2022-07-31-accounts

Charity registra�on number 1098517

THE LYC FOUNDATION

ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 31 JULY 2022

THE LYC FOUNDATION

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees	Mr B M Haines
	A Lan
	Dr D Yeh
Charity number	1098517
Independent examiner	Grunberg & Co Limited
	5 Technology Park
	Colindeep Lane
	Colindale
	London
	United Kingdom
	NW9 6BX

THE LYC FOUNDATION

CONTENTS

	Page
Trustees report	1 - 4
Independent examiner's report	5
Statement of fnancial ac�vi�es	6
Statement of fnancial posi�on	7
Notes to the fnancial statements	8 - 13

THE LYC FOUNDATION

TRUSTEES REPORT

FOR THE PERIOD ENDED 31 JULY 2022

The trustees present their annual report and financial statements for the Period ended 31 July 2022.

The financial statements have been prepared in accordance with the accoun�ng policies set out in note 1 to the financial statements and comply with the charity's governing document, the Chari�es Act 2011 and "Accoun�ng and Repor�ng by Chari�es: Statement of Recommended Prac�ce applicable to chari�es preparing their accounts in accordance with the Financial Repor�ng Standard applicable in the UK and Republic of Ireland (FRS 102)" (effec�ve 1 January 2019).

Objec�ves and ac�vi�es

Educa�on and research

Covid and the implica�ons of the pandemic halted the out reach work of the Founda�on during 2020­21 and 2021­22 has seen the con�nua�on of research by scholars, notably with the Paul Mellon Centre and Ke5les Yard.

Li Yuan­chia’s work was included several world class exhibi�ons this year:

‘Art Histories of a Forever War: Modernism between Space and Home’, a group exhibi�on at Taipei Fine Arts Museum, during (16/10/21­20/2/22). The presenta�on was an explora�on of modern art in post war Taiwan and the enduring resonances of this historical milieu. Paying tribute to a genera�on of pioneer prac��oners in Taiwan art history who crystalised modern art through a series of ar�s�c breakthroughs and debates, the exhibi�on foregrounds the modern art masterpieces housed in the Taipei Fine Arts Museum, including works of Li Yuan­Chia, Chin Sung, Liu Kuo­Sung, Hsiao Chin, Lee Shi­Chi, and Han Hsiang­ Ning as well as works by modernist architects Wang Da Hong and Chen Chi­Kwan and thirteen representa�ve contemporary ar�sts.

‘Radical Landscapes’, Tate Liverpool, (5/5/22 – 4/9/22). From rural raves in Castlemorton to an�­nuclear protests at Greenham Common, this exhibi�on presented a radical view of the Bri�sh landscape in art. Includes hand­coloured photographs made in the grounds of Li’s home at Banks, Cumbria, alongside pain�ngs, sculptures, photographs, films by ar�sts including Gustav Metzger, Jeremy Deller, Ingrid Pollard, Tanoa Sasraku, Derek Jarman, Hurvin Anderson, Claude Cahun, Alan Lodge and many ­ ­ more. Tate showed works previously acquired by the Tate from the Founda�on h5ps://www.tate.org.uk/whats on/tate ­ liverpool/radical landscapes

‘A Century of the Ar�st’s Studio, 1920­2020’ at Whitechapel Gallery, (24/2/22 – 5/6/22), was a 100­year survey of the studio through the work of ar�sts and image­makers from around the world. Whether it be an abandoned factory, an aHc or a kitchen table, it is the ar�st’s studio where the great art of our �me is conceived and created. In this mul�­media exhibi�on, the wide­ranging possibili�es and significance of these crucibles of crea�vity take centre stage and new art histories around the modern studio emerge through striking juxtaposi�ons of under­recognised ar�sts with celebrated figures in Western art history. The exhibi�on bought together more than 100 works by over 80 ar�sts and collec�ves from Africa, Australasia, South Asia, China, Europe, Japan, the Middle East, North and South America. They range from modern icons such as Francis Bacon, Louise Bourgeois, Pablo Picasso, Egon Schiele and Andy Warhol, to contemporary figures such as Walead Beshty, Lisa Brice and Kerry James Marshall. It is important that Li’s work is seen as equivalent in this lineage of a contemporaneous art history. The exhibi�on includes pain�ngs, sculptures, installa�ons and films depic�ng the studio as work of art and presents documenta�on of ar�sts’ studios by world­renowned photographers and film­makers. A series of ‘studio corners’ also recreate the actual environments where great art has been produced. Aaron Tan, a young ar�st based in London took Li’s prac�ce in its domes�c context as a star�ng point for a homage to Li’s work, making a facsimile of a kitchen cabinet from Li’s former home in Banks to show a series of points and �ny projec�ons within.

THE LYC FOUNDATION

TRUSTEES REPORT (CONTINUED)

FOR THE PERIOD ENDED 31 JULY 2022

Objec�ves and ac�vi�es

Aaron Tan received a grant of £1,000 from LYC Founda�on towards the produc�on costs of this (28/2/22).

h%ps://www.theguardian.com/artanddesign/2022/may/06/radical­landscapes­loving­greenfelds­wicked­tate­liverpool­tacita­ dean­constable

h%ps://www.whitechapelgallery.org/exhibi�ons/a­century­of­the­ar�sts­studio­1920­2020/

Tate St Ives – as reported in the previous year’s report, Haegue Yang: the exhibi�on of Li’s work at Tate St Ives, in a larger exhibi�on curated by the ar�st Haegue Yang, originally scheduled for the summer but due to COVID19 postponed, commenced in Spring 2021 and concluded at the end of September 2021. Some 14 works, from the store in Salisbury were sent on loan. One of the Trustees (Bruce Haines) oversaw the loan arrangements, and Aliza Lan a%ended the exhibi�on.

h%ps://www.tate.org.uk/whats­on/tate­st­ives/haegue­yang­strange­a%ractors

The Trustees and Manager con�nue to support a post­graduate scholar, in Li Yuan­chia’s name, at the University of Cumbria. The Trustees have commi%ed to provide consulta�on support to this student, and others who may succeed him. The Trustees provide informa�on to scholars on request.

The past 18 months has seen a developing professional and scholarly rela�onship with the founding collec�ng curator at Museum+ in Taipei, Lesley Ma. Subsequently she has a new appointment as curator of the MET, New Yorkand is working with the Founda�on to have the works in the collec�on there. We have held Zoom mee�ngs with her and are looking to place work by Li in the MET in the future.

Royal�es for use of images under the Founda�on’s copyright con�nued as a valuable source of income to the Founda�on. They are managed by the non­profit organisa�on DACS, with whom the Founda�on is registered. The Founda�on must con�nue to direct enquiries to DACS so that source of income con�nues year on year. The Trustees must ensure that enquiries to use images of LYC are directed to DACS in order for this source of revenue to be maximised.

An objec�ve of establishing a fund for the financial support of ar�sts (and writers, poets, researchers) remains one of the fundamental aims of the Founda�on. However the unpredictable nature of sales means that regular contribu�ons to ar�sts have to be balanced against the fixed costs the Founda�on has in storing and conserving Li’s work, its website and administra�ve du�es.

The Founda�on returned the window made by David Nash for the LYC Museum in the 1970s to the ar�st for refurbishment. La%er to be reinstalled into The Farmers Arms. However, before this happens it will be shown at Ke%les Yard House and Museum from November 2023.

==> picture [488 x 36] intentionally omitted <==

THE LYC FOUNDATION

TRUSTEES REPORT (CONTINUED)

FOR THE PERIOD ENDED 31 JULY 2022

Achievements and performance

One key shi� in the Founda�ons objec�ves is to have the works of Li placed in museum collec�ons to mi�gate against the long term storage issue of keeping the work in storage facili�es while also allowing greater public access to the works themselves. Discussions con�nue with the Tate Gallery, London for a major acquisi�on of ink works on paper, that will be concluded in 2023.

The Founda�on was presented with an opportunity to acquire 5 hand coloured photographs by Li that the ar�st had previously sold, or given, to Mary Burke, a former director of Abbo Hall Museum and Art Gallery (1966­86) where Li’s work was shown in 2001. A�er her death in 2014 Lady Burke*’s estate was sold at auc�on in a small provincial agricultural auc�on where these works were acquired very cheaply by Max Wayman. The Founda�on decided to acquire these works to secure them for future presenta�on a�er conserva�on to Abbot Hall Museum where we believe they should behomed, at a cost of £15,000.

Financial review

Principal funding sources:

On 5/11/21 funds of £40,000 were incoming from the sale of works in Taiwan by the Each Modern (Taipei) Gallery.

The Founda�on seeks to establish itself as the principle commercial representa�ve of the Estate of LYC if possible. This is in contrast to the similar and conflic�ng aims of Richard Saltoun, a commercial gallery in London who operates outside of the parameters set by the Founda�on. The cost of this is high in terms of the percep�on of who manages LYC’s works interna�onally, and in the proper copyrigh�ng of Li’s work when published.

Trustees con�nue to discuss op�ons for the future funding of the Founda�on. Current costs include: storage, archivists, administrator salary (now invoiced hourly. Having the Trustee, Bruce Haines, administer the Founda�on is cost and �me effec�ve, as he has the contacts in the private and public sector, and where as the former part �me employee cost the founda�on some £21,000 pa, this arrangement cost the Founda�on in 2021­22 £3,105. According to the Chari�es commission payments such as this can be made so long as it “is in the interests of the Charity” and “provides a significant and clear advantage over other op�ons”. We try to minimise the regular outgoings, as in COVID19 period, fiscal arrangements need to be more conserva�ve as sales are less likely to ensue, while storage, accountancy, conserva�on and website costs con�nue to accrue.

The Founda�on also cover’s the Trustee’s travel to visit and aend exhibi�ons that feature Li’s work, in this case to Brussels by Aliza Lan. The laer began to do more work for the Founda�on, however the costs of this looks to be high and incurred £1,650 in just one month (compared with £3,105 for 12 months by the administrator). However the Founda�on will have to consider the increased awareness of the Founda�on as a result of this paid ac�vity and advocacy.

Structure, governance and management

Governing document

The charity is controlled by its governing document, a deed of trust and cons�tutes an unincorporated charity. Recruitment and appointment of new trustees is guided by the governing document. For the present, Bruce Haines will manage the Founda�on’s administra�ve needs, while Aliza Lan, for as long as the funds allow, will seek to represent the Founda�on at higher art levels, that being at auc�on houses, ins�tu�ons, and the need of viewers for the works in storage. This will be reviewed at the end of the next year. Note: the costs incurred with employing Aliza Lan have proven to be unsustainable.

The trustees who served during the Period and up to the date of signature of the financial statements were: Mr B M Haines

A Lan Dr D Yeh

THE LYC FOUNDATION

TRUSTEES REPORT (CONTINUED)

FOR THE PERIOD ENDED 31 JULY 2022

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Charity number 1098517

Principal address c/o Mr Bruce Haines 47 Bradley Road London SE19 3NT

Report of the Trustees for the Year Ended 31 July 2022

Accountants Grunberg & Co Limited Chartered Accountants 5 Technology Park Colindeep Lane Colindale London NW9 6BX:

The Trustees report was approved by the Board of Trustees.

.............................. Mr B M Haines

Trustee

Date: .............................................

THE LYC FOUNDATION

INDEPENDENT EXAMINER'S REPORT

TO THE TRUSTEES OF THE LYC FOUNDATION

I report to the trustees on my examina�on of the financial statements of The LYC Founda�on (the charity) for the Period ended 31 July 2022.

Responsibili�es and basis of report

As the trustees of the charity you are responsible for the prepara�on of the financial statements in accordance with the requirements of the Chari�es Act 2011 (the 2011 Act).

I report in respect of my examina�on of the charity’s financial statements carried out under sec�on 145 of the 2011 Act. In carrying out my examina�on I have followed all the applicable Direc�ons given by the Charity Commission under sec�on 145 (5)(b) of the 2011 Act.

Independent examiner's statement

Your a/en�on is drawn to the fact that the charity has prepared financial statements in accordance with Accoun�ng and Repor�ng by Chari�es preparing their accounts in accordance with the Financial Repor�ng Standard applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accoun�ng and Repor�ng by Chari�es: Statement of Recommended Prac�ce issued on 1 April 2005 which is referred to in the extant regula�ons but has now been withdrawn.

I understand that this has been done in order for financial statements to provide a true and fair view in accordance with Generally Accepted Accoun�ng Prac�ce effec�ve for repor�ng periods beginning on or a7er 1 January 2015.

I have completed my examina�on. I confirm that no ma/ers have come to my a/en�on in connec�on with the examina�on giving me cause to believe that in any material respect:

• 1 accoun�ng records were not kept in respect of the charity as required by sec�on 130 of the 2011 Act; or

• 2 the financial statements do not accord with those records; or

• 3 the financial statements do not comply with the applicable requirements concerning the form and content of accounts set out in the Chari�es (Accounts and Reports) Regula�ons 2008 other than any requirement that the accounts give a true and fair view which is not a ma/er considered as part of an independent examina�on.

I have no concerns and have come across no other ma/ers in connec�on with the examina�on to which a/en�on should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.

Grunberg & Co Limited

Sanjay Pamar ACA

5 Technology Park Colindeep Lane Colindale London NW9 6BX United Kingdom

Dated: .........................

THE LYC FOUNDATION

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE PERIOD ENDED 31 JULY 2022

		Unrestricted	Unrestricted
		funds	funds
		2022	2021
	Notes	£	£
Income from:
Charitable ac�vi�es	2	40,687	1,920
Charitable ac�vi�es	3	13,581	17,941
Net income/(expenditure) and movement in funds		27,106	(16,021)
Reconcilia0on of funds:
Fund balances at 1 August 2021		57,868	73,889
Fund balances at 31 July 2022		84,974	57,868

The statement of financial ac�vi�es includes all gains and losses recognised in the Period. All income and expenditure derive from con�nuing ac�vi�es.

THE LYC FOUNDATION

STATEMENT OF FINANCIAL POSITION

AS AT 31 JULY 2022

		2022		2021
	Notes	£	£	£	£
Fixed assets
Intangible assets	8		1		1
Tangible assets	9		28,601		13,601
			28,602		13,602
Current assets
Cash at bank and in hand		64,555		51,499
Creditors: amounts falling due within one year	10	8,183		7,233
Net current assets			56,372		44,266
Total assets less current liabili-es			84,974		57,868
The funds of the charity
Unrestricted funds			84,974		57,868
			84,974		57,868

The financial statements were approved by the trustees on .........................

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

Mr B M Haines Trustee

THE LYC FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 JULY 2022

1 Accoun�ng policies

Charity informa�on

The LYC Founda�on is a an unincorporated charity.

1.1 Accoun�ng conven�on

The financial statements have been prepared in accordance with the charity's [governing document], the Chari�es Act 2011, FRS 102 “The Financial Repor�ng Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Chari�es SORP "Accoun�ng and Repor�ng by Chari�es: Statement of Recommended Prac�ce applicable to chari�es preparing their accounts in accordance with the Financial Repor�ng Standard applicable in the UK and Republic of Ireland (FRS 102)" (effec�ve 1 January 2019). The charity is a Public Benefit En�ty as defined by FRS 102.

The charity has taken advantage of the provisions in the SORP for chari�es not to prepare a Statement of Cash Flows.

The financial statements are prepared in sterling, which is the func�onal currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

1.2 Going concern

At the �me of approving the financial statements, the trustees have a reasonable expecta�on that the charity has adequate resources to con�nue in opera�onal existence for the foreseeable future. Thus the trustees con�nue to adopt the going concern basis of accoun�ng in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discre�on of the trustees in furtherance of their charitable objec�ves.

1.4 Income

Income is recognised when the charity is legally en�tled to it a?er any performance condi�ons have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash dona�ons are recognised on receipt. Other dona�ons are recognised once the charity has been no�fied of the dona�on, unless performance condi�ons require deferral of the amount. Income tax recoverable in rela�on to dona�ons received under Gi? Aid or deeds of covenant is recognised at the �me of the dona�on.

1.5 Expenditure

Expenditure is recognised once there is a legal or construc�ve obliga�on to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in seAlement, and the amount of the obliga�on can be measured reliably.

Expenditure is classified by ac�vity. The costs of each ac�vity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each ac�vity. Direct costs aAributable to a single ac�vity are allocated directly to that ac�vity. Shared costs which contribute to more than one ac�vity and support costs which are not aAributable to a single ac�vity are appor�oned between those ac�vi�es on a basis consistent with the use of resources. Central staff costs are allocated on the basis of �me spent, and deprecia�on charges are allocated on the por�on of the asset’s use.

Grants offered subject to condi�ons which have been met at the year end date are noted as a commitment but not accrued as expenditure.

THE LYC FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE PERIOD ENDED 31 JULY 2022

1 Accoun�ng policies

(Con�nued)

1.6 Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amor�sa�on and accumulated impairment losses.

Intangible assets acquired on business combina�ons are recognised separately from goodwill at the acquisi�on date where it is probable that the expected future economic benefits that are a�ributable to the asset will flow to the en�ty and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the en�ty.

Amor�sa�on is recognised so as to write off the cost or valua�on of assets less their residual values over their useful lives on the following bases:

Website Fully depreciated

1.7 Tangible fixed assets

Tangible fixed assets are ini�ally measured at cost and subsequently measured at cost or valua�on, net of deprecia�on and any impairment losses.

Deprecia�on is recognised so as to write off the cost or valua�on of assets less their residual values over their useful lives on the following bases:

Works of Arts Not depreciated

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial ac�vi�es.

1.8 Impairment of fixed assets

At each repor�ng end date, the charity reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indica�on that those assets have suffered an impairment loss. If any such indica�on exists, the recoverable amount of the asset is es�mated in order to determine the extent of the impairment loss (if any).

1.9 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short­term liquid investments with original maturi�es of three months or less, and bank overdra.s. Bank overdra.s are shown within borrowings in current liabili�es.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are ini�ally measured at transac�on price including transac�on costs and are subsequently carried at amor�sed cost using the effec�ve interest method unless the arrangement cons�tutes a financing transac�on, where the transac�on is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amor�sed.

THE LYC FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE PERIOD ENDED 31 JULY 2022

1 Accoun�ng policies

(Con�nued)

Basic financial liabili�es

Basic financial liabili�es, including creditors and bank loans are ini�ally recognised at transac�on price unless the arrangement cons�tutes a financing transac�on, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabili�es classified as payable within one year are not amor�sed.

Debt instruments are subsequently carried at amor�sed cost, using the effec�ve interest rate method.

Trade creditors are obliga�ons to pay for goods or services that have been acquired in the ordinary course of opera�ons from suppliers. Amounts payable are classified as current liabili�es if payment is due within one year or less. If not, they are presented as non­current liabili�es. Trade creditors are recognised ini�ally at transac�on price and subsequently measured at amor�sed cost using the effec�ve interest method.

Derecogni�on of financial liabili�es

Financial liabili�es are derecognised when the charity’s contractual obliga�ons expire or are discharged or cancelled.

The cost of any unused holiday en�tlement is recognised in the period in which the employee’s services are received.

Termina�on benefits are recognised immediately as an expense when the charity is demonstrably commi'ed to terminate the employment of an employee or to provide termina�on benefits.

2 Income from charitable ac�vi�es

	Unrestricted	Unrestricted
	funds	funds
	2022	2021
	£	£
Charitable income
Sale of goods	40,000	­
Other income	687	1,920
	40,687	1,920

THE LYC FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE PERIOD ENDED 31 JULY 2022

3 Expenditure on charitable ac#vi#es

		Total		Total
		2022		2021
		£		£
	Direct costs
	Charitable expenditure heading 2	1,000		2,000
	Sundry	95		94
	Storage rent & rates	1,928		8,544
	Exhibi�on, curator & administra�on services	4,755		2,319
	Carriage	574		584
		8,352		13,541
	Share of support and governance costs (see note 4)
	Support	320		432
	Governance	4,909		3,968
		13,581		17,941
	Analysis by fund
	Unrestricted funds	13,581		17,941
4	Support costs allocated to ac#vi#es
		Total		Total
		2022		2021
		£		£
	Computer consumables	320		244
	Travel & accommoda�on	­		188
	Governance	4,909		3,968
		2022		2021
	Governance costs comprise:	£		£
	Legal and professional	4,909		3,968
		4,909		3,968

5 Trustees

Curator and administra�on costs of £4,755 (2021: £2,319) were paid to two of the of the trustees.

THE LYC FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE PERIOD ENDED 31 JULY 2022

6	Employees
	The average monthly number of employees during the Period was:
		2022		2021
	Number		Number
	Total	­		­
	There were no employees whose annual remunera�on was more than £60,000.
7	Taxa$on
The charity is exempt from taxa�on on its ac�vi�es because all its income is applied for charitable purposes.
8	Intangible fxed assets
				Website
				£
	Cost
	At 1 August 2021 and 31 July 2022			3,000
Amor$sa$on and impairment
At 1 August 2021 and 31 July 2022				2,999
Carrying amount
At 31 July 2022				1
At 31 July 2021				1
9	Tangible fxed assets
			Works of Arts
				£
Cost
At 1 August 2021				13,601
	Other assets			15,000
At 31 July 2022				28,601
Carrying amount
At 31 July 2022				28,601
At 31 July 2021				13,601

THE LYC FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE PERIOD ENDED 31 JULY 2022

10 Creditors: amounts falling due within one year

Creditors: amounts falling due within one year
	2022	2021
	£	£
Other taxa�on and social security	325	325
Accruals and deferred income	7,858	6,908
	8,183	7,233

11 Unrestricted funds

The unrestricted funds of the charity comprise the unexpended balances of dona�ons and grants which are not subject to specific condi�ons by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.

	At 1	August	Incoming	Incoming	Resources	Resources	At 31 July 2022	At 31 July 2022
		2021	resources		expended
		£		£		£		£
General funds		57,868		40,687	(13,581)			84,974
Previous year:	At 1	August	Incoming		Resources		At 31 July 2021
		2020	resources		expended
		£		£		£		£
General funds		73,889		1,920	(17,941)			57,868

12 Related party transac1ons

There were no disclosable related party transac�ons during the Period (2021 ­ Nil).