COMPANY REGISTRATION NO: 02422890 REGISTERED CHARITY NO: 1059678 REPORT & CONSOLIDATED FllYANCIAL STATEMENTS MK GALLERY (A COMPANY LIMrrED BY GUARANTEE) FOR THE YEAR ENDED 31 MARCH 2025 L i*
MK GALLERY coNrENTS Page Trustees, Report 1-13 Independent Auditors, Report to the Members of MK Gallery l£k17 Con501idat¢d Statement of Financial Activities (including Consolidated Income and Expenditure Account) 18 Consolidated and Charitable Company Balance Sheets 19-20 Consolidated Ststement of Cash Flows 21 Notes to the Financial Statements 2244
MK GALLERY TRUSTEES, REPORT The Trustees, who are also Directors of the charity for the purposes of the Companies Act 2006, are pleased to present their amiual report and the audited consolidated financial statements of the charity for the year ending 31 March 2025 which are prepared to meet the requirements for a Directors, report and accounts for Companies Act purposcs and to comply with the requirements of the Charity Commission. Thc fancial statements comply with the Charities Act 201 I, the Companies Act 2006, the Memorandum and Articles of Association, and Accounting and Reporting by Charities: Ststement of R¢commended Practicc applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ir¢land (FRS 102). Objects of the charity and public benefit In consideration of strategies and policies of the charity. the Trustees have due regard for the public benefit in accordance with thc Charities Act 2011. The Charity's objects as set out in its Articles of Association are: 'to promote, maintain, improve and advance the education and understanding of the public. particularly through the production and presentation of and engagement with the arts, visual culture and related areas of creative practice, and to fomiulate, prepare and establish proj¢cts and schemes therefore provided that all objects of th¢ Company shall be of a charitable nature, 'to presen¢ promote, organise, provide, manage, and produce a balanced programme of artistic activity and endeavoiir, whether on any pr¢mises of the Company or elsewhere, as are conducive to the promotion, maintenance, improvement, and advancement of education and understanding of the public, and encouragement of the arts, visual culture, and related areas of creative practice. Charitable Purpose MK Gallery's principal charitabl¢ purpose is to promote. maintain, improve. and advance the education and understanding of the public, particularly by th¢ production and presentation of and engagement with the arts, visual ¢ultur¢, and related areas of creative practice. Its vision is to be one of thc UK'S leading centres for the arts with a national and international reputation for artistic excellence and innovation and to be a cultural beacon for the city. mI10n Thc Gall¢ry's mission is: To provide acces5 to high quality, innovative and thought-provoking art from around the World and through its prowme, stimulate participation and debate, and build relationships between artists and audiences. MK Gallery has three core value that support its vision and mission: Quality- By championing excellence the charity seeks to raise ambition and build confidence. Div¢rsity- The charity welcomes and actively supports inclusivity. Opportunity- The charity is a plarforni for the development and exchange of art and ideas.
MK GALLERY TRUSTEES, REPORT (CONTINUED) Objeetives In order to achieve the principal charitable purpose, in line WAth the vision and mission, the Trustees set out a set of objectives: l. Build. diversify and increase visitors to the building and ¢reat¢ opportunities for artistic/cultural engagement for everyone in the community Deliver a broad range of onsite and digital proaMMe$ that enable everyone to enjoy, and take part in cultural activity b. Develop an audi¢n¢e strategy that achieves 50,000+ footfall across all programmes from a range of visitors that reflects the demographic of the catchment area c. Develop new programmes and activities for children and young people that build confidence and encourage creativity and critical thinking d. Create opportvnities for artists and creatives to develop and share their work and reignite their careers post-covid 2. Be ambitious and seek partnerships to deliver quality programmes and activities that change lives. Work in partnership to develop and Strenen cultural opportunities in Milton Keynes and the South East b. Create opportunities for divers¢ local communities to develop a sense of ownership and connection with the Gallery and to animate spaces and exchanges with their creative voices, vision, imagination, and curiosity c. Pursue programmes that deliver against the h¢alth and w¢llb¢ing agenda and impact positively on people's lives 3. Be flexible, dynami¢, and creative in the apwoach to improving fmancial sustainability and diversity among our workers. Build a strong sustainable financial base to enable innovation and risk-taking in the longer terni b. Support apprentic¢ships and paidlunpaid work experience opportunities to incubate and grow the creative talent pool ¢. Maximise onsite and digital commercial opportuniti¢s that appeal to a divers¢ audience 4. Consider the Gallery's commitment to environmentsl responsibility and how to embed this in the organisation. a. Understand MK Gallery's environmental impact and develop a strategy to mitigate that impact b. Consider how MK Gallery's programmes Can contribute and influence current debate at a local and regional level The charity's objectives are in the process of being reviewed and updated in line with the newly refreshed Business Plan (2025-2028).
MK GALLERY TRUSTEES, REPORT (CONTINUED) Publie Benefit The Trustees confirni that they have referred to the Charity Commission guidance on public benefit when reviewing the Charity's aims and objectives as well as future planning of activities. Through the delivery of world class exhibitions, engaging public programmes, and inclusive volunteering activity, the Charity has promoted, maintaineil improved, and adVall¢ the education and und¢TStanding of the public, connecting audiences and participants to current and relevant local and global social concerns including Tace, gender. Britishness, and iMmiatiOn. The Charity's prioTitics are aligned with its major public funders. Milton Keynes City Council and Arts Council England. Activities and achievements during the year Exhibitions: ll( Gallery attracted 80.744 visitors to the gallery in 2024125, which is down on the previous year (90,741). This is due in part to a national picture of resistance to taking risks on leisure costs. Visitors came from across the country, with a small number of visitors attending from overseas. The 2024125 exhibitions programme included the end of: 'Saul Leiter: an Unfmished World.. Calling 2024,. 'Vanessa Bell: A World of Forni and Colour, and the start of 'Andy Warhol: Portrait of America,. The year presented a broad range of projects ranging from the international to th¢ national to th¢ local, across most artfornis, including photography, painting, applied arts and sculpture. The Saul Leiter and Vanessa Bell exhibitions attracted very widespread acclaim and substantial internationa] media coverage, with five-star reviews and high-profile radio programmes, while our regular open call exhibition, MK Calling, provided an unprecedented collaboration with five Ial communities, including visually impaircd. neurodivergent and Middle Eastern groups. The Warhol ¢xhibition, with thanks to the Artist Room team. Tat¢ and Scottish National Galleries, engaged younger and higheT proportion of local visitors. Public ro mes: The Public Pmgrdmming t¢am and Exhibitions t¢am worked with five communities as part of a ¢o- curating PTOC¢SS for the open, MK Calling 2024. The five groups included MK SNAP, a group of visually impaircd adults, a group of young adult creatives, the Middle Eastern Cultural Group. and Q:Alliance. The family progrdmme included exhibition themed art trabls" weekly afterschool artist-l¢d workshops foT children aged 5-1 l. Adult cr¢ative workshops continued in association with th¢ exhibitions prOamMe and delivered a series of MK Lates, offering infornial learning and social engagem¢nt opportunities for adults. Drawing club continued to offer life drawing sessions on a monthly basis: as part of th¢ Vanessa Bell programme the Gallery offered a series of applied art themed workshops that have provided data to be able to grow the Adult Creativ¢ Workshops regular programme including print making, ¢¢ramics and wreath making. A new partnership with Sip and Paint franchise has been extrem¢ly popular.
MK GALLERY TRUSTEES, REPORT (CONTINUED) Activities and achievements during the year {CODtinued) Public ammes continued Despite the loss of the public programming team, the Gallery w&8 Still able to participate in ARTiculation in partnership with th¢ National Gallery. and 30 different s¢hools and colleges visited the Gallery (down by 2 schools). The Vanessa Bell exhibition was particularly popular with schools in Milton Keynes, The Inclusive Practice in the Arts (IPA) programme at MK Gallery continu¢d to deliver a rich and accessible arts programme for Childre young PpIe, and adults with additional and complex support needs, offering bespoke 1-2-1 workshops, family sessions, sensory tours, and a supported studio for youth. Partnerships with organizations like MK SNAP, St Paul's Catholic School VI Departhi¢n( and The Pace Centre enabled collaborative sensory tours and artist-led workshops. The IPA Team also co- Curated the MK Calling 2024 exhibition with MK SNAP learners and the local VI community, allowing participants to th¢me gallery spaces and select artworks. A major highlight was the Explore, Create, Play: IPA Autumn Symposium, which brought together 50 professionals from national cultural institutions, coinciding with the IPA Family Celebration Day marking six years of impactful inclusive arts work. The programme was fvnded by Milton Keynes Community Foundation, Paul Hamlyn Foundation, Art Fund, and Artist Rooms. The Vanessa Bell conference was sold out in the Sky Room and attracted another 130 attendees online. 10 different speakers presented a wid¢ variety of angles on Bell's work, including new research and scholarship. As part of the access prOamme the Glery delivered, 4 BSL tours. 3 audio described tours. 4 s¢nsory tours and 2 relaxed tours. Public programme activities were delivered this year with support from Paul Hamlyn Foundation, the Paul Mellon Centre, Milton Keynes Community Foundation, Children in Need, the Austin and Hop¢ Pilkington, Garfield Weston Foundation, and th¢ Paul Mellon Foundation. Volunteerin The Gallery Tecorded 235 volunteers with 195 volunteers giving 7,491 hours of their tim¢ to support the charity's activities in 2024125. This is down by 500 hours due to the decr¢as¢ in opportunities available through schools and family programming. On averag¢ 80-90 volunteers gave time each month carrying out such activities as invigilating exhibitions, supporting family and adult creative workshops, cinema usher, outreach activity.
MK GALLERY TRUSTEES, REPORT (CONTINUED) Aclivities and achievements during the year (continued) Trading." MK Gallery's sustainable finance strategy includes the success of the trading subsidiary, MK Gallery Enterprises Ltd. The subsidiary runs th¢ Sky Room Cinema, the Café, thc Shop and Private Hiies. In addition, the Gallery charg¢s admission for all cxhibitions and non-educational evcnts. MK Gallery Enten5¢S Ltd made a profit of £26,931, the first since its opening in 2019. The success was mainly due to tight spending controls and continuous development of our offer in each area. Cinema exceeded expectation, delivering popular shows in partnership with NT Live and the Royal Opera House. The Cafe continued to offer locally sourced produce and has established a parthership with a local brewer, Milk and Beans. which goes from str¢ngth to strength. In linc with current catering tr¢nds the offer caters pr¢dominat¢ly to vegetarian and vegan dietary requirements with a seasonal mcnu change. The shop generated a larger revenue than in prcvious years and proved that cxhibition Telated merchandise is a key strategy to Taising income. This worked particularly with Vanessa Bell as the secondary spend was high with the audience danographic (older, middle Class, day trippers). Private and event hir¢ underperfornicd as a result of resourcing issues whereby ¢ither the Head of Events and Catering or the Events Co-ordinator role was vacant.
MK GALLERY TRUSTEES, REPORT (CONTINUED) Future Developments Th¢ Gallery exceeded expectations in 2024125, ending the year in a profitable position for the f$t time since 2019. This success was driven by the strong, in-depth relationships we have built with our parineTS and stakeholders. Our programme proved highly popular, attracting visitors from across the UK who also engaged significantly with our café and retail offer. Looking ahead to 2025126, the Gallery will focus on building the capacity needed to grow beyond our previous restructures. We will strengthen our capacities in fundraising, learning, and engagement. This will expand our ability to develop meaningful relationships with both the corpordte and leisure sectors to grow our enterprising activities. A newly refreshed Business Plan (2025-2028) sets out clear objectives to deliver world-class programming across ¢xhibitions, public programmes, and cin¢ma. These initiatives will all with the Milton Keynes, tourism strategy, aiming to attract visitors from at l¢ast a one-hour drive of Milton Keynes, while Continuing to deeply engage our local community. The Business Plan also outlines significant growth in our entrepreneurial activities. We will broaden our partnerships with the corporate sector to develop a compelling offer for event hire and corporate hospitslity. This will open new avenues for Corporate investment in our creative programming. The Gallery also aims to further &xtend its reach through a strengthened digital presence. Developing our social media strategy will give us a direct voice to global audiences-faising awareness of a programme rooted in deep global discourse that is also locally relevanL Finance Review The financial perforniance for 2024125 and the financial position on the balance sheet are set out in this report. In particular the Statement of Financial Activity (SOFA), which includes both unrestricted and restrict¢d funds, shows the perforn]anc¢ of the group during 2024125. The principal Charity income for the year is made up of unrestrictsd annual subsidies from Milton Keynes City Council totalling £317,227 (2024: £304,675), and unrestricted funding from Arts Council England of £390,360 (2024: £390,360). Further funds were raised through income generation from exhibition admissions. exhibition hire fees. sales of limited-edition artworks. and exhibition catalogues. Total expenditure for the group was £1,773,110 (2024: £2,109,740) of which £1,616,727 (2024: £1,972,688) was spent on the charitable activities i.e. operation of the art gallery, This included £784,578 {2024: £841,165) of staff costs; £296,052 (2024: £437,047) of exhibition and public programming costs. £262,506 (2024: £277,820} of premises costs. and £161,799 of depreciation (2024: £278,699).
MK GALLERY TRUSTEES, REPORT (CONTINUED) Finance Review (continued) The cost of governance activities was £19,027 (2024: £19.046). Direct governance costs have been includ in accoTdance with the SORP 2019 and include audit fees, legal fees, and Trustee expenses. MK Gallery EnteTprises Limited. ported a profit of £26,931 (2024- loss of £8,088) which is better than thc budg¢t forecast. MK Gallery Enterprises Limited opcrates all commercial trading operations carried out on the Gallery premises. Th¢ budget had been set with ambitious targets and there were high expectations for visitor footfall {down by 9,997 visitors when comparcd to 2023124). Furthcr plans to increas¢ the foorfall to the Gallery will increase the potential for revenue opportUDities. The Trustees are fully aware of the need to protect the Charity's funds beyond the peTiod of committed support from Milton Keynes City Council whilst ensuring that the charity can fulfd th¢ key charitable objectives in the short and medium terni. Th¢ Charity's financial forecasts and strategies were examAn¢d whil¢ preparing the Forward Plan 2025 - 2028. those continue to be monitored and tested through its financial Controls and reporting systems. Financial Summary The year-end financial position for the charitable group (to the nearest thousand) was as follows: Unrestricted funds carried forward G¢neTal sU1S Capital fund Designated ndS carried forward Capital construction fund Capital renewal fund Restricted funds 311,000 10,613.000 (3,000) 600,000 277,000 Net assets £11,798,000 Going ¢oneern The financial statements have been pr¢par¢d on a going concern basis. Trustees consider that there is reasonable expectation that the charitsble wmpany and group have sulricient resources to continu¢ in operational existence for the foreseeable futUTe and for this reason they have adopted the going concern basis in preparing the financial statements.
MK GALLERY TRUSTEES, REPORT (CONTINUED) Resee8 policy The trustees havc considered the level of reserves required to maintain suificient working capital to operate the Gallery in the most cffici¢nt manner and to meet unforescen liabilities that may arise. The Trustees have therefore established a reserv¢5 policy that aims to protect th¢ charity's activities from risk of disruption at short notic¢ du¢ to lack of funds. They takc the view that the nature of MK Gallery's consolidated cash flows is such that they have s¢t as a medium-tern] objectivc to maintain an unrestricted rcscrvc, at a level of 3 months operation or £350,000. At 31 March 2025, restricted funds in the company stand at £277,093, and unrcstricted funds as £401.443 and designated funds at £597,255. Free Teserves of the group as of 31 March 2025 were £311,006. At 31 March 2025 the building contract retention has been resolved with a reserve of £25,000 to resolve fwe curtain failures. To regain the level of reserves necessary the Gallery will undergo a review of income, expenditure, and investment in 202512026. In th¢ view of the Trustees the free reserves are sufficient at the curr¢nt tim¢ as the decision can be taken to reverse any designations in the event the funds are needed for general purposes (see note l). Investment Policy Trustees have the power to invest funds not immediatety required from operational purposes such as securities or properties as they see fit. The undcrlying investment policy is to accept only a low-level risK therefore availabl¢ funds are investcd through a charitable investm¢nt portfolio with Ruffer LLP. MK Gallery operates a policy of investing a minimum sum of £1,000,000 (plus accumulated value) relating to th¢ current Dcvelopment Fund long-terni with an investment managcr. MK Gallery assets are invested in line with its aims, in such a way that enables the trust to achieve its goals in both the short and long tern]. The Trust¢es do not wish to adopt an cxclusionary policy, but individual inves1m¢nts may be excluded if perceived to confiict with the Trust's purpose. Such inslructions may be issued to the Investment Manager on behalf of the Trust by the Finance and Operations Committee. Imiestment in 2025 represented profit of £41,898. The Board made the decision to release £85,000 of funds during the year to invest in high interest accounts to ensure a level of interest in the short terni and to support cashflow. The team continue to research the best investment approach.
MK GALLERY TRUSTEES, REPORT (CONTINUED) Assets In the opinion of the Trustees, the charitable company's assets are sufficient to fulfil the obligations of the Charity. Trustee Liability Insurance Liability Insurance exists for the benefit of all Trustee Directors. Legal and Administrative Details The Charity is MK Gallery (registered number 1059678) and is constituted as a PTivate company limited by guarantee (registered number 02422890) incorporated in the UK on 14th September 1989 and is governed by its Memorandum and Articles of Associations. The principal and registered address is MK Gallery, 3 Theatre Walk, Central Milton Keynes, MK9 3PX. All Current Trustees sLind as guarantors to the company in the sum of £1 each. Trustees The directors of the company are its Trustees for th¢ purposes of charity law. The Trustees and o*ficers serving during the year wer¢ as follows: Chair Eli72beth Gifford Asase Amoah Cllr Robin BTadburn (passed away 14 September 2024) Susan Carbert Natali¢ Drought Cllr Jenni Fetrans (appointed 9 December 2024) Cllr David Hopkins David King Cllr Shanika Mahendran Roselyn Mascarenhas Fidele Mutwarasibo (resigned 19 Decemb¢r 2024) Ranjit Singh (appotnted I l June 2024, passed away 26 May 2025) Neil Smith Anthony Spira Sarah Westacott Sunita Yeornans Company Secretary Natalie Drought (appointed 17 December 2024) Gallery Director Anthony Spira Deputy Director Francis Ranford
MK GALLERY TRUSTEES, REPORT (CONTINUED) The trading subsidiary of MK Gallery is MK Gallery Enterpris¢s Ltd. The Directors of the subsidiary company (who are also Trustees of MK Gallery) who served during this year and up to the date of this report were: Chair David King Susan Cbert Anthony Spira AdviserJ The following acted as advisers to the charity during the year: Bankers METRO Bank One Southampton Row London WCIB SHA Auditors HW Bedford Ltd Woburn Court 2 Railton Road Kempston Bedford MK42 7PN Solieitors HCR Law 50-60 Station Road Cambridg¢ CBI 2JH Accountants Monico Tunley Ltd 19 Goldington Road Bedford MK40 3JY Structsre, Governance and Management Thc Board of Trust¢¢s has responsibility for the ongoing strategic direction of MK Gallery and its subsidiary MK Gallery Enterprises Ltd. ov¢rs¢eing financcs and approving the budge¢ working with the Gallery Director and Deputy Director in the dev¢lopment and implementation of policy to meet the Gallery's objects and to ensur¢ it meets its statutory duties. The BoaTd meet at least four times a year and a Finance and Operations Committee meets on a quarterly basis. Day to day management is delegated to the Gallery Director, the Deputy DITt0[, and the Senior Leadership Team: Head of Exhibitions, Head of Marketing and Audience Development and Head of Catering and Ev¢nts. 10
MK GALLERY TRUSTEES, RPoRT (CONTINUED) Trustee (Director) reernitment The Articles provide that two directors may be appointed by Milton Keynes City Council. Other directors may be appointed after recommendation of the Directors after they have considered: Making such a recommendation after the advertisement of th¢ vacancy and the response to an advertisemcnt. Aiming for a board of Directors with a range of skills, experienc¢, and abilities levant io the objtiveS and activities. and Aiming for a board of Directors that is representative of Milton Keynes. Each Director serves for a thrcc-year terni from the datc of their appointment. The Directors may resolve to re-appoint a Dittctor for a further terni. Th¢ exceptions to this rule DiTCCtors nominat¢d by Milton Keynes City Council, who are appointed on an annual basis and th¢ Gallery Director, who has been appointed as company Director following the am¢ndm¢nts to the Articles in 2022. New Trustees receive induction and training through meetings with the Chair. Director, and staff of the Charity and through receipt of the Charity Conunission's The Essential Trustee, a copy of the charity's Articles of Association and other key internal documents including the most recent Business Plan and Board papers. As the company is limited by guarante¢, not having any share capitaL none of the Trustees hold any Anterest in the company or hold any right to subscribe to shares. Remuneration of Key Management Personnel Remuneration of management personnel is set by comparison internally with similar posts and, when possibl¢, b¢nclllnarking with similar organisations through peer networks such as Plus Tate. Inclusive employer MK Gallery is committed to being an inclusive employeT, ensuring barriers to employment are removed and that the working environment is an open. safe place to work. The Gallcry achieved Disability Confident Employer status in 2023. Related parties Save for the Executive Director, none of the Trustee5 receive remun¢ration or other benefit from their work with the charity. Any connection between a Trustee or senior manager of the charity with an artist, contractor, perfom]er or other supplier must be disclosed to the full Board in the same way as any other contractual relationship with a related party. Th¢ charity's wholly owned subsidiary, MK Gallery Enterprises Limited, was established in 2018 to undertake the Gall¢ry's trading activities.
MK GALLERY TRUSTEESY REPORT (CONTINUED) Risk Management The Trustees actively and rcgularly review the major risks to which MK Gallery is exposed and have impl¢mented procdures to manage and minimise any impact should any of the identified risks materialis¢. A Risk Management policy, supported by an organisational risk register, is maintained setting out an aSsSMent of the likelihood and impact of risk with required actions idcntified to manage risK which is monitored no l¢ss than quart¢rly. The Trustees are satisfied that theTe are clear lin¢s of delegation and authority to tcams regarding risk management and that the team are aware of the nced to address risk in their area. Key risks: Threat to financial stability with stsnd still Core funding, a more competitiv¢ fundraising landscape, an unslable financial markeL rising costs of goods and services and the impact to cost of living on our customers and teams. A reduced capacity team leading to more mental health risks as individuals lake on more work to maintain a quality cultural service. A need to refurbish and refresh IT services, and integral capital items such as Air Handling Units, boilers, etc. The level of restricted funds liability in the ac¢ounW dating back to 2019. Fulldraising aetivities MK Gallery actively pursucs funding from ant makers (trusts, foundations, and public funders), corporate sponsorships and individuals to fund charitabl¢ activities. MK Gallery works with others to IncaSe the fundraising opportunities including academic partners, specialist sector organisations, harities that align with the purpose and community partneTS. The Gallery offers the option to gift aid admission chaTges. and to make donations online or onsite at one of the donation stations. MK Gallery does not employ the services of professional or commercial fundraisers. Gallery doe5 not take street collections or telephon¢ campaigns. Where Gallery collects personal inforniation, this is managed in line with current legislation. 12
MK GALLERY TRUSTEES, REPORT (CONTINUED) Statement of Trustees, Re8ponsibilitie$ The Trustees (who are also the directors of MK Gallery for the purposes of company law) are responsibl¢ for preparing the Trustees, Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company law requires the trnstees to prcpaT¢ financial statements for each fmancial ycar. which give a true and fair vicw of the state of thc affairs of the charitabl¢ company and the group and of the incoming resources and application of resourccs, including the income and expenditure, of the charitablc company and the group for that period. In preparing these financial statements, the trust¢es are required to: select suitable accounting policies and th¢n apply them consistently. observe the methods and principles in the Charitics SORP 2019 (FRS 102)" makc judgements and estimates that are reasonable and prudent. state whether applicabl¢ UK AccountlDg Standards have been followed, subject to any matsrial dcpartures disclosed and cxplained in the fllwicial statements. prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation. The trustees are responsible for keeping adequate accounting r¢cords that disclose with reasonable accuracy at any time the fancial position of th¢ charitable company and the group and enable them to ensur¢ that the financial statements comply with the Companies Act 2006, They are also responsible for safeguarding the assets of the Charitable company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Statement of Disclosure of Information to Auditor In so far as the Trustees are aware: (a) there is no relevant inforniation of which the group's auditor is unaware, and (b) thc Trustees have taken all the steps that they ought to have taken to make themselves aware of any rclevant audit infonnation and to establish that the auditor is aware of that inforniation. Auditor A resolution to reappoint HW B¢dford Ltd as auditor to the Charity and to authorise the Trustees to fix their remuneration will be proposd at the next Gen¢ral Meeting. This port has been pr¢paT¢d under the spccial provisions of Part 15 of the Companies Act 2006 relating to small entities. Approved by the Board and signed on its behalf by E Gifford Chairman Datr: 9 December 2025 13
MK GALLERY INDEPENDENT AUDITORS, REPORT TO THE MEMBERS OF MK GALLERY Opinion We have audited the fllyancial statements of MK Gallery (the 'parent charitable company,) and its subsidiaries (the 'group') for the year ¢nded 31 March 2025 which comprise of the Consolidated Stat¢m¢nt of Financial Activities, the Consolidated and Charitable Company Balance Sheets, the Consolidaicd Statcmcnt of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The fmancial reporting framework that has b¢¢n applicd in their prcpaiation is applicable law and United Kingdom Accounting Standards, including Financial Rcporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" (United Kingdom Generally Accq)tcd AOUnting Practice). In our Opinio the fanCIal statements: give a tru¢ and fair view of the state of the group's and of the parent charitable company's affairs as at 31 March 2025 and of the group's income and expenditure for the year then ended. have been propuly ppared in accordance with United Kingdom Generally Accepted Accounting Practice. and have been prepared in a¢¢ordance with the requirements of the Companies Act 2006. Basls for opinion We conducted our audit in accordance WAth International Standards on Auditing (UK) (ISAS IUK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the fmancial statements section of our report. We are independent of the harity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC'S Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclusions relating to golng concern In auditing the financial statements, we have concluded that the lrnstees, us¢ of the gosng concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work w¢ hav¢ perfornied, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the 0UP and parent charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authoris¢d for issue. Our responsibilities and thc rcsponsibilities of the trnstees with respect to going concern are described in the r¢l¢vant sections of this report. Other infomiation The other inforniation comprises th¢ information included in the Trustees Report, other than the fancIal statements and our auditor's report th¢rcon. The trustees are responsible for the other inforn)ation contained within the annual report. Our opinion on th¢ financial statemcnts does not cover the other inforniation and, except to the extent otherwise explicitly stated in our report, we do not express any forni of assurance conclusion thercon. Our rcsponsibility is to read the other infomiation and, in doing so. consider whether the other inforniation is materially inconsist¢nt with the financial statements or our knowl¢dg¢ obtained in thc course of the audit or othenvise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to detern)ine whether this gives rise to a material misstatemenl in the fmancial statements themselves. If, based on the work we have perfornied, we conclude that there is a material misstatement of this other tnfonnation, we are required to report that fact. We have nothing to report in this regard. 14
MK GALLERY INDEPE]¥DEIYT AUDITORS, REPORT TO THE MEMBERS OF MK GALLERY Opinions on other matters prescribed by the Companies Act 2006 In our opinion, based on the work undertaken in the course of the audit: the infomiation given in the Trustees, Report, which includes the Dircctors, Report prepared for the purposcs of company law, for the financial y¢ar for which the fanCial statcments are prepared is consistcnt with the financial statements. and the Directors, Report included within the Trustecs, Rcport has been prepared in accordance with applicable legal requirements. Matters on which we are required to report by exception In light of the knowl¢dg¢ and underslanding of the group and the parent charity and its ¢nviTonment obtained in the course of the audiL we hav¢ not identified material misstatements in the Directors, Report included within the Trustees, Report. W¢ have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: adequate and proper accounting Tecords have not been kep¢ or returns adequate for our audit have not been Teceived from branches not visited by us. or the parent charity financial statements are not in agreement with the accounting records and returns. or certain disclosures of trustees, remuneration specific by law ar¢ not made; or we have not received all the inforniation and explanations we require for our audiL or the Trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies, exemption in preparing the Trustees, Report and from the requirement to prepare a Strategic Report. Responsibilities of Trustees As explained more fully in the Statement of Trnst¢es' Responsibilities set out on page 13. the Trustees (who are also the directors of the parent Charity for the purposes of company law) are responsible for the pr¢paration of the financial statements and for being satisfied that they give a true and fair view, and t.or such internal control as thc trustees deternlinc is n¢cessary to enable the preparation of funCIal statements that are free from material misstatement, whether duc to fraud or error. In preparing the financial statements, the trustc¢s are responsible for assessing the group's and the parent charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trnstees either intend to liquidate thc charAty or to cease operations, or have no realistic alt¢rnative but to do so. Auditor responsibilities for the audit of the financial statements We have been appointed auditor under the Companies Act 2006 and report in accordance with this Act. Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, wheth¢r du¢ to fraud or error. and to issue an auditor's report that includes our opinion. Reasonabl¢ assurance is a high level of assur&nc¢, but is not a guarantee that an audit conducted in accordance with ISAS (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individua]ly or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. 15
MK GALLERY INDEPNDENT AUDITORS, REPORT TO THE MEMBERS OF MK GALLERY Auditor responsibilities for the audit of the financial statements (continued) IegUlarItIes, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined alK)ve, to detect material misstatements in rcspect of irregularities, including fraud. Th¢ specific procedures for this engagemcnt and the extent to which these are capable of detecting irregularities, including fraud, is dctailed below: Wc obtained an understanding of the nature of the sector in which the cbaritablc company group op¢rates, including the legal and regulatory framework applicable to the charitable company group. We consider that the most significant are the Charitics Statement of Recommended Practice. the Financial Reporting Standard applicable in the United Kingdom and Rcpublic of Irelarjd (FRS 102), the Charities Act 2011 and tbe parent charitable company'5 Memorandum and Articles of Association. We obtsined an understanding of how the Charitable company group complies with these requirements by discussions with those charged with governanc¢ and reviewing the minutes of Trustee meetings. We assessed the risk of material misststement of the fmancial statements, including the risk of material misstatement due to fraud and how it might occur, by holding discussions with those charged with governance, We inquired of those charged with governance about their own identification and assessment of the risk of irregularities, including any known actual, suspected or all¢ged instances of fraud. We discussed matters about non-compliance with laws and regulations and how fraud might occur including assessment of how and where the financial statements may be SUeptIb1e to irregularities or fraud. Based on this understanding, we designed specific appropriate audit procedures to identify instances of non-compliance with laws and rcgulations. This includ¢d making enquiries of management and those charged with governance and obtaining additional corroborative evidcnce as required. Because of the inherent limitations of an audit, there is a risk that we will not detect all irr¢gularities, including those leading to a material misstatcment in the fmancial statemellts or non-compliance with regulation. This risk increases the morc that complianc¢ with a law or regulation is removed from the ¢vcnts and transactions rcflected in the financial statements, as we will be less likely to bccom¢ aware of instanccs of non-complianc¢. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intsntional concea]ment, forgery, collusion, omission or misrcpr¢s¢ntation. A further description of our responsibilities is available on the FRC'S website at: hrt :1/wWw.fi.C.or.l1]auditOrSlaudAt-assuJ.anCe/auditOr-S-rcs oiisibilities-for-tlie-audit-of-the- fddescri 7tion-of-the-auditorO/oE2 /0800/099s-res . onsibilities-t-ot.. This description fornis part of our auditor's report. 16
MK GALLERY INDEPENDENT AUDITORS, REPORT TO THE MEMBERS OF MK GALLERY Use of the audit report This report is made solely to the charitable company's memb¢rs as a body in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent pennitted by law, we do not accept or assume responsibility to anyone other than the group and the group's members as a body for our audit work, for this report, or for the opinions we have formed. Alberto Di Lorenzo (Senior Statutory Auditor) for and on behalf of HW Bedford Ltd Accountants and Statutory Auditor Woburn Court 2 Railton Court Kempston Bedford MK42 7PN Date: 9 December 2025 HW Bedford Ltd is eligible to act as an auditor in tsrn]s of section 1212 of the Companies Act 2006. 17
MK GALLERY CONSOLIDATED STATEMENT OF FINANCIAL AcTIVlEs UNCLUDING CONSOLIDATED INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2025 As restated Total 2024 UDrestri¢ted funds Restricted funds Total 2025 Notes Income: Incomefrom charitable aclivities.. Grants and donations Other income 975,193 184,049 264.225 1,239,418 184,049 1,219,899 210.089 Incopnefrom oiher Irading aclivities.. Commercial trading operations 364,722 364,722 342,069 Investment income 3.555 3,555 667 Total income 1,527519 264,225 1,791,744 1,772,724 Expenditure: Raising funds 156,383 156,383 137,052 Erpendiiure on charitable aclivities.. Operation of art gall¢ry 1,363,610 253,117 1,616,727 1,972.688 Total expenditure 1519,993 253,117 1,773,110 2,109,740 Unr¢alised gainl{loss) on invcstm¢nts 41,898 41.898 Net iDeomel(expeDditure) 49.424 11,108 60,532 (432,271) Transfers between funds 21,702 (21,702) Lyet movement in funds for the year 71,126 10,594 60532 432,271 Reconciliatioll of lldS: Total funds brought fonvard 11.449,386 287,687 11,737,073 12,169,344 Total funds carried forward 21, 22 11,520,512 277,093 11,797,605 11,737,073 The notes on pages 22 to 44 also forni part of these fInancial slatements. 18
MK GALLERY CONSOLIDATED AIYD CHARITABLE COMPANY BALANCE SHEETS (COMPANY NUMBER 02422890) AS AT 31 IVIARCH 2025 Group As restated 2024 Charitable company As restated Notes 2025 2025 2024 Fixed assets: Tangible assets Inv¢stmcnts Total red assets 16 17 10,305,753 1.032,727 11,338,480 10,456,416 1,075,829 11,532,245 10,305,753 1,032,827 11,338,580 10,456,416 1,076,029 11532,445 Current assets: Stock Debtors Cash at bank and in hand Total eurrent assets 33,340 304,806 365,310 703,456 25,884 268,517 136,081 430,482 23,306 415,336 341,001 779,643 13,358 385,493 128,426 527377 18 Liabilities: Creditors falling due within one year 19 244,331 225,654 230,181 205.281 Net current assets I Oiabilities) 459,125 204,828 549,462 321,996 Total assets less current liabilities 11,797,605 11,737,073 11,888,042 11,854,441 Net assets 11,797.605 11,737,073 11,888,042 I154,44] The funds of the cbarity: Unrestricted funds General income fund Genernl Capital fund Designated funds Total unrestricted funds 21 21 21 311,006 10,612,251 597,255 11,520,512 100.145 10,751,986 597,255 11.449,386 401,443 10,612,251 597,255 11,610,949 217,513 10,751,986 597,255 11.566,754 Restricted funds Restricted income funds Totsl restricted funds 21 277,093 277,093 287,687 287,687 277,093 277,093 287,687 287,687 Total cbarity funds 22 11,797,605 11,737,073 11,888,042 11,854,441 The notes on pages 22 to 44 also forni part of these financial statements. 19
MK GALLERY CONSOLIDATED AM) CHARrrABLE COMPANY BALANCE SHEETS (COMPANY NUMBER 02422890) AS AT 31 MARCH 2025 (CONTINUED) These financial statements have been prepared in aOrdanCe with the special provisions of Part 15 of the Companies Act 2006 relating to small companies. Approved by the board, autborised for issue and signed on its behalf by •ul E Gifford Chairman Date: 9 December 2025 20
MK GALLERY CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2025 Group As restatsd 2024 Charitable company As restated 2024 2025 2025 Cash flows from operating a¢tivities: Net movement in funds Less interest income shown in investing activities Add depreciation Less unrealised gainladd unrealised loss (Increase)/Decreas¢ in stock Decr¢ase in debtors Increase/(Decreas¢) in creditors Add investment management fees paid from fixed asset portfolio Net casb used in operating activities 60,532 (432,271) 33,601 (415,939) (3,555) 161,799 (667) 278,699 (3,555) 161,799 (667) 278,699 (41,898) (7,456) (36,289) 18,677 95,255 2,032 (55.966) (98,965) (41,898) (9,948) (29,843) 24,900 95,255 (2,830) (52,238) (109,345) 151010 208 042 135,056 203 24 Casb flows from investing activities: Interest Teceived Net disposals of listed investments Adjustment to previous fixed asset additions Add loss on disposal of invesknents Purchase of tangible fixed assets Net cash provided byl(used in) investiDg aetivities: 3,555 85,000 667 3,555 85,000 667 270,000 270,000 12,891 12,891 100 11,136) (11,136 806) (806) 77,419 282,752 77,519 282,752 Change ID cash and eash equivalents in the year 229,229 74,710 212375 79,528 Cash and cash equkvalents at the beginning of the year 136,081 61.371 128,426 48,898 Total cash and cash equivalents at tbe end of the year 365JlO 136,081 341,001 128,426 21
MK GALLERY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 l Accounting policies Basis of preparation The fmancial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charitics preparing their accounts in accordance with thc Financial R¢porting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective l January 2019) - (Charities SORP (FRS 102)). the Financi Reporting Standard applicable in the UK and R¢public of Ireland (FRS 102) and the Compani¢s Act 2006. MK Gallery constitutes a public benefit entity as defined by FRS 102. Going concern The financial statements have been prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. Assets and liabiliti¢s are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note. The Trustees consider the going concern basis to be appropriate due to the current level of reserves. b) Group financial statements and basis of consolidation These financial statements consolidate the results of the charity and its wholly owned subsidiary, TrK Gallery Enterprises Limited, on a line-by-line basis. A separate ststement of financial activities and income and expenditure account for the charity itself has not been presented itsclf because thc charity has taken advantag¢ of the exemption afforded by section 408 of the Companies Act 2006. Volunteers and donated services and facilities The valuc of services provided by volunt¢crs is not incorporated into these financial statements. Further details of the contribution made by volunteers can be found in th¢ Trnstees, annual report. d) Short terni employee benefits When employees have rendered service to the charity, short-tem employee benefits to which the employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service. The charity op¢rat¢s a defmed contribution pension scheme. Contributions payable to the charity's pension scheme are charged to the statement of financial activities in th¢ p¢riod to which they relate.
MK GALLERY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 NL4RCH 2025 Income Voluntary income including donations, gifts and legacies and grants that provide COTe funding or are of general nature aTe recognised where there is entitlement, certainty of receipt and thc amount can be measured with sufficient reliability. Such income is only deferred when: The donor specifics that the grant or donation must only be used in future accounting periods. or The donor has imposed conditions which must be met befoTe the charity has unconditional entitlement. Grants and donations for capital purpos¢s are recognised on a receivable basis. Income from commercial trading activities is recognised as earned as th¢ related goods and services are provided. tnvestment income is recognised on a receivable basis. Income from charitable activities includes income received under contract or where entitlement to grant funding is subject to specific perforniance conditions and is Tecognised as earned as the related services are provided. Grnnt income included in this category provides funding to support perforn]ance activities and is recognised where there is entitlement certainty of receipt and th¢ amount can be measured with sufficient reliability. Income is deferred wh¢n perfonnance related grants are received in advance of the exhibitions or education programmes to which they relate. ExpeDditure Expenditure is recognised when a liability is incurred. Contractual aangeMentS and perforniance related grants are recognised as goods or services are supplicd. Other grant payments ar¢ recognised when a constructive obligation ariscs that results in the payment being unavoidable. Costs of generating funds arc those costs incurred in attracting voluntary income and those incurred in trading activities that raise funds. Expenditure on capital items is capitaliscd and included within fixed assets when it becomes payabl¢. Charitable activities include expenditure related to the overall administration and development of the art gallery complex in Milton Keynes. It includes both the direct costs and support costs relating to these activities. Governance costs include those incurred in the governance of the charity and its assets and are primarily associated with constitutional and statutory requirements. 23
MK GALLERY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 l Accounting policies (eontinued) Expendithre (eontinued) Expenditure is classified under activity headings relating to the exhibition programme, the education programme and the events programme of the charity. Exp¢nditur¢ that is not directly attributable to ¢ach activity is apportioncd bctwe¢n th¢ activiti¢s of thc charity according to criteria appropriate to the nature of the expenditure. Expenditure is allocated to support Costs using th¢ bases stated in note 9. Irrecoverable VAT All expenditure is classified under activity headings that aggregate all costs rclated to the category. Irrecoverable VAT on revenue expenditure is included within support costs and irrecoverable VAT on capital costs is capitalised as part of the cost of the fixed asset. h) Fixed a&sets and deprlation Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairnlent losses. Depreciation is provided to write off the cost of tangibl¢ fixed assets over their estimated useful economic lives as follows: Propety Improvements under the Course of Construction Capital constructions Furniture, fittings and equipment Computer equipment Not depreciated 1.25 % on cost per annum 200/0 on cost per annum 33 % on cost per annum Fixed asset investments Investment income is accounted for when due. Realised gains and losses are accountcd for by r¢fer¢ncc to the salc procccds and either the last balance sheet valuation, or the cost of the purchase if later. Unrealised gains and loss¢s arc calculatcd by comparing the previous b&lance sheet valuation, or Cost of purchasc if later, to the valuation at the year end. i) Financial instruD]ents Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impainnent are recognised in the statement of financial activities in support costs. Cash at bank and in hand consists of cash and amounts held in bank accounts. 24
MK GALLERY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 l Accounting policie5 (continued) k) Funds The company has the following funds: Unrestrictedfvids." These represent fi]nds which can b¢ expended as the Trustees see fit, in accordance with the charitable objects of the company. Designatedfunds.. These are fiinds set aside by the Trust¢¢s out of unrestricted general funds for specific future pury)os¢s or projects. Restricted incomefunds." These represent incom¢ received, which can only be expcnded for the purpos¢ specified by the donor. Unrestricled capilalfvnds.. The charity's T¢strict¢d Capital funds arc those raised for the capital project. Annual depreciation is charged against the fund. The closing balance repSentS funds held in the restricted capitsl project flxcd asset and equates to the net book value of the associated restricted fed asset. 2 Key areas of judgement and estimate In applying the accounting policies, the Trustees have made critical accounting judgments, estimates and assumptions. These estimates and assumptions are based on historical experience and are reviewed on a continual basis. Actual results may differ from the ¢stimates. The estimaks and underlying assumptions are reviewed on an ongoing basis. Revisxons to accounting estimates are recognised in the period in which the estimate is revised where the revision aff¢cts only that period, or in the period of the revision and future periods where the rcvision affects both current and future periods. The total cost of the capital proj¢ct has been broken down using component accounting to include th¢ shorter life assets within the category of furniture. fittings and equipment rather than capital constructions. The assets have bccn Categorised according to theiT useful lives which have been chosen to reflect th¢ expected life of the assct and are then depreciated accordingly. Th¢r¢ are no indications of impairnient of the capital onstructions. 3 Limited liability The company is limited by guarantee and therefore has no share capital. The liability of the members is limited by guarantee to £1 each. 25
IVJK GALLERY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 4 Comparative Statement of Financial Activilies The Consolidated Statement of Financial Activities for the year ended 31 March 2024 is presented for illustrative purposes. Unreslricted Restricted As Reststsd funds funds Total Notes Income: Incomefrom charilable activities.. Grants and donations Other income 865,690 210,089 354,209 1,219,899 210,089 Jncomefrom other Irading aclivities.- Commercial trading operations 342,069 342,069 Inveslment income 667 667 Total income 1,418,515 354,209 1,772,724 Exp¢nditure". Raising funds 137,052 137,052 Expenthiure on charilable aclivilies." Operation of art gallery 1,623,173 349,515 1.972,688 Total expenditure 1,760.225 349,515 2,109,740 Unr¢alised (loss)/gain on invcstmcnts 95,255 95,255 Net incomel(expenditure) (436,965) 4,694 (432,271) Transfers bWeell funds Net movement in funds for the year (436,965 4,694 432.271 Reconciliation of funds: Total fLmds brought fonvard 11,886,351 282,993 12,169,344 Total funds Caled forward 11,449,386 287,687 11,737 073 The unrestricted fimds balance of £1 1,449,386 is mad¢ up of £10,852,131 income and capital funds and £597,255 designat¢d funds. 26
MK GALLERY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 Voluntary income 2025 (Group) Restricted Capital 2025 Unrestricted Restricted 2025 2025 Total 2025 Grants receivable: Milton Keynes City Council: Deed of Variation Gallery subsidy Other grants Trusts atld foundations Public grants Arts Council England Total grants receivable Donations 242,227 75.000 242,227 75,000 20,000 181,074 25,351 390.360 934,012 305,406 20,000 181,074 25.351 390,360 707,587 267.606 226,425 37,800 975,193 264,225 1,239,418 2024 (Group) Restricted Capital 2024 Unrestricted Restricted 2024 2024 Total 2024 Grants receivable: Milton Keynes City Council: Deed of Variation Gallery subsidy Other grants Trusts and foundations Public grants Arts Council England Total grants receivable Donations 229,675 75.000 229,675 75.000 1,000 160,844 56,293 161,844 56.293 390,360 913,172 306,727 390,360 696,035 169,655 217,137 137,072 865,690 354,209 1,219,899 Under a historic agreement with Milton Keynes City Council, the Council undertook to provide the company with an annual subsidy of £IOO,000 towards the gallcry's opcrational costs. As at 31 March 2025, a total of £2,599,998 (2024: £2,524,998) has bcen received since 1998. Of this, £75,000 (2024: £75,000) is included in this year, s financial statements which is lower than pr¢vious years due to a rcduction in funding. A further agreement with Milton Keynes City Council commenced in November 2011 to provide an index-linked grant of £150,000 per annum under a D¢¢d of Variation. £242,227 has been included as income in the year ended 31 March 2025 (2024: £229.675). Under its NPO scheme Arts Council England ("ACE") provided the company with a ant of £390,360 towards gallery operational costs for the year ¢nded 31 March 2025 (2024: £390,360), There were several public grants r¢ceiv¢d during the year toward the costs of charitable activities. 27
MK GALLERY NOTES TO THE FINANCtAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 Investment income from current assets Group 2025 2024 Bank interest receivable 3,555 3,555 667 667 Investment income from red asset InvlMents Group 2025 2024 Unrealised gainsl{losses) on listcd investments portfolio 41.898 41,898 (95,255 (95,255} Costs of generating funds Unrestricted 2025 Restricted 2025 Group 2025 Group 2024 Commercial trading operations 156,383 156,383 137,052 Total expenditure on costs of generating funds 156.383 156,383 137.052 All figures for 2024 relate to unrestricted funds. 28
MK GALLERY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 Analysis of expenditure on charitable aetivities 2025 Exbibitions and running the Gallery Publie programme Total 2025 Exhibition costs Public programming costs PmiseS costs Marketing and dcv¢lopmcnt costs Travel Costs Depreciation Staff costs Support costs (see not¢ 9) Governance costs (see not¢ 9) 192.086 192,086 103.966 183,754 103,966 78.752 105.002 42.611 660 80,899 354,097 272,620 11,416 31,958 495 64,720 88,088 181,746 74,569 1,155 145,619 442,185 454,366 19,027 Total expenditure on charitable activities 1,059,391 557,336 1.616,727 2024 Exhibitions and rulluillg the Gallery Public programme Total 2024 Exhibition costs Public programming costs Premises costs Marketing and development costs Travel costs Depreciation Staff costs Support costs (see notc 9) Govcrnance costs (see note 9} 317.919 317,919 119,128 194,474 119,128 83,346 111,128 50.433 139 139,349 382,567 277,837 11,428 37,825 104 111,480 137,162 185,225 7,618 88,258 243 250,829 519.729 463,062 19,046 Total expenditure on charitabl¢ activities 1,290,800 681,888 1,972.688 Expenditure on charitsble activities was £1,616,727 (2024: £1,972,688) of which £57,878 (2024: £173,843) was restricted in respect of exhibition costs, £178,116 was restricted in respect of publi¢ programming costs (2024: £165,824), £10,627 was restricted in respect of development costs (2024: £9,065), and £6,496 was r¢stricted in respect of support costs (2024: £783). The remaining amount of £1,363,610 (2024: £1,623,173) was unrestricted. IOOO/o of support costs are allocated to expenditure on charitable activities. 29
MK GALLERY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 Anydlysis of support and governance costs 2025 Support costs Governance Costs Total 2025 Basis of apportiollment Salary costs Other staff costs Travel costs Marketing and development costs Premises costs Accountancy - accounts preparation services Accountancy - general support services Audit fees Professional fees MemberShipSubsC[lpti0ns Trustee insurance Bank charges Depreciation Irrecoverable VAT Sundry costs IT and telephone costs Printing and postage costs 204,833 3,206 496 5,000 209,833 3,206 496 Time spent Invoiced Cost Invoiced cost 31,959 78.752 31,959 78,752 Invoiced cost Office space 3,500 3,500 Governance 3,271 3,271 9,750 7,990 2.525 777 12,864 16,180 2,483 7,234 80,005 Invoic cost Governance Invoiced cost Invoi¢¢d cost Governance Total cost Office space Total cost Invoiced cost Invoiced Cost Invoiced cost 9,750 7,990 2,525 777 12,864 16,180 2,483 7,234 80,005 2,568 Total 454,366 19,027 473,393 30
MK GALLERY NOTES TO THE FllNANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 Analysis of support and governance costs (continued) 2024 Support costs Governance costs Total 2024 Basis of apportioDmeDt Salary costs Other staff costs Travel costs Marketing and development costs Premises costs Accountancy - accounts preparation services Accoiintancy- general support services Audit fe¢s Professional fees Memb¢rships/subs¢riptions Trustee insurance Bank charg¢s Depreciation Irrecoverable VAT Sundry costs IT and telephone costs Printing and postag¢ costs 204,531 2,402 104 5,000 209,531 2,402 104 Time spent Invoiced cost Invoiced cost 37,824 83,346 37.824 83,346 Invoiced cost Office space 3,500 3.500 Governance 4,773 4,773 9,500 12,551 1,860 1,046 9,585 27,870 6,938 (16,549) 84,882 Invoic¢d cost Governance Invoiced Cost Invoiced cost Governance Total cost Offtce space Total cost Invoiced cost Invoiced cost Invoiced cost 9,500 12,551 1,860 1,046 9,585 27,870 6,938 (16,549) 84,882 Total 463,062 19,046 482 108 10 Net incomel(expenditure) for the year This is stated after charging: Group 2025 2024 Auditors, remuneration for audit services Depreciation 9,750 161,799 9,500 278,699 31
MK GALLERY NOTES TO THE FINANCIAL STATEIIqENTS FOR THE YEAR ENDED 31 MARCH 2025 11 Stsff costs Group 2025 2024 Wages and salaries Social security costs Other pension costs 685,336 51.071 48,171 722,661 58,022 60,482 784,578 841,165 One employee received remuneration in the band £85,000 to £90,000 during the year (2024: one in the band £85,000 to £90,000). Pension costs in the year for the provision of a defined contribution scheme in respect of this employee amounted to £7.576 (2024: £7.501). The charity trustees were not paid any remun¢ration in the year (2024: £nil), neither weTe they reimbursed expenses during th¢ year (2024: £nil). The key management personnel of the parent charity and the group comprise the Trustees, the Gallery Director, the Deputy Director, and the Head of Development and Communications. The total employee benefits of the k¢y managem¢nt persomiel of the charity were £133,372 (2024: £132,051). The average number of persons employed by the group during the year was 34 (2024: 34). 12 Pension costs The company and its subsidiary make contributions into a group of rSonal pensions on behalf of their employees. The assets of the schem¢ are held separately from those of the company. Th¢ pension cost charge for th¢ period r¢pr¢s¢nted contributions payable by the company and its subsidiary and amounted to £48,171 (2024: £60,482). At the year end there were ntributions outstanding of £5,052 which are included in other creditors (2024: £6,302). Pension costs are allocated to restricted funds when such costs are covered by restricted funding. 32
MK GALLERY NOTES TO THE FINANCIAL STATEMENTS 'FOR THE YEAR ENDED 31 MARCH 2025 13 Taxation As a registered charity, the company is not in norn)al circumstances subject to corporation tax. As a SuIt, the Trustees are of the opinion that no material corporation tax liability will arise on the activities undertaken during this year. The following relates to the trading subsidiary's corporation tax charge: Group 2025 2024 Dom¢stic current year tax UK cory)oration tax Current lax charge 2025 2024 Factors affecting the tax charge for the year Profit on ordinary activities before taxation 26,931 Profit on ordinary activities bcfore taxation multipli¢d by the standard rate of U.K. corporation tax of19.00 % (2024: 19.000/0 5,117 Effects of: Gift Aid donations Losses brought forward Capital allowances in excess of dcpieciation Depreciation in excess of capital allowances (5,117) Current tsx charge The subsidiary MK Gallery Enterprises Limited's result for the year gives rise to a current tax charge of £nil for the year ended 31 March 2025 (2024: £nil). 33
MK GALLERY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 14 Financial aetivities of the charity The fmancial activities shown in the consolidated statement includes those of the charity's wholly owned subsidiary. MK Gallery Enterprises Limited. A summary of the financial activities by the charity is set out below: As restaled 2024 2025 Gross income Total expenditur¢ Net income Total funds brought forward Total funds carried forward 1,468,920 1.438.898 1,435.319 1,854,837 33,601 (415,939) 11,854,441 12,270,380 11,888,042 11,854,441 Represented by: Restrictcd income funds Designatcd funds Unrestricted income funds Unrestricted capital funds 277,093 287,687 597,255 597.255 401,443 217,513 10,612,251 10 751986 11,888,042 11,854,441 15 Financial activities of the trading company The wholly owned trading subsidiary, MK Gallery Enterprises Limited {MKGE}, which is incorpordted in the United Kingdom, usually pays all taxable profits to the charity by gift aid. No Gift Aid paym¢nt was made in the year so that funds We r¢tained in the subsidiary for use in the following year. The trading subsidiary operdtes the art gallery and all commercial trading operations carried on at the art gallcry premises. The charity owns the entire share capital of l 00 ordinary shares of £1 each in the subsidiary company. A sun]mary of the trading results is shown below. MKGE 2025 IIIKGE 2024 Turnover Cost of sales & administration Costs Net loss 364,722 337,791 26,931 342,069 350,157 (8,088) Amount gift aided to the charity Taken to reserves in subsidiary 26.931 8,088 The assets and liabilities of the subsidiary were: Curr¢nt assets Current liabilitics Total net (liabilitiesyassets Aggregate share capital and reserves 40,963 131,300 90,337 90.337 29,814 147,082 117,268 117,268 34
MK GALLERY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 16 Tangible rued assets Group Group Group Group Capital Furniture, fittings and equipment construc- lions Computer equipment Total Cost As at l April 2024- as restated Additions 11,037,362 811.280 7.922 42,816 11,891,458 3.214 11,136 At 31 March 2025 11,037,362 819,202 46,030 11,902,594 Depreciation At l April 2024 - as restated Chargc for thc year 690,920 137.967 704,898 19,998 39,224 3,834 1,435,042 161,799 At 31 March 2025 828,887 724,896 43,058 1,596,841 Net book value At 31 March 2025 10,208,475 2 972 10,305.753 At 31 March 2024- as restated 10 346 442 106 382 3 592 10,456,416 Company Company Company Company Capitsl ¢oDstru¢- tions Furniture, rittings and equipment Computer equipment Total Cost As at l April 2024 - as restated Additions 11,037.362 811,280 7,922 42,816 11,891,458 3,214 11,136 At 31 March 2025 11,037.362 819,202 46,030 11.902,594 Depreeiation At l April 2024- as restated Charge for the year 690,920 137,967 704,898 19,998 39,224 3,834 1.435,042 161,799 At 31 March 2025 828,887 724.896 43,058 1,596,841 Net book value At 31 March 2025 10,208,475 94,306 2,972 10 305 753 At 31 March 2024 - as restated 10,346,442 106,382 3,592 10 456 416 35
MK GALLERY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 16 Tangible fixed assets {continlled) All assets are held for direct charitable purposes. 17 Investments Listed investments are held at market value and were valued by Ruffer LLP on the basis of their open market value as at 31 March 2025. Th¢ historical cost of the investments as at 31 March 2025 is £201,000 (2024: £286,000). All investments are held for charitable activities. Group Shares in Subsidiary Listed investments Total At l Aprtl 2024 Change in rnaet value Sold in the year At 31 Mah 2025 1,075,829 41,898 (85,000 1,032,727 1.075,829 41,898 85,000 1,032.727 Company Sbares in subsidiary (cost) Listed investments (market value) Total At l April 2024 Chang¢ in market value Sold in th¢ year At 31 March 2025 200 1,075,829 41,898 (85,000) 1,032,727 1.076,029 41,898 (85,100) 1,032,827 (100) 100 MK Gallery owns all the shares of Nlt( Gallery Enterprises Limited, a company register¢d in England under company number 11597873, Unaudited accounts hav¢ b¢¢n signed and have been fded with th¢ R¢gistrar of Companies. A summary of trading results is shown in note 15. MK Gallery disposed of its shares in Gallery Trading Limited, a company registered in England under company number 04469234 which was wound up on 22 October 2024 after c¢asing to trade on 31 March 2021. The change in market valu¢ represents the n¢t gains and losscs arising within the portfolio manag¢d by Ruffer LLP. 36
MK GALLERY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 IARCH 2025 18 Debtors Group 2025 Company 2025 2024 2024 Trade debtors Prepayments Accrued income Amounts owed by group undertakings Other debtors 8.320 51,429 101,078 11,457 44,073 99,573 4,191 50,339 99,678 117,249 2,913 42,983 99,573 126,711 143.979 113,414 143,879 113,313 304,806 268,517 415,336 385,493 19 Creditors: aD)ounts falling due within one year Group Company restated 2024 restated 2024 2025 2025 Trad¢ creditors Deferred income (note 20) Taxation and social security Accruals Amounts owed to group undertakings Other creditors 71,504 11,710 20,517 135,548 59,361 8,712 16,546 134,733 60,827 10,902 20,506 132,894 50,885 385 16,546 131,063 100 5,052 6,302 5,052 6,302 244,331 225,654 230,181 205,281 Amounts owed by and to group undertakings ar¢ unsecured, interest free and repayable on demand. 20 Deferred illcome Group 2025 Company 2025 2024 2024 Balan¢¢ at l April 2024 Amount received in the year Amount released in the year 8.712 11,710 (8,712) 75,237 8,712 (75.237) 385 10,902 (385) 67,138 385 (67,138) Balance at 31 March 2025 11,710 8.712 10,902 385 Income is deferred where it relates to a future accounting period. 37
MK GALLERY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 21 Analysis of charitable funds As restated At l April 2024 Income Expenditure Transfers At 3] March 2025 Group Unrestricted fund movcments: Designated funds.. Capitsl construction fLmd Capital renewal fund Programme fid General income fund General capital fund Trading Subsidiaries: QGE Total unrestricted funds (2.745) 600,000 (2.745) 600,000 217,513 1,204,695 (1,042,467) 10.751,986 (139,735) 21,702 401,443 10,612,251 (117,368) 364,722 (337,791) 11,449,386 1,569,417 (1,519,993) (90,437) 11,520,512 21,702 Restricted funds (see below) 287,687 264,225 (253,117) (21,702) 277,093 Total funds 11,737,073 1,833,642 (1,773,110) 11,797,605 Company Designated funds: Capital construction fund Capital renewal fund Programme fijnd G¢neral income fund Gen¢ral capitsl fund Total unrestricted funds Restricted funds (see below) Total funds (2,745) 600,000 (2,745) 600,000 217,513 1,204,695 (1,042,467) 10,751,986 (139,735) 11,566,754 1,204,695 (1,182,202) 287,687 264,225 (253,117) 11.854,441 1,468,920 (1,435.319) 21,702 401,443 10,612,251 11,610,949 277,093 11,888,042 21,702 (21,702) 38
MK GALLERY NOTES TO THE FINANCIAL sTATlENTs FOR THE YEAR ENDED 31 IkL4RCH 2025 21 Analysis of charilable funds {continued) restated Al l April 2024 Income Eipenditure Trallsfers At 31 Mareh 2025 Restricted funds Group and Company Paul Hamlyn Foundation Paul M¢llon Garfield Weston Kirkland Foundation MK Calling Austin Hop¢ Pilkington MKCF Seeing Diffcrcntly Children in Need MK Gallery 25 Anniversary Gala MK Council Appr¢ntic¢ship MK Council Street Art Capital Construction Boyd & Evans Catalogue MK Council Shutter Project Beyond the Page Conference PAW Supported Studio Bagri Foundation Grant South Asian Miniatures Trickster Figur¢s Jerwood Vanessa Bell exhibition Vanessa Bell conference Stony Stratford Arts Group MKCC Artist Room IPA Anson ChaTitable Trust Artist Room Exhibitions Art Fund - Reimagin¢ Henry Moore Foundation Total Restricted fijnds 104,421 194 15,140 125,000 106.240 {147,989) (67) (9,021) 62,672 (127) 20,000 26,119 125,000 5,000 (4,964) (36) (743) 743 7,604 9,803 30 40 (7,653) (7,887) (1,916) (30) (397) 11,272 5,351 (9,483) (4,529) 2,163 (9,109) 4,800 5,602 3,323 (578) (1,002) (4,934) (3,335) (4,800) 5,602 3,323 2,516 5,000 (1,950) 12 (3,998) 4,934 3.335 700 20,000 17,950 5.000 255 20,000 7.357 i 0,000 3,500 36,016 (20,700) (18,073) (4,562) (249) (4,961) (1,214) (i 0.000) {3,500) (844) 73 (50) 438 (6) 15,039 6,143 35,172 10,000 287,687 (i 0,000) (21,702) 264,225 (253,117) 277,093 39
MK GALLERY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 21 Analysis of charitable fuDds (continued) Milton Keynes Council has confirnied that for the purposes of managing and reporting on their annual grants, that the Council do not consider or treat those as restricted. The Company must r¢port regularly on the grant released as a result of new management arrangements. and comply with annual Council r¢porting needs. Name of fund Description, nature and purpose of fund Restrieted Funds Paul Hamlyn Foundation To fund a 3 year pr0MMe of inclusive arts practice for children with complex needs and their families Paul Mellon To support the Beyond the Page exhibition Garfield Weston To support sustainable programming for children and young people Kirkland Foundation To support the cost of exhibition prOarnMeS Calling Individual donations to support the realisation of MK Calling Austin Hope Pilkington To support the costs of exhibition programmes (CF Seeing Differently To support proamMing for people with visual impairnients to facilitate access to exhibitions Children in Need To fund a 3 year facilitat¢d artists programme of activity for young people with low level mentsl health relates issues MK Gallery 25 Anniversary To support the costs of the 25 Anniversary Gala Gala ( City Council Apprenticeship To support th¢ costs of the apprentice ( City Council Street Art To support the costs of the street art project Boyd & Evans Catalogue To support the costs of the catalogue production MK Council Shutter Project To support the costs of the shutt¢r project Ba1 Foundation To support the Cost of exhibition programmes South Asian Miniatures To support the cost of exhibition programmes Vanessa Bell exhibition To support th¢ exhibition costs Vanessa Bell conference To support the conference costs Beyond the Page Conference To support the costs of the Beyond the Page conference 40
MK GALLERY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 21 Analysis of charitable funds (continued) Name of fund Descriplion, nature alld purpose of fund Restricted Funds PAW Supported Studio To support the costs of the supported studio Trickster Figures To support the costs of exhibition and catalogues Jerwood To support th¢ costs of ¢r¢ating the Vanessa Bell catalogue Stony Stratford Arts Group To support IPA costs MKCC UK Shared Prosperity To support the development of corporate memberships Fund Artist Room IPA Funded workshops linked to the Andy Warhol show Anson Charitable Trust To support the costs of realising the exhibition progryamme Artist Room Exhibitions To support the cost of the Andy Warhol exhibition Art Fund- Reimagine To support thc d¢velopm¢nt of the access programme Henry Moore FoundatÉon To support the costs of exhibition programmes Designated Funds The Trust¢es have assigned £600,000 to a designated capital renewal fund. Unrestricted Funds Th¢ general income fund represents those funds that are unrestricted and not designated for other purposes. The general capital fund represents those funds that are unrcstrictcd but represented by capital assets and are therefore not available reserves. Transfers between funds Transfers of £9,063 were made from unrestricted funds to restricted funds to cover the deficit on the restricted fvnds. Transfers of £30,765 were made from restricted funds to unrestricted funds to reimburs¢ the general fund for costs that were allocated to unrestricted funds instead of the restricted fund. Funds in deficit The deficits on the MK Council Apprenticeship fund and the Vanessa Bell exhibition fund will be covered by funding received in the following financial year. 41
MK GALLERY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 IRCH 2025 22 Analysis of net assets between funds Group: As restated 2024 Total Unrestrieted Funds Restricted Funds 2025 Total Fixed assets Investments Current assets cUent liabilities 10,305,753 1.032,727 426,363 (244,331) 10,305,753 1,032,727 703,456 (244,331) 10,456,416 1,075,829 430,482 (225,654) 277.093 11,520,512 277,093 11,797,605 11,737,073 Company: As restated 2024 Total Unrestricted Funds Restricted Funds 2025 Total Fixed assets Investments Current assets Current liabilities 10,305,753 1,032.827 502,550 (230.181) 10,305,753 1,032,827 779,643 (230,181) 10,456,416 1,076,029 527,277 (205.281) 277,093 11,610,949 277 093 11,888,042 11.854,441 23 Con)mitments There is a 99 year lease on th¢ Th¢atr¢, Art Gall¢ry and Theatre Square. A nominal rent of £1 each per annum is payable. This lease expires in more than 5 years. Changes to the leas¢ arrangernents between Milton Keynes City Council, Ambassador Theat Group and MK Gallery mean thc three parties ar¢ all now signatory to management arrang¢ments that are enshrined in a long lease of 99 years from 18 December 2001. Capiial commilments The charity has undertaken a capital development project which is complete apart from the final balance due to the contractor. At the year end the final balance due for th¢ project was £75,325 but the charity is holding sufficient reserves to cover the balance due. 42
MK GALLERY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 24 Related party transactions During the year donations of £300 were received from Trustees (2024: £200). There are no other related party transactions during the period that require disclosure. The charitable company has thk¢n advantage of the exemption available in accordance with Section 33 of FRS 102 'Relat¢d Paty Disclosures, not to disclose transactions entered into between two or more members of the group that are wholly owned. 25 Prior year adjustment An adjustment was rnade to th¢ figures for the year ended 31 March 2020 in relation to the following accounting issues in 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 amount in th¢ figures originally reported. Fixed asset cost was overstated by £68,700 as a result of irr¢cov¢rdble VAT being capitslised in error (relating to the VAT return errors). Accruals and fixed asset costs were both overstated by £197,560 in relatlon to an accrual for fixed asset additions that was not necessary. The relevant values in the comparative figures have now been adjusted. Th¢ ¢ffect of this adjustment is: Group Company Opening reserves at l April 2020 (as previously stated) Prior year adjustment 12,806,667 (190,843) 12,858,710 (190,843) Opening reserves at l April 2020 (as restated) 12,615,824 12,667,867 43
MK GALLERY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 26 Notes to the Statement of Cash Flows Cash 2nd cash equivalents Year eDded 31 March 2025 Group 2025 Company 2025 2024 2024 Cash and casb equivalents 365,310 136,081 341,001 128,426 Year ended 31 March 2024 Group 2024 Company 2024 2023 2023 Cash and cash equivalents 136,081 61.371 128,426 48,898 Anydlysis of changes in net funds - Group 2024 Cash flow 2025 Cash at bank and in hand 136,081 136,081 136,081 229.229 229.229 229.229 365,310 365,310 365,610 Analysis of changes in net funds - Company 2024 Cash flow 2025 Cash at bank and in hand 128,426 128,426 128,426 212,575 212.575 212.575 34E,001 341.001 341.001