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2022-03-31-accounts

Registered number: 03053689 Charity number: 1048581

Manchester City Galleries Trust

(A Company Limited by Guarantee)

Trustee's Report and Consolidated Financial Statements

For the Year Ended 31 March 2022

Manchester City Galleries Trust

(A Company Limited by Guarantee)

Contents

Page
Reference and Administrative Details of the Charity, its Trustees and Advisers 1
Trustees' Report 2 - 11
Independent Auditors' Report on the Financial Statements 12 - 15
Consolidated Statement of Financial Activities 16
Consolidated Balance Sheet 17
Charity Balance Sheet 18
Consolidated Statement of Cash Flows 19
Notes to the Financial Statements 20 - 39

(A Company Limited by Guarantee)

Manchester City Galleries Trust

Reference and Administrative Details of the Charity, its Trustees and Advisers For the Year Ended 31 March 2022

Trustees

P C Van Den Houten

J M Williams

J J Sandbach

T Hetherington J R Mycock R G Pulford (appointed 7 May 2021)

Company registered number

03053689

Charity registered number

1048581

Registered office

Manchester Art Gallery Mosley Street Manchester M2 3JL

Company secretary

J L Beggs

Independent auditors

Hurst Accountants Limited Chartered Accountants Statutory Auditors Lancashire Gate 21 Tiviot Dale Stockport Cheshire SK1 1TD

Bankers

The Royal Bank of Scotland 38 Mosley Street Manchester M60 2BE

Page 1

Manchester City Galleries Trust

(A Company Limited by Guarantee)

Trustees' Report For the Year Ended 31 March 2022

The Trustees present their annual report together with the audited financial statements of the Charity and Group for 1 April 2021 to 31 March 2022.

The Annual Report serves the purposes of both a Trustees' report and a directors' report under company law. The Trustees confirm that the Annual Report and financial statements of the charitable company comply with the current statutory requirements, the requirements of the charitable company's governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019).

Since the Trust and the Group qualify as small under section 383 of the Companies Act 2006, the strategic report required of medium and large companies under The Companies Act 2006 (Strategic Report and Director's Report) Regulations 2013 is not required.

The Trustees who served during the year were:

John Williams (Chair) Timothy Entwistle (resigned 5 November 2021) Thom Hetherington James Mycock Richard Pulford (appointed 7 May 2021) Julian Sandbach Petra Van Den Houten Helen Taylor-O'Brien (resigned 18 June 2020)

Objectives and activities

a. Policies and objectives

Manchester City Galleries Trust is an independent Trust raising money to support the projects and programmes of Manchester Art Gallery.

The Trustees measure the success of the Trust by its financial performance, along with the Gallery’s civic impact. The latter is reported to Manchester City Council Galleries Committee annually and this report, and feedback from the Committee, is shared with Trustees. Positive performance in turn provides additional resources for the Trust to further its objectives.

During the year the Trust had one trading subsidiary: Manchester Art Gallery Trading Company Limited (company number 04465391).

Manchester Art Gallery Trading Company Limited

This company operates the Manchester Art Gallery Café and venue hire business. Profits, when available, are gifted to the Trust. The directors of this company are:

Amanda Wallace Robert Moss Thom Hetherington Timothy Entwistle (resigned 5 November 2021) Charles McKenzie (resigned 13 August 2021) Paul Hindle Andrew Palmer (appointed 14 December 2021) Stuart Wood (appointed 14 December 2021)

Page 2

(A Company Limited by Guarantee)

Manchester City Galleries Trust

Trustees' Report (continued) For the Year Ended 31 March 2022

Objectives and activities (continued)

b. Activities and achievements

The Trust raises funds to help Manchester Art Gallery:

In 2021/22, payments were made from the Trust to support the gallery’s programme as follows:

The year ended 31 March 2022 was still impacted by the Covid-19 pandemic and by its financial implications. The gallery reopened to the public on 19 May 2021 following national lockdown. Initially the gallery opened on reduced hours (WedSun), reopening on Tuesdays at the beginning of the 2022/23 financial year. Monday closure continues and will do so for the foreseeable future.

During the pandemic, a significant amount of activity continued either behind the scenes or online. No Development staff were furloughed due to being Manchester City Council employees, meaning that fundraising continued throughout. Fundraising focused on increasing online donations and preparations for increased on-site giving on re-opening, retaining Patrons and Friends, and making applications to the Culture Recovery Fund (DCMS) and other emergency funds. These activities were still prominent at the beginning of 2021/22. The Trustees continued to meet remotely, and then in person from July 2021.

Major projects supported by the Trust in 2021/22 included:

Grayson Perry’s Art Club. Originally scheduled to open in Autumn 2020, following the success of Channel 4’s Grayson Perry’s Art Club, the exhibition finally opened following lockdown in May 2021. The Trust secured sponsorship from Swan Films and Channel 4 and brought together a group of exhibition donors, supported by Trustee Thom Hetherington.

Trading Stations: How Hot Drinks Shape Our Lives. An exhibition drawing on the gallery’s design / decorative arts collection that explores the sometimes troubling history of tea, coffee and hot chocolate. The exhibition included a tea house event space and a substantial programme of community events.

Out Of The Crate. A continuation of the sculpture exhibition which opened prior to the Covid-19 pandemic, extended due to lockdown.

What Is Manchester Art Gallery? A new introductory gallery that explores the gallery’s history and collections.

Climate Justice. A collection display, developed and selected by a group of climate activists and artists. This exhibition has been accompanied by a wide ranging programme of events and activities and continues until February 2023.

Constellations: Care & Resistance. Also originally scheduled for an earlier opening date, this active research space, which supported artist Jade Montserrat in creating a new work, was part gallery, part studio with the artist's works shown alongside works selected from the gallery collection. The project was co-curated by Curatorial Trainee Nikita Gill. The exhibition will continue to December 2024.

Page 3

(A Company Limited by Guarantee)

Manchester City Galleries Trust

Trustees' Report (continued) For the Year Ended 31 March 2022

Objectives and activities (continued)

Suzanne Lacy: Uncertain Futures. Throughout lockdowns, the Gallery continued to work with artist Suzanne Lacy on a participatory project that explored the issues faced by older women in relation to work. Installed during lockdown, the exhibition opened in May 2021, and has been refreshed to include new work produced as part of the project, and continues until December 2024.

Early Years programme. The new ground-floor Clore Art Studio (The Lion’s Den) opened in May 2021, offering priority activities for families with babies born during lockdown and Afghan refugee families housed in the city’s hotels.

Children and Young People. Wellbeing work developed during lockdown and in response to the Black Lives Matter movement continued, offering sessions for priority schools. This included schools’ sessions focused on 19th Century African American abolitionist, Sarah Parker Remond and her campaigning in Manchester which has become a core session offered to Manchester schools.

Communities. Extensive work continued at Platt Hall as part of Platt Hall In-Between. Demand has begun to outstrip capacity and this work and it remains a fundraising priority.

The Derek Jarman Pocket Park was created as an engagement project and legacy of the Derek Jarman: Protest! Exhibition (2 December 2021 - 10 April 2022). Designed with a group of older LGBT+ volunteers in partnership with the LGBT+ Foundation, the garden takes inspiration from Jarman’s garden in Dungeness and is a permanent installation at the front of the gallery. This project attracted a significant number of charitable grants and donations.

Health & Wellbeing / Social Prescribing. Manchester Art Gallery continues to work with the Robert Darbishire Practice to develop and deliver a programme of socially prescribed activity that takes place at Platt Hall. During 2021/22 this has focused on pre-diabetes support.

Room To Breathe opened on 2 April 2022 and is an experimental space that uses two artworks from the collection to promote slow, mindful viewing. It is providing a site for research with Goldsmiths on how art can impact well-being. This project will continue until 2025.

Work with schools and young people that addresses the impact of childhood trauma has become a core area of activity for the Learning Team and this work has been developed and delivered across the year.

Health & Wellbeing work is a priority for future fundraising.

Web and digital. A new website was developed during the period, while the increased social media activity developed during lockdown has continued.

Fundraising

a. Overview

2021/22 has been a period of recovery for the gallery following the impact of lockdowns, financial loss and implementation of emergency measures across the business.

Final Spend of Emergency Funds

Emergency grants, most notably the Department for Digital, Culture, Media and Sport/Arts Council England Culture Recovery Fund, secured in 2020/21 were fully spent during 2021/22. The grants secured the financial viability of Manchester Art Gallery Trading Company Limited which was able to remain viable and which saw immediate recovery in income following re-opening. This would not have been possible without the emergency investment.

Page 4

Manchester City Galleries Trust

(A Company Limited by Guarantee)

Trustees' Report (continued) For the Year Ended 31 March 2022

Fundraising (continued)

Onsite Donations

In preparation for re-opening we installed new cash donation boxes and two contactless donation points. On-site donations proved particularly healthy in the initial opening period and have remained high.

Online Donations

Online donations, which saw a significant increase in the previous year during closure and during the run of Grayson’s Art Club (prompted by a donation ask as part of the ticketing process) decreased following the closure of the exhibition and a return to un-ticketed entry.

The development of the new website has prioritised fundraising and prompts online giving.

Friends and Patrons

Friends memberships increased significantly on re-opening, prompted by the opportunity for Friends to pre-book tickets for Grayson’s Art Club. Many of these memberships, however, were one year payments rather than direct debits, and a large number were non-local people, unlikely to become long-term members. We plan to launch a membership campaign in 2022/23.

Patron membership has remained constant during the year.

Friends and Patrons enjoyed a programme of online talks replacing gallery events during lockdowns which have proved popular enough to continue alongside in-person events. The online events are being managed and delivered by a group of volunteers.

Gifts from Individuals

The Manchester Contemporary Art Fund are a group of individuals who donate annually for the Gallery to acquire works for the collection from the Manchester Contemporary Art Fair. The scheme was set up and is managed by Trustee and Director Thom Hetherington. In the absence of a 2020 Art Fair, the group contributed to fund the Grayson’s Art Club exhibition in 2021/22 and returned to raise funds for three acquisitions from the 2021 Manchester Contemporary.

Legacies

Promotion of legacies was not prioritised during the year. One small legacy was received.

Business Partners

All existing Business Partners returned in 2021/22. A full re-assessment of the scheme is still required if membership is to grow, although with the current financial uncertainly amongst businesses, this is currently not a priority.

Trusts and Foundations

The number of submissions to Trusts and Foundations remained high during 2021/22, primarily due to having a strong Development Manager in post, whose time was focused almost entirely on grant-writing to fund planned activity. This remains the most lucrative area for fundraising and will continue to take priority over other forms of fundraising.

Staff

The team still has low capacity given the size of the organisation and annual budgets. In order to address limited capacity, the Head of Development and Development Manager continue to have support from members of the Learning and Engagement and Curatorial teams in making additional grant applications.

The Development Manager (full time), Friends Coordinator (full time) and Head of Development (part time) are employed by Manchester City Council. In addition, a freelance accountant works for the Trust on flexible hours.

Page 5

Manchester City Galleries Trust (A Company Limited by Guarantee)

Trustees' Report (continued) For the Year Ended 31 March 2022

Fundraising (continued)

b. Priorities for fundraising 2022/23

Given the cost of living crisis and likely financial situation we face in 2022/23, the focus will continue to be on stabilisation of existing priority activities, budget-relieving and unrestricted income. In addition to securing public funding and making Trust and Foundation applications, we will focus on philanthropy, building on the commitment we have seen from our Friends and Patrons schemes and developing our relationships with individual donors.

Priority will be given to securing funding to support:

Financial review

a. Review of the year

During the year ended 31 March 2022, the Group’s income amounted to £1,394,993 (2021: £1,387,558).

The Group's expenditure for the year ended 31 March 2022 amounted to £958,147 (2021: £628,007).

The net surplus for the year amounted to £436,846 (2021: £759,551).

As at 31 March 2022, the Group had total funds of £1,487,659 (2021: £1,050,813) of which £511,211 (2021: £639,966) were restricted funds. At the year end the Group held £1,593,675 (2021: £1,014,072) in liquid assets.

As at 31 March 2022, the Trust had total funds of £1,298,127 (2021: 793,766) and £1,173,967 (2021: £716,487) in liquid assets.

During the year ended 31 March 2022, Manchester Art Gallery Trading Company Limited reported a profit after tax of £361,738 (2021: £151,782) and as at 31 March 2022 the company had net assets of £109,569 (2021: £66,588).

Manchester Art Gallery Development Company ceased trading on 31 March 2021 with its activities being transferred to the Trust.

Page 6

(A Company Limited by Guarantee)

Manchester City Galleries Trust

Trustees' Report (continued) For the Year Ended 31 March 2022

b. Reserves policy

The Trustees regularly review the level of the Trust’s reserves to ensure that they are sufficient to meet foreseeable charitable expenditure, fixed costs and working capital requirements. A risk assessment is undertaken using the risk identification approach to determine anticipated:

The Trustees aim to maintain a sufficient level of reserves to ensure continuing operations for the foreseeable future and that the Trust is able to meet its statutory and legal obligations.

Including restricted reserves, the Trustees have concluded that reserves of £225,000 should be maintained.

c. Going concern

After making appropriate enquiries, the Trustees have a reasonable expectation that the Trust and the Group has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the Accounting Policies.

d. Investment policy

The outstanding loan of £14,557 from Manchester City Galleries Trust to the Trading Company was repaid during the year.

The balance of the Trust’s funds are currently held in a non-interest bearing bank account following transfer of funds to a new bank. The Trustees are considering options for a transfer of some funds to a deposit account.

Structure, governance and management

a. Constitution

The Trust is registered as a charitable company limited by guarantee and was established and is governed under a Memorandum and Articles of Association.

The Trust is a registered charity, charity number 1048581, with a registered office of Manchester Art Gallery, Mosley Street, Manchester, M2 3JL.

The Trust is established for the advancement of the education of the citizens and other residents of the City of Manchester in particular and of other citizens and residents of the United Kingdom in general, in British and foreign history of the Arts, and for the benefits of scholars in the Universities and local, national and foreign researchers in history of the Arts.

Page 7

Manchester City Galleries Trust

(A Company Limited by Guarantee)

Trustees' Report (continued) For the Year Ended 31 March 2022

Structure, governance and management (continued)

b. Methods of appointment or election of Trustees

The management of the Trust is the responsibility of the Trustees who are elected and co opted under the terms of the Articles of Association.

The directors/trustees who served during the year are listed on page 1 of the annual report. The directors/trustees are elected annually by members in a general meeting.

c. Organisational structure and decision-making policies

The Trust is managed by the trustees/directors and by employees of Manchester City Council. There are no staff directly employed by the Trust, although staff working in the Manchester Art Gallery Café and some members of the Events Team are employed by Manchester Art Gallery Trading Company Limited and all trading business is recorded through this company.

The Trustees meet quarterly to review the financial position of the Trust and to guide progress against the Trust’s objectives.

The Directors of Manchester Art Gallery Trading Company Limited meet monthly to review the trading results and monitor and determine the company’s future commercial objectives. The operational management of Manchester Art Gallery Trading Company rests with three key managers; the General Manager, the Trading Company Accountant and the Head of Commercial. These key managers attend and contribute to the Directors’ meetings. The remuneration of the operational management is set by the Board of the Directors having regard to performance and the market rate for comparable roles.

d. Policies adopted for the induction and training of Trustees

New Trustees are introduced to the Group, usually by existing Trustees and Manchester City Galleries staff, and are given a full background to the Group’s history and current activities to ensure they have a good knowledge of the Group and the activities of Manchester City Galleries. A role description is issued to all new Trustees so that they are fully aware of their duties and responsibilities. Regular updates on gallery business are sent to Trustees and opportunities for training are offered. Trustees are expected to take part in gallery activities – attending exhibition previews, all-gallery training etc. and engage in the wider cultural life of the city.

e. Related party relationships

The Trust holds the entire issued share capital of Manchester Art Gallery Trading Company Limited and co operates with Manchester City Council in pursuit of its charitable objectives.

Transactions between the Trust and Trading Company are shown in note 26 to the accounts. Trading profits (when available and net of earlier deficits) of the Manchester Art Gallery Trading Company Limited have been gifted to the Trust.

Page 8

Manchester City Galleries Trust (A Company Limited by Guarantee)

Trustees' Report (continued) For the Year Ended 31 March 2022

Structure, governance and management (continued)

f. Risk management

The Trustees have assessed the major risks to which the Trust and the Group are exposed, in particular those related to the operations and finances of the Trust and the Group, and are satisfied that systems and procedures are in place to mitigate our exposure to the major risks.

The principal risks affecting the Trust and the Group are the dependence on fundraising (grants, donations, memberships and sponsorship) and the popularity of the programme which in turn generates donation box income and retail income for the Manchester Art Gallery Café. The Trustees manage these risks for the Trust and the Group by regularly reviewing past financial performance, future financial projections and the potential opportunities that arise from the programme. In undertaking this review, the Trustees are assisted by professional curatorial staff employed by Manchester City Council.

The principal risks facing Manchester Art Gallery Trading Company Limited, which operates the Manchester Art Gallery Café are:

Other than continued fiscal pressures, the Trustees are not aware of any other factors that will impact the future performance of the Trust and the Group.

g. Public benefit

The Trust is established for the advancement of the education of the citizens and other residents of the City of Manchester in particular, and of other citizens and residents of the United Kingdom in general, in British and foreign history of the Arts, and for the benefits of scholars in the Universities and local, national and foreign researchers in history of the Arts.

The Trustees confirm that they have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the Trust’s aims and objectives and in planning future activities and services.

The Trust currently achieves its objectives by raising funds to support the Galleries’ programme of exhibitions and educational activities, capital projects, and to fund acquisition of artworks for the collection.

In its support of Manchester City Galleries’ activities, the Trust contributes to the free access of the general public to Manchester Art Gallery regardless of their background. The Trust is of the view that any private benefit gained by the Trustees is incidental.regardless of their background. The Trust is of the view that any private benefit gained by the Trustees is incidental.

Page 9

Manchester City Galleries Trust (A Company Limited by Guarantee)

Trustees' Report (continued) For the Year Ended 31 March 2022

Funds

The funds held by the Trust are detailed in the notes to the financial statements.

Information on fundraising practices

Section 162a of the Charities Act 2011 requires charities to make a statement regarding fundraising activities. The Trustees confirm that all fundraising is managed internally without the involvement of commission driven external fundraisers or third parties. The routine management of income generation rests with the gallery’s Head of Development.

In general, fundraising activities are directed towards individuals and organisations that are already involved in the work of the gallery or who have expressed an interest in becoming involved.

Statement of Trustees' responsibilities

The Trustees (who are also the directors of the Charity for the purposes of company law) are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Trustees to prepare financial statements for each financial . Under company law, the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Group and the Charity and of their incoming resources and application of resources, including their income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Group and the Charity's transactions and disclose with reasonable accuracy at any time the financial position of the Group and the Charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Group and the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Disclosure of information to auditors

Each of the persons who are Trustees at the time when this Trustees' Report is approved has confirmed that:

Page 10

Manchester City Galleries Trust

(A Company Limited by Guarantee)

Trustees' Report (continued) For the Year Ended 31 March 2022

Auditors

The auditors, Hurst Accountants Limited, have indicated their willingness to continue in office. The designated Trustees will propose a motion reappointing the auditors at a meeting of the Trustees.

Approved by order of the members of the board of Trustees and signed on their behalf by:

Jo Beggs

J L Beggs

Head of Development and Trust Secretary

Date: 15 Dec 2022

Page 11

(A Company Limited by Guarantee)

Manchester City Galleries Trust

Independent Auditors' Report to the Members of Manchester City Galleries Trust

Opinion

We have audited the financial statements of Manchester City Galleries Trust (the 'parent charitable company') and its subsidiaries (the 'group') for the year ended 31 March 2022 which comprise the Consolidated Statement of Financial Activities, the Consolidated Balance Sheet, the Charity Balance Sheet, the Consolidated Statement of Cash Flows and the 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 UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group's or the parent charitable company'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.

Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.

Page 12

Manchester City Galleries Trust

(A Company Limited by Guarantee)

Independent Auditors' Report to the Members of Manchester City Galleries Trust (continued)

Other information

The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The Trustees are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinion on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' Report.

We have nothing to report in respect of the following matters in relation to which Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the Trustees' Responsibilities Statement, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Trustees are responsible for assessing the Group's and the parent charitable company'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 Trustees either intend to liquidate the Group or the parent charitable company or to cease operations, or have no realistic alternative but to do so.

Page 13

Manchester City Galleries Trust

(A Company Limited by Guarantee)

Independent Auditors' Report to the Members of Manchester City Galleries Trust (continued)

Auditors' responsibilities for the audit of the financial statements

Our 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 Auditors' Report that includes our 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. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Identifying and assessing potential risks related to irregularities

In identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and noncompliance with laws and regulations, we considered the following:

Audit response to risks identified

Our procedures to respond to the risks identified included the following:

Page 14

(A Company Limited by Guarantee)

Manchester City Galleries Trust

Independent Auditors' Report to the Members of Manchester City Galleries Trust (continued)

We have also considered the risk of fraud through management override of controls by:

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

There are inherent limitations in the audit procedures described above, and the further removed non-compliance with laws and regulations are from the events and transactions reflected in the financial statements, the less likely we would become aware of them. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

A further description of our 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 our Auditors' Report.

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and its members, as a body, for our audit work, for this report, or for the opinions we have formed.

HABesantRoberts

Helen Besant-Roberts (Senior Statutory Auditor)

for and on behalf of

Hurst Accountants Limited

Chartered Accountants Statutory Auditors Lancashire Gate 21 Tiviot Dale Stockport Cheshire SK1 1TD

Date: 15 Dec 2022

Page 15

Manchester City Galleries Trust

(A Company Limited by Guarantee)

Consolidated Statement of financial activities (incorporating income and expenditure account) For the Year Ended 31 March 2022

Note
Income from:
Donations and legacies
4
Charitable activities
5
Trading activities
6
Investments
7
Total income
Expenditure on:
Raising funds
8
Charitable activities
9
Total expenditure
Net income
Transfers between funds
19
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Net movement in funds
Total funds carried forward		 Unrestricted
funds
2022
£
227,022
55,029
753,089
176
1,035,316
617,245
154,737
771,982
263,334
302,267
565,601
410,847
565,601
976,448		 Restricted
funds
2022
£
202,481
157,196
-
-
359,677
83,170
102,995
186,165
173,512
(302,267)
(128,755)
639,966
(128,755)
511,211		 Total
funds
2022
£
429,503
212,225
753,089
176
1,394,993
700,415
257,732
958,147
436,846
-
436,846
1,050,813
436,846
1,487,659		 Total
funds
2021
£
1,032,641
295,769
59,060
88
1,387,558
539,968
88,039
628,007
759,551
-
759,551
291,262
759,551
1,050,813

The Consolidated Statement of Financial Activities includes all gains and losses recognised in the year.

The notes on pages 20 to 39 form part of these financial statements.

Page 16

Manchester City Galleries Trust

(A Company Limited by Guarantee) Registered number: 03053689

Consolidated Balance Sheet As at 31 March 2022

Note
Fixed assets
Tangible assets
14
Current assets
Stocks
16
Debtors
17
Cash at bank and in hand
Creditors: amounts falling due within one year
18
Net current assets
Total net assets
Charity funds
Restricted funds
19
Unrestricted funds
19
Total funds		 3,996
178,187
1,593,675
1,775,858
(410,432)		 2022
£
122,233
1,365,426
1,487,659
511,211
976,448
1,487,659		 3,996
100,298
1,014,072
1,118,366
(164,639)		 2021
£
97,086
953,727
1,050,813
639,966
410,847
1,050,813

The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.

The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:

J M Williams

Trustee

Date: 15 Dec 2022

The notes on pages 20 to 39 form part of these financial statements.

Page 17

Manchester City Galleries Trust

(A Company Limited by Guarantee) Registered number: 03053689

Charity Balance Sheet As at 31 March 2022

Note
Fixed assets
Investments
15
Current assets
Debtors
17
Cash at bank and in hand
Creditors: amounts falling due within one year
18
Net current assets
Total net assets
Charity funds
Restricted funds
19
Unrestricted funds
General funds
19
Total unrestricted funds
19
Total funds		 340,376
1,173,967
1,514,343
(216,218)
867,021		 2022
£
2
1,298,125
1,298,127
431,106
867,021
1,298,127		 148,672
716,487
865,159
(71,395)
344,330		 2021
£
2
793,764
793,766
449,436
344,330
793,766

The Charity's net movement in funds for the year was £ 504,290 (2021 - £499,965) .

The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.

The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:

J M Williams

Trustee

Date: 15 Dec 2022

The notes on pages 20 to 39 form part of these financial statements.

Page 18

Manchester City Galleries Trust

(A Company Limited by Guarantee)

Consolidated Statement of Cash Flows For the Year Ended 31 March 2022

Note
Cash flows from operating activities
Net cash used in operating activities
21
Cash flows from investing activities
Dividends, interests and rents from investments
Proceeds from the sale of tangible fixed assets
Purchase of tangible fixed assets
Net cash used in investing activities
Cash flows from financing activities
Net cash provided by financing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
22
The notes on pages 20 to 39 form part of these financial statements		 2022
£
643,105
176
5,975
(69,653)
(63,502)
-
579,603
1,014,072
1,593,675		 2021
£
448,167
88
-
(79,990)
(79,902)
-
368,265
645,807
1,014,072

Page 19

Manchester City Galleries Trust

(A Company Limited by Guarantee)

Notes to the Financial Statements For the Year Ended 31 March 2022

1. General information

Manchester City Galleries Trust is a company limited by guarantee, registered number 03053689, incorporated in England. It is also a charity, registered number 1048581. The registered address is Manchester Art Gallery, Mosley Street, Manchester, M2 3JL.

The principal activity of the group is raising money to support the projects and programmes of Manchester City Art Gallery.

2. Accounting policies

2.1 Basis of preparation of financial statements

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Manchester City Galleries Trust meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

The Consolidated Statement of Financial Activities (SOFA) and Consolidated Balance Sheet consolidate the financial statements of the Charity and its subsidiary undertakings. The results of the subsidiaries are consolidated on a line by line basis.

The Charity has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Financial Activities in these financial statements.

The Charity meets the definition of a qualifying entity under FRS 102 and has therefore taken advantage of the disclosure exemption available to it in respect of its separate financial statements in relation to presentation of a cash flow statement.

2.2 Company status

The Charity is a company limited by guarantee. The members of the company are the Trustees names on page 1. The address of its registered office is Manchester Art Gallery, Mosley Street, Manchester, M2 3JL. In the event of the Charity being wound up, the liability in respect of the guarantees is limited to £1 per member of the Charity.

2.3 Going concern

In deciding to prepare the financial statements on a going concern basis, the Trustees have considered all available information regarding the future for a period of at least 12 months from the date of approval of these financial statements. The Trustees are satisfied that the going concern basis adopted in the preparation of these financial statements is appropriate and that the Group can continue in operational existence for at least the next 12 months.

Page 20

Manchester City Galleries Trust

(A Company Limited by Guarantee)

Notes to the Financial Statements For the Year Ended 31 March 2022

2. Accounting policies (continued)

2.4 Income

All income is recognised once the Charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

Donated services or facilities are recognised when the Group has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use of the Group of the item is probable and that economic benefit can be measured reliably. In accordance with the Charities SORP (FRS 102), the general volunteer time of the Friends is not recognised. Refer to the Trustees' Report for more information about their contribution.

On receipt, donated professional services and facilities are recognised on the basis of the value of the gift to the Charity which is the amount it would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.

Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.

Income from grants and government grants is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably.

Other income is recognised in the period in which it is receivable and to the extent the goods have been provided or on completion of the service. Revenue from the sale of food and beverages is recognised at the point of sale. Revenue from a contract to provide services is recognised in the period in which the services are provided in.

Page 21

Manchester City Galleries Trust

(A Company Limited by Guarantee)

Notes to the Financial Statements For the Year Ended 31 March 2022

2. Accounting policies (continued)

2.5 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.

Fundraising costs are those incurred in seeking voluntary contributions and do not include the costs of disseminating information in support of the charitable activities. Governance costs are those incurred in connection with administration of the Charity and compliance with constitutional and statutory requirements.

Costs of generating funds are costs incurred in attracting voluntary income, and those incurred in trading activities that raise funds. The costs of commercial trading includes the cafeteria and its associated support costs.

Charitable activities and Governance costs are costs incurred on the Charity's operations, including support costs and costs relating to the governance of the Charity apportioned to charitable activities.

2.6 Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Group; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.

2.7 Tangible fixed assets and depreciation

Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.

Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives.

Depreciation is provided on the following bases:

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Consolidated Statement of Financial Activities.

Page 22

Manchester City Galleries Trust

(A Company Limited by Guarantee)

Notes to the Financial Statements For the Year Ended 31 March 2022

2. Accounting policies (continued)

2.8 Investments

Investments in subsidiaries are valued at cost less provision for impairment.

2.9 Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a weighted average basis.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in the statement of financial activities.

2.10 Debtors

Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

2.11 Cash at bank and in hand

Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

2.12 Liabilities and provisions

Liabilities are recognised when there is an obligation at the Balance Sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

Liabilities are recognised at the amount that the Charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Consolidated Statement of Financial Activities as a finance cost.

2.13 Financial instruments

The Group only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

2.14 Operating leases

Rentals paid under operating leases are charged to the Consolidated Statement of Financial Activities on a straight line basis over the lease term.

Page 23

Manchester City Galleries Trust

(A Company Limited by Guarantee)

Notes to the Financial Statements For the Year Ended 31 March 2022

2. Accounting policies (continued)

2.15 Pensions

The Group operates a defined contribution pension scheme and the pension charge represents the amounts payable by the Group to the fund in respect of the year.

2.16 Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Group and which have not been designated for other purposes.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Group for particular purposes. The costs 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.

2.17 Value added tax (VAT)

Income is stated net of VAT where applicable. Expenditure is stated net of any recoverable VAT. Any irrecoverable VAT is recognised as a cost against the activity for which the expenditure was incurred.

3. Critical accounting estimates and areas of judgement

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Critical accounting estimates and assumptions:

The Charity makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.

Critical areas of judgement:

Accruals and deferred income

Accruals and deferred income are entered in the financial statements based on management expectations, taking into account various factors relevant to each item. The Group recognised accruals and deferred income at 31 March 2022 of £315,948 (2021: £127,868).

Depreciation

The Group exercises judgement in estimating the useful economic life of plant and machinery, office equipment and computer equipment. The net book value of fixed assets at the year end totalled £122,253 (2021: £97,086).

Page 24

Manchester City Galleries Trust

(A Company Limited by Guarantee)

Notes to the Financial Statements For the Year Ended 31 March 2022

4. Income from donations and legacies

Donations
Government grants
Total 2022
Total 2021		 Unrestricted
funds
2022
£
165,951
61,071
227,022
246,941		 Restricted
funds
2022
£
58,386
144,095
202,481
785,700		 Total
funds
2022
£
224,337
205,166
429,503
1,032,641		 Total
funds
2021
£
113,066
919,575
1,032,641

5. Income from charitable activities

Grants receivable
Friends income
Total 2022
Total 2021		 Unrestricted
funds
2022
£
-
55,029
55,029
28,483		 Restricted
funds
2022
£
157,196
-
157,196
267,286		 Total
funds
2022
£
157,196
55,029
212,225
295,769		 Total
funds
2021
£
267,286
28,483
295,769

Page 25

Manchester City Galleries Trust

(A Company Limited by Guarantee)

Notes to the Financial Statements For the Year Ended 31 March 2022

6. Income from trading activities

Catering, events and venue hire
Corporate membership
Total 2022
Total 2021		 Unrestricted
funds
2022
£
753,089
-
753,089
59,060		 Total
funds
2022
£
753,089
-
753,089
59,060		 Total
funds
2021
£
310
58,750
59,060

7. Investment income

Income from bank deposits
Total 2022
Total 2021		 Unrestricted
funds
2022
£
176
176
88		 Total
funds
2022
£
176
176
88		 Total
funds
2021
£
88
88

Page 26

(A Company Limited by Guarantee)

Manchester City Galleries Trust

Notes to the Financial Statements For the Year Ended 31 March 2022

8. Expenditure on raising funds

Cost of sales and administrative expenses
Wages and salaries
National insurance contributions
Pension costs
Depreciation of tangible fixed assets
Total 2022
Total 2021		 Unrestricted
funds
2022
£
108,217
437,240
26,252
7,005
38,531
617,245
359,669		 Restricted
funds
2022
£
75,170
8,000
-
-
-
83,170
180,299		 Total
funds
2022
£
183,387
445,240
26,252
7,005
38,531
700,415
539,968		 Total
funds
2021
£
133,199
367,455
22,547
6,387
10,380
539,968

9. Analysis of expenditure on charitable activities

Summary by fund type

Gallery
Exhibitions
Friends scheme
Other fundraising
Acquisitions
Governance
Total 2022
Total 2021		 Unrestricted
funds
2022
£
130,918
-
457
3,403
-
19,959
154,737
27,331		 Restricted
funds
2022
£
-
69,825
-
-
33,170
-
102,995
60,708		 Total
2022
£
130,918
69,825
457
3,403
33,170
19,959
257,732
88,039		 Total
2021
£
3,773
45,971
150
147
14,737
23,261
88,039

Page 27

Manchester City Galleries Trust

(A Company Limited by Guarantee)

Notes to the Financial Statements For the Year Ended 31 March 2022

10. Analysis of expenditure by activities

Gallery
Exhibitions
Friends scheme
Other fundraising
Acquisitions
Governance
Total 2022
Total 2021		 Activities
undertaken
directly
2022
£
130,918
69,825
457
3,403
33,170
-
237,773
64,778		 Support costs
2022
£
-
-
-
-
-
19,959
19,959
23,261		 Total
funds
2022
£
130,918
69,825
457
3,403
33,170
19,959
257,732
88,039		 Total
funds
2021
£
3,773
45,971
150
147
14,737
23,261
88,039

Analysis of support costs

Audit fees
Accountancy fees
Bank charges
Total 2022
Total 2021		 Governance
costs
2022
£
11,350
8,287
322
19,959
23,261		 Total
funds
2022
£
11,350
8,287
322
19,959
23,261		 Total
funds
2021
£
12,900
9,323
1,038
23,261

Support costs have been allocated on an actual basis.

Page 28

Manchester City Galleries Trust

(A Company Limited by Guarantee)

Notes to the Financial Statements For the Year Ended 31 March 2022

11. Auditors' remuneration

2022 2021
£ £
Fees payable to the Charity's auditor for the audit of the Charity's annual accounts 11,350 12,900
Fees payable to the Charity's auditor in respect of:
Taxation services not included above 550 1,000

12. Staff costs

Wages and salaries
Social security costs
Contribution to defined contribution pension schemes		 Group
2022
£
445,240
26,252
7,005
478,497		 Group
2021
£
367,455
22,547
6,387
396,389

The average number of persons employed by the Charity during the year was as follows:

Group Group
2022 2021
No. No.
Employees 35 26

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

13. Trustees' remuneration and expenses

During the year, no Trustees received any remuneration or other benefits (2021 - £NIL) .

During the year ended 31 March 2022, no Trustee expenses have been incurred (2021 - £NIL) .

Page 29

Manchester City Galleries Trust

(A Company Limited by Guarantee)

Notes to the Financial Statements For the Year Ended 31 March 2022

14. Tangible fixed assets

Group

Cost or valuation
At 1 April 2021
Additions
Disposals
At 31 March 2022
Depreciation
At 1 April 2021
Charge for the year
At 31 March 2022
Net book value
At 31 March 2022
At 31 March 2021		 Long-term
leasehold
property
£
16,825
10,460
(5,975)
21,310
352
3,108
3,460
17,850
16,473		 Plant and
machinery
£
57,683
26,517
-
84,200
31,112
11,843
42,955
41,245
26,571		 Office
equipment
£
33,332
4,508
-
37,840
1,524
8,165
9,689
28,151
31,808		 Computer
equipment
£
26,275
28,168
-
54,443
4,041
15,415
19,456
34,987
22,234		 Total
£
134,115
69,653
(5,975)
197,793
37,029
38,531
75,560
122,233
97,086

The Company had no fixed assets.

Page 30

(A Company Limited by Guarantee)

Manchester City Galleries Trust

Notes to the Financial Statements
For the Year Ended 31 March 2022
15.
Fixed asset investments
Charity
Cost or valuation
At 1 April 2021
At 31 March 2022
Impairment
At 1 April 2021
At 31 March 2022
Net book value
At 31 March 2022
At 31 March 2021
Details of the Charity's principal subsidiaries are presented in note 27.
16.
Stocks
Group
2022
£
Finished goods and goods for resale
3,996		 Investments
in subsidiary
companies
£
4,002
4,002
4,000
4,000
2
2
Group
2021
£
3,996

Page 31

Manchester City Galleries Trust

(A Company Limited by Guarantee)

Notes to the Financial Statements For the Year Ended 31 March 2022

17. Debtors

Due within one year
Trade debtors
Amounts owed by group undertakings
Other debtors
Prepayments and accrued income		 Group
2022
£
84,980
-
88,482
4,725
178,187		 Group
2021
£
84,755
-
14,627
916
100,298		 Company
2022
£
6,875
331,738
1,763
-
340,376		 Company
2021
£
54,801
93,866
5
-
148,672

An impairment loss of £nil (2021: £nil) was recognised in the year against trade debtors.

18. Creditors: Amounts falling due within one year

Trade creditors
Amounts owed to group undertakings
Other taxation and social security
Other creditors
Accruals and deferred income
Deferred income at 1 April 2021
Resources deferred during the year
Amounts released from previous periods
Deferred income at 31 March 2022		 Group
2022
£
18,253
-
47,804
27,827
316,548
410,432
Group
2022
£
127,868
315,948
(127,868)
315,948		 Group
2021
£
14,587
-
5,597
16,587
127,868
164,639
Group
2021
£
244,056
127,868
(244,056)
127,868		 Company
2022
£
2,447
-
-
7,802
205,969
216,218
Company
2022
£
53,974
205,969
(53,974)
205,969		 Company
2021
£
5,146
551
-
11,724
53,974
71,395
Company
2021
£
151,912
53,974
(151,912)
53,974

Page 32

Manchester City Galleries Trust

(A Company Limited by Guarantee)

Notes to the Financial Statements For the Year Ended 31 March 2022

19.
Statement of funds
Statement of funds - current year
Unrestricted funds
General Funds
Restricted funds
Zochonis Trust
Clore Duffield Foundation (Learning &
Engagement)
Assheton Bennett
Deborah Roberts
Jeremy Deller Film
Paul Mellon - Speech Acts
Graysons Art Club
University of Manchester (Suzanne
Lacy)
GMCA (AoR Project)
Heritage Lottery Funding - Collecting
Cultures
Derek Jarman
Culture Recovery Fund
Headley Trust
Francis Winham (Making Conversations)
Paul Hamlyn Foundation
National Heritage Fund (Trading
Stations)
Sylvia Adams (Healthy Baby Stay &
Play)
Platt Hall Project
Fashion Gallery
Other immaterial restricted project funds
Total of funds		 Balance at 1
April 2021
£
410,847
Balance at 1
April 2021
£
90,000
10,000
15,173
14,263
40,000
3,377
16,357
9,400
-
(1,957)
57,250
190,459
-
2,000
27,706
9,800
14,500
(1,863)
120,000
23,501
639,966
1,050,813		 Income
£
1,035,316
Income
£
-
6,000
-
-
-
-
-
-
14,000
-
10,000
144,095
20,000
-
-
-
-
36,437
90,000
39,145
359,677
1,394,993		 Expenditure
£
(771,982)
Expenditure
£
-
-
-
-
-
(1,000)
-
-
-
-
(12,509)
(83,170)
-
-
(22,615)
(9,232)
-
(30,119)
(16,735)
(10,785)
(186,165)
(958,147)		 Expenditure
£
(771,982)
Expenditure
£
-
-
-
-
-
(1,000)
-
-
-
-
(12,509)
(83,170)
-
-
(22,615)
(9,232)
-
(30,119)
(16,735)
(10,785)
(186,165)
(958,147)		 Transfers
in/out
£
302,267
Transfers
in/out
£

(36,424)
-
-
(14,263)
(40,000)
-
(16,357)
(9,400)
-
2,027
-
(171,350)
-
-
(5,036)
-
(14,500)
5,036
-
(2,000)
(302,267)
-		 Balance at 31
March 2022
£
976,448
Balance at 31
March 2022
£
53,576
16,000
15,173
-
-
2,377
-
-
14,000
70
54,741
80,034
20,000
2,000
55
568
-
9,491
193,265
49,861
511,211
1,487,659

Page 33

(A Company Limited by Guarantee)

Manchester City Galleries Trust

Notes to the Financial Statements For the Year Ended 31 March 2022

19. Statement of funds (continued)

Statement of funds - prior year

1
Unrestricted funds
General Funds
Restricted funds
Zochonis Trust
Clore Duffield Foundation (Learning &
Engagement)
Assheton Bennett
Deborah Roberts
Jeremy Deller Film
Paul Mellon - Speech Acts
Graysons Art Club
University of Manchester (Suzanne Lacy)
Heritage Lottery Funding - Collecting
Cultures
Derek Jarman
Culture Recovery Fund
Francis Winham (Making Conversations)
Paul Hamlyn Foundation
National Heritage Fund (Trading Stations)
Sylvia Adams (Healthy Baby Stay & Play)
Platt Hall Project
Fashion Gallery
Other immaterial restricted project funds
Total of funds		 Balance at
April 2020
£
Income
£
152,626
334,572
60,000
30,000
-
10,000
15,173
-
-
14,263
-
40,000
4,377
-
857
15,500
9,400
-
(24,592)
23,203
-
59,950
-
681,407
2,000
-
52,215
-
9,800
-
11,500
3,000
6,305
23,763
-
120,000
1,001
22,500
148,036
,043,586
300,662
1,378,158		 Expenditure
£
Transfers
in/out
£
Balance at
31 March 2021
£
(387,000)
310,649
410,847
-
-
90,000
-
-
10,000
-
-
15,173
-
-
14,263
-
-
40,000
(1,000)
-
3,377
-
-
16,357
-
-
9,400
(568)
-
(1,957)
(2,700)
-
57,250
(180,299)
(310,649)
190,459
-
-
2,000
(24,509)
-
27,706
-
-
9,800
-
-
14,500
(31,931)
-
(1,863)
-
-
120,000
-
-
23,501
(241,007)
(310,649)
639,966
(628,007)
-
1,050,813		 Expenditure
£
Transfers
in/out
£
Balance at
31 March 2021
£
(387,000)
310,649
410,847
-
-
90,000
-
-
10,000
-
-
15,173
-
-
14,263
-
-
40,000
(1,000)
-
3,377
-
-
16,357
-
-
9,400
(568)
-
(1,957)
(2,700)
-
57,250
(180,299)
(310,649)
190,459
-
-
2,000
(24,509)
-
27,706
-
-
9,800
-
-
14,500
(31,931)
-
(1,863)
-
-
120,000
-
-
23,501
(241,007)
(310,649)
639,966
(628,007)
-
1,050,813
148,036 639,966
300,662 1,050,813

Page 34

Manchester City Galleries Trust

(A Company Limited by Guarantee)

Notes to the Financial Statements For the Year Ended 31 March 2022

19. Statement of funds (continued)

Restricted funds are funds that have been provided in support of specific projects. The Trust holds sufficient resources to enable each fund to be applied in accordance with the restriction and can be itemised as follows:

Zochonis Trust: charitable donation specifically to support the gallery's Learning and Engagement Programme.

Clore Duffield Foundation: charitable donation specifically to support post-covid recovery work with the children and young people.

Ashetton Bennett: donation to support the further development of the gallery's silver collection.

Art Fund: donation towards acquisition of artwork by Deborah Roberts.

S McFayden: donation towards acquisition of artwork by Deborah Roberts.

V&A Purchase Fund: donation towards acquisition of artwork by Deborah Roberts.

Contemporary Art Society: donation towards acquisition of Jeremy Deller film.

The Bloxham Charitable Trust: charitable donation towards acquisition of Jeremy Deller film.

V&A Purchase Fund: donation towards acquisition of Jeremy Deller film.

Paul Mellon - Speech Acts: charitable donation to support of the Speech Acts Exhibition.

Manchester Contemporary Acquisition Fund: donation toward the acquisition of artwork for the Manchester Contemporary Collection.

University of Manchester: Payment of part of ACE grant to support partnership Suzanne Lacy exhibition.

The Art Fund: donation to support the Graysons Art Club exhibition.

Heritage Lottery Funding - Collecting Cultures: grant to develop costume collection.

The Ampersand Foundation: charitable donation to support the Derek Jarman: Protest! exhibitions

Culture Recovery Fund: DCMS grant to support the gallery through closure due to Covid-19 pandemic, including re-start costs and covering commercial losses.

Francis Winham (Making Conversations): grant to support transport and refreshment costs for participants in the Making Conversations engagement programme.

Paul Hamlyn Foundation: Explore and Test grant secured to undertake a learning and engagement project focused on Platt Hall, developing activities and models for the hall's re-imagining as a community museum.

National Heritage Fund (Trading Stations): specific donation for the Trading Stations "How Hot Drinks Shape Our Lives" - Engagement project.

Sylvia Adams (Healthy Baby Stay & Play): grant towards running the Healthy Child Drop-In and Baby Stay & Play events.

Page 35

(A Company Limited by Guarantee)

Manchester City Galleries Trust

Notes to the Financial Statements For the Year Ended 31 March 2022

19. Statement of funds (continued)

ECFC Funding for Platt Hall Project: grant from the Esmeé Fairbairn Collections Fund to fund a project using Platt Hall gallery and its collections to test and develop a new sector leading model as the UK's first fully user-generated museum.

The Clothworkers’ Foundation: charitable grant to support the creation of a new Fashion Gallery at Manchester Art Gallery.

The Costume Society: grant towards the conservation of a specific item in the Dandy Style exhibition.

20. Analysis of net assets between funds

Analysis of net assets between funds - current year

Tangible fixed assets
Current assets
Creditors due within one year
Total		 Unrestricted
funds
2022
£
122,233
1,264,647
(410,432)
976,448		 Restricted
funds
2022
£
-
511,211
-
511,211		 Total
funds
2022
£
122,233
1,775,858
(410,432)
1,487,659

Analysis of net assets between funds - prior year

Tangible fixed assets
Current assets
Creditors due within one year
Total		 Unrestricted
funds
2021
£
97,086
478,400
(164,639)
410,847		 Restricted
funds
2021
£
-
639,966
-
639,966		 Total
funds
2021
£
97,086
1,118,366
(164,639)
1,050,813

Page 36

(A Company Limited by Guarantee)

Manchester City Galleries Trust

Notes to the Financial Statements For the Year Ended 31 March 2022

21. Reconciliation of net movement in funds to net cash flow from operating activities

Net income for the year (as per Statement of Financial Activities)
Adjustments for:
Depreciation charges
Dividends, interests and rents from investments
Decrease in stocks
Increase in debtors
Increase/(decrease) in creditors
Net cash provided by operating activities
22.
Analysis of cash and cash equivalents
Cash in hand
23.
Analysis of changes in net debt
Cash at bank and in hand		 At 1 April
2021
£
1,014,072
1,014,072		 Group
2022
£
436,846
38,531
(176)
-
(77,289)
245,193
643,105
Group
2022
£
1,593,675
Cash flows
£
579,603
579,603		 Group
2021
£
759,551
10,380
(88)
3,991
(70,743)
(254,924)
448,167
Group
2021
£
1,014,072
At 31 March
2022
£
1,593,675
1,593,675

Page 37

(A Company Limited by Guarantee)

Manchester City Galleries Trust

Notes to the Financial Statements For the Year Ended 31 March 2022

24. Pension commitments

The group operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the group in an independently administered fund. The pension cost charge represents contributions payable by the group to the fund and amounted to £7,050 (2021: £6,387). Contributions totalling £1,577 (2021: £949) were payable to the fund at the balance sheet date and are included in creditors.

25. Operating lease commitments

At 31 March 2022 the Group had commitments to make future minimum lease payments under non-cancellable operating leases as follows:

Not later than 1 year
Later than 1 year and not later than 5 years		 Group
2022
£
525
-
525		 Group
2021
£
2,499
525
3,024

The Charity had no commitments under non-cancellable operating leases at 31 March 2022.

26. Related party transactions

Key management personnel are considered to be the Trustees of the Manchester City Galleries Trust, the senior management team of Manchester Art Gallery Trading Company Limited and the directors of Manchester Art Gallery Trading Company Limited and Manchester Art Gallery Development Company Limited. None of the directors of Manchester Art Gallery Trading Company Limited nor Manchester Art Gallery Development Company Limited received any remuneration from the Company. None of the Trustees received any remuneration. The senior management team of Manchester Art Gallery Trading Company (who are not directors of the Company) received remuneration of £106,848 (2020: £58,983).

Page 38

Manchester City Galleries Trust (A Company Limited by Guarantee)

Notes to the Financial Statements For the Year Ended 31 March 2022

27. Principal subsidiaries

The following were subsidiary undertakings of the Charity:

Names Company **Registered office ** Principal activity Class of Holding Included in
number shares consolidation
Manchester Art Gallery 04465391 Manchester Art Catering and events Ordinary 100% Yes
Trading Company Gallery, Mosley
Limited Street,
Manchester M2
3JL
Manchester Art Gallery 11901089 Manchester Art Dormant Ordinary 100% Yes
Development Gallery, Mosley
Company Limited Street,
Manchester M2
3JL

The financial results of the subsidiaries for the year were:

Names Income Expenditure Profit/(Loss)/ Net assets
£ £ Surplus/ £
(Deficit) for
the year
£
Manchester Art Gallery Trading Company 1,068,680 (706,942) 361,738 109,569
Limited
Manchester Art Gallery Development - - - 1
Company Limited

Page 39

Issuer

HURST Accountants

Document generated Thu, 15th Dec 2022 14:58:24 UTC

Document fingerprint 6c4dd4ba78677d03908455be8bb2e160

Parties involved with this document

Document processed

Party + Fingerprint

Thu, 15th Dec 2022 16:37:05 UTC Jo Beggs - Signer (301808e91031a30b86d01ef722604bc2) Thu, 15th Dec 2022 16:44:16 UTC John Williams - Signer (38a4ac4d1677ec01d51705dce04bbf5b) Thu, 15th Dec 2022 17:07:14 UTC Helen Besant Roberts - Signer (5b69dddce390fdd76c8d7718619b0d55) Thu, 15th Dec 2022 17:07:14 UTC Joanne flynn - Copied In (635f4ad5cd7d98c13b701e19305247f2) Audit history log Date Action Thu, 15th Dec 2022 17:07:14 UTC The envelope has been signed by all parties. (82.30.251.26) Thu, 15th Dec 2022 17:07:14 UTC Sent a copy of the envelope to Joanne flynn (joanne.flynn@hurst.co.uk). (82.30.251.26) Thu, 15th Dec 2022 17:07:14 UTC Helen Besant Roberts signed the envelope. (82.30.251.26) Thu, 15th Dec 2022 17:06:54 UTC Helen Besant Roberts viewed the envelope. (82.30.251.26) Thu, 15th Dec 2022 17:06:31 UTC Helen Besant Roberts viewed the envelope. (82.30.251.26) Thu, 15th Dec 2022 17:04:45 UTC Helen Besant Roberts viewed the envelope. (82.30.251.26) Thu, 15th Dec 2022 16:44:19 UTC Document emailed to hbr@hurst.co.uk (18.134.158.236) Thu, 15th Dec 2022 16:44:19 UTC John Williams viewed the envelope. (81.152.239.188) Thu, 15th Dec 2022 16:44:16 UTC Sent the envelope to Helen Besant Roberts (hbr@hurst.co.uk) for signing. (81.152.239.188) Thu, 15th Dec 2022 16:44:16 UTC John Williams signed the envelope. (81.152.239.188) Thu, 15th Dec 2022 16:41:59 UTC John Williams viewed the envelope. (81.152.239.188) Thu, 15th Dec 2022 16:37:08 UTC Document emailed to john@1001thelock.com (18.130.19.134) Thu, 15th Dec 2022 16:37:07 UTC Jo Beggs viewed the envelope. (91.235.65.1) Thu, 15th Dec 2022 16:37:05 UTC Sent the envelope to John Williams (john@1001thelock.com) for signing. (91.235.65.1) Thu, 15th Dec 2022 16:37:05 UTC Jo Beggs signed the envelope. (91.235.65.1)

Thu, 15th Dec 2022 16:35:07 UTC Thu, 15th Dec 2022 16:34:57 UTC Thu, 15th Dec 2022 16:34:46 UTC Thu, 15th Dec 2022 15:01:08 UTC Thu, 15th Dec 2022 15:01:07 UTC Thu, 15th Dec 2022 15:00:39 UTC Thu, 15th Dec 2022 15:00:36 UTC

Thu, 15th Dec 2022 14:59:15 UTC Thu, 15th Dec 2022 14:59:15 UTC

Thu, 15th Dec 2022 14:59:15 UTC Thu, 15th Dec 2022 14:59:15 UTC Thu, 15th Dec 2022 14:58:31 UTC

Thu, 15th Dec 2022 14:58:30 UTC Thu, 15th Dec 2022 14:58:24 UTC

Jo Beggs viewed the envelope. (91.235.65.1) Jo Beggs opened the document email. (91.235.65.1) Jo Beggs opened the document email. (91.235.65.1) Jo Beggs opened the document email. (40.94.105.126) Jo Beggs opened the document email. (40.94.89.126) Document emailed to j.beggs@manchester.gov.uk (13.42.66.68) Sent the envelope to Jo Beggs (j.beggs@manchester.gov.uk) for signing. (185.20.130.146) Joanne flynn has been assigned to this envelope (185.20.130.146) Helen Besant Roberts has been assigned to this envelope (185.20.130.146) John Williams has been assigned to this envelope (185.20.130.146) Jo Beggs has been assigned to this envelope (185.20.130.146) Document generated with fingerprint 820c708ebf723b64d89d1c07329ad28b (185.20.130.146) Document generated with fingerprint 6c4dd4ba78677d03908455be8bb2e160 (185.20.130.146) Envelope generated by Samantha Tingey (185.20.130.146)