the Charities Act 2011, Charity (Ae¢J)unls and Reports) Regulatioiis 2008 and the piovisions of Ihe trust deed I'equires ihe trustees to prepai'e financial statements for eaeh rinancial yeai. wl)ich 8Éve a t1C and fair iiiew of the 5tatc of affairs of tlie charity attd of the incoming I'esoui'ces artd application of resources, including the Èncomc and expenditure, of the charity for that period. In pjtparing those financial state4nents, tlie ti'ustees are requlltd to select suitable accounting policies and then apply thein consistently. obsei've the methods aiid priiiciples in the Chaiity SORP. make jiidgements and estimates that are i'easonable and PldenL prepa]r tjie fiiiancial statenients on the going concern basis uiiless it is inaN)ropriate to pftsume thai tlie chai'ity ivill coiitinue in business. The trustees are responsible foi. keeping woper accounting rerdS which disclose with i-easonable accuracy at any time tlie finaticial position of the diai'ity and to enable th7] to ensure that the fcial slateinents co11Y wilh the Charities Act 201 I, tlie Charity (Accounts and Reports) ReouIati(S 2008 and the provisions of the tsust deed. They are also responsible foi. safeguarding the assets of tlle Ch'llY and hence for taking rollable steps for Ihe prevention aiid detection of fraud aiid oiliei. iii'egulai'ities. Approved by order of11)e Council's corpte Trnstee Committee acting as the sole ttwtee on 28 October 2024 and signed on its behalf by: Councilloi. Jackie Dad- Chair of the Committee Page 3
Re oi't of the Inde endent Auditors to the Ti'ustees of Ferens Ayt Galle Opiiiion We liave audited the financial slaienieiits of Ferens Art Galleiy (Ihe'chai'ity,) foi. the year alded 31 st Mai'ch 2024 which coniprise the Statement of Financial Activities, the Ba12nix Sheet and iiotes to the financial staleineiils. including a suininwy of significant accounting wlicies. The financial rew)rtiiig fr8niewoi'k thal has been applÈed iii Iheii. pitpai'alion is applicable law and United Kingdom AccountTng Stsndards (United Kingdom Generally Accepted Accounting Piaclice). In oui. opinion the financial statenients: give a true aiid fail- view of the slate of the charity's affairs as at 3 March 2024 ]d of its iiicoining ia%oui'ces and application of resources, for the year thei) endcd. have beett properly prcpai'ed in accordai)ce witli United Kingdom Generally Accepted Accounting Practice. and have been prepaird in accoiylance with the requirements of the Chai'ities Aci 2011. Basis for oplnlon We coiiducted oui. aL¢dit in accordance with Intemational Standards on Auditing (UK) (ISAS (UK)) and applicable law. Oui. I'espoiisibilities undei. those standai'ds are further described in ttie Audilois, i'esponsibililies foi. the audit of the fInancial sialcinents section of oui. reporL We are independent of the c]iai'ity in 8ccoI'dance iviili L])c ethical requii'enients that are irlevaE)I lo our audit of the financial statements in the UK. includtng tlie FRC'S Ethical Standai'd, and we have fijlfilled our other eiliical I'esponsibililies in accoi-dance with these i'equirenients. We believe that the audil evidence we have obtained is 5UtTicient and appiopriate to provkdc a basis lor our opinion. Coiielusions relatijig to goillg eolleei'n In auditing the financial stalenient4 HTe have concluded that the trustees, use ot the going coiicern basis of accovrtting in Ihe prepwition of the financial ststeinents is appropriate. Based oli tl)e woi'k we have pei'formed, we have not identified any matejial uncertainties I'elating lo events or Conditions tha¢ individually or collectively, may cast significant doubt on the charity's abilffity to continue as a going concerii foi. a pei'iod of at least twelve moiiths from when the financial statenients al'e autliorised foi. issue. Our responsibilities and the responsibilities of the tllLStees with twpect to going concei'n att described in tlie i'elevant sections of this reporL Other inforination Tlie trustees at-e Irsponsible for the other infoirnation. The other infoi)nalion coinpi'isas the information included in the Annual ReporL oihei- than the fmancial statements and our Report of the Iiidepeiident Auditoi's thereon. Our opinion on the financial statenients does not covei. the other infomjation and, except io the extent otheJi¥ise xplicitly staled in our repoit il'e do tlot express any forni ot"assuT7nce eonclusion Ihejeon. In connection with our audit of the financi41 statements. our resnsIbl11ty is to irad the oihei. informatÈon and, in doing so, considei- whether the othei. infoiThalion is materially inconststent iyith the financial ststenienls or our knowledge obtaiiied in the audit oi. OtheISe appew% to be materially misstaled. If we identity such Inaterial inconsistencies or appai'ent material misststeinenls, we are required to deterinine whdl)er tliis gives rise lo a matej'ial niisstatement in the riiiancial slatei)ients then)selves. If, based on the ivork we have performe(L we conclude that Il)eir is a IM8tei'ial Inisslatemettt of this other tnfoi'iiiation, Ive I'equiird to itpoit that fact. We have nothing to repoj't in Iliis re8ai'd. Matters on wliich ive are requli'ed to report by exeeptioll We have nothing to i'eport in respect of the following matters whcre the Charities {Aceourtts and Reports) Regulations 2(108 requii'es us to repoit to you if, in our opinion: the infoiThation given in the Report of the Tsle&S is inconsistent in any material I'e5pecl with the financial slat¢nients' oi. sufticier)t dccountÈttg I'eeoi'ds have not been kepl. or the financial slalements al'e not in agreenient wlth the accounting lEcoi5 and i-etums. or Ive have not Irceived all the int.omiation and explanations we requi for our audit. Page 4
oi't of the liide endent Auditors to tbe Tmtees of Fei'ens Al-t Galle Responsibilities of ¢i'ustees As explained more fully in the Statement of Truslees, Responsibiliti. the trustees are irsponsible for thc piepai'alioi) of the financial statements which give a true and fair viciv. and f(M' such internal control as the trustees detennine is necessary to enable Il)e pirparation of financial statejnents Ihat are ftEe from matej'ial misstatenien¢ whether due lo traud or eiTOr. In pi'epai'ing tlie financial stsÈenients, the tswstees are responsible for a&sessing the charity's ability ¢0 continue as a going concei'n, disclosing. as applicable, Inatter5 related kn going concern aiid using 11)e going concern basis or accounting unless the Iiustees eitha. intend to liquidatc the charity or to cease operation4 oi. Iiave no I'ealislic alteinative but lo do so. Page 5
ort of tlie Imde endent Auditors to the Trustees of Feren5 Ar¢ Galle Oui. responsibilities foi. tlie uudit of the finatheial stateillellts We have been appointed as auditois under Section 144 of the ChariEies Act 201 l and rep)rt in accolance iviih the Act and releirant regulations made or having effect Iheirunder. Our objectives are to obtatn reasonable assui2nce about whether the fInaticial slatenients as a whole aiE fire ffft-oiii malei'ial misslateinei)I, Ivhellier due to fixud or error, and to issue a Rewrt of liie Independent Auditois that includes oui. opinioll. Reasonable assurance is a high level of assurance. but is not a guai'antee that a]i audit conducted i accordance willi ISAS (UK) will aliyays delect a matej'ial misstatement when it cxists. Misstateinents cai) ai'ise fiDn) fraud or error and aj'e considei'ed i)ialci'ial if, individually or in the aggregate. they could reasonably be expected io iiifluence the economic decisions ot'usei's taken on the b&sis of these financÉal siatemenl5. The extent to which our procedures are capable of detecting irregulaiities, including fraud is detailed below.. Oui. appioacl) to identifying and assessing the risks of Inalertal niissta*ment in Itspect of irregul81.ilies, including fixud aEtd non-coinpliance ividi laws and ITgulation4 was as folloivs: the engagement pai'lner ensured Iliat the engagenient team collectively had ihe appffbpriate conipeteiice, capabililies and skills lo identify or recognise noii4oniplRance witii applicable laivs alid regulations. ve identified the laws and regulations awlicable to the charity ihrough discussions with tile ts'ustees and Oll). managetnenl, and froin OLEI. commei'cial knowledge and experience of the cl)arity sectoi" ie tocused on specific laws and regulations whÉch we considard n)ay have a direet material etTect on the financial stalemetkts or tlie opej21ioiis of the charity, including the Charilic8 Act 2011, the Chai'ities Slaiement ot RecDmii)ended Practice (SORP), taxation legislation, data protection, anti-bribery, employnient, a)viiDnmenlal and health and satety legislalion. we assessed the extent of compliance with the laiys and regulations identified above thjough niaking enouiries of management and inspecting legal cori'eswindence. and identified laws and i-egulations were comniuiiicated within the audit team iigu14rly and the ieam reniained alert to instanees of non-conipliance Ihroughoul the audit. We assessed the susceptibility of the chaF-ity's financial statements lo niatei'ial misstatrnient, ittcluding obtaining an undeislanding of l)ow fitud niiglit oceui-. by: niaking enquiries of inanagement &8 lo where they considered there was su8ceplibility to fi?ud, Iheii. kniowledge of actual, suspected and alleged fi'aud. ai)d considei'ing the internal conlrols tn place to initigate risks of ft7ud and non-compliance wilh laws and I'egulations. To addi'exs the i-isk of fraud throu nianagemenl bias aiid ovei'ride of ntrolS. 14fe: pei'k"ormcd analytical proceduiEs to identify any uiiusual oi- uilexpected Je14tionshLPS tested jouinal entries to identify unusual tswisactions. assessed whether judgenients arÈd assumptions Iiiade in deteiTrining the oUtill8 esliinales were indicative of potential bias- &nd investigated the tIonale behind significant or unusual ts7nsactions. In response to the I'isk of irre8ularities and n0CoMplI8n¢c with laws and regulations, we designed piYjcedui ivhich incl¥ded, but wei-e not Itmited . agi'eeing rtnancial slatenient disclosures to underlying supporting documentatffion- readKiig the niiiiules of meetings of those charged with gOvllance- ei)quiiing of nianagemeiit as to actual and potential litigation and clainis. and i-eviebving coi'iespondertee with HMRC, rcle%'2nt IEgulat017 and the chai?ties' legaE advisors. 'rheKe ale inliei-eiit liinitations in our audit procedur&s described aboiie. The Inoi'e retmoved that laws and regulations al'e froin Iinancial ti?nsactions, tlie less likely it is that ive would become aivare of non-conipliance. Auditing standai'ds also limit the audit procedur&8 required to identify non-compliance with laKvs and iegulations to enquiry of the ti'lteeS and other management and the tnspection of regulatory 2nd legal corr£sw>ndence, if any. Lllalerial misstalemeiits tliat arise due to fjxud can be harder to detect than those that arise from ei'i'or &$ they ii)ay involve deliberate coneealiJ)ent oi. collusion. A fitriher descripliori of our responsibilities for Ihe audit of the fmancial statwnents is loixted on the Financial Reporting CouncÈl's website at www.frc.org.uklaudit0isresponsibilities. This desci-iplion foims of our Report of Ihe Independent Auditoi Page 6
ort of tbe liidt eiident Auditors to the T stees of Fei'ell5 Art Ggll Use of our I'eport This report is made 501ely to the charity's twsLees, as a IK>dy. in accordance wfith Part 4 of the Charitics (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so tliat we miglit state to the charity's tivstees tliose mattets we are Irquired to state to them in an auditoi'g Kport aiid for no other pui'pose. To the fullest exleiit pei'iiiitted by law, Ive do not accept or assuine resy)115ibility to anyone oth. thaTh the charity and the charity's tiustces as a body, foi. our audit woi'k, for this i'ey)i'L oi- for the opinions we liave fonned. Sadofskys Statutory Aiiditors Princes House Wi'ight Street Kiiigslon upon Hull HU2 8HX 1stNoveib¢Y 2024 Page 7
Ferens Art Callei Statenient of Fii)xnei81 ActivitÈe5 fol. the eAI' ellded 3 1st Mi xt'cli 2024 2024 Uni'esti'ieted fuiids 2023 Total funds Notes INCOME AND ENDOWMENTS FROM Donations and legacies 3,300 EXPENDITURE ON Charitable activities Depreciation Govei'rkance costs Pmfessional fees 251,804 3,540 720 212,091 3.305 450 Total 256.064 215 846 NET INCOMEI(EXPENDITURE) Othei. i'ecognised galnsl(losses) Gains on Jevalua¢ion of fLxed assets (252,764) (212,116) 12 389 095 4 144,902 Net Movenieiit in fullds 12.136,331 3,932,786 RECONCILIATION OF FUNDS Total fuiids bi'ougl)I forward 103,478,096 99,545,310 TOTAL FUNDS CARRIED FORWARD 115 614.427 103,478.096 The llotr fomi part of these financial statemcnts Page 8
Fei'ens Art Galle Balgttte Slieet 31st ma1 2024 2024 2023 Totsl nds Uui'esti'ieted funds Noies FIXED ASSETS Tangible assets 115,618,773 103,481,4S2 CURRENT ASSETS Casl) at bank 364 364 CREDITORS Anioui)Is falling due withiii one year (4.710) (3,750) NET CURRENT ASSETS TOT AL ASSETS LKSS CURRENT LIABILITIES 115,614A27 103,478,096 NET ASSETS 115,614,427 103 478 096 FUNDS Uni'e$tricted tunds 115,614 427 I03,478 096 TOTAL FUNDS 115 614,427 103 478 096 Tlie fEnancfftal statemeiits were approved by the Couticil's Corpjrate TIStee Committee acting the sole ttwstee and autliorised for issue on 28, Octobei. 2024 and weit Std on its behalf by: Councilloi. Jackie Dad- Ch8ll' oethe Comniittee The notas form part ofthese financial statements P8ge 9
Ferens Art Galle Notcs to the Finapeial St2temellts foi. the ear ejhded 31.sl Ych 2024 ACCOUNTING POLICIES Basis of pi'epai'ing tlie finaucial st#tewen¢s The financial statements of the charity, whieh is a public E*nefit entity undei- FRS 102. have becn pi'epai-ed in accordance ivith tl)c Chaiities SORP (FRS 102) 'Aeeounting and Repoitiiig by Charities.. Statcinent of Reconiinended Praclice applicable io cliai'ities prepai'ing theii. accounts in accoi'daIice iiriih the financial Repoi'ling Standard applicable in the UK and Rerrtjblic of Ireland (FRS 102) {effective l Jaiiuaiy 2019),, Financial Repoiting Standai'd 102 'The Financial ReportÈng Slandaixl applicable in the UK and Republic of 'eland' and the Chai'ities Act 2011. The financial statements have beeli piy)ai'ed under the hisloi'ical cost Convcntion, as modified by the revaluation of certain asset& The presentation curi'ency of the financ&al statements is the Pound Sterling (£). Income All income is I'ecognised in the Statenient of Financial Activities once the charity has eii¢illeincnt to the nds, it is pIDbable that the income will be received and Ilie ainount can be measured reliably. Expeiiditurt Liabilities are recognised as expenditure as soon as Ihere is a legal or construetive obligation comniilting the chaj'ity to thaL expeiiditure, it ffts 'Obable that a transfer of economic benefits ivill be requii'ed in settlement and the aniount of the obli8atioii can bc nieasured relÉably. Expenditure is accounted foi. on ali accmals b&8is ttnd has been classitied under headings that aggi'egale 211 cost related to the category. Wiere costs caEU)Ot be dii'ecLIy attributed lo paiticular headiiigs they liave been allocaied to activilies on a basis consistent with 11)e use of resources. T2nglble fJJed assets Depreciation is provided at the following annual rdtes in oftler lo Mryite off each asset over its eqtimatcd useti]I life. Land aiid BuÈldin&s Equipment Pi¢lui'es and teraCtS Ivo on cJ)st IOIIA on CA)St not piDvided Taxatio chat'ity is exempt fmm lax on its charitable aclivilies. i und Accountlng Unitstricted funds can be used in accordance with the charitable objectives at the disci'etion of the tsustees. Resti'È¢ted funds can only be used foi. particular 8.ICted PU4KJses within the objects ot the chai'ity. Rests'ictioiis arise ivhen specified by the donor or when funds ale raised for particulai. itrIcted pun)oses. Fuither explanation of the natur¢ and purpose of eath fund is included in the noles to the financial stateinenls. Fixed assets Land aiid BuildÉngs and EquI1¢t These are iialued on the basis recoinmeEided by CIPFA and in accordance with Uie Valuation Standards as issued by the Royal Institution of ch811ei.ed Sunteyors. Revaluatioiis air done every year to ensure that the revalued atnounts show a ts'ue and fail. view. Pictures and Arlefacls The.se air held in peipeluity and have no delennitiable usefvl life. The method for valuing these assets is now based on insurance values (previoiisly histoi-ic cost valiiations ii'ere used). Iteins iyith a purchase price of less than £5,0(10 are chai-ged tr) thc revenue account in the yeai. of xcquisition. and al'e not included itt the value ofpictui'es and Artefacts. Page 10 conlinued...
Ferens Art Galler Notes to the FinaiiciAI Statements - cOtInued for the ear ellded 31st Mayeh 2024 DONATIONS AND LEGACIES Capital wo5 to the 't Gallay are funded by Kingslon upon Hull City Council. Purd]e9 of pictui'es and artefacts al'e fitnded by contributions finm the Ferens Art Gallery Endownlenl Fun other alls and cultural bodies and voluntary donations. 2024 2023 Conti'ibutions from Ferens Art Gallery Endowment Fund Donations I'e1Ved via Charities Aid Foundalion (CAF) 3?lJO 3,480 250 3,300 AUDITORS, REMUNERATION 2024 2023 Fees payable to the charity's auditors for the 8udit of the cEwity's financial stateiiients 3,300 TRUSTEES, REMUNERATION AND BENEFITS There were no tsi]stecs' IrMUn.Èi0n or oth. benefits for the ye. ended 3 1st Mairli 2024 1101. t.or the year ended 3 1st March 2023. Ti'ustees, expens¢s There ivere no 3 1st Mai'cli 2023. twstees, expenses paid for the year ended 31stMai'ch2024 nol foi. the yeai. ended TAIYGIBLE FIXED ASSETS Pictui'e5 3nd ArtefacLs Land and Buildings Equipnient Totals COST OR VALUA TION At 1st April 2023 Revaluations 25,912,299 2528,025 37,985 77,S69,183 9,609 66 103,519,467 12,137,291 At 3 1st March 2024 28,440,324 87,178.449 115 656,758 EPRECIATION At ISL April 2023 Charge for year Revaluation adjustments 37,985 37.985 251,804 {251804 251,804 2SI,804) At 3 1st March 2024 37,985 NET BOOK VALUE At 3 1st March 2024 28,440 24 87 178 449 115 618,773 At 3 1st March 1023 25,912.299 77.569,183 103,481482 Pagell continued,..
Ferens Art Calle Notes to the FlnaiiciAI Sttemenls- continued foi. the eaj. elided 31st MA Yell 2024 TANCIBLE FIXED ASSETS- eontiilued Cost oi. valuatiOEt at 3 1st Mairli 2024 is rep'esented by: PictreS and Aitefaets Bulldiugs Equipmellt Totals Valuations 2010 to 2024 Cost 19841,658 76.874,890 10,303,559 96,716,548 18,940,210 37.985 28WOJ24 37985 87,178,449 115,656 758 *The cost figui'e shoivn above includes all valuations UP to 3 1st March 2009. Tliis is the earliest daLe foi. iYhi¢h Ive have been able to ascertain wliat the carrying atnount uvuld have iKen had the assets been cai'ried undei. the cost model. Tlie Land and Butrldings are valued on the basis ircomniended by CIPFA and in accordance M'ith tiie Valuation Standai'ds 2s issued by the Royal Iiistilution of Charlercd Surveyors. Tlie lasl valuation was carried out on 17th June 2024 by Hull City Council which valued the Land and Buildings at £28,440,324 with an effective date of 3 1st Maich 2024. The pi'operty valuation ftir the Ferens Art Gallery includes the area in which the La Loggia cafe is located. The cafe is lun by Hull Cultuir and Leisure Limited who are responsible lor its maintenallce. FereAS Al't Ga11Y lias a membership with the Conteii)pornry Arts SoeÈety, through Ivhich works of art al'e purcl)ased with the aid of Lotteiy funding. Following the additioiis shoi¥n in d)e 2004105 accouiits Lolalling £60.048 Ivhicli becanie Ferens Ai'l Gallay assets in the year ending 3 Ist Decei111. 2014, 110 rthel. purchase5 of this nature have been capilalised. The piclui'es and t¢facts al'e included at the value they ar¢ insured for. Experts consider wliethcr tiieir aj'e any reasons to believe that ther¢ has been a material chaiige in value of the pictures and arlefacts on an annual basis. CREDITORS: AMOU]YTS FALLITrIC DUE WITHIN ONE YEAR 2024 2023 Other creditors MOVEMENT IN FUNDS Net niovement in funds At 3113124 At 114123 Ulli'estricted fuiids Fixed Asset Reserve Adopl-a-painting Scheme 103,477979 117 12,136J31 115,614JlO 117 103,478,096 A2 136,331 115,614,427 TOTAL FUNDS 103 478 Ib96 12,136J31 115 614,427 Page 12 coi)tinued...
Ferens Art Galler F4ote5 to tbe Finaneial StAtemenfs- eontinued foi. the ear ended Jlst m81.cb 2024 MOVEMENT IN FUNDS - coDtinued Net movetnent in inclu(kd in the 21KJve are a5 folloi¥s: Inconiing resources Resourcas cxpended Gaiiis and losses Movement ii) funds Uiirestrlcted fullds Fixed Asset Reserve 3.300 (256064) 12,389,095 12,136?31 TOTAL FULYDS 256.064) 12,389,095 12,136J3 CompArativ¢s foi. movenielll funds Net movemeiit in funds At 3113123 At 114122 Uiii'estritted fullds Fixed A&8et Reseive Adopt-a-painting Scli¢me 99,545.193 117 3,932.786 103,477,979 117 99 545JlO 3.932 786 103 478 096 TOTAL FUNDS 99,545 310 3 932 786 103,478.096 Coinp&?tive net movement in funds, indudcd in the above are as follows: Incoming resources Resources expended Gains and losses Movenient in funds Uiiresli'icted funds Fixed Asset ReSee 3,730 (215.846) 4,144,902 3,932,786 TOTAL FUNDS (215.846) 4 144 902 3 932.786 A curiEnt year 12 months and prior year 12 months combined w>sition is as follows: Net InoiTemit in funds At 3 Ir3124 At 114122 Unrestrieted funds Fixed Asset Reserve Adopt-a-painting Schalle 99,545,193 117 16,069,117 115,614,310 117 99,545 310 16069117 115,614.427 TOTAL FUI¥DS 99 545 310 16,069.117 115 614,427 Page 13 continued...
Ferells Art Callei Not to the Finaiicial Statement5- eon¢iiiued foi. the ear euded 31st )AAI'ch 2024 MOVEMENT tN FUNDS - eontinued A currenl yeai. 12 months and prioi- year 12 months combined nel iijovement in funds, included in the atM)ve are as follows: Incoming reSoUeS R&8ources expended Gains and losses Movement in funds Ujii'esti'icted funds Fixed Asset Reseiwe 7,030 (471,910) 16,533,997 16,069,117 TOTAL FUNDS 471.910) 16 533 997 16,069,117 Purposes of funds Fixed Asset Resei've I'he fund was seIp foi. the conslruclion aiid fiimishin8 of an Art Gallery. Adopt a Paillting Sclieme Tlie Feren5 Al't Gallery houses an inteiMationally signiflrdnt collection of ivork ranging fiom Old Mast8 thiough lo 21st century contemporary arl. Tl?e Galleiy is dedicated lo making all of tile art in its cat'e #ccessible to as many people as pos3Éble. An tmp)i'lant aspeet of this is ensuring that ivoi'ks al'e preserved in as good a condition &s possible so thal they can be enjoyed by iiisitors now and in the futuir. The Adopt a Painting schcnie was set up to enable individuals contribute in whole or parl to the Irstoratioii and conservation of key w0S Èn the Fatns Art Gallery. REI LATED PARTY DISCLOSURKS Thei'e weir no related party transactions for the year ended 3 Ist Mat'ch 2024. Page 14
RECISTERED CHARITY NUMBII R: 1003774-1 i't of the Trustee5 and Finallelal Statements for the Year Eiided 31st March 2024 for Fei'ells Art Callei Ethdowwent Fund Sa(kJfskys Statutory Auditors Princes House Wright stet Kinston upon 14ull HU2 814X
Fei'ens Arl Callei Eiidowniellt Fulld Colltenls of the Finaneil Statemeiits for the ear elided 31st MAreh 2024 Page Repoi of t]ke Trn5tees I to 3 Repoi't of the Independent Audito 4 7 Statement of Financial Aetlvlties Balance Sheet Not to the FinaneiAI Stal¢ments 10 to 14
Fereus Art Gallei Eiidoivmellt Fund Re ort of tke Trustee5 fov the eaj, ended 31st Mairli 2024 The h'ustees present tlieir report with the fÉnancial statements of the charity fot. the year ended 3 1st Mai'¢h 2024. The ti'ustees havc adopted the piovisioiis of Accounting aiid Reporting by Charilies= Statetnent of Reconinieiided Pi'actice applicable to ehaiities prepai'ing iheii. accounts in accoi'dance with the Flliancial RepoitÉng Standard applicable iii the UK and Republic of Ire13nd (FRS 102) (effective fi January 2019). OBJE4 CTIVES AND AcfiviTIES Objee¢ives, aiiiis And public benefit The Fel.]S Ai'l Gallery Endowment Fund was establislied in 1928 to wovide funding for tlie purchase of ai'tworks. T]ie tj'ust deed stipulates that a pi'oportion of the annual income shall be applied towards the eost of Inainlenance, pkeep and annual expenses of the Ferens Art Galleiry. Tlie balance of the incoine is to be used in defrayiiig the cost of acquii'iiig any pkctwys, slatuaiy 01- other WO of art which the corporation or any of its coimnittees may fi'oni tinie to tinie deem it desirable to acquir£ This stipulation etTectively makes the fund restricted as defined by SORP relaling to chai'ities. Kingston upoii Hull City Council operates a Feirns Ai* Collection Fund IF.A.C.F.) for the acquisition of the woi'ks of al't to add to the Ferens Al't Gallery pern]anent collection. The l."ei'ens Art Galleiy Eiidownient Fund (F.E.F.) has Exen established as the majoi. source of incoine to fffiiiance F.A.C.F spending. Balances are periodi¢&lly transferred from the F.E.F. to supp)rt the F.A.C.F and. in doing so, satisfy the Yequii'einents of the deed. The trustee is of the opinion that is has complied Ivith the duty iii Section 4 of the Charities Act 201 I witli reS'd to public benefit guidance publislied by the Cliarity Commi&sion ACHIEVEMENT AND PEI RFORMANCE Tlie annual Lonlribution iiiadc tothiards ilie wnnill8 costs of ihe Ferens Art Gallery foi. tl)e year ended 31 Mai'ch 2024 vas £24,983 (2023: £18,426). Other expendituie included £52,072 (2023: £48,490) to HSBC Pi'ivate Bank ii) respect of fund En&nagemeAt services and £5,874 (2023: £6,955) lo Kingston upoii Hull City Council foi. support seivices. Incoine from investEnents and interest w1nted to £224.842 (2023.. £165,832). FtNANCIAL REVIEW FinalleiAI posltio The firtancial position of the charity is strong Witli net &ssets At 31 Marth 2024 amountillg to £9,343,670 (2023: £8,277,418). Investine]]t policy and objectives The aini of ivhicli is to Iniiiimise the financial iisk whilsi seeking to maintain adequate levels of incon)e. This policy Ivill be i'eviewed aThnually. Reseiyes policy Tlie TnJsÈ Operat a Reseiyes Policy WhebY Ille thnd retains sufficient available funds to continue its opd?tions, Going coneerll The cliarity has sufficient I'esetves lo enable any debts to be paid as Ihey fall due. The tru5t¢cs do not t"oi'esee any problems in the next twelve months from the datr Ihat these financial statements are authoiised for i&sue. STRUCTURE, GOVERNANCE AND MANAGEMENT Governing docunient The cl)arity is colltrolled by ffils Soverning documenl, a deed of trusl and constitutes an unincorporated charity. Ferens Art Gallery ivas built in 1927 from monies held in a trust fund sct up in 1919 by T.R. Ferens. The Art G&lleiy is held trusi by Kingston upon Hull City Council for "the exhibition of works of art in pei'peLuity" Folloiving the Completion of the Gallery, the Ferens Art Gallery Endowment Fund established by a deed of trust dated 15 Mgrcli 1928, to provide funding for the pui'chase of artworks. Ferens Al't Galleiy was i'egi,stered as 8 charity on 5 August 199 I, wilh the Ferens Art Galleiy Endowmcnt Fund being its eonstituetjt charity (no 1003774-1). Page I
Ferens Art Calle Eudoivnicllt Fund oi't of the Trustees eai. elided 31st Ilat'ek 2024 for the STRUCTURE, GOVERNANCE AND MANAGEMENT Recruitment and aijpointinent of Jieiv tiwsttts Kingston iipon Hull Cily Council is die sole tsustee but it is the Council's Cojporate Tiustee Commiltce as per the Council ci)nstitution Ihal exeicises control. The i'eci'uitment and aptKJintment is based solely on ivhen there are changes to tl)e Commitlec 85 a result of official local elections. OIEaiiisatiollal structure Icingslon uE)on FIull City Council is the sole bvstee of the FetEns Art Gallery Endowinent Fund. Tlie thnction of the stee is exeicised by the Council's Corporate Tiustee Conimittee as per the Council constitution. The curi'ent memb3 of the Coi'l.ate TNstee Committee are Cauncillor J. Dad, Couiicillor R Pritchard and Councilloi. M. Ross. Tlie Corpoi'ale Trustee Committee is responsible for ensuring thal arran8e4i1ents are iM&de for keeping pjopei. books of accounl Mthich repi'esent a true and fair view of the atA"airs of Ili¢ Trust in Irspecl of activities. It also ensui'es tliat the rftnancial statements have been properly prepared in accordance with the Trust Deed, the Chaj'ities Act 2011 atid the Stateinent of Recomnjended Practice Accounting and Reporting by Charities (effective l January 2019). The trustees conttnue to piD¢ure fEnancial, legal and searlarial support and advice fiDm Kingston upon Hull City Council. llldvetlon and traiiiÈug of new ti'u$tees The councillors are given a copy of the heMe document together with any arneThdMts made to it and a cop), of the latest chai'ity report and the accounts. Rlsk m#llageiuent The trustees have a duty to identify ai)d VieI the risks to which the charity is exwLsed and to ei)sui'e 8ppropi.iate conlix>ls are in place to provide reasonable assurance against fraud and etTOr. I"he CharÈty has identified the I'isks to which it may be exposed and has in1pln¢nced a i'isk Manage1nll strategy ivhich compi'lses. an annual review of the I'isks which the Charity niay fa the eslablishinent of systems and pi'ocedui'&8 to mitigate those I'isks. the iinplementalion of procedures designed to minimise any potential in)pac¢ on the Chai-it>p sliould any of those risks materialise, REFKRE]YCE AIYD ADI¥IINISTRATIVK DETAtIs Registei'ed Ch*rity Duber 1003774-1 Princiijal addr¢ss Icingslon upon Hull City Council Guildhall Alfred Geldei. Street Kingstoii upon Flull FIUI 2AA T[st¢eS Kingston upon Hull City Council Audltors Sadofsky5 Statulory Auditoi Princes14ouse Wi'ight Street Kingston upon Flull HU2 8HX Page 2
riei'ens Ai'l Gallci I ndoivniellt Fund ort of tbe Trustees for the ear ended 31st Mai'cli 2024 REFERENCE AND ADMINISTRATIVE DETAILS Bankers National Weslniinster Bank plc 34 King Edwai'd Street Kingston upon Hull Fmsl Yoi'kshii'e HUI 3SS lllvestiueikt Consultants HSBC Pi'ivate Bank (UK) L&mited 8 Coi'k Street London WIS 3LJ STATEMENT OF TRUSTEES, RESPONSIBILITIES The ti'ustees al-e respoiisible for prepai'ing the Repoi1 of ihe Trustees and the fmanci21 statenients in accolance ivitl) applicable law and Uniied Kingdoni Accountin8 Standards (Ui)ited Kingdom Geiierally Accepted AccountiEiE Praclice). The laiv applicable to Chariti in Eiiglai)d & Wales, the Charities Aci 2011, Chai'ity (Accounts and Repoils) Regulations 2008 and the pi'ovisiolls of the trust deed requires ihe tsijstees to piEpaie financial statetnellts foi- each ritiancial yeai. which 8iiie a t1C and fair view of the stale of affairs of the Ch.1[Y and of Ihe incoming I'esoui'ces and application of resoui-ces, includirtg the iiicome and eXpdItUE. of the charity for that pei'iod. In pitparing d)0se Financial Statements, the Ti'ustees are required to: select suitable accounting wlicies and then apply diem consistently. obseive the methods aiid priiiciples in the Chai-ity SORP. - Inake judgements and estiiiiates that a]'e Itasonable and pLdent. prepai-e the Financial Staienients on the going cmcern basis unlS it is inappropriate to 'C&ine that Lhe Chai-ity ivill continue iii busiiies5. The Ti'ustees are responsible for keeping piDper accow)tin8 I'ecords wh&ch disclose with Leasonable accurncy al an5, tinie the fEnaneial position of the Cliarity and to enable them to cnsure Ihat the Financial Statements coniply with tlie Cliai'ities Act 201 I, the Chai'ity (Accounts and Reports) Regulations 2008 and the proiyisions of tjie tiust deed. lThey are also i'espoilsible foi. safeguaidirtg the assets of the Charity and hence for thking I'easonablc step5 for Ihe pi'eiiention and deieclion of fraud and other iii-egularitiek Appi'ovcd by older of the Council's CorpNJt7te TNstee ComEnittee a¢lin8 as sole trustee on 28tb Ociobei. 2024 and signed OEI its behalf by.. Councillor Jackie Dad - Chair of Ilje Committee Page 3
)ort 4)f tlie Inde enden¢ Auditors Éo tlie Truste&s of Ferens Al't Gallei I ndowiiient Fumd Opinioii We liaiie audited Ilie financial statements of Fa'ens Art Gallery Endowliient Fund {the 'chai'ity') foi. the yeai. ended 3 1st Mai'cli 2024 whicl? coiiipi'ise the Statement of Financial Activities, the Balaiicc Sheet and noles to the finiukcial stateinenls. including a suiiiinaiy of significant accoui)ting policies. The financial rew)rting fi'atliewoi'k Ihat has been applied in their preparntion is applicable law and United Kingdom Ac£ounting Standards {United Kin8doiii Genei?Ily Accepted Accoui)ling Pi?clice). In oui. opinion the financial ststemeiits: give a true and fair view of the stale of the eliarity's affairs as at 3 1st March 2024 and of its incoming resources and applicatioii of SOUrCes, toi. the year then ended. have been propei'ly pi'epared in accordaiice witti United Kingdom Generally Accepted Accouiiting Practice. and have been prepaird in accordance with the requirenients ofthe Charities Acl 2011. Basis foi. opiiiion We conducted oui. audit in accoi'dance with Intemational Standards on Auditing (UK) (ISAS (UK)) and applicable law. Our I'esponsibilities uiider those standards are fui'ther desei'ibed in the Auditor5, responsibilities for ihe audtt of the fiiiancial stateinents section of oui. IiporL We are tndependcnt of the el)artty in accoi'dance ivith the ethical I'equii'eiiients that are i-elevant to our audit of the financial statejnents in the UK. iiicluding the FRC'S EthÉcal StaRd&i'(L and we have fulfilled our oihei. ethical responsibilitics in accoixlance with the requiretnenls. We belteve that the audit evidence we have obtained is suificient and ap.Opriate lo provide a basis for our opinion. Coiiclusions rclatillg to going concern In auditing tlie financial stalemenls, we have CO]Uded that the trustees, use of the going cotkcern basis of accounting in the pi'eparalÉon of the financlal sta¢¢n)ents is appropriate. Based on the woi'k we have pei-foi'iJ]ed, M'e havc not identifIed aiiy material uncertainties I'elating to events oi. conditions thaL ind&vidually oi. collectively, iiiay casl signifieant doubt on the chai'ity's ability to eoiitinue as a going concerii tor a period of at least Lwelv¢ mottths froin when Il)e ftnancial ststeiiients are authoi'ised foi. issue. Oui. responsibilities and the responsibilities of the trustees wlth iupect to going concern e described in Ilie relevant se¢Lions (Jf this reporl. Otlier information I'FLe Ii'ustees ale I'esponsible for the other infonnation. The other Infoi'matil comprises the informalion included in tlie Annual Report, oihcr than the financial slaletnents and our Report of the Jndependent Auditoi's thei"eon. Oui. opinion on the fan¢[al statetnenls does not cover the other information and, except lo Ilie extent otheiwise explicitly staled in oui, report, we do not express any foiin ofassurance conclusion thereon. In coniiec¢ion iipith oui. audit ot the financial statemen14 our responsibilÈty is to read the other infoiJnatioi) aiid, ift doing so, consider Ivheihei. the other information is materially incoiisisteiit with die fiiiancial statenients or out. knowledge obtained in the audit oi. otherwise appeaiy lo be materially misstated. If we Édenlify such material inconsisteiicies 01- appai'ent material mis3tateinents, we air I'equired to detemiine whdher tl)is gives rise lo a material niisstatement in the financial stateinents themselves. If. based on the ivoik we have perform we conclude that Ihei'e is a niaterlal misslaleinent of this other infornialion, Ive are required to repoit Ihat fact. We have nothing to report in this I'egard. MAtters on wbich JY¢ are i'eqknii'ed to i'epoi't by exception We haiie nothing to Irpoi'l in Irspect of the folloiviiig matters wher¢ the Charilies (Ac£ounts and Repoits) Regulalioiis 2008 requu'es us to i'eport to you if, in oui. opinion: the infoi'mation given in the Repoit of the Trustees is inconsistent in any mavial irspect witl) the financial statement5. 01. sufficient accounting recoixls have not been kepL or tlie fEnancRal stateinents att not in agreenienl witli the accounting recoi'ds and J'ethi'ns. or ve havc not recetved all dic iThfoi'mation ld exp18nations we require for oui. audit. Page 4
Re oi't of the Inde elldent Auditoi's to tlie Ti"ustee5 of Ferens Al't Gallei- EndOnellt Fuud Resi)onsibilities of h'ustees As explained Iiioie fully in the Statement of Tnle¢s, Resw)nsibilitics, the li'usiees are reswnsiblc foi- the pi'epai'alion of the financial slatemeEkts which give a true and fair vifflv, and foi. such inlernal control as the trustees delei'iiiine 13 necessary lo enable the pi'epai'alion of financial slatements that are free fi'oni material niisstatement, whetliei. due to fi'aud oi. ei'roi.. In pi'eparing the fuianci&l statements. the Irustees are respons&ble foi- assessing the charity's ability Lo continue as a going concci'n, disclosing, as applicable, matters iElated to going concern and using the going concern basis of accoiintiiig unles3 the Iwslees either illtend to liquidate tlie cha]ity or to cedse operations, or have no realistic alteJMative but to do so. Page 5
oi't of the lllde )eiideLt AuditOl'S to tlie Ti'u5t¢es or Ferens Art Gallei Endowineiit Fund Oui. I'e5yonsibllities foi. ¢lie audit of the fuigiicial stkfeinents We have been appointcd as auditors under Section 144 of the Chajities Act 201 l and rewrt in a¢colanCe ivith the Act and relevant I'egulations made oi. having effect thereunder. Our objecliijes air to obtain Jeasonable assui'anee about whether the fingncial stateiiients as 8 whole are fire from nialei'ial misstalemenL ivhethei. due to fraud or a'ror, and to issue a Report of the Independent Audito1 that ii)clvdes oui. opinion. Reasonable 8ssurance is a high level of assurance, but is not a guai?ntee tiiat an audit con(fucted in accordance with ISAS (UK) will always delect a malei'ial misstatemenl ithen it cxists. Misstaleinents cali arise fi'oiii frnud oi. ei'roi. and al'e considered Iiiatei'ial if, individually or in the agrgate. they could reasonably be expecled to influeiice the econoiiiic decisions of usel% taken on the basis of Uiese financial slatemetits. Tlie exletLI ¢0 which oui. pi'oceduyes are capable of detectiiig ilTe8ularities. including fraud is detailed below.. Our appioach lo identifying and asswsing the risks of nia1&1 niisstatenient ii) respect of ll'regularities, including fraud and noii-cainpliance Ivith laivs and I'egulations, was as follows- the engagement partner ensured that Ihe engagejmertt team collectively had the approRxiate competence, capabilitics and skills lo identily or recognise non-eonipliance witl) applicablc lai1% and I'egulations. Ive identified the laws and I'egulations applicable to the charity through discussions with the trustees and other maiiageinent, and fiDm our comniercial knowledge and experience of the charity sector. we focused on specific laws and i'egulations which we considei'ed may have a dTI'ect materÉal effect on tl)e finaiicial stateiiients oi. the opernlions of the charity, including the Ch'itieS Act 201 I, the Cliarilies Statenient of Recolnnilded Practice (SORP). taxalion legislation, data proteelion, anti-bribwy, employmenL enviiDnniental and health and safety legislation. Ive assessed the extent of compliance with the laws and i'egulations identified above l-OU8) making enquii'ies of management and inspecting legal ¢oi'respondence' and identified laws and I'egulalions We communited within the audit team re8ularl)i and Ilie tean) remained alert to instances uf non-¢onipliaiice thioughout the audiL We assessed the susceptibility of the chaiity's financial statements lo nialerlal Inisstateinen¢ including obl&iniEVd an underslaiiding of how fraud might occui., by= makffing enquii'ies of Jnanagcmenl as to where they eonsidered there was sus¢eptibilil)' to fraud, theii. knowledge of actual. suspected and alleged fraud. and consideiiiig the internal contro15 in place lo mitigate risks ot'fraud and tnOMpliSfiee with lawg and regulations. To address the i'isk of fraud through manageinenl bias and ovejride of contsY)Is, M'e.. pei'foimed analyticnl proceduirs to identify any unusual or unexpected relationship tested joui'nal ents'ies to identify unusual tt7nsactions' assessed whether judEenients and umPtionS niade in deterniining the accounting estimates werc indicative ot" potential bias. and investigated the rntionale behind significant or unusual trnnsactions. In itsponse to the I'isk of iiyegularilies and noTrcompliance with laws and regulations, we designed pro¢edui'es which included. but were not liniited to.. agi"eeing financial slatetnent disclosuw lo undeAying suprting documentation. readin8 the niinules of nieetings of those charged with goveimance. enquii'ing of nianagement as to actual and wtential litigatiorft and claijns. and I'eviewin8 COI'Ltsponden¢e with FIMRC, iilevant IEgulatlM'S and Ihe charities, legal advisors. There are inherent liniitations in oui. audit procedur&s de$'1bed above. The more I'emoved Ilial laws and regulations al'e froin financial li'ansactions. the less likely it is that we would become a¥re of non-eoEnpliance. Auditing standai'ds also liiiiit the audit procedui'es required to Fdentify non-compliance with laws and IE8ulations lo enquiiy of the ti'ustees 8nd other management and the inspeclioii of Irgulaiory and legal conrsponden¢4 if any. Matei'ial misstatements IhaL ai'ise due kn fixud can be haidff to detect than those that arise from enor as they may involve delibei'ate concealment or collusion. A fiu'tlJei- description of our responsibilities for the audit of the financial ststements is located on the Financial Reportin8 Councfftl's website at www.frc.org.uklaudit013responsibililies. This description foiThs part of oui. Repoit of the Ind¢perJdent Auditor& Page 6
rt of tlie Tnde elldent Auditoi's to the Trustees of rlei'ells Art Gallei. End01vent Fund Use of our i'epoi't This i'cport is Inade solely to the charÉty's trustees. as a body, iii accordance with Part 4 of the Cl)arities (Accouiits and Reports) Regulatioi)s 2008. Oui. audit work has been undertaken so that we might state lo Uie charily's tiijslees 11)ose mauei's Hie al'e I'equii'ed to stale lo them in an auditors. repurt and foi. ilo oihej. PUEyose. To ilie fullest extent pciniilted by law, ive do not accept or assume responsibility lo anyone otlier than the di.ty and the d)ai'ity's trustees as a body, foi. oui. audÉt wo1*, for this repoit, or (or the opinions we have toiyned. Sadotskys Slalulory ALEdilois Printts l-Iouse Wi'iglit Street Kingston upon Hull HU2 8HX IstNoveniber 2024 Page 7
Ferells Art GalleT EndoivweD¢ Fuiid statenient of FinaneiAI Aetivities for the eai. elided 31st ftrlAI'th 2024 2024 Total funds 2023 Total funds Restricted fund Endowment fund Noles INCOl1 Af4D ENDOWMENTS FROM InvesliT)cnt income 224,842 224,842 165 832 EXPENDITURE ON Raising funds 6,717 51,229 57,946 55,445 Cbai'itable activities Ferens Att Collection Fund Hiill Culture & Leisure Liniited Goveinanoe costs 3JOO 24,983 3,300 24,983 3,480 18,426 Total 38,240 89,469 80.351 Nel gainsl(losses) on investments 930,879 930,879 28 156) NET INCOME 186,61b2 879,650 1.066,252 57,325 REC0Tr4CILIA TION OF FUNDS Totsl funds brought foi'ward 1.128.451 7.148.967 8,277,418 8,220,093 TOTAL FUNDS CARRtED FORWARD 1,315053 8,028,617 43,670 8,277418 The notes foi'm part of Ih&3e fancial statements Page 8
Fere115 Art Galler Endoivmellt Fund Balai)ee Sheet 31st March 2024 2024 Total funds 2023 Total funds Restricted nd Endowment fund Notes FIXED ASSETS Investments 7,97&342 7978,342 7.099,481 CURRENT ASSETS Dcbtor5 Cl in hand J J43.485 1,343,485 63.731 1,150,083 61.757 63,731 1?43,485 63.731 1,41b7,216 1,211,840 CREDITORS Amounts fallin8 due witliin one yeai. (28,432) (13.456) (41,888) (33,903) NEIT CURRENT ASSETS IJIS 053 50.275 1,365J28 1177 937 TOTAL ASSETS LESS CURRE]¥4T LIABILITIES 1,315,053 8,Ib28,617 9,343,670 8,277,418 NET ASSETS lJ15.053 8 028ffj17 9 343,670 8 277 418 FUNDS Restricted funds idoivii)ent fuiids 1,315,053 ,028 617 1,128,451 7,148 967 TOTAL FUNDS 9,343,670 8 277418 Tlie financial slateincr)ts werc approved by the Council's Corpoi'ate Ttee Conunittee acting &8 sole tivstee and aLlthoi'ised for issue On 28 October 2024 and were signed OD its behalf by: Coiincilloi. Jackie Dad - Cliaii. of the Comimittee The notes forni part of these finartcial stateinents Page 9
Fei'ens Art GAllei Endownie)i¢ Fund Noles lo the Fiuaiieixl Statements for the ear ellded 3 1st Marclk 2024 ACCOUNTING POLICIES Basis of pi'¢pariiig tlie fEiiancial stateNent5 The fil01a1 statements of the chai'ity, wliich is a public benefit entit), unda. fRS 102, have been prepared in accoi'dance with the Chai'ities SORP (FRS 102) 'Accounling and Reporting by Cliarities.. Statement of Recoiiimended Practice applicable to charities pi'ep¥wing Iheii- accounts in accoi'd&nce with the Financial Repoi'ling Standard applicable in the UK and Republic of b'e1]d (FRS 102) (effective l J&nuary 2019),, Financial Repoiting Standard 102 'The Financial Repotting Stsndard applicable in the UK and Republic of Iitland, and the Charilies Act 2011. The financial statements have been pir4)ared under the histoi'ical cosl convention, with the excq)tion of Investments ivhi¢h are included at inaAiet value, as modified by the revaluation of certain assels. The pftsentalion curirncy of the financial statelnents is the Pound Sterling (£). Income All income is i'ccognised in the Statenient of Financial Activitics once the d)arily has entitleinent to the fvnds, it is PIDbable that the income will be received and the amount be ffleasured reliably. Expenditui'e Liabilities are reeognised as expendilui'e as soon as thcre is a legal oi. constructive obligation eomi))ilting the chai'ily to that expendittJr¢, it is probable tliat a ILansfa' of eeonoiiiic benefits will be requii'ed in settleiiient and the aniouiit of the obligaeion call be niwured reliably. Expenditure is accounted for on an accruals basis and lias been classified under headings that aggregate all cost relatd to Ihe categoiy. we costs car)nol be dii'ectly aul'ibuted lo partieular headings they have been allocated to activities on a basis consistent i¥ith the use of resources. Gi'ants offered subject to conditions which have not beth met at the year end date at-e noted as a ¢ominitnienÉ but not acc]'ued as expenditure, TAxxtion Tlie charity is exempt fmm tax on its charitable activitie5. Fund aeeountiug Unrestricted funds can be used in accordance M4th the charitable objectives at the disci'etion of the tt'ustees, Resti'icted fuiid5 Can only be used for particular restricted purpjses within the objects of tile chai'ity. Restri¢¢ions ai'ise when specified by the donor or when funds are raised for particular restricted purposes. Furthei. explanation ofthe nature atml purwjse of each fund is induded in the notes to the financial statements. Endoivinent funds - these fidS Erpi'esenl assets wliicli must be held pcrmanentiy by the th&rity, priiicipally investments. Incom¢ arising from the endowii)enl can be used in accordan(% iyiih the objects of the charily and is included as restricted incoiiie. Fiied asset investjnents and stoeks & shaves Fixed asset investments al'e included at niai'ket value ai the balance sheet date. Any gain oj. loss on i'evaluation is takell lo the statenienl of financial activities. Stocks and shares are included at Inad(et iialue at the balanc¢ sl)eet date. Page 10 continued..
Feiyns Art Galler Endoivmait Fund Notes to the Financial Siateillents- eontinued for the car ended 315t Mai'eh 2024 INVESTMENT INCOME 2024 2023 Investnietst income Interest oti balances 169,433 SS,409 150.722 15,110 224,842 165 832 RAISING FUNDS Investment nianagement costs 2024 2023 Fund maiiagemcnl costs Supporl seryices recharge 52,072 5,874 48,490 57,946 AUDITORS, REMUNERATION 2024 2023 rees payable to ilie charity's auditors foi. the audit ot the charity's financtal ststements 3,240 TRUSTEES, REMUNERATION Af4D BENEFITS There were no trustees, I'emunerattoii or other ttheflts for the year elided 3 1st Mth 2024 rt01' foi. the year ended 3 1st Mat'ch 2023. Ti'ustees, ¢ypellses There ii'ere no 31 st March 2023. truste, expenses paid for thc year ended 31Stmch 2024 noi. for the yeai- elided FIXED ASSET INVESTMENTS The fixed asset investments relate lo stocks attd shairs. These are included in tlie accounts at the following market values. 2024 2023 FÉxed interest Eouities Altei'natives & Fuiids 1,278,713 6,527,631 171998 989,177 5,749,789 360515 7,978,342 7.101,504 The initial FxK)k cost of tiiese investments ivas: 2024 2023 Fixed interest Equitit AlternaLives & funds 1,188,079 5,389,416 171J95 1,013,477 5,490,554 360 514 Pagell continued,..
Fcrens Ar( Calle Endibwment Fund Note5 to the Fiiiattel21 StAtements - continued f&i' tlie eAI' euded 31st iNAAI'el12024 FIXED ASSET If4VEsfMENTS- continued 6,748 890 6 864 545 DEBTORS.. AMOUNTS FALLING DUE WITHIN ONE YEAR 2024 2023 Kittgston upon Hull Cily Council HSBC Private Bank 1,319,661 23,824 1,132,868 1343,485 1 150 083 CREDITORS: AMOUNTS FALLING DUE WITHIIY ONE YEAR 2024 2023 Other ci'editoi's 41,888 MOVEMEiYf IN FUNDS Net moveinent in funds At 3113124 At 114r23 Resti'leted fuiids Resliicied Fund 1.128,451 186,602 1,315,053 Elldo)vJneiit fund5 EndOw1nll Fund 7,148.967 879,650 8,028,617 TOTAL FUNDS 8.277 418 J,066252 9J43 670 Net movement in funds, included in the above air as follows: In(x)miiig resoui'ces Resources &Ypended Gains and losses Movejnenl in funds Restricted fullds Resti'icled Fund 224.842 (38,240) 186,602 Endoiymcnt thlld$ Endomiiment Fiind (51,229) 930,879 879,650 TOTAL FUNDS 224,842 89,469) 930079 1,066252 Pa8e 12 conliiiued...
Ferens Art Galler Endowillent Fulld Tr4otes to the Fillalleial Statements- Continued for tlie egl. ellded 31st March 2024 MOVEMENT IN FUNDS - eontillued Compai'Atives for movement in fun Net movement in fundg At 3113123 Ai 114122 Re5trlcted funds Restricted Fund 994,383 134,068 1,128,451 Endoivmcnt funds EndoMimenÈ Fund 7,225,710 (76,743) 7,148,967 TOTAL FUNDS 8.220,093 57,325 8 277418 Comparalive net movement in nds, included in the above air as follows: Inconiin8 rcsources Resources expended Gains and losses Movement in funds Resti'icted fui)ds Resll'icted fund 165,832 (31,764) 134,068 Endoivmenl funds Endowment Fund (48.587) (28,156) {76.743) TOTAL FUNDS 80.351) 28 156) 57.325 A CUkTellt year 12 months and pi-ior year 12 manths con)bined w)siEion is as follows: Net iiiovement in funds Al 3113124 At 114122 Restricted funds Resti'icted Fui)d 994,383 320,670 1,315.053 Elldoivment funds Eiidomiinenl Fund 7,225,710 802,907 8,028,617 TOTAL FUNDS 8 220 093 1 123577 9 343,670 Page 13 continued..
Feyens Art Galley Endowmeiit Fund r4otes to tlie FinarteiAI St4¢emellts - eoiitlnutd foi. tlie 'eai' ended 31st .Mai'eh 2024 MOVEMEPIT IN FUNDS- continued A current year 12 inonths and prior ycdr 12 m(mths combined net movenicnt in funds, included in the above are as follows: Jncomiiig Irsources Resources expended Gatns and lo&ses Moven)ent in funds Resti'icted funds Rests'icted fund 390,674 (70.(K14) 320,670 Elldoivnieiit funds Endoi¥ment Fund (99,816) 902,723 802,907 TOTAL FUNDS 390 674 (169.820) 902 723 123 577 The I'estricled fund balartces are held and adiiiinistered by Kingston upon Hull City Council. A propoitioii of the annual investment tneome is used towards the Costs of maintenance and upkeep of the Ferens Art Galleiy. The i'emainder is to be used for acquiring picture4 statuary and other woi.ks of ait. The PeFmanent Endowment Fund conipiises: 2024 2023 Ori8inal erkdowment (at Cost) Net g&ins from pi'evious years 22500 7,126,467 22,500 7,203.210 Market Value at 31st Mkrch 2023 Less: Diswsals at book value (proceeds . £3,146,059. loss . .£8.157) Add: A4uisitions at cost Less: Management fees paid Net gainsl(losses) on valuation at yeai. end 7,148,967 7,225,710 {3.137,902) (4,406,370) 3,105,S78 4.253,807 (Sl,229) (48,587) 963303 124,407 Market Value at 3 1st March 2024 8,028,617 7 148.967 io. RELATED PARTY DISCLOSURES There were no i'elated paity transactions for the year ended 3 ISÈ March 2024. Pa8e 14