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2021-03-31-accounts

Tate Foundation

Trustees’ report and financial statements

Year ended 31 March 2021

Company registration number 04009652 Charity registration number 1085314

Tate Foundation Trustees’ report and financial statements Year ended 31 March 2021

Contents

ontents
Trustees’ report (including strategic report) 2-8
Statement of Trustees’ responsibilities 9
Report of the independent auditors to the members of Tate Foundation 10-12
Statement of financial activities 13
Balance sheet 14
Cashflow statement 15
Notes 16-24

1

Trustees’ report (including strategic report)

Reference and administrative details

Tate Foundation was incorporated as a company limited by guarantee on 2 June 2000 and is registered as a charity.

Registered address Tate Foundation Tate Millbank London SW1P 4RG Company registration number 04009652 Charity registration number 1085314 Bankers Coutts & Co St Martins Office 440 Strand London WC2R 0QR Solicitors Withers LLP 20 Old Bailey London EC4M 7AN Auditors Moore Kingston Smith LLP Devonshire House 60 Goswell Road London EC1M 7AD

Trustees

The membership of the Board, together with those appointed or resigned during the year, is set out below.

Dr Maria Balshaw CBE Joseph P Baratta II B John Botts B George Economou B Edward Eisler B Mala Gaonkar B, P Scott Mead B, P Simon Palley B, IC, P Franck Petitgas B (President of Tate Foundation) Emmanuel Roman B Roland Rudd B (Chairman of Tate Foundation) Sir Anthony Salz B Lord Stevenson of Coddenham CBE B Lance Uggla B

Company Secretary

Tara Feshitan

Honorary Members

Abigail Baratta B, Tate Americas Foundation Victoria Barnsley B, P Debby Brice B, IC Lord Browne of Madingley FRS, FREng B, P Susan Burns B

2

Christina Chandris B, IC Melanie Clore B Sir Howard Davies P Dame Vivien Duffield DBE B Maryam Eisler B Sasan Ghandehari B Noam Gottesman B, IC Oliver Haarmann B Peter Kellner B, P Catherine Lagrange B, IC Ronald and the Hon Mrs Rita McAulay B Mandy Moross B Elisabeth Murdoch B Lord Paul Myners CBE B Marilyn Ofer B, IC John Porter B Sir John Ritblat B Lady Ritblat B Dame Theresa Sackler DBE B, IC The Rt Hon Sir Timothy Sainsbury B Peter Simon B Jon Snow B Mercedes Stoutzker B John Studzinski CBE B, IC, Tate Americas Foundation The late Ian Taylor B Viktor Vekselberg B Sir David Verey CBE B Anita Zabludowicz OBE B, IC

B: Benefactor; IC: International Council; P: Tate Patron; S: Sponsor

Executive

The day to day management of the charity is delegated to Tate staff, the key personnel involved are:

Dr Maria Balshaw CBE, Trustee, Tate Director Claire Gylphé, Director of Development Stephen Wingfield, Director of Finance and Estates

Structure, governance and management

Governing document

Tate Foundation is a charitable company limited by guarantee, incorporated on 2 June 2000. The company was established under a Memorandum of Association, which established the objects and powers of the charitable company and is governed under its Articles of Association.

Tate Foundation is governed by Trustees who constitute Directors for Companies Act purposes and Trustees for the purposes of charity law.

The role of the Trustees is non-executive and voluntary. The Trustees meet three times a year to conduct the formal business and provide a framework to be followed by Tate staff, who run the day to day activities of the charity.

Recruitment and appointment of Trustees

Potential Trustees are invited to join Tate Foundation depending on their skills and experience and are appointed by the members for three years. The minimum number of Trustees is two.

Induction and training of Trustees

New Trustees are inducted and given training appropriate to their knowledge and ability. In addition, all Trustees are issued with “Guidelines for the Trustees/Directors of Tate Foundation on dealing with questions of benefit and conflicts of interest”, which describes how Trustees should identify and approach potential conflicts of interest and

3

issues relating to benefits. Trustees complete an annual Conflict of Interest Declaration Form, which is used to monitor and manage conflicts of interest.

Fundraising practices and compliance

Tate is registered with the Fundraising Regulator and Tate Foundation raises funds in support of Tate through its Patrons, Acquisition Committees, International Council, Legacy and other fundraising schemes. Tate Foundation does not undertake mass fundraising activity and does not employ third party agencies or individuals to fundraise on its behalf. The Foundation has received no complaints in relation to its fundraising activities in this reporting period.

Organisational structure

The Tate Foundation Trustees establish a framework for the organisation, with the day to day operation and management delegated to Tate staff. The Trustees oversee policies and financial decisions and approve the contribution to Tate.

Related parties

The organisation is strongly reliant on Tate’s infrastructure and procedures, especially in relation to staff and risk management.

Objectives and activities

Tate Foundation’s objective is the promotion of the charitable purposes of the Board of Trustees of the Tate Gallery (Tate). Tate’s guiding mission is to increase public knowledge, understanding and appreciation of British art from the sixteenth century to the present day and of international modern and contemporary art. Tate Foundation delivers public benefit through its support of Tate.

Tate Foundation receives donations and holds funds in anticipation of grant requests from Tate. Tate Foundation’s aim for the year was to maximise income and support the long-term aspirations of the charity.

The strategy to achieve these objectives was to maximise the income from the various activities described below.

How Tate Foundation’s activities deliver public benefit

Tate Foundation’s main activities and who it aims to help are described below. All charitable activities focus on supporting Tate in promoting increased knowledge, understanding and enjoyment of British art from 1500 and International Modern and Contemporary Art and are undertaken to further charitable purposes for the public benefit.

The Trustees confirm that they have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the charity’s aims and objectives and in planning future activities.

4

Who benefited

During 2020-21 those benefiting from Tate’s services, which receive direct financial support from Tate Foundation, included the 591,000 visitors to the four Tate galleries in London, Liverpool and St Ives and also the just under 19 million unique visitors to the Tate website. Tate conducts outreach programmes, for local communities in Millbank, Southwark, Liverpool and St Ives. These include working with young people, under-represented communities, and families with pre-school children. Tate actively pursues diversity and promotes a multi-cultural perspective. Accessibility is an abiding principle.

Tate Foundation continues to support the acquisition of key works in the collection for the public benefit. Tate's ambition to grow the collection to become more international and diverse was supported by Tate Foundation through the acquisition of a number of important works from the Middle East, Asia-Pacific, South Asia, Africa, Europe and Russia and Eastern Europe.

Tate Foundation contributions supported the Lynette Yiadom-Boakye: Fly In League With The Night and Turner’s Modern World exhibitions at Tate Britain, as well as the Bruce Nauman and Zanele Muholi exhibitions at Tate Moderns. Financial support was also made available to support Tate’s Performance Activation Fund, Schools and Teachers programme, Tate Exchange, Tate Collective, Tate Intensive and the conservation of works by artists including Tacita Dean, David Hockney, Piet Mondrian, and JMW Turner.

Tate Foundation contributions continued to support the completed capital projects at Tate Modern.

Strategic report

Achievements and performance

During 2020-21, Tate Foundation achieved its objective by making charitable grants of £3,180,116 ( 2020: £4,755,331 ) of which £1,890,329 ( 2020: £3,061,368 ) supported purchases of works of art. These works of art will be available for the public to view when they are on display within the Tate Galleries.

The remaining charitable grants of £1,289,787 ( 2020: £1,693,963) were to support Tate’s capital and public programme, including making direct contributions to exhibitions, education and conservation departments.

Key performance indicators used by the Trustees include income pledged through various fundraising activities against targets. For the year ended 31 March 2021, voluntary income for non-capital projects was pledged against target as follows for the activities listed:

Voluntary income pledged Target Actual
Pledged
2021
£000 £000
Patrons – London 1,073 1,021
International Council 990 711
Frieze Art Fair 150 150
APAC 375 372
MENAAC 178 186
PAC 229 262
AAC 200 262
SAAC 188 186
REAAC 269 284
European Collectors Circle 525 717

Contribution to works of art purchased by Tate

Contributions during the year were made in respect of the following works of art:

Tri-form tri-colour 1968, Ann Sutton Both sides 1967, Ann Sutton

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Spiral colour and area progression 1965, Ann Sutton Diminishing square thickness 1965, Ann Sutton The Square, The Line and The Ruler 2019, Anna Boghiguian Institution vs The Mass 2019, Anna Boghiguian Tongues 1998 (Activation Version), Anu Põder Bricolage 1964, Carol Rama Buff in Bloom, Glow and Thumos 2016, Daiga Grantiņa Isola Bella 2007-8, Danica Dakić Changing Room 2014, Helen Cammock Don't Look At The Finger 2017, Hetain Patel Shinjuku Station, Tokyo, Japan 1962, 1962, printed 2015, Hiro (Yasuhiro Wakabayashi) The Pole of the East 2004, Huang Yong Ping L'Ange Chasse (Fallen Angel)/ Angel Hunt 1966, Jagoda Buić L'Ange Chasse (Fallen Angel)/ Angel Hunt 1966, Jagoda Buić Ass Priest 2017, Jesse Darling Our Labyrinth 2015-present, Lee Mingwei Razorbill 2020, Lynette Yiadom-Boakye In Place of the Public:Airport Series 1983, JFK TWA New York 1990, O'Hare Chicago 1994, Martha Rosler Exergie (butter Dance) 2000, Melati Suryodarmo The Weight of Hands 2010, Minouk Lim Weed Killer 2017, Patrick Staff Levant 2018, Paul Maheke Mutual Survival, Lorde’s Manifesto 2015, Paul Maheke New Jersey Night from Westside Highway 1975, Lower Manhattan from the Harbor 1976, Ricie 1985, Draped Male Nude (111) Animals Shaggy Cow, Hyrkin Farm (II), Peter Hujar Fire! 1975, Rasheed Araeen Software Garden 2018, Rory Pilgrim That is where, as you heard, the elephant danced the malinga/The place where they now grow flowers, 2016, Sammy Baloji Room for Deportees 2017, Siah Armajani Nisyros (Vivian's bed) 2016-17, Vivian Suter Gorbachev 1990, Vladislav Mamyshev-Monroe Male and Female Singers and Actors 1990, Vladislav Mamyshev-Monroe Lighter, yellow/green 1 2008, Wolfgang Tillmans Lighter, blue concave II 2010, Wolfgang Tillmans Lighter 44 2008, Wolfgang Tillmans Lighter, blue up IX 2013, Wolfgang Tillmans

Financial review

The accounts have been prepared under FRS 102. Total income for the year was £6,727,758 (2020: £6,574,490) . Of the total income figure, £1,539,812 ( 2020: £1,592,708 ) was received for the major capital project at Tate Modern.

The surplus for the year was £2,337,252 ( 2020: £608,191 ).

Reserves policy

It is the Trustees’ policy to review the reserves on an annual basis to consider if they are appropriate for the current activity of the Foundation and requests for grants from Tate. As a standard, reserves should be maintained at a minimum level of 25% of total income, excluding major capital project donations, which should provide sufficient working capital for one year. A level of £1,296,987 is required to comply with this policy. Free reserves are currently held at a level above the reserves policy to reflect income recognised but not yet received.

Free reserves, defined as unrestricted funds excluding designated funds and works of art, at 31 March 2021 were £11,845,301 ( 2020 restated: £9,786,421 ). Restricted reserves at this date were £4,841,051 ( 2020: £4,562,679 ). Total reserves held by Foundation at that date were £17,124,352 ( 2020: £14,787,100 ).

Investments

Current asset investments of £20,751,703 ( 2020: £13,854,093 ) held at 31 March 2021 were term deposits.

6

Plans for future periods

Tate Foundation continues to support Tate’s strategic development. Tate Foundation will continue to represent the interests of those individuals who give significant financial support or gifts of art to Tate by appointing Trustees of the Foundation from amongst its supporters who are best qualified to offer advice and support to the Tate Gallery Board and Tate Executive on the fulfilment of Tate’s strategic objectives. This includes building the Patrons and International Council membership schemes and increasing major donations to Tate, particularly to the Collection through the acquisition committees and a planned Endowment Campaign.

As a result of the continued impact of the Coronavirus pandemic and the measures taken by governments both in the UK and overseas, the Foundation’s forecasts have been adjusted. It is expected that the level of donations will remain the same in the next financial year and that grant requests from Tate Gallery will be fulfilled by in-year donations. Due to the effects of the curtailment of its trading activities on its profitability during the Coronavirus pandemic, Tate Enterprises is not able to make a Gift Aid donation to Tate Foundation in 2020-21, nor is it anticipated that Tate Enterprises Limited will be able to make one in 2021-22.

Principal risks and uncertainties

The Tate Foundation Board has responsibility for ensuring effective risk management processes are in place. The actual risk management processes are the responsibility of senior staff (who are Tate management) and are embedded in the management process. The Board places strong reliance on the risk analysis and control environment operated by Tate and the Tate Audit Committee.

Tate Foundation has prepared a risk register, which details the major risks the organisation faces and identifies the controls in place to mitigate those risks. The register also covers compliance with statutory requirements and internal control procedures as well as investment risk. The risk register is kept under review on an ongoing basis by Tate’s management and risks are discussed by the Board as part of the operational update at each meeting. The focus is on ensuring that risks are managed effectively by senior Tate staff. Tate Foundation’s operations and risk management processes are also reviewed periodically by Tate’s Internal Audit. However, it is recognised that a risk management system can only seek to manage, rather than eliminate, factors that impact on the ability to achieve business objectives, and can provide only reasonable assurance against material misstatement or loss.

The principal risks and uncertainties which could impact Tate Foundation’s performance, and the associated mitigating activities, are summarised below.

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Area of principal risk/uncertainty Description and examples of mitigating activities
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Area of principal risk/uncertainty
Description and examples of mitigating activities		 Area of principal risk/uncertainty
Description and examples of mitigating activities

Increasingly competitive environment for
philanthropic giving as a result of the Coronavirus
pandemic.

Reduction in Tate programme against which to
fundraise due to temporary closure during
Coronavirus pandemic and longer-term effects on
sector e.g. reduction in tourism.

Challenges to the overall economic climate
leading to increased pressure on discretionary
expenditure.

Impact on fundraising due to heightened external
scrutiny of ethical considerations.
Fundraising propositions and membership schemes
are subject to continual review to ensure they are
relevant and attractive to a changing market, and
focus on a cause rather than specific programme.
Advice is sought from non-executive advocates and
Trustees.

Prospect pools are carefully identified and managed
to ensure they only include those who have capacity
to give. Additionally, an ongoing programme of
high-quality stewardship is in place so that Tate
retains a relationship with donors and sponsors who
may be approached in the future.

Active supporter prospecting is supported by robust
research and due diligence in line with Tate’s Ethics
and Donations policies.

A robust system of financial management and
control is in place, including:
o
Management of forecast in current financial
year and budget planning for future years;
o
Quarterly reforecasts include implementing
Action Plans to address specific risks;
o
Effective financial control;
o
Holding a contingency against key operational
risks and having a reserves policy.

Auditors

Moore Kingston Smith LLP were appointed as auditors during the year and, having expressed their willingness to continue in office, will be deemed reappointed for the next financial year in accordance with section 487(2) of the Companies Act 2006 unless the company receives notice under section 488(1) of the Companies Act 2006.

This report, including the Strategic Report, was approved by the Board on 30[th] June 2021 and signed on 1[st] July 2021 on its behalf by:

Roland Rudd Trustee

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Statement of Trustees’ responsibilities

The Trustees (who are also directors of Tate Foundation for the purposes of company law) are responsible for preparing the Trustees’ Annual Report (including Strategic Report) and the financial statements in accordance with applicable law and regulations.

Company law requires the Trustees to prepare financial statements for each financial year. Under that law the Trustees have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including FRS 102. Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the Trustees are required to:

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

The Trustees confirm that:

The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

9

Independent auditor's report to the members of Tate Foundation

Opinion

We have audited the financial statements of Tate Foundation (‘the company’) for the year ended 31 March 2021 which comprise the Statement of Financial Activities, the Summary Income and Expenditure Account, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 ‘The Financial Reporting Standard Applicable in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting Practice).

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs(UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

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

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

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 the audit:

10

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the trustees’ annual report.

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

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 9, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

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

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

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the charitable company.

Our approach was as follows:

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As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to any party other than the charitable company and charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

…………………………………………………………..

7 July 2021 Date: ……………..

Neil Finlayson (Senior Statutory Auditor)

for and on behalf of Moore Kingston Smith LLP, Statutory Auditor

Devonshire House 60 Goswell Road London EC1M 7AD

12

Statement of financial activities

(Incorporating an income and expenditure account)

(for the year ended 31 March 2021)

Notes
Income and endowments from:
Donations and legacies
4
Other trading activities
Investments
5
Other
Total
Expenditure on:
Raising funds
Costs of generating donations
and legacies
9
Fundraising trading: cost of goods sold
and other costs
Investment management costs
Charitable activities
7
Other
Total
Net gains on investments
Net income/(expenditure)
6
Transfers between funds
16
Other gains/(losses)
Net movement in funds
Reconciliation of funds:
Total funds brought forward
16
Total funds carried forward
16		 Unrestricted funds
Restricted
funds
2021 Total
2020 Total
£
£
£
£
2,754,714
3,968,048
6,722,762
6,541,445
- -
-
-
4,996
-
4,996
33,045
- -
-
-
2,759,710
3,968,048
6,727,758
6,574,490
(1,210,373)
(17)
(1,210,390)
(1,210,968)
- -
-
-
- -
-
-
(1,030,269)
(2,149,847)
(3,180,116)
(4,755,331)
- -
-
-
(2,240,642)
(2,149,864)
(4,390,506)
(5,966,299)
-
-
-
-
519,068
1,818,184
2,337,252
608,191
1,539,812
(1,539,812)
-
-
2,058,880
278,372
2,337,252
608,191
10,224,421
4,562,679
14,787,100
14,178,909
12,283,301
4,841,051
17,124,352
14,787,100

The results for the year were derived solely from continuing operations.

The notes on pages 16-24 form part of these accounts

13

Balance sheet

at 31 March 2021

Notes
Fixed assets
Heritage assets
11
Current assets
Debtors
13
Investments
12
Cash at bank and in hand
Creditors: amounts falling due within one year
14
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after more than one
year
15
Net assets
Funds
Unrestricted
Designated
16
Other
16
Restricted
16
Total funds		 2021
2020
£
£
438,000
438,000
438,000
438,000
3,314,226
5,882,696
20,751,703
13,854,093
1,453
3,641
24,067,382
19,740,430
(7,381,030)
(5,391,330)
16,686,352
14,349,100
17,124,352
14,787,100
-
-
17,124,352
14,787,100
-
-
12,283,301
10,224,421
4,841,051
4,562,679
17,124,352
14,787,100

These financial statements were approved by the Board of Trustees on 30[th] June 2021 and signed on 1[st] July 2021 on its behalf by:

Roland Rudd Trustee

Company registration number 04009652

The notes on pages 16-24 form part of these accounts

14

Statement of cash flows

(for the year ended 31 March 2021)

Note
Cash flows from operating activities:
Net cash provided by/(used in) operating activities
20(i)
Cash flows from investing activities:
Dividends and interest
Cash flows from financing activities:
Repayments of borrowing
Cash inflows from new borrowing
Net cash provided by/(used in) financing activities
Change in cash and cash equivalents in the reporting period
Cash and cash equivalents at the beginning of the reporting period
Cash and cash equivalents at the end of the reporting period
20(ii)		 2021
2020
£
£
6,890,426
3,767,323
4,996
33,045
-
-
-
-
-
-
6,895,422
3,800,368
13,857,734
10,057,366
20,753,156
13,857,734

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Notes

(forming part of the financial statements)

1 Accounting policies

The following accounting policies have been applied consistently in dealing with items which are considered material in relation to Tate Foundation’s financial statements.

Basis of preparation

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015) and the Companies Act 2006.

Tate Foundation meets the definition of a public benefit entity under FRS 102.

The functional currency is GBP sterling.

Going concern basis of preparation for the accounts

The accounts have been prepared on the going concern basis. As a result of the impact of the Coronavirus pandemic and the measures taken by governments both in the UK and overseas, the foundation’s forecasts have been adjusted and continue to be reviewed on a quarterly basis. Tate Foundation receives donations and holds funds in anticipation of grant requests from Tate Gallery. It is expected that the level of donations, including those from Tate Enterprises Limited as a result of the downturn in its trading activities during and after the Coronavirus pandemic, will fall and that grant requests from Tate Gallery will be fulfilled by in-year donations and the use of reserves. The trustees are confident that the company can continue to cover its operating costs as they fall due for a period of at least twelve months from the date of approval of these financial statements.

Subscriptions and donations

Donations that have a formal gift agreement will be recognised at the date of the agreement, unless there are terms and conditions which must be met before Tate Foundation is entitled to the resources. All other donations will be recognised on a cash received basis, unless there are terms and conditions which must be met before Tate Foundation is entitled to the resources.

Donations usually also include a contribution from the Corporate Membership programme which was moved to Tate Enterprises Ltd, a wholly owned subsidiary of Tate, on 1 April 2017. Tate Enterprises gift aids all the profits from this activity to the Tate Foundation. Due to the effects of the Coronavirus pandemic on Tate Enterprises’ activities, no gift aid will be paid to Tate Foundation in 20-21.

Legacies

Receipt of a legacy will be recognised when there has been grant or probate; the executors have established that there are sufficient assets in the estate; and that any conditions attached to the legacy are within the control of Tate Foundation or have been met.

Unrestricted funds

These resources arise from the accumulated surpluses and deficits in the operation for charitable purposes and are expendable at the discretion of the Trustees in furtherance of the objective of the charity.

Designated funds

Funds designated for a particular use by the Trustees.

Restricted funds

These resources arise from contributions received for specific purposes. These funds are expended in accordance with these purposes.

Financial instruments

Tate Foundation only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

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Charitable grants payable

This expenditure represents contributions made to Tate towards acquisition of works of art by Tate and towards Tate projects. The expenditure is recognised when Tate Foundation is committed to provide such funding.

Raising funds

This expenditure represents the costs of fundraising.

Borrowings

Interest is charged to the statement of financial activities as it accrues. Charges incurred on the RBS loan were at a rate of 1% over LIBOR per interest period on the total amount of the loan.

Governance costs

This expenditure is audit and legal fees.

Investments

Investments are stated at market value rather than at historical cost. Any unrealised gains or losses arising from this policy are disclosed in the statement of financial activities.

Heritage assets

Heritage assets are stated at valuation as at the date of introduction of FRS 30: Accounting for Heritage Assets. They are not depreciated or revalued as a matter of routine, as the assets are deemed to have indeterminable lives. Impairment reviews are carried out only if the asset suffers physical deterioration or doubts arise as to their authenticity.

17

Notes (continued)

2 Statement of financial activities

(Incorporating an income and expenditure account)

(for the year ended 31 March 2020)

Income and endowments from:
Donations and legacies
Investments
Total
Expenditure on:
Raising funds
Costs of generating donations and legacies
Charitable activities
Total resources expended:
Net income/(expenditure)
Transfers between funds
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Total funds carried forward		 Unrestricted
funds
Restricted
funds
2020
£
£
£
2,607,849
3,933,596
6,541,445
33,045
-
33,045
2,640,894
3,933,596
6,574,490
(1,192,092)
(18,876)
(1,210,968)
(1,796,773)
(2,958,558)
(4,755,331)
(2,988,865)
(2,977,434)
(5,966,299)
(347,971)
956,162
608,191
1,592,621
(1,592,621)
--
1,244,650
(636,459)
608,191
8,979,771
5,199,138
14,178,909
10,224,421
4,562,679
14,787,100

3 Staff numbers and costs

Tate supplies employees and recharges the cost to Tate Foundation. The charge for the year is £656,571 ( 2020: £573,655 ) and also includes agency staff charged directly to Tate Foundation of £nil ( 2020: £391 ).

18

Notes (continued)

4 Donations and legacies

Unrestricted Restricted
funds funds 2021 2020
£ £ £ £
Tate Patrons 1,021,020 - 1,021,020 1,280,010
International Council members 711,076 - 711,076 969,094
Tate Fund 1,055,444 - 1,055,444 48,497
Asia Pacific Acquisitions Committee - 371,963 371,963 396,297
Middle East & North Africa
Acquisitions Committee - 186,076 186,076 216,867
African Acquisitions Committee - 262,201 262,201 244,546
South East Asia Acquisitions Committee - 185,688 185,688 240,619
Photography Acquisition Group - 261,692 261,692 268,366
Russia & East European Acquisitions
Committee - 284,098 284,098 319,110
Director’s Future Fund - - - -
European Collectors Circle - 716,518 716,518 465,083
Liverpool Commissioning Circle - 10,000 10,000 20,000
Frieze Fund - 150,000 150,000 150,000
Capital Projects Fundraising - 1,539,812 1,539,812 1,592,708
Legacies 280,846 - 280,846 1,181
Performance Fund - - - 20,000
Other donations received / (adjusted) - - - 4,067
Gift aid from Tate Enterprises Limited (313,672) - (313,672) 305,000
2,754,714 3,968,048 6,722,762 6,541,444
5 Investments
Unrestricted Restricted
funds funds 2021 2020
£ £ £ £
Bank interest 4,996 - 4,996 33,045
4,996 - 4,996 33,045
6 Net income/(expenditure)
Net income/(expenditure) is stated after charging: 2021 2020
£ £
Auditors’ remuneration 8,885 8,700

Auditor’s remuneration for the year ended 31 March 2021 was £8,885 ( 2020: £8,700 ).

19

Notes (continued)

7 Charitable activities

Contributions towards works of Art
purchased by Tate
Contributions to Tate		 Unrestricted
funds
Restricted
funds
2021
2020
£
£
£
£
608,982
1,281,347
1,890,329
3,061,368
421,287
868,500
1,289,787
1,693,963
1,030,269
2,149,847
3,180,116
4,755,331

There were £3,140,116 of accrued contributions at 31 March 2021 ( 2020: £2,808,429 )

8 Trustees’ remuneration

The Trustees received no remuneration or expenses in the year ended 31 March 2021 ( 2020: nil

9 Raising funds

Unrestricted funds
Restricted funds:
Frieze Fund		 Staff
costs
Members’
benefits
Other
costs
Total
2021
Total
2020
£
£
£
£
£
656,571
11,948
541,854
1,210,373
1,192,092
-
-
17
17
18,876
656,571
11,948
541,871
1,210,390
1,210,968

10 Support costs

All support services including Finance, Human Resources and Information Systems are provided by Tate. This service is estimated to have a value of £126,475 ( 2020: £131,764 ) and has been charged to costs of generating donations and legacies in the statement of financial activities.

20

Notes (continued)

11 Heritage assets

Tate Foundation owns a collection of 9 modern works of art. These assets were donated to Tate Foundation in the 1980s and have a collective value of £438,000 as at the 31 March 2021 ( 2020: £438,000 ). The assets were valued in 2009 by Tate Gallery curators using industry standard methods of valuation. There have been no additions, disposals, revaluations or impairment of heritage assets in any of the four previous accounting periods. The Trustees do not have a general acquisitions and disposal policy but look at each work of art on a case by case basis.

At 31 March 2021, one of these works of art was on loan to the Scottish National Gallery of Modern Art; the remainder were on loan to Tate galleries where they are under the care of the Collection Care department, details of which can be found at http://www.tate.org.uk/about/our-work/conservation. The loans and details of the works of art are recorded on the Tate Gallery database system.

Value at Revaluations Additions Disposals Value at
1 April 31 March
2020 2021
£ £ £ £ £
Works of art 438,000 - - - 438,000

12 Investments

Current asset investments are held in various term deposits and are treated as liquid resources for the purposes of the cashflow statement.

13 Debtors

Trade debtors
Taxation and social security
Other Debtors
Prepayments and accrued income: amount falling due within one year
Prepayments and accrued income: amounts falling due after more than
one year
Receivable from Tate and associates		 2021
2020
£
£
-
49,743
-
-
23,722
157
1,193,228
1,093,048
2,000,000
3,000,000
97,276
1,739,748
3,314,226
5,882,696

14 Creditors: amounts falling due within one year

Trade creditors
Taxation and social security
Loans
Other creditors
Accruals and deferred income
Payable to Tate and associates		 2021
2020
£
£
14,074
61,606
26,459
2,233
-
-
3,000
1,124,572
145,195
182,754
7,192,302
4,020,165
7,381,030
5,391,330

21

Notes (continued)

15 Creditors: amounts falling due after more than one year

Deferred income 2021
2020
£
£
-
-
-
-

16 Reconciliation of movements in funds

Restricted funds
International Council
Annual Fund
Latin American Acquisitions
Committee
Asia Pacific Acquisitions
Committee
Middle East & North Africa
Acquisitions Committee
African Acquisitions Committee
South East Asia Acquisitions
Committee
Photography Acquisition Group
Russia & East European
Acquisitions Committee
European Collectors Circle
Collection Fund
Liverpool Commissioning Circle
Frieze Fund
Capital projects fundraising
Legacies
Performance Fund
Other restricted reserves
Total restricted funds
Unrestricted funds
Designated
Works of art
Other
Total unrestricted funds
Total funds		 At 1 April
2020
Incoming
Outgoing
Transfers
At 31
March 2021
£
£
£
£
£
54,929
-
-
-
54,929
583
-
-
-
583
53,367
-
-
-
53,367
568,546
371,962
.
(431,446)
-
509,062
155,497
186,076
(220,498)
-
121,075
222,091
262,201
(202,808)
-
281,484
53,325
185,690
(62,500)
-
176,515
208,738
261,692
(180,109)
-
290,321
148,326
284,097
(235,577)
-
196,846
123,605
716,518
(348,038)
-
492,085
160,727
-
-
-
160,727
52,500
10,000
(20,000)
-
42,500
45,419
150,000
(22,888)
-
172,531
1,823,012
1,539,812
(426,000)
(1,539,812)
1,397,012
709,457
-
-
-
709,457
67,209
-
-
-
67,209
115,348
-
-
-
115,348
4,562,679
3,968,048
(2,149,864)
(1,539,812)
4,841,051
-
-
-
-
-
438,000
-
-
-
438,000
9,786,421
2,759,710
(2,240,642)
1,539,812
11,845,301
10,224,421
2,759,710
(2,240,642)
1,539,812
12,283,301
14,787,100
6,727,758
(4,390,506)
-
17,124,352

22

Notes (continued)

Restricted funds

Restricted funds are held for acquisition of works of art or for decision by the membership councils. Further details may be found in the Trustees’ report.

Part of the Collection Fund is restricted and is there to support the Tate Collection.

The Capital projects fundraising fund was for three major projects which have now been completed: the Tate Modern Project, Tate Britain Millbank Project and Tate St Ives Phase II. All funds on the Tate Britain Millbank Project and the Tate St Ives Phase II have been received. Pledges for the Tate Modern Project continue to be received as scheduled. In the year to March 2021, £1,539,812 of Tate Modern Project donations were returned to unrestricted reserves (2020: £1,592,621).

Other restricted reserves include amounts given for specific acquisitions and projects.

Designated funds

In June 2019, Trustees removed the designation on an unrestricted fund which had been created to support a fundraising initiative.

Unrestricted funds

Funds available for general use.

17 Analysis of net assets between funds

Fixed assets
Works of art
Current assets
Current liabilities
Long term creditors
Total net assets		 Unrestricted
funds
Restricted
funds
2021
2020
£
£
£
£
438,000
-
438,000
438,000
19,226,331
4,841,051
24,067,382
19,740,430
(7,381,030)
-
(7,381,030)
(5,391,330)
-
-
-
-
12,283,301
4,841,051
17,124,352
14,787,100

18 Related parties

The only related party transactions during the year were those with the Board of Trustees of the Tate Gallery who employ the Development Office staff who serviced Tate Foundation, and who provided support for back office functions including Human Resources, Information Systems, Finance and Legal. This was at a charge of £783,046 ( 2020: £705,029 ). These transactions were in addition to the charitable contributions paid to Tate as set out in note 7.

19 Liability of members

Tate Foundation is a company limited by guarantee, with no share capital. Each member of the company, of which there are currently two, is liable to contribute £1 in the event of the winding up of the company.

23

Notes (continued)

20 Statement of cash flows

(i) Reconciliation of net income/(expenditure) to net cash flow from operating activities

Net income/(expenditure) for the reporting period (as
per the statement of financial activities)
Adjustments for:
Dividends and interest
Decrease/ (increase) in debtors
(Decrease)/ increase in creditors
Net cash provided by/(used in) operating activities
Analysis of cash and cash equivalents
Cash in hand
Notice deposits (less than 3 months)		 2021
2020
£
£
2,337,252
608,191
(4,996)
(33,045)
2,568,468
(355,977)
1,989,702
3,548,154
6,890,426
3,767,323
2021
2020
£
£
1,453
3,641
20,751,703
13,854,093
20,753,156
13,857,734

(ii) Analysis of cash and cash equivalents

24