2023-03-31-accounts

COMPANY REGISTRATION NO: 02422890 REGISTERED CHARTfY NO: 1059678 REPORT & CONSOLIDATED FINANCIAL STATEM MK GALLERY (A COMPANY LI￿￿ BY GUARANTEE) "AC)HZtx4u• 1212023 COMPANIES HCMJSE

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MK GALLERY CONTENTS P2ge Trustees, Re￿)rt Statemeni of Trusiees. Responsibiliiies 14 Independent Auth'tors. Rep)rt to the Members of MK Gallery 15-18 consolid￿ed Siatement of Financial Activities (including Consolidated Income and Extrndi(ur¢ Account) 19 Consolidated and Charitable Company Balance Sheets 20-21 Consolidated Statemeni of Cash Flows 22 Noles to the Financial S(atements 2345

MK GALLERY TRUSTEES, REPORT The Tn]st¢es, who are also Directors of the charity for the purposes of the Companies Act 2{X￿, are pLe￿d to present their annual repon and the audited consokndated f￿anCIal ststements of the charity for the year ending 31 March 2023 which are prepared to meei the requirements for a Direcrors, report and accounts for Companies Act PuT￿S. The financial statements comply with the Charities Act 2011. the Companies Act 2(K)6, the M¢moraJ)dum amd Articles of A5wiation, and A¢¢ounting and Reporting by Charities: S￿ement of Recommended Pra¢ti¢e applicable to ch￿ltieS preparing their accounts in accordamce with the Financioj Reporiing Standard applicable in the UK and Republic of treland IFRS 102). Objects of the charity and publit benefit In consideraiion of strategies and EK)lici￿ of the charity, the Trustees have due regard for the public benefit in accordance with the Clwities Act 2011. The Charity's objects as set out in its Articles of Association are: 'io promo*, mainiain. impTove and advance the educaiion aJ)d understanding of the pubkn'c. particularly through the production and presentation of and engagement with the arts, visual cultute and related areas of creative praciice, and to forn)ulaie, prepare and establish PToje¢ls and sd)emes therefore provided thai all objecrs of the Company shall be of a ehatitable na￿re. 'to present, promotr. organise, provide. manage. and produce a balanced program)me of artislic activity and endeavour. whether on any Premi￿$ of the Company or elsewhere, as are conducive io the promotion. maintenance. improvement. affld advancement of education and nders(anding of the public, and encouragemeni of the aTts, visual culture. and related areas of creauve practice. Chari¢able Purpose MK Gallery's principal charirable purpose is to promote, maintain. irnprove, and advance the education and understanding of the public. panicularly by the pr(Mluction and presentation of and engagement with ihe ans, visual culture, and relaied aJeas of creative practice. Its vision is to be one of the UK'S leading ¢¢ntres for the arts with a national and iniernational reputaiion for artistic excellenee and innovation and to be a culwral beacon for the ciry. Mtssion Th¢ Gallery's mission is". To provide a¢¢ess to high quality. innovative and thoughi-provoking art from around the world and through irs programme. slimulate par(icipation and debate. and bulld relationships between artists and audiences.

MK GALLERY TRUSTEES, REPORT (CONTINUED) Objectives In order to achieve the principa] cbariubk purpose. in ]ine with the vision and mission, the Trnstees set out a sei of objectives: l. Build diversify and increase visiiors to the building aThJ create oppmnilies f artisiiclculrnral engagemeni for everyone in the communiry Deliver a broad raJ)ge of onsitr and digi￿￿ Ey0￿¢S that ¢nabl¢ everyone to enjoy. and rake part in culnwaj activiry b. Develop an audience strategy tha( achieves 50.(KKIF fwrfall across all programmes from a range of visitors that reflects the demographic of the caichment area Develop new progranunes and aciiviiies for children and young people that budd confidence and encourage creativity and critical thi'nkin8 d. Creaie opp)miniues for anists and ¢￿alLy¢S to develop and share their work and reignite their careus post-covid 2. Be ambitious and se¢k paIth¢Tships to deiivu qU￿lty programn￿$ and activkties thai change lives. a. Work in partnership lo develop and strengthen cultural opportunities in Milton Keynes and the South E&st b. Create opp)rlunities for diverse I￿al cornrnunities to develop a sense of ownership and connection with the Gallery and to animate spaces and exchanges with their creative voices. vision. imagin￿lOn, and curiosiry c. Pursue programmes that deliver agathst the health and wellbeing agenda and impact positively on people's lives 3. Be flexible, dynamic, and creauve in the approach io impr(wing financial sustainabiliry and diversiry among our workers. Build a strong 5UStainabl¢ financial to enable innovation and risk-taking in the longer term b. Support appreniiceship5 and paidlunpaid work experience OPF(*tunities to incubate and grow the creative talent pc¥)I Maximise onsite and digital conllnucial op￿rtunitieS aPE￿al io a diverse audience 4. Consider the Gallery's cornllllttnent io environmen￿1 responsibility and how to embed this in the organisation. a. Undersiand MK Gallery's environnKntai impaci and develop a srrate8y to mitigate tha( impaci b. Consider how MK Gallery's programmcs ￿ contribute and infiuence CUTreni debaie at a I￿al and regional level

MK GALLERY TRUSTEES, REPORT (CONTINUED) Public Benefit The Tn]stees confitm thai they have referred to the Cbarilable Commission guidance on public benefii when reviewing the Chariry's aims and objectives as well as futtwe planning of aciivities. Through the delivery of world class exhibitions. engagmg public programmes. and inclusive volunteering activity, the Chariiy has Promo￿￿. MaIn￿lned. improved. and advanced the education and understanding of the public, connecting audiences and participants io currenr and relevant local and global social concerns including race. gender. Briiishness. and immigrdtion. The ChaTity'S priorities a￿ 81igned to its major public funders. Milion Keynes City Council and Arts Council England. Aetivilies and aChieven￿llts during the year Exhibitions.. MK Gallery attracted 114,533 visitors to the gallery in 2022r23, which is up on the previous year. however in 202112022 when the Gallery was still experiencing sorne I{￿kdoWn closures (88.697). Visiiors carne from across the couniry, with a small number of visitors attending from overse&s. The 2022123 exhibiuons prograrnme included the end of 'lngTid Pollard Car￿n Slowly Turning the full run of 'Vivian Maier: Anthology. and Iarry Achiarnrrf)ng: Wayfinder and the beginning of 'Tti¢kster FiguTes'. Sculpture and the Body.. The programme overall attracted significant critical acclaim, with exiensive and high-profile media coverage. especially for Ingnd Pollard, which was nominated for the Turner Prize and Vivian Maier, which w&5 one of the Guardian's lop 5 shows of the year. MK Gallery commissioned Im￿t￿nI new work and worked with many national partners. including Turner Contemporary, Margate and the Baluc, Gateshead. The exhibitions also presented a very diyetse piogtojnme, SUPPOning anisls from minority backgrounds. including Black British and non- binary. addressing pressing s￿la1 issues, and engaging with hard-t(Freach audiences and panners. A high-profde conference and three major publicwions w¢rc also prodwed. 'Vivian Maier.. Anthology, attracied g<MxI audience numbers while the more experimentaI exhibitions proved less popular. Anecdoiaj feedb￿k suggesis that the rise in the cost of h'ving, uncertoinry aboui the value of Contemporary an and changes in audience behaviour post- covid were conttiburory factors. At the same lime. Ihese more coniemporary programmes did have an importani impact thtough social meth'a and wider engag¢ment with the culwral wior and arts induslry.

MK GALLERY TRUSTEES, REPORT (CONTINUED) Activities and athievemtnts during the ytAr (tontinued) Public pro8ramm¢s.' Public programmes conrinued lo build and diversify audiences, crearing enty points and pathways inio the exhibitions; exploring amd celebraiing the creativity of the communliy. and providing commissioning. showcasing and development opporwniries for anists. Outcornes of community patthetships included a 'mAnA fesiival, exploring Muslimness in the Arts: project with young people leaving care and unaccompanied young refugees: and Project Space exhibitions with MK Hindu Association. the Middle Easiern Cultural Group, and the YMCA amongst others. The families programme included 6 th¢m¢d family aciiviry days; during the holidays the team delivered Ihe nauonai Holiday Activiry and Food OIAF) programrne: famlly artist-led activities for May Day and Love Nawre Day and panicipated in Milton Keynes Heritage Open Days: free Explore visiror guides encouraged thildr¢n to explore the exhibitions. and the Young Artist compeiition received over entriu. theatre activities introduced falllllies to pr¢Jluctions aligned io exhibiuon th¢m¢s. The youth offer in¢luded Projects that supported young people facing a range of social and ernotional challenges.. The team delivered.. ARTiculation in partnership with the National Gallery. 12 (h'fferent schools visiied the Gallery. indlcating an improved confidence to learn outside the classroom. rnusic, fllm. fashion, projecis with students from MK College. The tnclusive Practice in the Arts pmgramme included: weekly family 'Art & Us. workshops for families with children with complex and additional needs.. Sensory Boxes a and a rnonihly Supported Studio programme.. half-terni artist-led 'Art Together. family workshops. and Anist-led Sensory Tours which won a Fantastic for Famib"es award. The public programme teajn ajso worked with a group of learning-disabled adulrs io c¢Fdesign and deliver iours for local n¢urTrJiverse adult audiences and partnered with Phoenix Rising. Maclntyre, MK Snap. Camplllll and Art Unjimiied on a Project Space exhibition for Autism Acceptance month. The Gallery offers networking and development opportunities to support the A$s￿late Anists who deliver ihe Gallery programmes. Emerging artisrs were supported through Projeci Spaee exhibitions and anisi commissions including a new interaciive commission for Margaret Powell Square, and a colourful new mural on the Sky Room staircase landing. The team also participated in rhe nationwide project We Are Visible which supported new WOTk by 30 disabled anisis. The music programme ranged from folk io neo soul io opera and fealured partnerships witii MK Festival Fringe, Emr and Glyndebourne.

MK GALLERY TRUSTEES, REPORT {CONfiNUED) Adivities and achievthients during the year {tontitiued) Voluntrering: Bucking th¢ national trend. that suggests volunteering has decreased as a result of ¢ovid, the Gallery recorded 200 volunieers wilh 191 volunteers ￿ving 71(Kl hours of their time 10 support the Ch￿lty,S acrivilies in 2022123. On average 81k90 volunteers gave time each month carrying out such aciivities as invigilallng exhibitions. supporttng family and aduli creative workshops. cinema usher. outreach activity. There were 2289 volunteer opwthnities offered. Trading.. MK G8Jlery's susrainable finance strategy includes the success of the trading subsidiary, MK Gallery Enterprise Ltd. The subsidiary runs the Sky Room Cinema. the Café. the Shop and Priva￿ Hires. In addition, the Gallery made the decision to increase ievenue potential by charging admission for all exhibitions and non¢ducational events. Overall secondary spend was impacted by the low¢r-than<xpected foorfall and it became a key focus to build a CUSTomer base outside of visitors 10 the programmed activity. The Gallery worked with the Chatnber of Commerce and Destinations MK to profile the shift to local products. In the shop products were sourced from I￿al artisr makers and in café local prixlucers and suppliers feawred in the natrauve tha( was posied through parth¢rs' s0¢ia] rnedia. The impaci of this work started to be seen in Q3 for the cafe and is gradually building. Eveni hwe and Catering hosted 239 ¢venis ranging from cornpany event days. weddings, cOnfe￿nee, d networking forums. Utilising the skills sets of an iniernal chef gave the Gallery a USP in the qualiiy of catering ar a reasonable point. September was the mosi successful month. and (he ieam supporied the chaTitable activity by providing meals for 31)0 children through the n￿lO￿al Holiday Aciivity and F(y)d (HAF) prograrnme. The Sky Room Cinema exponeniially ou1￿rf0M1Cd expeciations. Due lo national data regarding indoor leisure upthke the Gallery had pessimisiicaily profiled income for the Cinerna. The family film programme and NT Live screenings were the best tKrforming show5. Ikcupancy remains low. A student collaboration with the Ba Graphic Branding & Identity Course of the University of the Arts London, ¢r¢ated a new Sky Roorn branding in Ime with MK Gallery's brand identiry. This has raised Ihe profile of the Sky Rcrfjm Cinerna. In addition, the Gallery further increased income p)tential by starting to exit from the CultUTe Exemption scheme. a move thai will enable the Gallery to increase the amowit of reclaimed VAT.

MK GALLERY TRUSTEES, REPORT (CONTINUED) Future Developments The Gallery's first year of operation was a peri￿1 of significant Pro￿amme and audience development with foorfall figures exceeding ajj expectations. The impaci of Covid 19 and the Closu￿ of the building in March 2020 presenied numerous challenges for the B0￿d and execuiive across all areas of the business incluth.ng ￿h-flOW. long-terni revenue fvndraising amd public exhibilions and education The Gallery h&8 used 2021-2022 to build back pro￿aMMe. audiences and create more suitable resib.ence wiihin lis trading subsidiary and while visitor numbers are not at pre-covid levels (phenomena experienced acioss the sector). greai inroads have been made to re-establish MK Gallery as aj) ouistaJ)ding venue for visual an programming is socia]ly engaged, locally relevgJ)t and an asset io MK Council. In 2022123, The Gallery WAll redefine its business model b&sed on the feedback received from our visitors, our work with our Pthers (Ans Council England. MK Council) to ensure we are financially resilieni while delivering charitable mI￿10n to a higb standard synonymous with the MK Gallery Brand. Financ¢ Revlew The financial perfornwice for 2022r23 and the financial position on the balance sheet are set out in this report. In particular the Staiemeni of Financial Acriviry (SOFA). which includes tM)th Un￿StrIcted and restticied. shows the perfomiance of the group during 2022123. The principaj ch￿Iry income for the year is made up of unrestricted annual subsidies from Milton Keynes Council rotalling £286,936 (2022: £280,146). and unrestricted funding from Arts Council England of £390,36012022.. £395,807). Funher funds were raised through income generation of £583.706 from. exhibition admissions., exhibition h￿e fees: sales of h'mited-edition artworks; and exhibition catalogues. The Gallery moved to charging admission to all exhibitions to incre&8e revenue with additional access day such as £1 residential Tuesdays and pay what you can Sundays. Total expenditure for the group was £2.216,574 (2022.. £2,393.019) of which £2,032,245 (2022: £2.202,738) was speni on the chariiable a¢tivifies i.e.. operation of the art gallery. This included., £927.690 (2022: £888,522) of staff cosis. £376.63712022: £398,656) of exhibition and educaiion and event prograrnme cosis., £230,464 (2022: £234.(K14) of premises costs. and £279,245 of depreciation (2022: £278,710). The cost of governance activities was £18,1XX) (2022.. £18.(XM)). D1￿ct governamce cosrs hav¢ been included in accordaKe with the SORP 2019 and i￿lUde audit fee$. legal fees. and Tnjsiee expense5. MK Gallery Enterprises Limited. reported a loss of £17.809 (2022: loss of £14,857) which is a better than rhe budgei forecast position. MK Gauery EnteTPTises Limited o￿areS au commercial trading operalions carried out on the Gallery premises. The operations in the subsidiary continued to be reorganised during the year ending in a better than budgeted position. Further plans io incr¢&se yield in each area will support the continued growth of the subsidiary. The Trustees are fully aware of the need to proteci the ChaTiry's funds ￿yOnd the period of commiited support from Milton Keynes Council whilst ensuring that the charity can fulfil the key charitable objeciives in the short and medium iernL

MK GALLERY TRUSTEES, REPORT (CONTINUED) The Charity's fmanciaj forecasrs and Strate￿¢S were examined while pre￿illg the Forward Plan 2023 - 2026; those continue to be monitored and *s(ed through its financial controls and reporrin8 Systems. The year-end financial position for the charitable group (lo the nearest thousand) was as follows.. Unreslri¢ted fvnds carried forward General sutplus Capira] fund Iksignaled fvnds carried forward Capitsl consrru¢tion fund Capital renewal fvnd 195,1 10.gY14.IKJO (3.(K)O) 120,000 283,OtM) Resuicted funds Net assets £12,169.O¢X) GoiDg ¢on¢ern The fitwicial statements have been prepared on an on-going concern b￿1$. Tnjstees consider thai there is reasonable expectaiion that the charithble company and group have sufficient resources to continue in operational existenee for the foreseeable aJ)d for this reason they have adOp￿d the going concern basis in preP￿ing the financial slai¢ment. Reserves policy The tri)stees have considered the le￿] of reserves required to mainrain suffi¢ienl working capacity to operate rhe Gallery in the mosi efficient manner and to meet unforeseen liabiliiies thai may atise. The Trustees have iherefore ¢stablish¢d a reserves trtilicy that aims 10 protecr the Ch￿Iry'S activities from risk of disruprion ai short nolice due to lack of hjnds. They take the view that the nature of MK Gallery's consokn'dated cash flows is such that they have set as a medium-lerni obj¢ciive to rnaintain an untestricted reserve. excluding knefit pension liabilities, ai a level of 6 months operation or £5(K),(KM). At March 2023, restrict￿ fvnds stand at £282.993. and unrestricted funds as £296,364 and designated fvnds at £717,248. Free reserves as of 31. March 2023 were £195.328.

MK GALLERY TRUSTEES, REPORT (CONTINUED) Reserv￿ policy (continued) At 31 March 2023 the building C￿traCt retention remains outstanding. The final contract sum has been agreed between Bowmer & Kirkland and MK Gallery but due lo Covid-19 and closure the reciification period has been exiended. At its meettng on 23 March 2021 the Board agreed changes to the charity's designated funds. The deSll￿ated capital fijnd and PatronslDonations fund was reallwated to the unrestricted capital fund at the amount Tequired to depreciaie the capital asset in full. Any remaining reserves in the fund were allocaied to the general income fund. The designated development fund was reall￿ated to a new £360.(KK) designaied prO￿nrne fund (£120,CI)O peT annum to be drawn down annually lo support prograrnming costs) and a new £600,IXJO designaied capithi renew￿ fund. Any remaining reserves in this fund were allcc*ed to the general income fund. To regain the level of reserves necessary the Gallery will undergo a revlew of income, expenditure, and investsnent in 202312024. In the view of the Trnstees the free reserves are sufficient at ihe curreni lime as the d￿lSIon can be laken to reverse any designattons in the event the funds are needed for general Purposes. tnvLstmtnt Polley Truslees have the power to invesi hjnds no( inimediaiely required from owational purposes such as securiiies or prop¢tTiC5 ￿ they see fit. The underlying investment policy is io accepi only a low-level risK Ih¢refor¢ available funds are invested through a charitable invesmlenl p)rtfolio with Ruffer LLP. MK Gallery operaies a policy of inv¢sTing a minimum sum of £I.0(K).(￿ (plus accumulated value) relating to the cutrcnt Dev¢lopm¢nt Fund long-terni with an investsneni managu. MK Gallery assets are invesied in line with its aims. in such a way thai enables the tnjsl io achieve its goals in both the shon and long lerni. The Trnstees do not wish to adopt an exclusionary policy, but individual investments may be excluded if perceived io confiict with the irnst's purpose. Such insttwctions may be issued to the Investment Manager on behalf of the trust by the Finance and Operations Committe¢.

MK GALLERY TRUSTEES, REPORT (CONTINUED) Assets In the opinion of the Tn￿￿¢s. the chariiable COD]pany's &8sets are sufficieni to fvlfil the obligations of the Charity. Trustee Liability ILsuranee Liabihty Insurance exisis for the benefit of all Trustee Directors. Legal and Administrative Detalls The cI￿lty is MK Gallery (regisiered numixr 1059678) and is constituted ls a private limited compamy limited by guaraJ)iee {regisiered number 02422890) incoqyorated in the UK. The principal and registered addTess is MK Gallery, 3 Thearre Wajk. Cenual Miiion Keyne5. MK9 3PX. All current Tnjsiees sthnd as guaraniors ¢0 the company in the sum of £1 each. Trustees The directors of the clwitable company are its TTUSW for the puryx)ses of chariry law. The Trusiees and Officers s¢rYing during the year were as follows: Chair Elizabeth Gifford Asase Amoah Cllr Carole Baume (resigned I I September 2022) Robin Bradburn (appointed 17 November 2022) Susan C￿bert lappointed 11 Septernber 2022) David Danskin (resigned 7 Novern￿r 2023) Cllr David Hopkins David King Shanika Mahendran {app)inied 17 November 2023) Cllr Pete Marland (resigned 7 November 2023) Roselyn M&scarenhas Fidele Mutwarasibo Neil Smith Anthony Spira (appoinred 20 September 2022) Sarah Westacott Sunits Yeomans Company Secreiary David Danskln (resigned 7 November 2023) Gallery Director Anthony Spira Deputy DIr￿t{X Francis Ranford All current Trustees stand guardntors to the compaJ)y in the sum of £1 each. The trading subsidiary of MK Gallery is MK Gallery EnietPTises Ltd. The Directors of the subsidiary company who served during this year and up to the date of this Tel￿rt weTe: Chair David Danskin (Tesigned 17 November 2023) David King Susan Carbert Anthony Spira

MK GALLERY TRUSTEES, REPORT (CONfiNUED) Advtsers The following acted as advisers io the chaTiry during the year: Bankers Naiionwide Building Sociery Nationwide House Pipers Way Swindon SN38 INW Bankers METRO Bank One Southamplon Row London WCIB SHA Auditor HW East Midlands Audii LLP Woburn Court 2 RadtoTh Road Kempston Bedford MK42 7PN HR Consultants ARC HR Soluiions 44 Blanchland Circle Monkston Mdton Keynes MKIO 9GP Solicilors HCR Hewitsons 51>60 Station Road Cambridge CBI 21H Aceountants Monico Tunley Ltd 19 Goldingron Road Bedford MK40 3JY Struclurfy Governanc¢ and Man*gemenl MK Gallery, established in 1999 1$ Milton Keynes Theatte and Gallery Company. 15 a company limited by guarantee and a registered ch￿lty governed by its Memorandum and Articles of A$s￿lation which were f¢)rnally adoptrd on 20 February 2014. The Board of Tn)stees has rcsp)nsibiliry for the ongoing strategic direction of MK Gallery and its subsidiary MK Gallery Enterprise Ltd. overseeing finances and approving the budget, working with the Gallery Director and Depuiy Dire¢tor in the developmeni and irnplementauon of policy to meet the Gajjery's Obj￿IS and to ensure it meet5 Its statutory duThes. The Board meei at least four times a year and a Finance and Operations Committee meets on a quallerly basis. Day ro day management is delegated to the Gallery Director, Anthony Spira. the Deputy Director Francis Ranford, and the Senior Leadership Team: Niki Braithwaite, Head of Public Progtammes, Fay Blan¢haTd, Head of Exhibitions. Sam Matthews, Head of Marketing and Audience DevelopmenE and Andrew Papworth. Head of C￿e￿illg and Events. Thistee (Director) recruitment The Articles provide that two directors shall be appointed who are members of Milion Keynes City Council in accordance with the nomination of the eity council. Other directors may noi be mernbets or officers of the Ciiy Councll and may be appointed afteT recommendation of the Director5 afier they have considered.. Making such a recommendation after the advertisement of the vacancy and the response to an advertisemeni. Aiming for a board of Directors with a range of skills, expeTiente. and abilities relevant 10 the objectives and acttvities- and Aiming for a board of Directors that is repr&￿en￿lIve of Milion Ke￿¢s. Each Trustee suves for a three-year terni from the d￿¢ of his or her appointmeni. The Trnstees may resolve ro re-appoini a Trustee for a h)rther ienn. The exceptions to thi.s rule are Trnstees nominated by Milton Keynes Council, who are appointed on an annual basi5 and the Gallery Direcror. who has been appointed as company Director as per the ametknlments to the Articles in 2022. 10

MK GALLERY TRUSTEES. REPORT (CONTINUED) New Trustees receive induction and training through meetings with the Chair. Director. and stsff of the C1￿1¢Y and through receipt of the Charity Commission's The Essential Trusree, a copy of the charity's Articles of A$s￿laU0n and other key internal d(Kuments incluthng the mosi recent Business Plan and Board papers. As the charitable company is Jlmiied by guaTant¢e. not having any share capitsl. none of the TN51e¢s hold any interest in the charitable company or hold any right to subscribe to shares. Remuneration of Key managen￿nI Personnel Renumeration of managemen( personnel is sei by comp￿lsOn internally with similar posis and. when possible, benchmarknng with sin]ilat organisations through peei netwo￿$ such as Plus Tate. Inclusive employer MK Gallery is committrd to being an in¢lusiv¢ employer. ensuTiDg baniers to employment are removed and that the working environmenl is an opm safe place io work. This year {2023) the Gallery has achieved Disabiliry Confident Fanployer s¢alus and plan to 4yly io level 2 next year. Related parties None of the Trustees receive remuneration or other benefit frorn Iheir work with the clwity. Any conne¢tion between a Trustee or senior manager of the chasity with an artisi, contrdctor, perfomier or other supplier must be disclosed to the fvll Board in the same way as any other conttactual relationship with a related party. The chaTiry'S wholly owned subsidiary. MK Gally Trading Limited. w&$ established in 2CQ2 to undertake some or ail of d)e commercial acuvities of MK Gallery. The Board authorised the se(-up of a new trading company. MK Gallery Enrerprises Lirniied, in Ociober 2018 for all the Gajlery's rrading activities. The Board started meeting regularly from 2019 to review the Gallery's comme￿Ial acuvities.

MK GALLERY TRUSTEES, REPORT (CONTINUED) Risk Management The Tmstees actively and regularly review the major risks to which MK Gallery is exposed and have implemenied pr(Kedur¢s 10 manage and minimise any impact should 8ny of the idenlifi¢d risks marerialise. A Risk Management policy. supported by an orgamisational risk register, is maintained setting our an assessment of th¢ likelihood and irnpact of risk with required actions idenufied to manage risK wlll'ch is monitored no less than quarterly. The Ttustees sarisfirAI that there are clear lines of delegation and authoriry to teams regaTding risk management and that the team are aware of the need to address risk in their are& Key risks are". Thteat ro fitwicial slabiliry with stand still core funding, a more competitive fundraising landscape. an unsEabl¢ financial rnarket. rising costs of g(MJJs and services and the impact to cosr of living on our ¢usiomers and tearns. A reduced capaciry learn leading io more mental bealth ii5ks &8 individuals take on more work in order io maintain a qualiry cul￿ra] serviee. Unstable ￿litical clitnate in which the ans are r￿1 PfiOTitised as a leading economic sector in the UK. A need io refurbish and ttfresb rr services. and integral capital lie[￿$ such &8 Air Handling Units. boilers. etc. Fundraising aetivities MK Gallery aciively pursues fvnding fTom grant makers (trusts. fOund￿lOnS. and public fundcrs), corporate sponsors￿'pS and individuals to fund charitable activilies. Mk Gallery works with others to increase the fvndraising opportunities including academic partners, speciajist 8￿t0[ organisations, ch￿itieS thai align with the purpose and community partners. The Gallery offers the option to pft aid admission charges. and io make donations online ￿ onsitr ai one of the donation stations. MK Gallery does not employ the services of professional or commercial fundraisers. MK Gallery does not take street collections c( telephone campaigns. Where Mk Gallery collects personal infomiaiion. this is managed in line with our Da(a Protect Poii¢y. 12

MK GALLERY TRUSTEES, REPORT (CONTINUED) ststeD￿nI of Disclosure of Information to Auditor In so far as the Tntstees are aware: (a) th¢r¢ is no relevant snfornmtion of which the wup's wditor is unaware. 8nd (b) the Twsttts have taken all the steps that they ought lo have tsken to make themselves aware of any relevant audit inforniion and to es(ab]ish the audiior is aware of th& infOrn￿ti0n. Auditor A resolution to reappoint HW Easi Midlands Audit LLP as audiior to the Charity and to authorise the Truses to fix their remuneration will be prop)sed ai the next Genera] Meeting. This report has been prepared under the special provisions of Part 15 of the Cowies Aci 2006 relating to small entities. Approved by the Board and signed on its behAlf by E Giiford Chairman D#te: 21n2ratr23 ij

MK GALLERY STATEMENT OF TRUSTEES. RESPONSIBILITIES The TDJsiees (who are also tbe directors of MK Gallery for the purposes of compaJ)y law) are resrm)nsible for preparing the Trustees. Report and the financial statements in accordan¢e with applicable law and United Kingdom Accounting Standard5 (United Kingdom Generally Accepted Aceouniing Pracllce). Company law requires the trusiees to prepare financial siatements for each financial year, which give a trne and fair view of the state of the affairs of the charitable company and the group and of the incoming resources and applieatton of resources. mcluding the income and expendiwre. of the charitable company and the group for that period. In preparing these financial siatemenls, the trustees are required to: select suitable accounling policies and then apply them consiS￿n[lY. observe the m¢ihods and ptinciples in the Ch￿RtIeS SORP 2019 (FRS 102): make judgements and estimates that are re&sonable and prudenr. stai¢ whether applicable UK Accounting Standards have been followed, subject io any mat¢tiai dePar￿re$ disclosed and explained in the financial sthtements.. prepare the fmancial statements on the going concern basis unless it is inappropriate to presume Ihat th¢ Ch￿ilable cornpany wjll continue in operation. The ttwstees are responsible for keeping adequate accounting records that disclose with Teasonable accuracy at any time the financial position of the ch￿itable company a￿d the group and enable them to ensure that the financial statements comply with the Companies Act 2(￿6. They are ajso responsible for safeguarding the assets of the charitable company and the group and hence for iaking reasonable steps for the prevention and deiection of fraud and other ]￿egulaTIties. 14

MK GALLERY INDEPENDENT AUDITORS, REPORT TO THE MEMBERS OF MK GALLERY Opinion We have audited the financial statements of MK Gallery (the 'pareni charitable eompany.) and its subsid1￿leS (the 'group') foT the year ended 31 March 2023 which comprise of the Consolidated Statement of Financial Activities. the Consolidated and Charitable Company B8Jance Sh¢els, the Consolidated Siatemeni of Cash Flows and notes to the fitwiciai statements, incluth'ng a summary of significant accounting ￿licies. The financial reponing framework thai has been applied in the preparation is applicable law and United Kingdom Accounting Standards. including Financial Reporting Stalld￿ 102'The Financial Reponing Siandard applicable in the UK and Republic of treland" (United Kingdom Generally Accepied Accounting Pra¢ti¢e). tn our opinion, the financi21 staiements: give a true and fair view of the state of the group's and of the parent charitable Company's affairs as at 31 March 2023 and of the group's income and expendiiure for the y¢¥ then ended. have been properly prepared in a¢ccth¢ with United Kingdom Generally Acccpied Accouniing Practice. and have been prepared in accordance with the requirements of the Companies Act 21x16. Basls for oplnlon We conducted our audit in accordance with International Standards on Auditing (UK) (ISAS (UK)) and apphcable law. Out responsibilities under those standards are further described in the Audiror's responsibilities for ihe audit of the fulancial siaiemenis section of our report. We are indeEYndeni of the chariiy in accordance with rhe ethical requirements that are relevant io our auth'i of the financial siaiemen(s in the UK ]￿ludIng the FRC'S Ethical Standard and we have fulfthed our other ethical responsibililies in accordance with these requirements. We believe that the audii evideKe we have ob(ained is sufficient and appropriate to provide a basis for our opinion. Conclusions relating to going concern In audiring the financial statemenis. we have concluded that the tsijsrees, use of the going concern basis of accounting in the prepardtion of the financ￿1 statemenrs is appropriate. Based on the work we have perfornied. we have n¢X identified any material uncertainties relating io events or Conditions that, individually or collectively, may casi significant doubt on the group and pareni charitable company's ability to continue as a going concern for a period of at I￿$t twelve months frotn when the financial statements are authorised for issue. Our responsibilities and the reswnsibiiities of the ttusiees with resFct to going concern a￿ described in the relevant sections of this [C￿t. Other information The other information comprises the inforniaiion included in the Trustees Report. other than the rinancial statements and our auditor's report thereon. The rrust¢es are responsible for the other inforniation contained within the annual report. Our opinion on the financial statements does not cover the other infornjation and. except to the exltnt otherwise explicidy siaied in our repoff, we do not express any forni of assurance eonelusion thereon. Our responsibility is 10 read the other infornation and, in doing so, consider whether the other infomiatton is rnaierially inconsisrent with the financial srarements or OUT knowledge obtained in the course of the autht or otherwise aPpe￿S to be maierially missiated. If we ideniify such rnaterial inconsistencies or apparent maieriaj missia(emen(s, we are required to dererniine whether this gives rise io a material misstatement in the financial statements themselves. If, based on ihe work we have ￿rfOrnicd, we conclude thai there is a material missthiement of ihis other Infom￿tion. we are required to Teport thai fact. We have nothing to retM)rt in this regard. 15

MK GALLERY INDEPENDENT AUDITORS, REPORT TO THE MEMBEILS OF MK GALLERY Opinions on other matters prescribed by the Companies Acl 2006 In oui opinion, based on the work undertaken in the course of the audit.. the infornation ￿Ven in the Tn)stees' Report, which includes the Directors. Report prepared for the purposes of company law. for the financial year for which the f￿anCial staternents are prepared is consisteni with the fjnancial siaiements. and the DIT￿loTs, Report included withi.n the Trustees. RerK>rt has been prepared in acmrdance with applicable legal requirements. Matlers on whieh we arn required lo report by exception In lighi of the knowledge and understanding of the group and the parent ch￿ltY and its ¢nvironm¢nl obrained in the course of the audit, we have not identified material Mis￿atementS in the Dire¢iors' Repori included within the Trustees. ReFM)rt. We hav¢ nothing to report in respect of the following matters in ￿lation io which the Companies Act 2006 requires us to report to you if. in our opinion: adequ￿¢ and proper accounling records bave not been kept, or returns adequaie for our audii have noi been Teceived from branches not visited by us: or the parent chariry financlal sthiements axe noi in agreem¢Dt with the aecouniing records and certain disclosures of fntstees. remuneration specific by law are not made", or we have not received all the inforrnation and explanations we require for our audit; or the Trnstees were nor enEiiled lo prepare the fulancial staternents in accordance with the small companies regime and Take advantage of the small companies. eKemp(ion in preparing ihe Trnstees, Report and from the requirement to prepare a Strate￿¢ Report. Responslbililies of Trustees As explained more fully in the Statement of Trustees. Resp)nsibilities sei out on page IS, the Tnjstees (who are also ihe direciors of rhe parent chariry for the purposes of company law) are responsible for the preparation of the fmancial siaiements and for being satisfied thai they give a tn)e and fair view. and for such internal control as the trtustees detern)ine is necessary io enable the prepar*ion of financiaj statemenrs ityat are free from matrrial missiaiement, wheth¢r 10 fraud or error. In preparing the financial sratements. the trusie¢s are r¢stK>nsible for as$essing the group's and the pareni chariry's abiliry io continue as a going concern, disclosing, as applicable. matters related (o going concern and using the going ¢on¢ern basis of accounting unless the trustees either in(end to liquidate the chariry or lo cease operdtions, or have no realistic aiiernative bur to do so. Auditor responsibilities for Ihe audil of the financial statemenls We have been appointed auditor under the Companies Act 2(K)6 and report in accordance with this Act. Our objectives are to obtain re&wnable assurance aboui whether the financial statements a whole are free from material misstatement. whether due to fraud or error, and ro issue an audilor's report that includes our opinion. Rewnable assurance is a ￿"gh level of assurance, but is not a guarantee thai an audil ¢onducted in accordance with ISAS (UK) will gjways deieci a m￿eri8J misstalement when it exists. Misstatemenls can arise from fraud or error and considered material if, individually or in the aggregate, they could reasonably be expected io inAuen¢¢ the economic decisions of users taken on the basis of these financial staiemenis. 16

MK GALLERY INDEPENDENT AUDITOILS, REPORT TO THE MEMBEILS OF MK GALLERY Auditor responslbllllles for audit of Ihe financlal statements (continued) Irregularities, including fraud. are insiances of non-compliance with18ws and regulauons. We design procedures in line with our resp)nsibiliti<s. (xrtl1t￿ a￿Ve. to detect m￿er￿al missla￿￿en(S in respect of irregularities. including fraud. The S￿ifiC prithlurts for this engagement al￿ the ex￿nt to which these are capable of detecting ]￿egularl11ts. including fraud is detailed below: We obtained an un(krslanding of the nanwe of the sector in whith the clwitabie company group operaies, including the legal and regulatory framework applicable io the Charitable company group. We consider that the most significant are the Ch￿ltieS St81ement of Recommended Pracuce, the Financial Rew)rting Standard applicable in the Uniwl Kingdom and Republic of IT¢laDd (FRS 102). the Charities Act 2011 and the parent charilable company's Memorandum and Atti¢les of AS￿latiOn. We obtained an understsnding of how the Ch￿l¢able ￿rnPany 8TOUP complics with these requirements by discussions with those charged with goven)an¢e and reviewing the minutes of Trustee meetings. We &ssessed the risk of material mlssiatement of the financial statemenrs, including the risk of material missth*menl due to fraud and how il might (Kcur. by holding discussions wilh those charged with governance. We inquired of those charged with governance about their own identification and assessment of the risk of irrc8uiariti¢s. including any known actuaL suspected or alleged instances of fraud. We discussed matters about non-compliancc with law5 and regulations and IM)w fraud might occur including asse&stnent of how and where the fin8Dcial statements rnay b¢ susceptible to IT￿gUlarItieS or fraud. B¥ed on this understanding. we designed stttific appropriate audit procethlres lo identify instances of non-compliance with laws and regulations. This included making enquiTies of management and those eharged with governance and obtaining additional corroborative evidence as tequired. Because of the inherent Jimirations of an audiL thcrc is a risk we will not (ktect all irregularities, including those leading io a Ma￿rial missthtemeni in the financial Slatemen￿ or Don-compliance with regulation. This risk increases th¢ more that compliance with a law or Teguiation is removed from the events and transactions refleC￿d in the financial staletnents. as we will be less lthely to bewme aware of insiances of non4ompliance. The risk is also greaier regarding irregularities occuning due io fraud rather than error. &$ fraud involves itiieniional eoDcetheni. forgery. collusioffj omission or misrepresentation. A fvtther descrip(ion of our responsibilities is avallable on the FRC'S website at.. hri :Ilwww. c.01 .uklauditorslaudii-assurancelauditor-s-r¢s nsibditses-for-the- i-of-rhe- fvdescri tion-of-the-auditor%E2%80%99s-res nsibilities-for. This description forn￿ pan of our authior's report. 17

MK GALLERY INDEPENDENT AUDITORS, REPORT TO THE MEMBERS OF MK GALLERY Use of the audft report Thi5 report is made solely lo the clwitabl¢ Company's m¢mb¢rs as a EX￿ in ac£ordance with Chaptrr 3 of Part 16 of the Companies Act 20(￿. Our audi( work has been undertaken so that we might stsie to the cornpany's members those matters we are required to stat¢ to them in an auditor's rew)rt and for no other purpose. To the fijuesi exienr pern)itted by law. we do nol acttpl or assutne resp)nsibility to anyone other thaj) the group and the group's members as a body for our audit work. for this report. or for the opinions we have f(ffmed. 14w) Év)k bALt Alberto Di Loren20 (Senior Stamtory Auditor) for and on behalf of HW E&81 Midlands Audii ILP Accountants and Statutory Auditor Woburn Court 2 Railton Court Kernpsion Bedford MK42 7PN Date: 21112r21123 HW East Midlands Audii LLP is ¢ligibk th aet a5 an auditor in tenns of sectioti 1212 of the Compani¢s Act 2(M)6. 18

MK GALLERY CONSOLIDATED STATEMENT OF FINANCIAL ACTIvfTIES aNCLUDING CONSOLIDATED INCOME AND EXPENDITURE ACCOUNr) FOR THE YEAR ENDED 31 MARCH 2023 A$ rtstattd Total 2022 Unrestritted Restricted funds funds Total 2023 Notes Income: In¢omefrom chwytabk activi¢ies.' Grants and donauons Other income 866,761 58,543 224.507 1.091,268 58,543 1,695,992 43.856 I￿orneIrO￿ other trading ￿tivItIes." Commercia( trading operations 419.502 419.502 378.868 InveSth￿nt income 58 58 Total i￿O￿e 224 07 2 118 724 Expenditure: Raising funds 184.329 184,329 190.281 Expendithr¢ on charitable acliviti¢s." Operation of art gallery I.7￿.308 271,937 2,032,245 2,202,738 Total expendlture 637 271 37 16 Unrealised gainlooss) OD investsnents 279 279 110 136 Net ineomtJ(txpendlture) {599,494) (47,430) {64Q92A) (164,159) TrnA8fers behveen funds 69,523 (69.523) Net movement in fwids for the year {529.9711 (116953) 1164,159) Reconeiliation of funds: Total funds brought forward 12.416.322 399.946 12.816,268 12.980,427 Total funds c2rried forward 21, 22 11,886JSi The notes on pages 23 to 45 also forn] part of these financial siatements. 19

MK GALLERY CONSOLIDATED AND CHARrrABLE COMPANY BALANCE SHEETS (COMPANY NUMBER 02422890} AS AT 31 MARCH 2023 Group Charitable company As restated 2022 Notes 2023 2022 2023 Fixed assets: T￿n￿ble assets Investmenls Tol￿ r￿ed assets 16 17 10.747,2(K) 1.444,925 11192,125 11.068,284 1.756.413 iU24ffjY7 10.747,21XI 1.445.125 12.192J25 11.068.284 1,756,6l3 12,824,897 Stock Debtors Cash ar bank and in hand Total current assets 27.916 212.551 61.371 301038 35.569 143.878 151.206 330.653 10,528 333.255 48,898 392,681 10,239 313.614 18 391069 Liabilities: Creditors falling due within oney 19 324,619 339.082 314 626 317,271 Net turrent assets I (liabilities) (22,781) (8A291 78,055 74598 Total assets less current liabijiiies 12.169.344 12.816.268 12.270,380 12,899.495 Net assets 12.169J44 12816268 12270,&80 12,899,495 The funds of the thaTIty: Unrestricted funds General income fund General capital fund Designaied funds Total unresuicted fun(Is 21 21 21 195,328 10.973.775 717.248 11,886,351 362.4(kS 11.216,661 837,255 12.416,322 296,364 10,973,775 717,248 11.987,387 445,633 11,216.661 837,255 12,499,549 Restricted funds Restricted income funds Total Testricted fijnds 21 282,993 282.993 399.946 399.946 282,993 282.993 399,946 399,946 Total charity funds 22 12,169J44 12.816268 12370J80 12.899.495 The noies on pages 23 to 45 also forn) part of these financial statements. 20

MK GALLERY CONSOLIDATED AND CHARITABLE COMPANY BALAIYCE SHEETS (COMPANY NUMBER 02422890) AS AT 31 MARCH 2023 {CONTtNUED} These financial staternents have ￿en prepa￿1 in accordomcc with the s￿CIal provisions of Part IS of the CompaJ)ies Act 2(M)6 relaiing io small companies. Approved by the boart authorised for issue aDd slgned on its i￿1￿￿bY E Gifford Date: 21112r2023 21

MK GALLERY CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2023 Group Charitsble company As reststed 2022 2023 2022 2023 Cash flows from operating aclivities: Nei movement in fvnds Less interesi ineome shown in investing activities Add depreciatiotL Ltss unreallsed galnladd unrealised loss (Increase)IDecrease in stock Decrease in debtors Increasel(Decre&8e) in crethiors Add investmeni managemeni fees paid from fixed assei portfolio NÈt ￿$b used in operating activitits (646,924) (164,159) (629,115) (149,178) (58) 279,245 (8) 278.710 (58) 279,245 (8) 278,710 1279) 7,653 (68,673) (14,463) (110.136) 12,048 (51.557) 1367,086) {279) (289) (19.641) (2,645) (110,136) 13,858 (112,120) (386,778) 17,767 18,336 425 732 (447 16 Cash flows from inv¢%tiDg aetivi¢ies: Interest received Net disposals of listed investments Adjustment to previous fixed asset addition5 Purchase of iangible fixed &ssers Ne¢ cash provided byllwed in) investing activities: 58 294.(KKI 58 294.(KK) 42,954 1,115 42,954 1.115 174.049 A74,049 335￿97 (174,041) 335097 (174,041) Change cash and equivalents in the ytar {89035) (557093) (19.1181 1621 JS7) Cash and cash equivalents at the beginning of the year 151,206 709.099 68,016 689,373 Tolal cash and cash equivalents at ihe end of the year 61 151 22

MK GALLERY NOTES TO THE FINANCIAL STATEMENrs FOR THE YEAR ENDED 31 MARCH 2023 l Ac¢ounting policies Basis ot prtparatfion The financial statements have been prepared in accordance with Accounting and Reporting by Charities.. Statement of Recommended Praciice applicable to charities preparing their accounts in ￿cOrdance with the Fitwiclai Reporting Standard appbcable in the UK and Republic of Ireland (FRS 102) (effecttve l January 2019) - (Chatities SORP IFRS 102)), the Financial R¢poning Siandard applicable in the UK and Republic of Ireland IFRS 102) and the Companies Act 21XhS. MK Gallery constiNi¢s a publi¢ benefit entity as defined by FRS 102. Gw concern The financial statements have been prepared on a going concern basis under the hisiorical cosi convention, modified to include certain items ai fair value. Assets and liabilities are iniiially recognised ai hisiorical cosi or transaciion value unless otlKrwise stated in the relevant accounting policy note. The Trustees Consider the going concern basis to be apprwate due to the CUTreni level of reserves and the fact the chariiy raised all necessary ￿ndS needed for the capitgj projeci wbich. at the end of the year. was complete. b) Group fmancial statements and b&sis of eoLsolidation These financial siaiemenis Consolidate the results of the ch￿lty and its wholly owned subsid1￿les, MK Gallery Ente￿riseS Limited and MK Gallery Trading Linuted, on a line- by-line basis. A sep￿ate siaiem¢ni of financial acttvities and income and expenditure accouni for the charity itself has not been presented itself because lh¢ clwiry has taken adva￿tage of the exemption afforded by section 408 of the CompaJ)ies Aci 2LX)6. Volunteers and donat￿ services and f￿]litieS The value of services provided by volunteers Is noi incorporated into these financial siaiements. Further details of the contiibution made by voluntrers can be found in the ttustees, annual report. d) Short tern) employee IRnefits When employees have rendered service to the clwity, short-terni employee benefits to which the employees are entitled are recognised at the undiscounred amouni expected 10 be paid in ¢x¢hange for thai Service. The charity operates a defined contribution pension scheme. Conrriburions payable 10 the charity's pension scheme are chatged to the statement of financial activiiies in the period to which they relate.

MK GALLERY NOTES TO THE FINANCIAL STATEMENIS FOR THE YEAR ENDED 31 MARCH 2023 Income Voluntary income including donatioJ)s. ￿fts and legacies and grants that provide core fvnding or are of 8eneTal na￿re are recognised where there is entitlement. certainry of re¢¢ipt and the arnounl can be m¢asur¢d with sufficieni reliability. Such income is only deferred when: The donor specifies the grant or donation musi only be used in fiirure accounting periods. or The donor has in)posed conditions which be mei before the chatiry has unconditionaj enutlement. Grants and donarions for capiraj pUr￿￿S are recognised on a receivable b&sis. Income from commercial uading activiiies is recognised as earned as the related goods and setvices are provided. Investhienl income is reco￿lSed on a receivable basis. Income from chati(able activities includes income received under contract OT where entiilement io ￿an1 fiinding is subject io specific perfomiance c¢)nditions and is recognised as earned as the related services are provided. Grant income included in this category provides ￿TrdIng io supp)rf perfonnance acuviues and is recognised where there is ¢nutl¢rnent. Certainty of receipi and the atnount can be m¢&sured with sufficieni reliability. ]ncome is deferred when ￿f0mlance r¢la(ed grants are received in advance of the exhibitions or education programmes to which they relate. Expenditure EXpendin￿e is recognise41 when a liabiliry is incurred. Conwacwal arrangements and perfomiance related granis are recognised as goods or services are supplied. Other grant payments ¥e r¢cognis¢d when a ConStn￿￿WC obligation ajises that results in the payment being unavoidable. Costs of generating fijnds are th05e costs incu￿ed in attracting volunw income and those incutred in trading activities ihat raise funds. Expendinwe on capira] items is capitah'sed and included within fixed assets when it becomes payable. Charitable activities include expendirure fflated to the overall administration and development of the an gallery complex in Milton Keynes. IE includes both the direct Costs and support costs relating ro these activities. Governan¢¢ Costs include those incurred in the governan¢¢ of the charity 8J]d ils asseis and are ptimarily &ss¢xiated with constitutional and statutory requirements. 24

MK GALLERY NOTES TO THE FINANCIAL STATEMEIYTS FOR THE YEAR ENDED 31 MARCH 2023 l Accounting policies (continued) Expenditure (eonlinued) Expenditure is classified under activity headings relating to the exhibition programme, the educauon programme and the events programme of the chan"ty. EXpendI￿re that is Thot directly attributhble io each activiry is aP￿rtiOned between the activiiies of the charity according to crireria apprOPri￿t to the nature of the expenditure. Expenthttwe 15 all(Kated to support costs using the bases siaied in noie 9. g) trr¢toveral* VAT All expendinwe is clwified under activity headings thai aggregate all cosis related 10 the category. IrTe¢oveTable VAT on revenue expenth.ture Is included within support costs and ]￿ecOverable VAT on capital costs is capitalised as pan of the cosi of the fixed assei. h) Fixed assets and depreciation Tangibl¢ fixed asseis UDd¢r the cost m(xlel aTe stated at historical cost I￿$ accurnulated depreciation and any accurnulated impairnient losses. Dep￿CIall0n is provi<kd to writr off the cost of tangible fLxed &sws over their esrimaied useful economic lives as follows.. ProiKrty Improvements und¢T the course of constructi¢)n Capital cons1￿ctiOnS Furniture. fittings and equipmeni Computer ¢quiprnent Nor dw¢¢iated 1.25% on cost annum 20% on eosi ￿ annum 33% on cost per annum i) Fixed asset investments Inves¢m¢ni income is accounted for when due. Realised gains and105ses aTe accounted foT by reference to the sale proceeds and either the Jasi balance sheet valuation, or the cost of the purchase if lateT. Unreaiised g￿n$ and losses are ca]culaTed by wmparing the previous balance sheet valuation, or cost of purchase if later, to the valuation at the year end. i) nancial iLstnllnents Debtors and creditors with no sthied intrrest rate and receivable or payable within one year are recorded ai transaction price. Any losses ￿lsing from impaitnrnt recognised in the statement of financial activities in supw)rt cosis. Cash at bank and in hand consists of cash and amounts held in bank accounts.

MK GALLERY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 l Actounting poliaes (eontinued) k) Funds Th¢ company h&$ the following fvnds: Unrestrictedfvnds.. These represent funds w￿Ch can be expended as the Ttustees see fit. in accordance with the charitable objects of the company. Desi8natedfundf.' These are funds sei aside by the Ttijstees out of unrestricted general funds for specific future Put￿seS or wjjects. Restricred incomefunds.. These represeni incorne received. which can only be expended for the purpos¢ sFcified by the don¢x. Unrestricted capitalfunds." The chan'ty's restiicted c4)ital funds are those raised for the apital project. Atmua] depreciatson is charged against the fvnd. The closing balaJ)ce represents funds held in the restricied capitsl projeci fLxed wet and equates to the net book value of the &ssociated restricted fixed asse(. 2 Key aregs of judgement and eStin￿te In applying the accounling policies, the Trustees have made critical accounting judgments. estimates and assumprions. These estimatrs and assumptions are based on knstorical experience and are reviewed on a coniinual basis. Acmai results may differ from the estimaies. The estimates and underlying assurnptions are reviewed on ongoing basis. Revisions lo accounting estimates are recognised in the tKriod in which the estimaie is revised where the revision affecrs only that period, or in the period of the revision and fijnwe periods where the revision affects both current and fubjre Fnods. The rotal cost of the capiral project has been broken down using component acci)unting to include the shoner life asseis Witkn"n the category of fvrniwre, fi￿1￿8S and equipment rather than capital constructions. The &8sets have been categorised according to their useful lives which have been eh(Isen to reflect the expecred life of th¢ ¥set and are then depreciated accoTdingly. There are no indications of impainnent of the capital constructions. 3 Limited liability The company is limited by guarantee and therefore has no share capital. The liability of the members is limiied by guaraniee io £1 each. 26

MK GALLERY NOTES TO THE FINANCIAL STATEMEMS FOR THE YEAR ENDED 31 MARCH 2023 4 Comparative Slatement of Finalle￿ Activities The Consolidaied Statemeni of Financial Activities for the year ended 31 March 2022 is presenied for illustraiive purp)ses. Unr&stricted Restricted As Restated funds funds To¢al Noles Income.. Incomefrom charirable activilies.. Grants and donaiions Other income 1.086.552 fA)9.440 43.856 1,695.992 43.856 InCon￿froM (Jiher Irading acriviries." Commercial trading operations 378.868 378,868 Investh)ent income Toiat income 1.51yJ,284 (th,440 2,118,724 Expenditure.. Raising fijnds I￿,281 190.281 Expenditure on charirable activilies.. Operation of art gallery 1.869.382 333.356 2,202,738 Total expenditure 2.059.663 333,356 2.393,019 u￿ealISed 005sygain on investn￿nts 110 136 110136 Net incomel(expendittwe) (440.243) 276,084 (164,159) Transfers between funds ll￿.774 (100.774) Nei movement in ￿ndS for the year 339.469 175,310 164.159 Reconciliation of funds: Total funds brought forward 12,755,791 224.636 12,980,427 Total fun(Ls carTied forward 12,416,322 399,946 12 816.268 The unrestric(¢d funds balance of £12,416,322 is tnade up of £l1.579,067 income and capi￿1 fvnds and £837,255 designated funds. 27

MK GALLERY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 202J Voluntary income 2023 IGroup) Restricted Capital 2023 Unr¢strided R¢stri¢ted 2023 2023 Total 2023 Grants receivable: Milton Keynes Council: Deed of Variation Gallery subsidy Other granis Trusts and foundations Publi¢ grants Arts Council England Total grants reeeivable Donations 206.936 80,0(K) 206.936 80,C 142.922 33,5(M) 7.053 183,475 41,032 142.922 33,500 397,413 860.771 230,497 390.360 677.296 189.465 866,761 224,507 1.091.268 2022 (Group) Restricted Capitsl 2022 Unrestricted Restricted 2022 2022 Tolal 2022 Grants receivable: Miiron Keynes Council: Deed of V•iation Gallery subsidy Other grants T￿StS and foundations Public grants Arts Council England Total grants reeeivable Donations 195.146 85,(KM) 195,146 85,0 383.51J) 139.130 74.500 597.130 12,310 403,5(K) 259,567 470,307 1.413,520 282,472 120.437 395.807 816,390 270.162 1,086,552 1.695,992 Under a hisioTiC agreement with Miiion Keynes Councll, the Council undertook to provide the company wilh an gJ)nual subsidy of £IIXI,O(Ki towards the gallery's operational costs. As ai 31 March 2023. a total of £2.369.998 (2022.. £2,369,998) has been received since 1998. Of this, £80,000 is included in Ihis year's financial statements which is lower than the previous ye (2022.. £85,IXJO) due to a reduction in funding. A further agreement with Milton Keynes Council commenced in November 2011 to provide an index-linked grant of £150.000 per aJJnum under a Deed of v￿latiOn. £206.936 has been in¢lud¢d &5 income in the year ended 31 March 2023 (2022: £195.146). Under its NPO scheme A￿ provided the company with a grant of £3￿.360 rowards gallery operaiional costs for the yeaT ended 31 March 2023 (2022: £395.807). There were severaj public granis receiv￿ during the year toward the costs of charitable activities including grants for the capiial projeci from A￿ and Milion Keynes Council. 28

MK GALLERY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 Investment income from awrent 9&sets Group 2023 2022 Deposit interesi receivable Bank interest receivable 58 58 Investment intome from fixed asset investments Group 23 2022 Unrealised goin￿(lo$s¢s) on listed investments portfolio 279 110,136 110,136 279 Costs of generating funds Unreslricted RestrictÈd 2023 2023 Group 2023 Group 2022 Commerciaj rrading operations Investment managernent ftts 167,289 17.(hl0 167,289 17,040 171.945 18.336 Total expenditu￿ on costs of generallng funds 184.329 184,329 190.281 Ail figures for 2022 rel￿t io unrestricl¢d funds. 29

MK GALLERY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 Analysis of expendiiure on charitable activities Exhibitions E4lucation and running and eveDts the Gallery programme Total 2023 Exhibition cosis Event costs Education delivery costs Ptemises costs Marketing and development costs Travel costs Depreciation Siaff cosls Other stsff eo$is Supp)rt costs (see noie 9) Governance ¢osts (see note 9) 376,464 376,464 173 173 92.186 69,139 161,325 51,620 628 139,622 565,788 38.714 470 111,698 139,409 90,334 1,098 251,320 705.197 153,026 10,8(Ki 275.307 7,2 428,333 18.(K)O Total expendiwrc on chariiable a¢liviriGs 642.110 2.032,244 Expenditure on chariiable activities was £2.032.244 (2022: £2,202,738) of which £184,077 (2022.. £180,473) was restricted in respect of eX￿"bIll0n costs, £68,032 was restri¢ted in respect of educauon and event C05t5 (2022: £70.061). £11.980 was restti¢ied in respeci of development costs (2022: £60,412). £4.8(K) was restricied in respect of premises costs {2022.. £3.690) and £5,196 was restricted in respect of support costs (2022: £18,720). Th¢ remaining amouni of £1,7(rf1,308 (2022: £1.869,382) was unrestrictrd. l(Ki% of support costs are aU(Kated to expenditure on charitable activities. Jo

MK GALLERY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 Analysis of support and governance costs 2023 Supp)rt Govern4Dce Totsl 2023 Basis or apportionment Salary cos Other s￿ff costs Travel ¢osts Marketing and development costs Prernises costs Accounfancy- accounts preparaiion services Accovnrancy- ge￿ra1 suppon seryices Audii fees Professional fees Membershipslsubscriptions Trustee insurance Bank charges Depreciaiion Ir￿0verable VAT Sundry cosis IT and telephone costs PTiniing and postage cosis 101.159 16.518 470 I1￿.159 16,518 470 Time spent Invoiced cost Invoiced cost 38.714 69.139 38.714 69.139 Invoiced cost Offic¢ space 3.5(Ki 3,500 Governance 11.918 11,918 9.500 21,712 8,141 1.436 9,654 27,925 33,087 323 81,W9 6.228 Invoiced cost Governonce Invoiced Cost Invoiced cost Governance Total cost Office space Total cost Invoieed cost Invoiced cosi Invoi¢ed cost 9.5(X) 21.712 8.141 1,436 9,654 27.925 33.087 323 81.909 Total 428.333 k8.tK)O 31

MK GALLERY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 Analysis of svpport and governance costs (¢ontiDuedl 2022 Supp)rt Governance Totsl 2022 Basis of ap￿rtIOnment Salary costs Other staff costs Travel costs M￿keting and developmeni costs Premises costs Accountancy- accoun15 preparation services Aceountancy- general support services Audit fees Professional fees Mernbershipslsubscriprions Trnstee insurance BaJ)k charges DepreCI￿10n Irrecoverable VAT Sundry cosrs IT and ielephone Costs Printing and pjstage costs 97.852 7.764 189 102.852 7,764 189 Time S￿nI Invoiced cosi Invoiced cosi 55.969 70,201 55,969 70.201 Invoiced cost Office space 3.5(Ki Governance 10.530 10.530 Invoiced cost Governance Invoiced COSE Invoiced cosl Governance Total cosi Office space Total cosi Invoiced cost Invoiced cost Invoiced cosr 44,053 5,542 1,036 11.028 27.871 98.55 9.030 81.326 6,515 44,053 5.542 1,036 11.028 27,871 98,590 9,030 81,326 Totsl 527,496 18.(t(I io Net itieomel(txpenditiwe) for the year This is stated after charging: Group 2023 2022 Audiiors. remuneration for audil setvices Auditors, remunerdtion for non-audit services Depreciation 9.5Crf) 9500 279,245 278,710 32

MK GALLERY NOTES TO THE FINANCIAL STATEMENIS FOR THE YEAR ENDED 31 MARCH 2023 li Siaff costs Group 2023 2022 Wages and salaries Social securiry cosis Other ￿nSIon costs 802.399 63,537 61,754 768,348 58,788 61,386 927,690 888,522 One ernployee received remuneration in the band £75,(XX) to £85.c￿ during the year (2022.. one in the band £70.1￿) 10 £80.(K)O). Pension cosis in the year for the provision of a defined Contrib￿lon scheme in re$￿et of this employee amounted to £7,282 (2022: £6.976). The charity tswste¢s were noi paid any remunerdllon in the year (2022: £nil). neither were they reimbursed expenses during the year (2022: £nii). The key management personnel of the pareni charity aJ)d the group comwise rhe TTUStees, the Gallery Director, the Deputy Direcior. and the Head of Development and Communications. For the previous ye￿, the key tllanagement ￿[sonnel were the Trus(ees, the Gallery Director. the Depury Direcr(K and the Head of tkvelopmenl and Communications. The total employee benefits of the key management personnel of the charity were £122,080 (2022: £115.021). The average number of persons employed by the group during the year was 43 (2022.. 42). 12 Pension eosts The company and its subsidiary make contriburions into a group of wsonal pensions on beh￿f of their employees. The &ssefs of the scheme are held separately from those of the company. The pension cost charge for the period represented contributions payable by the company and its subsidiary and arnounied to £61.754 (2022: £61.386). At the year end there were contribuuons outstanding of £6,332 which are included in other creditors (2022.. £6,300). Pension cost5 are allLKated to restricted funds when such costs are covered by ffstrided funding. 33

MK GALLERY NOTES TO THE FJNANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 13 Tax8tion As a registered ckwity, tbe company is not in nomial circurnstances subject io CorpOr￿10n i￿. As a result, the Trustees are of the opinion that no Mat￿la1 Cory￿ratiOn tax liability will arise on the a¢tiviues undeT(ak¢n during this year. The following relates to the trading subsidiary's Corporation ￿ charge.. Group 2023 2022 Domesiic Current year tax UK corporation t c￿￿ent tsx charge 2023 2022 Faciors affeciing ihc charge for the year Profil on ordinary activities before taxation Profil on ordinary acriviries before I￿all0￿ multiplied by ihe standard rale of U.K. corporation tax of 19.00% (2022: 19.00%) Eff￿ts of.. Gift Aid donations Capital allowances in excess of depreciation Depreciation in excess of capiial auowances Curreni tax charge The subsidiary MK Gallery Trading Limited's result for the year gives rise to a current tax charge of £nil for the year ended 31 March 2023 (2022.. £nill. The subsidiary MK Gallery Ente￿AseS Limited's result for the year gives rise io a currcnl t charge of £nd foT the year ended 31 March 2023 (2022: £nil). 34

MK GALLERY NOTES TO THE FINANCIAL STATEMEN15 FOR THE YEAR ENDED 31 MARCH 2023 14 Financial activities af the charity The financial activities shown in the consolidated sts(ement it￿]￿deS those of the ch￿Ity'S wholly owned subsidiaries, Mk Gauery Enle￿[iseS Limi(ed and MK Gallery Trading Limited. A summary of the finan¢ial activities by thE chaTity is set out below: As resta 2023 2022 Gross incon)e Toial expendinire Net incolne Total funds brought fonvard Total funds Carried forward 1,150,148 1,849,992 1,779,263 1.999.170 (629.115) {149,178) 12 899 495 13,048,673 12,270,380 12,899,495 Represented by: Restricted income fijnds Designat￿ funds Unrestricted income funds Unrestricted capitsl funds 282,993 399,946 717.248 837,255 296,364 445,633 10.973.775 11216 661 12.270.380 12,899,495 15 Finaneial activities of the trading compaDles The wholly owned trading subsidiajies MK Gallery Trading Limiied (MKGD and MK Gallery Enrerprises Limiied IMKGE), which are incorporaied in the United kn'ngdO￿ usually pay all taxable profils io th¢ cbarity by gift aid. No Gift Aid payment was made in the year so thal fvnds were r¢rained in the subsidiary for use in the following year. The trading subsidiaries operate the art gallery and all coJDrnercial trading operations Ca￿led on at the art gyjlery premises. The charity owns the entire share capital of ordinary shares of £1 each in each ompany. A summary of the trading results is shown E￿lOw. MKGE MKGE 2023 2022 MKGT MKGT 2023 2022 Turnover Cost of sales & administration costs Net loss 419,502 378,868 437.311 393.725 (17,809) (14,857) (124 (124) Amount gifi aided to the chariry Taken to reserves In subsldiary 17.81P) 14.857 124 The assets and liabilities of th¢ subsidiary were: Current assets Current liabiliti ToTal nei Oiabilities)lasseis A￿gate $h¥re ¢apital #nd reserves 44,566 153,746 109.180 109.180 120,548 211.919 91,371 91,371 9.384 (1,140 8.244 8.244 9,384 1,140 8,244 8.244 35

MK GALLERY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 16 Tangible fixed assets Group GTh￿p Group Grrf)up Capltsl FUn￿t￿re, fittings and equipment Computer equipment tiODS Total Cost As at l April 2022_ as ￿stated Additions Adjus(ment Ai 31 March 2023 11.094.066 819,576 l.l15 42,010 11.955,652 1,115 42.954 42,010 11,913.813 {42,954 11.051.112 820,691 Depretiation At l April 2022- as restated Charge for the year Adjustment Ai 31 Ma￿h 2023 419,302 135,412 1,611 443,340 135,2 24,726 10,244 887,368 280,856 1.611 553,103 578.540 34.970 1,166,613 Net book value Ai 31 Match 2023 10.498,CV) 242.151 7,040 10,747.2(x) Ac 31 March 2022- as restated 10.674,764 376.236 17,284 11.068.284 Company CoJDpany Company Compny Capitsl construe- tions Furnitur fi¢¢ings and equipmen¢ Computrr equipment Totsl Cost As at l April 2022_ as restated Addittons Adjustsneni At 31 March 2023 li.094,￿6 810.165 1.115 42.010 I1,946,241 1,115 42,954 42.010 11,9¢M.402 42.954) 11.051.112 811.280 Deprtclatlon At l April 2022_ as restad Charge for the y Adjusmient At 31 March 2023 419,302 135.412 1,611 433,929 l35.2(X) 24,726 10,244 877,957 280,856 1.611 553.103 569,129 34,970 1.157,202 Net b(tyok value At 31 m￿Ch 2023 10.498,(K19 242.151 7.040 10.747,200 At 31 March 2022- as restated 10.674.764 376.236 17.284 11,068,284 36

MK GALLERY NOTES TO THE FINANCIAL STATEMENrs FOR THE YEAR ENDED JI MARCH 2023 16 Tgngible fixed &wets {conlinued) The fixed assets figure bas adjusted to reflect a reducllon in the c05t of the Capital project which was included as fixed asset additions in a Frtvious year. All assets are held for direct charitable puw. 17 Investn)ents Listrd investments held at market value and were valued by Ruffer LLP on the basis of their O￿n m￿k¢1 value as at 31 March 2023. The historical cosi of the investments as ai 31 March 2023 is £556,(XX> (2022". £850,(XM)). All investments are held for charitable activities. Group Shares In subsidiary Listed investments Totsl At l April 2022 Change in m￿ket value Sold in the year Gross investment managemeni fees paid At 31 March 2023 1,756.413 279 (294,(K>O) 117,767) 1.444.925 1.756,413 279 (294,IX)O) (17.767 1,444.925 Company Shares in subsidiary Icost) Ltsted investments (market value) Tot*1 At l April 2022 Change in market value Sold in the year Gross investh)ent managemeni fees paid At 31 M￿Ch 2023 21K) 1.756,413 279 {294,1X)O} (17,767) 1,444,925 1.756,613 279 (294,1)00) 17,767) 1,445,125 21x1 MK Gallery owns all the shares of MK Gallery Trading Limited. a company registered in England under compomy number 04469234. Unaudited accounts have been signed and have been fjled with the Registrar of Companies. A summary of trading results is shown in note 15. MK Gallery also ovrns all the shares of MK Gajlery Enterprises Limited, a company registered in England under company nurnber 11597873. Unaudited accounts have been signed and have been filed with the Re￿straT of Companies. A summary of rrading results is shown in not¢ 15. The chonge in m￿ke1 vajue represenis the gains and losses arising within the p)rtfo]io rnanaged by Ruffer LLP. 37

MK GALLERY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 18 Debtors Group 2023 Company 2023 2022 2022 Trade debtors Prepaymenis Acctued income Amounts owed by group undenakings Other debtors 15.122 82.480 536 27,258 61.825 216 1,780 82.480 536 135.220 17.233 61.825 181.476 114.413 54.579 113,239 53.080 212.551 143,878 333.255 313.614 19 Creditors: amounts falbng due within One year Group Company restated 2022 restated 2022 2023 2023 Trade creditors Deferred income (note 20) Taxation and social securiry AccNals Amounts owed to group undertakings Other crediiors 59.502 75.237 18,888 164,660 84.358 53,635 67,138 18,888 159,250 9.384 72,767 28,875 217.549 18.628 210,192 9.384 6.332 6.300 6.332 324.619 339,082 314.626 317,271 Amounts owed by and io group undenakings unsecured, interest free and repayable on demand. 20 Deferred income Group 2023 CompaDy 24)23 2022 2022 Ba]an¢e at l April 2022 Amount received in the year Amouni r¢l¢as¢d in th¢ ye 279.5(X) 279,500 75.237 (2.IKK)) 67,138 1279.500) (279,5(X)) Balance at 31 March 2023 75,237 67.138 Income is deferred where it rel￿eS to a funwe accounting petiod. 38

MK GALLERY NOTES TO THE FINANCIAL SfATEMENrs FOR THE YEAR ENDED 31 MARCH 2023 21 AJJaly5is of ¢h*ritable lunds Al l Aprll Income Exwditure 2022 Transfers At JI March 2023 Group Unrestrlcted fund movements: Designated funds.. Capital Construction fund Capiial renewal fiu)d Programme fvnd General income fund General capitsj fund Trading Subsidiaties: (2,745) 12,745) 6￿,000 119,993 296,364 10.973.775 240.( 445.633 11.216.661 (7) 925.641 (1.264,433) (242,886) (120,0(Y)I 189,523 MKGT MKGE Total untestricied funds 8.244 (91.471) 419,502 (437,311) l2,4l6.322 1,345,143 {1,944,637} 8,244 (109.280) 11,886.351 69,523 Restric￿d funds (see below) 399,946 224.507 1271,937) (69,523) 282.993 Total funds 12.816.268 1.569,650 (2.216,574) 12,169,344 Company Designated funds.. Capital const￿¢¢1(￿ fund Capital renewal ￿nd Prograttllne fund General income fvnd General capital fund Tolal unrestricied funds Restricred funds (se¢ klow) Total funds (2.745) (2,745) 600,000 119,993 296,364 10,973,775 11,987,387 282,993 12.270,380 240,IJX) (7) 445.633 925.641 (1.264,433) 11,216.661 (242,886) 12,499,549 925,641 (1.507,326) 399.946 224,507 (271,937) 12,899.495 1.150.148 (1.779,263) (120,(XK)) 189,523 69,523 (69.523) 39

MK GALLERY NOTES TO THE FINANCIAL STATEMEKrs FOR THE YEAR ENDED 31 MARCH 2023 21 Analysis of dthritable fun&$ (tontinutd} restated At l April 2022 IDcome Expenditure Transfers At 31 March 2023 Restritted fwids Group and Con)pany Paul Hamlyn Foundation MK Council PorEe Cocheres 75.871 4.818 135.734 (108.627) 102.978 (4,818) (8.£￿)) Kirkjand Foundation Artswork SE Bridge Supp Austin Hope PAlkington 125.(XK) 1,581 125.OC#I (1,581) 5(K) 10.5C (5(X)) {9.148) {3,763) Children in Ne¢d Freelands- Ingrid Pollard Artwork MKCEP Gatheld Wesion 2021 6,541 3,763 2.490 132.444 1.553 10.629 17.375 7.893 (2,490) (36.1891 (1,553) (17.682) (96.255) Arts Council England CRF MK Council Street An Capiral Construction Boyd & Evans Catalogue MK Council Shuuer Project PHF Emergency Fund 2 PAW Supported Studio Bagri Foundation Grant South Asian Mini8nires 7.053 (6.5(H) 10,871 (1.350) (19.188) {11.981) (5.549) (127) (945) (1,350) 6,675 11,796 {591) 23.325 185 22.960 (5,210) 16,820 (127) (945) 1,250 10,000 282,993 Trickster Figures Henry Moore Foundation Toiai Restricted funds 1.250 lo,￿0 224,507 399,946 {271,937} (69,5231 40

MK GALLERY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 21 Analysis ofcharitslAe funds (continued Milton Keynes Council has confirnied tbat for the purp)ses of managing and reporting on their annual granis, tha( the Council do not CODSider or treat those as restticied. The Company must retKYrt regularly on the grant released as a result of new tnanagement arrangements, and comply witb annual Council reponing needs. Name offund Descriptio￿ na1ll￿ and poryose offund Restrleted Funds Paul Hamlyn Foundation To fund a 3 year tfograllut￿ of inclusive 8fis praciice for children with complex n¢¢ds and their families MK Council Porte Cocheres To sup&￿ the Pone C￿here$ project To support the costs of the Holiday Activities and Food Kirkiand Foundation To supp(Yi the cost of exhibition pro8rammes Artswork SE Bridge Sup1￿ To support educational workshops Austin Hope Pilkington To support the costs of exhibiiion programmes To Supp￿ the costs of exhibitions Children in Nc To fimd a 3 year faci]iut¢d artists programme of activity for young pwle with low level rnentsl health relates issues Freelands To suppon the costs of the Ingrid Pollard exhibition Artwork MKCEP To project manage an education and arts sector partnership prograjllme on behalf of AHA MK io engage children from 10 schools including CPD for teachers and arfisis Garfield Weston 2021 To suppon the Covid-19 recovery period through delivery of a programme of activiries to re•engage and build new audiences, and io make improvemenls to physical and digiral infrastNcture io support inwme generation and audience developmenr To SUp￿rt public learning programmes Arts Council CRF To supwjrt the charity in its covid recovery activities MK Council Street Art To suppon the cosrs of the street art projeci Boyd & Evans Catalogue To suppn the costs of the cathlogue I￿oduCtion MK Council Shutier Projxt To sUp￿)rt the costs of the shutter project 41

MK GALLERY NOTES TO THE FINANCIAL sfATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 21 Analysis of charitable fuDd5 (continued) Name of fund D¢ScriptiO￿ nature and purpose of fTrnd Restricted Funds PHF Emergency Fund 2 To assi￿ with the costs of the recovery from the pandemic PAW Supponed S￿di0 To support the Costs of th¢ supported studio Tri¢kster Figures To support tbe ￿sts of exhibition and catalogues Henry Moore Foundation To support the costs of exhibition programmes There were hrther funds for Bagri Foundation and South Asian Miniatures. These fijnds in deficit at the end of the year but the deficii balances will be cleared with fiinding in the following financial year. Designated Funds The designated development fvnd was reajlocated to a new £360,0(Xl designated programme fijnd (£120,0(KJ per annum io be drawn down annually io support progrdmming c95t5) and a new £6CKI,000 designated capital renewal fund. Any Temaining reserves in this fund were allo¢ated to the general income fund. Unrestritted Fund8 The general income fund represents those funth tha( are unrestricted and not desi¥rnated for other purposes. The general capirai fvnd represenrs those fvnds thar are unreslTiCted but represented by capital assets and are therefore noi available reserves. A transfu of £120,(XK> was made from the Progrdmme fund designated fi)nd io the genera] fund lo ffpresent to annua] drawdown to support prOgram￿ng costs. Various transfeTS were made frorn restricied funds to unrestricied fijnds. These relate (o expenditure itL previous years that had been alloCa￿d to ¥Jnrestric*d fvnds insiead of the restricted hjnds from which the amounis had been expended. These IransfeTS toial £69,523. 42

MK GALLERY NOTES TO THE FINANCIAL STATEMEN]S FOR THE YEAR ENDED 31 MARCH 2023 22 Analysis of net assets between funds Group: As restated 2022 Totsl 2023 Total Funds Fun(Ls Fixed assets Investhienis Current ￿se[S Current liabilities 10,747,2 1.444,925 18.845 (324.6191 10.747,2(X) 1,444.925 301.838 (324,619) 11,068,284 1,756.413 330,653 (339,082) 282.993 11886 351 282.993 12.169.344 12,816 268 Company: As res¢a¢ed 2022 Total 2023 Total Fixed assets Invesunents Current assets Current liabilities 10,747.2(X) 1,445.125 109.688 (314.626) 10,747.2 1.445.125 392,681 (314.626) 11,068.284 1,756,613 391,869 (317,271) 282,993 11.987.387 282.993 12,270 380 12.899 495 23 Commitments There is a 99 year I￿t on the Theatre. Art Gallery a￿1 Theatre Square. A nominal rent of £1 each w annum is payable. This lease expires in more than 5 years. Changes to the le￿ artangernents between Milton Keynes Council, Ambassador Theatre Group and MK Gallery mean the three parties are all now signarory lo management arrangements that are enshrined in 8 long lease of 99 years from 18 DecemE*r 2001. Capiral commilments The charity h&$ undertaken a capitsl developmeni PTojecl which is complele apart from the final balance due to the conlractor. At the year end the final balance due for the project was unknown but the clwity is holthng sufficieni ￿serveS K) cover the balance due. 43

MK GALLERY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 2A Related party transactions During ihe year donations of £niJ were received from Trustees (2022.. £nil). There are no other relaied party transaciions during ihe perisxl that require disclosure. The charitable company h&8 taken advanrage of the exemption available in accordamce with Secuon 33 of FRS 102 'Related Party Disclosures, noi io disclose transactions eniered inro between nvo or more members of the group thai are wholly owned. 25 Provisio￿ and contingent liabilities The company has indemnified the purchaser of a lease against any claw back of £8(K).IX)O VAT by HMRC. Thls is only evu Jlkely ￿ arise if the building was Dot to be used as a commercial theatre within 10 years from November 2011. The Trustees consider the likelihood of this O¢CUfAng io be remote and consequently no provision for this liability is considered appropriatr. 26 Prior year adjustment An adjustment was rnade to the figures for the year ended 31 March 2020 in relation to the following a¢¢ounting issues ID the years ended 31 March 2018. 31 March 2019 and 31 March 2020= VAT return errors arose which resulted in £134,205 being payable to HMRC. This meant creditors were understated by this amoun( in the figures originally reported. Fixed asset cosi was overstated by £68,7(Kl as a result of irreeoverable VAT being capiialised in error (relating 10 the VAT return etTors). Accruals and fixed asser costs were both ov¢rsTaied by £197,560 in telation to an a¢cNal for fixed assel addiiions thai was noi necessary. The relevant values in the cOMp￿￿1ve figures have now been adjusted. The effeci of thls adjustment is.. Group Company OpeniTJg res¢rv¢s at l April 2020 (as previously stated) Prior year adjuslment 12.8(%5,667 (190,843) 12,858,710 (190,843) Opening reserves at l Awil 2020 (as restaied) 12.615,824 12,667,867

MILTON KEYNES THEATRE & GALLERY COMPANY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 27 Notes to ihe SlalemeDI of Cash Trlows C2$h and cash equivalents Year ended 31 Marth 2023 Group 2023 Company 2023 2022 2022 Cash and cash equivalents 61,371 151,206 48,898 68.016 Year ended 31 March 2022 Group 2022 Company 2022 2021 2021 Cash and cash equivalents 151.2t 709,099 68,016 689,373 Analysis of changes in net funds- Group 2022 Cash flow 2023 Cash at bank and in hand 151,206 151.206 151,206 89.836 89,836 (89.836) 61,371 61.371 61,371 Analysls of Changes in net fiuMJs- Comp*ny 2022 C&sb flow 2023 Casb ai bank and in hand 71F),099 709,OW 709,099 557 893 (557.893 (557,893) 151,206 151,206 151,206 45