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2023-03-31-accounts

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Company registration number: 03589539 Charity registration number: 1076251

BALTIC FLOUR MILLS VISUAL ARTS TRUST

(A company limited by guarantee)

Annual Report and Financial Statements

for the Year Ended 31 March 2023

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Baltic Flour Mills Visual Arts Trust

Contents

Reference and Administrative Details 1
Trustees' Report 2 to 14
Independent Auditors' Report 15 to 17
Consolidated Statement of Financial Activities 18
Comparative Consolidated Statement of Financial Activities 19
Consolidated Balance Sheet 20
Balance Sheet 21
Consolidated Statement of Cash Flows 22
Notes to the Financial Statements 23 to 47

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Baltic Flour Mills Visual Arts Trust

Reference and Administrative Details

Trustees S Bryson S Corbridge (resigned 18 January 2023) A W Donaldson C Donovan J Feeley (resigned 27 October 2022) J G Gamble T Gharavi (resigned 23 May 2022) L Hunter (resigned 31 May 2023) K Lang R Mullen (resigned 8 August 2023) M Saravanamuttu (resigned 27 October 2022) C Sexton M A Sealy T R Stirling Love K C Wexford Campbell L Wilson (resigned 27 October 2022) P C Gentry (appointed 27 February 2023) T J Gray (appointed 27 October 2022) J Cibic (appointed 27 October 2022) N J Catterall (appointed 27 October 2022) C S L Staehr (appointed 27 October 2022) Key Management Personnel S Munro, Director I Aristizabal, Head of Curatorial and Public Practice K Gray, Director of Enterprise and Public Value Registered Office Baltic Centre For Contemporary Art Gateshead Quays South Shore Road Gateshead Tyne & Wear NE8 3BA The charity is incorporated in England and Wales. Company Registration Number 03589539 Charity Registration Number 1076251 Auditor Azets Audit Services Chartered Accountants & Statutory Auditor Bulman House Regent Centre Gosforth Newcastle upon Tyne NE3 3LS Bankers Virgin Money Northumberland Street 132-134 Northumberland Street Newcastle upon Tyne NE1 7DG

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Baltic Flour Mills Visual Arts Trust

Trustees' Report

BALTIC Annual Review, 2022/23

BALTIC has spent the year delivering on our purpose and objectives, being guided by our values as we navigate both the challenges and opportunities in our recovery from the pandemic. BALTIC continued to provide a free inclusive public space, a beacon which inspired and connected our communities and audiences through the best contemporary art and creativity, welcoming both Locals & Visitors throughout the year. We focused on enhancing new income streams, whilst concurrently controlling our costs. We remained at a five-day operational model to ensure long term financial sustainability and have seen average daily attendances return to 85% of what they were before the pandemic.

Financial Review

The financial statements for the year to 31 March 2023 show a net income of £487,913 (2022 - £392,984). This is after adjustments to reflect a zero position in relation to the defined benefit pension scheme, which is now in surplus. Net income also includes the one-off receipt of novated funds from Gateshead Council of £734,015, which are designated to support the income generation plan 2022-25.

Principle funding sources

BALTIC meets its funding needs from the following principle sources: Arts Council England, Gateshead Council. Earned income from sponsorship, hospitality, retail, catering and facilities hire as well as car parking fees alongside charitable donations from individuals and trusts and foundations

BALTIC 20th Birthday

BALTIC celebrated its 20th Anniversary with a special weekend of activities, free events, workshops and exhibitions, attracting over 8000 visitors over the weekend.

Audience Highlights

From 1st April 2022 to 31 March 2023 BALTIC welcomed 352,335 visits during gallery hours, and 388,547 overall, representing a 35% increase on 2021/22. This is a real-term increase of 91,000 visits. Whilst this does not yet reflect pre-pandemic 7 day a week attendance figures, it should be seen in the context of 5- day opening and benchmarked with many comparator venues, showed a far stronger recovery with an 85% return to pre-pandemic levels . The year has seen the audience profile become more diverse, with a higher proportion of BAME and C2DE visits. 66% of audiences came from the local Region with a significant 83% of these visits from the C2DE group (75,000 visits). BALTIC also witnessed a significant increase in the proportion of BAME visits since 2021/22 rising from 4% to 9% (31,000 visits), our highest ever diverse attendance. 11% of our visits were made by students. BALTIC saw a significant increase in socially motivated visits, particularly from local first time visitors, drawn in by our key events including our 20th Birthday Weekend and Holi Festival of Colours, a unique event which saw its 2nd iteration at BALTIC. The huge majority of our visitors engaging with the Exhibition programme rated them positively and visitors continue to see BALTIC as an inclusive, accessible and relevant venue. Our highest rated Exhibition was Hew Locke: The Procession with 94% rating it as either good or very good.

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Baltic Flour Mills Visual Arts Trust

Trustees' Report

Catering and Retail was in a transition year and it is positive to note that the proportion of those buying food and drink has doubled since the previous year, rising from 17% to 34% of all visitors following inclusion of a limited paid food offer from Social Enterprise Big River Bakery being included for sale in Front Room. Visitors bringing their own packed lunch and making use of our accessible Front Room rose from 5% to 7%, as families struggled with the cost of living crisis and found value and meaning in our free soft drinks offer - rising from 15% in 2021/22 to 30% in 22/23 with 43% of those using this space identifying from C2DE groups. This evidences Baltic responding to the changing needs of our communities, whilst also driving Commercial catering income in dynamic and relevant ways to maintain sustainability.

Organisational Highlights

We value listening: A listening organisation is a relevant organisation. We create positive impact by understanding and responding to the needs and motivations of our audiences and communities.

We value accountability: An accountable organisation is transparent and rigorous. We build trust by behaving with honesty and integrity.

We value courage: A courageous organisation is bold and takes risks. We platform progressive and thought-provoking ideas and practices.

We value equity: An equitable organisation values equality, inclusion and diversity. We champion equity and challenge racism and prejudice

We value sustainability: A sustainable organisation is resourceful and environmentally conscious. We are adaptable and operate with care, in order to meet the needs of a changing world.

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Baltic Flour Mills Visual Arts Trust

Trustees' Report

Across the accredited 3-day course, IOSH Managing Safely (developed by the Institution of Occupational Safety and Health) delivered the knowledge needed for those in positions of responsibility to identify, evaluate and control workplace risks. This included assessing the effectiveness and performance of the health and safety systems already in place across our organisation.

Programme Highlights

We continue to build back from the impacts of the pandemic, inflation and post Brexit challenges by extending the duration of our exhibitions as a key strategy to reduce resources, whilst focusing on the international quality and local relevance of our Artistic Programme, presenting eight exhibitions in the year across our 4 main galleries.In light of the impact of the pandemic, BALTIC’s exhibitions programme was slowed down. In 2021-22 we presented eight exhibitions in our main galleries and the last exhibition at BALTIC 39.

These included three group shows and five solo exhibitions by emerging or under- represented artists of national and international significance and mid-career surveys for national and international artists. Our aim is to give artists a supportive platform for the development of their practice, often producing new commissions, introducing international artists to UK audiences for the first time and offering a significant national and international platform.

Vasseur BALTIC Artist's Award 2022 (9 Apr - 2 Oct 2022), three solo exhibitions and major new commissions by Ima-Abasi Okon, Laleh Khorramian and Fernando García-Dory.

Baltic's biennial award was established to recognise artists deserving of an international platform and offers a step-change moment in their career. For the 2022 iteration, Otobong Nkanga nominated Ima-Abasi Okon, Mika Rottenberg nominated Laleh Khorramian and Hito Steyerl nominated Fernando García-Dory. In recognition of the support from her family BALTIC renamed the award in memory of the late curator Isabel Vasseur whose commitment to contemporary art, emerging artists and the BALTIC itself was a huge honour. The exhibition attracted 70,205 visitors and helped create a step change in the careers of our participating artists.

Ad Minoliti , first solo show in the UK and largest European exhibition to date, Biosfera Peluche / Biosphere Plush (24 Jul 2021 - 8 May 2022). The exhibition toured to Tate St Ives from May to October 2022. Minoliti used feminist and queer theory to generate alternative interpretations of painting, design, architecture, art history and visual language. The exhibition was a monumental new commission and featured Minoliti’s ongoing project The Feminist School of Painting, transforming part of the gallery space into an active classroom with regular painting workshops delivered by local artists for free engagement with our audiences and visitors. Visitors: 116,256 at Baltic, 70,226 at Tate St Ives for a total of 186,482 across both sites.

Mounira Al Solh : A Day is As Long As A Year (9 Apr - 2 Oct 2022) presented a selection of new and recent drawings and embroidered works relating to migration, homes that have been lost, domestic issues, and the mourning of loved ones. Her series of portraits on yellow legal pad paper, I strongly believe in our right to be frivolous (2012-ongoing), records the experiences of those who have been displaced or exiled from the Middle East and other regions. In Gateshead, Al Solh continued this series, collaborating with local women who now live in the North East. Visitors: 99,323.

Carolina Caycedo : Land of Friends (28 May 2022 - 29 Jan 2023) was Caycedo’s first survey in Europe presented an overview of her artistic practice over the past twenty years, alongside a new commission, Memories of the Tyne Catchment, inspired by the River Tyne, which expanded her ongoing River Book series. Visitors: 105,000.

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Baltic Flour Mills Visual Arts Trust

Trustees' Report

Sahej Rahal : Mythmachine (24 Sep. 2022 - 12 Feb. 2023) presented a new body of work conceived as an immersive virtual playground that responds to chaos, luck and chance. The exhibition introduced a digital approach to Baltic’s ongoing theme of Play through work that developed world-building through a virtual world. Visitors: 57,975.

Jala Wahid : Conflagration, (22 Oct 2022 - 30 Apr. 2023) presented a new body of work exploring the relationship between Britain and Kurdistan, through the lens of oil. The installation approached oil as the symbolic material through which nationalism, statelessness, colonialism and Kurdish identity were explored. The exhibition was her first institutional show and major new commission, in collaboration with Tramway (Glasgow) and supported by Foundation Foundation. The exhibition toured to Tramway (24 Jun - 10 Sep 2023) and will be touring to John Hansard Gallery in Southampton in October 2023. Visitors: 97,656 visitors at Baltic and xxx at Tramway, Glasgow.

Hinterlands (22 Oct - 30 April 2023), a group exhibition showcasing the work of twelve artists based in the North East that consider questions around the landscape, deep time and our relationship to nature. Visitors: 70,887 visitors.

Time Travel across Many-Worlds (17 - 21 Aug 2022) was a group show curated by Kinnari Saraiya as part of her Frieze x Deutsche Bank Curatorial Fellowship at Baltic.

At the center of this exhibition was a Bioscope, an old form of traveling cinema that fed the imaginations of a generation of people in the global south through the magic of moving images by a hand crank. Artists included Anna Bunting-Branch, Megan Broadmeadow, Nicholas Delap, Benjamin Hall, Aliyah Hussain, Seema Mattu, Mochu, Sangram Mukhopadyay, Nuka Nayu, Salma Noor, Brandon Covington Sam- Sumana and Kinnari Saraiya.

Lightbox commissions by Joe Seymour : A2B, The Long Way Home (15 Jun - 2 Oct 2022) presented the first Foundation Club Residency commission, Michael McCormack: Macbeth, William, Malcolm (2 Feb - 12 Jun 2022) invited audiences to think about how history is written, and the place of fact and fiction in how it is shaped. Newcastle-based photographer, Joanne Coates presented The Lie of the Land (28 Nov - 20 March 2023) from her eponymous series, which seeks to narrate a story of gender and class that has long been forgotten, or never told.

Undutiful Spirit presented an exhibition (14-17 July 2022) that was the culmination of a six-month residency at Baltic during which they were invited to research and develop their practice through close engagement with Baltic’s Archive.

In November 2022, we presented a performance and a workshop by Julie Cleves and Robbie Synge, as part of our work with the CONTINUOUS Network. Baltic’s team worked in close collaboration with the CONTINUOUS team to successfully meet the complex access requirements for the artists. 26 people attended the performance, two of which had specially travelled from the South of England following a word-of-mouth recommendation. The workshop had six participants, all from the dance sector.

BALTIC hosted artist Ker Wallwork for the first Baltic x Shape Emergent Residency in collaboration with Shape Arts. During their residency, Wallwork staged an intervention on Baltic’s Level 5 viewing platform titled Merg (2020-ongoing). The work is part of a series of works chronicling the logic and language of austerity that has been used to justify increasing privatisation of the Health and Care sectors, and welfare reforms, which have had a devastating impact on the lives of many sick and disabled people. A visitor commented that they loved the installation on Level 5, and said “it was very fitting to our countries current situation and that it is great to see artists addressing this and highlighting how the benefit system affects people with disabilities”.

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Baltic Flour Mills Visual Arts Trust

Trustees' Report

As part of the Artists Development Programme we initiated long-term collaborations with Sue Loughlin - a local artist, NewBridge studio holder and Baltic freelance artist - who is developing a project, MOTHEROTHER, that seeks to support artists and curators who have caring responsibilities; and the Making Time group, which is a virtual group for neurodivergent artists, writers and researchers in performance / visual arts set up by Grace Denton. We also hosted a networking event for the artists participating in Hinterlands.

Learning & Civic Engagement Highlights

BALTIC’s learning programmes provide opportunities for all visitors to discover new ways of seeing, thinking and learning through contemporary art. Beyond our gallery, targeted community programmes seek to expand and exchange creative participation, increase community and civic engagement, and create new social connections. Overall 468,867 people ( a 29% increase on the previous year ) engaged with BALTIC’s Learning and Civic Engagement initiatives including independent or facilitated sessions, visiting Learning Lounge or Sensory Space and engaging in Baltic’s digital learning offer. BALTIC did not host a Play led exhibition in the year but attendances of families remained high but pre pandemic levels of attendance are returning, over the 5 days BALTIC open. The biggest change has been in the level of Schools participation, with over 50,000 visits being maintained despite challenges to school visits and teacher capacities post pandemic.

Learning Participation Highlights:

Overall 157,446 people engaged with BALTIC Learning and Civic Engagement by taking part in independent or facilitated sessions and/or visiting The Learning Lounge or engagement through our digital content. Of this, there were 4,395 engagements offsite. This includes activity in schools, community spaces and at festivals. Of this activity 40% happened in Gateshead.

128,082 people visited The Learning Lounge, BALTIC’s Learning Space. This is a decrease of 3% on last year’s numbers.

In addition, 110,347 people engaged with BALTIC’s original video content including talks, tours across, resources via various digital platforms - a 15% increase on last year’s 95,697. In part due to the creation of 55 new digital learning products.

13,351 people engaged with Baltic’s Touring Bus exhibition. There were 30 visits to community centers, schools and universities across the region as well as being a core attraction over our birthday weekend.

22,585 took part for free in our family learning programme engaging with artist workshops, toddler workshops, accessible sessions, and gallery resources.

There were 2,683 engagements where young people took part, outside of school, in BALTIC’s youth programme, using the Art Mix Hub, attending artist workshops, summer schools, trips and tours, Arts Award opportunities and work experience.

There were 14,498 instances of engagement where children and young people engaged with BALTIC through their school or college, taking part in artist workshops, talks or tours, talent development opportunities, online facilitator led sessions and/or self-led visits. 140 teachers participated in bespoke teacher training with BALTIC Teachers CPD.

92 schools took part in an artist-led session either in person or via live facilitator-led sessions. 35% of these schools were from Gateshead. 14,381 adults engaged with BALTIC activity including talks, tours, community workshops, library activities and artist events. 5,614 individuals took part in short, informal tours provided by our Crew team and 19,944 people used BALTIC’s library, Quay library or archive independently.

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Baltic Flour Mills Visual Arts Trust

Trustees' Report

In 2021/22, BALTIC put several measures in place to ensure the safety of staff and visitors in relation to the pandemic. The success of these measures is shown by the fact that visitors on 83% of visits felt very safe and a further 14% felt quite safe. Only 1% said they felt quite unsafe and no respondents felt very unsafe during their visit to BALTIC. There was a strong correlation between visitor safety and satisfaction, with very satisfied visitors on 86% of visits and quite satisfied visitors on 78% of visits stating that they felt very safe today.

Trading & Development Highlights 22-23

As part of BALTIC’s sustainability we are delivering an income generation plan 2021- 25. BALTIC trading turnover increased from £685,420 in financial year ending March 2022 to £1,088,300 in financial year ending March 2023. This represents a profit of £465,578 with profitability gross increasing from 30% to 42%.

Following the development of an income generation plan we have established new income streams, Baltic Trading brought in-house the café, events and hospitality aspects of the business, refurbishing the Café and Riverside Terrace areas to meet the ambitions of the 23-24 business plan. We have begun our journey of shifting from a model of 60% Grant in Aid to 40% self-generated, towards a 50/50 model for 23/24.

Trading Company Highlights

Following on from challenging post pandemic and inflationary costs BALTIC focused on implementing the first phase of our new income plan, highlights and significant milestones in establishing our sustainability included:

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Baltic Flour Mills Visual Arts Trust

Trustees' Report

Baltic as Brand

There was strong agreement with BALTIC’s brand statements, showing that the gallery is still succeeding in its ambition to be inclusive, accessible and relevant.

The proportion who either strongly (85%) or slightly (13%) agreed that BALTIC is a venue that meets the needs of visitors regardless of their gender, age, race, disability, income or sexual orientation is broadly in line with last year at 97% (vs 96% in 2021/22). In a similar pattern to 2021/22 this figure increased throughout the year rising from 80% in Q1, to 82% in Q2, 86% in Q3 and 91% in Q4.

The proportion of those who agreed that BALTIC is a venue that meets equally the needs of specialists visitors and those with little knowledge of art increased significantly from 88% in 2021/22 to 95% in 2022/23.

Press/Media

BALTIC has secured a high volume of quality press coverage article for its exhibitions and projects. This has spanned Albert Potrony, Ad Minoliti, Phyllis Christopher and Sutapa Biswas exhibitions with both exhibition review coverage and insightful artist interviews in publications including The Guardian, Hyper allergic, ARTFORUM, FlashArt, Studio International, Art Review, Art Monthly, Design Anthology. The Phyllis Christopher exhibition Contacts was named one of The Top Ten 2021 UK Shows by Frieze magazine.

Environmental Sustainability Highlights

Risk Management

BALTIC has adopted a risk management strategy. The risk management strategy forms part of BALTIC’s overall internal control structure and corporate governance arrangements. The strategy provides definitions of relevant terminology and details responsibility and accountability within BALTIC. The strategy also describes the management process, including the identification and measurement of risk and the main reporting arrangements.

Risk Appetite is the term used to determine the amount of risk that is appropriate for BALTIC. Risks are considered on an individual basis using a risk model to determine the impact and likelihood of a potential risk and the appropriate response to the outcome of measuring each risk.

The Risk Register is reported to the Trust and Audit Committee as appropriate.

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Baltic Flour Mills Visual Arts Trust

Trustees' Report

The significant risks identified are:

Reserves Policy

The Trustees have considered the Reserves policy they wish to follow with regard to BALTIC (inclusive of its subsidiary BALTIC Trading Company Ltd), in compliance with relevant legal, regulatory, tax and accounting rules e.g. in regard to use of endowments or other restricted funds. Generally, BALTIC also recognises that funds can be used only for the specific or broad purposes indicated at the time of fundraising. BALTIC expects to receive gifts, donations, legacies and bequests from philanthropists, trusts and the general public in addition to regular funding from Arts Council of England and Gateshead Council. Typically, receipts will be in cash but where a donation or gift is in another form, such as shares, property or artworks, Baltic may choose to donate or liquidate rather than hold the asset, subject to any conditions of the donor. The funds thus held and accumulated by Baltic are represented in its balance sheet as reserves. BALTIC may pool, for banking or investment purposes, any or all monies held in reserves, whether restricted or unrestricted reserves. Any investment income or capital gains/losses, whether realised or unrealised, will be apportioned pro-rata across all the reserves within the pooled investment. In the case of capital endowments, income and capital elements will be accounted for separately. Where a capital endowment has been depleted due to investment losses, there is assumed to be no obligation to reinstate the original capital balance.

BALTIC will hold both restricted and unrestricted reserves. Restricted reserves are subject to conditions and limitations on the use of the funds, usually due to specific conditions imposed by the donor/grant giver or general expectations set in fundraising campaigns. Unrestricted reserves are receipts that are unencumbered by conditions and may be utilised as BALTIC sees fit, in line with its Objects. BALTIC may choose to designate (and un-designate) portions of its unrestricted reserves for particular purposes, creating “unrestricted designated reserves” as opposed to “unrestricted general reserves”. BALTIC determines the correct categorisation of funds at the time of receipt or designation.

Minimum “unrestricted general reserves”

In order to provide cover for unforeseen emergencies, including unexpected expenditure or loss of income or unforeseen winding up of the organisation the Trustees consider that they should hold in the balance sheet an unencumbered minimum cash reserve equal to three months of the normal operating cost base (exclusive of programme/marketing costs) plus any liabilities to pension and/or bond and/or deposits or a minimum of £750,000. It is accepted that this level may fluctuate and temporarily drop when the reserve is utilised. The target level of reserves will be calculated annually based on the year’s budgeted expenditure.

Capital Project designated reserve

A Capital Plan will be developed to ensure the maintenance and improvement of the building for the benefit of the public, environmental sustainability and income generation. Specific contingency amounts (usually 10% of project value) will be provided in project budgets in addition to the unrestricted general reserves.

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Baltic Flour Mills Visual Arts Trust

Trustees' Report

Review of Policy

The Board of Trustees is ultimately responsible for the management of reserves and will review the reserves policy annually. The accounting policies used in preparing the financial statements are unchanged from the prior year.

Financial risk management policy

The Trust’s principal financial instruments comprise cash and cash equivalents. Other financial assets and liabilities, such as trade creditors and trade debtors, arise directly from the Trust’s operating activities.

The main risks associated with the Trust’s financial assets and liabilities are set out below. The Trust does not undertake any hedging activity and any significant financial risks are addressed on a case-by-case basis.

Interest rate risk

The Trust invests surplus cash in floating rate interest yielding bank accounts, therefore financial assets, interest income and cash flows can be affected by movements in interest rates. However, the Trustees do not consider there to be any significant exposure. The Trust has no bank borrowings.

Price risk

There is no significant exposure to changes in the carrying value of financial liabilities.

Credit risk

The Trust’s policy is aimed at minimising such losses. Individual exposures and overdue debts are monitored with customers to ensure that the Trust’s exposure to bad debts is not significant.

Liquidity risk

The Trust aims to mitigate liquidity risk by managing cash generated by its operations. Flexibility is maintained by retaining surplus cash in readily accessible bank deposit accounts. Limits on spending authority are in place.

Foreign currency risk

There are minimal transactions in foreign currency. As a result, no hedging activity is undertaken to mitigate this risk.

Investment policy

The Trust ensures that any investment strategy it adopts does not put at adverse risk any of the assets it is responsible for.

Funds are placed on deposit at the highest possible interest rates, consistent with cash flow requirements.

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Baltic Flour Mills Visual Arts Trust

Trustees' Report

Strategic Objectives

Strategic Objective 1: Develop and enhance BALTIC’s reputation as an outstanding international art space, commissioning producing and presenting innovative new work by a diverse range of artists that is conceptually rigorous, inspired by new perspectives and practices, has relevance and meaning fora wide range of audiences, and has the power to inspire ways of understanding the world.

Strategic Objective 2: Deepen engagement, appreciation and enjoyment of international contemporary art, continuing to develop BALTIC’s position as an international leader not only in contemporary art production and presentation, but in creating innovative approaches that deepen engagement with diverse audiences and communities across all of our activities.

Strategic Objective 3: Increase BALTIC’s resilience and deliver positive financial results.

Strategic Objective 4: Advance BALTIC’s sectoral leadership through sustainable and dynamic networks, partnerships and collaborations that embrace innovation, diversity and excellence.

Strategic Objective 5: Enhance the capacity for children and young people from diverse backgrounds to engage with and affect their world through their involvement with BALTIC’s programmes.

The Trust’s strategy for achieving the strategic objectives

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Baltic Flour Mills Visual Arts Trust

Trustees' Report

Fundraising

The charity is required to report how it deals with fundraising from the public. The charity does not use a professional fundraiser or commercial participator to raise funds. Any monies raised direct from the public follows all guidelines set out by the Charity Commission and UK law in every respect. We respect the privacy and contact preferences of all public donors.

Structure, governance and management

Governing document

The Trust is a charitable company limited by guarantee and was incorporated on 29 June 1998. It is governed by Memorandum and Articles of Association as amended and adopted on 15 July 2013.

Recruitment and appointment of new Trustees

From time to time it is necessary for the Trust to recruit new Trustees to replace those that have either resigned during their term of office, or by way of anticipating planned retirements after the completion of either a single term of three years, or a maximum period of six years, being two terms of three years.

It is the Trust’s normal practice to place regional and national advertisements which invite interested and suitably experienced people to apply to be a Trustee, alongside making informal approaches to individuals who are already known to the Trust and who appear to have the necessary qualities and interest in what we do. Although not strictly a public appointment , when setting out the essential requirements of potential Trustees, the Trust chooses to make it known that it expects appointees to follow the seven principles of public life as defined by the Committee on Standards in Public Life.

Short-listed applicants are interviewed and assessed by a panel of existing Trustees chaired by the Chair of the Board. Appointments are subsequently recommended to the Board and approved by members of the company at the next General Meeting.

Induction and training of Trustees

The induction and training of Trustees is the responsibility of the Chair and is arranged on an individual or collective basis as appropriate. The Board of Trustees has introduced formal training sessions for the Board as a whole as and when appropriate.

All Trustees, as well as certain senior staff and the directors of the trading company, are required to declare, and maintain as continuing to be accurate, a declaration of interests. The Audit Committee review the Register of Interests on an annual basis.

Arrangements for setting key management personnel remuneration

The board, who give their time freely and no trustees received remuneration in the year, have considered who the Key Management Personnel (KMP) of the charity are, as noted in the reference and administration section. Together with the board, these KMP are those in charge of directing and controlling, running and operating the activities of the charity on a day to day basis.

The pay of the KMP is reviewed annually and potentially increased in accordance with pay proposals considered by the trustees for the salary structure of the whole organisation. The trustees benchmark against pay levels of other charities and similar organisations within the sector and the region. Pay levels are set using this information together with budget and forecast information, ensuring that the charity can afford any proposed increases. The board then agree any uplift to remuneration.

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Baltic Flour Mills Visual Arts Trust

Trustees' Report

Organisational structure

BALTIC is governed by a Board of Trustees. The Chair of the Board is selected and elected by the Board, provided always that he/she shall be a director nominated by BALTIC’s stakeholders; being Gateshead Council and Arts Council England. In determining its organisational structure, BALTIC has distinct duties for the Chair, Board of Trustees, and Director (who is the Chief Executive).

The Board meets four times a year, or as is required to deal with any specific issues. Issues concerning finance, including financial regulations, premises, asset management, the letting of significant contracts are scrutinized and overseen by the Finance and Audit Committee which meets three times a year or more frequently as required. The Finance and Audit Committee is chaired by a co-opted member, independent from the Board of Trustees. The Finance and Audit Committee membership is required, as set out in the terms of reference, to be made up of a combination of the Board of Trustees, and members independent of management of the Trust and any subsidiaries. Trustee members however will always remain in the majority of this Committee.

BALTIC has a wholly owned trading subsidiary, independent of the Board of Trustees to oversee and scrutinize the management of commercial enterprises.

Relationships with related parties

The Trust has a wholly owned subsidiary company, Baltic Contemporary Visual Arts Trading Limited, the principal activity of which is the provision of catering, retail, corporate sponsorship and room hire services. The surplus generated by the company is gifted to the Trust (see note 25 to the financial statements).

Going concern

The charity’s forecasts and projections for the next twelve months show that the charity should be able to continue in operational existence for that period, taking into account reasonable possible changes in trading performance. This also considers the effectiveness of available measures to assist in mitigating the impact. The charity and its trading subsidiaries have strong positive cash balances and is forecasting for this to continue to be the case. The trustees have stress tested their forecasts, taking into account various scenarios, and remain confident that the uncertainties do not cast significant doubt on the company’s ability to continue as a going concern.

Statement of Trustees' Responsibilities

The trustees (who are also the directors of Baltic Flour Mills Visual Arts Trust for the purposes of company law) are responsible for preparing the trustees' report and the financial statements in accordance with the United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations.

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

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Baltic Flour Mills Visual Arts Trust

Trustees' Report

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

Disclosure of information to auditor

Each trustee has taken steps that they ought to have taken as a trustee in order to make themselves aware of any relevant audit information and to establish that the charity's auditor is aware of that information. The trustees confirm that there is no relevant information that they know of and of which they know the auditor is unaware.

Reappointment of auditor

In accordance with section 485 of the Companies Act 2006, a resolution for the re-appointment of Azets Audit Services as auditors of the charity is to be proposed at the forthcoming Annual General Meeting.

The annual report was approved by the trustees of the charity on 15/12/2023.................... and signed on its behalf by:

Kirsty Lang 15 Dec 2023 14:29:39 GMT (UTC +0)

......................................... K Lang Chair and Trustee

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Baltic Flour Mills Visual Arts Trust

Independent Auditor's Report to the Members of Baltic Flour Mills Visual Arts Trust

Opinion

We have audited the financial statements of Baltic Flour Mills Visual Arts Trust (the 'charitable parent company') and its subsidiary (the 'group') for the year ended 31 March 2023, which comprise the Consolidated Statement of Financial Activities, Consolidated Balance Sheet, Balance Sheet, Consolidated Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is United Kingdom Accounting Standards, comprising Charities SORP - FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and applicable law (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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 going concern

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

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

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

Other information

The trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

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

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Baltic Flour Mills Visual Arts Trust

Independent Auditor's Report to the Members of Baltic Flour Mills Visual Arts Trust

We have nothing to report in this regard.

Opinion on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the group and the parent charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the financial statements and the Trustee's Report.

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

Responsibilities of trustees

As explained more fully in the Statement of Trustees' Responsibilities (set out on page 13), the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the 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 trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

Auditor responsibilities for the audit of the financial statements

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

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

16

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Baltic Flour Mills Visual Arts Trust

Independent Auditor's Report to the Members of Baltic Flour Mills Visual Arts Trust

Because of the field in which the client operates, we identified the following areas as those most likely to have a material impact on the financial statements: Health and Safety; employment law (including the Working Time Directive); and compliance with the UK Companies Act and Charities Act.

Owing to the inherent limitations of an audit, there is an unavoidable risk that some material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK). For instance, the further removed non-compliance is from the events and transactions reflected in the financial statements, the less likely the auditor is to become aware of it or to recognise the non-compliance.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the charitable parent company's trustees, 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 group's trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable parent company and its trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Simon Brown 18 Dec 2023 10:10:42 GMT (UTC +0)

...................................... Simon Brown BA ACA DChA (Senior Statutory Auditor) For and on behalf of Azets Audit Services Chartered Accountants Statutory Auditor Bulman House Regent Centre Gosforth Newcastle upon Tyne NE3 3LS 18/12/2023 Date:.............................

Azets Audit Services is a trading name of Azets Audit Services Limited.

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Baltic Flour Mills Visual Arts Trust

Consolidated Statement of Financial Activities for the Year Ended 31 March 2023 (Including Consolidated Income and Expenditure Account and Statement of Total Recognised Gains and Losses)

Note
Income and Endowments from:
Donations and legacies
3
Charitable activities
4
Other trading activities
5
Investment income
6
Other income
7
Total Income
Expenditure on:
Raising funds
Charitable activities
8
Total Expenditure
Net income
Transfers between funds
Other recognised gains
and losses
Actuarial (loss)/gains on
defined benefit pension
schemes
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward
23		 Unrestricted
£
4,111,351
63,991
1,333,079
1,694
225,499
5,735,614
(751,415)
(4,483,999)
(5,235,414)
500,200
(48,919)
(52,000)
399,281
2,713,814
3,113,095		 Restricted
£
265,093
-
-
-
-
265,093
-
(225,380)
(225,380)
39,713
48,919
-
88,632
723,172
811,804		 Total
2023
£
4,376,444
63,991
1,333,079
1,694
225,499
6,000,707
(751,415)
(4,709,379)
(5,460,794)
539,913
-
(52,000)
487,913
3,436,986
3,924,899		 Total
2022
£
3,551,485
175,783
917,150
3,423
126,609
4,774,450
(641,813)
(4,088,653)
(4,730,466)
43,984
-
349,000
392,984
3,044,002
3,436,986

All of the group's activities derive from continuing operations during the above two periods.

The funds breakdown for 2022 is shown in note 23.

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Baltic Flour Mills Visual Arts Trust

Comparative Consolidated Statement of Financial Activities for the Year Ended 31 March 2022 (Including Consolidated Income and Expenditure Account and Statement of Total Recognised Gains and Losses)

Note
Income and Endowments from:
Donations and legacies
3
Charitable activities
4
Other trading activities
5
Investment income
6
Other income
7
Total income
Expenditure on:
Raising funds
Charitable activities
8
Total expenditure
Net income/(expenditure)
Transfers between funds
Other recognised gains and losses
Actuarial (loss)/gains on defined benefit
pension schemes
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward
23		 Unrestricted
£
3,416,182
175,783
917,150
3,423
126,609
4,639,147
(641,813)
(3,902,014)
(4,543,827)
95,320
(745,863)
349,000
(301,543)
3,015,357
2,713,814		 Restricted
£
135,303
-
-
-
-
135,303
-
(186,639)
(186,639)
(51,336)
745,863
-
694,527
28,645
723,172		 Total
2022
£
3,551,485
175,783
917,150
3,423
126,609
4,774,450
(641,813)
(4,088,653)
(4,730,466)
43,984
-
349,000
392,984
3,044,002
3,436,986

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Baltic Flour Mills Visual Arts Trust

(Registration number: 03589539) Consolidated Balance Sheet as at 31 March 2023

Note
Fixed assets
Tangible assets
15
Current assets
Stocks
17
Debtors
18
Cash at bank and in hand
Creditors: Amounts falling due within one year
19
Net current assets
Net assets excluding pension liability
Pension scheme liability
21
Net assets including pension liability
Funds of the group:
Restricted income funds
Restricted funds
23
Unrestricted income funds
Unrestricted funds
Total funds
23		 2023
£
1,304,212
102,033
914,944
2,916,350
3,933,327
(1,312,640)
2,620,687
3,924,899
-
3,924,899
811,804
3,113,095
3,924,899		 2022
£
1,064,825
104,945
482,908
2,617,655
3,205,508
(885,347)
2,320,161
3,384,986
52,000
3,436,986
723,172
2,713,814
3,436,986

The financial statements on pages 18 to 47 were approved by the trustees, and authorised for issue on ....................15/12/2023 and signed on their behalf by:

Kirsty Lang 15 Dec 2023 14:29:39 GMT (UTC +0)

.........................................

K Lang Chair and Trustee

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Baltic Flour Mills Visual Arts Trust

(Registration number: 03589539) Balance Sheet as at 31 March 2023

Note
Fixed assets
Tangible assets
15
Investments
Current assets
Debtors
18
Cash at bank and in hand
Creditors: Amounts falling due within one year
19
Net current assets
Net assets excluding pension liability
Pension scheme liability
21
Net assets including pension liability
Funds of the charity:
Restricted income funds
Restricted funds
23
Unrestricted income funds
Unrestricted funds
Total funds
23		 2023
£
1,002,012
2
1,002,014
1,035,206
2,582,452
3,617,658
(1,154,334)
2,463,324
3,465,338
-
3,465,338
811,804
2,653,534
3,465,338		 2022
£
742,105
2
742,107
784,473
2,398,572
3,183,045
(758,194)
2,424,851
3,166,958
52,000
3,218,958
723,172
2,495,786
3,218,958

The financial statements on pages 18 to 47 were approved by the trustees, and authorised for issue on ....................15/12/2023 and signed on their behalf by:

Kirsty Lang 15 Dec 2023 14:29:39 GMT (UTC +0)

......................................... K Lang Chair and Trustee

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Baltic Flour Mills Visual Arts Trust

Consolidated Statement of Cash Flows for the Year Ended 31 March 2023

Note
Cash flows from operating activities
Net cash income
Adjustments to cash flows from non-cash items
Depreciation
Investment income
6
Loss on disposal of tangible fixed assets
Working capital adjustments
Decrease in stocks
17
Increase in debtors
18
Increase in creditors
19
Increase/(decrease) in retirement benefit obligation net of
actuarial changes
21
Net cash flows from operating activities
Cash flows from investing activities
Interest receivable and similar income
6
Purchase of tangible fixed assets
15
Sale of tangible fixed assets
Net cash flows from investing activities
Net increase in cash and cash equivalents
Cash and cash equivalents at 1 April
Cash and cash equivalents at 31 March		 2023
£
487,913
92,425
(1,694)
3,166
581,810
2,912
(432,036)
427,293
52,000
631,979
1,694
(341,645)
6,667
(333,284)
298,695
2,617,655
2,916,350		 2022
£
392,984
91,882
(3,423)
23,753
505,196
9,888
(22,555)
401,961
(349,000)
545,490
3,423
(68,810)
-
(65,387)
480,103
2,137,552
2,617,655

All of the cash flows are derived from continuing operations during the above two periods.

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Baltic Flour Mills Visual Arts Trust

Notes to the Financial Statements for the Year Ended 31 March 2023

1 Charity status

The charity is limited by guarantee, incorporated in England and Wales, and consequently does not have share capital. Each of the trustees is liable to contribute an amount not exceeding £Nil towards the assets of the charity in the event of liquidation.

The address of its registered office is: Baltic Centre For Contemporary Art, Gateshead Quays, South Shore Road, Gateshead, Tyne & Wear, NE8 3BA

2 Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). They also comply with the Companies Act 2006 and Charities Act 2011.

Basis of preparation

Baltic Flour Mills Visual Arts Trust meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.

The financial statements are prepared in sterling which is the functional currency of the entity.

Basis of consolidation

The consolidated financial statements consolidate the financial statements of the charity and its subsidiary undertakings drawn up to 31 March 2023.

No statement of financial activities is presented for the charity as permitted by section 408 of the Companies Act 2006. The charity made a surplus after tax for the financial year of £509,823 (2022 surplus of £229,543).

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Baltic Flour Mills Visual Arts Trust

Notes to the Financial Statements for the Year Ended 31 March 2023

Going concern

The charity’s forecasts and projections for the next twelve months show that the charity should be able to continue in operational existence for that period, taking into account reasonable possible changes in trading performance. This also considers the effectiveness of available measures to assist in mitigating the impact. The charity and its trading subsidiary have strong positive cash balances and is forecasting for this to continue to be the case. The trustees have stress tested their forecasts, taking into account various scenarios, and remain confident that the uncertainties do not cast significant doubt on the company’s ability to continue as a going concern.

Estimation uncertainty and judgements

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported.

There are considered to be no significant judgements (apart from those involving estimations) that management has made in the process of applying the entity's accounting policies which effect the amounts recognised in the financial statements.

Income and endowments

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

Donations and legacies

Donations are recognised when the charity has been notified in writing of both the amount and settlement date. In the event that a donation is subject to conditions that require a level of performance by the charity before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that these conditions will be fulfilled in the reporting period.

Grants receivable

Grants are recognised when the group has an entitlement to the funds and any conditions linked to the grants have been met. Where performance conditions are attached to the grant and are yet to be met, the income is recognised as a liability and included on the balance sheet as deferred income to be released.

Other trading activities

Income from trading activities is accounted for when earned.

Investment income

Dividends are recognised once the dividend has been declared and notification has been received of the dividend due.

Charitable activities

Income from Charitable activities is accounted for when earned.

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Baltic Flour Mills Visual Arts Trust

Notes to the Financial Statements for the Year Ended 31 March 2023

Expenditure

All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use. Other support costs are allocated based on the spread of staff costs.

Raising funds

These are costs incurred in attracting voluntary income, the management of investments and those incurred in trading activities that raise funds.

Charitable activities

Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.

Support costs

Support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of resources, for example, allocating property costs by floor areas, or per capita, staff costs by the time spent and other costs by their usage.

Governance costs

These include the costs attributable to the charity’s compliance with constitutional and statutory requirements, including audit, strategic management and trustee meetings and reimbursed expenses.

Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grant will be received.

Government grants relating to turnover are recognised as income over the periods when the related costs are incurred. Grants relating to an asset are recognised in income systematically over the assets's expected useful life. If part of such a grant is deferred it is recognised as deferred income rather than being deducted from the assets's carrying amount.

Government grants included within other operating income includes the UK Government assistance provided through Coronavirus Job Retention Scheme during the Covid-19 pandemic.

Taxation

The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charityfor UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

Tangible fixed assets

Individual fixed assets costing £5,000.00 or more are initially recorded at cost.

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Baltic Flour Mills Visual Arts Trust

Notes to the Financial Statements for the Year Ended 31 March 2023

Depreciation and amortisation

Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows:

Asset class Depreciation method and rate Fixtures & Fittings over 5 to 10 years straight line Computer Equipment 3 years straight line Leasehold Property Improvements over the life of the lease

Impairment of fixed assets

The carrying values of tangible fixed assets are reviewed for impairment in periods if events or changes in circumstances indicate the carrying value may not be recoverable.

Stock

Stocks are stated at the lower of cost and net realisable value. Net realisable value is based on estimated selling price less any further costs to be incurred on disposal.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the charity will not be able to collect all amounts due according to the original terms of the receivables.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the charity does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Fund structure

Unrestricted income funds are general funds that are available for use at the trustees' discretion in furtherance of the objectives of the group.

Designated funds are unrestricted funds set aside for specific purposes at the discretion of the trustees.

Restricted income funds are those donated for use in a particular area or for specific purposes, the use of which is restricted to that area or purpose.

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Baltic Flour Mills Visual Arts Trust

Notes to the Financial Statements for the Year Ended 31 March 2023

Operating leases

Pensions and other post retirement obligations

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided.

Defined Benefit Pension Plan

The company recognises a defined net benefit pension asset or liability in the statement of financial position as the net total of the present value of its obligations and the fair value of plan assets out of which the obligations are to be settled.

Changes in the net defined benefit asset or liability arising from employee service are recognised in income or expenditure as a current service cost where it relates to services in the current period and as a past service cost where it relates to services in prior periods. Costs relating to plan introductions, benefit changes, curtailments and settlements are recognised in income or expenditure in the period in which they occur.

Financial instruments

Financial assets and financial liabilities are recognised when the charity becomes a party to the contractual provisions of the instrument.

Basic financial instruments are initially recognised at the amount receivable or payable including any related transaction costs, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Current assets and current liabilities are subsequently measured at the cash or other consideration expected to be paid or received and not discounted.

Debt instruments are subsequently measured at amortised cost.

3 Income from donations and legacies

Donations and legacies;
Donations
Grants, including capital grants;
Grants		 Unrestricted funds
Designated
£
General
£
-
182,604
734,015
3,194,732
734,015
3,377,336		 Restricted
funds
£
-
265,093
265,093		 Total
2023
£
182,604
4,193,840
4,376,444

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Baltic Flour Mills Visual Arts Trust

Notes to the Financial Statements for the Year Ended 31 March 2023

Donations and legacies;
Donations
Grants, including capital grants;
Grants - CJRS
Grants
4
Income from charitable activities
Charitable activity income
Charitable activity income
5
Income from other trading activities
Trading income;
Sales of goods and services
Sponsorship income
Other income from other trading activities
Trading income;
Sales of goods and services
Sponsorship income
Other income from other trading activities		 Unrestricted
funds
General
£
47,994
67,507
3,300,681
3,416,182		 Restricted
funds
£
-
-
135,303
135,303
Unrestricted
funds
General
£
63,991
Unrestricted
funds
General
£
175,783
Unrestricted
funds
General
£
1,088,300
160,165
84,614
1,333,079
Unrestricted
funds
General
£
684,278
190,047
42,825
917,150		 Total
2022
£
47,994
67,507
3,435,984
3,551,485
Total
2023
£
63,991
Total
2022
£
175,783
Total
2023
£
1,088,300
160,165
84,614
1,333,079
Total
2022
£
684,278
190,047
42,825
917,150

28

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Baltic Flour Mills Visual Arts Trust

Notes to the Financial Statements for the Year Ended 31 March 2023

6 Investment income

Interest receivable and similar income;
Interest receivable on bank deposits
Interest receivable and similar income;
Interest receivable on bank deposits
7
Other income
Other income
Other income		 Unrestricted
funds
General
£
1,694
1,694
Unrestricted
funds
General
£
3,423
3,423
Unrestricted
funds
General
£
225,499
Unrestricted
funds
General
£
126,609		 Total
2023
£
1,694
1,694
Total
2022
£
3,423
3,423
Total
2023
£
225,499
Total
2022
£
126,609

Other income relates to exhibit tax relief of £225,399 (2022 - £100,000) and income from insurance claims of £100 (2022 - £26,609).

29

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Baltic Flour Mills Visual Arts Trust

Notes to the Financial Statements for the Year Ended 31 March 2023

8 Expenditure on charitable activities

Arts Programme
Learning Programme
Support costs
Arts Programme
Learning Programme
Support costs
Arts Programme
Learning Programme
Governance costs
Arts Programme
Learning Programme
Governance costs		 Unrestricted funds
Designated
£
General
£
-
840,936
-
808,515
102,022
2,732,526
102,022
4,381,977
Unrestricted funds
Designated
£
General
£
-
831,659
-
806,649
47,907
2,215,799
47,907
3,854,107
Activity
undertaken
directly
£
1,056,597
813,829
-
1,870,426
Activity
undertaken
directly
£
984,250
818,514
-
1,802,764		 Restricted
funds
£
215,661
5,314
4,405
225,380
Restricted
funds
£
152,591
11,865
22,183
186,639
Activity
support
costs
£
1,644,763
1,170,576
23,614
2,838,953
Activity
support
costs
£
1,241,247
1,032,237
12,405
2,285,889		 Total
2023
£
1,056,597
813,829
2,838,953
4,709,379
Total
2022
£
984,250
818,514
2,285,889
4,088,653
2023
£
2,701,360
1,984,405
23,614
4,709,379
2022
£
2,225,497
1,850,751
12,405
4,088,653

30

VirtualSignature Transaction Ref. HHWC-P4P7-XPQF 18 Dec 2023 10:10:45 GMT (UTC +0) D 4/7 P 33/49

Baltic Flour Mills Visual Arts Trust

Notes to the Financial Statements for the Year Ended 31 March 2023

9 Analysis of governance and support costs

Support costs allocated to charitable activities
Governance
costs
£
Finance costs
-
Information technology
-
Staff costs
-
Premises costs including
depreciation
-
Other support costs
23,614
23,614
Governance
costs
£
Finance costs
-
Information technology
-
Staff costs
-
Premises costs including
depreciation
-
Other support costs
12,405
12,405		 Arts
Programme
£
322
29,782
509,099
688,874
416,686
1,644,763
Arts
Programme
£
363
26,847
440,931
514,492
258,613
1,241,246		 Learning
Programme
£
248
22,940
392,126
530,595
224,667
1,170,576
Learning
Programme
£
302
22,327
366,684
427,858
215,067
1,032,238		 Total
2023
£
570
52,722
901,225
1,219,469
664,967
2,838,953
Total
2022
£
665
49,174
807,615
942,350
486,085
2,285,889

10 Net incoming/outgoing resources

Net incoming/(outgoing) resources for the year include:

Audit fees
Loss on disposal of tangible fixed assets
Depreciation of fixed assets		 2023
£
15,125
3,166
92,425		 2022
£
13,750
23,753
91,882

31

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Baltic Flour Mills Visual Arts Trust

Notes to the Financial Statements for the Year Ended 31 March 2023

11 Trustees remuneration and expenses

No trustees, nor any persons connected with them, have received any remuneration from the group during the year.

No trustees have received any reimbursed expenses or any other benefits from the charity during the year.

12 Staff costs

The aggregate payroll costs were as follows:

Staff costs during the year were:
Wages and salaries
Social security costs
Pension costs		 2023
£
1,859,681
165,244
106,595
2,131,520		 2022
£
1,908,186
145,955
108,354
2,162,495

The monthly average number of persons (including senior management team) employed by the group during the year was as follows:

Administrative staff
The number of employees whose emoluments fell within the following
£60,001 - £70,000
£90,001 - £100,000
£100,001 - £110,000		 2023
No
78
bands was:
2023
No
1
-
1		 2022
No
78
2022
No
-
1
-

The total employee benefits of the key management personnel of the group were £234,277 (2022 - £190,746).

The chief executive officer, as the highest paid member of staff, received benefits totalling £108,777 (2022 - £97,361).

13 Auditors' remuneration

13 Auditors' remuneration
Audit of the financial statements
Other fees to auditors
All other non-audit services		 2023
£
15,125
14,922		 2022
£
13,750
14,320

32

VirtualSignature Transaction Ref. HHWC-P4P7-XPQF 18 Dec 2023 10:10:45 GMT (UTC +0) D 4/7 P 35/49

Baltic Flour Mills Visual Arts Trust

Notes to the Financial Statements for the Year Ended 31 March 2023

14 Taxation

The group is a registered charity and is therefore potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

15 Tangible fixed assets

Group
Cost
At 1 April 2022
Additions
Disposals
At 31 March 2023
Depreciation
At 1 April 2022
Charge for the year
Eliminated on disposals
At 31 March 2023
Net book value
At 31 March 2023
At 31 March 2022		 Furniture and
equipment
£
1,428,564
341,645
(20,000)
1,750,209
363,739
92,425
(10,167)
445,997
1,304,212
1,064,825

33

VirtualSignature Transaction Ref. HHWC-P4P7-XPQF 18 Dec 2023 10:10:45 GMT (UTC +0) D 4/7 P 36/49

Baltic Flour Mills Visual Arts Trust

Notes to the Financial Statements for the Year Ended 31 March 2023

Charity

Cost
At 1 April 2022
Additions
Disposals
At 31 March 2023
Depreciation
At 1 April 2022
Charge for the year
Eliminated on disposals
At 31 March 2023
Net book value
At 31 March 2023
At 31 March 2022		 Furniture and
equipment
£
1,018,678
341,645
(20,000)
1,340,323
276,573
71,905
(10,167)
338,311
1,002,012
742,105

16 Fixed asset investments

Charity

Shares in group undertakings and participating interests

Cost
At 1 April 2022
At 31 March 2023
Net book value
At 31 March 2023
At 31 March 2022		 Subsidiary
undertakings
£
2
2
2
2		 Total
£
2
2
2
2

34

VirtualSignature Transaction Ref. HHWC-P4P7-XPQF 18 Dec 2023 10:10:45 GMT (UTC +0) D 4/7 P 37/49

Baltic Flour Mills Visual Arts Trust

Notes to the Financial Statements for the Year Ended 31 March 2023

Details of undertakings

Details of the investments in which the charity holds 20% or more of the nominal value of any class of share capital are as follows:

Country of Proportion of voting Proportion of voting Principal
Undertaking incorporation Holding rights and shares held activity
2023 2022
Subsidiary undertakings
The
provision of
Baltic Contemporary
Visual Arts Trading
Limited		 England and
Wales		 Ordinary 100% 100% catering,
retail,
business
sponsorship
and
room
hire services

The profit for the financial period of Baltic Contemporary Visual Arts Trading Limited was £465,578 (2022: £209,902) and the aggregate amount of capital and reserves at the end of the period was £459,563 (2022: £218,030)

17 Stock

Finished goods
18 Debtors
Trade debtors
Due from group undertakings
Prepayments and accrued
income
VAT recoverable		 Group
2023
£
2022
£
102,033
104,945
Group
2023
£
2022
£
71,176
86,381
-
-
795,774
370,269
47,994
26,258
914,944
482,908		 Charity
2023
£
2022
£
-
-
Charity
2023
£
2022
£
34,960
7,657
267,972
364,879
684,280
385,679
47,994
26,258
1,035,206
784,473		 Charity
2023
£
2022
£
-
-
Charity
2023
£
2022
£
34,960
7,657
267,972
364,879
684,280
385,679
47,994
26,258
1,035,206
784,473
784,473

35

VirtualSignature Transaction Ref. HHWC-P4P7-XPQF 18 Dec 2023 10:10:45 GMT (UTC +0) D 4/7 P 38/49

Baltic Flour Mills Visual Arts Trust

Notes to the Financial Statements for the Year Ended 31 March 2023

19 Creditors: amounts falling due within one year

Trade creditors
Other taxation and social
security
Accruals and deferred income		 Group
2023
£
2022
£
514,324
433,252
52,502
52,986
745,814
399,109
1,312,640
885,347		 Charity
2023
£
2022
£
475,968
365,323
40,681
36,014
637,685
356,857
1,154,334
758,194		 Charity
2023
£
2022
£
475,968
365,323
40,681
36,014
637,685
356,857
1,154,334
758,194
758,194

Further to the ongoing investigation by Environmental Health in regards to a breach of Health and Safety regulations by the charity, using the most up to date information, the Council having brought a case against the Charity (due to be heard in late December 2023) where the Charity is planning on agreeing with the findings of the Court, the Charity has included a liability in its financial statements which it anticipates to be the most likely outcome without prejudice. This liability is included in accruals above.

Deferred income

Group

Deferred income at 1 April 2022
Resources deferred in the period
Amounts released from previous periods
Deferred income at year end
Charity
Deferred income at 1 April 2022
Resources deferred in the period
Amounts released from previous periods
Deferred income at year end		 2023
£
239,987
323,583
(239,987)
323,583
2023
£
208,523
230,224
(208,523)
230,224		 2022
£
114,580
239,987
(114,580)
239,987
2022
£
76,791
208,523
(76,791)
208,523

36

VirtualSignature Transaction Ref. HHWC-P4P7-XPQF 18 Dec 2023 10:10:45 GMT (UTC +0) D 4/7 P 39/49

Baltic Flour Mills Visual Arts Trust

Notes to the Financial Statements for the Year Ended 31 March 2023

20 Obligations under leases and hire purchase contracts

Operating lease commitments

Total future minimum lease payments under non-cancellable operating leases are as follows:

Other
Within one year
Between one and five years		 Group
2023
£
2022
£
796
702
350
767
1,146
1,469		 Charity
2023
£
2022
£
796
702
350
767
1,146
1,469		 Charity
2023
£
2022
£
796
702
350
767
1,146
1,469
1,469

21 Pension and other schemes

Defined contribution pension scheme

The group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the group to the scheme and amounted to £106,595 (2022 - £108,354).

Contributions totalling £14,016 (2022 - £12,099) were payable to the scheme at the end of the year and are included in creditors.

Defined benefit pension schemes

Tyne & Wear Pension Fund

The Tyne & Wear Pension Fund is a funded defined benefit scheme, with the assets held in separate Trustee-administered funds.

The charity is an approved employer of the Tyne & Wear Pension Fund.

The total contribution made for the year ended 31 March 2023 was £24,000 (2022 - £23,000) of which employer's contributions totalled £22,000 (2022 - £21,000) and employees' contributions totalled £2,000 (2022 - £2,000).

The date of the most recent comprehensive actuarial valuation was 31 March 2019. A full actuarial valuation of the Tyne and Wear Pension Fund was carried out at 31 March 2019 by a qualified actuary. An actuarial valuation report as at 31 March 2023 has been prepared exclusively for the charity. The pension charges in the accounts reflect the advice given in the actuarial report as at 31 March 2023.

Reconciliation of scheme assets and liabilities to assets and liabilities recognised

The amounts recognised in the statement of financial position are as follows:

37

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Baltic Flour Mills Visual Arts Trust

Notes to the Financial Statements for the Year Ended 31 March 2023

Fair value of scheme assets
Present value of defined benefit obligation
Pension asset value not recognised (as per FRS 102 para 28.22)
Defined benefit pension scheme surplus		 2023
£
2,499,000
(1,482,000)
1,017,000
(1,017,000)
-		 2022
£
2,589,000
(2,537,000)
52,000
-
52,000

In the year ended 31 March 2023 the actuarial valuation for FRS 102 showed a surplus over liabilities at that date of £1,017,000. In accordance with FRS 102 paragraph 28.22, a pension scheme asset is recognised only to the extent that it is able to recover the surplus either through reduced contributions in the future or through refunds from the plan. This condition was not met at the balance sheet date and therefore the surplus was not recognised.

Defined benefit obligation

Changes in the defined benefit obligation are as follows:

Changes in the defined benefit obligation are as follows:
Present value at start of year
Current service cost
Interest cost
Actuarial gains and losses
Benefits paid
Contributions by scheme participants
Present value at end of year		 2023
£
2,537,000
13,000
66,000
(979,000)
(157,000)
2,000
1,482,000

Fair value of scheme assets

Changes in the fair value of scheme assets are as follows:

Changes in the fair value of scheme assets are as follows:
Fair value at start of year
Interest income
Actuarial gains and losses
Employer contributions
Contributions by scheme participants
Benefits paid
Fair value at end of year		 2023
£
2,589,000
68,000
(25,000)
22,000
2,000
(157,000)
2,499,000

38

VirtualSignature Transaction Ref. HHWC-P4P7-XPQF 18 Dec 2023 10:10:45 GMT (UTC +0) D 4/7 P 41/49

Baltic Flour Mills Visual Arts Trust

Notes to the Financial Statements for the Year Ended 31 March 2023

Analysis of assets

The major categories of scheme assets are as follows:

Equities
Property
Government bonds
Corporate bonds
Cash
Other
Return on scheme assets
Return on scheme assets		 2023
£
1,279,488
262,395
32,487
487,305
44,982
392,343
2,499,000
2023
£
43,000		 2022
£
1,475,730
217,476
51,780
486,732
46,602
310,680
2,589,000
2022
£
177,000

The pension scheme has not invested in any of the group's own financial instruments or in properties or other assets used by the group.

Principal actuarial assumptions

The principal actuarial assumptions at the statement of financial position date are as follows:

Discount rate
CPI inflation
Pension increases
Pension accounts revaluation rate
Salary increases		 2023
%
4.60
2.60
2.60
2.60
4.10		 2022
%
2.70
2.90
2.90
2.90
4.40

39

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Baltic Flour Mills Visual Arts Trust

Notes to the Financial Statements for the Year Ended 31 March 2023

Post retirement mortality assumptions

Current UK pensioners at retirement age - male
Current UK pensioners at retirement age - female
Future UK pensioners at retirement age - male
Future UK pensioners at retirement age - female		 2023
Years
22.00
25.00
23.00
26.00		 2022
Years
22.00
25.00
24.00
27.00

These are assumptions used purely for the calculations of the pension deficit and do not reflect the actuality of historical pay rises. Contributions to the scheme are charged to the profit and loss account so as to spread the cost of the pension over employees' working lives with the company. A qualified actuary, on the basis of triennial valuations, using the projected unit method, determines the contributions.

In addition, as many unrelated employers participate in the Tyne and Wear Pension Fund there is an orphan liability risk where employers leave the Fund but with insufficient assets to cover their pension obligations so that the difference may fall on the remaining employers.

All the risks above may also benefit the employer e.g. higher than expected investment returns or employers leaving the Fund with excess assets which eventually get inherited by the remaining employers.

22 Commitments

Group

Capital commitments

The total amount contracted for but not provided in the financial statements was £306,996 (2022 - £Nil).

40

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Baltic Flour Mills Visual Arts Trust

Notes to the Financial Statements for the Year Ended 31 March 2023

23 Funds

Group

Unrestricted funds
General
General fund
Designated
Capital replacement
and renewal
Tyne & Wear Pension
Fund
Novated Funds -
Income Generation
Total unrestricted
funds
Restricted funds
Capital expenditure
Capital Repair
Reserves Account
The Virgin Money
Foundation Big Lottery
Fund #iwill fund Grant
B.Local Birtley
Neighbourly Project:
Anonymous Trust
Language Cafe
20 Babies
Inspired by
ICP - Misc Grants
IWM Commission -
Misc Grants
Bloomberg
CVAN
Total restricted funds
Total funds		 Balance
at 1 April
2022
£
2,065,175
596,639
52,000
-
648,639
2,713,814
20,534
702,618
-
-
20
-
-
-
-
-
-
-
723,172
3,436,986		 Incoming
resources
£
Resources
expended
£
5,001,599
(5,133,392)
-
(81,738)
-
-
734,015
(20,284)
734,015
(102,022)
5,735,614
(5,235,414)
-
(4,405)
-
-
30,905
(30,905)
5,964
(5,314)
12,343
(12,343)
2,673
(4,101)
9,376
(9,376)
4,040
(3,893)
46,870
(46,870)
99,057
(6,817)
13,814
(13,814)
40,051
(87,542)
265,093
(225,380)
6,000,707
(5,460,794)		 Transfers
£
Other
recognised
gains/(losses)
£
Balance
at 31
March
2023
£
384,051
-
2,317,433
(341,645)
-
173,256
-
(52,000)
-
(91,325)
-
622,406
(432,970)
(52,000)
795,662
(48,919)
(52,000)
3,113,095
-
-
16,129
-
-
702,618
-
-
-
-
-
650
-
-
20
1,428
-
-
-
-
-
-
-
147
-
-
-
-
-
92,240
-
-
-
47,491
-
-
48,919
-
811,804
-
(52,000)
3,924,899		 Transfers
£
Other
recognised
gains/(losses)
£
Balance
at 31
March
2023
£
384,051
-
2,317,433
(341,645)
-
173,256
-
(52,000)
-
(91,325)
-
622,406
(432,970)
(52,000)
795,662
(48,919)
(52,000)
3,113,095
-
-
16,129
-
-
702,618
-
-
-
-
-
650
-
-
20
1,428
-
-
-
-
-
-
-
147
-
-
-
-
-
92,240
-
-
-
47,491
-
-
48,919
-
811,804
-
(52,000)
3,924,899
795,662
3,113,095
16,129
702,618
-
650
20
-
-
147
-
92,240
-
-
811,804
3,924,899

41

VirtualSignature Transaction Ref. HHWC-P4P7-XPQF 18 Dec 2023 10:10:45 GMT (UTC +0) D 4/7 P 44/49

Baltic Flour Mills Visual Arts Trust

Notes to the Financial Statements for the Year Ended 31 March 2023

Charity

Unrestricted funds
General
General fund
Designated
Capital replacement
and renewal
Tyne & Wear Pension
Fund
Novated Funds -
Income Generation
Total unrestricted
funds
Restricted funds
Capital expenditure
Capital Repair
Reserves Account
The Virgin Money
Foundation Big Lottery
Fund #iwill fund Grant
B.Local Birtley
Neighbourly Project:
Anonymous Trust
Language Cafe
20 Babies
Inspired by
ICP - Misc Grants
IWM Commission-
Misc Grants
Bloomberg
CVAN
Total restricted funds
Total funds		 Balance
at 1 April
2022
£
1,847,147
596,639
52,000
-
648,639
2,495,786
20,534
702,618
-
-
20
-
-
-
-
-
-
-
723,172
3,218,958		 Incoming
resources
£
Resources
expended
£
4,008,651
(4,381,977)
-
(81,738)
-
-
734,015
(20,284)
734,015
(102,022)
4,742,666
(4,483,999)
-
(4,405)
-
-
30,905
(30,905)
5,964
(5,314)
12,343
(12,343)
2,673
(4,101)
9,376
(9,376)
4,040
(3,893)
46,870
(46,870)
99,057
(6,817)
13,814
(13,814)
40,051
(87,542)
265,093
(225,380)
5,007,759
(4,709,379)		 Transfers
£
Other
recognised
gains/(losses)
£
Balance
at 31
March
2023
£
384,051
-
1,857,872
(341,645)
-
173,256
-
(52,000)
-
(91,325)
-
622,406
(432,970)
(52,000)
795,662
(48,919)
(52,000)
2,653,534
-
-
16,129
-
-
702,618
-
-
-
-
-
650
-
-
20
1,428
-
-
-
-
-
-
-
147
-
-
-
-
-
92,240
-
-
-
47,491
-
-
48,919
-
811,804
-
(52,000)
3,465,338		 Transfers
£
Other
recognised
gains/(losses)
£
Balance
at 31
March
2023
£
384,051
-
1,857,872
(341,645)
-
173,256
-
(52,000)
-
(91,325)
-
622,406
(432,970)
(52,000)
795,662
(48,919)
(52,000)
2,653,534
-
-
16,129
-
-
702,618
-
-
-
-
-
650
-
-
20
1,428
-
-
-
-
-
-
-
147
-
-
-
-
-
92,240
-
-
-
47,491
-
-
48,919
-
811,804
-
(52,000)
3,465,338
795,662
2,653,534
16,129
702,618
-
650
20
-
-
147
-
92,240
-
-
811,804
3,465,338

42

VirtualSignature Transaction Ref. HHWC-P4P7-XPQF 18 Dec 2023 10:10:45 GMT (UTC +0) D 4/7 P 45/49

Baltic Flour Mills Visual Arts Trust

Notes to the Financial Statements for the Year Ended 31 March 2023

The specific purposes for which the funds are to be applied are as follows:

Capital replacement and renewal

The trustees have designated £173,256 of general reserves for the purpose of maintaining the fabric of the BALTIC building.

Capital expenditure

This fund represents the element of funding received from the Arts Council that is restricted for capital expenditure.

The Virgin Money Foundation #iwill Take Action Fund is a joint investment from the Big Lottery Fund and the Virgin Money Foundation. The #iwill Take Action Fund supported a 3-year programme at Baltic called Creating Change. Creating Change ran from 2017-2020 and aimed to embed social action in three Gateshead secondary schools; Cardinal Hume, Heworth Grange and Grace College (formerly Joseph Swan). The grant was predominantly used to pay for a freelance Producer to co-ordinate the project, the delivery of artist workshops, materials, trips, events and public art commissions.

B.Local Birtley relates to the funding received for the Art Lab programme which launched in May 2019 which is an ongoing holiday programme offering artist led activities, trips and lunches for families. The offer is developed with and for families living in Birtley and particularly families who usually access free school meals during term time. Following the success of Art Lab’s adaption during lockdown, where holiday fun and support was brought to the door of families living in Birtley in the form of creative packs and supermarket vouchers/ food deliveries, Art Lab August 2020 took a blended approach to offer activities and meals for three weeks of the School summer holidays. This approach was developed after listening to local families, our partners at the Birtley Hub Resource Centre, and other service providers and finding there was an appetite for in person activities. Birtley families were offered COVID-19 safe artist led workshops in person, take away activities and lunches as well as delivered creativity packs for those unable to attend in person.

Neighbourly Project: Anonymous Trust supports the communal, faith, language, and vocational lives of newly arrived communities across the borough. It engages refugees and people seeking asylum, taking steps to understand people’s priorities, address their concerns and support their ideas through a series of onsite and offsite programmes, collaborations and events. Programming includes hosting an annual Open Iftar, ESOL at BALTIC, digital conversation sessions, a monthly Language Café, International Art Clubs in two local schools and skills-matched volunteer and employment opportunities. The structure, aims and values of Neighbourly have been developed to explore the ways in which BALTIC can create long-term and sustainable relationships with refugee and asylum seeking communities, ensuring they have equitable access to BALTIC’s resources. A guiding question for Neighbourly is how can BALTIC be a ‘good Neighbour’ and how can we best support people to feel happy, settled and at home in the North East? Partners include Gateshead Council Resettlement Team, Best of Bensham, WERS, JET, the Angelou Centre, Comfrey Project and Ramadan Tent Project.

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Baltic Flour Mills Visual Arts Trust

Notes to the Financial Statements for the Year Ended 31 March 2023

Language Café relates to funding received for the Language Café which at BALTIC happens the first Saturday of each month in BALTIC Front Room. This is a free, fun, friendly and informal opportunity to meet new people and practice English speaking and listening. Drop-in from 2.30pm until 5pm. Free tea, coffee, soft drinks and snacks will be provided. Sessions are family friendly and include artist-led creative sessions for adults and children to keep us busy while we chat. We will also have special guests to meet and chat with to cover topics like community resources that might be useful, skills, opportunities and employability. We welcome and encourage participation from people with refugee and asylum seeking backgrounds as well as confident and native English speakers.

20 Babies relates to funding received for the '20 Babies' project. As a response to the lockdown experiences triggered by the COVID-19 pandemic, the ’20 babies’ project was formed. 20 babies has been designed and facilitated by BALTIC Centre for Contemporary Art and funded by Mayborn Group with research undertaken by Newcastle University. Starting in September 2021, the project worked with 20 families from Newcastle and Gateshead who had a baby during the first Covid-19 lockdown in 2020 (March - July 2020). The families attended weekly creative workshops that gave the caregivers a chance to explore their experience of the pandemic.

Inspired by relates to funding received for the Inspired project. The Inspired by project is led by BALTIC and a Freelance Artist. We applied to work with Hawthorn Primary on a project that would develop staff CPD in sculpture and inspire the pupils to get involved with creating a permanent sculpture in their school grounds. The Artist has led 5 sessions with the school’s art ambassadors: a mixed group of pupils from Reception to Year 6. In these sessions, they explored different types of sculpture, developed their vocabulary around it and tested some different ways of making. The AA’s designed two ideas for final piece and the school voted on what they would like to see in place. The final piece will see the entrance to the school come to life with an installation of rainbows, butterflies and mirrored stars suspended from the trees and stretching across to the school building as a way of welcoming visitors to school and sharing the school’s core values. The piece will be installed in August for a return to school unveiling in early September. On 15th July the Freelance Artist(s) will lead a whole school sculpture day for pupils and their parents which will see them creating elements of the final installation and experience making sculptures together.

CVAN relates to funding received from the Arts Council England and the Art Fund, for a national art programme titled Fair and Equitable, led by CVAN Contemporary Visual Arts Network, to bring colleagues together across the country to develop a dynamic network and invest in organisational development. CVAN is part of the Baltic and is a national network for contemporary art that supports and advocates for the sector.

Capital Repair Reserves Account relates to funding agreed from Gateshead Council in respect of capital expenditure. These monies are represented by monies which are included in the charity’s bank balance and shown on the balance sheet but are held by Gateshead Council on behalf of the charity. Refer to Note 25 - Analysis of Net Funds and Note 24 - Restricted Funds.

Novated Funds - Income generation

The novated funds were transferred from Gateshead Council are the remaining sum of the original Arts Council of England funding awarded to BALTIC which was agreed to be an endowment held in Gateshead Council’s accounts. These funds were novated from Gateshead Council to BALTIC to support an agreed income generation plan to support the recovery and future resilience of BALTIC in the post Covid-19 recovery. Agreed investments include feasibility studies, new areas of trading and capital investment in spaces which are income generating (for hospitality) or cost savings. This is an ongoing programme of investments which will be made between 2022 and 2025.

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Baltic Flour Mills Visual Arts Trust

Notes to the Financial Statements for the Year Ended 31 March 2023

Bloomberg

Baltic successfully received funds of 150,000 from Bloomberg Philanthropies - as Bloomberg Tech Fellow for the next year to 18 months. The project commencing January 2023 includes a newly developed single sign-on for www.baltic.at, development of CRM (Salesforce) system and usage across the organisation, a re-development of the online archive Baltic+ and establishing a new nature/wellbeing user generate platform site to encourage creativity entitled Nature & Nurture. The strategic objectives of this suite of projects include assisting in the sustainability of the organisation by increasing self-generated income and becoming more efficient, to invest in infrastructure and training to optimize insights, and to extend reach and relevance to regional, national and international audiences through building communities of knowledge and engagement. It is anticipated the projects come to conclusion and fruition by November/December 2023.

IWM

The IWM 14-18 NOW Legacy Fund is a national partnership programme of over 20 artist commissions inspired by the heritage of conflict. Led by Imperial War Museums, the IWM 14-18 NOW Legacy Fund was created following the success of 14-18 NOW, the official UK arts programme for the First World War centenary. The £2.5 million commissioning programme has been made possible thanks to the success of Peter Jackson’s critically acclaimed film They Shall Not Grow Old, co-commissioned by IWM and 14-18 NOW.

ICP

The R&D project titled Cosmovisions on Land and Entangled Futures proposed to create space and time to build collaboration and in-depth co-creation of ideas relating to the interdependence and de-hierarchisation between human and nature. It offered a platform to connect local, territorial and social struggles with pressing global concerns to imagine other possible realities that respond to more sustainable futures. The project included an artist residency at La Escocesa, Barcelona; a research grant; two artists’ commissions; a two-day event in Pivô, São Paulo; and four Research Labs to be developed by the partner organisations. Cosmovisions on Land and Entangled Futures was a partnership between Baltic Centre for Contemporary Art (UK), Capc Bordeaux (FR), La Escocesa (ES), Más Arte Más Acción (COL) and Pivô (BR). It was funded by the British Council’s International Collaboration Grants, which are designed to support UK and overseas organisations to collaborate on international projects.

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Baltic Flour Mills Visual Arts Trust

Notes to the Financial Statements for the Year Ended 31 March 2023

24 Analysis of net assets between funds

Group

Unrestricted

Tangible fixed assets
Net current assets/(liabilities)
Total net assets
Tangible fixed assets
Net current assets/(liabilities)
Pension scheme liability
Total net assets
25 Analysis of net funds
Cash at bank and in hand
Liquid resources
Net funds		 General
£
Designated
£
589,312
675,267
1,728,121
120,395
2,317,433
795,662
Unrestricted
General
£
Designated
£
652,956
391,992
1,412,219
204,647
-
52,000
2,065,175
648,639
At 1 April
2022
£
1,915,037
702,618
2,617,655
2,617,655		 Restricted
£
39,633
772,171
811,804
Restricted
£
19,877
703,295
-
723,172
Financing
cash flows
£
298,695
-
298,695
298,695		 Total funds
at 31 March
2023
£
1,304,212
2,620,687
3,924,899
Total funds
at 31 March
2022
£
1,064,825
2,320,161
52,000
3,436,986
At 31 March
2023
£
2,213,732
702,618
2,916,350
2,916,350

Liquid resources represents a balance deposited with Gateshead Council and held within restricted funds for capital expenditure.

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Baltic Flour Mills Visual Arts Trust

Notes to the Financial Statements for the Year Ended 31 March 2023

Cash at bank and in hand
Liquid resources
Net funds		 At 1 April
2021
£
1,434,934
702,618
2,137,552
2,137,552		 Financing
cash flows
£
480,103
-
480,103
480,103		 At 31 March
2022
£
1,915,037
702,618
2,617,655
2,617,655

26 Related party transactions

Group

During the year the group made the following related party transactions:

Baltic Contemporary Visual Arts Trading Limited

(Subsidiary)

During the year, the charity made sales relating to management fees of £31,472 (2022 - £23,327) and received a gift aid distribution of £224,045 (2022 - £46,461). The charity also made purchases relating to shop stock of £Nil (2022 - £430). At the balance sheet date the amount due from Baltic Contemporary Visual Arts Trading Limited was £267,972 (2022 - £364,880).

K C Wexford Campbell

(Trustee)

During the year, the group was charged £Nil (2022 - £150) in relation to talking fees. At the balance sheet date the amount due to/from K C Wexford Campbell was £Nil (2022 - £Nil).

Newcastle NE1 Limited

(Directors in common)

During the year, the group received a refund in relation the Business Improvement District Levy of £Nil (2022: £367). At the balance sheet date the amount due to/from to Newcastle NE1 Limited was £Nil (2022 - £367).

Ward Hadaway

(Directors in common)

During the year, the group received donations of £Nil (2022 - £5,000) The charity also made purchases relating to legal advice of £16,020 (2022 - £5,254). At the balance sheet date the amount due to Ward Hadaway was £1,360 (2022 - £400).

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