2023-03-31-accounts

Report and Financial Statements for the year ended 31 March 2023 Charity number 1034245

Cover: Housemates , Hijinx co-production with Sherman Theatre (Image: Mark Douet)

Arts Council of Wales is committed to making information available in large print, braille, audio and British Sign Language and will endeavour to provide information in languages other than Welsh or English on request. Arts Council of Wales operates an equal opportunities policy.

Contents

What we do… ......................................................................................................................................2 Chair’s foreword ..................................................................................................................................4

Trustees’ Report and Management Commentary

Chief Executive’s Statement ....................................................................................................9 Our strategy 2017-2023 ‘For the benefit of all’ ..................................................................12 Public benefit ..............................................................................................................................16 Creative learning through the arts .........................................................................................18 Our performance .......................................................................................................................22 Corporate Governance Our Trustees ..........................................................................................................................38 Governance Statement .......................................................................................................43 Council and Committee Reports .............................................................................................52 Equalities .....................................................................................................................................64 Welsh language .........................................................................................................................68 Future generations ....................................................................................................................70 Environmental performance ...................................................................................................74 Principal risks and uncertainties .............................................................................................78 Financial and business review ................................................................................................86 Remuneration and Staff Report ..............................................................................................94 Parliamentary Accountability and Audit Report .................................................................103 The year ahead: 2023-24 ........................................................................................................104 Financial Statements General Activities .......................................................................................................................109 Lottery Distribution ....................................................................................................................147 Annexes (not forming part of the financial statements) Grants awarded – General Activities ......................................................................................174 National Lottery policy directions ...........................................................................................190 Grants awarded – Lottery distribution ...................................................................................192

Arts Council of Wales 1

What we do…

The Arts Council of Wales is the country’s official public body for funding and developing the arts.

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Established by Royal Charter on 30 March 1994, we exist to support and develop the arts in Wales for the benefit of people throughout Wales, and to support Welsh arts internationally.

We are also a Welsh Government Sponsored Body (W G S B), a National Lottery Distributor, and a registered charity (number 1034245).

Our Royal Charter sets out our objectives.

They are to:

• develop and improve the knowledge, understanding and practice of the arts;

• increase the accessibility of the arts to the public;

• work through the Welsh and English languages; and,

• work with other public bodies in Wales, and with the other Arts Councils in the U K, to achieve these aims.

A copy of our Royal Charter can be found on our website.

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Chair’s foreword

I am delighted to provide this Foreword to the 2022/23 Report and Financial Statements.

Appointed as Chair of the Arts Council of Wales from 1 April 2023, I give my utmost thanks to my predecessor, Phil George, for his sterling leadership, vision and wise counsel. As evidenced in this Report, he leaves a lasting legacy of development, support and advocacy for the arts in Wales. I would also like to record my thanks to Kate Eden who has led as Interim Chair with diligence, compassion and great skill and I am personally grateful to have her ongoing support as Vice Chair. I would also like thank Rebecca Nelson and her finance team for their excellent work in producing these financial statements.

Stepping into this role, I have undertaken a huge amount of research, knowledge-gathering and listening and I know my journey with the Arts Council will be one of continuous learning.

I have been impressed by the volume of activity undertaken during the year. The main focus of the year has been, quite rightly, the Investment Review and the consultation period that helped us to shape our proposed future ways of funding around our 6 principles.

Working with others has been a key theme for the year and several exciting partnerships were formed with common purpose and shared resource.

In support of our work in Widening Engagement, we launched our new funding programme – Perspectives – which contributes to the Welsh Government’s Anti-Racist Wales Action plan. This funding supports seven visual arts organisations to work in partnership with seven Amgueddfa Cymru museums across Wales.

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Moving Beyond Compliance , National Dance Company Wales delivered in partnership with Cartrefi Cymru, to explore how movement can benefit the wellbeing of staff working in care settings. (Image: Jim Elliot)

Our Arts and Health programme continues to break barriers and is leading the way in terms of providing innovative health solutions. I’m delighted to say that the Baring Foundation has invited us to apply for a second phase of 4 year funding for Arts & Minds from 2024-2028.

Our new initiative Creative learning in the early years , launched at the beginning of December 2022, is about to begin its delivery phase. We are working in partnership with the Paul Hamlyn Foundation on the evaluation and a separate piece of capturing the learning is being developed in partnership with Nesta.

Development of our Welsh language plan continues. Welsh in the workplace for the art sector service was launched and commenced with an incredible response that saw our targets being surpassed. Our commitment to the climate emergency saw real focus this year and our Future Wales Fellowship culminated with an event to celebrate the work hosted at the Centre for Alternative Technology.

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Urdd Choir, Katara Village, Doha, during FIFA Men’s World Cup 2022

An exciting programme of activity has been undertaken by our Wales Arts International Team, including new approaches to sustainable development discussions with neighbouring Arts Councils and Creative Carbon Scotland, and we continued to lead the delivery of Arts Infopoint UK . With the support of Welsh Government funding, we led a collaborative international digital and in-person ground-breaking cultural programme for Team Wales for the FIFA Men’s World Cup.

Looking ahead to my first year as Chair, there will be some real challenges, but also huge opportunities to create real change for our communities in Wales, using the arts to improve wellbeing, make connections and inspire each other, for now and for future generations.

Maggie Russell Chair

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Trustees’ Report and Management Commentary

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64.4%

of all respondents in Wales had attended an arts event in 2022/23

(2019/20: 70.4%)

17.8%

of all respondents in Wales particpated in the arts in 2022/23 (2019/20: 19.1%)

92.1%

of all respondents that had participated in the arts in 2022/23 did so at an in-person session

84% of all respondents agreed/strongly agreed with the statement that they want children to attend arts events/do arts activities

Source: National Survey for Wales

The general trend across most audience data is that there is a slow return to attending and participating post-pandemic. This has been hampered by the cost of living impact as well. When considering the last arts event respondents attended, 98.7% indicated that it was in-person and not online.

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Chief Executive

On joining the Arts Council of Wales in October 2022 it was clear that the arts sector in Wales was still coming to terms with the effects of the pandemic, inflationary pressures and the increasing cost of fuel. Many organisations are still facing difficulties in terms of ensuring a sustainable business model which is also having an affect on work opportunities for the freelance sector.

The timely and effective delivery of the Welsh Government’s Cultural Recovery Fund (CRF) had proven invaluable during the pandemic crisis. However many of these issues are ongoing and we have continued open discussions with Welsh Government and other organisations to work together to secure funding to respond to significant future operational costs.

As we continue to navigate the new realities of a post pandemic world and new ways of working, we also appreciate the open and transparent exchange of ideas from all elements of the sector. This is an ethos and a way of working that we will strive to keep as a legacy of what has been a very difficult time for all. Rebuilding engagement with, and attendance at, arts events and replacing talent and key skills lost during the pandemic is vital. There are signs of improvements; but we still need to plan for long-term sustainability, and we will continue to offer support.

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Creative Learning in the Early Years, Sunshines Pre-School, Llanfoist Fawr Primary School

There have been times of celebration and the partnership with the Football Association of Wales on Gŵyl Cymru , held during the Welsh football team’s appearance at the football World Cup, brought new audiences to the arts and new community based organisations were funded by us for the first time. Working collaboratively with other national organisations and Welsh Government is a good example of how we would like to work in the future, maximising impact by bringing experiences of the arts to communities that have not had a chance to engage with the arts to date. This has been done in parallel with our international work, where we also worked in partnership with others to create opportunities for many of our artists under the collective brand of Team Cymru .

We should also not be shy in celebrating our work in Creative learning through the arts and our Arts and Health programme, both of which are receiving international recognition in their approach and methodology and are seen as templates for others to follow.

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I would also like to highlight our work in Widening Engagement in partnership with the National Museum as a key progression to our core values that the arts must be relevant to all the communities of Wales. We are also making broad steps in our commitments to the Welsh language and our work in partnership with National Resources Wales will be a significant contribution on Climate Justice.

We have launched and received applications for the long-awaited Investment Review and I must thank the sector for all their hard work to date and also the dedicated staff of the Arts Council of Wales. The passion, professionalism, expertise, and pace of the Council and its staff has impressed me greatly in what has been a period of significant change. I must also thank Phil George, whose tenure as Chair was cut short due to illness, for all his guidance and generosity with his time and sharing of knowledge. Whilst Kate Eden stepped in as Interim Chair with great professionalism and skill, we now look to the future with Maggie Russell and I look forward greatly to working with Maggie and all the staff and Council members.

We have an unwavering determination and responsibility to ensure the arts once again flourish and advance their engagement and cocreation with the diverse communities and people of Wales, all in the pursuit of the seven goals of the Well-being of Future Generations Act.

Dafydd Rhys Chief Executive

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Our Strategy 2017-2023 “For the benefit of all” The principles that drive our work

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Our mission and our priorities

Making the arts central to the life and well-being of the nation

Our vision is of a creative Wales where the arts are central to the life and well-being of the nation.

Our goal is the re-building of a creative Wales in which our best talents are revealed, nurtured and shared; a country in which the widest possible cross-section of people in Wales is enabled to enjoy and take part in the arts; a country in which excellent work is valued, protected and supported to grow. This is described in more detail in our corporate plan – For the beneft of all.

Two priorities underpin this strategy. They are:

1. Promoting Equalities as the foundation of a clear commitment to reach more widely and deeply into all communities across Wales

2. Strengthening the Capability and Resilience of the sector, enabling creative talent to thrive

Council has also identified a further action to support the delivery of these two priorities:

1. Enabling the Arts Council to work more effectively, collaborating more imaginatively with like minded partners across Wales

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Welsh Government

The priorities of the Welsh Government set the overall context for our work. The Welsh Government’s expectations of us are set out in our Remit Letter which spans the 5 year period of Government 2021-2026. Our shared goals are:

• decarbonisation;

• addressing all inequality and achieving an anti-racist Wales;

• improving access and participation for all;

• promoting health and well-being;

• creating opportunities for young people; and

• projecting a powerful and positive image of Wales to the world.

As a Welsh Government Sponsored Body, we operate within a complex network of public policies, strategies and legislation. The most important of these is the Welsh Government’s Well-being of Future Generations legislation. Well-being and sustainability are fundamental to our work. Our activities address all seven of the well-being goals:

1. A prosperous Wales

2. A resilient Wales

3. A healthier Wales

4. A more equal Wales

5. A Wales of more cohesive communities

6. A Wales of vibrant culture and thriving Welsh Language

7. A globally responsible Wales

We also adopt, in our planning and in the delivery of our work, the legislation’s “five ways of working”: Long-term, Prevention, Integration, Collaboration, Involvement.

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17,579

arts events were run by our portfolio of funded organisations, generating attendances of 3,538,469

69,704 participatory sessions were run by our portfolio of funded organisations, resulting in attendances of 635,636

11,342 12,735 participatory participatory sessions sessions run by were run by our portfolio our portfolio of funded of funded organisations organisations in were targeted Welsh, resulting at people in in attendances the protected of characteristics 76,854 group

2022/23

8,976

arts events were run by our portfolio of funded organisations, generating attendances of 1,961,888

38,981 participatory sessions were run by our portfolio of funded organisations, resulting in attendances of 383,695

3,142 7,415 participatory participatory sessions sessions run by were run by our portfolio our portfolio of funded of funded organisations organisations in were targeted Welsh, resulting at people in in attendances the protected of characteristics 75,316 group

2021/22

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Public benefit

Making the arts central to the life and wellbeing of the nation

In setting our objectives, and in the planning of our work, Council members have given serious consideration to the Charity Commission’s general guidance on public benefit. Public benefit is at the centre of all aspects of our work. This commitment is strengthened by the Welsh Government’s Well-being of Future Generations legislation.

As a Welsh Government Sponsored Body (W G S B) we allocate taxpayers’ money for the benefit of the Welsh public.

The funding that we distribute has a number of public purposes:

• it helps to make sure that Welsh audiences are able to enjoy and take part in high quality arts activities

• it enables investment in the commissioning, production and exhibition of the arts, helping to sustain the careers of creative professionals in Wales

• it makes the arts more affordable, bringing them within reach of more people

• it encourages innovation and risk-taking, raising the quality and diversity of the arts made and promoted in Wales

• it furthers the cultural, social and economic priorities in the Programme for Government.

Public funding also helps to address ‘gaps’ in the market by investing in those activities that the commercial sector either won’t, or isn’t able to, support. In all aspects, our funding is intended to encourage the best of the arts and to enable as many people as possible to enjoy and take part in these activities.

We undertake detailed research each year to assess the extent to which we’re achieving these goals. In the pages that follow, we set out the key highlights of our work during 2022/23 and the public benefit that these activities deliver.

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funding applications processed (2021/22: 1,587) 1741 ,

schools have engaged in the Creative Learning 1262 through the Arts programme since 2015 ,

schools have participated in Lead Creative 741 Schools Scheme projects since 2015

creative practitioner engagements with the 3 350 Creative Learning programme since 2015 , visits to high-quality events supported 1 200 through Go and See since 2015 , teacher engagements with the Creative 6 500 Learning programme since 2015 , learner engagements with Creative 153 500 Learning activities since 2015 , performances supported by the Arts 402 Council’s Night Out scheme (2021/22: 108) Arts Council running costs as a proportion of total income (whole Council) (2021/22: 5.6%) 5.0%

Green Dragon We retained this highest category Level 5 of environmental performance

Collectorplan loans to support the 763 purchase of contemporary art (2021/22: 853)

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Creative learning through the arts

Creative learning through the arts: an action plan for Wales was launched in 2015 as an initial five-year programme. The first phase transformed the learning experiences of learners across Wales by placing the arts and creativity at the heart of education. This groundbreaking programme has supported, and continues to support schools in developing new approaches to curriculum design, supports teachers in exploring innovative approaches to teaching and supports learners to grow as independent, creative learners, who are more engaged, more confident, and higher achievers.

In 2022 we started a third phase of the jointly funded programme which will run until 2025. The programme continues to focus on developing creativity and creative approaches to teaching and learning across the curriculum by providing opportunities to enhance the Expressive Arts Area of Learning and Experience.

It is aligned to the delivery of the Programme for Government 20212026, providing opportunities for our most vulnerable young people to achieve their potential in learning and, through our curriculum enrichment offer, provides cultural experiences to all young people throughout Wales.

Cynefin, Tredegarville Primary School

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Developing creativity remains the key focus of the programme, using the arts as the creative intervention and bringing the skills and experience of creative practitioners into the learning environment to work in partnership with teachers and learners. The current programme includes:

• Lead Creative Schools Scheme A two-step intervention that supports schools to develop their practice whilst exploring the Creative Habits of Mind and the High Functioning classroom in line with the four core purposes of Curriculum for Wales; developing ambitious, capable and confident learners, who are also enterprising, creative contributors prepared with skills for life. The scheme encourages school leaders to embed changes to pedagogy, across their setting, through the design of creative and authentic learning experiences, with the support of Creative Agents and Creative Practitioners.

• Cynefin: culturally and ethnically diverse Wales Schools are given the opportunity to work alongside creative professionals to explore diversity in Wales, past and present. Teachers and learners work collaboratively with creative professionals whose lived experience ensures ‘authentic learning opportunities’ which connect the curriculum to the real world of the learners and their communities.

• Creative Leadership Programme The aim of the programme is to encourage confidence in new ways of working, innovation, reflection, and resilience whilst also developing the understanding of the role of creativity in the context of the Curriculum for Wales, the four purposes and the Professional standards for teaching and leadership.

• Creative learning in the early years Designed to complement the curriculum for funded, non-maintained nursery settings in Wales, this initiative creates inspiring opportunities for artists and early years settings to collaborate through co-constructed projects working with learners aged 3-4 years old. It supports the natural creativity and curiosity of children and inspires early years practitioners with new ideas and approaches to enable creative habits of mind in their practice, across the curriculum, and throughout their setting. This programme is delivered in partnership with Early Years Wales and is part funded by the Paul Hamlyn Foundation.

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Early Years Practitioner Training

• Creative learning conversations (including professional learning package) Creative learning conversations is an open network and series of twilight sessions for provocation, enquiry and sharing good practice for teachers and creatives exploring creativity across Curriculum for Wales. It is also a stimulus for teachers to opt to continue their professional development by linking them with creative professionals to undertake enquiry-led cross-curricular exploration in the context of Curriculum for Wales.

• Go and See offers grants of up to £1,000 and can be used to fund visits to high-quality arts events in galleries, theatres, arts centres and other venues. Events could include visits to performances and exhibitions or visits to experience arts professionals developing and creating their work.

• The Explore fund offers grants of up to £3,000 for learners aged 3-16 years to engage in hands-on activity in the expressive arts, in and out of school settings with external creative practitioners. Explore enables teachers to discover rich, authentic opportunities to enhance and enrich learning within the expressive arts. Teachers will be able to provide their learners with opportunities to explore, refine and communicate ideas while thinking creatively and engaging their imagination and senses.

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Since 2015 Creative Learning Wales has:

• engaged with over 1,262 state-maintained schools (83% of schools in Wales)

• involved 741 schools in intensive creative learning projects through the Lead Creative Schools Scheme

• supported Cynefin projects in 85 schools

• supported 13 Early years settings in the first round and aims to reach 70 in total

• provided 153,500 learner engagements in arts and creative learning activities

• enabled almost 6,500 teacher engagements in professional development and training linked to developing creative skills in the expressive arts

• seen 3,350 engagements with creative practitioners

• supported over 1,200 visits to high-quality arts and cultural events in galleries, theatres, arts centres and other venues through Go and See

• increased and improved over 100 opportunities for teachers and learners in our schools to work with artists and arts/ cultural/heritage organisations on a range of more in-depth and exploratory projects through Creative Collaborations

• provided opportunities for schools and arts organisations to share best practice and find partnerships through Regional Arts and Education Networks

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Our performance A year of strong performance against our corporate objectives

Our Operational Plan 2022-23 represented the last year of Corporate Plan ‘For the Benefit of All’, which ceased at the end of March 2023. We identified 9 key programmes of work and highlighted the key priorities and corresponding actions within each. Each programme area was mapped against the seven well-being goals and 6 Welsh Government priorities in the Programme for Government Remit Letter.

Our Values are informed by the five ways of working: Long term, Prevention, Integration, Collaboration, Involvement.

The Operational Plan is published on our website. Progress was monitored throughout the year through quarterly progress reports presented to Council. We also met quarterly with officials of the Welsh Government.

We successfully delivered against 8 of the 9 key programme areas and 80% of our tasks. At the end of the year:

• 20 out of 25 tasks had been successfully completed

• 5 tasks were progressed

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Arts Connection, Mold Hospital

The current financial crisis and the rapidly escalating costs of living we are all facing, has dominated this year. We are acutely aware of the significant impact of this on the Sector, particularly as it is still in recovery mode from the pandemic.

That said, our rescheduled Investment Review was largely welcomed by the Sector with feedback from the public consultation and workshop sessions signalling that most participants agreed that now was the time for change and movement towards a fairer, more responsible, anti-racist, anti-ableist sector, and supported an Investment Review that would help deliver this.

Our strategy going forward, led initially by our Investment Review and the introduction of our 6 new principles and application of 5 balancing factors will consider and take steps to provide immediate support and continued development for the Sector and increased opportunities for the people of Wales to enjoy and experience the arts, now and over the longer term.

Similarly, 2022/23 was a year in which we faced our own physical resource challenges. We saw interim arrangements in place for 6 months for the posts of both Chief Executive and Chair until such time that permanent appointments were made.

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Developing and launching our Investment Review

• Following extensive public consultation on our initial proposals, the outcomes of which were considered and approved at a specifically convened Council meeting in November 2022, we published our full Investment Review Guidance in December 2022 alongside our response to the feedback received through the consultation exercise.

• This Investment Review introduced the new approach of multiyear funding options for organisations.

• Applications, which opened on 9 January 2023 and closed on 31 March 2023, asked organisations to respond with proposals that aligned with the progression of our 6 principles, but that were relevant to their own circumstances. Applications could be submitted in a number of ways, whether completing a template available on our online portal, or responding to the questions via video or audio uploads. This was to encourage greater access to the opportunity, particularly from groups and communities we felt were currently under-represented in our work. 141 completed applications were received. Following a robust assessment process Council will announce its initial decisions in September 2023.

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Supporting the Sector in its recovery from the pandemic and seeking ways to offer increased development opportunities to organisations, creative individuals and freelancers, and audiences and participants

Whilst we did progress many aspects under this specific programme of work, the escalating cost of living crisis prevented us from fully achieving some of our published actions.

• We held a series of discussions, including with the Sector, Welsh Government departments, Local Authorities, other UK Arts Councils and other partners, exploring ways in which we could respond to and support the Sector through this current crisis, and in the wake of the impact of the recent pandemic. Emerging from these discussions are a number of initiatives that will be developed more fully in 2023/24. These include development of a Memorandum of Understanding with Creative Wales, focusing on skills development, and a partnership with the other UK Arts Councils and the Arts and Humanities Research Council to support artists and arts organisations working with immersive digital technologies over the next 3 years.

• We have worked on creating inclusive career opportunities within the arts, through partnerships including with Jerwood Arts, Arts and Business Cymru and The Arts Marketing Association. Through the latter we awarded 25 bursaries, prioritising people/organisations who are (or work with and support) culturally or ethnically diverse people, those from a low socio-economic background, Welsh speakers and/or Deaf, disabled and neurodivergent people.

• We are working with Welsh Government colleagues in support of the development of the new Culture Strategy.

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The Famous Five , Theatr Clwyd (Image: The Other Richard)

• Work on development of a new Capital Strategy will progress in 2023/24, meanwhile we are working closely with Welsh Government colleagues on the capital development of Theatr Clwyd and have secured an additional £2.5m in capital funds from Welsh Government to support other existing projects experiencing increasing costs.

• We developed and delivered a number of arts focused strategic projects including the launch of our partnership with PRS Foundation on Power Up! in Wales. This seeks to do groundwork to address the dual barriers facing black artists in Wales, racism and a lack of infrastructure, and is currently in delivery phase. We have also

signed a partnership agreement with PRS Foundation for Accelerator in Wales, a programme supporting artists around key development points in their career.

• Progress on the Welsh Government’s National Contemporary Art Gallery for Wales project has been impacted by a number of factors during the year, including insufficient resources, UK Government changes and the Spending Review. We have made progress in the development of its associated business cases and recruitment activity to appoint a Project Director and an Independent Chair of the Project Board. Further developments will progress in 2023/24.

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Developing an approach to arts and culture that actively promotes equality and widens our engagement with individuals and communities across Wales in deciding what counts as culture, where it happens and who makes and experiences it

• We launched the Creative Steps programme, providing targeted support for underrepresented individuals and organisations led by and/or working with underrepresented communities to promote business, organisational and career development.

• We continue with our support for the Hynt scheme to promote a consistent offer for disabled visitors and their personal assistants/ carers at venues throughout Wales and are working closely with other UK Arts Councils in the development of a similar UK-wide Access Card Scheme.

• We secured funding, in partnership with Amgueddfa Cymru, to deliver a 3-year project with artists and galleries to deliver on Welsh Government’s Anti-Racist Wales Action Plan and developed and delivered a new funding programme – Perspectives . Seven visual arts organisations were selected to support and work in partnership with seven Amgueddfa Cymru museums across Wales.

• We commissioned the Romani Cultural & Arts Company to produce a resource on widening engagement with the Gypsy, Roma, Traveller community, as audience members, participants and employees.

• We have supported over 400 community events through our Night Out initiative.

Iberians and Latin Americans in Wales performance, Glynn Vivian Art Gallery

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Progressing our Arts and Health programme and our Memorandum of Understanding and partnership with the NHS Confederation

• For NHS 75 , we collaborated with the NHS Confederation on music and film content to profile our work for the formal Senedd event on 5 July.

• Our Capacity Building Programme continues to develop. On the back of our seed funding, there is now a national network of 15 Arts & Health Coordinators embedded within the system with Velindre University NHS Trust also now part of the programme. 5 out of 7 Health Boards have now made these permanent and substantive NHS roles and we’re exploring how to strengthen these teams through our second phase of support.

• Our partnership with the Baring Foundation remains strong. We have been invited to apply for a second phase of 4 year funding for Arts & Minds from 2024-2028 and are consulting with Health Boards about the forward focus.

• We’re working with colleagues at Natural Resources Wales to include a new priority for Arts, Health & Nature within our National Lottery funding programmes.

• We’re continuing to strengthen our collaboration with Public Health Wales, participating on their Hapus Strategic Partnership Group.

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Dawns i Bawb and residents from Brynseiont Newydd Residential Home (Image: Brynseiont Newydd)

• Cultural Cwtsh (our online wellbeing resource for NHS and Social Care staff) continues to grow and we have commissioned an independent review to deepen our understanding of its use by the healthcare workforce.

• Wales’ partnership approach to Arts & Health was recognised in the February 2023 edition of the Lancet Public Health. In a scoping review of 172 relevant international policy documents (studying global progress on intersectoral approaches to realising the benefits of the arts for Public Health), the memorandum of understanding between the Arts Council of Wales and the Welsh NHS Confederation was “one of the most concrete commitments we found, both in terms of the intersectoral approach and the specific investment and action.”

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Providing opportunities for young people and children to engage in the arts, including placing the arts and creativity at the heart of the school curriculum through the Creative Learning programme

• We developed a new opportunity for schools completing their Lead Creative Schools intervention, supporting them in exploring approaches they are taking to embed and sustain creative learning and how this work links to Curriculum for Wales.

• Cynefin continues as schools work alongside their creative professionals to explore the ethnic diversity in Wales and the contributions this makes to society and culture. Since its launch in 2021, 85 schools, over 2, 500 learners and more than 70 creative practitioners have been directly involved.

• Our successful Go and See fund continues to be very popular among our schools. A total of 298 grants have been awarded since the scheme reopened.

• Our new initiative Creative learning in the early years was launched at the beginning of December 2022 and is beginning its delivery phase. A total of 13 settings are taking part with 13 new creative agents recruited and creative practitioners. We are working in partnership with the Paul Hamlyn Foundation on the evaluation and a separate piece of capturing the learning is being developed in partnership with Nesta.

• Our Creative Leadership programme is also underway with a total of 29 senior leaders from a variety of schools across the whole of Wales taking part.

• We appointed a Portfolio Manager with responsibility for arts and young people to develop programmes and projects including a young people’s network.

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Creative Learning in the Early Years, First Steps Camau Cyntaf Llanhari

• We have accepted the recommendations in the Youth Voice report and these are the basis for our thinking in the development of programmes and projects. We have also agreed the principle of all work being youth led.

• We are researching current and recent work, supported through Welsh Government and Lottery funding, around anti-poverty, and those most marginalised and least represented. We are also part of a National Lottery forum around children and young people, connecting across the good causes and the nations.

• Strategic funding for Criw Celf 22-23 opened to existing consortia, aiming to build on current experience to deliver this creative talent development programme for young people in the visual arts. It focuses on activities that deliver on our priorities of Equalities, Diversity and Welsh Language, and addresses barriers to access for young people, in particular in terms of recruitment of participants and artists.

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Progressing our commitment to promote the use of the Welsh Language in the arts

Vivian Rhule

• We appointed a Welsh language coordinator to create a new ‘Working Welsh for the arts’ service in partnership with the National Centre for Learning Welsh (NCLW). A suite of offers for staff, freelancers and arts organisations was created and shared. The launch of the service was met with an enthusiastic response. 175 learners from the sector signed up and we have ongoing requests to join.

• The Welsh Art Consortium continues to meet regularly. Its work this year included designing and launching a new National Lottery funding programme, Llais y Lle, targeting individuals to develop creative use and ownership of the Welsh language. A residential event in January 2023 led

to new working developments between the Creative Learning through the Arts Programme and the Welsh Government’s Cymraeg 2050 programme.

• We met with arts organisations to offer advice on their Welsh language developments and held 2 design and thinking workshops with the Welsh Government on ‘Leading in a bilingual country’.

• We began work on a new Welsh Language Action Plan as part of the development of our new Strategy. This will be completed in 2023/24.

• We completed our Welsh language development pathways report.

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Engaging in an extensive programme of international activity

• We continued to investment in “Bro a byd – local and global wellbeing goals”, developing a new approach to diversity and engaging with diaspora communities in Wales.

• We held ongoing discussions with the other UK Arts Councils on new approaches to sustainable international touring and hosted an event for sector representatives at Bangor University led by Creative Carbon Scotland.

• Our International Opportunities Fund continued with significantly increased demand, reflecting the need within the sector for international engagement in person and digitally.

• Our Wales Arts International (WAI) team continues to lead delivery of Arts Infopoint UK.

• Wales Venice 10 was launched in partnership with Disability Arts Cymru and Artes Mundi. We received 80 applications from a diverse cohort of individual artists, curators, producers and writers working in Wales and awarded 10 Fellowships. Most Fellows undertook research visits to the Venice Biennale where they met international curators, artists and writers to support capacity building and skills development. As part of the evaluation of the programme, the Fellows met at Tŷ Pawb in March 2023 to share their experiences.

• UK France ‘Magnetic’: Artist in Residence took place at Aberystwyth Arts Centre. Wales is partnering with Bretagne to build engagement into Year of Wales in France 2023 and longer term relationships for Wales’ visual arts.

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• We undertook a research visit to Canada in partnership with Welsh Government Canada and the Well-being of Future Generations Commissioner. This included partnership development with Canada Council for the Arts and CALQ (Conseil des Arts et des Lettres du Quebec), and meetings with indigenous arts and language leaders, well-being economic and cultural fora, participation in panels at Breakout West and support for Focus Wales’ programme. We will pilot a Wales Quebec Music residency exchange

• We showcased 3 Welsh musicians, copresenting with Brittany, at Showcase Scotland and Celtic Connections. This resulted in a number of high profile

bookings for the artists and an agreement on a Wales night at a Celtic stage at Cambridge Folk Festival.

• With funding from the Welsh Government we led a collaborative international digital and in person cultural programme for Team Wales for the FIFA Men’s World Cup, reaching 864 million people globally. Legacy work with Unify’s 64 exhibition is ongoing.

• In year one of the United Nations Decade of Indigenous Languages, we developed our Gwrando fund for artists in Wales to listen to indigenous languages and practice across the world.

Showcase Scotland artists, Left to right: Cerys Hafana; VRï; Gwilym Bowen Rhys

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Supporting the Welsh Government’s Net Carbon 0 ten year action plan for all public sector Bodies in Wales to meet their Carbon 0 targets by 2030 through our Arts and Climate Justice programme

Future Wales Fellowship

• As part of our Creative Nature Memorandum of Understanding with Natural Resources Wales, we established the Creative Nature Steering Group, including representatives from Natural Resource Wales, to scrutinise delivery of the Creative Nature programme and inform the strategy for future collaborative work.

• Through this partnership the Future Wales Fellowship recipients developed their individual projects that use art to demonstrate the impact climate change has on everyday life. The Fellows were given support and opportunities to develop their own artistic work, but also to challenge the way people think about climate change to encourage people to live a more sustainable lifestyle. We commissioned Storyworks to creatively document the work of the Fellows.

• We began development of an action plan for Climate Justice and the Arts, commissioning the Centre for Alternative Technology to facilitate the co-design process alongside our staff and Arts Associates. Built within the framework of the Well-being of Future Generations Act and the Sustainable Development principle, the plan will align with our new Strategy and be completed in 2023/24. Meanwhile, we continuing to engage with the Cross-Distributor Environmental Responsibility Group to ensure a joined up approach with key stakeholders such as Arts Council England, Julie’s Bicycle and Creative Carbon Scotland and have joined Sustainable Development Coordinators Cymru +, a network of officers responsible for sustainable development in Local Authorities.

Arts Council of Wales 35

Examining our own ways of working to ensure we deepen and widen our engagement into society and develop our own practices and partnerships to maximise efficiencies and safeguard our resources to develop and support the arts in Wales

• We developed our new Strategy, built around the Well-being of Future Generations Act’s 7 goals and 5 ways of working, and set our framework and corporate objectives for the next 10-year period. The Strategic Framework was informed by the feedback received from the Investment Review public consultation and is underpinned by the same 6 principles. It was approved by Council in March 2023. Work is now underway to progress this through to Welsh Government approval prior to its launch later in 2023/24.

• We increased our partnership working, and formed new partnerships. In addition to those already referenced in the above programme areas, our partnerships with BBC Cymru Wales continued to progress Horizons/ Gorwelion, including a Launchpad funding round. A diverse range of artists applied, covering a broad range of genres, with good representation from global majority artists, Welsh language and disabled artists. Gŵyl Cymru was successfully delivered in partnership with the Football Association of Wales, S4C and other cultural bodies. There is an appetite to continue this partnership into the future, particularly in promoting arts and sports collaboration for widening engagement.

Annual Report 2022-23 | 36

BBC National Orchestra of Wales (Image: Yusef Bastawy)

• We continue to develop new ways to access our information. All published documents are available in Welsh, English, British Sign Language and Easy Read and Large print formats. Five videos have been produced highlighting National Lottery grants available from the Council. They are released as the particular funds are opened for application and have proved popular in explaining the nature of each fund, as well as providing examples of successful past projects.

• We are examining our own office spaces to further support new hybrid working models . Our Carmarthen office was

• successfully relocated to a dedicated workspace in Yr Egin on the University of Wales Trinity Saint David campus.

• We have developed a Business Continuity Fund to further support the sector with cost of living considerations. This will be launched in 2023/24.

Arts Council of Wales 37

Corporate Governance Our Trustees

Council Members who served since 1 April 2022 were:

since 1 April	2022 were:
Attendance of	Trustees at meetings during 2022/23	Council	Audit & Risk Assurance Committee	Capital Committee	H R & Remuneration Committee	Strategic Equality Committee	Welsh Language Committee	Future Generations Committee
			Number of meetings held
		7	6	5	3	2	3	2
	Maggie Russell Chair from 1 April 2023	N/A
	Phil George Chair from 1 April 2016 to 31 March 2023	3/3
	Kate Eden from 1 April 2017 Interim Chair from 1 October 2022 to 31 March 2023 Vice Chair from 1 April 2021 Chair of Audit & Risk Assurance Committee Member of H R & Remuneration Committee	5	2/2		1/1
	Lhosa Daly from 1 April 2019 Chair of Future Generations Committee to 30 September 2022 Interim Chair of Audit & Risk Assurance Committee from 1 October 2022 to 31 March 2023	5	4/4					2
	Ceri Ll Davies from 1 April 2021 Member of Audit & Risk Assurance Committee from 1 July 2022 Member of Strategic EqualityCommittee	6	4/4			2

Annual Report 2022-23 | 38

Trustees at meetings during 2022/23	Council	Audit & Risk Assurance Committee	Capital Committee	H R & Remuneration Committee	Strategic Equality Committee	Welsh Language Committee	Future Generations Committee
	Number of meetings held
	7	6	5	3	2	3	2
Devinda De Silva from 1 April 2019 Interim Vice Chair from 1 October 2022 to 31 March 2023 Chair of Strategic Equality Committee	6				2
Andy Eagle from 1 November 2016 to 30 November 2022 Chair of Capital Committee to 30 November 2022	2/4		1/3
Ruth Fabby M B E from 1 April 2021 Member of Strategic Equality Committee	7				1
Professor Tudur Hallam from 1 April 2019 Chair of Welsh Language Committee	6					3
Gwennan Mair Jones from 1 April 2019 Member of Welsh Language Committee from 1 March 2023 Chair of Future Generations Committee from 1 October 2022	6					0/1	2
Tafsila Khan from 1 April 2021 Member Capital Committee	5		3

Attendance of Trustees at meetings during 2022/23

Arts Council of Wales 39

Trustees at meetings during 2022/23	Council	Audit & Risk Assurance Committee	Capital Committee	H R & Remuneration Committee	Strategic Equality Committee	Welsh Language Committee	Future Generations Committee
	Number of meetings held
	7	6	5	3	2	3	2
Alison Mears Esswood from 1 April 2019 Member (Chair to 30 September 2022) of H R & Remuneration Committee	7			3
Keith Murrell from 1 April 2021 Member of H R & Remuneration Committee	7			3
Victoria Provis from 1 April 2019 Member (Chair from 1 December 2022) of Capital Committee	7		5
Dafydd Rhys from 1 April 2017 to 22 August 2022 Member of Audit & Risk Assurance Committee to 22 August 2022	3/3	2/2
Elen ap Robert from 1 April 2021 Chair of H R & Remuneration Committee from 1 October 2022 Member of Welsh Language Committee	7			2/2		2
Prue Thimbleby from 1 April 2021 Member of Future Generations Committee	7						2
Dr Sarah Younan from 1 April 2019 Member of Audit & Risk Assurance Committee	4

Attendance of Trustees at meetings during 2022/23

Annual Report 2022-23 | 40

Attendance of independent Committee members at meetings during 2022/23	Audit & Risk Assurance Committee	Capital Committee	H R & Remuneration Committee	Strategic Equality Committee	Welsh Language Committee	Future Generations Committee
	Number of meetings held
	6	5	3	2	3	2
Andrew Butler	6
Elid Morris	5
Arwel Thomas	5
Ruth Cayford		5
Roland Evans (to 1 July 2022)		0/2
Michael Gwyther-Jones		4
Jayne Woods		5
Steve Burton (from 25 January 2023)			1/1
Wendy Reed (from 25 January 2023)			1/1
Guto Gwilym-Taylor				1
Ele Hicks (to 31 December 2022)				2
Lara Ratnaraja				2
Shereen Williams				1

Arts Council of Wales 41

In accordance with the Council’s Code of Best Practice, members of Council and independent Committee members make declarations of interest in respect of directorships, memberships of boards of management (or equivalent) or employment which may conflict with their Arts Council of Wales’ responsibilities. The register of interests of Members of Council and of independent Committee Members is available for public inspection, by appointment, at each of the Council’s offices during normal working hours.

All financial transactions between members and the Council, other than the remuneration of the Chair, are disclosed in the financial statements under Related party transactions .

Personal data related incidents

The Council has controls and policies in place to ensure data integrity. I C T systems ensure that the physical security of data is tightly controlled. There were two minor personal data breaches during the year. Each was appropriately assessed and none were categorised as reportable to the Information Commissioner.

Our Chief Executive and Accounting Officer

Dafydd Rhys

Our Offices

Mid and West Wales: North Wales: South Wales and Yr Egin Princes Park II national office: Heol y Coleg Princes Drive Bute Place Carmarthen Colwyn Bay Cardiff S A31 3EQ L L29 8P L C F10 5A L

Auditor – General Activities Auditor General for Wales Audit Wales 1 Capital Quarter London Tyndall Street S W1W 9S P Cardiff C F10 4BZ Internal auditors

Auditor – Lottery Distribution Comptroller and Auditor General 157-197 Buckingham Palace Road London S W1W 9S P

T I A A Ltd Artillery House Fort Fareham Fareham P O14 1A H

Solicitors Bankers Geldards L L P Santander U K p.l.c. 4 Capital Quarter 9 Queen Street Tyndall Street Cardiff Cardiff C F10 2U D C F10 4BZ

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Governance Statement

This Governance Statement is the personal responsibility of me, Dafydd Rhys, the Arts Council of Wales’ Accounting Officer and Chief Executive. It sets out the governance arrangements of the Arts Council of Wales.

It also describes how I’ve discharged my responsibilities for ensuring that we conduct our business, in respect of both exchequer and lottery activity, in accordance with the law. This includes providing the necessary assurances that we’re adhering to proper standards and establishing the necessary safeguards to protect the use of public money.

I explain how these funds are properly accounted for, and used economically, efficiently and effectively to support the delivery of our plans and priorities.

Arts Council of Wales 43

The legislative framework

We operate within a carefully prescribed and regulated legal environment. The Arts Council of Wales is accountable to the Welsh Government’s Deputy Minister for Arts, Sport and Tourism. Our work is also subject to the scrutiny of Committees of the Welsh Parliament. We work within a framework that sets out the terms and conditions under which Welsh Ministers provide our grant-in-aid funding, and how we’re able to use this funding. We manage our funds with probity and in the public interest and, along with other public bodies in Wales, adhere to the principles contained in Managing Welsh Public Money.

As a distributor of Lottery funds under the National Lottery etc. Act 1993 (as amended), we’re accountable to the U K’s Secretary of State for Culture, Media & Sport. Our financial directions are issued by the Secretary of State, and our policy directions by the Welsh Ministers. These set out how we must operate in respect of Lottery distribution activities. Revised Lottery financial directions came into effect on 1 April 2022.

We’re required to account for Lottery distribution activity separately from the rest of our work, and we have appropriate arrangements in place to ensure that we produce two sets of published accounts. Our Lottery Distribution accounts are audited under contract to National Audit Office by Audit Wales. Audit Wales also audits our General Activities account.

Arts Connection

Annual Report 2022-23 | 44

As a charity we have to ensure we comply with the requirements of the Charities Acts 1960, 2006, 2011 and 2016. As such, we follow guidance issued by the Charity Commission, acting solely to further our chartered and charitable objectives.

The activities we carry out in connection with our Collectorplan scheme are subject to the Consumer Credit Act and guidance issued by the Financial Conduct Authority.

We’ve designed our systems, processes and controls to take account of these various responsibilities. Within these frameworks we make independent decisions regarding the strategic direction of the organisation, grant funding, and other financial decisions.

Risk assessment and management is fundamental in our operations and this Governance Statement should be read in conjunction with the Principal risks and uncertainties section of the Performance Report.

Should the need arise, the Public Services Ombudsman for Wales, the Parliamentary Commissioner for Administration, the Charity Commission, the Financial Conduct Authority, the Information Commissioner, the National Audit Office, and Audit Wales are all able to investigate the Council’s affairs.

Hanan Issa at Hay Festival, Literature Wales (Image: Celf Calon)

Arts Council of Wales 45

Our Governance arrangements

We’re governed by a Board of Trustees – Council – consisting of a Chair and up to seventeen other independent members, one of whom is appointed as Vice Chair. Our Trustees are appointed by the Deputy Minister for Arts, Sport and Tourism through an open selection process. Appointments are usually for a three-year term, renewable for a maximum of two additional terms.

Each Trustee brings specific expertise and knowledge to the oversight and development of our activities. From 1 October 2022 to 31 March 2023, our Vice Chair stepped up to cover the ill health of the Chair. At the year-end our Council comprised of the Chair plus fourteen members.

The Chair of Council is a remunerated position, at a rate set annually by the Welsh Government. All other Trustees provide their time and expertise on a voluntary basis. However, they’re reimbursed for out-ofpocket expenses incurred on Council business.

We promote values of good governance

We observe Lord Nolan’s seven Principles for Public Life and strive to ensure that all of our employees, Trustees, Committee members and Arts Associates understand, apply and adhere to these Principles.

To support this, we have a Code of Best Practice which helps to ensure the roles and responsibilities of members and officers are clearly defined. It also contains the expected standards of propriety that members and staff should adhere to. The Code is reviewed and updated at least every two years.

In accordance with the Code, each member of Council, of each Committee, and all Arts Associates and staff are required to complete an annual Declaration of Interest statement, and to ensure that changes in circumstances are notified promptly. They make declarations of interest in respect of directorships, memberships of boards of management (or equivalent) or employment which may conflict with their Arts Council of Wales’ responsibilities. The register of interests is available for public inspection, by appointment, at each of the Council’s offices during normal working hours. All financial transactions between members and the Arts Council are disclosed in the notes to the financial statements under Related party transactions .

Annual Report 2022-23 | 46

Mainly Village Halls , Sinfonia Cymru (Image © Salome Francis)

Council, the Audit & Risk Assurance Committee and H R & Remuneration Committee all carried out a self-assessment review of their performance during the year. The findings of these evaluations were positive. Areas identified for improvement are captured in action plans. In particular, Council’s own annual self-assessment review concluded that the vast majority of its indicators of effectiveness were being met.

Council was content with progress made during the year to address areas identified in last year’s review. Council recognised the importance of ensuring an appropriate mix and diversity of arts expertise and skills on the Trustee Board as new members are appointed.

The Corporate governance in central government departments: code of good practice , issued by H M Treasury, does not directly apply to the Arts Council of Wales. However, as Accounting Officer, I’m satisfied that the arrangements we have in place reflect good practice. I also believe that the Arts Council has complied with the principles of accountability, effectiveness and leadership expressed within the Treasury’s Code, in so far as they are relevant to Welsh Government Sponsored Bodies and Lottery Distributors. Council endorses this view.

Whistleblowing

The Council has an established whistleblowing policy which is brought to the attention of staff at induction and available within the Council’s intranet. The policy is reviewed at least every three years. There were no reported incidents during the year.

Arts Council of Wales 47

Taking informed decisions

Decisions taken by our Council and Committees are informed by advice provided by Arts Council staff. Papers and reports produced by officers are expected to show clearly all relevant information needed to enable informed decisions to be taken. All key papers highlight: financial, H R and the Well-being of Future Generations Act’s 5 Ways of Working; risks; and an assurance statement.

Papers are circulated in advance of each Council and Committee meeting; tabled items and verbal reports are only accepted in exceptional circumstances. Council was content during the year with the timeliness and quality of information provided for its use. In the rare instances where the information provided does not meet the required standards, the paper is rejected and a replacement commissioned. There were no instances of this happening in 2022/23.

Where appropriate and relevant, advice from officers is supplemented with specialist, expert advice and legal opinions. Council will continue to ensure that it has sufficient time and information to properly debate policy and consider the future direction of the organisation. Key policy proposals are put out to public consultation. Responses and feedback further inform discussions at Council before polices are finalised.

We provide funding to third parties

One of the Council’s most important duties is the distribution of funding to develop and support the arts in Wales. We’re a major distributor of funding from the Welsh Government, the National Lottery and other sources.

We’ve developed robust and accountable systems and procedures to support this key activity. Grant-making and monitoring processes are reviewed annually by our internal auditors. Audit Wales also examines our grant-making activities each year. All recommendations made by our internal and external auditors are monitored by our Audit & Risk Assurance Committee to ensure they’re implemented on a timely basis.

Annual Report 2022-23 | 48

Security of data

We hold large amounts of data and treat seriously our obligations under the Data Protection Act which incorporates the U K General Data Protection Regulation (U K G D P R). Our I C T systems and rules ensure that the security of data is tightly controlled. We regularly assess our security arrangements and have taken steps to make them more robust.

The high-level review over I T controls carried out by our external auditors and our programme of internal audit reviews carried out during the year revealed no serious issues. Similarly, the annual security review on behalf of Welsh Government highlighted no matters of serious concern in this area. There were two minor personal data breaches during the year. Each was appropriately assessed and none were categorised as reportable to the Information Commissioner.

Complaints

Complaints about our work are investigated according to our Complaints Policy. Sometimes our policy requires a complaint to be investigated by an Independent Complaints Reviewer. For reasons of openness and transparency, we publish all final reports from the Reviewer. No complaints were referred to the Independent Reviewer in 2022/23.

Ministerial directions

As a Welsh Government Sponsored Body we’re subject to nonstatutory instruments, containing appropriate Directions. No Directions were issued to us during the year by the Welsh Government. We received revised Lottery financial directions from the Secretary of State for Culture, Media and Sport which came into effect on 1 April 2022.

Arts Council of Wales 49

Our Governance Structure

To help support its work, Council has appointed six committees to provide specialist advice. These are: Audit & Risk Assurance Committee; Capital Committee; H R & Remuneration Committee; Strategic Equality Committee; Welsh Language Committee and Future Generations Committee. There is also an advisory committee for Wales’ presence at the international Biennale of Art in Venice and a Health & Safety Advisory Group.

Annual Report 2022-23 | 50

The Botanist, Myfanwy MacLeod, Chapter, (Image: Kendra Eden)

Each Committee includes Council members, one of whom acts as Chair, and has provision for independent committee members appointed through an open selection process for their specialist skills and experience. The minutes of each Committee meeting are provided to Council for discussion and to note. Terms of reference for each committee, which are reviewed annually, can be found on our website.

All new members of Council and of each Committee undergo an induction process appropriate to their role and are encouraged to continue their development during their period of appointment.

During the year we continued to draw on the services and experience of our cohort of Arts Associates. The Associates support executive staff. Their specialist knowledge and lived experience contribute to policy development, specific programmes of work, the assessment of grant applications, and advice to officers.

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Council

Council is responsible for the strategic direction and management of our organisation. It is also responsible for ensuring, through the Chief Executive, that we operate within the various accountabilities required of us.

Council members are responsible for key decisions on corporate policy: the formulation of our Strategic and Operational Plans, and any major alterations to the terms and conditions of service for staff.

Council sets the annual budget, decides on the annual allocation of grants to organisations in the Arts Portfolio Wales, and approves all grants over £50,000 or, in the case of Lottery funded capital projects, over £250,000. Decisions below these thresholds are delegated to authorised staff and to the Capital Committee.

Members assist with Council Committees. They may also attend arts events across Wales as representatives of Council.

Swansea Open, Glynn Vivan Art Gallery, (Image: Polly Thomas)

Annual Report 2022-23 | 52

Council activities undertaken during 2022/23 included:

1. as part of its ongoing scrutiny of Governance, preparing and monitoring the Operational Plan for the year, and the annual review and approval of the Terms of Reference for each of its Committees. Council also received and noted the Committees’ year-end reports to inform its Governance Statement as part of this Annual Report and approved the Annual Financial Statements 2021/22 and Budget allocations for 2022/23

2. receiving regular updates on our Corporate Assurance Framework, Risk Register, and the performance of our Arts Portfolio Wales organisations

3. approving our approach and published guidance for our Investment Review

4. approving our new 10 year Strategy for consideration by Welsh Government

5. receiving updates and presentations on key programmes of work including Arts and Health, development of our new Strategy and Investment Review

6. receiving presentation and providing feedback to Welsh Government in the development of its Culture Strategy

Council meetings are normally held approximately every 6 weeks. Copies of agendas and minutes of our Council meetings can be found on our website.

Council met 7 times during 2022/23 to discharge its responsibilities. Members in total attended on 92 out of a possible 108 occasions.

Arts Council of Wales 53

Our governance response to working arrangements during 2022/23

Throughout 2022/23 we operated through a hybrid working model. For environmental, staff welfare and efficiency considerations staff were encouraged to return to the office for a limited number of days each week, and work remotely for the remainder. This arrangement would also support increased teamworking and collaboration opportunities as well as continue to offer staff the efficiencies of remote working arrangements. We opened our Colwyn Bay and Cardiff offices and relocated our Carmarthen office to Yr Egin for efficiency considerations. This provided the space for staff who benefited by working from the office as part of their role or for staff who needed office space for wellbeing reasons.

Most of our internal processes are electronic and have continued to work well remotely. Once again, our internal audit plan was conducted remotely with no significant impact on performance or outcomes.

We continued to use a number of virtual meeting rooms to host all our Committee and Council meetings for most of the year. However, Council did offer hybrid meetings from February 2023, offering members and attending staff the option to meet in person at the Cardiff office or join the meeting remotely. Duties of each Committee have remained the same and Council’s ability to make decisions has not been compromised during the year.

Following the sudden illness of our Chair in September 2022, with Welsh Government approval, Council’s Vice Chair immediately assumed the full duties as Interim Chair, an arrangement that lasted for the remainder of the year.

We’ve updated our Corporate Assurance Framework and Risk Register accordingly in response to developments throughout the year and reviewed our internal risk management and anti-fraud procedures.

We continued our routine monitoring and reporting arrangements with Welsh Government colleagues and our Interim Chair was involved in Welsh Government’s recruitment exercise for two new Council members. The recruitment of a new Chair was the sole responsibility of Welsh Government.

It is our view that effective governance has not been compromised through our working arrangements or developments throughout the course of the year.

Annual Report 2022-23 | 54

Audit & Risk Assurance Committee

As stewards of public funds we must operate in an efficient and accountable manner. Our priorities and funding decisions are agreed by Council in accordance with the policies and procedures that apply to our use of public funds. The Audit & Risk Assurance Committee’s role is to ensure that we deliver on these commitments, doing so in ways that are transparent, accountable and resilient.

An extensive programme of internal audit assists us in this work, assessing the quality of our delivery against the standards that we have set.

In September 2022, as a result of the sudden illness of Phil George, Chair of Council, Kate Eden, Vice Chair of Council and Chair of the Audit & Risk Assurance Committee (ARAC), became Interim Chair of Council and continued in the role for the remainder of the financial year. Council member Lhosa Daly was appointed Interim Chair of ARAC for that period. In these circumstances, Welsh Government approved a year’s extension to Kate Eden’s term of office which now runs to March 2024. The extension provides essential continuity and stability following recent appointments to the roles of Chief Executive and Chair of Council.

There were further changes to Council and ARAC membership during the year. Dafydd Rhys resigned in August 2022 to take up his new appointment as our Chief Executive and Sarah Younan took a period of sabbatical leave. In response, Council member Ceri Ll Davies joined ARAC. This allowed the Committee to continue its work without interruption or compromise.

Arts Council of Wales 55

Committee activities undertaken during 2022/23 included:

1. regular scrutiny of our Corporate Assurance Framework and Corporate Risk Register and consideration and re-approval of the Council’s risk management arrangements. This has clarified the way in which we’d respond to potential vulnerabilities in our operations

2. scrutinising the organisational and financial health of Council’s Arts Portfolio Wales organisations through enhanced reporting arrangements to assess the scale of impact of the Covid-19 pandemic and cost of living crisis, supported by a presentation to the Committee on the Council’s own Cost of Living Crisis Survey

3. reporting to Council on the outcome of internal audit reviews undertaken by our newly appointed internal audit service providers, TIAA, and monitoring progress in the implementation of the auditor’s recommendations for action

4. understanding key aspects of Council’s operations, such as our response to the National Centre for Cyber Security’s Toolkit for Boards, and Audit Wales’ Cyber Security Report, progress of our Investment Review, and scrutiny of our Annual Report and Financial Statements

Future Directions by Gavin Porter , Music Theatre Wales,

Annual Report 2022-23 | 56

“The Committee provides robust oversight of our

governance arrangements. It scrutinises the adequacy and effectiveness of our systems of internal control, and tests our risk management arrangements. Our role is to support the organisation to be as efficient as it can, ensuring that Council’s delivery of activity is effective and represents value for money.”

Kate Eden

Chair, Audit & Risk Assurance Committee

The Committee’s normal schedule of meetings was

maintained throughout the year. One additional meeting was convened to consider the circumstances of one Arts Portfolio Wales organisation, providing advice on this to Council, and to consider the proposals for the Investment Review and an associated internal audit report, prior to their presentation to Council for approval.

The Committee met 6 times during 2022/23 to discharge its responsibilities. Members in total attended on 28 out of a possible 30 occasions. Meetings were held virtually using online functionality.

Audit outcomes

The findings of the Audit Wales annual audits are reported to our Audit & Risk Assurance Committee which considers the findings and monitors them to ensure appropriate action is taken on a timely basis. The annual programme for internal audit activity is approved by the Committee.

TIAA, our internal auditor, gave the following opinion in their annual report:

“TIAA is satisfied that, for the areas reviewed during the year, Arts Council of Wales has reasonable and effecitve risk management, control and governance processes in place.”

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Capital Committee

For almost three decades Council has been investing funds from the National Lottery into capital projects. Across Wales we’re helping organisations to enhance and extend their activities by funding the creation of exemplary buildings, transforming the places in Wales where people enjoy and take part in the arts.

We continue to oversee several projects that have been in development for a number of years as well as considering new applications for targeted investment to improve access, sustainable energy initiatives and minor adaptations.

The Committee continues to scrutinise ongoing projects and accept applications for those earlier entries into the programme that are progressing to later stages of the Royal Institute of British Architects (RIBA) Plan of Work. These later-stage projects require more intense monitoring and assessment despite being fewer in number. For some organisations this can include a significant amount of support and advice from Arts Council of Wales’ staff, particularly for smaller organisations undertaking their first capital project.

Projects currently on site include: Pontypridd YMCA and Cwmni’r Fran Wen in Bangor. Projects which were completed in the year include Borough Theatre, Abergavenny and Theatre Brycheiniog, Brecon.

Projects in development include: Oriel Myrddin Gallery, Carmarthen; Theatr Bara Caws, Caernarfon; Pontardawe Arts Centre; and Ucheldre Centre, Holyhead.

This year, the Committee has also provided small capital grants to a range of organisations to make adaptations to their buildings. These have included: Riverfront, Newport; Chapter, Cardiff; Neuadd Ogwen, Bethesda; Plaza, Port Talbot; and Albert Hall, Llandrindod Wells.

Annual Report 2022-23 | 58

“Throughout the year the Committee, which includes members of Council and non-executive independent experts, helped ensure a range of capital investments in the arts in Wales were successfully progressed or completed. Many projects have experienced challenges in relation to inflationary increases and the rising cost of living. Therefore, alongside our National Lottery funding, we were pleased to distribute additional capital support from Welsh Government to a number of our existing projects.”

Victoria Provis

Chair, Capital Committee

Committee activities undertaken during 2022/23 included:

1. funding support and assistance to the largest capital investment in the arts in Wales, the ambitious refurbishment of Theatr Clwyd in Mold. The Committee is monitoring our own National Lottery support and Welsh Government support for the project, which totals £28.5m. It has been excellent during the year to see this project progress onto site with the works now well underway

2. ensuring all capital projects in which Council invests meet Building Research Establishment Environmental Assessment Method (BREEAM) sustainability standards

As part of its ongoing responsibilities, the Committee has also been charged with monitoring the capital elements of the National Contemporary Art Gallery for Wales programme. The first projects are likely to be awarded funding during 2023/24 but this is likely to be a significant element of the Committee’s work over the coming three years.

The Committee met 5 times during 2022/23 to discharge its responsibilities. This included on site visits to several projects: Theatr Clwyd, Mold; Nyth (Cwmni’r Fran Wen), Bangor; Pontardawe Arts Centre; and Borough Theatre, Abergavenny. Members in total attended on 23 out of a possible 30 occasions.

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H R & Remuneration Committee

The HR & Remuneration Committee supports Council in discharging its responsibilities for the oversight of HR activities.

This includes:

• setting and monitoring the Chief Executive’s annual performance targets

• recommending to Council the annual remuneration of the Chief Executive

• overall recruitment, retention and management of staff

• monitoring pay and conditions of service

• monitoring the wellbeing of the people who work for us

• supporting the governance needs of the organisation

• ensuring HR activity contributes effectively to the delivery of the Council’s strategic goals and business needs

Peak Peers, Workshop with Jon Moses (Image courtesy of Peak Cymru)

Annual Report 2022-23 | 60

“The ongoing effects of the pandemic have impacted the work of the committee and the HR team and this year has really been characterised by a period of responding to an ever-changing environment, rather than looking strategically at HR across the organisation. Staff wellbeing has been a key focus.”

Elen ap Robert

Chair, H R & Remuneration Committee

Specific Committee activities undertaken during 2022/23 included:

1. publication of a Pay Policy Statement. This includes a detailed breakdown of the make up of our staff. It also addresses Gender Equality and Equal Pay reporting

2. managing the recruitment of a new Chief Executive

3. reviewing HR management information and relevant internal audit reports to monitor the performance, health and wellbeing of staff

4. setting levels of remuneration and monitoring the performance of the Chief Executive

5. promoting staff learning and development to deliver corporate objectives through health and safety and general compliance courses

The Committee met 3 times during 2022/23 to discharge its responsibilities. Members in total attended on 11 out of a possible 11 occasions.

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Health & Safety

“The Health and Safety Group has met regularly throughout the year to ensure robust processes are in place to keep our workforce safe.”

Rebecca Nelson

Chair, Health and Safety Advisory Group

Group activities undertaken during 2022/23 included:

1. reviewing arrangements at our offices including the relocation of our Carmarthen staff to Yr Egin

2. meeting with the Suzie Lamplugh Trust to discuss the development of the Lone Worker policy to consider international travel and hybrid-working

3. reviewing risk assessments currently in place

4. managing incident reporting and monitoring

5. reviewing our Maternity Guidance and Policy

6. receiving a ‘Substantial Assurance’ report for Health and Safety from our internal auditors

The Group met 5 times during 2022/23 to discharge its responsibilities.

Annual Report 2022-23 | 62

Overall assessment of governance and internal control

In my opinion, the Arts Council of Wales’ systems of governance and internal control are sufficient to enable me to discharge my responsibilities as Accounting Officer.

Dafydd Rhys Accounting Officer 20 October 2023

Endorsed on behalf of Council:

Maggie Russell Chair 20 October 2023

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Equalities

In 2022/23 the arts in Wales continued to take steps towards recovery following the significant challenges faced as a result of Covid-19 and, as ever, for our most marginalised communities the recovery has been slower and more challenging. The increasing impact of the cost of living crisis has made these challenges even greater. That said, during this last year we have seen progress with our equalities strategy and through our Widening Engagement action plan that will improve and increase opportunities for artists, arts organisations and communities to engage with the arts more often and in ways that are important and relevant to them and their lives.

A major focus for our work was taking the first steps in turning our Widening Engagement plans into action. In partnership with Amgueddfa Cymru, we established a Task Force to monitor and oversee the delivery of the joint Action Plan with a particular focus on the actions related to culturally and ethnically diverse communities. The Task Force received and reviewed progress reports and held a workshop looking at the development of an evaluation framework for the plan.

We made progress during the year on improving equality in our grant making processes, increasing membership of our pool of Arts Associates to 260 so that more people with lived experience are involved in the development of our policies, programmes and, importantly, our grant decision making.

We also made significant progress this year in making our grant application process more accessible for disabled applicants. A key new element being the introduction of video applications.

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“The Committee has continued to monitor and reflect on the work we’ve been doing to advance the equality agenda and to question and challenge our progress and our plans. In doing so I remain confident that we are truly on a path towards change.”

Devinda De Silva

Chair, Strategic Equality Committee

Our revised Creative Steps programme was launched and opened for applications in December 2022. The scheme includes an increased flexibility of approach, together with mentoring and enhanced support for organisations and individuals. Financial investment in the programme was increased, and Associates were recruited to provide support during the project development process, where required. Over the course of three funding rounds, grants were offered to 9 organisations and 10 individual artists. Interest in the scheme is growing and many enquiries are coming from individuals who have not previously engaged with the opportunities offered through our funding.

We commissioned a further piece of work to create best practice standards focused on accessibility levels for national museums and venues and standards for staff to improve the audience/visitor experience. These standards are being developed collaboratively with D/deaf and disabled people and the work is due to conclude early in 2023/24.

There has also been significant progress working with the UK Arts Councils on the development of a UK wide access card scheme, building on the success of the Hynt scheme in Wales. We were delighted to announce that following a selection process we appointed Andrew Miller to take on the role of Champion, to drive this work forward, on behalf of all the partners. All four UK nations are signed up to establishing a UK wide scheme that supports all disabled people.

Arts Council of Wales 65

Our Agent for Change published a video report on the first phase of his activity and Council committed to a further two years of the programme. As part of the Agent’s work, a series of internal “Candid Conversations” were set up, along with a series of training and development sessions for all our staff and Council members. These have included unconscious bias in relation to race, LGBTQ+ and Inclusion training, and training on neurodivergence.

A highlight of the year was our successful joint bid, with Amgueddfa Cymru, for funding from the Welsh Government’s Anti-racist Wales Action Plan programme. As a result, we have now established the Perspectives programme, which seeks to bring about a step change in how the visual arts and heritage sector reflects the cultural and ethnic diversity of our society. Towards the end of the year we launched a callout to galleries and selected 7 from 15 that applied who will now work in partnership with the 7 national museums to commission creative practitioners to co-create/commission exhibitions with artists and communities with lived experience.

Tonia, Dance Agent for Change, with company dancer Robbie Moorcroft (Image: © Ballet Cymru)

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Activities undertaken by the Strategic Equality Committee during 2022/23 included:

1. reviewing progress with our Strategic Equality Plan for 2020-24, evaluating the impact of the actions and identifying a new set of actions for the year ahead

2. reviewing progress with delivering our joint Widening Engagement Action Plan with Amgueddfa Cymru

3. continuing to monitor where our funding has reached. Data has once again shown an increase in the number of successful funding applications from disability-led organisations and those led by artists from culturally and ethnically diverse backgrounds

4. continuing to monitor the work of our Arts Portfolio Wales organisations in improving opportunities for people from protected characteristics engaging in the arts as decision makers, workers and participants

5. workshopping ideas around developing an approach to address the barriers faced by people and communities experiencing poverty and socio-economic disadvantage

The Committee met 2 times during 2022/23 to discharge its responsibilities. Members in total attended on 11 out of a possible 14 occasions.

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Welsh language

Our purpose, as outlined in our 1994 Royal Charter, is to develop the arts and make them more accessible to the public, working with others to achieve that purpose and operating through the Welsh and English languages. As a bilingual organisation, therefore, our commitment to the Welsh language is integral to our work and during the last year this commitment has been demonstrated on many levels. Our current work and future strategy are closely linked with the seven goals of the Well-being of Future Generations Act, particularly “A Wales of vibrant culture and thriving Welsh language”.

In its strategy, Cymraeg 2050, the Welsh Government notes its long term target is to achieve one million Welsh Language speakers by 2050. We believe that in working through the arts, we can support Welsh Government to deliver on its strategic themes within this, particularly around:

• an increase in the number of Welsh speakers

• an increase in the use of Welsh

• creating favourable conditions within the arts sector for the language to thrive

During the last year, the Welsh language was identified as one of the core principles underpinning the Investment Review process. Each organisation applying for multi-year funding needed to demonstrate their commitment to the Welsh language as part of their longer-term mission, vision and aims. In the guidance for applying, we outlined that we wanted all organisations we support to develop and promote a sense of shared ownership for the Welsh language and its unique role within a bilingual and multilingual Wales.

A new Welsh language plan was developed in consultation with the Committee and members of the Consortiwm Cymraeg. The strategic objectives identified are: to increase the availability of Welshlanguage products and services across the arts sector; to enable the arts sector to place the Welsh language at the centre of their actions; and to celebrate and share the Welsh language in a progressive, multilingual Wales by placing it at the centre of cultural creativity.

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“Everyone should have the same chance to access, take part, enjoy, and create art through the medium of Welsh. During the last year we have seen Cymru and Cymraeg increasingly celebrated on a global stage, with the arts and culture playing an important role in how the world sees us, and how we see ourselves.

Part of the Council’s work is to create opportunities for artists from all backgrounds to be creative through the medium of Welsh and to give people from all over Wales and the world the opportunity to enjoy the creativity of the Welsh language.”

Tudur Hallam

Chair, Welsh Language Committee

Activities undertaken by the Committee during 2022/23 included:

• monitoring progress against Council’s Welsh Language priorities, identifying for Council where more progress is required

• ensuring successful implementation and maintenance of the Welsh Language Standards and acting when Standards are not met

• supporting the appointment of a Welsh Language Enabler and a new Director of Arts Development whose remit includes the Council’s Welsh language strategy

• supporting and encouraging the innovative work developed by the Welsh Language Enabler, including the launch of a new scheme called Llais y Lle

• working with the Welsh Government on Leading in a Bilingual Country training sessions

• providing relevant advice in relation to the next Investment Review

• further developing the partnership with the National Centre for Learning Welsh to improve or refine the language skills of staff and creative freelancers within the arts sector and appoint a Learning Welsh Coordinator

• progressing implementation of recommendations outlined in the Welsh Language Mapping Report, including designing and commissioning research to identify the needs and opportunities for Welsh language development pathways within the arts for creative Welsh Arts Consortium

• workers and creating the first

The Committee met 3 times during 2022/23 to discharge its responsibilities. Members in total attended on 5 out of a possible 7 occasions.

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Future generations

“We’ve continued to make sure that the Council actively supports the Well-being of Future Generations Act, and to make sure the principles and ethos of the Act become integral in all the work we do. As well as all seven well-being goals, we are committed to working according to the principles outlined in the five ways of working, which are: Long-term; Integration; Involvement; Collaboration; Prevention.

Crucially, the Act provides us with a clear direction to work with partners across all sectors and to recognise the important contribution that culture, the Welsh language, and the arts has in tackling economic, social and environmental issues.

During 2022/23, the Well-being of Future Generations Act was an important factor in the process of developing the six principles identified during the Investment Review consultation. The principle of longterm thinking has been central to the creation of a new multi-year funding model. This work has also provided the basis for the creation of a new framework for the Strategic Plan.

The Creative Nature Memorandum of Understanding between the Arts Council of Wales and Natural Resources Wales builds on this commitment to develop cross-sector approaches and forms the foundation of our commitment to take a justice-centred approach to tackling the climate and nature emergencies through the arts.

Gwennan Mair

Chair, Future Generations Committee

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The Well-being of Future Generation (Wales) Act 2015 (WFGA) is landmark legislation that aims to improve the economic, social, environmental, and cultural well-being of Wales. The Arts Council of Wales is one of the public bodies named in the Act that must comply with the legislation.

This year we’ve looked ahead to the development of a new Strategic Plan and an Investment Review process which will deliver a new relationship with the arts sector based on the six principles outlined in the 2023/24 section of this report.

In addition, the Draft Plan for Climate Justice and the Arts is framed by the WFGA and sets out our approach to tackling climate and nature emergencies as one which will be outward-looking, international and inclusive. It provides a roadmap for both the Arts Council and the arts sector to make maximum progress towards key environmental issues such as decarbonisation and restoring nature and biodiversity, whilst also championing the key role of the arts in transforming our society and economy to tackle the climate and nature emergencies.

The Plan for Climate Justice and the Arts has been developed as part of our partnership with Natural Resources Wales and the Centre for Alternative Technology’s Zero Carbon Britain Innovation Lab, using elements of co-design with the arts sector.

As well as Climate Justice, our work in Arts & Health, Cymraeg, Creative Learning, and Children and Young People are integrally linked to our commitment to the WFGA. Through our partnership with the Welsh NHS Confederation , we continue to make significant progress in Arts and Health, and we have co-funded Arts & Health posts within all seven Local Health Boards as well as launching Cultural Cwtsh , an online resource for health workers in Wales.

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Windrush @ 75, Chapter (Image: Grace Springer Photography)

The Welsh Language Plan has been developed with input from Consortiwm y Gymraeg and is integral to the delivery of the Climate Justice Plan. The holistic understanding of well-being provided by the WFGA, along with the rich heritage of our Welsh language and culture, gives us a unique, values-led approach to guide our work.

A new Portfolio Manager with responsibility for Children and Young People has been appointed and discussions are underway on how to recruit young people to the Committees and ensure a stronger voice for our future generations on Council.

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Activities undertaken by the Future Generations Committee during 2022/23 included:

1. continuing to embed the Future Generations Five Ways of Working in our policies, strategies and in the delivery of our work

2. discussing the ways that the WFGA underpins the Strategic Plan and Investment Review

3. monitoring staff training and awareness of the WFGA, including a presentation by colleagues from the Future Generations office during a staff strategy away-day

4. learning from the work of other organisations, such as attending a conference on sustainable international working led by Creative Carbon Scotland and our Wales Arts International team with key representatives from the arts councils of all 4 UK nations, Julie’s Bicycle, On the Move and partners from Ireland

5. reviewing and updating reports and action plans including the Well-being of Future Generations Annual Report 2021-22 and the Widening Engagement Action Plan

6. ensuring retention of our Green Dragon Level 5 Accreditation for environmental sustainability

7. sharing the Arts Council’s experiences of embedding the WGFA at meetings, networks and events including Sustainable Development Coordinators Cymru + (SDCC+), the Edinburgh International Culture Summit and Wellbeing Economy Cymru

The Committee met 2 times during 2022/23 to discharge its responsibilities. Members in total attended on 6 out of a possible 6 occasions.

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Environmental performance

We promote the minimisation of waste amongst our staff by encouraging reduction, reuse and recycling and waste separation, reducing the amount sent to landfill.

WASTE Non-fnancial(tonnes)	2022/23	2021/22
Landfll	0	0
Reused/recycled	0	0

We reuse or recycle our surplus and redundant I T and office equipment. We use licensed and appropriate organisations to dispose of our waste.

All our major suppliers of office equipment and supplies have environmental policies and reporting mechanisms in place, and we consider environmental performance and awareness when selecting contractors and suppliers.

Managers and staff are provided with monthly reports analysing printing and copying activity, to encourage lower overall usage. Our internal reporting systems enable us to capture and measure details of our use of consumables, waste, energy, and staff travel, and thus our carbon dioxide equivalent (CO2e) emissions so that staff can manage their consumption of resources.

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ENERGY1	2022/23	2021/22
Greenhouse gas emissions (CO2e tonnes) Gross emissions,scope 2&3(indirect)	17	18
Energyconsumption(kWh)
Electricity (renewable)	72,854	68,809
Gas	8,285	9,068
Financial indicators(£)
Expenditure – energy	15,482	11,608
Water supply costs (offce estate) – currently unable to assess,included in service charge	N/A	N/A

1 Offices only. The impact of home working is not captured.

Arts Council of Wales 75

Our Cardiff and Colwyn Bay offices are leased on a shared occupancy basis, with certain costs included within our service charges. Our office in Carmarthen is occupied on a hot-desking basis, where we pay for the use of 4 desks per week. These arrangements restrict our ability to accurately assess our total environmental impact from energy usage. Our major use of electricity is in our Cardiff office where the landlord has confirmed that 100% of the supply is from verifiable Natural Renewable sources (wind, water and hydro).

We promote the use of environmentally friendly means of transport and encourage staff to make journeys by the most efficient means possible, taking account of both environmental and financial considerations. We have to balance this against the delivery of our strategic priorities to develop the arts in Wales, and to promote Welsh arts and artists internationally. Up to and beyond the pandemic this remains a significant practical challenge. There are inevitable fluctuations in the level of CO2e emissions attributable to travel when we are actively involved in international projects.

STAFF TRAVEL 2022/23	2021/22
Travel emissions(CO2e tonnes)
Rail 3	1
Air1 24	1
Car/vans 10	4
Travel cost(£)
Rail 15,372	2,919
Air 19,317	609
Car/vans 16,943	6,365
Travel(miles)
Rail 45,407	10,013
Air 97,664	3,133
Car/vans 36,083	14,144

1 Includes the influence of radiative forcing in air travel emissions to capture the maximum climate impact. Radiative forcing is a measure of the environmental impact of emissions of NOx (nitrous oxides) and water vapour when emitted at high altitude.

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Rhys Slade-Jones, Future Wales Fellowship (Image © Matt Austin)

Arts Council of Wales

77

Principal risks and uncertainties

Managing our affairs effectively

As stewards of public funds we must operate in an efficient and accountable manner. Our priorities and funding decisions are agreed by Council in accordance with the policies and procedures that apply to our use of public funds. The Audit & Risk Assurance Committee’s (A R A C’s) role is to ensure that we deliver on these commitments, doing so in ways that are transparent, accountable and that represent value for money. An extensive programme of internal audit assists us in this work.

Protecting the public’s money

An important part of A R A C’s work is reviewing our defences against Fraud and Cyber-crime. Attempts to illegally gain access to our funds and I C T systems occur regularly. Council takes these issues very seriously and A R A C looks carefully at our policies and processes to ensure they are robust and secure. There were no successful attacks during the year.

Un Nos Ola Leuad, Theatr Bara Caws (Image: Kristina Banholzer)

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Taking risks: a balanced approach

Unauthorised access to our systems is just one of a range of potential risks that could compromise our performance and reputation. We expect the organisations that we fund to be well-managed and to represent good value for money. Our ongoing monitoring assesses the extent to which this is the case. But we are not so risk averse that we ignore important opportunities for innovation and growth. We aim to take appropriate but informed risks, as circumstances dictate. However, we do not behave recklessly; neither would we wilfully squander public money nor endanger our reputation for prudent and effective delivery.

Our systems of internal control identify and prioritise the risks that could prevent us achieving Council’s policies, aims and objectives. They evaluate the likelihood of the risks being realised, consider the impact should they occur, and seek to manage them efficiently, effectively and economically. We continually seek to improve our internal control systems.

A R A C reviews the robustness and suitability of this aspect of Council’s work. The Corporate Assurance Framework (C A F) and separate Corporate Risk Register were scrutinised at regular intervals throughout the year. This provided members with greater clarity on the levels of assurance in operation across all of the Council’s activities and the corresponding risks identified. A R A C reviewed the Horizon Scanning section of the C A F at each of its meetings.

Arts Council of Wales 79

Financial risk and capital management

The Council holds financial instruments mainly to finance its operations, for example trade debtors and trade creditors, and cash balances arising directly from its operations. The financial risk management of exposures arising from trading financial instruments, primarily trade debtors and trade creditors, is through a series of policies and procedures.

Risks are managed as follows:

• Fraud risk – the Arts Council, in common with most other organisations, is exposed to fraud risk on an increasing and ever more sophisticated scale. We noted a potential for increased fraud risk given current circumstances with Covid-19 and updated our internal anti-fraud controls and checks in response.

• Liquidity risk – the Council is satisfied that it has sufficient liquid resources, in the form of cash at bank and agreed funding for 2022/23, to meet all current contracted commitments. The Council does not consider that its activities are exposed to any significant liquidity risk.

• Interest rate risk – cash and cash equivalent balances are held in instant access variable rate bank accounts which on average carried an interest rate of 0.88% (2021/22: 0.02%) in the year.

The Council does not consider that its activities are exposed to significant interest rate risks.

• Foreign currency risk – the Council is not currently exposed, to any significant degree, to foreign exchange risks.

• Cash flow risk – the Council is not exposed to any significant cash flow risks.

• Credit risk – The Council is not exposed to any significant credit risk.

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The risks to our performance: What they are and how we deal with them

Principal risks Key mitigating actions Coronavirus Whilst offices remained closed to external visitors for a significant part of this year, arrangements were in place for staff to return to office-working on Staff contracting the a hybrid basis. virus results in the Arts Council/teams/services We continue to monitor staff availability and health through routine becoming inoperable. timesheets and sickness reporting arrangements. Data evidences no additional measures are required. Covid-19 has a significant and longWe undertook an extensive public consultation on our proposed Investment term detrimental Review schedule and activity, mindful that the sector was still in recovery impact on the Sector from the pandemic and now facing a cost of living crisis. However, sector including: feedback was supportive, advocating that change was needed now and • individual artists and viewing the Investment Review proposals as delivering on this.

• individual artists and freelancers

• organisations/Arts Portfolio Wales

Governance

End of final terms of office for Council Members including Chair and Vice Chair in March 2023 and the appointment of a new, permanent Chief Executive may lead to change/inconsistencies in key messages and objectives, including the Investment Review and Strategic Plan priorities.

Comprehensive hand over arrangements for both new appointments were in place.

The incoming Chief Executive was involved in the drafting of the Strategic Plan at the earliest opportunity.

Our published Investment Review Guidance was informed by corporate priorities and public consultation feedback, providing the basis for the new Strategic Plan and ensuring consistency of message and strategic principles.

Welsh Government’s recruitment campaign for 2 new members of Council and a new Chair will ensure appointments are made early in the new financial year. For continuity, we secured Welsh Government agreement to extend the Vice Chair’s term of office until March 2024, particularly in consideration of her cover as Interim Chair up to March 2023.

Arts Council of Wales 81

Key mitigating actions

Principal risks

Planning, strategy and delivery

Our current Corporate Plan expires in March 2023 when we are asking organisations to make applications to our Investment Review, resulting in risk of lack of information/direction for applicants to develop their proposals.

Financial and resource management

The cost of living crisis, and its impact over the longer term, has a significant, detrimental effect on the sector and on our own available resources, including staffing.

Funding

Failure of one or more of our Arts Portfolio Wales (APW) organisations or cuts in public sector funding damages the arts across Wales.

Currently funded capital projects fail to secure additional funds to cover current spiralling costs and therefore at risk of not completing.

We rescheduled our next Investment Review which included wider engagement with both the public and the sector to address those areas currently under-represented. The objectives and timing of the Review were subject to extensive public consultation and aligned with our chartered and charitable objectives, the 7 Wellbeing goals and Welsh Government’s priorities.

Our new Strategic Plan has been informed by the same consultation feedback and is underpinned by the 6 principles we have communicated as the framework for our Investment Review. This will ensure consistency of message between the Review and the new Strategic Plan. Council approved our draft Strategic Plan in March 2023 for consideration and approval by Welsh Government. Further work on this will continue in 2023/24 and in consideration of the outcomes of the Review and development of the Welsh Government draft Cultural Strategy.

The situation was closely monitored. Reports on potential/likely funding cuts and proposed changes faced by both the sector and ourselves were considered on a regular basis.

To help deliver against objectives, we secured additional funding from Welsh Government for targeted areas of support. We increased the number of formal partnerships with external stakeholders to maximise efficiencies and available resources and to explore alternative strategies for protecting support for creative activity.

We continue to advocate a case for the arts and for our own work at every opportunity and ensure efficient and strict budgeting, particularly against our own costs and to help ensure as much funding as possible was available for direct arts expenditure.

Core grants to APW organisations account for most of our grant-in-aid funding from Welsh Government. The Portfolio’s artistic, financial and operational effectiveness was closely monitored by officers. Regular updates on their financial health, governance and stability were provided to Audit & Risk Assurance Committee and to Council. When necessary, we take a pro-active approach to working directly with organisations that experience difficulties, investing time and expertise to help them resolve matters of concern.

The impact of the current financial crisis on materials and labour charges for capital projects means it will prove challenging to assess ongoing and new budgets accurately. Under National Lottery Directions we are unable to provide funding for retrospective costs so can only make supplementary grants for increased future costs. Applicants may need to secure additional funds from other sources.

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----- Start of picture text -----
Principal risks Key mitigating actions
Grants management We take a risk-based approach to our assessment of applications and the
monitoring of grants awarded. We use information collected from grant
Poor or fraudulent
recipients as part of our monitoring procedures to ensure that the stated
funding applications
outcomes for which we provided funding were achieved.
mean that public funds
are not used for the Council takes fraud, corruption and maladministration very seriously and
purposes intended. has policies to prevent, and deal with, both, including whistleblowing and
anti-fraud polices. These were reviewed during the year.
The introduction
of a new grants The project to replace our grants management system continues to
management system progress. We successfully delivered the Investment Review application
compromises Council’s process, including the introduction of video and audio submissions, through
ability to deliver its the new grants portal, alongside our cyclical programme of Lottery grants.
critical functions.
Brexit We continue to monitor developments closely.
Continuing We have a Task Group, including representatives from the Welsh
uncertainty over post- Government and other UK Arts Councils to identify potential risks,
Brexit circumstances lobby the UK Government and provide advice to the sector. With the
has a detrimental other UK Arts Council’s we have launched Arts Infopoint to provide
impact on the support and advice on artists’ mobility from the UK to member
operation of our countries of the European Union (EU).
funded organisations
We revised our data protection considerations to reflect the UK
and our own
General Data Protection Regulation (UK GDPR) and conform with the
data protection
EU/UK Adequacy Agreement.
and data sharing
considerations.
Stakeholder and The situation is closely monitored and updates on potential developments
partner engagement and proposed changes are considered. The likelihood and impact of this
risk will significantly increase in consideration of the increase in general
Local Authority funding
costs faced by all during the current cost of living crisis. In the meantime,
cuts and changes in
we will continue to advocate for the arts and seek new partnerships and
its structure have a
significant impact opportunities to secure additional funding.
on our funding
partnerships and
relationships.
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Arts Council of Wales 83

----- Start of picture text -----
Principal risks Key mitigating actions
IT A full Disaster Recovery Plan is in place and tested annually. If an incident
arises, alternative offsite IT facilities are available. Staff are equipped to
Unforeseen or
work remotely and did so throughout the pandemic with no significant IT
unexpected outages
issues.
compromise business
continuity. Cyber security and IT penetration tests are conducted annually. We comply
with IASME security standards.
There is a breach in our
IT security. We have robust reporting and investigation arrangements in the event of a
security or data breach.
Personal Data The Council has controls and policies in place to ensure data security and
integrity. Encrypted IT systems ensure the physical security of data is tightly
Personal data is lost,
controlled. Staff undertake regular training and awareness sessions.
compromised or stolen.
Staffing Delivering an expanding programme of activity with fewer staff is a
continuing concern for Council. Work is underway to deliver projects that
Recurrent pressure
support new ways of working. Progress against plans is carefully monitored
to cut costs reduces
and reviewed on a quarterly basis, and every effort is made to implement
staff capacity to an
efficient business practices.
unacceptable level.
Risk management Council’s suite of risk management policies is reviewed regularly. We share
good practice with other Welsh Government Sponsored Bodies.
Our current polices and
controls fail to protect Robust assessment and monitoring procedures are in place across all areas
us from potentially of activity to ensure grant monies are used for the specified purpose.
fraudulent activity,
particularly under
current circumstances
and working practices.
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Annual Report 2022-23 | 84

----- Start of picture text -----
Principal risks Key mitigating actions
Environment Projects and activity we fund, in response to grant applications and through
procurement, must demonstrate an understanding or development of
Our published strategy
environmental considerations.
to develop and promote
the arts in Wales and We hold Green Dragon level 5 accreditation and adopt Future Generations
internationally has a resilience considerations across our offices, including Fair trade, printing/
detrimental impact consumables, energy usage and recycling. Our Travel and Subsistence Policy
on the Council’s is based on HM Revenue & Customs and other government practices and
environmental targets. rates.
Our carbon footprint Hybrid working arrangements are being introduced in the wake of the
escalates as staff return pandemic. It is unlikely that all staff will return to the office on a permanent
to our offices and basis.
external activity comes
We will continue to use virtual meetings, where appropriate, to save on
back online.
travel and time. Guidance was issued to staff regarding attending external
The current meetings and events.
environmental crisis has
Over the coming year, aligned with the Welsh Government’s Programme for
a longer term impact
Government and carbon reduction targets, there will be increased focus on
for future generations.
our own carbon footprint and that of our funded activity.
A Portfolio Manager leads our Well-being of Future Generations
considerations, including climate justice. We are developing our own climate
justice action plan. Climate Justice is one of the 6 key principles of our
Investment Review and new Strategy.
We engage with the Cross-Distributor Environmental Responsibility Group
to ensure a joined up approach with key stakeholders such as Arts Council
England, Julie’s Bicycle and Creative Carbon Scotland and have joined
Sustainable Development Coordinators Cymru +, which is a network of
officers responsible for sustainable development in Local Authorities.
Equalities Led by our Agent for Change, we continue to drive forward our agenda
through the joint action plan with other Welsh public bodies and our own
We make little or no
Strategic Equality Plan and the joint Widening Engagement Action Plan with
progress regarding our
Amgueddfa Cymru.
equalities agenda.
Equalities and Widening Engagement is one of the 6 key principles
underpinning our Investment Review and new Strategy.
We continue with our support for the Hynt scheme to promote a consistent
offer for disabled visitors and their personal assistants/carers at venues
throughout Wales.
We have launched the Creative Steps programme, providing targeted
support for underrepresented individuals and organisations led by and/
or working with underrepresented communities to promote business,
organisational and career development.
Our Strategic Equality Committee assesses our performance against our
published commitments and reports to Council.
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Arts Council of Wales 85

Financial and business review

The Council has two principal funding sources: grant-inaid from the Welsh Government; and, as one of the bodies responsible for the distribution of funds for good causes, a share of the proceeds raised by the National Lottery. The Council is required to account separately for its grant-in-aid and lottery distribution activities.

Grant making policies

The Council invites applications for recurrent and one-off grants from organisations and individuals and monitors the proper and effective use of those grants. As well as meeting the Council’s strategic aims, applications must demonstrate benefit to the people of Wales across all regional, cultural and economic sectors. Recurrent grants are funded from grant-in-aid only but one-off grants may be funded from grantin-aid or Lottery income. Under the terms of its Lottery Policy Directions the Council makes grants in support of capital and other projects under revenue schemes relating to the arts in Wales.

Recurrent, or annual revenue, grants are made to a portfolio of organisations to deliver high quality artistic services – our Arts Portfolio Wales. Consideration of revenue status for any organisation is dependent on the availability of funding, the sustainability of the organisation, and demonstration of strong fit with the Council’s strategic priorities. Currently, each revenue-funded organisation enters into a funding agreement for a term of one to three years which sets out the anticipated level of funding, the programme of activity to be delivered, requirements for monitoring and annual review, standard conditions of grant, and any additional conditions.

Lottery capital grants, to organisations only, support the purchase, improvement, restoration, building or creation of an asset that will be used for the benefit of the public to develop the organisation’s work.

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Literature Wales, Senedd Event (Image: Mefus Photography)

Council delegates Lottery grant-making in a number of strategic areas to Ffilm Cymru Wales, Nesta, B B C Cymru Wales, Literature Wales, and Tŷ Cerdd. The terms of the external delegation are set out in formal agreements and satisfy the conditions of the Council’s Statement of Financial Requirements.

The obligations of the Council’s Accounting Officer are unchanged by the delegation. But he has satisfied himself that the organisations and their systems are suitable to undertake the delegated functions, including: the assessment of applications for funding; holding, accounting for and distributing Lottery money allocated to them by the Council for that purpose; and monitoring funded projects.

The delegation agreements allow for appropriate access to the delegatees by the Council’s internal auditors and by the Comptroller and Auditor General for the review of the operation of the delegated functions.

One-off grants are available to help fund time-limited artistic projects of high quality which best meet the Council’s funding priorities. Ongoing monitoring of our grant programmes alerts us to any specific risk issues. Identified risks lead to an escalation of the level of monitoring and, if necessary, can result in the payment of funding being withheld and/or deferred.

Cash reserves – General Activities

The Council’s policy on restricted funds is to record separately grants, donations and other sources of income which are received for a specific purpose or project, or where restrictions are imposed that are narrower than the Council’s overall objectives. All of these incoming resources have been utilised in the year for their intended purpose.

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Most of the Council’s unrestricted funds are committed during the year, in accordance with the conditions of grant-in-aid issued by the Welsh Government. Any surplus funds are carried forward and used in furtherance of the Council’s chartered objectives in the following year. There were no designated funds at 31 March 2023.

Our holding of cash reserves is restricted by the Welsh Government’s directions on month-end and year-end flexibility. Within those parameters, our policy is to manage cash flow by drawing down funds each month to meet planned expenditure with a modest allowance for unforeseen short-term cash requirements. We review this policy and our reserves position annually.

At 31 March 2023 the unrestricted cash funds were £0.279m (2022: £0.335m).

The accounts have been prepared on a going concern basis and there are no material uncertainties about our ability to continue in operation.

Investment

Investment powers are governed by the Trustee Act 2000, the Framework Document issued by Welsh Ministers and the Financial Directions issued by the Secretary of State for Culture, Media and Sport. The Council’s policy is to achieve the maximum return within these terms. Interest at a negotiated rate linked to bank base rate is received on all credit balances in the Council’s current accounts. From time to time, higher rates may be available for restricted funds on long term deposit.

The Council’s banking service is provided by Santander U K plc.

All interest and other investment income earned on cash and bank balances which arise as a result of funding from the Welsh Government is surrendered to H M Treasury via the Welsh Consolidated Fund.

Balances held in the National Lottery Distribution Fund remain under the stewardship of the Secretary of State for Culture, Media and Sport so, although the Council receives investment income on its share of such balances, the Council has no investment powers over the Fund.

Annual Report 2022-23 | 88

Payment of creditors

Council follows the Late Payment of Commercial Debts (Interest) Act 1998, and the U K Government's Better Payment Practice Code. Council is required to pay suppliers' invoices not in dispute within 30 days of receipt of goods or services or valid invoice, whichever is the later.

We aim to pay all invoices, including disputed invoices once the dispute has been settled, in line with these terms. During the year ended 31 March 2023, the Council paid 99% (2021/22: 99%) of all invoices within the terms of its payment policy.

The Council has a further aim to pay invoices within 10 days. For 2022/23, 83% (2021/22: 87%) of invoices have been paid within 10 days.

It is not anticipated that our policy will alter in future years and we will continue to adopt challenging performance targets.

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Financial Results – General Activities

2022/23 £’000	2021/22 £’000
Headlines from the General Activities accounts:
Total income for theyear 61,216	48,000
Excess of income over expenditure/ (expenditure over income) 239	(47)
Net current assets 2,725	2,382
Total fund balances at 31 March 2,658	2,419
Forward commitments of grants for the following year 27,180	27,484
The separate Lottery Distribution accounts show:
The Council’s share of the proceeds from the National Lottery 17,681	18,078
The combined:
Total income for both general and Lottery activities was 79,562	66,242
and
Total charitable arts expenditure for both general and Lotteryactivities was 78,113	70,563

The Council’s income for 2022/23 was £13.2m (28%) more than the previous year.

Although we received no further Cultural Recovery Funding from Welsh Government this year – our income last year included £12.7m to support the sector in the wake of the Covid-19 pandemic – we were awarded £25.9m of restricted funding from Welsh Government for other specific activities. The largest element of this is the £23.5m capital award which we have re-granted to Flintshire County Council for the redevelopment of Theatr Clwyd over the next three years. The cash will be claimed by the local authority from us, and drawn down by us from Welsh Government, to meet the project costs as they fall due. Nevertheless, in accordance with accounting principles, the whole of our grant to Flintshire County Council is charged in this year’s financial statements, as is the whole of the grant to us from Welsh Government to meet our constructive obligations.

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Overall, there was a net increase in funds for the year of £239,000: restricted funds reduced by £197,000 whilst unrestricted funds increased by £436,000.

The reduction in restricted funds reflects our use of reserves from the previous year for the Creative Learning through the Arts programme. There had been an unavoidable reduction in activity during the pandemic when schools faced much disruption.

The increase in unrestricted funds relates primarily to delays in delivering some elements of our strategic programmes. The funds have been rolled forward into next year’s budget.

At 31 March 2023 we had unrestricted reserves of £1.1m (2022: £0.7m) and restricted reserves of £1.6m (2022: £1.8m). The level of our unrestricted reserves is directly affected by the Welsh Government’s policy on year-end cash balances, as outlined in the Cash reserves section above. The Council is permitted to carry over from one financial year to the next no more than 2% of its total non-Lottery income. We were within this cap on 31 March 2023.

Red Riding Hood, Ballet Cymru (Image © Sian Trenberth Photography)

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Financial Results – Lottery Distribution

2022/23 £’000	2021/22 £’000
Headlines from the LotteryDistribution accounts:
Share ofproceeds from the National Lottery 17,681	18,078
Netgrants made 15,170	20,637
Net expenditure for theyear (855)	(6,165)
Balance held in the National Lottery Distribution Fund at 31 March 24,399	26,165
Reserves at 31 March 5,325	6,180

Grants processed

Grants processed
	2022/23	2021/22
Number of applications received:
Capital schemes	4	6
Revenue schemes	955	766
	959	772
Number ofgrants made:	502	374
Value ofgrants made:	£’000	£’000
Capital schemes	330	5,739
Revenue schemes	15,003	15,179
	15,333	20,918
Grantspayable at 31 March:
Capital schemes	7,471	9,143
Revenue schemes	12,252	11,339
Arts Resilience Fund(Covid-19)	-	11
	19,723	20,493

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National Lottery income remained steady this year, though our share was £0.4m less than in 2021/22. The Gambling Commission has indicated some uncertainty regarding future income forecasts in the light of cost of living concerns and the circumstances faced by the new Licence holder when taking over in early 2024. Council continues to monitor closely the trend in the share of proceeds received by the good causes and the potential impact on future Lottery-funded programmes.

The ring-fencing of funds for our ongoing Capital programme and the progress of development of those key projects continues to impact our annual cash flows. Council allocated a total of £22m for the programme in 2012/13 for a period of five years. However, several priority projects remain at their development stages and Council considers it important to show commitment to them, and other financers, by leaving indicative funding offers in place. So our remaining capital budget allocation of approximately £1.5m has been rolled through to 2023/24.

As the arts sector emerged from the pandemic in 2021/22, we saw increased grant-making through our Connect and Flourish and Create schemes which provided a new way of thinking in the sector focused on collaborative working. We also awarded a £5m capital grant towards the redevelopment of Theatr Clwyd, a sum set aside by Council some time previously for the project which was delayed by the pandemic. As a result of those new and delayed grant commitments our expenditure in 2021/22 exceeded our in-year income by £6.2m, utilising reserves brought forward from previous years.

In 2022/23 our grant-making returned to more usual levels. In addition to our ongoing funding schemes we received partnership income from Welsh Government to support arts projects associated with the FIFA Men’s World Cup, and from the Baring Foundation for our Arts, Health and Wellbeing programme. Strategic funding for Criw Celf 22-23 opened to build on previous work delivering this creative talent development programme for young people in the visual arts, addressing barriers to access.

At year-end grants payable totalled £19.723m (2022: £20.493m). Undrawn funds in the National Lottery Distribution Fund plus cash and cash equivalents totalled £26.819m (2022: £27.966m). Our share of balances held in the National Lottery Distribution Fund fell by approximately 7% compared with last year-end, reflecting our use of reserves carried forward during the pandemic.

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Remuneration and Staff Report

Equal opportunities

The Council is committed to a policy of equality of opportunity in its employment practices. In particular, the Council aims to ensure that no potential or actual employee receives more or less favourable treatment on the grounds of age, disability, ethnic or national origin, gender, marital or parental status, nationality, political belief, race, religion or sexual orientation.

Each year Council publishes a Pay Policy Statement. This includes a detailed breakdown of the make-up of our staff. It also addresses Gender Equality and Equal Pay reporting.

Council ensures that appropriate facilities are available for disabled employees. Public signage also promotes the Council as a bilingual organisation.

Our H R policies

Council’s aim is to be a progressive, family-friendly employer. We operate a number of H R policies that reflect our legal obligations as an employer. Policies are reviewed on a regular basis and updated to reflect any relevant changes in legislation. The management of Council’s H R policies is monitored by the H R & Remuneration Committee.

Employee communication, consultation and negotiation

Council’s recognised trade union is Unite, with which it has established a procedural agreement; representatives of management and union meet regularly to discuss matters of current concern.

We undertake regular surveys of staff to identity any issues or areas for improvement.

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Remuneration

The terms of appointment of the Chair and Chief Executive are agreed with the Welsh Government.

The Council remunerates its remaining staff in accordance with an agreed pay and grading system.

With the approval of the Charity Commission the Chair is remunerated at a rate determined by the Welsh Government which reflects a minimum time commitment to Council business. Annual increases of the Chair’s salary are also advised by the Welsh Government but s/he receives no bonus payments and is not a member of the Arts Council’s pension scheme.

The Chief Executive’s remuneration consists of a basic salary plus eligibility for an annual bonus. Annual bonuses are recommended to Council by the H R & Remuneration Committee in consideration of the performance of the Chief Executive against a set of predetermined objectives.

Council members are appointed by the Welsh Ministers for a period of three years and may be re-appointed for a further period. The current Chair, Maggie Russell, took up the position on 1 April 2023.

The Chief Executive and Directors – the Senior Leadership Team – are all employed on permanent contracts on the Council’s standard terms and conditions. They are entitled to thirteen weeks’ notice of termination of employment. The Interim Chief Executive for the period 7 March 2022 to 1 November 2022 was employed on a temporary contract.

The current Chief Executive resigned his unpaid role as a Council member and Trustee and took up the position with the approval of the Charity Commission.

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The dates of commencement and termination of employment are:

Maggie Russell

Chair 1 April 2023

Dafydd Rhys

Chief Executive 17 October 2022

Richard Nicholls

Director of Operations 28 September 2020

Diane Hebb

13 January 1992 Director of Arts Engagement from 1 February 2012

Phil George

Chair

1 April 2016 to 31 March 2023

Michael Elliott

Interim Chief Executive 7 March 2022 to 1 November 2022

Rebecca Nelson

Director of Finance and Business Services 17 June 2019

Lleucu Siencyn

Director of Arts Development 9 May 2022

Staff turnover

Across the whole Council:

Staff turnover Across the whole Council:
2022/23	2021/22
Average number of employees (headcount) 91.92	86.25
Leavers 8	4
Starters 11	11
Average turnover 8.70%	4.64%

Average turnover is calculated as follows:

total number of leavers over the year

X 100

average total number employed over the year

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Sickness absence

Across the whole Council:

Sickness absence Across the whole Council:
2022/23	2021/22
Days lost as a result of sickness 715	532
Average number of employees (headcount) 91.92	86.25
Average number of days lost per employee 7.78	6.17

This represented an absence rate of 3.12% (2021/22: 2.46%) based on 249.5 (2021/22: 250.5) working days.

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Consultancy

During 2022/23 the Council paid £2,000 in consultancy costs (2021/22: £Nil) in relation to expert advice and opinion obtained to assist in strategic decision-making. £1,000 (2021/22: £Nil) is charged to General Activities and £1,000 (2021/22: £Nil) to Lottery Distribution.

The Chief Executive and Directors are responsible for directing the Council’s activities. Their actual emoluments and pension benefits were as shown in the following tables.

The amount of pension benefits for the year which contributes to the single total remuneration figures is calculated in a similar way to the method used to derive pension values for tax purposes, and is based on information received from the actuary of the Arts Council Retirement Plan 1994.

The value of pension benefits is calculated as follows:

(real increase in pension* x 20) + (real increase in any lump sum) – (contributions made by member)

*excluding increases due to inflation or any increase or decrease due to a transfer of pension rights

This is not an amount which has been paid to an individual by the Council during the year, it is a calculation which uses information from the pension benefit table. These figures can be influenced by many factors, e.g. changes in a person’s salary, whether or not they choose to make additional contributions to the pension scheme from their pay, and other valuation factors affecting the pension scheme as a whole.

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The single total remuneration figures of the Senior Leadership Team (audited):

2022/23 £’000	2022/23 £’000	2022/23 £’000	2021/22 £’000	2021/22 £’000	2021/22 £’000
Name Position Emoluments band	Pension benefts	Single total remuneration	Emoluments band	Pension benefts	Single total remuneration
Dafydd Rhys Chief Executive from 17 October 2022 45-50 Fullyear equivalent 100-105	11	55-60	N/A	N/A	N/A
Michael Elliott1 Interim Chief Executive from 7 March 2022 to 1 November 2022 65-70 Full year equivalent 100-105	-	65-70	5-10	-	5-10
			100-105
Siân Tomos Director of Arts Development to 5 September 2021 Chief Executive from 6 September 2021 to 19 November 2021 N/A Full year equivalent	N/A	N/A	50-55	55	105-110
			90-95
Nicholas Capaldi Chief Executive to 30 September 2021 N/A Full year equivalent	N/A	N/A	50-55	5	55-60
			100-105
Richard Nicholls2 Director of Operations 80-85	17	95-100	85-90	20	105-110
Diane Hebb2 Director of Arts Engagement 80-85	(35)	45-50	85-90	72	155-160
Rebecca Nelson2 Director of Finance and Business Services 80-85	13	90-95	85-90	25	110-115
Lleucu Siencyn Director of Arts Development from 9 May 2022 65-70 Full year equivalent 70-75	14	80-85	N/A	N/A	N/A

1 The Interim Chief Executive elected not to join a pension scheme and there was no requirement to auto-enrol him.

2 The emoluments for 2021/22 include a temporary extra responsibility allowance of £5,000-£10,000.

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The pension benefits of the Senior Leadership Team (audited):

2022/23 £’000	2022/23 £’000	2022/23 £’000	2021/22 £’000	2022/23 £’000
Name Position Real increase in pension and related lump sum at age 65	Total accrued pension at age 65 as at 31/03/23, or date of leaving if earlier, and related lumpsum	Cash Equivalent Transfer Value1 at 31/03/23	Cash Equivalent Transfer Value at 31/03/22, or date of leaving if earlier	Real increase in Cash Equivalent Transfer Value2
Dafydd Rhys Chief Executive from 17 October 2022 Pension 0-2.5 Lump sum 0-2.5	Pension 0-5 Lump sum 0-5	9	N/A	6
Richard Nicholls Director of Operations Pension 0-2.5 Lump sum 2.5-5	Pension 0-5 Lump sum 5-10	20	17	4
Diane Hebb Director of Arts Engagement Pension (2.5)-0 Lump sum (5)-(2.5)	Pension 20-25 Lump sum 70-75	390	469	(25)
Rebecca Nelson Director of Finance and Business Services Pension 0-2.5 Lump sum 0-2.5	Pension 0-5 Lump sum 10-15	28	40	1
Lleucu Siencyn Director of Arts Development from 9 May 2022 Pension 0-2.5 Lump sum 0-2.5	Pension 0-5 Lump sum 0-5	7	N/A	3

1 Cash Equivalent Transfer Values – A Cash Equivalent Transfer Value (CETV) is the actuarially assessed capitalised value of the pension scheme benefits accrued by a member at a particular point in time. The benefits valued are the member’s accrued benefits and any contingent spouse’s pension payable from the scheme. A CETV is a payment made by a pension scheme or arrangement to secure pension benefits in another pension scheme or arrangement when the member leaves a scheme and chooses to transfer the benefits accrued in their former scheme. The pension figures shown relate to the benefits that the individual has accrued as a consequence of their total membership of the pension scheme, not just their service in a senior capacity to which disclosure applies. The figures include the value of any pension benefit in another scheme or arrangement which the individual has transferred to the Arts Council Retirement Plan 1994. They also include any additional pension benefit accrued to the member as a result of their purchasing additional pension benefits at their own cost. CETVs are calculated within the guidelines and framework prescribed by the Institute and Faculty of Actuaries and do not take account of any actual or potential reduction to benefits resulting from Lifetime Allowance Tax which may be due when pension benefits are drawn.

2 Real increase in C E T V – This reflects the increase/(decrease) in CETV effectively funded by the employer. It does not include the increase in accrued pension due to inflation, contributions paid by the employee (including the value of any benefits transferred from another pension scheme or arrangement) and uses common market valuation factors for the start and end of the period.

The Chair is remunerated for his or her services but receives no bonus payments and is not a member of the pension scheme. Other Council and Committee Members receive no payment for their services. An aggregate amount of £3,035 (2021/22: £185) was reimbursed to 11 (2021/22: 1) Council members for travel and subsistence costs incurred on Council business. The aggregate amount allocated to General Activities was £1,002 (2021/22: £96) and to Lottery Distribution £2,033 (2021/22: £89).

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The total actual emoluments of the Chairs and Chief Executives were made up of (audited):

2022/23 £	2021/22 £
Chairs1
Chair(to 31 March 2023)– Phil George
Salary 25,556	48,810
Interim Chair(from 1 October 2022 to 31 March 2023)– Kate Eden
Salary 17,524	-
Chairs’ total
Salary 43,080	43,810
1 Phil George remained in offce until the end of his term on 31 March 2023. He was remunerated for his services until October 2022 when, due to his ill-health, Kate Eden was appointed Interim Chair for the remainder of the fnancialyear.
Chief Executives
Chief Executive(from 17 October 2022)– Dafydd Rhys
Salary 46,721	-
Employer’spension contribution 9,764	-
56,485	-
Former Interim Chief Executive (from 7 March 2022 to 1 November 2022)– Michael Elliott
Salary 65,643	7,413
Former Chief Executive(to 30 September 2021)– Nicholas Capaldi
Salary -	51,548
Employer’spension contribution -	10,077
-	61,625
Former Chief Executive (from 6 September to 19 November 2021) – Siân Tomos
Salary -	21,751
Employer’spension contribution -	4,546
-	26,297
Chief Executives’ total
Salary 112,364	80,712
Employer’spension contribution 9,764	14,623
122,128	95,335

66% (2021/22: 66%) of the Chairs’ and 72% (2021/22: 72%) of the Chief Executives’ emoluments are charged to General Activities and 34% (2021/22: 34%) of the Chairs’ and 28% (2021/22: 28%) of the Chief Executives’ to Lottery Distribution.

Reimbursed travel and subsistence expenses incurred and defrayed whilst on Council business: 2022/23	2021/22 £
Chairs £593	£185
Chief Executives £11,050	£627

51% (2021/22: 52%) of the Chairs’ and Chief Executives’ expenses are charged to General Activities and 49% (2021/22: 48%) to Lottery Distribution.

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Other than members of the Senior Leadership Team listed above, the number of employees (whole Council) whose remuneration for the year, excluding employer’s pension contributions, exceeded £60,000 was as follows:

2022/23 £60,000 to £69,999 1 Fair pay(audited) 2023	2021/22
	1
	2022
The range of annual remuneration (full time equivalents) at 31 March was (whole Council): £25,026 to £101,830	£21,064 to £101,830
The Chief Executive is the highest paid member of staff. During the year the Chief Executive’s remuneration did not change(2021/22: no change). Staff as a whole received a pay award of 4.0%(2021/22: increase 2.75%).

The Chief Executive is the highest paid member of staff. During the year the Chief Executive’s remuneration did not change(2021/22: no change). Staff as a whole received a pay award of 4.0%(2021/22: increase 2.75%).
The annual remuneration (full time equivalents) of employees and the ratios between each of those and the pay of the Chief Executive at 31 March were (whole Council): 25th percentile Median (50th) percentile 75th percentile £31,348 1:3.2 £45,582 1:2.2 £45,582 1:2.2
	£30,142 1:3.4 £43,829 1:2.3 £43,829 1:2.3

Annual remuneration comprises salary only. No benefits were paid and there was no performance-related pay.

Staff composition at 31 March (full time equivalents – whole Council)	2023	2023	2023	2022	2022	2022
	Male	Female	Total	Male	Female	Total
Senior LeadershipTeam	2	3	5	2	2	4
Portfolio Managers/Heads of Department	8	3	17	7	8	15
Senior Offcers	13	22	35	13	20	33
Offcers	3	9	12	2	9	11
Team Co-ordinators/Personal Assistants	2	16	18	2	16	18
	28	59	87	26	55	81
	32%	68%		32%	68%

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Parliamentary Accountability and Audit Report (audited)

Remote contingent liabilities

The Council is an admitted employer of the Arts Council Retirement Plan 1994. The Plan is a funded, defined benefit, multi-employer scheme where the participating employers are unable to identify their shares of the underlying assets and liabilities.

In the event of the withdrawal of an employer, the debt triggered under section 75 of the Pensions Act 1995 would be calculated using the solvency shortfall of the entire Plan, not the employer’s own asset share and liabilities. Also, in the event of Plan wind up, as the Plan is a “last man standing” arrangement all employers would be jointly and severally liable for the total shortfall in the Plan.

It is not practical to estimate the financial impact.

Losses, special payments and gifts

The Council incurred no losses during the year and made no special payments or gifts.

Fees and charges income

The Council has no material income of this kind.

Dafydd Rhys Accounting Officer 20 October 2023

Endorsed on behalf of Council:

Maggie Russell Chair 20 October 2023

Arts Council of Wales 103

The year ahead: 2023/24

Our new Strategy will be launched. It will explain our long-term vision, our wellbeing goals and the actions we need to take. The Investment Review will be the key output for 2023/24 and we will see a fundamental change in the way we fund the sector in Wales.

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Seke Chimutengwende and Adeola Dewis in conversation, Chapter (Image: Kirsten McTernan)

Our new long-term Strategy will be launched this year. Closely aligned with the goals of the Well-being of Future Generations Act, it will also link to the Welsh Government’s Programme for Government and support the development a new Culture Strategy.

Our Strategic Plan will be flexible and respond to what’s currently needed as well as being relevant to new developments and changes. This 10-year plan has our future generations in mind. To achieve this, we will be reviewing and further developing our Strategy at regular intervals throughout its 10 years. This work will be done through regular consultation and building feedback and evaluation into our operational systems. The changes and updates will be communicated through Annual Plans and Communications Strategies. Our Strategy has been shaped by the 6 principles developed during the Investment Review consultation. These principles align with the 7 wellbeing goals.

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Introducing the 6 Principles

Although we describe each one separately, all six principles are linked. Through our work, and the activities we support.

These six principles will protect, develop, and support the future of the arts in Wales. They will guide us and help us tell the story of how the arts can make a difference.

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Creativity

Art has the power to connect and help us understand each other and the world around us. Art challenges our thinking and sparks our imagination. It brings joy and hope to audiences and participants. Creativity is in everything and everyone we support.

Equality & Engagement

Everyone has the right to activities and experiences which reflect and celebrate our culture, language, landscape, and art. Arts and culture in Wales should reflect the lives of all people but many still face barriers and challenges in the arts. We want art to include all people. We will make sure that people from diverse communities are fully represented in the workforce, as leaders, decision makers, creators, visitors, participants and audience members.

Welsh Language

Everyone should have equal opportunity to access, take part, enjoy, and create art through the medium of Welsh. Our focus will be on increasing availability of Welsh language provision in the arts sector; making sure the sector places Welsh at the centre of their actions; celebrating the role of the language in a progressive, multilingual Wales; and developing new audiences for the future.

Climate Justice

We are on a vital journey to understand the role of the arts in addressing the climate change emergency. Our approach to climate justice will make sure that our actions now are socially, environmentally, and ethically sustainable for the future. Our focus will be to support the arts sector to become environmentally sustainable and adapted to climate change, and to enable the arts to play a key role in inspiring the change needed.

Develop Talent

We will create an environment to help artists develop. We will make sure that the opportunities we develop are distributed more fairly. We need to make sure that there are ways to allow people from all backgrounds to develop their creativity, skills, and leadership potential.

Transform

We want to find the best opportunities for the arts, and to learn from what’s happened in the past and to share what works best. We will be agile and confident enough to respond in a positive way to all the changes happening around us, and make sure the arts are relevant to the people of Wales.

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Our Strategy is based on the 3 Goals that reflect our original remit outlined in our Royal Charter and the wellbeing goals of the Future Generations Act.

These goals are: Develop, Connect, Promote

• Develop – develop and improve the knowledge, understanding and sustainable practice of the arts.

• Connect – make connections to improve the opportunity for the people of Wales to experience and enjoy the arts.

• Promote – collaborate with partners to promote a Wales of vibrant culture and thriving Welsh Language

Our Operation Plan for 2023/24 has been developed under this Framework and outlines in detail how we intend to use our grant-in-aid and National Lottery funds to support this strategy.

Investment Review

After an extensive training and consultation period, the application process for the Investment Review closed on 31 March 2023.

The assessment of applications by Arts Council officers and Associates will occur from April 2023 until August 2023.

In September 2023 Council will take ‘in principle’ decisions on its future funding relationships and announce the indicative outcome of the Investment Review by the end of that month. Unsuccessful applicants will have the to right to appeal. By the end of December 2023, following conclusion of the appeals process, Council will publish confirmation of funding decisions.

The new funding arrangements will commence in April 2024.

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Financial Statements General Activities

Arts Council of Wales 109

Statement of the Accounting Officer’s responsibilities

Under Article 11 of the Royal Charter dated 30 March 1994 (as amended) the Council is required to prepare for each financial year a statement of accounts in the form and on the basis determined by Welsh Ministers. The accounts are prepared on an accruals basis and must give a true and fair view of the state of affairs of the Council and of its income and expenditure, Balance Sheet and cash flows for the financial year.

In preparing the accounts, the Accounting Officer is required to comply with the accounting principles and disclosure requirements of the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the U K and Republic of Ireland (F R S 102) issued on 16 July 2014 (“the S O R P”) and, to the extent that it Government clarifies or builds on the requirements of the S O R P, the Financial Reporting Manual and in particular to:

• observe the Accounts Direction issued by Welsh Ministers, including the relevant accounting and disclosure requirements, and apply suitable accounting policies on a consistent basis;

• make judgements and estimates on a reasonable basis;

• state whether applicable accounting standards as set out in the S O R P and the Government Financial Reporting Manual have been followed, and disclose and explain any material departures in the financial statements;

• prepare the financial statements on a going concern basis; and

• confirm that the Report and Financial Statements as a whole is fair, balanced and understandable and take personal responsibility for the Report and Financial Statements and the judgements required for determining that it is fair, balanced and understandable.

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The Principal Accounting Officer for the Welsh Government has designated the Chief Executive as the Accounting Officer of the Council. The responsibilities of an Accounting Officer, including responsibility for the propriety and regularity of the public finances for which the Accounting Officer is answerable, for keeping proper records and for safeguarding the Council’s assets, are set out in Managing Welsh Public Money published by the Welsh Government.

As the Accounting Officer, I have taken all the steps that I ought to have taken to make myself aware of any relevant audit information and to establish that the Council’s auditor is aware of that information. So far as I am aware, there is no relevant audit information of which the auditors are unaware.

Dafydd Rhys Accounting Officer 20 October 2023

Endorsed on behalf of Council:

Maggie Russell Chair 20 October 2023

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The Certificate and Report of the Auditor General for Wales to the Trustees of the Arts Council of Wales

Opinion on financial statements

I certify that I have audited the financial statements of the Arts Council of Wales General Activities Account for the year ended 31 March 2023 under Article 11 of the Arts Council of Wales’ Royal Charter.

The financial statements comprise the Statement of Financial Activities, Balance Sheet, Statement of Cash Flows and related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the U K and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In my opinion, in all material aspects the financial statements:

• give a true and fair view of the state of the Arts Council of Wales’ affairs as at 31 March 2023 and of its net income for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice;

• have been properly prepared in accordance with Welsh Ministers’ directions issued under Article 11 of the Arts Council of Wales’ Royal Charter.

Opinion on regularity

In my opinion, in all material respects, the income and expenditure recorded in the financial statements have been applied to the purposes intended by the Senedd and the financial transactions recorded in the financial statements conform to the authorities which govern them.

Basis for opinions

I conducted my audit in accordance with applicable law and International Standards on Auditing in the U K (I S As (U K)) and Practice Note 10 ‘Audit of Financial Statements of Public Sector Entities in the United Kingdom’. My responsibilities under those standards are further described in the auditor’s responsibilities for the audit of the financial statements section of my certificate.

Annual Report 2022-23 | 112

My staff and I are independent of the body in accordance with the ethical requirements that are relevant to my audit of the financial statements in the U K including the Financial Reporting Council’s Ethical Standard, and I have fulfilled my other ethical responsibilities in accordance with these requirements. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinions.

Conclusions relating to going concern

In auditing the financial statements, I have concluded that the use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work I have performed, I have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the body’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from when the financial statements are authorised for issue.

My responsibilities and the responsibilities of the Accounting Officer with respect to going concern are described in the relevant sections of this certificate.

Other information

The other information comprises the information included in the Annual Report but does not include the financial statements nor my auditor’s report thereon. The Accounting Officer is responsible for the other information. My opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in my report, I do not express any form of assurance conclusion thereon.

My responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If I identify such material inconsistencies or apparent material misstatements, I am required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work I have performed, I conclude that there is a material misstatement of this other information, I am required to report that fact.

I have nothing to report in this regard.

Arts Council of Wales 113

Opinion on other matters

The Statement of Recommended Practice sets out the requirements for other information, however neither it nor legislation, nor the directions issued to the Arts Council of Wales set out the content and form of the Governance Statement or Remuneration and Staff Report presented with the financial statements. Therefore, I am not able to confirm that the Governance Statement or Remuneration and Staff Report issued with financial statements have been prepared in accordance with guidance.

In my opinion, based on the work undertaken in the course of my audit, the information given in the other information to be issued with financial statements is consistent with the financial statements.

Although there are no legislative requirements for a Remuneration and Staff Report, the Arts Council of Wales has prepared such a report and, in my opinion, that part ordinarily required to be audited has been properly prepared in accordance with HM Treasury guidance.

In my opinion, based on the work undertaken in the course of my audit, the information given in the ‘Performance Report and Operational Review’ and the Accountability Report (excluding the Governance Statement and the Remuneration and Staff Report), for the financial year for which the financial statements are prepared, is consistent with the financial statements, and the Performance Report and Operational Review and the Accountability Report have been prepared in accordance with the applicable legal requirements.

Matters on which I report by exception

In the light of the knowledge and understanding of the body and its environment obtained in the course of the audit, I have not identified material misstatements in the Performance Report and Operational Review, Accountability Report or the Governance Statement.

I have nothing to report in respect of the following matters which I report to you if, in my opinion:

• I have not received all the information and explanations I require for my audit;

• sufficient accounting records have not been kept or returns adequate for my audit have not been received from branches not visited by my team;

• the financial statements are not in agreement with the accounting records and returns; or

• information specified by Welsh Ministers regarding remuneration and other transactions is not disclosed.

Annual Report 2022-23 | 114

Responsibilities of the Accounting Officer for the financial statements

As explained more fully in the Statement of the Accounting Officer’s Responsibilities, the Accounting Officer is responsible for:

• maintaining proper accounting records;

• the preparation of the financial statements and Annual Report in accordance with the applicable financial reporting framework and for being satisfied that they give a true and fair view;

• ensuring the regularity of financial transactions;

• internal controls as the Accounting Officer determines is necessary to enable the preparation of financial statements to be free from material misstatement, whether due to fraud or error; and

• assessing the body’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Accounting Officer anticipates that the services provided by the body will not continue to be provided in the future.

Auditor’s responsibilities for the audit of the financial statements

My responsibility is to audit, certify and report on the financial statements in accordance with the Arts Council of Wales’ Royal Charter.

My objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes my opinion.

Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. I design procedures in line with my responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud.

Arts Council of Wales 115

My procedures included the following:

• enquiring of management, internal audit and those charged with governance, including obtaining and reviewing supporting documentation relating to the Arts Council of Wales’ policies and procedures concerned with:

• › identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance;

• › detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; and

• › the internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations;

• considering as an audit team how and where fraud might occur in the financial statements and any potential indicators of fraud. As part of this discussion, I identified potential for fraud in the following areas: revenue recognition, expenditure recognition and posting of unusual journals;

• obtaining an understanding of the Arts Council of Wales’ framework of authority as well as other legal and regulatory frameworks in which it operates, focusing on those laws and regulations that had a direct effect on the financial statements or that had a fundamental effect on the operations of the Arts Council of Wales;

• obtaining an understanding of related party relationships.

In addition to the above, my procedures to respond to identified risks included the following:

• reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with relevant laws and regulations discussed above;

• enquiring of management about actual and potential litigation and claims;

• reading minutes of meetings of those charged with governance;

• in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

Annual Report 2022-23 | 116

I also communicated relevant identified laws and regulations and potential fraud risks to all the audit team and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

The extent to which my procedures are capable of detecting irregularities, including fraud, is affected by the inherent difficulty in detecting irregularities, the effectiveness of the Arts Council of Wales’ controls, and the nature, timing and extent of the audit procedures performed.

A further description of the auditor’s responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website www.frc.org.uk/ auditorsresponsibilities. This description forms part of my auditor’s report.

Other auditor’s responsibilities

I am required to obtain evidence sufficient to give reasonable assurance that the expenditure and income recorded in the financial statements have been applied to the purposes intended by the Senedd and the financial transactions recorded in the financial statements conform to the authorities which govern them.

I communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that I identify during my audit.

Report

I have no observations to make on these financial statements.

Adrian Crompton	1 Capital Quarter
Auditor General for Wales	Tyndall Street
	Cardiff
20 October 2023	C F10 4BZ

The maintenance and integrity of the Arts Council of Wales website is the responsibility of the Accounting Officer; the work carried out by auditors does not involve consideration of these matters and accordingly auditors accept no responsibility for any changes that may have occurred to the financial statements since they were initially presented on the website.

Arts Council of Wales 117

The Arts Council of Wales

General Activities Account Statement of Financial Activities

for the year ended 31 March 2023

INCOME Note Donations: Grant-in-aid from the Welsh Government Other grants and donations 3 Income from charitable activities: Services and sponsorship 4 Investment income: Bank interest Other income 5 Total income EXPENDI TURE Charitable activities 6 Governance costs 8 Bank interest surrendered to Welsh Consolidated Fund Total expenditure Net income/(expenditure) Gross transfers between funds 13 Net movement in funds Reconciliation of funds Fund balances brought forward 13 Total funds carried forward	Unrestricted funds £’000	Restricted funds £’000	2022/23 Total £’000	2021/22 Total £’000 31,300 16,610
	32,591	300	32,891
	12	28,129	28,141
	32,603	28,429	61,032	47,910 64 0 26
	151	-	151
	8	10	18
	15	-	15
	32,777	28,439	61,216	48,000
				47,970 77 -
	31,337	29,554	60,891
	78	-	78
	8	-	8
	31,423	29,554	60,977	48,047
				(47) -
	1,354	(1,115)	239
	(918)	918	-
	436	(197)	239	(47) 2,466
	666	1,753	2,419
	1,102	1,556	2,658	2,419

There are no gains or losses other than those shown above.

There are no discontinued activities and there have been no acquisitions during the year. The notes on pages 121 to 146 form part of these financial statements

Annual Report 2022-23 | 118

The Arts Council of Wales

General Activities Account Balance Sheet

as at 31 March 2023

Fixed assets Note Intangible fxed assets 9a Tangible fxed assets 9b Total fxed assets Non-current assets Debtors 10a Current assets Debtors 10b Cash and cash equivalents Total current assets Liabilities:falling due within one year Creditors 11a Net current assets Total assets less current liabilities Creditors:falling due after more than one year Creditors 11b Net assets The funds of the charity Unrestricted funds 13 Restricted funds 13	31 March 2023 £’000 4 130 134 8,570 16,768 1,491 18,259 (15,534) (15,534) 2,725 11,429 (8,771) 2,658 1,102 1,556 2,658	31 March 2023 £’000 4 130 134 8,570 16,768 1,491 18,259 (15,534) (15,534) 2,725 11,429 (8,771) 2,658 1,102 1,556 2,658	31 March 2022 £’000 0 67 67 - 2,762 1,525 4,287 (1,905) (1,905) 2,382 2,449 (30) 2,419 666 1,753 2,419	31 March 2022 £’000 0 67 67 - 2,762 1,525 4,287 (1,905) (1,905) 2,382 2,449 (30) 2,419 666 1,753 2,419
		134		67
		8,570 2,725		- 2,382
	18,259		4,287
	(15,534)		(1,905)
	(15,534)		(1,905)
		11,429 (8,771)		2,449 (30)
		2,658		2,419
		1,102 1,556		666 1,753
		2,658		2,419

The notes on pages 121 to 146 form part of these financial statements

The financial statements were approved by the Arts Council of Wales and signed on its behalf by

Dafydd Rhys Accounting Officer 20 October 2023

Maggie Russell Chair 20 October 2023

Arts Council of Wales 119

The Arts Council of Wales

General Activities Account Statement of Cash Flows

for the year ended 31 March 2023

Note Net cash infow from operating activities 15a Net cash infow from investing activities 15b Net cash outfow associated with capital assets 15c Change in cash and cash equivalents in the year Cash and cash equivalents brought forward Cash and cash equivalents carried forward	2022/23 £’000 55 10 (99) (34) 1,525 1,491	2021/22 £’000 163 0 (54) 109 1,416 1,525

The notes on pages 121 to 146 form part of these financial statements.

Annual Report 2022-23 | 120

The Arts Council of Wales

General Activities Account Notes forming part of the financial statements

for the year ended 31 March 2023

1. Accounting policies

a. Basis of preparation

These financial statements are prepared on a going concern basis and under the historical cost convention modified to include certain fixed assets at their value to the Council on a current cost basis. They have been prepared in accordance with the Accounts Direction issued by Welsh Ministers and meet the requirements of the Charities Acts 2006, 2011 and 2016, of the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their account in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (F R S 102) issued on 16 July 2014 (“the SORP”) and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102). In addition to compliance with the S O R P regard is given to the requirements of the Government Financial Reporting Manual (F R e M) issued by H M Treasury to the extent that it clarifies or builds on the requirements of the S O R P. A summary of the principal accounting policies which have been applied consistently are set out below.

Impact of standards not yet effective

The application of any new or amended accounting standards is governed by their adoption by the Charity Commission and FReM. The Council applies changes to standards when they become effective. There are no known material impacts from accounting standard changes that have been issued and are not yet effective on the financial statements in the period of initial application.

b. Income

Grant-in-aid from the Welsh Government is recognised in the Statement of Financial Activities on a receivable basis.

All other income is recognised when the Council has entitlement to the funds, any associated performance conditions have been met, it is probable that the income will be received, and the amount can be measured reliably. Capital grants receivable are treated as income.

No income is recorded net of expenditure in the Statement of Financial Activities.

Arts Council of Wales 121

c. Lottery distribution

These financial statements do not cover the Council’s lottery distribution function for which separate financial statements have been prepared in accordance with directions issued by the Secretary of State for Culture, Media & Sport.

The Council incurs costs which support both its general activities and lottery distribution functions. In accordance its Financial Directions the Council apportions indirect costs properly between these two areas of activity with reference to the time spent on, or the consumption of the relevant resources by, the respective activities.

The apportionments are usually reviewed every two years and whenever there is a significant change to the staff structure or the programmes of activity.

d. Expenditure

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with use of the resources.

e. Grants awarded

Subsidy expenditure is incurred in the form of grants which are formally offered to organisations funded by the Council. Grants are offered in support of a programme of activities planned for, or to commence in, a particular financial year and in most circumstances are charged to the Statement of Financial Activities in that year.

Forward commitments made in the year relating to next year’s activity, as disclosed in note 17, are not charged to the Statement of Financial Activities. The grant-inaid to meet these commitments cannot be recognised until it is received so, in this respect, we have been unable to apply all principles of paragraph 7 of the SORP. The Trustees do not believe the inclusion of the forward commitments would provide a true and fair view of the application of the Council’s resources.

Grants unpaid at the year end are shown as creditors in the Balance Sheet. Any advance payments which have been made in respect of approved grants relating to next year’s activities are shown in the Balance Sheet as current assets.

All grants offered are listed in the annex to this Annual Report

f. Services and sponsorship

Services and sponsorship comprise the direct costs, including staff and depreciation, attributable to charitable activities.

Annual Report 2022-23 | 122

g. Allocation of operating costs

Operating costs have been allocated first between charitable activities and governance. Operating costs relating to charitable activities have been apportioned to reflect the time spent by staff in delivering direct activities and in support of their delivery. The allocation and analysis of these costs is in notes 6 and 7.

h. Governance costs

Governance costs comprise all costs involving the public accountability of the Council as a charity and its compliance with regulation and good practice. These costs are analysed in note 8.

i. Foreign currency

Revenue received and expenditure incurred in foreign currencies is converted at the exchange rate prevailing at the time of the transaction. Balances held in foreign currencies are converted at the rate prevailing at the Balance Sheet date. Transactions and balances covered by forward contracts are converted at the contract rate.

j. Recognition of liabilities

Liabilities are recognised when an obligation arises to transfer economic benefits as a result of past transactions or events.

k. Fund accounting

Restricted funds are those which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Council for particular purposes. The cost of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

Unrestricted funds are those which are available for use at the discretion of Council in furtherance of its chartered objectives and which have not been designated for other purposes.

Where support costs are allocated to restricted charitable activities a transfer is made from unrestricted funds to cover these costs.

Arts Council of Wales 123

l. Fixed assets

The Council owns two freehold properties, the Sherman Theatre and the Rubicon Dance Studio, which are let on long leases at peppercorn rents to tenants which are not controlled by the Council and with no provision for repossession by the Council. Based on the advice of external and independent chartered surveyors, the residual value of these freehold interests is considered to be negligible so these assets are held in the accounts at a nil value.

Website development costs, in accordance with F R S 102, are treated as tangible fixed assets.

Computer software licences are treated as intangible fixed assets if they cover more than one year.

Other than freehold properties all tangible and intangible fixed assets are included at historical cost less an allowance for depreciation and amortisation. The Council considers that there is no significant difference between the book and market values.

m. Amortisation and depreciation

Individual assets costing £1,000 or above are capitalised and a full year’s amortisation or depreciation is provided in the year of acquisition. Amortisation of intangible fixed assets and depreciation on tangible fixed assets is provided at rates calculated to write off the cost or valuation of each asset to its residual value on a straight line basis over its expected useful life as follows:

Computer software licences	over 3years
Leasehold improvements	over the term of the lease
Furniture,fxtures and fttings	over 10years
Equipment	over 4years
Website development costs	over 3years
Computer system	over 3years

n. Leases

The costs of operating leases are charged to the Statement of Financial Activities on a straight line basis over the life of the lease.

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o. Pensions

The Council is an admitted employer of the Arts Council Retirement Plan 1994 (ACRP) which provides defined benefits to Council employees. The costs of the Council’s contributions are charged to the Statement of Financial Activities so as to spread the cost of pensions over employees’ working lives.

The Plan is a funded, defined benefit, multi-employer scheme where the participating employers are unable to identify their shares of the underlying assets and liabilities. The scheme has therefore been accounted for as if it were a defined contribution scheme, in accordance with FRS 102. The Council has made payments to fund a deficit relating to past service. If further deficit payments are needed, following future revaluations, the Council will recognise a provision for the present value of contributions payable in accordance with the terms of any relevant funding agreement. All contributions towards the deficit are charged to the Statement of Financial Activities.

The Council also has a defined contribution scheme, The People’s Pension, as an alternative option to meet the needs of Auto Enrolment legislation. The scheme is accounted for in accordance with FRS 102.

p. Taxation

Non-recoverable Value Added Tax arising from expenditure on non-business activities is charged to the Statement of Financial Activities or capitalised as a fixed asset where applicable.

q. Financial instruments

Financial assets: Trade debtors do not carry any interest and are stated at their nominal value as reduced by appropriate allowances for estimated irrecoverable amounts. Cash and cash equivalents comprise cash in hand and cash at bank and on short term deposit on instant access terms.

Financial liabilities: Trade creditors are not interest bearing and are stated at their nominal value.

Arts Council of Wales 125

2. General activities and Lottery distribution: combined income and charitable arts expenditure

The separate Lottery distribution account shows the Council’s 2022/23 share of the proceeds from the National Lottery of £17,681,000 (2021/22: £18,078,000). The combined total income for both general and Lottery activities for 2022/23 was £79,562,000 (2021/22: £66,242,000). The combined total direct charitable arts expenditure for 2022/23 was £78,113,000 (2021/22: £70,563,000).

3. Income

Donations: Other grants and donations

	Unrestricted funds £’000	Restricted funds £’000 2022/23 Total £’000	Restricted funds £’000 2022/23 Total £’000	2021/22 Total £’000
_Creative Learning through the Arts_Programme (note 18):
Welsh Governmentgrant	-	1,000 1,000		978
Arts Council of Wales Lottery grant	-	1,000 1,000		750
Other income	-	22 22		-
Prioryeargrants no longer required or repaid	12	- 12		138
Welsh Government capitalgrants for theatres	-	24,100 24,100		-
Welsh Government contribution for other activities	-	1,816 1,816		1,816
Welsh Government Cultural RecoveryFunding	-	- -		12,697
Grants to Wales Arts International	-	72 72		83
National Centre for LearningWelsh	-	50 50		-
The Eirian Llwyd Trust	-	4 4		-
Arts Council England (for Hynt)	-	- -		83
Natural Resources Wales (for Creative Nature programme)	-	65 65		65
	12	28,129	28,141	16,610

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4. Income from charitable activities –

Services and sponsorship

Services and sponsorship
	Unrestricted funds £’000	Restricted funds £’000 2022/23 Total £’000		2021/22 Total £’000
_Night Out_scheme: – contributions from venues/promoters	116	- 116		24
Collectorplan– gallery fees	29	- 29		36
Other income	6	- 6		4
	151	-	151	64

5. Other income

Contribution from the Lottery Distribution account: for use of fxed assets	Unrestricted funds £’000	Restricted funds £’000 2022/23 Total £’000	Restricted funds £’000 2022/23 Total £’000	2021/22 Total £’000
	15	-	15	26

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6. Expenditure – Charitable activities

	Direct activities £’000	Grant1 funding £’000	Support2 costs £’000	2022/23 Total £’000	2021/22 Total £’000
Grant makingand arts development	1,222	53,293	1,894	56,409	45,223
Creative Learning through the Arts Programme(note 18)	1,005	1,209	-	2,214	1,219
Arts strategy	573	-	20	593	448
International	905	-	31	936	607
Services:Night Out&Collectorplan	489	-	17	506	284
Advocacyand research	225	-	8	233	189
	4,419	54,502	1,970	60,891	47,970
From unrestricted funds				31,337	31,128
From restricted funds				29,554	16,842
				60,891	47,970

1Grant funding	To institutions £’000	To individuals £’000 2022/23 Total £’000	To individuals £’000 2022/23 Total £’000	2021/22 Total £’000
From unrestricted funds
Arts Portfolio Wales	27,184	- 27,184		26,782
Strategic awards	297	155 452		782
From restricted funds
Arts Portfolio Wales	300	- 300		300
Creative Learning through the Arts Programme	1,209	- 1,209		263
Strategic awards - capital grant for redevelopment of Theatr Clwyd	23,500	- 23,500		-
Strategic awards - capital grants for theatres	600	- 600		-
Strategic awards - other	1,189	52 1,241		1,602
Memorial awards	-	16 16		-
Covid-19 support	-	- -		12,934
	54,279	223	54,502	42,663

All grants are listed in the annex to this Annual Report.

2Support costs	Gross costs £’000	Deduct Recharges to Lottery Distribution £’000 2022/23 Net charge to General Activities £’000	Deduct Recharges to Lottery Distribution £’000 2022/23 Net charge to General Activities £’000	2021/22 Net charge to General Activities £’000
Staff and related costs	2,850	1,434 1,416		1,339
Pensions	116	57 59		-
Infrastructure	589	287 302		311
Offce runningcosts	14	7 7		9
Professional fees andpromotion	204	124 80		76
Irrecoverable VAT	146	71 75		65
Amortisation and depreciation	31	- 31		54
	3,950	1,980	1,970	1,914

Annual Report 2022-23 | 128

7. Staff costs

a. Total staff costs consist of:	Permanently employed £’000	Other £’000	Gross costs £’000	Deduct Recharges to Lottery Distribution £’000	2022/23 Net charge to General Activities £’000	2021/22 Net charge to General Activities £’000
Wages and salaries	3,056	799	3,855	1,060	2,795	2,509
Social securitycosts	347	86	433	119	314	263
Otherpension costs	576	119	695	196	499	465
ApprenticeshipLevy	5	-	5	-	5	3
Agencycosts	-	4	4	2	2	-
	3,984	1,008	4,992	1,377	3,615	3,240
Staff costs are incorporated in the fnancial statements as follows:
Charged to Direct activities(note 6)			2,243	-	2,243	1,894
Charged to Support costs(note 6)			2,701	1,361	1,340	1,313
Charged to Governance(note 8)			48	16	32	33
			4,992	1,377	3,615	3,240

The average number of staff (full time equivalents) employed duringtheyear was:	Permanently employed	Other	Across the whole Council	On Lottery Distribution activities	2022/23 On General Activities	2021/22 On General Activities
On charitable activities:
directlycharged	9	11	20	-	20	19
recharged	29	3	32	-	32	29
In support of our charitable activities	31	3	34	25	9	9
	69	17	86 25		61	57

Staff composition at 31 March (full time equivalents – whole Council)	2023	2023	2023	2022	2022	2022
	Male	Female	Total	Male	Female	Total
Senior LeadershipTeam	2	3	5	2	2	4
Portfolio Managers/Heads of Department	8	9	17	7	8	15
Senior Offcers	13	22	35	13	20	33
Offcers	3	9	12	2	9	11
Team Co-ordinators/Personal Assistants	2	16	18	2	16	18
	28	59	87	26	55	81
	32%	68%		32%	68%

Arts Council of Wales 129

Emoluments by bands 2022/23 Other than members of the Senior Leadership Team listed at note 7b, the number of employees (whole Council) whose remuneration for the year, excluding employer’s pension contributions, exceeded £60,000 was as follows: £60,000 to £69,000 1 2023 The range of annual remuneration (full time equivalents) at 31 March was (whole Council): £25,026 to £101,830 The Chief Executive is the highest paid member of staff. During the year the Chief Executive’s remuneration did not change(2021/22: no change). Staff as a whole received a pay award of 4%(2021/22: increase 2.75%). The annual remuneration (full time equivalents) of employees and the ratios between each of those and the pay of the Chief Executive at 31 March were (whole Council): 25th percentile Median (50th) percentile 75th percentile £31,348 1:3.2 £45,582 1:2.2 £45,582 1:2.2 Annual remuneration comprises salary only. No benefts were paid and there was no performance-related pay.	2021/22
	1
	2022
	£21,064 to £101,830
	£30,142 1:3.4 £43,829 1:2.3 £43,829 1:2.3

• b. The Chief Executive and Directors – the Senior Leadership Team – are responsible for directing the Council’s activities. Their actual emoluments and pension benefits were as shown in the following tables.

The amount of pension benefits for the year which contributes to the single total remuneration figures is calculated in a similar way to the method used to derive pension values for tax purposes, and is based on information received from the actuary of the Arts Council Retirement Plan 1994.

The value of pension benefits is calculated as follows:

(real increase in pension* x 20) + (real increase in any lump sum) – (contributions made by member)

*excluding increases due to inflation or any increase or decrease due to a transfer of pension rights

This is not an amount which has been paid to an individual by the Council during the year, it is a calculation which uses information from the pension benefit table. These figures can be influenced by many factors, e.g. changes in a person’s salary, whether or not they choose to make additional contributions to the pension scheme from their pay, and other valuation factors affecting the pension scheme as a whole.

Annual Report 2022-23 | 130

The single total remuneration figures of the Senior Leadership Team:

2022/23 £’000	2022/23 £’000	2022/23 £’000	2021/22 £’000	2021/22 £’000	2021/22 £’000
Name Position Emoluments band	Pension benefts	Single total remuneration	Emoluments band	Pension benefts	Single total remuneration
Dafydd Rhys Chief Executive from 17 October 2022 45-50 Fullyear equivalent 100-105	11	55-60	N/A	N/A	N/A
Michael Elliott1 Interim Chief Executive from 7 March 2022 to 1 November 2022 65-70 Full year equivalent 100-105	-	65-70	5-10	-	5-10
			100-105
Siân Tomos Director of Arts Development to 5 September 2021 Chief Executive from 6 September 2021 to 19 November 2021 N/A Full year equivalent	N/A	N/A	50-55	55	105-110
			90-95
Nicholas Capaldi Chief Executive to 30 September 2021 N/A Full year equivalent	N/A	N/A	50-55	5	55-60
			100-105
Richard Nicholls2 Director of Operations 80-85	17	95-100	85-90	20	105-110
Diane Hebb2 Director of Arts Engagement 80-85	(35)	45-50	85-90	72	155-160
Rebecca Nelson2 Director of Finance and Business Services 80-85	13	90-95	85-90	25	110-115
Lleucu Siencyn Director of Arts Development from 9 May 2022 65-70 Full year equivalent 70-75	14	80-85	N/A	N/A	N/A

1 The Interim Chief Executive elected not to join a pension scheme and there was no requirement to auto-enrol him.

2 The emoluments for 2021/22 include a temporary extra responsibility allowance of £5,000-£10,000.

Arts Council of Wales 131

The pension benefits of the Senior Leadership Team:

2022/23 £’000	2022/23 £’000	2022/23 £’000	2021/22 £’000	2022/23 £’000
Name Position Real increase in pension and related lump sum at age 65	Total accrued pension at age 65 as at 31/03/23, or date of leaving if earlier, and related lumpsum	Cash Equivalent Transfer Value1 at 31/03/23	Cash Equivalent Transfer Value at 31/03/22, or date of leaving if earlier	Real increase in Cash Equivalent Transfer Value2
Dafydd Rhys Chief Executive from 17 October 2022 Pension 0-2.5 Lump sum 0-2.5	Pension 0-5 Lump sum 0-5	9	N/A	6
Richard Nicholls Director of Operations Pension 0-2.5 Lump sum 2.5-5	Pension 0-5 Lump sum 5-10	20	17	4
Diane Hebb Director of Arts Engagement Pension (2.5)-0 Lump sum (5)-(2.5)	Pension 20-25 Lump sum 70-75	390	469	(25)
Rebecca Nelson Director of Finance and Business Services Pension 0-2.5 Lump sum 0-2.5	Pension 0-5 Lump sum 10-15	28	40	1
Lleucu Siencyn Director of Arts Development from 9 May 2022 Pension 0-2.5 Lump sum 0-2.5	Pension 0-5 Lump sum 0-5	7	N/A	3

1 Cash Equivalent Transfer Values – A Cash Equivalent Transfer Value (CETV) is the actuarially assessed capitalised value of the pension scheme benefits accrued by a member at a particular point in time. The benefits valued are the member’s accrued benefits and any contingent spouse’s pension payable from the scheme. A CETV is a payment made by a pension scheme or arrangement to secure pension benefits in another pension scheme or arrangement when the member leaves a scheme and chooses to transfer the benefits accrued in their former scheme. The pension figures shown relate to the benefits that the individual has accrued as a consequence of their total membership of the pension scheme, not just their service in a senior capacity to which disclosure applies. The figures include the value of any pension benefit in another scheme or arrangement which the individual has transferred to the Arts Council Retirement Plan 1994. They also include any additional pension benefit accrued to the member as a result of their purchasing additional pension benefits at their own cost. CETVs are calculated within the guidelines and framework prescribed by the Institute and Faculty of Actuaries and do not take account of any actual or potential reduction to benefits resulting from Lifetime Allowance Tax which may be due when pension benefits are drawn.

2 Real increase in C E T V – This reflects the increase/(decrease) in CETV effectively funded by the employer. It does not include the increase in accrued pension due to inflation, contributions paid by the employee (including the value of any benefits transferred from another pension scheme or arrangement) and uses common market valuation factors for the start and end of the period.

The Chair, with the approval of the Charity Commission, is remunerated for his or her services but receives no bonus payments and is not a member of the pension scheme. Other Council and Committee Members receive no payment for their services. Council meeting costs for 2022/23 include an aggregate amount of £3,035 (2021/22: £185) reimbursed to 11 (2021/22: 1) Council members for travel and subsistence costs incurred on Council business.

Annual Report 2022-23 | 132

The total actual emoluments of the Chairs and Chief Executives were made up of:

The total actual emoluments of the Chairs and Chief Executives were made up of:
2022/23 £	2021/22 £
Chairs1
Chair(to 31 March 2023)– Phil George
Salary 25,556	48,810
Interim Chair(from 1 October 2022 to 31 March 2023)– Kate Eden
Salary 17,524	-
Chairs’ total
Salary 43,080	43,810
1 Phil George remained in offce until the end of his term on 31 March 2023. He was remunerated for his services until October 2022 when, due to his ill-health, Kate Eden was appointed Interim Chair for the remainder of the fnancialyear.
Chief Executives
Chief Executive(from 17 October 2022)– Dafydd Rhys
Salary 46,721	-
Employer’spension contribution 9,764	-
56,485	-
Former Interim Chief Executive (from 7 March 2022 to 1 November 2022)– Michael Elliott
Salary 65,643	7,413
Former Chief Executive(to 30 September 2021)– Nicholas Capaldi
Salary -	51,548
Employer’spension contribution -	10,077
-	61,625
Former Chief Executive (from 6 September to 19 November 2021) – Siân Tomos
Salary -	21,751
Employer’spension contribution -	4,546
-	26,297
Chief Executives’ total
Salary 112,364	80,712
Employer’spension contribution 9,764	14,623
122,128	95,335

66% (2021/22: 66%) of the Chairs’ and 72% (2021/22: 72%) of the Chief Executives’ emoluments are charged in these financial statements and the remainder to lottery distribution activities.

Travel and subsistence expenses incurred and defrayed whilst on Council business: 2022/23 £	2021/22 £
Chairs 593	185
Chief Executives 11,050	627

51% (2021/22: 52%) of the Chairs’ and Chief Executives’ expenses are charged in these financial statements and the remainder to lottery distribution activities.

Arts Council of Wales 133

c. Most employees are members of the Arts Council Retirement Plan 1994 (ACRP). The fund is a defined benefit scheme. It is also a multi-employer scheme so the Council is unable to identify its share of the underlying assets and liabilities. The scheme has therefore been accounted for as if it were a defined contribution scheme, in accordance with FRS 102.

An independent actuarial valuation of the ACRP normally takes place every three years. The most recent valuation, as at 31 March 2022, came into effect on 1 April 2023. It showed that the ACRP had a funding deficit relative to its statutory funding objective.

The valuation introduced new ordinary contribution rates for the Council in respect of accruing benefits. It also assumes a continuing requirement that a minimum level of payment be made each year towards the deficit, at a rate advised by the scheme actuary, until 31 March 2034. Participating employers may pay contributions at a higher rate or pay additional lump sum contributions at any time before they are due if they so wish.

On the assumption that the recommended amounts would be paid to ACRP, the actuary’s opinion was that the statutory funding objective could have been expected on 31 March 2022 to be met by the end of the period specified in the recovery plan.

The valuation was carried out for the purposes of section 179 of the Pensions Act 2004 and the key financial assumptions (net of price inflation) were:

Net discount rate prior to retirement (pre 2009 compensation)	-2.39% p.a.
Net discount rate prior to retirement (post 2009 compensation)	-0.68% p.a.
Net discount rate for pre 1997 benefts in payment (current pensioners)	1.95% p.a.
Net discount rate for pre 1997 benefts in payment (future pensioners)	1.65% p.a.
Net discount rate for post 1997 benefts in payment (current pensioners)	-0.25% p.a.
Net discount rate for post 1997 benefts in payment (future pensioners)	-0.65% p.a.
Longevity	S3PMA (for males frst life), S3PFA (for females frst life), S3DMA (for males second life) and SDFA (for females second life), in each case with future improvements in line with the CMI 2019 model, with a long term improvement rate of 1.5%/1.25% for males/females, and a core smoothing parameter of 7.5
Contingent benefts	85% (males) or 75% (females) assumed married at retirement Females are assumed to be 3 years younger

Annual Report 2022-23 | 134

Contributions by the Council and its employees were:

	Council	Council	Employees	Employees
	2022/23	2021/22 2022/23		2021/22
For all staff	20.9%	20.9%	6.0%	6.0%

In addition, the Council made a lump sum payment of £115,900 in 2022/23 and it was agreed with the actuaries that no further deficit payments would be needed until the next revaluation. The Council’s Lottery Distribution account contributed £56,550 towards the deficit payment.

From 1 April 2023 the Council’s contribution rate chaged to 19.9%. There was no change to the employees’ contribution rate.

The Council also paid 0.1% of pensionable salary in respect of each life assurance only member. From 1 April 2023 that rate changed to 0.2%.

Under Auto Enrolment legislation all eligible employees are required to join a qualifying pension scheme, unless they formally opt out. We have a defined contribution scheme, The People’s Pension, as an alternative option for employees who are not members of the ACRP. The Council contributed 5% and the employee 3% during the year. These rates may change in the future, in line with the requirements of the legislation.

8. Resources expended Governance costs

8. Resources expended Governance costs
	Gross costs £’000	Deduct Recharges to Lottery Distribution £’000	2022/23 Net charge to General Activities £’000	2021/22 Net charge to General Activities £’000
Chair’s remuneration	48	16	32	33
Auditor’s remuneration – Audit	56	26	30	26
Internal audit	25	12	13	17
Legal and consultancyfees	1	-	1	1
Council meetings,includingtravel and subsistence	4	2	2	-
	134	56	78	77

Arts Council of Wales 135

9. Fixed assets

9. Fixed assets
a. Intangible fxed assets	Computer software licences £’000
Cost at 1 April 2022	297
Additions	4
Disposals	-
Cost at 31 March 2023	301
Amortisation at 1 April 2022	297
Charge for theyear	0
Disposals	-
Amortisation at 31 March 2023	297
Net book value at 31 March 2023	4
Net book value at 1 April 2022	0

b. Tangible fxed assets	Alterations to leasehold properties £’000	Computer system, furniture, etc £’000	Website £’000	Total £’000
Cost at 1 April 2022	107	760	95	962
Additions	-	95	-	95
Disposals	-	(4)	-	(4)
Cost at 31 March 2023	107	851	95	1,053
Depreciation at 1 April 2022	107	693	95	895
Charge for theyear	-	32	-	32
Disposals	-	(4)	-	(4)
Depreciation at 31 March 2023	107	721	95	923
Net book value at 31 March 2023	0	130	0	130
Net book value at 1 April 2022	0	67	0	67

Amortisation and depreciation charged has been allocated to charitable activities within support costs (note 6).

Annual Report 2022-23 | 136

• c. Net book value at 31 March 2023 represents fixed assets used by the Council in support of its charitable activities.

The Council’s freehold properties in Cardiff, the Sherman Theatre and the Rubicon Dance Studio, are let on long leases at peppercorn rents to tenants which are not controlled by the Council and with no provisions either for reviewing the rents or repossession by the Council.

The Sherman Theatre was acquired by the Welsh Arts Council, a division of the Arts Council of Great Britain, in September 1987 at a cost of £897,000 and immediately let for a term of 125 years. At the dissolution of the Arts Council of Great Britain in March 1994 the freehold interest was transferred to the newly formed Arts Council of Wales.

The Rubicon Dance Studio was acquired by the Welsh Arts Council in February 1988 at a cost of £11,315 and subject to an existing lease for a term of 999 years commencing 1 January 1986. The freehold interest was transferred to the Arts Council of Wales in March 1994.

The most recent external and independent valuation of the Council’s freehold properties was as at 31 March 2004. It was undertaken by Elizabeth Hill, a Member of the Royal Institute of Chartered Surveyors, for and on behalf of Cooke & Arkwright, Chartered Surveyors. Because of the impact of the leases it was the surveyor’s opinion that the freehold interests had a nil or nominal value, so these assets are held in the accounts at nil value.

Council does not consider it necessary to undertake a further valuation until there is a significant reduction in the residual terms of the leases or earlier termination.

Arts Council of Wales 137

10. Debtors

10. Debtors	10. Debtors
2022/23 £’000		2021/22 £’000
a. Debtors:fallingdue after more than oneyear
Welsh Government - capital funding for redevelopment of Theatr Clwyd 8,570		-
8,570		-
b. Debtors:fallingdue within oneyear
Welsh Government –grant-in-aid 583		300
Welsh Government - capital funding for redevelopment of Theatr Clwyd 13,766		-
Welsh Government – other funds 394		148
Welsh Government – Cultural RecoveryFunding -		462
_Collectorplan_loans1 383		479
Trade debtors 119		135
Other debtors 924		812
16,169		2,336
_Deduct_Specifcprovision for doubtful debts -		-
Sub-total: Debtors 16,169		2,336
Prepayments 286		199
16,455		2,535
Due from Lotterydistribution fund for recharged costs:
Cost apportionments 313		227
	16,768	2,762

1 Collectorplan is the Council’s interest-free loan scheme, available to the general public to support the purchase of contemporary works of art and crafts from participating galleries across Wales. Loans from £50 up to £5,000 are repaid by monthly instalments over a maximum period of 1 year.

11. Creditors

Creditors
	2022/23 £’000	2021/22 £’000
Creditors: fallingdue within oneyear
Grantspayable - capital funding for redevelopment of Theatr Clwyd	13,766	-
Grantspayable - other	1,144	1,280
Taxation and social security	118	145
Trade creditors	148	141
Other creditors	109	130
Accruals and deferred income	249	209
	15,534	1,905
Creditors: fallingdue after more than oneyear
Grantspayable - capital funding for redevelopment of Theatr Clwyd	8,570	-
Grantspayable - other	201	30
	8,771	30

Annual Report 2022-23 | 138

12. Contingent liability

The Council is an admitted employer of the Arts Council Retirement Plan 1994. The Plan is a funded, defined benefit, multi-employer scheme where the participating employers are unable to identify their shares of the underlying assets and liabilities.

In the event of the withdrawal of an employer, the debt triggered under section 75 of the Pensions Act 1995 would be calculated using the solvency shortfall of the entire Plan, not the employer’s own asset share and liabilities. Also, in the event of Plan wind up, as the Plan is a “last man standing” arrangement all employers would be jointly and severally liable for the total shortfall in the Plan.

13. Statement of funds

13. Statement of funds
	At 1 April 2022 £’000	Incoming resources £’000	Resources expended £’000	Transfers £’000	At 31 March 2023 £’000
Unrestricted income funds
General fund	666	32,777	(31,423)	(918)	1,102
Total unrestricted funds	666	32,777	(31,423)	(918)	1,102
Restricted funds Income
Welsh Government for specifc arts activity	20	26,216	(27,144)	912	4
CLTA Programme	1,520	2,031	(2,214)	-	1,337
Arts Council England (for Hynt)	71	-	(31)	1	41
Eirian Llwyd memorial awards	-	4	(4)	-	-
Natural Resources Wales (for Creative Nature)	-	65	(67)	2	-
National Centre for LearningWelsh	-	50	(28)	1	23
Wales Arts International activity	49	72	(54)	2	69
	1,660	28,438	(29,542)	918	1,474
Capital
Alun Llywelyn Williams Memorial Fund(income to provide bursary for young artist)	13	-	-	-	13
Brian Ross Memorial Fund(income to provide bursary for young visual artist)	80	1	(12)	-	69
	93	1	(12)	-	82
Total restricted funds	1,753	28,439	(29,554)	918	1,556
Total funds	2,419	61,216	(60,977)	0	2,658

The Alun Llywelyn Williams and Brian Ross Memorial Funds are represented by cash at bank and are within the total of £1,491,000 shown on the Balance Sheet.

Arts Council of Wales 139

14. Analysis of net assets between funds

Fund balances at 31 March 2023 are represented by:	Unrestricted funds £’000	Restricted funds £’000	Total £’000
Fixed assets	134	-	134
Current assets	1,887	24,942	26,829
Creditors: fallingdue within oneyear	(886)	(14,648)	(15,534)
Creditors: fallingafter more than oneyear	(33)	(8,738)	(8,771)
Total net assets	1,102	1,556	2,658

15. Cash flow information

a. b. c.		2022/23 £’000	2021/22 £’000
	Cash fows from operatingactivities
	Net incoming/(outgoing) resources	239	(47)
	Bank interest received (net of surrender)	(10)	0
	Amortisation and depreciation(note 9)	32	54
	(Increase)/Decrease in debtors	(22,576)	3,576
	Increase/(Decrease) in creditors fallingdue within oneyear	13,629	(3,417)
	Increase/(Decrease) in creditors falling due after more than one year	8,741	(3)
	Net cash infow/(outfow) from operatingactivities	55	163
	Cash fows from investingactivities
	Bank interest received	18	0
	Bank interest surrendered to Welsh Consolidated Fund	(8)	0
	Net cash infow from operatingactivities	10	0
	Cash fows associated with capital assets
	Payments to acquire intangible fxed assets(note 9a)	(4)	0
	Payments to acquire tangible fxed assets (note 9b)	(95)	(54)
	Net cash infow/(outfow) associated with capital assets	(99)	(54)

Annual Report 2022-23 | 140

16. Commitments on operating leases

At 31 March 2023 the Council had the following commitments for future payments under non-cancellable operating leases:

Total due	Land and buildings	Land and buildings	Equipment	Equipment
	2023 £’000	2022 £’000	2023 £’000	2022 £’000
within oneyear	144	123	2	0
later than one year and not later than fve years	516	499	2	-
later than fveyears	106	233	-	-
	766	855	4	0

Lease payments of £155,000 have been recognised as an expense during the year (2021/22: £154,000). 51% (2021/22: 51%) of the costs are charged in these financial statements and the remainder to lottery distribution activities.

17. Forward commitments

17. Forward commitments
2023 £’000	2022 £’000
Grants
Forward funding–grants formallyoffered 27,180	27,484

Forward funding at 31 March 2023 represents allocations to Arts Portfolio Wales organisations for 2023/24.

Arts Council of Wales 141

18. Creative Learning through the Arts Programme

The Creative Learning through the Arts Programme is designed to:

• improve educational attainment

• build an education system that will directly contribute to a stronger economy, greater innovation, greater creativity, and to the cultural capital of the nation

• bring about a step change in the range and quality of opportunities given to children and young people to engage with and learn about the arts and culture

The first phase, from 2015 to 2020, was funded by a joint investment of £20 million pounds from the Welsh Government in partnership with the Arts Council of Wales, working with the regional education consortia, schools, local authorities and the wider arts and cultural sector. The Programme requires the active involvement of artists, creative professionals and arts, culture and heritage organisations working in partnership with teachers and schools.

The programme was extended for two years from 2020 to 2022 and the Welsh Government has announced a further extension for another three years to 2025.

The Council’s investment comes from Lottery funds. This, together with the Welsh Government’s contribution and all Programme expenditure, is accounted for in these financial statements. This approach has been agreed with the Council’s external auditors and the Department for Culture, Media & Sport.

	2022/23 £’000	2021/22 £’000
Income
Welsh Governmentgrant	1,000	978
Arts Council of Wales Lottery grant	1,000	750
Prioryeargrants repaid	0	12
Partnershipincome	22	-
Bank interest	10	0
	2,032	1,740
Expenditure
Lead Creative Schools	1,642	718
Arts and educationprogramme	3	20
Arts and creative learningcross-programme	14	37
Central management costs	555	444
	2,214	1,219

Annual Report 2022-23 | 142

19. Financial instruments

Financial Reporting Standard 102 requires disclosure of the role which financial instruments have had during the period in creating or changing the risks the Council faces in undertaking its functions.

Liquidity risks – In 2022/23 £59,807,000 or 98% of the Council’s income was derived from the Welsh Government (2021/22: £46,791,000 or 97%). Of the remaining income £1,000,000 or 1% was derived from the Arts Council of Wales’ Lottery Distribution account for the Creative Learning through the Arts Programme (2021/22: £750,000 or 2%) and £409,000 or 1% was derived from investment income and sundry income (2021/22: £459,000 or 1%). The Council does not consider that its general activities are exposed to any significant liquidity risk and is satisfied that future income is sufficient to meet its commitments.

Interest rate risks – Cash balances which are drawn down from the Welsh Government to pay grant commitments and operating costs are held in instant access, variable rate bank accounts which on average carried an interest rate of 0.88% in the year (2021/22: 0.02%). The effective unrestricted cash balance at the year end was £279,000 (2022: £335,000). The Council does not consider that its general activities are exposed to significant interest rate risks.

Foreign currency risk – The general activities of the Council are not exposed to any significant foreign exchange risks.

Cash flow risk – The Council is not exposed to any significant cash flow risks.

Credit risk – The Council is not exposed to any significant credit risk as the majority of debtors relate to Welsh Government income.

20. Corporation Tax

The Council is a charitable Welsh Government sponsored body and as such is exempt from Corporation Tax under Section 505 I C TA 1988.

Arts Council of Wales 143

21. Events after the reporting period

Authorisation of these financial statements for issue

The financial statements were authorised for issue by the Accounting Officer on the same date as the Auditor General for Wales certified them.

There were no material post balance sheet events up to the date on which the accounting statements were authorised by the Accounting Officer which would have meant that the accounts had to be adjusted.

22. Related party transactions

Public bodies

The Council is a Welsh Government sponsored body.

The Welsh Parliament/Welsh Government is regarded as a related party. During the year the Council had no material transactions with the Welsh Parliament/Welsh Government apart from the grant-in-aid disclosed in the Statement of Financial Activities and the restricted grants disclosed in note 3.

Individuals

Members of Council, Committees, staff or other related parties (being close family members) undertook financial transactions (listed below) with the Council during the year.

Where the individuals and/or their close family were members of the Boards of Management (or equivalent) or were senior employees of organisations offered grants or other payments by the Council in 2022/23 in all such cases, in accordance with the Council’s Code of Best Practice, the individual concerned withdrew from any meeting where there was a discussion or decision regarding funding.

Under the Council’s Code of Best Practice an interest is deemed to persist for a minimum period of one year after the individual has left the position which created the interest. This policy is reflected in the disclosures which follow.

Transactions with the Council as a Lottery distributor are recorded in the equivalent note to the separate Lottery Distribution Account.

Annual Report 2022-23 | 144

----- Start of picture text -----
Transaction Total balance
Council members
Organisation 2022/23 Total Value outstanding at
Role
(number) 2022/23 31 March 2023 [1]
£ £
Elen ap Robert
Chair National Eisteddfod of Wales Grant (1) 15,000 15,000
Director Welsh National Opera Grant (2) 4,699,135 Nil
Lhosa Daly
Employment National Trust Grant (1) 25,000 2,500
Devinda De Silva
Grant (0) Nil 6,175
Board member Dirty Protest
Invoice (3) 2,100 Nil
Board member Disability Arts Cymru Grant (2) 175,008 6,963
Employment National Theatre Wales Grant (2) 1,664,920 Nil
Andy Eagle
Grant (4) 741,337 50,000
Employment Chapter
Invoice (3) 2,401 Nil
Kate Eden
Council member Aberystwyth University Grant (3) 616,193 30,000
Ruth Fabby
Employment
Disability Arts Cymru Grant (2) 175,008 6,963
(until December 2022)
Tafsila Khan
Board member F io Grant (0) Nil 500
Panel member National Theatre Wales Grant (2) 1,664,920 Nil
Employment Wales Millennium Centre Grant (3) 3,966,792 Nil
Gwennan Mair
Drama board member National Eisteddfod of Wales Grant (1) 15,000 15,000
Employment Theatr Clwyd Grant (4) 25,368,645 22,336,617
Victoria Provis
Council member University of Wales Trinity Saint David Invoice (3) 203 Nil
Dafydd Rhys
(Transactions while Council member up to August 2022)
Employment
Aberystwyth University Grant (1) 550,686 Nil
(until August 2022)
Prue Thimbleby
Employment Swansea Bay Health Board Grant (1) 25,000 27,500
Dr Sarah Younan
Volunteer Watch Africa Cymru Grant (0) Nil 1,000
----- End of picture text -----

Arts Council of Wales 145

Capital Committee members Role	Organisation	Transaction 2022/23 (number)	Total Value 2022/23 £	Total balance outstanding at 31 March 20231 £
Jayne Woods
Council member	University of Wales Trinity Saint David	Invoice (3)	203	Nil

Senior Leadership Team members Role	Organisation	Payable Transaction 2022/23 (number)	Total Value 2022/23 £	Total balance outstanding at 31 March 20231 £
Diane Hebb
Governor	Gwernyfed High School	Grant (1)	1,000	Nil
Dafydd Rhys (Transactions while staff member from October 2022)
Former employment (until August 2022)	Aberystwyth University	Grant (2)	65,507	30,000
Lleucu Siencyn
Former employment (until April 2022)	Literature Wales	Grant (2) Invoice (4)	818,788 3,100	31,407 Nil

1 The total balance outstanding at the year-end may include amounts in respect of grants awarded in previous years but not yet paid.

Annual Report 2022-23 | 146

Financial Statements Lottery Distribution

Arts Council of Wales 147

Statement of Accounting Officer’s responsibilities

Under Section 35 of the National Lottery etc. Act 1993 (as amended) the Council is required to prepare for each financial year a statement of accounts for its Lottery distribution activities in the form and on the basis determined by the Secretary of State for Culture, Media & Sport. The accounts are prepared on an accruals basis and must give a true and fair view of the state of affairs of the Council and of its income and expenditure, Statement of Financial Position and cash flows for the financial year.

In preparing the accounts, the Accounting Officer is required to comply with the requirements of the Government Financial Reporting Manual and in particular to:

• observe the Accounts Direction issued by the Secretary of State for Culture, Media & Sport, including the relevant accounting and disclosure requirements, and apply suitable accounting policies on a consistent basis;

• make judgements and estimates on a reasonable basis;

• state whether applicable accounting standards as set out in the Government Financial Reporting Manual have been followed, and disclose and explain any material departures in the financial statements;

• prepare the financial statements on a going concern basis; and

• confirm that the Report and Financial Statements as a whole is fair, balanced and understandable and take personal responsibility for the Report and Financial Statements and the judgements required for determining that it is fair, balanced and understandable.

Annual Report 2022-23 | 148

The Principal Accounting Officer for the Welsh Government has designated the Chief Executive as the Accounting Officer of the Council. The responsibilities of an Accounting Officer, including responsibility for the propriety and regularity of the public finances for which the Accounting Officer is answerable, for keeping proper records and for safeguarding the Council’s assets, are set out in Managing Welsh Public Money published by the Welsh Government and Managing Public Money published by H M Treasury.

As the Accounting Officer, I have taken all the steps that I ought to have taken to make myself aware of any relevant audit information and to establish that the Council’s auditor is aware of that information. So far as I am aware, there is no relevant audit information of which the auditors are unaware.

Dafydd Rhys Accounting Officer 20 October 2023

Endorsed on behalf of Council:

Maggie Russell Chair 20 October 2023

Arts Council of Wales 149

The Certificate and Report of the Comptroller and Auditor General to the Houses of Parliament and the Senedd

Opinion on financial statements

I certify that I have audited the financial statements of the Arts Council of Wales Lottery Distribution Account for the year ended 31 March 2023 under the National Lottery etc Act 1993.

The financial statements comprise the Arts Council of Wales Lottery Distribution Account’s

• Statement of Financial Position as at 31 March 2023;

• Statement of Comprehensive Net Expenditure, Statement of Cash Flows and Statement of Changes in Equity for the year then ended; and

• the related notes including the significant accounting policies.

The financial reporting framework that has been applied in the preparation of the financial statements is applicable law and U K adopted International Accounting Standards.

In my opinion the financial statements:

• give a true and fair view of the state of the Arts Council of Wales Lottery Distribution Account’s affairs as at 31 March 2023 and of its net expenditure for the year then ended; and

• have been properly prepared in accordance with the National Lottery etc Act 1993 and Secretary of State directions issued thereunder.

Opinion on regularity

In my opinion, in all material respects, the income and expenditure recorded in the financial statements have been applied to the purposes intended by Parliament and the financial transactions recorded in the financial statements conform to the authorities which govern them.

Basis for opinions

I conducted my audit in accordance with International Standards on Auditing (UK) (ISAs UK), applicable law and Practice Note 10 Audit of Financial Statements and Regularity of Public Sector Bodies in the United Kingdom (2022) . My responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of my certificate.

Those standards require me and my staff to comply with the Financial Reporting Council’s Revised Ethical Standard 2019 . I am independent of the Arts Council of Wales Lottery Distribution Account in accordance with the ethical requirements that are relevant to my audit of the financial statements in the UK. My staff and I have fulfilled our other ethical responsibilities in accordance with these requirements.

I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion.

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Conclusions relating to going concern

In auditing the financial statements, I have concluded that the Arts Council of Wales Lottery Distribution Account’s use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work I have performed, I have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Arts Council of Wales Lottery Distribution Account's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

My responsibilities and the responsibilities of the Accounting Officer with respect to going concern are described in the relevant sections of this certificate.

The going concern basis of accounting for the Arts Council of Wales Lottery Distribution Account is adopted in consideration of the requirements set out in H M Treasury’s Government Financial Reporting Manual, which require entities to adopt the going concern basis of accounting in the preparation of the financial statements where it is anticipated that the services which they provide will continue into the future.

Other information

The other information comprises the information included in the Annual Report but does not include the financial statements nor my auditor’s certificate and report. The Accounting Officer is responsible for the other information.

My opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in my certificate, I do not express any form of assurance conclusion thereon.

My responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements, or my knowledge obtained in the audit, or otherwise appears to be materially misstated.

If I identify such material inconsistencies or apparent material misstatements, I am required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work I have performed, I conclude that there is a material misstatement of this other information, I am required to report that fact.

I have nothing to report in this regard.

Arts Council of Wales 151

Opinion on other matters

In my opinion the part of the Remuneration and Staff Report to be audited has been properly prepared in accordance with Secretary of State directions issued under the National Lottery etc Act 1993.

In my opinion, based on the work undertaken in the course of the audit:

• the parts of the Accountability Report subject to audit have been properly prepared in accordance with Secretary of State directions made under the National Lottery etc Act 1993; and

• the information given in the Performance Report and Operational Review and Accountability Report for the financial year for which the financial statements are prepared is consistent with the financial statements and is in accordance with the applicable legal requirements.

Matters on which I report by exception

In the light of the knowledge and understanding of the Arts Council of Wales Lottery Distribution Account and its environment obtained in the course of the audit, I have not identified material misstatements in the Performance Report and Operational Review and Accountability Report.

I have nothing to report in respect of the following matters which I report to you if, in my opinion:

• adequate accounting records have not been kept by the Arts Council of Wales Lottery Distribution Account or returns adequate for my audit have not been received from branches not visited by my staff; or

• I have not received all the information and explanations I require for my audit; or

• the financial statements and the parts of the Accountability Report subject to audit are not in agreement with the accounting records and returns; or

• certain disclosures of remuneration specified by HM Treasury’s Government Financial Reporting Manual have not been made or parts of the Remuneration and Staff Report to be audited is not in agreement with the accounting records and returns; or

• the Governance Statement does not reflect compliance with HM Treasury’s guidance.

Annual Report 2022-23 | 152

Responsibilities of the Council and Accounting Officer for the financial statements

As explained more fully in the Statement of Accounting Officer’s Responsibilities, the Arts Council of Wales and the Accounting Officer are responsible for:

• maintaining proper accounting records;

• providing the Comptroller and Auditor General (C&AG) with access to all information of which management is aware that is relevant to the preparation of the financial statements, such as records, documentation and other matters;

• providing the C&AG with additional information and explanations needed for his audit;

• providing the C&AG with unrestricted access to persons within the Arts Council of Wales from whom the auditor determines it necessary to obtain audit evidence;

• ensuring such internal controls are in place as deemed necessary to enable the preparation of financial statement to be free from material misstatement, whether due to fraud or error;

• ensuring that the financial statements give a true and fair view and are prepared in accordance with Secretary of State directions made under the National Lottery etc Act 1993;

• ensuring that the annual report, which includes the Remuneration and Staff Report, is prepared in accordance with Secretary of State directions made under the National Lottery etc Act 1993; and

• assessing the Arts Council of Wales Lottery Distribution Account’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Accounting Officer anticipates that the services provided by the Arts Council of Wales Lottery Distribution Account will not continue to be provided in the future.

Arts Council of Wales 153

Auditor’s responsibilities for the audit of the financial statements

My responsibility is to audit, certify and report on the financial statements in accordance with the National Lottery etc Act 1993.

My objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a certificate that includes my opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Extent to which the audit was considered capable of detecting non-compliance with laws and regulations including fraud

I design procedures in line with my responsibilities, outlined above, to detect material misstatements in respect of non-compliance with laws and regulations, including fraud. The extent to which my procedures are capable of detecting non-compliance with laws and regulations, including fraud, is detailed below.

Annual Report 2022-23 | 154

Identifying and assessing potential risks related to non-compliance with laws and regulations, including fraud

In identifying and assessing risks of material misstatement in respect of non-compliance with laws and regulations, including fraud, I:

• considered the nature of the sector, control environment and operational performance including the design of the Arts Council of Wales Lottery Distribution Account’s accounting policies;

• inquired of management, the Arts Council of Wales’s head of internal audit and those charged with governance, including obtaining and reviewing supporting documentation relating to the Arts Council of Wales Lottery Distribution Account’s policies and procedures on:

• › identifying, evaluating and complying with laws and regulations;

• › detecting and responding to the risks of fraud; and

› the internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations including the Arts Council of Wales Lottery Distribution Account’s controls relating to the Arts Council of Wales Lottery Distribution Account’s compliance with the National Lottery etc Act 1993, Managing Public Money and Managing Welsh Public Money;

• inquired of management, the Arts Council of Wales’s head of internal audit and those charged with governance whether:

• › they were aware of any instances of non-compliance with laws and regulations;

• › they had knowledge of any actual, suspected, or alleged fraud;

• discussed with the engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.

As a result of these procedures, I considered the opportunities and incentives that may exist within the Arts Council of Wales Lottery Distribution Account for fraud and identified the greatest potential for fraud in the following areas: posting of unusual journals, complex transactions, and bias in management estimates. In common with all audits under ISAs (UK), I am also required to perform specific procedures to respond to the risk of management override.

Arts Council of Wales 155

I obtained an understanding of the Arts Council of Wales Lottery Distribution Account’s framework of authority and other legal and regulatory frameworks in which the Arts Council of Wales Lottery Distribution Account operates. I focused on those laws and regulations that had a direct effect on material amounts and disclosures in the financial statements or that had a fundamental effect on the operations of the Arts Council of Wales Lottery Distribution Account. The key laws and regulations I considered in this context included the National Lottery etc Act 1993, Managing Public Money, Managing Welsh Public Money, employment law, pensions legislation and tax legislation.

Audit response to identified risk

To respond to the identified risks resulting from the above procedures:

• I reviewed the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described above as having direct effect on the financial statements;

• I enquired of management and the Audit & Risk Assurance Committee concerning actual and potential litigation and claims;

• I reviewed minutes of meetings of those charged with governance and the Council and internal audit reports; and

• in addressing the risk of fraud through management override of controls, I tested the appropriateness of journal entries and other adjustments; assessed whether the judgements on estimates are indicative of a potential bias; and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business.

I communicated relevant identified laws and regulations and potential risks of fraud to all engagement team members including internal specialists and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

A further description of my responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/ auditorsresponsibilities. This description forms part of my certificate.

Annual Report 2022-23 | 156

Other auditor’s responsibilities

I am required to obtain evidence sufficient to give reasonable assurance that the expenditure and income recorded in the financial statements have been applied to the purposes intended by Parliament and the financial transactions recorded in the financial statements conform to the authorities which govern them.

I communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control I identify during my audit.

Report

I have no observations to make on these financial statements.

Gareth Davies National Audit Office 157-197 Buckingham Palace Road Comptroller and Auditor General Victoria 23 October 2023 London S W1W 9S P

The maintenance and integrity of the Arts Council of Wales website is the responsibility of the Accounting Officer; the work carried out by auditors does not involve consideration of these matters and accordingly auditors accept no responsibility for any changes that may have occurred to the financial statements since they were initially presented on the website.

Arts Council of Wales 157

The Arts Council of Wales

Lottery Distribution Account Statement of Comprehensive Net Expenditure

for the year ended 31 March 2023

Notes Expenditure Management and administration: Staff costs 2a Other operating costs 2b Expenditure on the arts: Grants made Less: Lapsed and revoked grants Net grants made 7 Delegated distributors 9 Other arts awards 3 Direct costs of grant making 2c Total expenditure Income Share of proceeds from the National Lottery 4 Investment income on balances in the National Lottery Distribution Fund 4 Partnership income Interest receivable Grants recoverable Total income Total Comprehensive Expenditure for the year	2022/23 £’000 £’000 1,362 617	2022/23 £’000 £’000 1,362 617	2021/22 £’000 £’000 1,219 595	2021/22 £’000 £’000 1,219 595
	15,333 (163)	1,979	20,918 (281)	1,814
		15,170 1,864 60 128		20,637 1,885 60 11
		17,222		22,593
		19,201		24,407
		17,681 355 260 27 23		18,078 25 100 1 38
		18,346		18,242
		(855)		(6,165)

There are no discontinued activities and there have been no acquisitions during the year. There are no gains or losses other than those shown above.

The notes on pages 161 to 172 form part of these financial statements.

Annual Report 2022-23 | 158

The Arts Council of Wales

Lottery Distribution Account Statement of Financial Position

as at 31 March 2023

Notes Current assets: Financial assets: Investments – balance held in the National Lottery Distribution Fund 4 Trade and other receivables 5 Cash and cash equivalents 8 Total current assets Total assets Trade payables and other current liabilities – amounts falling due within one year: Trade and other payables 6 Other liabilities: Delegated distributors 6 Grants 6,7 Total payables and other current liabilities Non-current assets plus net current assets Trade payables and other non-current liabilities – amounts due after more than one year: Grants 7 Assets less liabilities Equity/Reserves: Net Expenditure account	31 March 2023 £’000 £’000 24,399 6 2,420 26,825 26,825 (333) (1,444) (16,875) (18,652) 8,173 (2,848) 5,325 5,325	31 March 2023 £’000 £’000 24,399 6 2,420 26,825 26,825 (333) (1,444) (16,875) (18,652) 8,173 (2,848) 5,325 5,325	31 March 2022 £’000 £’000 26,165 151 1,801 28,117 28,117 (255) (1,189) (16,078) (17,522) 10,595 (4,415) 6,180 6,180	31 March 2022 £’000 £’000 26,165 151 1,801 28,117 28,117 (255) (1,189) (16,078) (17,522) 10,595 (4,415) 6,180 6,180
	(333) (1,444) (16,875)		(255) (1,189) (16,078)
		26,825 (18,652)		28,117 (17,522)
		8,173 (2,848)		10,595 (4,415)
		5,325		6,180
		5,325		6,180

The notes on pages 161 to 172 form part of these financial statements.

The financial statements were approved by the Arts Council of Wales and signed on its behalf by

Dafydd Rhys Accounting Officer 20 October 2023

Maggie Russell Chair 20 October 2023

Arts Council of Wales 159

The Arts Council of Wales

Lottery Distribution Account Statement of Cash Flows

for the year ended 31 March 2023

Cash fows from operating activities Net expenditure Bank interest Decrease/(Increase) in the balance held in the National Lottery Distribution Fund Decrease in trade and other receivables Increase in trade and other payables and other liabilities (Decrease)/ Increase in grants payable Net cash infow/(outfow) from operating activities Cash fows from investing activities Bank interest Net cash infow from investing activities Cash and cash equivalents Net increase/(decrease) in cash and cash equivalent balances Balance at 1 April Balance at 31 March	2022/23 £’000 (855) (27) 1,766 145 333 (770)	2021/22 £’000 (6,165) (1) (4,044) - 261 9,606
	592	(343)
	27	1
	27	1
	619 1,801	(342) 2,143
	2,420	1,801

Statement of Changes in Equity

for the year ended 31 March 2023

Statement of Changes in Equity or the year ended 31 March 2023
Balance at beginning of year Net expenditure for the year Balance at end of year	2022/23 £’000 6,180 (855)	2021/22 £’000 12,345 (6,165)
	5,325	6,180

The notes on pages 161 to 172 form part of these financial statements.

Annual Report 2022-23 | 160

The Arts Council of Wales

Lottery Distribution Account Notes forming part of the financial statements

for the year ended 31 March 2023

1. Accounting policies

a. Basis of preparation

These financial statements are prepared on a going concern basis and under the historical cost convention. They have been prepared in a form directed by the Secretary of State for Culture, Media & Sport with the consent of HM Treasury, in accordance with Section 35(3) of the National Lottery etc. Act 1993, and with the consent of Welsh Ministers.

These financial statements have been prepared in compliance with International Financial Reporting Standards (IFRS) as interpreted for the public sector context within the Government Financial Reporting Manual issued by HM Treasury.

IFRS 17 is a new accounting standard that sets out the principles for the recognition, measurement, presentation and disclosure of insurance contracts. It is generally effective from 1 January 2023.

Impact of standards not yet effective

The application of any new or amended IFRS is governed by their adoption by the Government Financial Reporting Manual. The Council applies changes to standards when they become effective. There are no known material impacts from IFRS changes that have been issued and are not yet effective on the financial statements in the period of initial application.

b. Recognition of income and expenditure

All income is accounted for on an accruals basis. All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with use of the resources.

c. General activities

These financial statements do not cover the Council's general activities, funded mainly by grant-in-aid, for which separate financial statements have been prepared.

Arts Council of Wales 161

d. Grants

Grants are accounted for as expenditure in the Statement of Comprehensive Net Income/Expenditure and, until paid, as liabilities in the Statement of Financial Position if:

• i. they have been formally approved by Council, or under delegated authority; and

• ii. formal written notification (including email or other electronic communication) has been issued to the intended recipients; and

iii. the offers are free from any conditions under the Council’s control.

Grants payable within one year of the year-end are recognised in the Statement of Financial Position as current liabilities. Those payable more than one year after the Statement of Financial Position date are shown as such.

Grants which have been formally approved by Council, or under delegated authority, which do not meet the definition of liabilities are not included in expenditure in the Statement of Comprehensive Net Income/ Expenditure or as liabilities in the Statement of Financial Position but are disclosed in note 7.

e. Delegation to external partners

The Council has fully operational delegation agreements in place with a number of bodies to act as lead organisations in the delivery of grant schemes. The statutory grant decision-making function is delegated to the bodies. The terms of the external delegation are set out in formal agreements and satisfy the conditions of the Council’s Financial Directions. The obligations of the Council’s Accounting Officer are unchanged by the delegation.

Annual sums delegated by the Council to the partners are recognised as expenditure in the Statement of Comprehensive Net Income/Expenditure. Funds are drawn down by the partners to meet grant commitments as they fall due. Undrawn funds at the yearend are included in the Statement of Financial Position as liabilities. Further details are disclosed in note 9.

f. National Lottery Distribution Fund

Balances held in the National Lottery Distribution Fund remain under the stewardship of the Secretary of State for Culture, Media & Sport. However, the share of these balances attributable to the Council is as shown in the accounts at amortised cost and, at the Statement of Financial Position date, has been certified by the Secretary of State for Culture, Media & Sport as being available for distribution by the Council in respect of current and future commitments.

Annual Report 2022-23 | 162

g. Pensions

The Council is an admitted employer of the Arts Council Retirement Plan 1994. The pension scheme provides defined benefits to Council employees. The costs of the Council’s contributions are charged to the Statement of Comprehensive Net Income/Expenditure so as to spread the cost of pensions over employees’ working lives.

The Plan is a funded, defined benefit, multi-employer scheme where the participating employers are unable to identify their shares of the underlying assets and liabilities. The scheme has therefore been accounted for as if it were a defined contribution scheme, in accordance with IAS 19. The Council has made payments to fund a deficit relating to past service. If further deficit payments are needed, following future revaluations, the Council will recognise a provision for the present value of contributions payable in accordance with the terms of any relevant funding agreement. A share of all contributions towards the deficit is charged to the Statement of Comprehensive Net Income/Expenditure.

The Council also has a defined contribution scheme, The People’s Pension, as an alternative option to meet the needs of Auto Enrolment legislation. The scheme is accounted for in accordance with IAS 19.

h. Taxation

Non-recoverable Value Added Tax arising from expenditure is charged to the Statement of Comprehensive Net Income/Expenditure or capitalised as a fixed asset where applicable.

• i. Apportionment of management and administration costs from the General Activities Account

The Council incurs costs which support both its general activities and lottery distribution functions. In accordance with its Financial Directions the Council apportions indirect costs properly between these two areas of activity with reference to the time spent on, or the consumption of the relevant resources by, the respective activities.

The apportionments are usually reviewed every two years and whenever there is a significant change to the staff structure or the programmes of activity.

j. Financial instruments

Financial assets: Trade receivables and other current assets do not carry any interest and are stated at their nominal value as reduced by appropriate allowances for estimated irrecoverable amounts. Cash and cash equivalents comprise cash in hand and cash at bank and on short term deposit on instant access terms.

Financial liabilities: Trade payables and other current liabilities are not interest bearing and are stated at their nominal value.

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2. Costs in support of our operations

2. Costs in support of our operations
a. Staff costs	Permanently employed £’000	Other £’000	2022/23 Total £’000	2021/22 Total £’000
Wages and salaries charged to Lottery distribution activity	979	81	1,060	943
Social securitycosts	112	7	119	99
Otherpension costs1	245	8	253	177
Agencycosts	-	2	2	-
	1,336	98	1,434	1,219
1Including a lump sum payment of £56,550 towards the pension defcit in 2022/23(2021/22: £Nil)
Charged to Management and administration			1,362	1,219
Charged to Expenditure on the arts(note 2c)			72	-
			1,434	1,219

More detailed disclosures are contained in the Remuneration and Staff Report.

1Including a lump sum payment of £56,550 towards the pension defcit in 2022/23(2021/22: £Nil) Charged to Management and administration Charged to Expenditure on the arts(note 2c) More detailed disclosures are contained in the Remuneration and Staff Report.	1,362 72 1,434	1,219 - 1,219
b. Management and administration: Other operating costs	2022/23 £’000	2021/22 £’000
Staff related costs	73	58
Infrastructure	287	291
Offce runningcosts	7	8
Professional and consultancyfees	99	77
Lottery promotion	25	29
Irrecoverable VAT	71	67
Charge for use of fxed assets	15	26
Auditor's remuneration – Audit1	26	23
Internal audit	12	16
Council and committee meetings, includingtravel and subsistence	2	0
	617	595

1 The audit fee is for audit services and no non-audit services were provided.

Management and administration costs are apportioned between the Council’s general activities and Lottery distribution accounts with reference to the time spent on, or the consumption of, the relevant resources by the respective functions. The rates applied differ according to the expenditure heading but the average charge to Lottery activities was 49% (2021/22: 48%).

(2021/22: 48%).
c. Expenditure on the arts: Direct costs of grant making	2022/23 £’000	2021/22 £’000
Assessors’ fees	13	8
Irrecoverable VAT	3	2
Arts and Health	72	-
Men’s Football World Cup	40	-
Resilience Fund support	-	1
	128	11

Annual Report 2022-23 | 164

1. Other arts awards

3. Other arts awards	3. Other arts awards
2022/23 £’000		2021/22 £’000
_Unlimited_awards in association with Arts Council England	60	90

4. National Lottery Distribution Fund

Distributing activities are funded by allotted proceeds from the National Lottery which are held in the National Lottery Distribution Fund (NLDF). The NLDF is administered by the Department for Culture, Media and Sport. The National Lottery operator calculates the proceeds on an annual basis as set out in the National Lottery Licence. Payments are made to the NLDF each week on the basis of actual sales and prizes. The percentages of proceeds receivable into the NLDF then payable to each lottery distributing body are set out in National Lottery etc. Act 1993 sections 22 and 23 as amended by Statutory Instrument 2010 No. 2863 ‘The Apportionment of Money in the National Lottery Distribution Fund Order 2010’. The Council receives 1% of total annual proceeds receivable into the NLDF and draws down the proceeds when needed.

payable to each lottery distributing body are set out in National Lottery etc. Act 1993 sections 22 and 23 as amended by Statutory Instrument 2010 No. 2863 ‘The Apportionment of Money in the National Lottery Distribution Fund Order 2010’. The Council receives 1% of total annual proceeds receivable into the NLDF and draws down the proceeds when needed.	payable to each lottery distributing body are set out in National Lottery etc. Act 1993 sections 22 and 23 as amended by Statutory Instrument 2010 No. 2863 ‘The Apportionment of Money in the National Lottery Distribution Fund Order 2010’. The Council receives 1% of total annual proceeds receivable into the NLDF and draws down the proceeds when needed.
2022/23 £’000		2021/22 £’000
Balance held in the National LotteryDistribution Fund at 1 April 26,165		22,121
Allocation of Lottery proceeds 17,681		18,078
Investment income receivable 355		25
Drawn down in theyear (19,802)		(14,059)
Balance held in the National LotteryDistribution Fund at 31 March	24,399	26,165

The balance in the National Lottery Distribution Fund at 31 March 2032 is in accordance with the Interim Certificate issued by the Department for Culture, Media & Sport.

5. Trade and other receivables

5. Trade and other receivables
	2022/23 £’000	2021/22 £’000
Grants recoverable	6	1
Other receivables	-	150
	6	151

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6. Trade payables and other current liabilities – amounts falling due within one year

2022/23 £’000	2021/22 £’000
Trade and otherpayables:
Tradepayables 2	5
Due to the Arts Council of Wales General Activities account:
for apportioned costs1 313	227
Accruals and deferred income 18	23
Sub-total: Trade and otherpayables 333	255
Other liabilities:
Delegated distributors2 1,444	1,189
Grants(note 7) 16,875	16,078
Sub-total: Other liabilities 18,319	17,267
Total current liabilities 18,652	17,522
1The amount due to the Arts Council of Wales General Activities account is made upof:
Recharges of apportioned costs
– Staff 114	144
– Overheads 127	57
– Charge for use of assets 15	26
– Pension defcit lumpsum 57	-
313	227
2The Council has delegated Lotteryfunds (note 9) to the followingdistributors:
Undrawn funds at 31 March
– Fflm Cymru Wales (for flm) 1,425	1,152
– Literature Wales (for writers’ bursaries) 19	31
– Nesta (for specifcprojects) -	6
1,444	1,189

Annual Report 2022-23 | 166

7. Grants

7. Grants
	£’000 Capital		£’000 Revenue schemes	2022/23 £’000 Total	2021/22 £’000 Total
Payable at 1 April	9,143		11,350	20,493	10,887
Grants made in theyear		330	15,003	15,333		20,918
Amounts not taken up		(3)	(160)	(163)		(281)
Charged to Statement of Comprehensive Net Income/Expenditure	327		14,843	15,170	20,637
Grantspaid in theyear	(1,999)		(13,941)	(15,940)	(11,031)
Payable at 31 March1	7,471		12,252	19,723	20,493
Fallingdue within oneyear	5,671		11,204	16,875	16,078
Fallingdue after more than oneyear	1,800		1,048	2,848	4,415
	7,471		12,252	19,723	20,493
1Ageingofgrantspayable:
2022/23	-		-	-	16,078
2023/24	5,671		11,204	16,875	4,329
2024/25	1,800		924	2,724	86
2025/26	-		119	119	-
2026/27	-		5	5	-
7,471 12,252 Grants approved but not formally offered at 31 March which are not recognised in the Statement of Comprehensive Net Income/Expenditure and Statement of Financial Position	7,471		12,252	19,723	20,493
				10	-

8. Cash and cash equivalents

2022/23 £’000	2022/23 £’000	2021/22 £’000
The following balances at 31 March were held at: Commercial banks and cash in hand	2,420	1,801

Arts Council of Wales 167

9. Delegated Lottery distributors

The Council has fully operational delegation agreements in place with the following bodies for the distribution of Lottery funds:

	Fflm Cymru Wales for flm £’000	Nesta for Digital R&D projects £’000	B B C Cymru Wales for Horizons £’000	Literature Wales for writers’ bursaries £’000	Tŷ Cerdd for community & Welsh music £’000 2022/23 Total £’000	2021/22 Total £’000
Undrawn funds at 1 April (restated)	1,152	6	-	31	- 1,189	973
Delegated for theyear	1,437	-	174	97	156 1,864	1,885
Drawn down in theyear	2,589	6	174	128	156 3,053	2,858
	(1,164)	(6)	(174)	(109)	(156) (1,609)	(1,669)
Undrawn funds at 31 March	1,152	-	-	19	- 1,444	1,189
Grants recorded as payable by the delegated distributors at 31 March	757	-	-	67	32 856	1,162

Full lists of the grants administered by the delegated distributors during 2022/23 are included in the annexes to this Annual Report.

10. Contingent asset

Sale of Olympic Park

The National Lottery Distributors are entitled to receive a share of receipts from the sale of land on Queen Elizabeth Olympic Park in return for their contribution of an additional £675m to the funding of the London 2012 Olympic and Paralympic Games. This was announced in 2007. The arrangements are set out in a legal agreement between the Secretary of State for Culture, Media & Sport and the Greater London Authority (GLA) dated 29 March 2012 which sets out the distribution of funds between the GLA and the Lottery Distributors via the Department for Culture, Media & Sport (DCMS). Land sales are likely to take place over a lengthy period, estimated to be up to 2036/37. The GLA has advised that sales are forecast to return less than £200m with payments to the Lottery Distributors beginning in 2026/27.

11. Events after the reporting period

Authorisation of these financial statements for issue

The financial statements were authorised for issue by the Accounting Officer on the same date as the Comptroller and Auditor General certified them.

There were no material post balance sheet events up to the date on which the accounting statements were authorised by the Accounting Officer which would have meant that the accounts had to be adjusted.

Annual Report 2022-23 | 168

12. Financial instruments

International Financial Reporting Standard 7, Financial Instruments: Disclosures , requires disclosure of the role which financial instruments have had during the period in creating or changing the risks the Council’s function faces in undertaking its role.

Liquidity risks – In 2022/23 £17,681,000 or 96.4% of the Council’s Lottery distribution income was derived from the National Lottery (2021/22: £18,078,000 or 99.1%). Of the remaining income £355,000 or 1.9% was derived from investment returns from the balance held with the National Lottery Distribution Fund (2021/22: £25,000 or 0.14%) and £310,000 or 1.7% from other investment income and sundry income (2021/22: £139,000 or 0.80%). The Council does not consider that its Lottery Distribution function is exposed to any significant liquidity risk, and is satisfied that the balance within the National Lottery Distribution Fund and projected future Lottery proceeds are sufficient to meet its hard commitments.

Interest rate risks – The financial assets of the Lottery are invested in the National Lottery Distribution Fund, which invests in a narrow band of low risk assets such as government bonds and cash. The Council has no control over the investment of funds in the National Lottery Distribution Fund. Cash and cash equivalents which are drawn down from the Fund to pay grant commitments and operating costs are held in instant access, variable rate bank accounts which on average carried an interest rate of 0.88% in the year (2021/22: 0.02%). The cash and cash equivalents balance at the year end was £2,420,000 (2022: £1,801,000). The Council does not consider that its Lottery Distribution function is exposed to significant interest rate risks.

Foreign currency risk – The lottery distribution function of the Council is not exposed to any significant foreign exchange risks.

Cash flow risk – The Council is not exposed to any significant cash flow risks.

Credit risk – The Council is not exposed to any significant credit risk.

Arts Council of Wales 169

13. Related party transactions

Public bodies

The Council is a Welsh Government sponsored body.

The Welsh Parliament/Welsh Government is regarded as a related party and details of transactions with the Welsh Parliament/Welsh Government are given in the separate accounts covering the Council’s general activities.

The National Lottery Distribution Fund is administered by the Department for Culture, Media & Sport which is regarded as a related party. During the year the Council had no material transactions with them other than those shown in the Statement of Comprehensive Net Income/Expenditure.

Delegated Lottery distributors

As disclosed in note 9, Ffilm Cymru Wales, Nesta, BBC Cymru Wales, Literature Wales and Tŷ Cerdd are delegated distributors of the Council’s Lottery funding. During the year the Council had no material transactions with them other than those shown in the Statement of Comprehensive Net Income/Expenditure.

Individuals

Members of Council, Committees, staff or other related parties (being close family members) undertook financial transactions (listed below) with the Council in its role as Lottery distributor during the year.

Where the individuals and/or their close family were members of the Boards of Management (or equivalent) or were senior employees of organisations offered Lottery grants or other Lottery payments by the Council in 2022/23 in all such cases, in accordance with the Council’s Code of Best Practice, the individual concerned withdrew from any meeting where there was a discussion or decision regarding funding.

Under the Council’s Code of Best Practice an interest is deemed to persist for a minimum period of one year after the individual has left the position which created the interest. This policy is reflected in the disclosures which follow.

Financial transactions with the Council in respect of its general activities are recorded in the separate accounts covering those activities.

Annual Report 2022-23 | 170

----- Start of picture text -----
Payable Total balance
Council members Transaction
Organisation Total Value outstanding at
Role 2022/23
2022/23 31 March 2023 [1]
(number) £ £
Elen ap Robert
Chair National Eisteddfod of Wales Grant (2) 199,755 109,755
Director Welsh National Opera Grant (1) 25,000 2,500
Devinda De Silva
Board member Dirty Protest Grant (1) 4,000 65,035
Board member Disability Arts Cymru Grant (0) Nil 22,251
Employment National Theatre Wales Grant (1) 500 Nil
Andy Eagle
Employment Chapter Grant (2) 9,900 64,132
Kate Eden
Council member Aberystwyth University Grant (3) 101,625 34,237
Ruth Fabby
Employment
Disability Arts Cymru Grant (0) Nil 22,251
(until December 2022)
Board member Unlimited Invoice (1) 60,000 Nil
Tafsila Khan
Board member Fio Grant (5) 186,829 179,052
Panel board member National Theatre Wales Grant (1) 500 Nil
Grant (4) 427,362 335,272
Board member Taking Flight
Invoice (2) 500 Nil
Gwennan Mair
Drama board member National Eisteddfod of Wales Grant (2) 199,755 109,755
Employment Theatr Clwyd Grant (1) 46,193 5,026,636
Victoria Provis
Council member University of Wales Trinity Saint David Grant (4) 101,675 194,675
Dafydd Rhys (transactions while Council member up to August 2022)
Employment
Aberystwyth Arts Centre Grant (1) 80,000 16,000
(until August 2022)
Prue Thimbleby
Employment Swansea Bay Health Board Grant (3) 28,600 34,465
----- End of picture text -----

Arts Council of Wales 171

Capital Committee members Role	Organisation	Payable Transaction 2022/23 (number)	Total Value 2022/23 £	Total balance outstanding at 31 March 20231 £
Ruth Cayford
Employment	Cardiff Council (St David’s Hall)	Grant (2)	162,169	134,170
Roland Evans
Employment	Gwynedd Council	Grant (1)	19,045	19,045
Jayne Woods
Council member	University of Wales Trinity Saint David	Grant (4)	101,675	194,675
Senior Leadership Team members Role	Organisation	Payable Transaction 2022/23 (number)	Total Value 2022/23 £	Total balance outstanding at 31 March 20231 £
Dafydd Rhys(transactions while staff member from October 2022)
Former employment (until August 2022)	Aberystwyth University	Grant (2)	21,625	1,163
Lleucu Siencyn
Former employment (until April 2022)	Literature Wales	Grant (1)	5,000	Nil

1 The total balance outstanding at the year-end may include amounts in respect of grants awarded in previous years but not yet paid.

Annual Report 2022-23 | 172

Annexes

not forming part of the financial statements

Arts Council of Wales 173

General Activities – Grants 2022/23

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Core funding to Arts Portfolio Wales organisations
----- End of picture text -----

Aberystwyth Arts Centre	£550,686
Arad Goch	£355,964
Artes Mundi Prize	£151,834
Artis CommunityCymuned	£205,192
Arts Care Gofal Celf	£136,393
Arts Connection - Cyswllt Celf	£66,910
Ballet Cymru	£258,979
BBC National Orchestra of Wales	£826,199
Blackwood Miners Institute	£132,760
Canolfan Gerdd William Mathias	£82,351
Canolfan Ucheldre Centre	£77,204
Chapter	£674,591
CommunityMusic Wales	£108,085
Cwmni’r Frân Wen	£239,110
Dawns i Bawb	£87,497
DisabilityArts Cymru	£169,746
Eleni Dance	£77,499
Ffotogallery	£204,691
g39	£72,057
Galeri Caernarfon	£324,512
Glynn Vivian Art Gallery	£128,672
Hafren	£109,814
Head4Arts	£154,407
Hijinx Theatre	£159,761
Impelo	£115,549
Jukebox Collective	£172,057
Literature Wales	£761,685
Live Music Now Wales	£46,322
Llantarnam Grange Arts Centre	£87,497
Mid Wales Opera	£107,056
Mission Gallery	£97,791
MOSTYN	£399,398
Music Theatre Wales	£224,662
National Dance CompanyWales	£856,012
National Theatre Wales	£1,648,436

Annual Report 2022-23 | 174

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Core funding to Arts Portfolio Wales organisations
----- End of picture text -----

NoFit State CommunityCircus	£199,700
Oriel Davies Gallery	£229,654
Oriel Myrddin	£48,381
Peak Cymru	£79,656
Pontardawe Arts Centre	£64,850
Pontio Arts	£287,447
Rhondda Cynon Tâf CountyBorough Council	£154,767
The Riverfront Theatre and Arts Centre - Newport Live	£128,672
Rubicon Dance	£199,700
Ruthin Craft Centre	£399,398
Sherman Theatre	£1,155,459
Sinfonia Cymru	£223,524
Taliesin Arts Centre	£225,660
Tanio	£179,730
Theatr Bara Caws	£287,124
Theatr Brycheiniog	£199,700
Theatr Clwyd	£1,850,144
Theatr Felinfach	£61,763
Theatr Genedlaethol Cymru	£1,056,505
Theatr Iolo	£263,467
Theatr Mwldan	£274,889
Theatr na nÓg	£324,363
Torch Theatre Company	£459,310
trac Cymru	£82,351
TŷCerdd	£209,877
Valleys Kids	£125,585
Volcano Theatre Company	£214,678
Wales Millennium Centre	£3,930,487
Welsh National Opera	£4,652,609
Ystradgynlais Miners Welfare and CommunityHall	£42,698
Total Arts Portfolio Wales grants	£27,483,527

Arts Council of Wales 175

Cost-of-living support to Arts Portfolio Wales organisations	Cost-of-living support to Arts Portfolio Wales organisations	Cost-of-living support to Arts Portfolio Wales organisations
Aberystwyth Arts Centre			£5,507
Arad Goch			£11,035
Artes Mundi Prize			£4,707
Artis CommunityCymuned			£6,361
Arts Care Gofal Celf			£4,228
Arts Connection - Cyswllt Celf			£2,074
Ballet Cymru			£8,028
BBC National Orchestra of Wales			£8,262
Blackwood Miners Institute			£4,116
Canolfan Gerdd William Mathias			£2,553
Canolfan Ucheldre Centre			£2,393
Chapter			£6,746
CommunityMusic Wales			£3,351
Cwmni’r Frân Wen			£7,412
Dawns i Bawb			£2,712
DisabilityArts Cymru			£5,262
Eleni Dance			£2,402
Fflm Cymru Wales			£14,366
Ffotogallery			£6,345
g39			£2,234
Galeri Caernarfon			£10,060
Glynn Vivian Art Gallery			£3,989
Hafren			£3,404
Hijinx Theatre			£4,953
Impelo			£3,582
Jukebox Collective			£5,334
Live Music Now Wales			£1,436
Llantarnam Grange Arts Centre			£2,712
Mid Wales Opera			£3,319
Mission Gallery			£3,032
MOSTYN			£12,381
Music Theatre Wales			£6,965
National Dance CompanyWales			£8,560
National Theatre Wales			£16,484
National Youth Arts Wales			£11,137
NoFit State CommunityCircus			£6,191

Annual Report 2022-23 | 176

Cost-of-living support to Arts Portfolio Wales organisations	Cost-of-living support to Arts Portfolio Wales organisations	Cost-of-living support to Arts Portfolio Wales organisations
Oriel Davies Gallery			£7,119
Oriel Myrddin			£1,500
Peak Cymru			£2,469
Pontardawe Arts Centre			£2,010
Pontio Arts			£8,911
Rhondda Cynon Tâf CountyBorough Council			£4,798
The Riverfront Theatre and Arts Centre - Newport Live			£3,989
Rubicon Dance			£6,191
Ruthin Craft Centre			£12,381
Sherman Theatre			£11,555
Sinfonia Cymru			£6,929
Tanio			£5,572
Theatr Bara Caws			£8,901
Theatr Brycheiniog			£6,191
Theatr Clwyd			£18,501
Theatr Genedlaethol Cymru			£10,565
Theatr Iolo			£7,904
Theatr Mwldan			£8,522
Theatr na nÓg			£10,055
Torch Theatre Company			£14,239
trac Cymru			£2,553
TŷCerdd			£6,506
Valleys Kids			£3,893
Volcano Theatre Company			£6,655
Wales Millennium Centre			£36,305
Welsh National Opera			£46,526
Ystradgynlais Miners Welfare and CommunityHall			£1,324
Total Arts Portfolio Wales cost-of-living support			£475,697

Arts Council of Wales 177

Creative Learning through the Arts Programme

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Lead Creative Schools
----- End of picture text -----

AbbeyPrimarySchool	£4,000
Abercanaid CommunitySchool	£720
Aberdare CommunitySchool	£150
Aberdare Park PrimarySchool	£10,000
Abermule PrimarySchool	£874
Abersychan School (2 awards)	£2,000
AbertillerySecondary3-16 campus	£900
Adamsdown PrimarySchool	£1,000
Afon Tâf High School	£306
All Saints School,Gresford	£1,000
AlwayPrimarySchool	£10,000
Archdeacon Griffths CIW VA PrimarySchool	£288
BishopGore School	£1,000
BishopHedleyHigh School (2 awards)	£11,000
The Bishopof Llandaff High School	£625
BishopVaughan Catholic School (2 awards)	£2,000
Bishopston Comprehensive School	£4,000
Black Lane CountyPrimary	£950
Blaengarw PrimarySchool	£638
Blaenymaes PrimarySchool (3 awards)	£1,044
Bryn Deri Primary(2 awards)	£2,633
Bryn TegCommunityPrimarySchool	£1,000
BryncelynnogComprehensive School	£792
Brynmawr Foundation School (3 awards)	£3,000
BryntegSchool	£1,000
Builth Wells PrimarySchool	£727
Buttington Trewern CountyPrimarySchool (2 awards)	£1,500
Bwlchgwyn CP School (2 awards)	£1,535
Cadoxton PrimarySchool	£400
Caerleon Comprehensive School	£540
Caersws CommunityPrimarySchool	£540
Cantonian High School	£2,000
CaradogPrimarySchool	£10,000
Carreghofa CountyPrimarySchool (2 awards)	£10,520
Cefn Fforest Primary	£4,000
Cefneithin CP School	£10,000
Christ the KingPrimarySchool (2 awards)	£10,126
Christchurch CP School	£4,000
Clydach PrimarySchool	£900
Coed Eva PrimarySchool	£2,000

Annual Report 2022-23 | 178

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Lead Creative Schools
----- End of picture text -----

Coed Glas PrimarySchool	£2,000
Coedcae School	£200
Coedylan PrimarySchool	£2,000
ColegCymunedolyDderwen	£500
Creativity,Culture & Education	£25,000
Creunant PrimarySchool	£388
Crindau Primary(2 awards)	£3,000
Crownbridge School	£959
Cwmbran High School	£5,000
Cwmcarn PrimarySchool	£10,000
Cwmffrwdoer PrimarySchool	£10,000
DanygraigPrimarySchool (2 awards)	£1,450
Deri View PrimarySchool	£10,000
Edwardsville PrimarySchool	£1,000
Elfed High School	£945
Evenlode C.P. School	£10,000
Fairwater PrimarySchool	£1,000
Fenton CommunityPrimarySchool	£1,000
Forden Church in Wales School (2 awards)	£717
Franksbridge PrimarySchool (3 awards)	£1,695
Froncysyllte CP School	£10,000
Garth CP School	£10,000
Gelli PrimarySchool (2 awards)	£5,000
Gelliswick V.C. PrimarySchool	£10,000
Glyn Gaer PrimarySchool	£1,000
Greenhill Special School	£749
Gwernyfed High School	£1,000
Gwernymynydd CP	£10,000
Haverfordwest High School	£1,000
Hawarden Village Church School	£4,000
High Street PrimarySchool	£540
Holton PrimarySchool	£2,000
Idris Davies School 3 - 18	£1,000
The John Frost School (2 awards)	£2,792
Johnstown PrimarySchool	£234
Jubilee Park PrimarySchool (2 awards)	£11,000
Kitchener PrimarySchool (2 awards)	£2,000
Leighton CP School (2 awards)	£1,055
Lewis School Pengam	£1,000
Llanbister CP School	£2,000
Llandeilo CP School	£10,000
Llandrindod Wells Church in Wales PrimarySchool	£972
Llanfaes CommunityPrimarySchool (3 awards)	£10,753

Arts Council of Wales 179

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Lead Creative Schools
----- End of picture text -----

Llanfair Primary	£2,000
Llanfechain Church in Wales PrimarySchool (2 awards)	£10,810
LlangatwgCommunitySchool	£100
Llangedwyn School	£10,000
Llanilltud Faerdref PrimarySchool	£1,000
Llanishen High School	£589
Llanmiloe CP School	£10,000
Llansannor and LlanharryCinW PrimarySchool	£4,000
Llantwit Major School (2 awards)	£2,518
Llanwern High School	£5,500
Machen PrimarySchool	£594
Madras VA PrimarySchool (3 awards)	£2,615
The Maelor School (2 awards)	£5,000
Maesglas PrimarySchool	£10,000
MaestegComprehensive School	£1,000
Maesyrhandir CP School	£729
Maindee PrimarySchool	£2,000
Malpas Court PrimarySchool	£10,000
Milford Haven School	£990
Miskin PrimarySchool	£1,000
Model Church In Wales PrimarySchool	£1,000
MontgomeryChurch in Wales School	£700
Moorland PrimarySchool	£10,000
Morriston PrimarySchool	£4,000
Mount Street Infant and NurserySchool	£1,000
Mount Stuart PrimarySchool	£1,000
Mountain Lane CP School	£10,000
Nant Celyn PrimarySchool	£10,000
Newbridge on Wye Church in Wales School (2 awards)	£2,900
Newport High School	£360
Oak Field PrimarySchool	£4,000
Our Ladyand St Michael's R.C. PrimarySchool	£4,000
Pantside PrimarySchool	£1,000
PembreyPrimarySchool	£1,000
Pentre'r GraigPrimarySchool	£990
Penybont PrimarySchool	£445
Penyrheol PrimarySchool	£10,000
Penywaun PrimarySchool	£10,000
Peter Lea PrimarySchool	£1,000
Pil PrimarySchool	£2,000
Presteigne PrimarySchool	£684
PrioryChurch in Wales School (2 awards)	£1,872
Pwll CP School	£10,000

Annual Report 2022-23 | 180

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Lead Creative Schools
----- End of picture text -----

Queen Elizabeth High School	£1,000
QueensferryCP School	£1,000
Radnor PrimarySchool (2 awards)	£11,000
Radyr Comprehensive School (2 awards)	£1,405
Radyr PrimarySchool	£10,000
Raglan VC Church in Wales PrimarySchool	£10,000
Rhayader Church in Wales PrimarySchool	£1,000
Rhiw Syr Dafydd PrimarySchool (2 awards)	£11,000
Rhos PrimarySchool	£4,000
Rhydyfro PrimarySchool	£10,000
Ringland Primary	£275
Risca communitycomprehensive school	£540
Roath Park PrimarySchool	£2,000
The Rofft School	£1,000
RomillyPrimarySchool	£2,000
Severn PrimarySchool	£1,000
Shirenewton PrimarySchool	£621
SkettyPrimary	£10,000
Springwood PrimarySchool	£900
St Cenydd CommunitySchool	£1,000
St Christopher’s School	£900
St David’s Church in Wales	£4,000
St David's Church in Wales PrimarySchool	£315
St David’s R.C. PrimarySchool	£4,000
St Gabriel’s and Raphael’s R.C PrimarySchool	£210
St Gwladys Bargoed (2 awards)	£1,800
St Helen's RC PrimarySchool	£2,000
St Illtyd’s Catholic High School (2 awards)	£1,473
St Illtyd PrimarySchool	£500
St Joseph’s RC Cathedral School	£2,000
St Joseph’s RC High School	£2,000
St Joseph’s Roman Catholic PrimarySchool	£2,000
St Julian’s Infants School	£1,000
St Julian’s School	£1,000
St Mark’s V A School	£1,000
St Mary’s and St Patrick’s Catholic Primary(2 awards)	£5,000
St Mary's Catholic Campus,Blessed Carlo Acutis PrimarySchool	£400
St Mary’s Catholic School	£1,000
St Mary's Church in Wales PrimarySchool	£10,000
St Mary's RC School	£10,000
St Mellons Church Wales PrimarySchool	£2,000
St Michael’s	£10,000
St Michael’s (CiW) PrimarySchool	£783

Arts Council of Wales 181

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Lead Creative Schools
----- End of picture text -----

St Michael’s R.C. PrimarySchool	£4,000
St Monica’s Church in Wales PrimarySchool	£984
St Padarn’s Catholic PimarySchool	£180
St Patrick’s RC PrimarySchool	£2,000
St Peter’s PrimarySchool (3 awards)	£21,000
St PhilipEvans Catholic PrimarySchool	£2,000
SullyPrimarySchool	£750
Tir-y-berth PrimarySchool (2 awards)	£5,000
Tonnau PrimarySchool	£585
Tonyrefail CommunitySchool	£513
Torfaen Pupil Referral Unit	£10,000
Townhill CommunityPrimarySchool	£615
Tredegar Park PrimarySchool (2 awards)	£5,000
Tredegarville PrimarySchool	£2,000
Trellech PrimarySchool	£800
TreorchyComprehensive School	£350
Treowen C.P. School	£1,000
Troedyrhiw CommunityPrimarySchool	£1,000
TŷFfynnon PrimarySchool	£10,000
TŷGwyn Education Centre	£2,000
TynyWern Primary(3 awards)	£6,000
Tynewydd PrimarySchool	£2,000
Victoria PrimarySchool (2 awards)	£11,000
White Rose PrimarySchool	£1,000
Williamstown PrimarySchool	£510
Willows High School	£99
Windsor Clive PrimarySchool	£4,000
Woodlands CommunityPrimarySchool	£1,000
Woodlands High School	£1,000
Y Bont Faen Primary(2 awards)	£5,000
YGG Pontybrenin	£792
Ynysboeth Junior School	£2,000
Ynystawe PrimarySchool	£594
Ysgol Aberconwy	£2,000
Ysgol Acrefair	£2,000
Ysgol Betws	£320
Ysgol Bodhyfryd	£2,000
Ysgol BorthyGest	£580
Ysgol Botwnnog	£184
Ysgol Bro Aled	£10,000
Ysgol Bro Cinmeirch	£666
Ysgol Bro Hyddgen (3 awards)	£2,025
Ysgol Bryn Alyn	£1,000

Annual Report 2022-23 | 182

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Lead Creative Schools
----- End of picture text -----

Ysgol Bryn Gwalia (2 awards)	£11,000
Ysgol Brynaerau	£408
Ysgol Brynhafren CP School	£554
Ysgol Caer Nant	£1,000
Ysgol Calon Cymru (4 awards)	£12,720
Ysgol Calon Y Dderwen	£1,000
Ysgol Capelulo	£1,000
Ysgol Cefn Meiriadog	£1,000
Ysgol Cerrig ydrudion	£10,000
Ysgol Ciliau Parc	£435
Ysgol Craig yDeryn	£1,000
Ysgol Cwm Banwy,Ysgolyr EglwysyngNghymru	£4,000
Ysgol David Hughes	£1,000
Ysgol Dolafon	£324
Ysgol Dyffryn Conwy	£2,000
Ysgol Dyffryn Dulas Corris	£964
Ysgol Dyffryn Nantlle	£657
Ysgol Dyffryn Taf	£900
Ysgol Dyffryn Trannon	£747
Ysgol Edern	£384
Ysgol Ffordd Dyffryn	£10,000
Ysgol Friars (2 awards)	£3,000
Ysgol Gellifor	£4,000
Ysgol Gellionnen	£1,000
Ysgol Glan Morfa	£10,000
Ysgol GolwgY Cwm	£1,000
Ysgol GWR Cilgerran	£10,000
Ysgol Gyfun Aberaeron	£900
Ysgol Gyfun Cwm Rhondda	£265
Ysgol Gyfun Cwm Rhymni	£2,000
Ysgol Gyfun Emlyn (2 awards)	£1,369
Ysgol Gyfun Gwynllyw	£5,000
Ysgol Gyfun Gwyr	£198
Ysgol Gyfun Rhydywaun	£293
Ysgol Gyfun Tredegar Comprehensive School	£300
Ysgol Gyfun Ystalyfera	£135
Ysgol GymraegAberystwyth (2 awards)	£2,000
Ysgol GymraegBro Eirwg	£912
Ysgol GymraegBro Morgannwg	£405
Ysgol GymraegBryn Y Mor	£10,000
Ysgol GymraegCaerffli	£891
Ysgol GymraegCasnewydd (2 awards)	£1,900
Ysgol GymraegCoedyGof (2 awards)	£10,810

Arts Council of Wales 183

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Lead Creative Schools
----- End of picture text -----

Ysgol GymraegCwm Derwen	£4,000
Ysgol GymraegCwmbran (2 awards)	£5,000
Ysgol GymraegGlanrafon	£650
Ysgol GymraegGwaunyNant	£485
Ysgol GymraegLôn Las	£10,000
Ysgol GymraegPenalltau	£10,000
Ysgol GymraegSant Baruc	£4,000
Ysgol GymraegSant Curig	£10,000
Ysgol GymraegY Fenni	£1,000
Ysgol GymraegYstalyfera Bro Dur	£540
Ysgol GymunedyFali	£10,000
Ysgol Gynradd Beaumaris	£750
Ysgol Gynradd Bethel	£10,000
Ysgol Gynradd Carno (2 awards)	£4,900
Ysgol Gynradd GymraegAbercynon	£292
Ysgol Gynradd GymraegAberdare	£932
Ysgol Gynradd GymraegCalonyCymoedd (2 awards)	£4,371
Ysgol Gynradd GymraegLlwyncelyn (2 awards)	£2,720
Ysgol Gynradd GymraegPontardawe (2 awards)	£3,000
Ysgol Gynradd GymraegRhyd Y Grug(2 awards)	£648
Ysgol Gynradd Gymunedol Llechryd (2 awards)	£2,720
Ysgol Gynradd Llanddarog(2 awards)	£540
Ysgol Gynradd Llanilar	£10,000
Ysgol Gynradd Llanrug	£1,000
Ysgol Gynradd Rhosgadfan	£10,000
Ysgol Gynradd Y Talwrn (2 awards)	£10,417
Ysgol Hamadryad (2 awards)	£10,745
Ysgol HenryRichard	£864
Ysgol Heulfan	£1,000
Ysgol Llanbrynmair (2 awards)	£4,360
Ysgol Llandegfan	£1,000
Ysgol Llanhari	£247
Ysgol MaesyCoed	£2,000
Ysgol MaesyFelin	£4,000
Ysgol MaesyMynydd	£2,000
Ysgol Merllyn	£10,000
Ysgol Morgan Llwyd	£1,000
Ysgol Nantgwyn	£1,000
Ysgol Panteg	£1,000
Ysgol Parc Y Bont	£830
Ysgol Pen Barras	£1,000
Ysgol Pen Rhos CommunityPrimarySchool	£1,000
Ysgol PenyGarth	£10,000

Annual Report 2022-23 | 184

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Lead Creative Schools
----- End of picture text -----

Ysgol PenyGroes	£200
Ysgol PenyPil	£913
Ysgol Penderyn	£400
Ysgol Penmaes	£10,000
Ysgol Pennant	£1,000
Ysgol Penrhyn New Broughton CP (2 awards)	£1,900
Ysgol Pentreuchaf	£10,000
Ysgol Penygelli	£1,000
Ysgol Penysarn (2 awards)	£10,891
Ysgol Plas Coch	£885
Ysgol Pob Oed Caer Elen (2 awards)	£10,325
Ysgol Ponthenri	£750
Ysgol Pontrobert	£10,000
Ysgol PorthyFelin	£2,000
Ysgol ReoledigLlanfair Dyffryn Clwyd	£10,000
Ysgol Rhiw-Bechan	£10,000
Ysgol Rhos Helyg	£378
Ysgol Sant Dunawd	£10,000
Ysgol Santes Tudful	£900
Ysgol T Llew Jones	£900
Ysgol Tir Morfa (2 awards)	£1,990
Ysgol Treferthyr	£534
Ysgol Treffynnon	£1,000
Ysgol Treganna (2 awards)	£2,750
Ysgol Tudweiliog(3 awards)	£11,130
Ysgol Twm or Nant	£1,000
Ysgol Wat's Dyke	£4,000
Ysgol Waunfawr (3 awards)	£2,325
Ysgol Y Bannau (3 awards)	£11,229
Ysgol Y Castell	£900
Ysgol Y Dderi	£368
YsgolyDderwen	£10,000
YsgolyFaenol	£10,000
YsgolyFfridd	£314
YsgolyForyd (2 awards)	£4,612
YsgolyLlan (2 awards)	£1,990
Ysgol Y Mynydd Du	£10,000
YsgolyPreseli	£2,000
Ysgol Y Waen	£10,000
Ysgol-Y-GraigPrimarySchool (2 awards)	£2,000
Total Creative Learningthrough the Artsgrants	£1,219,788

Arts Council of Wales 185

Strategic awards

----- Start of picture text -----
Welsh Government strategic funding
National Youth Arts Wales £200,00
£200,000
Venice Biennale of Arts
Farah Allibhai £15,125
Phoebe Davies £15,600
Paul Eastwood £17,600
Heledd Evans £16,350
Rebecca Jagoe £15,880
Rhiannon Lowe £15,000
Cynthia MaiWa Sitei £15,000
Owain McGilvary £15,000
Cinzia Mutigli £15,000
Jennifer Taylor £15,000
£155,555
Memorial awards
Adam Charlton £3,000
Erin Donnelly £3,000
Sarah Garvey £2,500
Elena Grace £3,000
Rebecca Hardy-Griffith £1,250
Acab Shimidzu £3,000
£15,750
Welsh Government Capital awards
Flintshire County Council (for redevelopment of Theatr Clwyd) £23,500,000
Cwmni’r Frân Wen £200,000
Pontypridd YMCA £250,000
Borough Theatre Abergavenny £100,000
Tabernacl (Bethesda) £50,000
£24,100,000
Arts Development
Arts & Business Cymru £50,000
Ffilm Cymru Wales £4,000
Literature Wales £57,103
The National Trust £25,000
£136,103
----- End of picture text -----

Annual Report 2022-23 | 186

Arts Engagement
Aberystwyth Arts Centre		£60,000
Artes Mundi Prize		£60,000
Chapter		£60,000
Llantarnam Grange Arts Centre		£60,000
Oriel Myrddin		£60,000
Ways of Working		£60,000
		£360,000
Arts, Health and Wellbeing
Aneurin Bevan UniversityHealth Board		£25,000
Engage Cymru		£30,600
Hywel Dda UniversityHealth Board		£25,000
Powys TeachingHealth Board		£25,000
Swansea BayUniversityHealth Board		£25,000
WAHWN		£49,660
		£180,260
Wales Arts International
Georgina Biggs		£11,800
Gareth Bonello		£5,625
Veronica Calarco		£7,500
Cambridge Folk Festival		£6,000
Gareth Clark		£3,310
Dublin Fringe Festival		£4,900
Eisteddfod Genedlaethol Cymru		£12,381
Ffotogallery		£7,500
Fluxus Art Projects		£20,000
Focus Wales(2 awards)		£40,000
Ailsa Mair Fox		£1,000
David Garner		£400
HayFestival of Literature and the Arts		£15,000
Head4Arts		£2,674
Dylan Huw		£5,000
Chembo Liandisha		£2,875
National Dance CompanyWales		£5,700
Prestatyn and Meliden CommunityAction Group		£4,840
Sahar Saki		£1,000
AbbySohn		£1,000
Tabernacl(Bethesda)		£10,000
TŷCerdd		£15,250
Siri Wigdel		£7,500
Iola Ynyr		£5,000
Total Strategic awards Total Grants Offered		£196,255
		£25,819,620
		£54,522,935

Arts Council of Wales 187

General Activities Grants by Type

Annual Report 2022-23 | 188

What did our grants support?

Grants to support Arts Portfolio Wales: Theatres & arts centres Theatre production & presentation Opera Visual & applied arts Dance Music Arts & young people Community arts Literature Circus & carnivals Disability arts Creative Learning through the Arts Other grants: Strategic awards	Value of grants £7,178,737 13.17% £6,831,417 12.53% £4,984,327 9.14% £1,819,373 3.34% £1,767,293 3.24% £1,470,624 2.70% £1,182,904 2.17% £1,117,721 2.05% £761,685 1.40% £199,700 0.37% £169,746 0.31% £1,219,788 2.24% £25,819,620 47.36% £54,522,935	No of grants
		16 8 3 10 7 6 4 9 1 1 1 423 126
		615

Arts Council of Wales 189

National Lottery Policy Directions

The Welsh Ministers, in exercise of the powers conferred by section 26(1) of the National Lottery etc. Act 1993, and having consulted with the Arts Council of Wales pursuant to Section 26(5) of that Act, have issued the following Directions:

1. In these Directions any reference to a section is a reference to a section of the National Lottery etc. Act 1993 as amended by the National Lottery Act 1998.

2. The Arts Council of Wales shall take into account the following matters in determining the persons to whom, the purposes for which and the conditions subject to which it distributes money under section 25(1):-

Generic

• A. the need to ensure that money is distributed under section 25(1) for projects which promote the public good or charitable purposes and which are not intended primarily for public gain;

• B. the need to ensure that it considers applications which relate to the complete range of activities falling within section 22(3)(b) and in respect of which it has the power to distribute money, taking into account:

• i. its assessment of the needs of the arts and arts activities and its priorities for the time being for addressing them;

• ii. the need to ensure that all regions of Wales have access to funding;

• iii. the scope for reducing economic and social deprivation at the same time as creating benefits for the arts;

• C. the need to further the objectives of sustainable development;

• D. the need for money distributed under section 25(1) to be distributed only to projects where they are for a specific, time-limited purpose;

• E. the need:

• i. in all cases, for applicants to demonstrate the financial viability of the project for the period of the grant;

• ii. where capital funding or setting up costs are sought, for a clear business plan beyond the period of the grant, incorporating provision for associated running and maintenance costs;

• iii. in other cases, for consideration to be given to likely availability of other funding to meet any continuing costs for a reasonable period after completion of the period of the Lottery award, taking into account the size and nature of the project, and for Lottery funding to be used to assist progress towards viability beyond the period of the grant wherever possible;

Annual Report 2022-23 | 190

• F. the desirability of supporting the development of long term financial and managerial viability of organisations in the arts. In taking this into account the Arts Council shall have regard to Direction D;

• G. the need to require an element of partnership funding and/or contributions in kind, from other sources, commensurate with the reasonable ability of different kinds of application, or applicants in particular areas to obtain such support;

• H. the desirability of working with other organisations, including other distributors, where this is an effective means of delivering elements of its strategy;

• I. the need to ensure that its powers to solicit applications under section 25(2)(A) are used in connection with the pursuit of strategic objectives;

• J. the need to obtain such information as it considers necessary to make decisions on each application, including independent advice when required;

• K. the need to operate within the distinctive policy context in Wales, adding value where appropriate to Welsh Government strategies, to enable the development of opportunities for everyone to flourish within a more successful and sustainable Wales;

• L. the need to promote access to the arts for people from all sections of society;

• M. the need to promote knowledge of, and interest in, the arts by children and young people;

• N. the need to encourage new talent, innovation, and excellence, and to help develop new skills;

• O. the need to support volunteering and encourage volunteering in the arts;

• P. the need to involve the public and local communities in making policies and setting priorities;

Specific

• Q. the need to promote and support throughout Wales the cultural significance of the Welsh language and the bilingual nature of Wales, including giving effect to the principle of equality between the English and Welsh languages. This should include the addition of specific conditions on the Welsh language in grant offers, an effective monitoring and overseeing of the performance of grant recipients with regard to those conditions;

• R. the need to ensure coherent monitoring, evaluation and reporting systems that support quality service delivery, and to maintain accountability by providing an annual report on the Arts Council of Wales’ lottery funding activity to the Welsh Government. This report should include an analysis of grants made, and the distribution of these by size, type, geographical area, and art form.

Dated: 1 October 2012

Arts Council of Wales 191

Lottery Distribution – Grants 2022/23

net of offers not taken up or withdrawn

Grants to organisations

----- Start of picture text -----
Capital grants
Pontardawe Arts Centre £300,000
The Riverfront Theatre and Arts Centre - Newport Live £30,000
£330,000
Business Development – Open Lottery
Articulture £97,285
Artis Community Cymuned £10,000
Arts Active Trust £50,000
Arts & Business Cymru (2 awards) £100,000
Avant Cymru £11,050
Ballet Cymru £48,493
The British School at Rome £49,938
Cardiff M.A.D.E. C.I.C. £49,980
CARN £49,851
Chinese in Wales Association £51,960
Citrus Arts (2 awards) £51,220
Eternal Community Media £10,458
Fflamingo CIC £49,602
Forte Projects £50,000
From the Fields £49,000
Hay Festival Foundation £49,348
Humans Move £12,020
Jones the Dance £10,250
Music @ Aber £29,601
National Youth Arts Wales £8,500
Oriel Myrddin Trust £49,300
Ransack Dance Company £9,900
Rubicon Dance £34,254
Sound Progression £10,000
Tin Shed Theatre Co. £10,000
Tŷ Cerdd £45,650
£997,660
Business Development – Capacity Building
Creu Cymru £51,500
Mercator: Wales Literature Exchange £95,000
£146,500
----- End of picture text -----

Annual Report 2022-23 | 192

----- Start of picture text -----
Commissioning, Making and Presenting – Create
----- End of picture text -----

AbergavennyWritingFestival C.I.C.	£12,562
Aberjazz	£16,000
Aberystwyth Arts Centre	£80,000
Arad Goch	£115,000
Arcade Campfa	£48,396
August 012 Limited(2 awards)	£15,000
Avant Cymru	£24,609
Ayan Music Wales	£9,626
Bangor New Music Festival Society	£9,975
Bangor University	£9,963
Black RAT Productions Ltd	£26,000
Bombastic	£50,000
Bryngwran Cymunedol Ltd	£1,000
Butetown Arts and Culture Association	£10,000
Canolfan a Menter GymraegMerthyr Tudful	£1,500
CARPET Spoken Word(2 awards)	£20,000
Cathays and Central Youth and CommunityProject	£47,730
CB4 Theatre	£4,650
Change Wrexham for our Future	£10,000
Chapter Cardiff	£9,900
ChippyLane Productions	£51,600
Citrus Arts	£40,002
Clwb Ifor Bach	£2,000
The Coach	£1,000
Common Wealth(2 awards)	£38,021
Companyof Sirens(2 awards)	£30,900
Contemporancient Theatre CIC	£7,000
Cosmic Music	£8,200
Cowbridge Music Festival	£35,000
Cwmni Pendraw	£50,000
Cwmni’r Frân Wen(2 awards)	£309,500
CWRW Ltd	£1,000
DirtyProtest Theatre	£4,000
EA Productions	£10,000
Eisteddfod Genedlaethol Cymru(2 awards)	£199,755
Elysium Gallery	£94,509
Expo'r Wal Goch(2 awards)	£11,500
Familia de la Noche(2 awards)	£54,780
Fio(2 awards)	£77,262
Fishguard and West Wales International Music Festival	£50,000

Arts Council of Wales 193

----- Start of picture text -----
Commissioning, Making and Presenting – Create
----- End of picture text -----

Flossyand Boo Ltd	£46,716
Focus Wales(2 awards)	£61,000
g39	£72,500
Galerie Simpson Artists	£167,460
Grand Ambition(2 awards)	£74,556
Grass Under Foot	£9,295
Gravida Collective	£50,000
Green Man Trust Ltd	£77,989
Gŵyl Beaumaris Festival(2 awards)	£30,000
Gŵyl Crime Cymru Festival	£10,000
Haywire Theatre(2 awards)	£19,349
Yr Heliwr Nefyn	£500
Humans Move	£41,355
Hummadruz	£49,995
Impelo	£26,356
International Ceramics Festival	£30,000
Kitsch & Sync Collective	£1,000
Knockengorroch cic	£9,994
Light Ladd and Emberton	£10,000
Lighthouse Theatre Ltd	£40,000
LikelyStoryTheatre	£29,408
Literature Wales	£5,000
LlandoverySheepFestival	£10,000
Llangollen Fringe Festival	£25,000
Llangollen International Musical Eisteddfod	£83,000
Llantarnam Grange Arts Centre	£895
London Welsh Centre Trust	£2,500
Lucid	£10,000
Machynlleth ComedyFestival(tradingas Little Wander Ltd)	£10,000
Maynard Abercych	£50,000
Memorial Hall and Theatre	£48,701
Menter Caerdydd	£50,000
Menter Caerffli	£10,000
Menter Iaith Abertawe	£1,500
Menter Iaith Bro Morgannwg	£15,000
Menter Môn Cyf(2 awards)	£14,500
Mentrau Creadigol Cymru	£23,830
MercuryTheatre Wales	£45,700
Mess upthe Mess Theatre Company	£148,232
Mewn Cymeriad In Character	£48,000
Mid Wales Opera	£99,500
Narberth AFC Juniors	£3,150
National Dance CompanyWales	£10,000
National Theatre Wales	£500
Nearside Productions	£15,030

Annual Report 2022-23 | 194

----- Start of picture text -----
Commissioning, Making and Presenting – Create
----- End of picture text -----

Neuadd Dwyfor	£36,065
North Wales International Music Festival	£50,000
NOVA	£12,250
Off Ya TrolleyProductions	£3,000
operasonic cyf	£17,840
OPRA Cymru Cyf(2 awards)	£134,000
The Other Room	£46,000
Papertrail Llwybr Papur	£35,700
Parama 2	£49,650
Pontio Arts(2 awards)	£60,000
Presteigne Festival of Music and the Arts Ltd	£10,000
Race Council Cymru(3 awards)	£149,835
Ramshacklicious	£53,395
Ransack Dance Company	£100,000
The Riverfront Theatre and Arts Centre - Newport Live	£50,000
Sesiwn Fawr Dolgellau(2 awards)	£43,200
Sherman Theatre	£58,942
St. Davids Hall	£62,219
Stephens and George Charitable Trust	£10,000
Still Reeling	£71,740
Sub-Sahara AdvisoryPanel	£152,600
The Successors of the Mandingue	£104,860
SweetshopRevolution	£55,682
Tabernacl(Bethesda)Cyf(2 awards)	£48,672
tactileBOSCH Projects	£45,000
TakingFlight Theatre Company (2 awards)	£270,900
Tape CommunityMusic and Film Ltd	£145,272
Teledu Telesgopcyf	£6,000
Theatr Gwaun CommunityTrust	£9,204
Theatr Iolo	£33,500
Theatr Mwldan	£9,780
Theatr3	£33,671
Tramshed Tech	£2,322
Tredegar House Folk Festival Society	£9,850
Triongl	£49,500
Universityof Exeter	£35,035
Urban Circle Newport	£100,550
Urdd Gobaith Cymru	£1,500
Vale of Glamorgan Festival	£50,000
Voicebox	£9,931
Welsh Ballroom Community	£9,000
The Welsh Chamber Orchestra Ltd.	£50,000
Ysgol Glanaethwy	£10,000
	£5,482,116

Arts Council of Wales 195

----- Start of picture text -----
Connect & Flourish
----- End of picture text -----

Galeri Caernarfon Cyf	£50,000
Ladies of Rage Cardiff	£47,265
The Nelson Trust	£50,627
NoFit State CommunityCircus Ltd	£158,475
St. Davids Hall	£99,950
The Wallich	£136,419
	£542,736

----- Start of picture text -----
Creative Pathways – Criw Celf
----- End of picture text -----

Aberystwyth Arts Centre	£11,625
Arts Active Trust	£92,500
Cyngor Gwynedd	£19,045
Llantarnam Grange Arts Centre	£36,359
Mission Gallery	£71,100
Mostyn	£25,683
Powys CountyCouncil	£24,750
Theatr Clwyd Trust Limited	£46,193
£327,255

Equalities – Creative Steps
Butetown Arts and Culture Association	£48,400
Fio	£101,215
GrittyFilms Limited	£10,000
The Hold Up	£105,930
Laku Neg	£22,500
Papertrail Llwybr Papur	£14,850
The Successors of the Mandingue	£75,759
TakingFlight Theatre Company	£150,484
Urban Circle Newport	£223,392
Welsh Ballroom Community	£10,000
WispDance Club	£14,835
	£777,365

Annual Report 2022-23 | 196

----- Start of picture text -----
International Opportunities Fund
----- End of picture text -----

4Pi Productions(2 awards)	£9,648
Beyond the Border StorytellingFestival	£2,950
Canolfan Gerdd William Mathias Cyf	£4,985
Celtic Neighbours	£4,488
Jones the Dance	£7,050
Jukebox Collective	£5,000
Mercator: Wales Literature Exchange and Literature Across
Frontiers(Universityof Wales TrinitySaint David)	£6,675
operasonic cyf	£2,665
Re-Live	£5,860
Sound Progression	£7,500
Vertical Dance Kate Lawrence	£7,500
Ways of Working	£3,600
	£67,921

Wales in Edinburgh
Diffcult Stage	£2,000
Jukebox Collective	£12,550
TakingFlight Theatre Company	£5,978
	£20,528

Arts Council of Wales 197

----- Start of picture text -----
Widening Engagement – Open Lottery
----- End of picture text -----

Aberystwyth Arts Centre	£9,107
The Aloud Charity (2 awards)	£29,017
Ardour Academy	£42,742
Artes Mundi Prize	£104,290
Artis CommunityCymuned	£36,670
Awen Cultural Trust	£25,000
Ballet Cymru	£73,718
Celf o Gwmpas	£10,000
ClwbyBont Cyf	£9,000
ConwyCountyBorough Council	£50,000
Dance Blast	£50,000
Elysium Gallery	£49,500
Ennyn CIC	£7,180
Ffwsar	£10,000
Fio	£8,352
FlyingBridge Theatre	£50,000
Glynn Vivian Art Gallery	£50,800
GrittyFilms Limited	£30,000
It’s MyShout Ltd(2 awards)	£97,090
Jazz Promotion Network	£4,500
Jones the Dance(2 awards)	£95,444
Makers Guild in Wales	£48,055
Menter Iaith Abertawe	£37,640
Mess upthe Mess Theatre Company	£9,979
Ministryof Life Education CIC	£7,400
National Dance CompanyWales	£48,064
North East Wales Sinfonia C.I.C.	£10,000
Oasis One World Choir	£26,035
Peak Cymru	£45,000
PeopleSpeakUpLtd(2 awards)	£59,000
Pontio Arts	£47,100
Pwyllgor Lles LlangrannogWelfare Committee	£9,900
Sherman Theatre	£49,713
Small World Theatre Ltd	£39,500
Sound Progression	£50,000
Span Arts Ltd	£53,000
StudioMADE	£49,720
Swansea CityOpera	£49,750
Swansea Print Workshop	£29,600
Taliesin Arts Centre	£44,465
Tanio	£20,000
Theatr Felinfach	£8,730
Theatr3	£9,900
Y TŷCelf - The Art House Ltd CIC	£28,722
TŷPawb(2 awards)	£107,750

Annual Report 2022-23 | 198

----- Start of picture text -----
Widening Engagement – Open Lottery
----- End of picture text -----

Undegun Arts	£9,800
Urdd Gobaith Cymru	£49,428
Valleys Kids	£49,368
Venue Cymru(2 awards)	£99,700
Waunifor Art Club	£10,000
Welsh Refugee Council	£10,780
Work in Progress	£10,000
Ystradgynlais Miners Welfare and CommunityHall Trust Ltd	£51,800
	£2,022,309

----- Start of picture text -----
Widening Engagement - Sharing Together
----- End of picture text -----

64 Million Artists	£2,000
Cardiff M.A.D.E. C.I.C.	£1,993
Creative Lives CharityLtd	£2,420
Dance Collective	£2,500
Grand Ambition	£2,960
Head4Arts	£3,200
Mid Wales Opera	£2,000
Theatr Iolo	£2,000
	£19,073

Widening Engagement - Anti Racist Wales Action Plan
Galerie Simpson Artists	£60,000
	£60,000

Arts Portfolio Wales
National Youth Arts Wales	£359,260
	£359,260

Arts Council of Wales 199

----- Start of picture text -----
Arts and Health – Open Lottery
----- End of picture text -----

Aesop	£49,836
Art and Soul Tribe CIC	£49,480
Arts Care Gofal Celf	£27,000
Ballet Cymru	£12,314
Betsi Cadwaladr UniversityHealth Board	£34,361
The BodyHotel	£26,903
Breathe Creative	£50,000
Caff Isa CIC	£5,000
Canolfan Gerdd William Mathias	£42,595
Cardiff and Vale UniversityHealth Board	£49,620
Cardiff Print Workshop	£5,440
CommunityMusic Wales	£47,948
Hywel Dda UniversityHealth Board	£45,700
Mission Gallery	£43,055
Parkinson's UK Cardiff Branch	£10,000
PeopleSpeakUpLTD(2 awards)	£93,500
Re-Live	£73,000
Ruthin Craft Centre	£42,150
Theatr Cynefn	£20,000
Velindre UniversityNHS Trust	£75,000
Welsh National Opera	£25,000
	£827,902

Arts and Health – Arts & Minds Programme, with the support of the Baring Foundation
ABMU(now Swansea Bay)Arts in Health Board		£28,600
Aneurin Bevan UniversityHealth Board		£28,600
Betsi Cadwaladr UniversityHealth Board		£31,600
Cardiff and Vale UniversityHealth Board		£28,600
Cwm Taf MorgannwgUniversityHealth Board		£28,600
Hywel Dda UniversityHealth Board		£28,600
Powys TeachingHealth Board		£28,500
		£203,100
Creative Learning through the Arts Programme
Arts Council of Wales(General Activities)		£1,000,000
		£1,000,000
Creative Wales Fellowships
HayFestival of Literature and the Arts Ltd		£25,000
Total Grants to Organisations		£25,000
		£13,208,725

Annual Report 2022-23 | 200

Grants to Individuals

----- Start of picture text -----
Commissioning, Making and Presenting – Create
----- End of picture text -----

Gelsthorpe,Bob	£8,235
Iorwerth,Rhys	£1,500
Pearce Jones,Angharad	£38,000
Price,John	£1,000
Tame,Kevin	£750
Thomas,Amelia	£10,750
	£60,235

Creative Pathways – Open Lottery
Arwel,Iestyn	£10,000
Ashe,Ceri	£10,000
Ashill,Kathryn	£31,175
Awst,Manon	£29,370
Bailey,Kieran	£9,000
Barnes,Emrys	£9,954
Barratt,Anna	£1,296
Bell,Ellen	£10,000
Booth,Helen	£26,510
Bruno,Sebastian	£9,900
Buick,Adam	£37,000
Burrows,Inga	£10,000
Cardew,Tom	£10,000
Chambers,Gareth (2 awards)	£28,140
Clark,Gareth	£10,000
Cliffe,Justin	£40,620
Cooke,Ashley	£7,775
Crockford,Alun	£9,875
Cysewski,Karol	£10,000
Darby,Hannah	£10,000
Davies,Lowri	£42,000
Davies,Mared	£10,000
Dear,Bethan	£43,275
Dooley,Freya	£22,659
Dowdall,Morgan	£7,015
Dyson,Catherine (2 awards)	£60,000
Ellis,Nancy	£9,983
Evans,Chris	£10,588
Evans,Sioned	£8,055
Falcini,Anna	£8,356
Garner,David	£10,000
Gelsthorpe,Bob	£15,568

Arts Council of Wales 201

----- Start of picture text -----
Creative Pathways – Open Lottery
----- End of picture text -----

Gibbard,Gwenan	£10,000
Goodridge,Francesca	£61,023
Gough,Carl	£6,960
Gough,Lucy	£9,973
Grayland,Charlotte	£7,147
Green-Hope,Gemma	£10,000
Hallas,Penny	£10,000
Hallis,Duncan	£9,750
Harris,Tracy	£3,500
Hart,Nicola	£9,764
Hartel,Sara	£9,300
Hobson,Louise	£24,450
Hubbard,Abigail	£8,750
Hughes,Elin	£10,000
Hughes,Siân	£10,000
Hussain,Sam	£11,950
Hutchinson,Siân	£8,218
Iqbal,Jafar(2 awards)	£19,690
James,Bethan	£5,340
Jenkins,Amy	£5,461
Jenkins,Delyth	£10,000
Jenkins,Lowri	£10,620
John,Leyton	£14,500
Jones,Angharad	£6,865
Jones,Ann	£10,000
Kaeda,Natasha	£39,065
Keehan,Bridget	£2,700
Light,Deborah	£36,480
Linnell,Jeremy	£32,020
Llewelyn,Shari	£16,496
Lowe,Krystal	£50,000
Mair,Rhiannon	£6,455
Martin-Jones,Timothy	£700
Meilir Ioan,Osian	£24,146
Mohammad Nejad,Neda	£5,737
Morden,Daniel	£15,571
Morton,Kestrel	£10,000
Mumford,Sarah	£24,135
Necati,Yasemin	£17,801
Owen,Geraint	£9,580
Paci,Luca	£1,200
Park,Ollii	£9,950
Parry,Lisa	£7,130
Parsons,Alex	£22,150

Annual Report 2022-23 | 202

----- Start of picture text -----
Creative Pathways – Open Lottery
----- End of picture text -----

Pasotra,Tina	£9,810
Phillips,Kristian	£9,888
Philp,Jack(2 awards)	£57,480
Pickard,Ali	£9,759
Redgrave,Gaia	£49,866
Roberts,Judith	£10,000
Saha,Atreyee(2 awards)	£6,700
Saki,Sahar	£10,000
Samuel,LiynyuyMfkela Jean	£9,000
Smith,Andrew	£7,320
Stead,Kyle	£20,150
Steed,Mackenzie	£10,000
Taylor,Billy (2 awards)	£20,000
Thomas,Elen	£8,300
Thomas,Fergus	£10,000
Tinker,Tracy	£6,990
Tomos,Cai	£10,000
Tristram,Penny	£7,455
Walker,Frankie(2 awards)	£20,449
Wallace,Liam	£10,000
Wood,Tess	£11,720
Wright,Anthony	£5,176
Wynne-Paton,Catherine	£11,650
Yarnell,Anushiye	£50,300
	£1,584,704

Wales in Edinburgh
Allen,Connor	£3,600
Chambers,Gareth	£900
George,Isaac	£900
Lewis,Charlotte	£900
Lloyd,Callum	£900
Lloyd,Hannah	£810
Lowe,Krystal	£900
Mair,Rhiannon	£900
	£9,810

Arts Council of Wales 203

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International Opportunities Fund
----- End of picture text -----

Bonello,Gareth	£7,500
Burgess,Cefyn	£5,000
Calarco,Veronica	£7,500
Cotsen,Jonathan	£4,499
Curneen,Claire	£5,000
Davies,Rhodri	£3,589
De Jesus,Toni	£5,000
Dewis,Adeola	£3,130
Edwards,Sean	£6,600
Greenhalgh,Jill	£4,400
Gulczynska,Malgola	£1,830
Gwyn,Rhiannon	£3,700
Handy,Simon	£3,867
Harris,Alan	£3,500
Himsworth,Rhys	£5,000
Hudson,James	£958
Hughes,Elin	£805
James,John Mark	£5,000
Jenkins,Paul	£1,650
Khan,Imran	£5,000
Maddock,Angela	£3,793
McGill,Eric	£1,010
Meilir Ioan,Osian	£7,500
Morgan,Nina	£2,500
O'Reilly,Kaite	£2,450
Pasotra,Tina	£6,670
Phillips,Gareth	£4,750
Potter,Clare	£3,000
Shelley,Ruth	£4,966
Taylor,Billy	£4,560
Warlow,Jodie	£7,161
Wells,Amanda	£6,404
Whiting,Amanda	£6,692
Williams,Jeremy	£3,100
Wright,Joanna	£3,340
	£151,424

Annual Report 2022-23 | 204

----- Start of picture text -----
Widening Engagement - Sharing Together
----- End of picture text -----

Allen,Connor	£2,000
Llewelyn,Shari	£2,000
Owen,Angharad	£2,500
Saude,Marcy	£2,279
	£8,779

Widening Engagement - Welsh Language
Alexander,Myfanwy		£25,255
Doyle,Catrin		£31,100
Griffn,Llinos		£1,500
Ioan,Hedydd		£1,500
Keevil,Naomi		£1,500
Ladd,Eddie		£30,000
Lesdema,Eric		£30,000
Ley,Jacqueline		£1,500
Mair,Rhiannon		£1,500
Owen,Angharad		£1,500
Owen,Rhodri		£29,940
Spink,Gwenllian		£14,858
White,Rhiannon		£29,539
Williams,Manon		£30,000
Ynyr,Iola		£30,000
		£259,692
Equalities - Creative Steps
Ahmed,Ameena		£9,421
Chitiyo,Dalisizwe		£5,345
Doyle-Roberts,Bridie		£10,700
Lesdema,Eric		£9,495
Total Grants to Individuals Total Grants Offered net of offers not taken up or withdrawn		£34,961
		£2,109,605
		£15,318,330

Arts Council of Wales 205

Grants Administered by Ffilm Cymru Wales

----- Start of picture text -----
Development
----- End of picture text -----

Brano's Brando's Bride	£24,999
A CountryHouse	£21,000
A Countrythe size of Wales	£24,999
Dead Sheep's Wool	£24,999
Effe Yn Blanae	£200,000
The French Plan	£24,999
Fridays with Barry	£6,600
Honey	£100,000
Man in myBasement	£100,000
Mesmer	£10,000
On a Scale of One to Ten	£24,975
On the Record	£26,800
PigEyes	£24,999
A Pub is Bombed	£24,450
Retroftted	£24,999
SmokingShores	£120,000
Spyon Topof the World	£24,800
A StarrySkyAbove	£11,400
Unicorns	£52,294
Vegatarian Tigers	£12,000
WeddingFull of Wolves	£24,999
	£909,312

Production
Chuck Chuck Baby	£17,250
Heart of Darkness	£190,000
The Life & Death of Daniel Dee	£130,000
Road to Excess	£15,600
Timestalkers	£156,760
	£509,610

Annual Report 2022-23 | 206

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Exhibition Festivals
----- End of picture text -----

Abertoir International Horror Festival	£8,000
Butetown Film	£3,500
Cardiff Animation Festival	£18,543
Chapter Arts Centre	£10,843
Dyfodol-ism	£13,270
Fly! Festival of Black Women's Film	£5,000
Focus Wales Film Festival	£4,850
Galeri	£10,843
Gental Radical Film Club	£6,000
The Gogs International Short Film Festival	£12,170
Iris Prize Festival	£17,000
Kotatsu Japanese Animation Festival	£3,530
Memo CommunityCinema	£4,000
Taliesin Arts Centre	£10,843
To Project and Protect	£12,500
UnityFestival	£7,800
Wicked Wales International Youth Film Festival	£14,509
WOW Film Festival	£15,854
	£179,055

Total Grants from Ffilm Cymru Wales net of offers not taken up or withdrawn

£1,597,977

Arts Council of Wales 207

Grants Administered by B B C Cymru Wales

----- Start of picture text -----
Horizons: Launchpad Fund
----- End of picture text -----

Aderyn	£1,720
Adjua	£2,000
Angel Hotel	£2,000
ANGHARAD	£2,000
BabyBrave	£1,500
Banshi	£1,830
Bard Picasso Records	£2,000
Breichiau Hir	£1,100
CHROMA	£1,715
Dactyl Terra	£1,300
DD Darillo	£2,000
DirtyCarrot Records	£1,999
The FamilyBattenberg	£1,400
Ffatri Jam	£960
French Alps Tiger	£2,000
Gillie	£1,600
The Goudies	£2,000
Hollie Proft	£2,000
Jenna Kearns	£1,725
Jimbo	£1,500
Koash	£2,000
Leila McKenzie	£2,000
Macy	£1,700
ManLikeVision	£2,000
Mari Mathias	£1,200
Melda Lois	£1,325
Minas	£2,000
Murder Club	£2,000

Annual Report 2022-23 | 208

----- Start of picture text -----
Horizons: Launchpad Fund
----- End of picture text -----

NattyPaynter	£1,000
The Night School	£550
NOOKEE	£1,510
Parisa Fouladi	£1,250
Phwoar & Peace	£1,500
Rhi'N'B	£1,870
Sachasom	£1,998
Sage Todz	£2,000
Samana	£1,681
sorrystacy	£1,523
Sywel Nyw	£1,500
TELGATE	£1,400
THELIXX	£2,000
Truth	£1,900
	£70,256

Total Grants from B B C Cymru Wales net of offers not taken up or withdrawn

£70,256

Arts Council of Wales 209

Grants Administered by Literature Wales

----- Start of picture text -----
Grants
----- End of picture text -----

Abdullah-Al-Matin Rana,Sheik	£3,000
Bradford,Jade	£3,000
Davidson,Summer	£3,000
Doyle,Jessica	£3,000
Edmonds,Taylor	£3,000
Gruffudd,Osian	£3,000
Handley,Bethany	£3,000
Hughes,Sioned Erin	£3,000
Hunter,Megan Angharad	£3,000
Knight,Alice Lilith	£3,000
Manley,Leigh	£3,000
Oliver,Rhiannon	£3,000
Rind,Hammad	£3,000
Taylor,Stacey	£3,000
	£42,000

Total Grants from Literature Wales net of offers not taken up or withdrawn

£42,000

Annual Report 2022-23 | 210

Grants Administered by Tŷ Cerdd

----- Start of picture text -----
Create
----- End of picture text -----

Aberystwyth University	£1,800
Aubergine Cafe and Events CIC	£1,936
Bandiau Pres Cymru	Brass Bands Wales
Canolfan Gerdd William Mathias	£2,000
Cardiff Countyand Vale of Glamorgan Music Service	£2,000
CEG Music cic	£1,800
ChromaMusic CommunityGroup	£2,000
Citrus Arts	£1,800
Cowbridge Music Festival	£2,000
Cwmni Mara CIC	£1,500
DisabilityArts Cymru	£1,995
Grand Ambition CIC	£2,000
Joon Dance	£1,800
Llandaff Cathedral	£250
Music Theatre Wales	£1,500
Musicfest Aberystwyth	£2,000
National Libraryof Wales	£1,980
Seren FfestiniogCyf	£1,980
South Wales Youth Band	£1,020
St Davids Cathedral Festival	£2,000
The Successors of the Mandingue Ltd	£2,000
Tônau 2023	£1,800
UPROAR	£2,000
Urdd Gobaith Cymru	£1,800
	£41,786

Arts Council of Wales 211

----- Start of picture text -----
Engage
----- End of picture text -----

Aberhonddu and District Male Choir	£400
Adverse Camber Productions Ltd	£750
Bangor Music Festival	£2,000
Bangor University	£1,382
Canolfan Gerdd William Mathias	£1,700
Cantorion Menai	£400
ChromaMusic CommunityGroup	£2,000
Côr Bro Ogwr	£1,400
Côr Caerdydd	£585
Côr Teif	£1,000
Cowbridge Music Festival	£750
Eisteddfod Genedlaethol Cymru	£1,500
The F-List for Music CIC	£891
Fishguard & West Wales International Festival	£750
Footloose CommunityArts	£1,500
Hayaat Women Trust	£1,680
High Grade Grooves AcademyLtd	£2,000
Khamira	£1,500
Ladies of Rage	£1,700
Little Live Projects	£1,800
Live Music Now	£1,800
Llandaff Cathedral	£1,000
Llantwit Major Chamber Music Festival	£1,900
Menter Iaith Rhondda Cynon Taf	£2,000
MHA Communities Aberystwyth	£1,363
Newport Live	£1,500
Newport Philharmonic Choir	£500
North Wales International Music Festival	£1,000
Oasis One World Choir CIC	£1,370
operasonic cyf	£2,000
Parama 2	£2,000
Pontardulais Town Band	£1,980
The Queer Emporium Outreach C.I.C.	£400
SOEL Connect	£2,000
South Wales Youth Band	£1,700
Span Arts Ltd	£1,000
The Successors of the Mandingue Ltd	£1,800
The Tredgar House Folk Festival Society	£1,440
UPROAR	£2,000
Vale of Glamorgan Brass Band	£2,000
Vale of Glamorgan Festival	£1,400
Wrexham Music Festival	£1,800
	£59,641

Annual Report 2022-23 | 212

----- Start of picture text -----
Inspire
----- End of picture text -----

The Aloud Charity	£2,000
Arts Active Trust	£1,700
Arts Connection - Cyswllt Celf	£1,900
Bandiau Pres Cymru	Brass Bands Wales
Bangor Music Festival	£2,000
Beacons (Rhondda Cynon Taf CountyBorough Council)	£2,000
Beyond Words Thousand Voices CIC	£2,000
Canolfan Gerdd William Mathias	£2,000
Cardiff Countyand Vale of Glamorgan Music Service	£2,000
Cardiff Deaf Centre (tradingas Deaf Hub Wales)	£1,850
Cardiff Guitar Festival	£1,800
The F-List for Music CIC	£1,600
Fishguard & West Wales International Festival	£700
Goodwick Brass Band	£1,205
Grand Ambition CIC	£2,000
Hayaat Women Trust	£1,700
High Grade Grooves AcademyLimited	£2,000
Little Live Projects	£1,200
Live Music Now Ltd	£2,000
Llandeilo Fawr Festival of Music	£2,000
Llantwit Major Chamber Music Festival	£750
Music Theatre Wales	£1,500
NEW Sinfonia	£1,800
North Wales International Music Festival	£1,000
One Heart Drummers	£2,000
operasonic cyf	£2,000
Penarth Chamber Music Festival	£1,200
SiopGriffths Cyf	£1,900
Sound Progression	£2,000
South Wales Youth Band	£2,000
The Successors of the Mandingue Ltd (TSOTM)	£2,000
Trac Cymru	£2,000
Vale of Glamorgan Festival Limited	£2,000
Wonderbrass	£1,700
YoungMusic Makers of Dyfed	£2,000
Total Grants from Tŷ Cerdd net of offers not taken up or withdrawn	£61,445
	£162,872

Arts Council of Wales 213

Lottery Grants by Type

Delegated Authority Grants

Annual Report 2022-23 | 214

General Activities and Lottery Distribution Report and Financial Statements for the year ended 31 March 2023