Company nLimber. 03589539 (England and Wales} Cliarily number. 1076251 Baltic Flour Mills Visual Arts Trust IA Company Limited by Guarantee) R8POrt and Flnancial Statements For the Year Ended 31 March 2024 Baltic Flour Mills Visual Arts Twst (A Company Limited by GLiaranlee) REFERENCE AND ADMINISTRATIVE DETAILS Charity number.. Company nLimber'. Registered office.. 1076251 03589539 Baltic Centre for Contemporary Art, Gateshead Quays, South Shore Road, Gateshead, Tyne & Wear. NE8 3BA Advisors Auditors Bankers CLA Evelyn Partners Ltd 17 Queens Lane. Newcastle upon Tyne. NE1 1 RN Virgin Money Norlhumberland Street. 132-134 Northumberland Street. Newcastle upon Tyne, NE17DG TrLislees-. S Bryson A W Donaldson C Oonovan J G Gamble K Lang C Sexton M A Sealy T R Slii'ling Love K C Wexford Campbell P C Gentry TJGray J Cibic N J Catlerall C S L Staehr V J Barron JPBeer K J Fernandes (Resigned 19 October 2023) {Appoinled l November 2023) (Appointed 1 November 2023) (Appointed 1 November 2023) Key Management Personnel.. S Munro - Director l Arislizabel - Head of Curatorial and PLiblic Practice K Gray - Director of Enterprise and Public Value Baltic Flour Mills Visual Arts Trust (A Company Limited by GLiaranlee) TRUSTEES, REPORT INCLUDING THE STRATEGIC REPORT FOR THE YEAR ENDED 31 MARCH 2024 The Trustees (who are also the Directors of the charity for the purposes of company law} present their annual report and audited financial statenienls of Baltic Flour Mills VisLial Arts Trust for the year ended 31 Marcli 2024. ORGANISATIONAL HIGHLIGHTS 2312024 Baltic continues lo be the UK'S largest independent contemporary art inslituh.on and in 2023 was the most visited free allraclion in the North East of England, with 43 % of visitors under 35 and 34010 from deprived areas. We presented a diverse programnie of exhibitions, events, ediicalion, artists residencies. and communily programmes alongside new social entrepreneiirial approaches lo building our resilience including launching a new Weddings business and securing over 300k from the National Lollery Community Fund in collaboration with our resident Community organizalion North East YoLTng Dads and Lads. Our exhibition programme of inlernalionally facing contemporary art explorlng global issues inclliding social jLislice, inequalities and the climate emergency was underpinned by a strong socially driven mission. Baltic provided important milestone opportunities for artists, development, including showcasing and commissioning artists al all career stages. Baltic's wide-ianging Learning & Engageinenl programme continued lo include 8 strong engagement of local audiences, particularly CYP and families and underrepresented communities in Gateshead, with inilialives Slich Big Days Out, Neighbourly and the Front Roorn. Visits by C2DE, BIPOC and, most notably, family visits make up 40/0 of audiences annually. For every £1 invested by the council, we generated £43, bringing £6.3m lo the region in 2023124. 4Q /0 of audiences are from people from lower socio economic backgrounds, ethnically diverse and families. 20 years on from conversion, the building costs remain our most significant challenge taking increasing resource and capacily lo maintain impacting on exhibition and learning programmes. We are grateful lo the slipport of Arts Council England for their annual award of E3.8m and lo Gateshead Council for £141k funding and Northiimbria University who remain key partners. BALTIC generated £1.4m in earned income with a strong range of commercial events. hires and catering making up an increasing proportion ol our core funds. Baltic continued lo play a key sector leadership role through co-chairing the national Conlernporary Visltal Arts Network ICVAN} and hosting Ihe regional CVAN network (Arlisl Network North East). CVAN played a key role over 2022123 in leading the Fair & Equitable Plan which ha5 successfully galvanised the visual arts secloi around addressing the social and economic circumstances of individual praclilioners. in collaboration with among others UCL, the Visual Arts Alliance and Plus Tale. We remained al a five-day operational model lo ensure long-term financial sustainability and have seen average daili/ allendances rellirn lo 87 % of what they viere before the pandemic. Baltic Flour Mills Visual Arts Trust IA Company Limited by Guarantee) TRUSTEES, REPORT INCLUDING THE STRATEGIC REPORT (Continuedj FOR THE YEAR ENDED 31 MARCH 2024 Financial Review The financial slalemenls for the year to 31 March 2024 repori a surplus of £70,879 {2023 - £599,099}. This is after adjuslmenls lo reflect a zero position in relation lo the defined benefit pension scheme, which is now in surplus. Principle funding sources BALTIC meets ils funding needs from the following principle sources.. Arts Coiincil England. Gateshead Council. Earned income from sponsorship. hospilalily, retail, caleiing and facilities hire a5 well as car parking fees alongside charitable donations from individuals and trusts and foundations. From April 2023 to March 2024, BALTIC welcomed 375,230 visits during gallery hours, and 414,088 overall, representing a 50/0 increase on the previous ye2r118k in real lermsl. Visits have increased year-on-year following the pandemic bul are still below the figure of 426k recorded in 2019120. Following the shift to a five-day week, vis119 per day are now higher than before the pandemic. Overall, Baltic has an 87°/o recovery rate compared with pre-pandemic 2019120 visit figLires. Notably, for the 2023 calendar year, Baltic has been conlirrned as being the most visited free attraction in 2023 in the North East in Visit Britain's annual published report. In 23124. Baltic's visitors were most likely to be 45-64 al 310/0, followed by 2544 130Qkl whilst 11 D/0 were 16-24 and 18 % were under 16 and 10 % were 65+ The age profile over tlie past three years is also broadly in line with 2019120, providing evidence Ihal it has sellled into a 'normal' pallern following tlie pandemic. While the visit origin profile remained proportionally stable, there has been year-on-year growlh in visits from Tyne and Wear following the pandemic. Lapsed visits from Tyne and Wear increased significantly from 130kn to 20DA, a real-lerms uplift of 30k visits. This year saw a significant increase in lapsed visits across Q1-Q3. At 41 % , Families are the largest visitor type at Baltic, with this group significantly more likely than average to come from the North East. The diversity of visitors recorded that the proportion of BAME visits remained in line with last year at 9°A, equating lo a real-temis increase of 2k from 31 k to 33k. All exhibitions were rated highly, but Chris Killip.. relrospeclive received the highest proportion of 'very good, ratings al 660/0, pILlS a further 29 % good rating. In AugLisI 2023, visitors on 14 % of visits said that seeing thi5 exhibition was their main reason for visiting the gallery, the highest monllily figure for any exhibition shown during 2023124. Michael Rakowilz.. The Waiting Gardens of the North. coinniissioned in partnership willi Imperial War Museums, received positive ratings. viith 870/D of those who visited saying il ¥vas innovative and thought provoking. This year saw a significant increase from 71 10 85 % OF visitors who would go onlo positively recommend Baltic lo others. with the uplift most prominent among firsl-lime visitors. Baltic Directors Report Our teams started lo explore Radical Hospitality and Kindness as a Visitor Experience practice. An improvised responsè lo a financial challenge that has led lo innovative new practice and leadership for BAL TIC across the wider sector. Front Room with ils donation refreshments. fruit & social programme has handed oul over 60,000 cups of free hol drinks over the year, provided free breakfast for over 1,000 visitors throughout school holidays. Front Room provides free Swap&Share events & a festive Pop-up Pantry, offering apportLinilie5 for communilies to access free clothes, foodlcare items & literacy through regular free book swaps {every 6 weeksl. The visitor experience team delivered a dedicated selection of exhibition tours with a total of 5773 visitor lakers. Wilh addilioiial. specific inleraclions with visitors serving tea & grinding spice5 Ivhich achieved a lolal of 5646 visitor takers in the Michael Rakowilz exhibition this year. Baltic Flour Mills Visual Arts Trust (A Company Limited by Guarantee) TRUSTEES, REPORT INCLUDING THE STRATEGIC REPORT (Continued) FOR THE YEAR ENDED 31 MARCH 2024 Health and Safety Comprohensive Training Programme - 23-24 Established an organisalional wide, lop lo bollom, approach to ensliring best practice in Health and Safely on accredited 3 day courses IOSH Leading Safely Tfftining 12 Employees), IOSH Managing Safely Training 115 Employees).. IOSH Working Safely Training (20 Employees) Display Screen Equipment Training154 employees),. Health & Safety Basics & Essential (all users),- Fire Awareness Training (all users). Programme Highlights 23-24 Throughout this year, we continued lo biiild back from the impacts of the pandemic. inflation and post Brexil challenges by extending the duration of our exhibitions as a key strategy lo reduc8 resoiirces. whilst focusing on the international quality and local relevance of our Artistic Progranime, presenting nine exhibitions in the year across our 4 main galleries. These incliided iwo group shows and seven solo exhibitions by emerging or under- represented artists of national and international significance and mid-career suNeys for national and international artists. Our aim is lo give artists a SUPPOrtive platform for the development of their practice. often producing new commissions, introducing international artists to UK audiences for the first lime and offering a significant national and inlernalion81 platfomi. Hew Locke.. The Procession.118 February 2023 - 11 June 20231 commissioned by Tale and originally presented al Tate Britain in 2022, The Procession t8kes as its starting point the history and character of Tale Britain's building and ils original benefactor, the sugar refining magnate Henry Tale. More broadly, Locke invites visitors to 'reflecl on the cycles of history, and the ebb and flow of cultures, people. finance and power,. The figures travel through space bul zlso through lime. They carry historical and cultural baggage.. the evidence of global financial and violent colonial conliol embellishes their clothes and banners. Images of the coloni81 architecture of Locke's childhood Guyana emblazon the flag and their bearers, its flooded fields and rotten wooden iyalls vanishing under the rising sea level. Presented in Ballic's Level 4 gallery space, the exhibition was hugely POPLilar and allracled 52,924 visitors. Chris Killip.. Relrospeclive. (1 April 2023 3 September 2023) Ivas a full career retrospective by one of the UK'S most important and influential post-war dociimentary photographers, Chris Killip (1946-2020). The exhibition served as the most comprehensive survey of the photographer's work, with his images from the North East of England al the core. Grounded in suslaiiied immersion into the commiinities he photographed, Chris Killip's photographs of those affected by economic shifts IhFouglioLII the 1970s and 80s in the North of England remain wilhoul parallel. Whilst marking a moment of de-induslrialisation, Killip's stark yet lender observation moves bèyond the urgency to record such circumstances. lo affirm the value of lives he grew close lo lives that, as he once described. 'had history done lo them,. The exhibition was curated by Ken Grant & Tracy Marshall-Granl and produced in collsboralion with The Photographers. Gallery. London. The exhibition iva5 hugely popular, especially with local audiences, and attracted 92,751 visitors Larry Achiampong Wayfinder, (20 May 2023 29 October 20231 was a Major solo exhibition by BTilish-Ghan3ian artist Larry Achiampong spanning across the Level 2 and Level 3 galleries. The exhibition included the art151's debut fealure-lengih film Wayfinder (20221 commissioned by Tiirner Conlemporapl with MK Gallery and Baltic. Working in film. sculpture. installation, sound. collage, music and perfornance, Achiampong draws on his personal and shared heritage lo explore class, gender, the intersection between POPLilar Clillure and the residues of colonisalion. His work examines digital idenlilies and conslriiclions of 'lhe self., offering mLilliple perspectives that reveal the deeply entrenched ineqLialilies in our society. Across both floors, this exliibilion allracled a cotnbined number of 170,911 visitors. Baltic Flour Mills Visual Arts Trust IA Company Limited by Guarantee) TRUSTEES, REPORT INCLUDING THE STRATEGIC REPORT (Continued) FOR THE YEAR ENDED 31 MARCH 2024 Michael Rakowilz-. The Wailing Gardens of the North {20 May 2023 29 October 20231 was developed with Iraqi- American artist Michael Rakowitz and Commissioned by Baltic in partnership with the IWM 14-18 NOW Legacy Fund, this major project presented ali evolving indoor garden tended by communities who have experienced forced displacement and are seeking refuge. The IWM 14-18 NOW Legacy Fund is a national partnership programme of over 20 artist commissions dealing with war and conflict. Led by Imperial War Museums, the IWM 14-18 NOW Legacy Fund was created following the SLiccess of 14-18 NOW, the official UK arts programme for the First World War centenary. The £2.5 million commissioniiig prograinme lias been niade possible thanks lo the success of Peter Jackson's critically acclaimed film They Shall Not Grow Old, co-commissioned by IWM and 14-18 NOW. Rakowilz's exhibilioii wa5 conceived as a garden and continued lo grow and develop dltring ils run with Baltic's Level 4 gallery. Alongside newly created 8rlworks, the installation presented a collection of plants at different slages of their growing process. Born out of collaboration with residents of Gateshead and Newcastle who have experienced forced displacement, Rakowilz's garden aiTrongst ruins acted as a metaphor for tlie overlapping histories of imperialism, war, displacement, trauma, and adaptation tlial people, cultural objects, and plants carry with them. Building on Baltic's Gallery of Sanctuary slalus awarded in February 2022 which recognises it5 efforts in supporting sanclliary seekers, The Wailing Gardens of the North was developed in collaboralion with community gardens and organisalions that support people seeking 5anctiiary in the North Easl of England: The Comfrey Project. the Wesl End Refugee Service {WERS), Scotswood Garden and Dilston Physic Garden. The exhibition attracted 130.962 ViSltors. Project Artworks & Baltic Residential Exhibition, (23 September 2023 25 February 20241 residential followed a year-long co51aboralive project of awareness-raising and relationship-building in the North East of England between Project Art Works and Baltic, neurodiverse communities, artists and caregivers. The exhibition in Baltic's Ground Floor gallery presented a new film, and large-scale paintings, drawn from the Project Art Works archive of over five thousand physical works. The inslallalion was used for a series of collaborative events Ilial brought different people, audiences and artists together in creative production. Residential forms part of Explorers. a national programme Ihal increases the visibility and presence of neurodivergent artists in contemporary art. Explorers creates pathways for cultural organisations to deepen Iheir understanding and commit to inviting artists and their carers into theii spaces as producers and collaborators. The exhibition allracled 67,380 visitors, Baltic Flour Mills Visual Arts Trust IA Conipany Limited by Guarantee) TRUSTEES, REPORT INCLUDING THE STRATEGIC REPORT (Continued) FOR THE YEAR ENDED 31 MARCH 2024 Stepping Softly on the Earth. {18 November 2023 14 April 20241 is a group exhibition where through a collaborative research project that investigated land rights and the social and political agency of nature from non- exlraclivisl perspectives. The project had an inlerdisciplinary approach that locused on practices Ihal reveal worldviews al the inlerseclions between land rights and climate justice, questioning and opposing Euro-capilal- centric and dominant narratives. Based on experimentation and collaboration, the project explored formals that challenge the hierarchical slriiclures of production and preseiilalion of knowledge, incorporating the voices of artists, and collaboration and exchange in the development process. The R&D project included an artist residency at La Escocesa. a research grant, two artists. commissions, online events and five Research Labs developed by each partner organisation. Brazilian artist Aline Baiana was invited lo spend a month-residency at La Escocesa, Barcelona (October 2022). Colombian writer and cultural producer Beatriz E. Balanla was selecled lo develop her project Palo.. Paila-LiqLiid Memories that explored how Black people re-imagine concepls such as humanity, naliire, life, and death in the face war and environmental disaster in the neighbourhood of Las Dos Aguas, in the town of Puerto Tejada near Cali, Colombia. Cosmovision's on Land and Enlangled Futures was a partnership belween Baltic Centre for Contemporary Art (UK), Capc Bordeaux (FRI, La Escocesa IESI, Mas Arte Mas Accion (COLI and Pivo (BRI 11 was funded by the British CoLincil's International Collaboration Grants. which are designed to support UK and overseas organisalions to collaborate on international projects. The exhibition attracted 58.713 visitors. Ayo Akingbade.. Show Me the World Mister, (18 November 2023 - 14 April 20241 was comprising of two Trew film cominissions. The Fi51 and Faluyi {2022}, both shot on location in Nigeria, are distinct but inlerconnecled works build upon Akingbade's interest in history, place-making. legacy and power. The Fist is a study of the first Guinness brewery built outside of Ireland and the UK, located on the outskirts of Lagos. Akingbade draws attention lo the deep-rooled politics embedded in the production of this popular drink. Faluyi follows the prolagonisl's life on a journey tracing familial legacy and mysticism in ancestral lands. The two films were presented in the gallery divided by a slrLiclure made of aluminium, steel and polycarbonate that resembles the infrastructure of the Guinness factory itself. Both works are co-produced by Chisenhale Gallery, London, and Spike Island. Bristol, and commissioned by Chisenhale Gallery.. Spike Island., the Whitworth. The Universily of Manchester.. Baltic Centre for Contemporary Art, Galeshead,. and John Hansard Gallery, Soulhampion. Following the presentation al Baltic, Ihe work was exhibited al the Whitworth. The University of Manchester. The commission and ils acqLllSltion by the Vvhitworth, The University of Manchester collection, are made possible with Art Fund support. With additional siipport fro￿ the Chisenhale Gallery Commissions Fund and WEVA4 Iwesl of England Visual Arts Alliance) The exhibition attracted 44,794 visitors. Baltic Open Submission 2024, {16 March 2024 22 September 2024) In association with Fenwick, this exhibition presents over 100 artworks from North East based hobbyists and sell-laught creatives, alongside several works by established artlSts drawn from over 1400 submissions. An exhibition of 107 artworks showcasing painting, sculpture, photography, video and mare by artists. makers. self-laught creatives and hobbyists based in North East England, alongside several works by established artists. ArtWOTks were selected from over 1400 submissions by our expert panel,. North East musician and lead singer with Maximo Park, Paul Smith", artist Jasmina Cibic,. Leo Fenwick. Strategic Partnersliips Director. Fenvjick.. Niomi FaitNvealher, Baltic Curator", 8nd Rose Mcmurray. Baltic Assistant Curator. Established artists incliide Phyllis Christopher, Newcaslle-based photographer known for documenting LGBTQ+ sexuality and prolesl in 1980s11990s San Francisco,. Holli Hendry. London-based SCLilplor and installation arlisl who explore5 what lies beneath the surface. frotn hidden underground spaces lo the inlei.ior vjorkings of the body., and British instilLtlion, hoLisehold name and prolific painter Jim Moir laka Vic Reeves) whose submission is a newly completed. unseen work. So far. this exhibition has allracled 71,751visilors and the preview received 1004 visilors. Baltic Flour Mills Visual Arts Trust IA Company Limited by Guarantee) TRUSTEES, REPORT INCLUDING THE STRATEGIC REPORT (Continuedj FOR THE YEAR ENDED 31 MARCH 2024 Lighlbox commissions by Annabelle Blackel of Foundation Club Residency opened {22 March 2023 17 July 2023}. local artist Jill Tate opened119 July 26 November 2023), and then YLI Have Already Sutvived a colourful mapping of a celebration of sound, poolry baniiers. sculpture5 and photography by local artist gobscure opened (29 November 2023 - 10 March 20241. Lily Senner.. Tyneside Dreaming {16 Marcli 2024 - 15 July 20241 co-inside with Baltic Open Submission and was selected through an open call process. The lightbox depicted paintings of Othe￿or1dlY landscapes and were created through meniory and imagination. Across the year we also hosted and developed numerous public events, like In Conversation.. Professor Sonya Boyce, In Conversation.. Hew Locke & Larry Achiampong and Terrains of Care ivilli Project Artworks. BALTIC hosted arlisl Enima Bentley Fox for the Baltic x Shape Emergent Residency in collaboration with Shape Arts. A5 parl of the Arlisls Development Programme, we conceived a new residency opportunity and h051ed regional artist Mani Kambo. Throughout her residency, Kambo had access to Baltic's expansive facilities as well as CLiralorial and technical inpLIt. Overall. the residency was devised lo provide Kambo with pivotal care that will aid her practice and SLlPPOrt Ilie development ol new work for her exhibition which will lake place in Ballic's Level 2 gallery in December 2024. Baltic's Artist Development Pragramme was established in 2022 and offers learning and developmental support for artists and curatois working across the North East. We also created opportunities for local artists and creatives lo receive feedback on their work IliroLigh a series of photography crils and artist studio visits. Risk Management BALTIC has adopted a risk management strategy. The risk management strategy forms parl of the overall internal control slriiclLire and corporate governance arrangenienls. The strategy provides def inilion5 of relevant terminology and details responsibility and accoLintability wilhin BALTIC. The strategy also descri bes Ilie management process, including the idenlificalion and measurenienl of risk and the main reporting arrangements. Risk appetite is the lemi Lisecl lo determine the risk that is appropriate for BALTIC. Risk are considered oli an individual basis Lising a risk model to determine the impact and likelihood of a potential risk and the appropriate response lo the outcome of measuring each risk. The Risk Register is reported to the Trust and Audit Committee as appropriate. The significant risks identified are.. Loss of stakeholder income as Arts Council England 5 largest visual arts National Portfolio Organisalion BALTIC is particularly exposed lo changes in government policy for arts funding. INhilsl BALTIC has been successfLII in minimising he iiiipact of p055ible reductions in stakeholder funding. il remains a significant risk. The general economic climate remains a risk to BALTIC in lemis of achieving appropriate and adeqiiate levels of earned inconie, through ils siibsidiary Baltic Contemporary VIsLial Arts Trading Limited. to deliver planned levels of Gharilable activity. Baltic Flour Mills Visual Arts Trust IA Company Limited by Guarantee) TRUSTEES, REPORT INCLUDING THE STRATEGIC REPORT (Continued) FOR THE YEAR ENDED 31 MARCH 2024 Reserves Policy The Trustees have considered the Reserves policy they wish lo follow with regard lo BALTIC (inclusive of ils subsidiary BALTIC Trading Company Ltd), in compliance with relevant legal. regulatory, tax and accounting rules e.g. in regard lo use of endowments or other reslricled funds. Generally BALTIC also Tecognises that fLinds can only be used for the specific or broad purposes indicated al the lime of fundraising. BALTIC expects lo receive gifts, donatioiis, legacie5 and bequests froni philanthropists, trusts and the general public in addition to regular funding from Arts Council of England aiid Gateshead Council. Typically, receipts will be in cash bul where a donation or gift is in another forni, such as shares, properly or artworks, Baltic may choose lo donate or liquidate rather than hold the asset. subject to any conditions of the donor. BALTIC m2y pool. for banking or inveslmenl Plirposes. any or all monies held in reserves. whether reslricled or unreslricled resetve5. Any investment income or capital gainsllosses, whether realised or Liiirealised, will be apportioned pro-rate across all the reserves within the pooled investment. In the case of capital endowirenls, inconie and capital elements will be accounted for separately. Where a capital endowment has been depleted due lo investment losses, there is assumed lo be no obligation lo reinslate the original capital balance. BALTIC will hold both reslricled and Linrestricted reserves. Restricted reserves are subjecl lo conditions and limitations on the use of the fLinds, usually due lo specific conditions imposed by the donorlgranl giver or general expectations set in fundraising campaigns. Uiireslricled resetves are receipts that are unencumbered by conditions and may be ulilised as BALTIC sees fil, in line with its Objects. BALTIC may cl)oose to designate land un-designalel portions of ils Linreslricled resetves for particular purposes, creatiiig "unreslricled designated reseNes" as opposed to 'unrestricled general reserves" BALTIC detemines the correct calegorisalion of funds al 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 organisalion t17e IrLislees consider that they should hold in the balance sheet an Linencumbered minimuni cash reserve eqlial to three months of the normal operating cost base (exclusive of programinelmarkeling costs) plus any liabilities lo pension andlor bond aiidlor deposits or a minimum of £750.000. Capital Project designated reserve A Capital Plaii will be developed lo ensiire the maintenance and improvement of the bLiilding for the benefit of the public, environmental suslainabilily and income generation. Specific contingency amounts (usually 1 OYD of project value) will be provided in project budgets in addition lo Ihe uiirestricled general reserves. Review of Policy The Board of TrLislees is Lillimalely responsible for the nianagemenl of resetves and will review the reserves policy annually. Tlie accounting policies used in preparing the financial slalemenls are unchanged from the prior year. Financial Risk and management policy The Trust's priiicipal financial inslriimenls coinprise cash and cash eqliivalents. Other financial assets and liabilities. such as trade creditors aiid trade debtors. arise dirL%clly from the Trust's operating aclivilies. The Inain risks associated with the Trust s financial assets and liabilities are sel out beloi4V. The Ti'LisI does not undertake any hedging activity and any significant financial iisks are addressed ors a case-bji _case basis. Baltic Flour Mills Visual Arts Trust (A Company Limited by Guarantee) TRUSTEES, REPORT INCLUDING THE STRATEGIC REPORT (Continue FOR THE YEAR ENDED 31 MARCH 2024 Interest Rate Risk The Trust invests SLirplus cash in floating rale interest yielding bank accoiinls, therefore financial assets, interest income and cash flows can be affected by movements in iiiterest rates. However, the TrLislees do not consider there lo be any significant exposure. The TrLlSt has no bank borrowings. Price Risk There is no significant exposure to changes in the carrying value of financial liabilities. Credit Risk The TrLisI's policy is aimed at minimising such losses. Individual exposure and overdue deb15 are monitored with customers lo ensure the Triisl's exposure to bad debts is not significanl. Liquidity Risk The Trust aims lo miligale 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 authorily are in place. Foreign Currency Risk There are minimal transaction in foreign currency. As a result. no hedging activity is undertaken to miligale this risk. Investment Polioy The Trust ensures that any investment slrategy it adopts does not put at adverse risk any of Ihe assets it is responsible for. Funds are placed on deposit al the highest possible interest rates, consistent with Cash flow requirements. Strategic Objectives Strategic Objective l.. Develop and enhance BALTIC'S reputation as an outstanding international art space, cornmissioning producing and presenting innovative work by a diverse range of artists that is concepiiially rigorous. inspired by new perspectives and practices, has relevance and meaning for a wide range of audiences, and has the power lo inspire ways of understanding the world. Strategic Ohjective 2.. Deepen engagement, appreciation and enjoyment of international contemporary arl, continuing to develop BALTIC'S position as an international leader not only in contemporary art production and presentation, bul in creating innovative approaches that deepen engagement with diverse audiences and communities across all of our aclivilies. Strategic Objective 3.. Increase BALTIC'S resilience and deliver positive financial results. Sliategic Objective 4.. Advance BALTIC'S sectoral leadership. Slralegic Objective 5.. Enhance the capacity for children and young people from diverse backgrounds lo engage with and affect their world IhroLigh their involvement with BAL TI C's programmes. Baltic Flour Mills Visual Arts Trust (A Company Limited by Guarantee) TRUSTEES, REPORT INCLUDING THE STRATEGIC REPORT (Continued) FOR THE YEAR ENDED 31 MARCH 2024 The Trust's strategy for achieving the strategic objectives Deliver and monitor the organisalional Business Plan in line with Arts CoLincil Eiiglaiid's Nalional Portfolio funding agreement Maintain open and regiilar communication with Gateshead Council, Arts Council England and Northumbria University as a basis for ensuring mutually supportive and beneficial relationships. Further strengthen the artistic programme by working with si9nificaiil and internationally acclaimed artists and be establishing relationships with niajor international inslilulions. Ensure that financial resources are used as effectively as possible and strive for greater efficiency across the organisation. Maximise sell-generaled incoire across trading activities, trusts and foundations. individu81 giving aiid corporate and strategic partnerships thereby making the organisalion more resilient lo fluctuations in public funding. Develop the Environmental Action Plan lo ensure that the organisalion's impact on the environment is monitored and minimised. Continue lo promote and priorilise eqiialily and diversity across all areas ol BALTIC'S activities an operalioiis by implementing and monitoring effective aclion plans. Conliiiue lo deliver learning and engagement programmes that create demonstrable impact with individuals and commlinilies. Continue lo build intelligence on audience molivalions, expectations and needs to inform the implementation of BALTIC'S audience development strategy. Provide a consislenl and excellent service for all visitors and users of BALTIC. Fundraising The charity is required lo report how il deals with fundraising from the public. The charity does not iise a professional fundraiser or commercial participator lo raise funds. Ar)y monies raised direct from the public follows all guidelines sel out by the Charity Commission and UK law in every respect. We respect the privacy and contact preferences of all Pliblic donors. Baltic Flour Mills Visual Arts Twst {A Company Limited by Guarantee) TRUSTEES, REPORT INCLUDING THE STRATEGIC REPORT (Continued) FOR THE YEAR ENDED 31 MARCH 2024 STRUCTURE, GOVERNANCE AND MANAGEMENT Governing documents 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. Appointment of Trustees From lime lo lime il is necessary for the Trust lo recruit new Trustees to replace those Ihal have either resigned during their lemi of office. or by way of anlicipaling plaiined reliremenls after the completion of either a single term of three years. or a maximum period of six years, beiiig two terms of three years. It is the Trust's normal practice la place regional and national advertisements which invite interested and suitably experienced people lo apply lo be a Trustee, alongside niaking informal approaches lo individuals who are alieady known lo the Trust and who appear lo have the necessary qualities and iiileresl in whal we do. AllhoLigh not strictly a public appoiiJln7ent, when selling out the essential requirements of potential Trustees, the Trust chooses lo make it known that it expects appoiiilees to follow the seven principles of public lile a5 defined by Ihe Committee on Standards in Public Life Shorl-lisled applicants are interviewed and assessed by a panel of existing Trustees chaired by the Chair of Ihe Board. Appointments are subsequently recommended lo the Board and approved by members of the company al the next General Meeting. Induction and trainlng 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 fomial training sessions for the Board as a whole as and when appropriate. All Trustees, as well as cetiain senior staff and the directors of the trading c(Impany, are required lo declare, and maintain as continuing lo be accurate, a declaration of inleresls. The Audit Committee review the Register of Interests on an annual basis. Arrangements for setting key management personnel remiineration The board, who give their lime freely and no Iruslees received remuneration in the year, have considered who the Key Management Personnel IKMPI of the charily are. as noted in the reference and administration section. Together with the board, these KMP are those in charge of dii'ecling and controlling. running and operating the activities of the charity on a day lo day basis. Tlie pay of the KMP is reviewecl annLially and polenlially increased in accordance ivith pail proposals considered by Ilie Iruslees for the Salary structure of the whole organisalion. The trustees benchniark again51 pay levels ol other charities and similar organisalions iNilhin the sector and the region. Pay levels are set iising Ili15 inlornialion together Ipiilh budget and forecast inforn)alioii, ensiiring Ilial the charity can afford any proposed increases. The board then agree any uplift lo remLineralion. 10 Baltic Flour Mills Visual Arts Trust IA Company Liniiled by Guarantee) TRUSTEES, REPORT INCLUDING THE STRATEGIC REPORT (Continued) FOR THE YEAR ENDED 31 MARCH 2024 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 helshe Shall be a director nominated by BALTIC'S stakeholders,. being Gateshead CoLincil and Arts Council England. In determining its organisalional slruclure. BALTIC has distinct duties for the Chair. Board of Trustee5, and Director (who is the Chief Execulivel. The Board meets four limes a year. or as is reqliired lo deal with any specific issues. Issues concerning finance. inclLiding financial regulations, premises. asset management, the lelling of significant contracts are scrulinized and overseen by the Finance and ALidil Committee which meets three limes a year or more frequenlly as required. The Finance and Audit Committee is chaired by a co-opted member, independenl from the Board of Trustees. The Finance and Audit Committee membership is required, as sel out in the lemis of reference, lo be made up of a combination of the Board of Trustees, and members independent of management of the Trust and any stibsidi8ries. 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 lo oversee and scrulinize the management of commercial enterprises. Relationships with related parties The Trust has a wholly owned subsidiary company, Baltic Contemporary visual Arts Trading Limiled, the principal activity of which is Ilie provision of catering, retail, corporate sponsorship and room hire seNices. The surplus generated by the company is gifted lo the Trust (see note 25 to the financial statements}. Going Concern The Chairly's forecasts and projections for the next twelve months show Ilial the charity shoLild be able lo continue in operational exislence for that period, considering reasonably possible changes in trading performance. This also considers the effectiveness of available measures lo as51sI in miligaling the impact. The charity and ils trading subsidiaries have strong positive cash balances and is forecasting for Iliis lo continue lo be the case. The TrLislees have stress tesled their forecasts, considering varioLlS scenarios and reniain confident Ihat the uncerlainlies do not cast significant doubl on the company s ability to continue as a going concern. Auditors In accordance with the Companies Act 2006 a resolution proposing the appointment of CiA Evelyn Partners Limited as auditor for the year ending 31 March 2025 will be pul lo the members. 11 Baltic Flour Mills Visual Arts Trust {A Company Limited by Guarantee) TRUSTEES, REPORT INCLUDING THE STRATEGIC REPORT (Continuedj FOR THE YEAR ENDED 31 JWARCH 2024 STATEMENT OF TRUSTEES RESPONSIBILITIES The Trustees (who are also Directors of Ballic Flour Mills Visual Arts Trust for the purpose of company lawl are responsible for preparing the Trustees Report (including the Strategic Report) and the financial slalemenls in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company law requires the Trustees lo prepare the financial slalemenls for each financial year which give a true and fair view of the slate of affairs of the charitable company and the group and the incoming resources and application of resources, including the nel income or expenditLire. of the charity and the group for the year. In preparing these financial statemen15. the Trustees are required to.. select SLiilable accounting policies and then apply them consistently.. observe the methods and principles in Ilie Charities SORP 2015 (FRS 102)., make judgements and eslimales that are reasonable and prudent-, stete whether applicable UK Accounting Standards have been followed. subject lo any material departures disclosed aiid explained in the financial slalemenls". prepare the financial slalemenls on a going concern basis unless il is inappropriate to assume that the charitable company will continue in operation. The Trustees are responsible for keeping adequate accounting records which disclose with reasonable accura¢y at any lime the financial position of the charitable company and the group and to enable them lo ensure that the financial slalemenls comply with the Companies Act 2006. They are also responsible for safeguarding the asse15 of the charitable company and Ihe group and hence for taking reasonable steps for the prevention and detection of fraud or otlier irregularities. In so far as the Trustees are aware.. there is no relevant audil information af which the charity's aLidilors are unaware.. and the Trustees have taken all the steps that we ought lo have taken in order lo niake ourselves aware of any relevant audit information and lo establish that the auditor is aware of that information. Approved by the TrLislees on 23: 10: Z* . and signed on their behalf by: K Lang Chair and Trust 9£/,,/. 12 Baltic Flour Mills Visual Arts Trust IA Company Limited by Guarantee) INDEPENDENT AUDITORS, REPORT TO THE MEMBERS OF BALTIC FLOUR MILLS VISUAL ARTS TRUST FOR THE YEAR ENDED 31 MARCH 2024 Opinion We have alidiled Ilie financial statements of Baltic Flour Mills VisLial Arts Trust (the 'charilable company'l and its subsidiaries {Ihe 'group') for the year ended 31 Marcli 2024 which comprise the Consoli(iated Slalenienl of Financial Aclivilies, Consolidated Balance Sheel, Charitable Company Balance Sheet, the Consolidated Cash Flow Slalemenl and notes to the financial slatemenls, including a summary of significant accounting policies. The financial reporting framework Ilial has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Fiiiai?cial Report117g Slandaid applicable in Ilie UK ar7d Republic of Ireland (United Kingdom Generally Accepted Accounting Praclicel. In OLir opinion the financial statements.. give a true and fair view of the slate of Ilie groLlP'S aiid charitable company's affairs as al 31 March 2024, and of the group's incoming resources and application of resDurces. including ils income and expenditure, for the year then ended., have been properly prepared in accordance with United Kingdom GeneFally Accepted Accounling Practice., arjd have been prepared in accordance with the requirements of the Companies Act 2006. Basis for opinlon We conducted our audit in accordance with International Standards on ALidiling (UK} IISAS (UKI) and applicable law. Our responsibilities under those standards are furtlier described in the Auditor's responsibilities for the audit ol the financial statements section of our report. We are independent of the group and charitable company in accordance with the ethical requirements that are relevant lo our audit of the financial statements in the UK. including the FRC'S Etliical Standard, and we have fulfilled Ouf other ethical responsibilities in accordance with these requirements. INe 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 slalemenls, we have concluded that the Iruslees, use of the going concern basis of accounting in the preparation of the financial slalemenls is appropriate. Based on the work we have perfotmed, we have not identified any material uncertainties relating lo events or conditions that, individually or collectively, may cast Slgnificanl doubt on the charitable company's ability lo conlinLie as a going concern for a period of at least twelve months from when the financial statements are aiilhorised for issue. OLir responsibilities and the responsibilities of the Iruslees with respect lo going concern are described in the relevant sections Df this report. other information The IrLislees are responsible for the other information. Tlie other information comprises the information included in the Iruslees aniiLial report, otlier Ihaii the finaiicial slalemenls aiid our aLidilor'5 report Ihereon. Our opinion on the financial slalemen15 does not cover the other information and, except lo the exlenl otlierwise explicitly slated in Olir report, INe do not express any forni of assLirance conclusion Ihereon. 13 Baltic Flour Mills Visual Arts Trust IA Coimpany Limited by Guarantee) INDEPENDENT AUDITORS, REPORT TO THE MEMBERS OF BALTIC FLOUR MILLS VISUAL ARTS TRUST (Continiiedj FOR THE YEAR ENDED 31 MARCH 2024 In connection with our audit of the financial slalements, our responsibility is lo read the other information and. in doing so, consider whether the other information is materially inconsislenl with the fiiiancial slalemenls or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misslalemenls, we are required lo determine whether there is a material misslalement in the financial slalements or a malerial misslalemenl of the other information. If, based on the work we have performed. we conclude that there is a material misslalemenl of this other information, we are required to report that fact. We have nothing to report in this regard. Opinions on other matters prescribed by the Companies Act 2006 In our opinion. based on the work undertaken in the course of Ilie audit.. the information given in the trustees, report {incorporating the strategic reporl and the directors, report) for the financial year for wliicli the financial slalements are prepared is consistent with Ihe financial slalemenls., and the strategic report and the directors, report have been prepared in accordance with applicable legal requirements. Matters on which we are required to report by exception In the light of our knowledge and understanding of the group and parent charitable company and ils environmenl obtained in the course of the aLidil. we have not identified nialerial misslalemenls in the directors. report. We have nothing lo report in respect of the following matters in relation lo which the Companies Act 2006 requires us to report to YOLI if, in our opinion.. adequate accounting records have not been kept by the parent charitable company, or returns adequate for our aLidil have not been received from branches not visited by us". or the financial statements are not in agreement with the accounting records and returns-, or certain disclosures of directors, remuneration specified by law are not made.. or we have not received all the informalion and explanations we require for our audit. Responsibilities of trustees As explained more fully in the trustees, responsibilities statement set out on page 12, Ihe Iruslees (who are also the director5 of the charitable conipany for the purposes of company law) are responsible for Ilie preparation of the financial slalemenls and for being satisfied that they give a triie and fair view. and for such inleinal control as the trustees determine is necessary lo enable the preparation of financial statements that are free from malerial misstatement, whether due to fraud or error. In preparing the financial stalemenls, Ihe trustees are responsible for assessing the groiip's and parent charitable company s ability lo conlillue as a going concerii. disclosiiig. as applicable, Inallers relalecl lo going concern and using the going concerii basis of accounting unless the trustees either intend lo liquidate the charitable company oi lo cease operations, or have no realistic allernalive bLII lo do so. 14 Baltic Flour Mills Visual Arts Trust (A Company Liiniled by Guarantee) INDEPENDENT AUDITORS, REPORT TO THE MEMBERS OF BALTIC FLOUR MILLS VISUAL ARTS TRUST (Continiied) FOR THE YEAR ENDED 31 MARCH 2024 Auditor's responsibilities for the audit of the financial statements We have been appointed auditor under the companies Act 2006 and we report in accordance with this Act. Our objectives are lo obtain reasonable assurance 3boLII whellier the financial slalemenls as a whole are free from material misslalemenl, whellier dLie to fraud or error, and to ISSLie an auditor's report that includes our opinion. Reasonable assurance is a high level of a$5urance. bul is not a guarantee that an aLidil conducted in accordance with ISAS (UK) will always delecl a material misslalemenl when il exi51s. Misslatemenls can arise from fraud or error and are considered material if, individlially or in the aggregate. they could reasonsbly be expected lo influence the econofflic decisions of Iisers taken on the basis of these finaiicial statement5. Irregularities, including fraLid. are instances of non-compliance with laws and regulations. We design procedLires in line with our responsibilities, outlined above, to delecl material misslatemenls in respect of irregularities, including fraud. The exlenl lo which our procedures are capable of delecling irregLilarilies. including fraud, is detailed below. We obtained an understanding of the legal and regulatory framework applicable lo both the company itself and the indiislry in which il operates. We identified areas of laws and regulations that could reasonably be expected lo liave a material effect on the financial slalemenls from OLir sector experience and through discussion with the directors and other nianagenienl. The most significant were identified as the Charities Act 2011, Companies Act 2006. UK GAAP (FRS1021 and relevant tax legislation. We considered the extent of compliance with those laws and regulations as parl of our procedures on the related financial slalemenls. Our audit procedures included.. confimiing with Ihe Iruslees and managemeiil whether they have any knowledge or suspicion of fraud.. obtaining an understanding of the internal controls established lo miligale risks related lo fraud or non-compliance with laws and regiilalions.. assessing the risk of nia17agement override includin9 identifying and lesling a sample of journal entries., confirmation received from the banks lo verify tlie balance as on the last day of the accounting year., reviewing minutes of meetings of those charged with governance.. and Our audit did not identify any key aLidil matters relating lo the detection of irregularities including fraLid. However. despite the audit being planned and conducted in accordance with ISAS IUKI there remains an unavoidable risk that material misslalemenls in the financial statements may not be detected owing lo inherent limitations of the audit. and that by their very nature, any such instances of fraud or irregularily likely involve colllision, forgery, intentional misrepresenlalions, or the override of internal controls. A further description of oiir responsibilities for the audit of the financial statements is located on the Financial Reporting Couiicil's website al.. www.frc.org. uklaiidilorsrespoiisibililie5. This description forms parl of our auditor's report 15 Baltic Flour Mills Visual Arts Twst (A Cornpany Limited by Guarantee) INDEPENDENT AUDITORS, REPORT TO THE MEMBERS OF BALTIC FLOUR MILLS VISUAL ARTS TRUST (Continued) FOR THE YEAR ENDED 31 MARCH 2024 Use of our report This reporl is made solely to the charitable company's members, as a body. in accordance with Chapter 3 01 Parl 16 of the Compaiiies Acl 2006. Our audit work has been undertaken so that we Inighl stale lo the charitable coiiipany's niembers those mallers we are required lo slate lo them in an auditor's report and for no other purpose. To the fullest exlenl permilled by law. we do not accept or assume responsibility lo anyone other tlian the charitable company arid Ihe cliarilable company's meiiibers as a body. for our audit work, for Ihis report. or for the opinioiis we have formed. Craig Henderson (Senior Statutory Auditor) for and on behalf of CLA Evelyn Partners Limited Statutory Auditor 17 Queens Lane Newcastle upon Tyne NE1 1RN 16 Baltic Flour Mills Visual Arts Tmst (A Company Liiniled by Guarantee) CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (including consolidated income and expenditure accounti FOR THE YEAR ENDED 31 MARCH 2024 As restated Total 2023 Unrestricted Designated Restricted funds funds funds Total 2024 Notes Income from: Donations and legacies Charitable activities Other trading activities Inveslnienl income Other income 3,438.947 63,649 2.069,101 308,489 3,747,436 63,649 2,069,101 4,487,630 63,991 1,333,079 1,694 225,499 395,838 395.838 Total income 5,967,535 308,489 6,27G.024 6,111,893 Expend iture on., Costs of raising fLinds Charitable activities 1,371.856 4,208.640 1,371,856 523,149 4,780,289 751,415 4.709.379 48.500 Total expenditure 5.580,496 48,500 523,149 6,152,145 5,460.794 Net movement before transfers 387,039 (48.5001 1214,6601 123,879 651,099 Transfers between funds 25 317.719 { 328,5S81 10.849 Other comprehensive expenditure Actuarial loss on defiiied benefit pension schemes { 53,000 ) 153.OQO ) 152.000) Net movement in funds 651,758 1377,0681 1203,811 1 70,879 599,099 Reconciliation of funds Total funds brought forward 2.317,433 795,662 922,990 4,036,085 3.436,986 Total funds carried forward 2.969,191 418.594 719,179 4,106.964 4,036,085 All income and expeiidilure derive from conlinLiing aclivilies. The Slalemenl of Financial Activities includes all gains and losses recognised in the year. 17 Baltic Flour Mills Visual Arts Trust {A Company Limited by Guarantee) CONSOLIDATED BALANCE SHEET AS A T 31 MARCH 2024 As restated 2023 2024 Notes Fixed assets Tangible assets 16 1.620.611 1,304,212 1,620,611 1,304,212 Current assets Stock Debtors Cash al bank and in hand 18 19 107,718 751,385 2,477,681 102,033 914,944 2.916,350 3,336,784 3,933.327 Creditors: amounts falling due with in one year 20 1850,431 } (1,201,454 } Net current assets Pension scheme asseU(liabilityl 2,486,353 2,731.873 23 Net assets 4,106.964 4,036,085 Funds Unrestricted fLinds Designated fLinds Reslricled funds 2.969,191 418,594 719,179 2,317.433 795,662 922.990 25 4,106,964 4,036,085 The notes on pages 21 to 45 form part of these financial slatemenls. The financial slat ments were approved by the TrLlStees on ZS..¥.Q... è*. and signed on their behalf by.. KLa Chaijand Trustee Con7paiiy Niimbei-' 03589539 18 Baltic Flour Mi115 Visual Arts Tnjst {A Company Limited by Gu2ranleel CHARITABLE COMPANY BALANCE SHEET AS Af37 MARCH 2024 As restated 2023 2024 Notes Fixed assets Tangible assets Investmen15 16 17 1. 193,668 1,002,012 1,193,670 1,002.014 Current assets Debtors Cash al bank and in hand 19 1,638,907 1,306,568 1,035,206 2,582.452 2,945,475 3.617.658 Creditors: amounts falling d ue within one year 20 { 626.107) 11,043,148) Net current assets 2,319,368 2,574,510 Net assets 3,513,038 3,576,524 Funds Unreslricled funds Designated fuiids Restricted funds 2,375,265 418,594 719.179 1,857.872 795,662 922,990 25 3,513.038 3,576.524 The noles on pages 21 10 45 form parl of these financial slalemenls. The financial slalemenls were approved by the TrLlStees on LS: 10: Lt. and signed on their behalf by: K Lang Chair and Trustee Conipai?y Niiinljei" 03589539 19 Baltic Flour Mills Visual Arts Trust (A Company Limited by Guarantee) CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2024 2024 2023 Note Net cash provided by operating activities 29 24,910 631.979 Cash flows from investing activities Investment incoine Purchase of tangible assets Sale of tangible fixed assets 1,694 (341,6451 6,667 { 463.5791 Net cash flow from investing activities 1463,5791 (333,2841 Net {decrease}lincrease in cash and cash equlvalents 1438.669) 298.695 Cash and cash equivalents al the beginning of the year 2,916,350 2.617.655 Cash and cash equivalents at the end of the year 2,477,681 2.916,350 Cash and cash equivalonts consist of: Cash at bank and in hand 2,477,681 2,916,350 20 Baltic Flour Mills Visual Arts Trust (A Conipany Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Accounting policies 1.1 Basis of preparation of fiiiancial statements The financial statements liave been prepared in accordance INilh Accounting and Reportiiig by Charities.. Slalemenl of Recoinmended Practice applicable lo charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 ISSLied in October 2019, the Financial Reporting Standard applicable in the United Kingdoni and Republic of Ireland (FRS 102), the Charities Act 2011, the Companies Act 2006 and UK Generally Accepted Practice. Baltic Flour Mills Visual Arts Trust mee15 the definition of a public benefit enlily under FRS 102. The financial statements are prepared under the historical cost conveiilion or transaction valLie unless othenwise slated in the relevant accolinting policy nalelsl. The financial statements are prepared in Sterling which is the functional currency of the charity and roiinded lo the nearest £. Tlie significant accounting policies applied in the preparation of these financial statements are sel out below. These policies have beon consislenlly applied lo all years presented unless olliepNise slated. 1.2 Basis of consolidation The financial slalements consolidate the resiills of Baltic Flour Mills Visual Arts Trust and it5 wholly owned su bsidiaries Baltic Contemporary Visual Arts Trading Limited on a line-by-line basis. A separate Statement of Financial Activities and Income and Expenditure Account for the charity has not been presented because Baltic Floiir Mills Visual Arts Trust has taken advantage of the exemption afforded by section 408 of the Companies Act 2006. 1.3 Going concern The financial slalemenls liave been prepared on a going concern basis. The Trustees have reviewed and considered relevant infornialion. inclLiding operating performance of the group. the annual blidgel, rolling fiiiancial forecasts and fuliire cash flows in making their a5sessmenl. 21 Baltic Flour Mills Visual Arts Trust (A Company Limited by Giiaranteel NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 MARCH 2024 1.4 Funds Unreslricled funds are available for use at the discretion of the Trustees in fllrtherance of the geneial objectives of Baltic Flour Mills Visual Arts Trust and which liave nol been designated for other purposes. Designaled funds comprise unrestricted funds that have been sel aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes lo the financial slalemenls. Reslficled funds are fLJnds which are to be used in accordance wilh specific reslriclions imposed by donors which have been raised by Baltic Flour Mills Visual Art5 Trust lor particular purposes. The cost of raising and administering SLich funds are charged against the specific fund. The aim and use of each restricted fund is sel out in the notes lo the financial slalements. 1.5 Incorne All incoming resources are included in the Slatemenl of Financial Activities when Ihe Group has enlillemenl lo the funds. any performance condilions have been mel, the amount can be measured reliably and il is probable that the income will be received. Donations from individuals and charitable Trusts are recognised ivhen notification of payment is received, unless there are specific conditions attached. No amoLint is included within the financial statements for volunteer lime in line with the SORP {FRS 102). Further detail is given in the Trustees Report. Investment income is earned through holding assets for investment purposes such as cash held on deposit aiid properly. 11 inclLides interest and rent. Interest income is recognised when receivable and rental income is recogiiised as TAP'S right lo receive payment is established. 1.6 Expenditure and irrecoverable VAT All expenditure is accounted for on an accruals basis and is recognised wheie there is a legal or constructive obligation to make payments lo third parties, Il is probable that the selllemenl will be required and the amolinl of Ilie obligation can be measured reliably. It is calegorised under the following headings.. Costs of raising funds includes all costs incurred in the rlinning of the trading &ibsidiary'. and Expenditure on charitable activities includes all direct and support costs incurred in the management of the charily. Irrecoverable VAT is chaiged as a cost again51 the expenditure when incurred. 1.7 Support cost allocation Support costs are those Ihal 8ssisI the iiinrk of the ch8riliJ bLII do not directly represent charitable activities and iiicliide office costs, governance costs and administr3live paiiroll costs. They are inciirred directly in support of expenditure on 11)e objects of the charity. 22 Baltic Flour Mills Visual Arts Trust (A Company Liiniled by GLiaranlee) NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 MARCH 2024 1,8 Tangible fixed assets Tangible fixed assets are stated al cost (or deemed costl or valLialion less accumulated depreciation and accumulated impairment losses. Cost includes costs directly allnbulable to niaking the asset capable of operating as inler7ded. Fixtures, fillings and equipnienl over 5 to 10 years slraighl line Individual fixed assets Costing £5,000 or more are inilially recorded al cosl. 1.9 Investments Investments in subsidiary undertakings are held al cost less impairment. 1.10 Stock Stock is valued al the lower of cost and net realisable value. 1.11 Debtors Trade and other debtors are recagnised at the selllemenl amount due aller any Irsde discount offered. Prepayments ar& valued al the amount prepaid nel of any trade discoiints due. 1.12 Cash at bank and in hand Cash al baiik and cash in hand includes cash and short lem highly liqU￿d investments with a short maturity of three months or less froni the dale of acquisition or opening of the deposit or similar account. 1.13 Creditors and provisions Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds lo a third party and the amoiinl dlie lo sellle the obligation can be measured or eslimaled reliably. Credilois and provisions are recognised al their settlement after allowing for any trade discounts due. 1.14 Defined benefit pension plan The company recognised a defined iiel benefit pension asset or liability in the slalemenl ol financial position as the nel lolal of the present value of ils obligations and the fair value of plan assets out of which the obligations are lo be sellled. Changes in the nel defined benefit asset or liability arising from employee service are recogni5ed In income or expenditure as current service cost where il relates lo services in tlie current period and as a past seDJice cost where il relates lo services in prior periods. Costs relating lo plan inlrodLiclions. benefit changes, curlailmenls and selllemenls are recognised in incon)e or expenditure in the period in which they OCCLIr, 23 Baltic Floiir Mills Visual Arts Trust (A Company Limited by Gliaranleel NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 MARCH 2024 1.15 Pensions Contributions lo defined contribution plans are recognised as an expense in the period in which the related service is provided. 1.16 Financial instruments Baltic Flour Mills Visual Arts Trust only has financial a55ets and financial liabililies of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised al transaction valLie and subsequently measured al their selllement value with the exception of bank loans which are subsequently measured at amorlised cost using the effective interest Irethod. 1.17 Judgements and key sources of ostimation uncertainty In the application ol the charitable coinpany's accounting policies. the Tflislees are reqiiired lo make judgements, eslimales and assumptions about the carrying aii)OLinl ol assets and liabilities Ihal are not readily apparent from other sources. The estimates and associated as5UrnPtions are based on historical experience and other factors that are considered lo be relevant. Actual results may differ from these eslimales. The eslimales and underlying assLimptions are reviewed on an ongoing basis. Revisions to accounting eslimales are recognised in the period in which the estimate is revised where tl)e revision aftecls only that period, or in the period of the revision and future periods where the revision affects both current and future periods. There are considered to be no significant judgements. Legal status Baltic Flour Mills Visual Arts Trust is a company liniiled by guarantee, registered in England and Wales, (number 035895391 and not having a share capital. In Ihe event of the company being wound lip, the liability in respect of the guarantee is limited to £1 per member of the cliarily. 24 Baltic Flour Mills Visual Arts Trust IA Company Limiled by Guaraiileel NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 MARCH 2024 Statement of financial activities from the prior year as restated Unrestricted Designated Restricted funds funds funds Total 2023 Total 2022 Note5 Income from: Donations and legacies Charitable activities Other trading activities Investment income Other income 3,377,336 63,991 1,333,079 1,694 225,499 734.015 376,279 4,487.630 63.649 1,333,079 1,694 225,499 3,551,485 175,783 917,150 3.423 126.609 Total income 5,001,599 734.015 376,279 6,111,893 4,774,450 Expenditure on: Costs of raising funds Charitable activities 751,415 4,381,977 751,415 225,380 4.709.379 641,813 4,088,653 102,022 Total expendlture 5,133,392 102,022 225,380 5.460,794 5.460,794 Net movement before transfers { 131,793 } 631,993 150,899 651,099 43,984 Transfers between fiinds 22 384,051 (432.9701 48.919 other comprehensive incomellexpenditurel Actuarial Ilossllgains on defined benefit pension schemes { 52.0001 152,000 ) 349,000 Net movement in funds 252.258 147,023 199.818 599,099 392,984 Reconciliation of f unds Total flinds brought fonNard 2,065,175 648,639 723.172 3,436.986 3,044,002 Total funds carried forward 2,317.433 795,662 922,990 4,036,085 3,436,986 25 Baltic Flour Mills Visual Arts Trust IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 MARCH 2024 Income from donations As restated 2023 2024 Donations Grants 74.557 3,672.879 182.604 4,305.026 3,747,436 4.487.630 Charitab le activity income 2024 2023 Charitable activity income 63,649 63.991 63,649 63,991 Income f rom other trading activities 2024 2023 Sales of goods and seNices Sponsorsliip income Other income 1,887,924 166,083 15.094 1,088,300 160,165 84,614 2,069.101 1,333.079 Investment income 2024 2023 Interest on bank deposits 1.694 1,694 Other income 2024 2023 MGETR tax relief 395,838 225,499 395,838 225,499 26 Baltic Flour Mills Visual Arts Trust IA Company Liniiled by Guarantee) NOTES TO THE FINANCIAL STATEMENTS (Continuedj FOR THE YEAR ENDED 31 MARCH 2024 Analysis of expenditure on charitable activitios Activities undertaken directly Support osts Total 2024 Total 2023 Arts Programme Learning Programme Governance 1,044,530 820.702 1,618,179 1,271,427 25,451 2,662,709 2,092,129 25,451 2,701,360 1,984.405 23,614 1,865,232 2,915.057 4,780.289 4,709.379 10. Support costs Governance costs Arts Programme Learning Programme Total 2024 IT costs Staff costs Premises costs Depreciation Other SLipport costs Governance 48,409 494,570 811.121 82,441 181.639 38.035 388,590 637,309 64,775 142,717 86.444 883.160 1,448.430 147,216 324,356 25,451 25,451 25.451 1,618.180 1,271,426 2,915,057 11. Governance costs 2024 2023 Audit fees Other costs 17,500 7.951 15,125 8,489 25,451 23,614 27 Baltic Flour Mills Visual Arts Twst IA Company Limited by Guaraiilee) NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 MARCH 2024 12. Net incomo for the year Nel income is slated after charging., 2024 2023 Depreciation Operating lease costs Audit fees 147,180 5.370 17,500 92,425 5,370 15.125 13. Auditors remuneration The auditors remuneration amounts lo an audit lee 01 £17,500 {2023 - £15,125) and non-audit fees of £76.450 (2023 £14,922). 14. Financial performance of the charitable company The Consolidated Slalemenl of Financial Activities includes Ihe results of the wholly owned subsidiaries. The summary financial performance of the charily alone is.. 2024 2023 Incoine Expendillire Other coniprehensive incomellexpendilurel 4,722,017 5,118,945 14,732,503 1 { 4,709,379) 153,000 } 152,0001 Net {deficit) I su rplus 163.486 } 357,566 28 Baltic Flour Mills Visual Arts Trust IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 MARCH 2024 15. Analysis of staff costs, Trustee remuneration and expenses. and the cost of key management personnel The lolal staff costs and employees benefits were as follows-. 2024 2022 Wages and salaries Social security costs Other pension costs 2.072,348 188.469 108,014 1,859,681 165,244 106.595 2,368.831 2,131,520 The average nLimber of eniployees during tlie year was as follows.. 2024 2023 Adniinislralive staff 78 78 78 78 The number of employees who received lolal employee benefits (excluding employer pension costs) of more than £60.000 is as follows. Number 2024 Number 2023 In the band £60,001 £70,000 In the band £70,001 - £80,000 In the band P80.001- £90,000 In the band £90,001- £100,000 In Ilie band £100.001 £110,000 29 Baltlc Flour Mills Visual Arts Trust IA Compaiiy Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR fHE YEAR ENDED 31 MARCH 2024 15. Analysis of staff costs, Trustee remuneration and expenses, and the cost of key management personnel expenses (continued) The Trustees were not paid or received any other benefits from employment in the year (2023 - £nill. No Tfustee received payment for professional or other services supplied lo the charity (2023- £nill. The key tnanagemenl personfiel of the charity are identified in the Reference and Adminislialive details section of the Trustees Report. The total employee benefits of the key manageinenl personnel of the charity were £224,223 {2023 - £234.2771. 16. Tangible fixed assets Consolidated Fixtures, fitting5 and equipment Total Cost Al l April 2023 Additions Disposals 1.750,209 463.579 (3,840) 1,750,209 463,579 13,840) At 31 March 2024 2,209,948 2,209,948 Depreciation Al 1 April 2023 Cliarge for the year Eliniinalion on disposal 445,997 147,180 (3,8401 445,997 147,180 13,840 1 Al 31 March 2024 589,337 589,337 Net book value Al 31 March 2024 1.620,611 1,620,611 At 31 March 2023 1,3Q4,212 1,304,212 30 Baltic Flour Mills Visual Arts Trust IA Cotnpany Liniiled by GLiaranlee} NOTES TO THE FINANCIAL STATEMENTS (Continijed) FOR THE YEAR ENDED 31 MARCH 2024 16. Tangible fixed assets (contlnued) Charitable company Fixtu res, fittings and equipment Total Cost Al 1 April 2023 Additions 1,340.323 296,321 1,340,323 295.321 Al 31 March 2024 1,636,644 1,636,644 Depreciation Al 1 April 2023 Charge for the year 338,311 104,665 338,311 104,665 Al 31 March 2024 442,976 442,976 Net book value At 31 March 2024 1.193,668 1,193,668 Al 31 March 2023 1,002,012 1,002,012 31 Baltic Flour Mills Visual Arts Trust (A Company Liiniled by Guarantee) NOTES TO THE FINANCIAL STATEMENTS (Contlniied) FOR THE YEAR ENDED 31 MARCH 2024 17. Investments Consolidated 2023 Charltable Company 2024 2023 2024 Shares in subsidiary undertakings Shares in Subsidiary Undertakings {Charitable Company) 2024 2023 Cost and Net Book Value Al 1 April 2023 Al 31 March 2024 32 Baltic Flour Mills Visual Arts Trust (A Conipany Limited by Guaraiilee) NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR fHE YEAR ENDED 31 MARCH 2024 17. Investments (Continued) Percentage Shareholding Company Baltic Coiilemporary Visual Afls Trading Limited Country Description England and Wales 100% Ordinary The provision of catering. retail, business sponsorship and roorn hire services. The results and sunimary of assets and liabilities of the company are as follows". 2024 2023 Turnover Cost of sales Adniinislralive expenses 2,082,536 11,019.186 1 1428,985 1 1,248,465 1433,730 ) 1349,1571 Profil for the year 634,365 465,578 Distribution lo Trust 500,000 224,045 2024 2023 Total assets Total liabilities 1,732,968 { 1,139,040) 885,841 { 426,278 ) Shareholders. fLinds 593,928 459,563 18. Stock Group 2024 Charitable Company 2024 2023 2023 Finished goods 107,718 102,033 107.718 102,033 33 Baltic Flour Mills Visual Arts Trust IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 MARCH 2024 19. Debtors Group 2024 Charitable Company 2024 2023 2023 Trade debtors Prepayments and accrued income Recoverable VAT AmoLinls due froni groLlP undertakings 56.731 635,513 59,141 71,176 795,774 47,944 39,869 625,181 59,141 914,716 34.960 684,280 47,994 267,972 751,385 914,894 1,638,907 1,035,206 20. Creditors: amounts falling due within one year Group Charitable Company 2024 2023 2024 2023 Trade creditors Social Security and taxes Accruals and deferred income Other creditors 549.884 38,956 245,490 16,101 514.324 52.502 525.068 109.560 446,431 475,968 163.575 16,101 637,685 1.431 850,431 1,201,454 626,107 1,155,765 21. Deferred income Deferred income comprises fee income relating lo future periods.. Balance at 1 April 2023 Aniounls released lo income earned from charitable aclivilies AThounls deferred in the year 212,397 1212,3911 109,349 Balance al 31 March 2024 109,349 22. Operating leases The future minimum lease payments Liiider non-cancellablè operating leases are as follobvs., 2024 2023 Not later than one year Later than one and not later thali five years 7,898 14 610 796 350 22.508 1,146 34 Baltic Flour Mills Visual Arts Trust IA Company Limited by Guar3nlee) NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 MARCH 2024 23. Pension and other schemes Defined contribution pension scheme The group operates a defined contribution pension scheme. The pension cost charge for the year represents conlribulions payable by Ihe group for the scheme and ainounled lo £108,01412023 - £106,595) Contributions tolalling £17,468 (2023 £14,016) were payable lo the scheme at the end of the year and are included iii creditors. Defined benefit pension schemes Tyne & Wear Pension Fund The Tyne & Wear Pension Fund is a funded defined benefit scheme. with the assets held iii separate Trustee- ad￿1￿ls1ered fLinds. The charity is an approved employer of the Tyne & Wear Pension fund. The lolal contributions made for the year ended 31 March 2024 was £14,000 12023 £24.000} of which employers contributions tolalled £12,000 {2023 - £22,000) and employees, contributions lolalled £2.00012023 £2.0001 Reconciliation of scheme assets and liabilities to assets and liabilities recognised The amounts recognised in the statement of financial position are as follows.. 2024 2023 Fair value of scheme assets Present value of defined benefit obligation 2,625.000 2,499,000 11.457,000 1 11,482,000) 1.168.000 1,017.000 (1,168,000) { 1,017,000 } Pension asset value not recognised las per FRS 102 para 28.22) Defined benefit pension scheme surplus In the year ended 31 March 2024 the actuarial valLiation for FRS102 showed a surplus over liabilities al that dale of £1,168,000. In accordance with FRS 102 paragraph 28 22, a pension scheme asset is recognised only to the extent that is able lo recoiier the surplus either through reduced conlrib(Jlions in the fLilure oi through refunds from the plan. This condilioii was not mel al the balance sheet dale and therefore the surplus was not recognised. 35 Baltic Flour Mills Visual Arts Trust IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS (Continuedj FOR THE YEAR ENDED 31 MARCH 2024 Def ined benefit obligation Changes in the defined benefit obligation are as follows: 2024 Present valLie al slarl of year CLirrenl setvice cost Interest cost AclLiarial gains and losses Benefits paid Contributions by scheme participanls 1,482,000 7,000 67,000 {68,000 } 133.000) 2,000 Present value al end of year 1,457,000 Fair value of scheme assets Change5 in the fair value of scheme assets are as follows.. 2024 Fair value at start of year Interest income Remeasuremenl on assets Employer contfibulions Benefits paid 2,499,000 115,000 30,000 14,000 (33.000) Presenl value al end of year 2,625,000 Analysis of assets The major categories of scheme assets are as follows.. 2024 2023 Equities Property Government bonds Corporate bonds tvlulti-assel Credit Cash Other 1,328,000 273,000 34.000 512.000 121,000 18,000 339,000 1,281.000 262.000 32,000 487.000 112,000 45.000 280,000 2,625.000 2 499,000 Return on scheme assets 2024 2023 41,000 43,000 36 Baltic Flour Mills Visual Arts Trust (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 MARCH 2024 Principal actuarial assumptions The principal aclLiarial asSLimplions al the slalement of financial position dale are as follow5-. 2024 2023 Discount rale CPI inflation Pension increases Pension accounts revaluation rale Salary increases 4.80 2.60 2.60 2.60 4.10 4.60 2.60 2.60 2.60 4.10 Post retirement mortality assumptions 2024 Years 21.00 24_20 22.30 25.60 2023 Years 22.00 25.00 23.00 26.00 Current UK pensioners al retirement age niale Curreiil UK pensioners al retirement age female Future UK pensioners al relirenienl age - male Future UK pensioners at retirement age- female These are assumptions used Plirely for the calculations of the pension delicil and do not reflect the actuality of historical pay rises. Conlriblilions lo Ilie scheme are charges to the profil and loss accounl so as lo spread Ihe cost of the pensioii over employees, working lives willi the company. A qiialified actuary, on the basis of triennial valualions, using the projected unil Irelhod, determines the conlribulions. 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 bLII with insufficient assets lo cover their pension obligations so that the difference may fall on the rerllaining 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 evenllially gel inheiited by the remaining employers. 37 Baltic Flour Mills Visual Arts Trust IA Company Liniiled by Guarantee) NOTES TO THE FINANCIAL STATEMENTS (Continuedj FOR THE YEAR ENDED 31 MARCH 2024 24. Prior period adjustment A prior period adjustment has been made in respect of the recognition of grant income in line with the requirements of the SORP. Change to the balance sheet As previously reported Adjustment As restated 2023 Current liabilities Deferred income 323.583 1111,1861 212,397 Funds Reslricled funds 811,804 111,186 922,990 811,804 111,186 922.990 38 Baltic Flour Mills Visual Arts Trust IA Company Limited by Guarai)lee} NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 MARCH 2024 25. Fund reconciliation Year e17cled 31 March 2024 Balance at 1 April 2023 Balance at 31 March 2024 Transfers Gainsl (losses) Income Expenditure Unrestricted funds General fund 2,317,433 5,996,064 { 5,609.025 1 317.719 153,0001 2,969,191 Designated funds Capital replacenienl & renewal Novaled funds- income Generation 173,256 148.500 } 1124,756 ) 622.406 (203,812 ) 418,594 Total restricted fLinds 3.113,095 5,996,064 { 5.657,525 1 (10,8491 153,000 1 3,387,785 Restricted funds ACE Capital Expenditure The Virgin Money Foiinclalion Big Lollery Fund #iwill fund B.Local Birlley Neighbourly Project.. Anonymous Trust 20 Babies Inspired by Icp IWM Commission Bloomberg National Lollery Fund National Art Collection CVAN CVAN Capital repair reserves account 16.129 15.048 7.267 { 6,431 ) 836 650 650 20 8,751 7,955 16,584 ) 1,371 147 6,167 147 25,020 46,203 25,000 82,470 45,000 23,755 (18,853 } 1208,119 ) (137.370) 135,461 > (286 ) 1100,193) 92,240 111,186 69,676 1.184 47.009 44,714 11,4381 75,000 702,618 37,068 (135,011 ) 604,615 Total reslricled fLinds 922,990 308,489 1523.149) 10,849 719,179 Total funds 4.036.085 6,304,553 { 6.180.674 } { 53.000 1 4,106,964 39 Baltic Flour Mills Visual Arts Trust (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 MARCH 2024 25. Fund reconciliation (Continued) Yeai- ended 31 Maich 2023 as restated Balance at 1 April 2022 Balance at 31 March 2023 Transfers Gainsl Ilossesl Income Expenditure Unrestricted funds General fund 2,065,175 5,001,599 15,133,392 ) 384,051 2,317.433 Designated funds Capital replacement & reiiewal Novaled fLinds - income Generation Tyne & Wear Pension fund 596,639 { 81.738 ) (341,6451 173,256 734.015 (20.284 ) 191,3251 622.406 52,000 152,0001 Total reslricled funds 2,713,814 5,135,614 15,235,414 ) 148.919 } (52.0001 3,113.095 Restricted funds ACE Capital Expenditure Capital Repair ReseNes Account The Virgin Money Foundation Big Lollery #iwill fund B.Local Birlley Neighbourly Project.. Anonymous Trust Langiiage Café 20 Babie5 Inspired by Icp IWM Commission Bloomberg CVAN 20.534 (4,405 ) 16,129 702,618 702.618 30,905 5,964 130.905 } (5,314 ) 650 20 12,343 2,673 9,376 4,040 46,870 99.057 125.000 40.051 (12,343 ) 20 1.428 { 9,376 ) (3,893 1 { 46,870) 16,817 ) (13,814 ) 187.542 ) 147 92,240 111.186 47,491 Total reslricled funds 723.172 376.279 1225,380) 48,919 922,990 Total fiinds 3,436,986 6,111,893 15,460,794 ) { 52.000 ) 4,03S.085 The transfer from reslricled ILinds relates lo capilal assets purchased. The restriction lifts when the PLirchases are made. 40 Baltic Flour Mills Visual Arts Trust IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 IVIARCH 2024 25. Fund reconciliation (Continued) Capital replacement and renewal For the purpose of maintaining the fabric of the BALTIC bLiilding. Capital expenditure This fund represents the element if funding received from Ilie Arts Council Ilial is reslricled for the capital expenditure. The Virgiii Money Foundation #iwill Take Action Fund Is a joiiil investment from the Big Lollery Fiind and the Virgiii Money Foundation. The #iwill Take Action Fund siipporled a 3-year programme al Baltic called Crealiiig Cliaiige. Creating Change ran from 2017-2020 and aimed lo embed social action in three Gateshead secondary schoo15,' Cardinal Hume, Heworlh Graiige and Grace College (Formerly Joseph Swan). The grant was predominanlly used lo pay for a freelance producer lo co-ordinate the project, the delivery of arti51 workshops, materials, trips, events and public art conimissions B Local Birtley relates to the funding received for the Art Lab programme which launched in May 2019 which is an ongoing holiday progranime offering artist led aclivilies, trips and lunches for families. The offer is developed with and for families living in Birtley and pailicularly families who usually access free school meals during term lime. Following the success of Art Lab august 2020 look a blended approach lo offer activities and meals for three weeks of the school summer holiclays. This approach was developed after listening to local families, our partners al the Birtley Hiib Resource Cenlre, and other service providers and finding there was an appelile for in person aclivilies, Birlley families were offered COVID-19 safe artist led ivorkshops in person, take away activities and lunches as well as delivered crealivily packs for those unable to attend In person. Neighbourly Project: AnonymoLlS rust siipporls the commlinal faith, langiiage and vocational lives of newly arrived commiinilies across the borough. It engages refugees and people seeking asylum, taking steps lo understand people's, address Ilieir concerns and support their ideas through a series of onsite and offsite programmes, collaborations and events. Programming includes hosting an annual open Iftar. ESOL al BALTIC. digital conservation sessions, a monthly langLiage café. international Arl CILibs in two local schools and skills matched vollinleer and einploymenl opportLinilies. Tl)e striiclure. aims and values of Neighbourly have been developed lo explore the ways in which BALTIC can create long lemi and Slislainable relationships with refugee and asyluni-seeking communities, ensuring they have equitable access lo BALTIC'S resources. A gLiiding question for NeighboLirly is how can BALTIC be a 'good neighbour, and liow can we best support people lo feel happy, sellled and al home in the North East? Partners inclLide Gateshead CoLincil Reselllemenl Team, Best of Bensham, WERS, JET , Ilie Angelou Cenlre. Conifrey Project and Ramadan Tent Project Language Café relates lo funding received for the LangLiage Calé i'ihich al BATLIC happens the first SalLirday of each month in BAL TIC Front Rooni. Tliis is a free, fLJn, friendly and informal opportunity lo Ineel new people and practice English speaking aTrd listening. Elrop-an from 2".20pm Linlil 5pm. Frea lea and coffee, sofi drinks and siiack5 will be providecl. Sessions are family friendly and include artisl-led creative sessions lor adults and children lo keep us bLlSy while vie chal. We we'll also have special gue51s to tneel and clial willi lo cover topic like community resources that might be useful, ski115, OPPOrtLinilies and employability. We welcome and encourage participation from people with refiigee and asylum seeking backgrouiids a5 bvell as confident and native English Speakers. 41 Baltic Flour Mills Visual Arts Trust IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS (Contlnued) FOR THE YEAR ENDED 31 IWARCH 2024 20 Babies relales lo fLinding received for the '20 Babies, project. As a response lo lockdown experiences triggered by the COVID_19 pandemic, the .20 babies, project was fomied. 20 babies has been designed and facililaled by BALTIC cenlre foi contemporary Art aiid funded by Mayborn Groiip with research ur)dertaken by Newcastle University. Slarliiig in Sepleniber 2021. the project worked willTr 20 families from Newcastle and Gateshead who had a baby during the first Covid-19 lockdown in 2020 {Mar¢h-JLily 20201. He families allended weekly creative worksliops that gave the caregivers a chance to explore their experience of the pandemic. Inspired by Relates lo fundiiig received for the Inspired project. The Inspired by projecl is led by BALTIC and a Freelance Arlist. We applied lo work willi Hawtliorn Primary on a project that would develop staff CPD in sculpture and inspire the pupils lo gel involved willi creating a permanent sculplLire in thei r grounds. The Artist has led 5 sessions willi the school's art lambassadors.. a mixed group ol pupils from Reception lo Year 6. In these sessions, they explored different types of sculpture. developed their vocabulary around il and lesled some different ways of niaking. The AA'S designed two ideas for final piece and the school voted on what Ihey would like lo see in place. The final piece will see the entrance lo the school come lo life with an inslallalion of rainbows, bullerflies and mirrored stars suspended from Ilie trees and stretching across lo the school building as a way of welcoming visitors lo school and sharing the school core values. The piece will be installed in August for a reliirn lo sclioDI unveiling in early September. On the 15 July the Freelance Art151sls) will lead a vjhole school sculpliire day for Plipils and their parents, which will see them creating elements of the final inslallalion and experience rnaking sculpiiires togellier. CAVN relates lo fLinding received from the Arts Council England and the Art Fund. for a national art programme tilled Fair and EqLiilable, led by CVAN Conleniporary visual Arts Nehvork, lo bring colleagues together across the country lo develop a dynamic nelwork and invesl in organisalional developinenl. CVAN is part of Baltic aiid is national nelwork for contemporary art that supports and ailvocates for the saclor. Capital Repair Reserves Account relates to fLinding agreed from Gateshead Council in respect of capital expenditure. These monies are represented by monies which are inclLided in the charity's bank balance aiid showii on the balance sheet but are lield by Gateshead Council on behalf of the chanty. Novated Funds- Income generation The Inolivated funds were transferred from Gateshead Council are the remaining sum of the original Arts Council of England funding awarded lo BALTIC which was agreed lo be an endowment held in Gateshead Council's accounts. These funds were novaled from Gateshead CoLincil lo BALTIC lo support an agreement income generation plan to SLlPPOrt the recovery and fulLire resilience of BALTIC in the PDSt COVID-19 recovery. Agreed investments incllide feasibilily studies, new area5 01 trading and capital investment in spaces, which are inconie generating (for hospilalilyl or cost savings. This is an ongoing progranirne of inveslmenls vihich will be made between 2022 and 2025. Bloomberg BalliG successfully received funds of £150,000 froim Bloomberg Philanlliropies - as Bloomberg Tech Fellow for the next year to 18 months. The project commencing January 2023 inclLides a newly developed single sign-on for iNw.ballic.al, development of CRM Isalesforcel sysleill ancl Iisage across the organisalion. a re- development of the iiiline archive Ballic+ ancl establishing a nebv naliirelv.iellbeing 115er generate platform sile lo encourage crealivily enlilled Nature & NLlrture. The strategic objecliiies of this siiile of projects include 42 Baltic Flour Mills Visual Arts Trust IA Conipany Limited by GLiaranleel NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 MARCH 2024 assisting in the suslainabilily of the organisation by increasing self-generaled income and becoming more efficient, lo inc=vesl in infraslrucliire and training lo oplimize insights, and lo extend reach and relevance lo regional, national and international audiences through building comniunilies of knowledge and engagement. It is anlicipaled the projects come to conclusion and fruition by NovemberlDecember 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 niillion commissioning programme has been made possible thanks lo the SLiccess of Peter Jackson's critically acclaimed film Tliey Shall Not Grow Old, co-commissioned by IWM and 14-18 NOW Icp The R&D project tilled Cosmovisions on Land and Entangled Futures proposed to create space and lime lo build collaboration and in-deplli co-crealion of ideas relating lo the interdependence and de-hierarchisalioii between human and naliire. 11 offered a platform lo connect local, territorial and social struggles with pressing global concei'ns lo imagine other possible realities that respond lo more sustainable futures. The project included an artist residency al La Escocesa, Barcelona", a research grant.. *Mo artis15' commissions," a two-day event in Pivo and Sao Paulo., and four Research Labs lo be developecJ by the partner organisalions. Cosmovisions on Land and Enlan9led Futures was a partnership belween Baltic Centre for Conleniporary Arl {UK}, Capc Bordeaux (FR}, La Escocesa ES). Mas Arte Mas Accion (COL} and Pivo (BR). It was funded by British Coiincils International Collaboration Grants, Wl)ich are designed lo support UK and overseas organisalior7s lo collaborate on international projects. 43 Baltic Flour Mills Visual Arts Trust (A Coinpany Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 MARCH 2024 26. Analysis of net assets between funds Year ended 31 Marclp 2024 Unrestricted Funds Designated Funds Restricted Funds Total 2024 Tangible assets Nel curfenl asselsl(liabililiesl 1,620,611 1,348,580 1.620.611 2,486,353 418,594 719,179 Total nel assets 2,969,191 418.594 719,179 4,106,964 Year ended 31 Marcli 2023 Unrestricted Funds Designated Funds Restricted Funds Total 2023 Tangible assets Net curienl asselsl{liabililiesl 1,304,212 1,013,221 1,304.212 2,731,873 795,662 922.990 Total nel assets 2.317,433 795.662 922.990 4,036,085 27. Related Party Transactions Group.. During the year the group made the following related party Iransaclions.. Baltic Contemporary Visual Arts Trading Limited Dliring the year, the charity made sales relating lo nianagenieiil fees ol E28,529 12023 £31.4721 and received a gift aid distribution of £481,83812023 - £224.0451. Al Ilie balance sheet dale the aniounl due from Baltic Contemporary VIsLSal Arts Trading Limited was £914. 116 (2023 - £267.9721. Baltic Flour Mills Visual Arts TNst IA Company Limited by Gliaranleel NOTES TO THE FINANCIAL STATEMENTS (Contlnued) FOR THE YEAR ENDED 31 MARCH 2024 24. Capital Commitments The lolal amount contracted for bul not provided in the financial slalements was £x (2023 £306,996). 25. Reconciliation of net income to net cash flow from operating activities 2024 2023 Nel siirpliisl{deficill for the year Interest and received from ￿nVes1n1enls Loss on disposal of tangible fixed assets Depreciation on tangible assets {Increase)Idecrease in debtors Increaselldecreasel in creditors Decreaselllncrease) in stock Increase in retirement benefit obligation nel of actuarial changes 70,879 599,099 11,694 1 3.166 92,425 1432,036) 316,107 2,912 52.QOO 147.180 163,559 1351,023 ) { 5,685) Nel cash flow from operating activities 24,910 631,979 45