COMPANY REGISTRATION NO: 02422890 REGISTERED CHARTfY NO: 1059678 REPORT & CONSOLIDATED FINANCIAL STATEM MK GALLERY (A COMPANY LI￿￿ BY GUARANTEE) "AC)HZtx4u• 1212023 COMPANIES HCMJSE #142 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 g60 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 inforni*ion 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 Trus*es 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 (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