Pallant
House
Gallery
Pallant House Gallery
Annual Report & Financial Statements
For the Year Ended 31 March 2022
Charity Registration No. 1102435
Company Registration No. 05045130 (England & Wales)
Pallant House Gallery
Report and financial Statements
Reference and administrative information
Company number
Country of incorporatior
05045130
United lfjngdorr
Charity numbei
Country of registration
1102435
England & Wales
Regislered office &
operation address
Pallani House Gallery
8-9 North Pallant
chh8818r
INe8t Su88ex P019 1TJ
Tru8teoB
Tru8tee8, who are d80 director8 under company law, who
8erved during the year and up to the date of this report were a8
follow8:
John D S Booth DL
John Ayton
Jane Week8
izabelh J Da8
Abiola
CIIT Clare Apd
Ruih S Butl8r
Adrian S Clark
Mahtab Hu88ain
Zachary R Leonwd
Charle8 Martin
Roger Mavty
Andrea Rosé OBE CMG
Jacqueline D Ru&*ll
The Rt Hon Lord Tyrie of Chithe8ter
Mark Wa8her
Apw)inted 25 Marth 2022
Chwr, until 25 March 2022
Ch&r, appointed on 25 March 2022
Deputy Chair
Company SeGretary
Appointed 26 Marth 2021
Gallery Director
&mon J Marti
Auditoi
Sayer Vincént LLP
Chartered Accountants and Statutory Auditor
Invicta House
108-114 Golden Lan8
London EC1 Y OTL
Bankers
Barclays Bank PLC
74-75 Ea* Street
Chthester
West Su88ex P019 1 HT
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Pallant House Gallery
Report and financial Statements
Contents
Reference and administrative information ................................................................
Chaifs statement...................-........................................................................................
Trustees, annual report...................................................................................................
Objectives & activities of the Charity.--.----.---.-----.-.--.-.-.-........-.-.-.-..-.-....
Our Mission and Vision.
Public benefil derived from our activilies.
Performance and achievements during the year.-.-----......-.................-.-.....-.-...........
Financial re¥iew.-.-.-.-...........-.-.-.-..--.-.-..--.--.-.-.--.--.-...........-..-....................-....-...14
Reserves policy and going concern..--..-.-.---..------.--.-.-...........-.-.-.....-.-.........14
Investment pollcy and obJectlves.-.--..------.---...--.--.-.-..-.-....-.-.-.-.-............15
Prlnclpal rlsks and un¢ertalntles_
.16
Structure, governance and managemenL_--.--------.-.....-....-.-.-.-..-.-.-.-......16
Statement of responslbllltles of Ihe trustees.---.-----.-.-.--.-.-....-..-.-.-.-......... 18
Auditor...-.-.-.-.....-....-.-.-.-.....-.-.-.-.-.--.-..-.---.--.....-.-.-......................................-.........19
Independent audIt0S report to the members of Pallant House Gallery..........20
Consolldaled statement of flnanclal actlvltle&.......................................................24
Consolidated balance sheet
.25
Consolidated statement of cash flows.....................................................................26
Notes to the Ilnanclal stalements..............................................................................27
Reference and admini8tratNe infom)ation Set out on page 2 fom18 part of thi8 report. The financial
Statement8 comply with current Statutory requioment8, the memorandum and article8 of
a88ociation, the requirements of a directors, report a8 requred under company law, and the
Staiement ol Recommended Practice- Accounting and Reporting by Chariti08.' SORP applicable
to chariti88 preparing their accoun18 in accordance with FRS 102.
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Pallant House Gallery
Report and financial Statements
Chair's statement
l am pleased to introduce our Tru8tees' Report and Financk Statement8 for 2021122.
Having joined the Board as Chair in March 2022 thi8 report ded8 alm08t entirely with the period
preceding my election undar the leadership of our preMou8 Ch&r, John Booth. John's Leader8hip
of the organisation over the past 8 years has been exemplary and l am Gonscious that in
succeeding him I have a hard acl to follow.
Of course John's leadership was Partlaty important during these past two years as the worfd
has grappled with the Covid-19 pandemic. It has been a difficuli time for the arts sector but the
Gallery ha8 emerged well a8 these account8 d8mon8trate. It 18 Worth remembering that a8 the
financial ye8r opened we were 8till in a lockdown situation wtth the Gallery closed to the public
until the middle of May 2021. The Gallery team have had lo respond to con&derable uncertainty
and difficulties in the Scheduling and mounting of international quality exhibitions and yel were
succe881ul in doing so. Our two mwn gatlery shows during the year which are de8cribed further in
this report, were extremely well received and well attended in the circum8tances.
The 8UPPOrt of our donor8, Patrons and Friend8 ha8 been 8trong and ab801ut8ty vital to our
8ucce88. During this year we have received 80m8 8xtraordinary donations. Ann and George
Dannatt w8r6 long tem 8UPPOrtar8 of th6 Gallery and during tha yèar tha Tru8t thèy creatèd during
their live8 wa8 wound up by 118 Trustees. Their gift of £850,000 during the year under review has
been followed by a final 9rf1 of £150,000 which will be reported in the next financial year; thi8
wonderful 8UPPOrt will be acknowledged within the Glery in due cour88. Three individud donor8
combined during the year to provide £1 million toward the purcha88 of No 7 North Pdlanl, the
hou88 adjacent to the Gallery. This purcha8e opens up the po8sikn.lity of a much mora axciling
future redeveloFynenl ol the enlarged 81te than would otherwi8e have been p088ibl8. We are
grateful to tha88 and all othèr donoT8 to thè Gallèry during the yaar.
Our Community Programme 18 ong of tho thing$ that truty mak98 tho Gallery different and the
pandemic made the vital work that we do p9rticulady drfficull. During thi8 financial year the
Programme ha8 really been able lo bounce back which ha8 been 80 important for its member8.
A8 we look to the luture, l am amEytiOU8 for the Gallery and excited io build on the 8ucc086 of John
Booth and the Tru8tee8 and of the staff team led by our Director, Simon Martin.
John Ayton
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Pallant House Gallery
Report and financial statement8
Trustees. annual report
The Truste88 present their r6p)rt and the audited financial statements for the year ended 31 March
2022.
Objectives & activities of the Charity
The Charity's objectwes are for the public benefit to promote and advance the education of the
public in, and io promote, the visual arts and history of art principally in ihe Chichester
administrative district and in particu. to maintain. Fxeserve, restore and fumish plant House in
the City of Chichester a8 a period hou88 within whh to exhibit work8 of art of hi8toric or public
interest for viewing by the public.
Our Mission and Vision
Our mi88ion 18 to share and 8timulate new thinknng on Briti8h art and to play a pivotal ro16 in tho
reative live8 01 the widest PO88ible audiencg
Our vi8ion is to be re¢ogni8ed a8 an international Gentre for Briti8h art from 1900 to now.
We a¢hieve this by observing the following wx prin¢iple8:
1. Makj'ng Modem Brit18h art relevant today by exploring cont6mporaryi hi8toric and
intgrnalional connection8. redre88ing imbalance8 in it8 hi8tory and filling gap8 in our
collection.
2. Putting our audience8 at the heart of what we do. 8triwng to understand their need8 and
motivation8. enabling Iwo-way conver8atKin8 and involwng them in our work.
3. Thinking ol the Gdlery a8 more than a Fthy8ical de8tination. expanding OUT audience reach
through digital, tsUtrh and regional, national and inlémationd partnerships.
4. Being a recogni8ed auihority on Modem British art and an eXarnp of be8t practice in all
a8pect8 of our work.
5. Creating and upholding a distinctpie brand for the Gallery that infom18 all activty.
6. Investing in our peot, culturé, assets and sy8tems and working to bécome financially and
environmentally sustainable and appropriately resourced.
Publ1¢ beneflt derlved from our actlvltles
The Trugtees of the Gallery have paid regard to the Charity Commi88ion'8 published guidance on
public benefil. They believe thai ihose who have acce88 to the visud arts derive real public benefit
from the experience through ihe expansion of their ideas and understanding,. through appreciatn,
leaming and participation. The Gallery Provides the opportunty for people to gain a better
understanding of the culturai and artist make up of our society and their personal response to
the culturd and artistic content of their lives.
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Pallant House Gallery
Trustees, report
Performance and achievements during the year
The Year at a Glance
27,4Cw) visitor8 to the permanent collections and temporary exhibrtwjns.
3,120 Friends of Pallant Hou86 Gall6ry and 121 Patron8.
8 temporary exhibition8 during the year, and a cornpte rediBplay of the permanent collection
acrosB 10 rooms.
418 artwork8 were acquired for the p8rmanent collection. including 83 new works by 48 lemale
artists, bringing the gerKler ratio up to 24% women artist8. and 9 new acqui8ition8 by Black and
elhniG minority artffjt8.
800 lunche8 di8tributed io the elderty and vulnerale from the kitchen8 of the Pallant Caf8 during
lockdown.
38 new work8 commi88ionod for the Modd Art Gallery in re8pon8e to Cod-19 pandemic.
35 work8 loaned to 12 indrvidual venue8. including two internationd venue8.
78 collection artwork8 con8erved and remounted.
1 Apollo magazine 'Acqui8ition of the Year, award for the 175 work8 in the MJ Long collection
14 re80urce8 relea8ed online for home-h0o1ing famlie8 downloaded over 800 time8.
2828 individua18 attended our new wogramme of digital ev8nt8.
New 209b di8count introduced for NHS Keyworker8.
8800 Gallery mag82ine8 dk8tributed and Sold by the Gallery.
130 piece8 of pre88 coverage retIng to the Gallery and wogramS, reaching a circulation of
1,627,788,420.
17136 growth in Instagram audien*
A 6 tonne C02 reduction in the Gallery'8 enrOnMental impgct.
£3.5m in gift8, subscriplion8 and pledge8 from individua18. tru8t and foundation& corporates and
Statutory lunding
Over 4000 hours given by 192 volunteer Gallery A88iStant&
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Pallant House Gallery
Trustees, report
CapStal Project
With the ongoing pandem the wider Caiital Project remained on hold during the financial year
beyond the uFgrading of the New Wing's lighting thank8 to a grant from Arts Council (England).
Further preparatory workwa8 completed forfuture plan8forthe lighting and environm8ntd contro18
in the historic house.
Thanks to the generosity of a small number of lor donors we were able to purchase No 7 North
Pallant. When in the 2022123 year we conwder a new brief for the Capital Project taknng into
accounl the new global economic situalion this purchase will allow us to con8Kler a considerably
wider Tange of option8 for the d8velopm&nt which will en8ure it8 viability.
Dlgltal Tran¥formatlon Plan
During the financial year we engaged with Unil 1, a digitd con8ultancyi to develop a new digital
strategy lor the organisation which considered knth back office limitations and ambitions for
ustomer facing digrtal transformation. In addition the recruitment of 8taff with specific knowledge
of the production and promotion of digital content lI)Wed us to signiffirAntly increa$8 our digital
footprint and reach.
Trustees receNed the draft 2 year Digital Strategy al the last me8ting of the financial year for
comment and with minor rewision8 thi8 Strategy has now been adopted and will be implemented
in the coming years.
Equallty & Dlvorslty Aellon Plan
The Gollery'8 Equality & Divor8ity AGtion Plan cover8 all a8PeCt8 Of the Gallery'8 governan¢o,
employment, operation8 and programme8. It accompanies the Forward Plan a8 one ol our key
8tralegy documents and 18 updated annualty and reviewed by the Board. A8 an Art8 Council
National Portfolio Organi8ation INPOI, our programming contribute8 to the Creative Ca8e for
Diversity and we are committed to initkqtive8 that increase inclu8ion and diver8ity acr088 all a8P8Ct8
of the Gallery'8 operation8. An Anli-Racism 8tatement was published on our web8lte
www.
in June 2020 and our Anti-Raci8m Action Plan wa8 publi8hed in November
2020.
Antl Ra¢l$m Plan
The staff and Tru8tee8 of Pallant House Gallery 8tand in solidarity with the Black community and
with all who oppose raci8m and discrimination. Recent events have encouraged us to reflect on
our role as a cuhural organisation and how we can better represent modern Britain. The Gallery'8
formal Anti-Raci8m Flan wa8 agreed by the Board of Trustee8 in November 2020 and 18 puUished
on our websitethorp.
Pallani House Gallery eMi818 lo explore new per8pectNes on 8ritl8h art from 1900 to now. It is our
role to expand, question and explore the parameler8 that define Modern Briti8h art so that our
exhibitions and programmes are alway8 relevant. rigorou8 and inclusNe.
W8 acknowledge that we ha much work to do to ensure our programme and collections. a8 well
a8 our 8tafi and board, reflect the diversity of the 80ciety in which we live. We are committed to
making Pallant House Gallery a safe. welcoming and inspiring place for everyone. The Gallery
ritically reviews its pemianent Gollection of British art from the perspectNe of diversity, and this
has reinforced our commitment lo increawng the dNersity of the collection8. and how ethnic
diversity 18 recorded on our coll8CtM)ns databa8e systems to facilitat8fvture planning of collection8
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Pallant House Gallery
Trustees, report
display8. Work8 by Black artist8 are PrTItI8d for con8ervation and mounting to en8ure that they
are realty to go on dISpY in future collections di8plays.
A °Collectlon ol Collectlons.
202112 saw two major Pdlant House Gallery exhibitions drawn entirety from our collection, 'Degas
to Flca880: Intemational Modem Ma8ter8' and'Hockneyto Himid: 60 Years of Biiti8h Printmakn'ng,.
Both 8howcas8d the breadth of arti8ts. movements and medium8 Within the collection, including
the Gdlery's not in8ignrficant holding of int6rnationd arti8t8.
W& marked Black Hi8tory Month with the announcement of OUT acqui8itK)n oftwo WOTk8 by Ronald
Moody (1900-1984), one of the most distinguished Caribbean-born sculptors and the first
recorded Black Brit18h art16t, having arrived from jaMaa in 1923. The sculpture, The Warrior
{1974), was the lirst work by the artisl to come up at auction in thi8 country, at an historic 8ale at
Christie'8 and was acquired with supwrt from Art Fund, V&A Purchase Fund, and private donors.
The Gallery al80 received a second 8culpture by Ronald Moody gifted by the Ronald Moody Tru8t,
a powerful portrart bust of the 8culptor'8 brother Dr Harold Moody (1948).
On a larger Scale, the acquisition 01175 work8 of Briti8h Pop and figurativo art by the lik88 of RB
Kitaj? Richard Hamilton, Patrick Caulfi6ld and Eduardo Paolozzi from the é8tat8 of MJ Long 18 an
example ol how important long-lerm relation8hip8 are to the Glery. MJ Long and her husband,
Colin St John Wilson were the architect8 of the new wing and together ih8y fomied one ol the
m08t 8ignrficant collection8 of wst-war Brilish art. reflecting th8ir clo88 lriend8hip8 with th8
leading artist8 of the period. The 8ignilicance of the acqui81tion w88 recogni88d with the Apollo
Magazine Award for Acquisition of the Year 2021.
With the creation of the 2021 Model Art Galleryi united with the 1934 Gallery and tha Model
Galléry 2000, our model gallèrié8 now téll thè Story of thè last 80 yéar8 of Briti8h art. Designéd by
Wright and Wright Ar¢hitect8 and filled with over 30 original miniature artwork8 by the b88t of the
conlemporary 8rit18h art world, the 2021 Model Art Glery include8 a miniature 8pin-pwnting by
Damien Hir81, a blackboard by Tacita Dean. a 8tairca8e by Rachel Whiteread and ceramic8 by
Magdalene Odundo, among8t many oth8r&
Exhlbltlons 2021-22
Dega8 lo Pica880'. International Modem Ma8ter8
Novemb8r 2020- June 2021
Thi8 exhibition was drawn entirety from the Gallery'8 collectKJn. which unknown to many, includes
many significant intemational art18t& Celebrating over 100 year8 of international modern art, on
showwere major pwnting8, drawing8 and print8 by arti8ts from the 1870s to the 19708- from th&
French Impre8sionist8 to American Abstract Expre8sionism and including great artists such as
Manet, Cézanne, Derain, Aca8so, Bonnard, Klee, Valadon - and our newly conserved Édouard
Vuillard. In some case4 such as Emil Filla, Gino Severini and Jean Metzinger, the artists are well-
represented in the great modern art museums of Europe and the USA but we are one of the only
UK mu8eum8 to have iheir wor*£.
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Trustees, report
Richard Hamilton: Re8pective
Novembar 2020- June 2021
Father of British Pop art, Richard Hamilton (1922-2011) wa8 one of the mst influ8ntial artist8 of
the 20th century. This exhibrtion brought together the frJll-range of work by Hamilton in our
collection. It included intemationdly important works including Hers is a Lush Situation (1958)
and Swingeing London .67 (1968) alongside early studies from the 195Os and later works from
the 19708 onwards that reveal hi8 engagement with new digital technology.
Ben Nicholson.. From the Studio
June - October 2021
This exhibition gave audBnc88 an intimate lookat the everyday obiectsthat in8pired Ben Nicho180n
(1894-1982) and 8howed how he tran8fom)ed them into extraordinary 8xperimnts in abstract
art.
It brought together for the first time Nh0180n'8 painting& relief8, print8 and drawing8 along8ide
hi8 rarely seen per8ond p088e88ion8, from pattemed jug8 and cut gla88 goble18to hi8 8tudio toolB,
revealing how the artist's stye developed, from hi8 early traditional tabbtop still lif98 to later
ab8tract work8,
The exhibition 8180 traced Nichol8on'8 artistic and per80nal influenGe8 and explored hi8 tim8 with
Winifred Nicholson and Barbara Hepworth, 88 well as his encounter8 With other great Moderni8t8,
Pablo Pica880 and Piet Mondrian.
Ma81erpiece8 in Miniature.. The 2021 Model Art Gallery
June 2021 - April 2022
In 2020, we a8ked Wright and Wright Architect8 to dewgn a model art gallery to house artwork8
commi88ioned e8pecially from over 30 exciting conlemporary Bri118h art18ts, including Rachel
Whr(eread, Edmund de Waal, John Akomfrah. Tacila Dean and Magdalene Odundo.
The 2021 Model Art Gallery wa8 di8played along8ide two earlier model gallerie8 - The Thirty Four
Gallery and The Model Gallery 2000, housing work by artists from Augu8tU8 John, Vane88a Bell
and Paul Nash to Peter Blake and Richard Hamilton. The model art galleri85 are a tim8 capsule of
British art from the 19308 until today ond provide a fa8cinating insight into the evolution of 8tyle8
and influence8 acro88 the decade8.
Hockney to Himid: 60 Years of Brit18h Printmaking
November 2021- April 2022
This extraordinary exhibition, from the Gallery's collectKJn. spanned the last 60 years of British art
with over 100 prints by go drfferent ortists. including works by Edward Bawden, Peter Blake,
Tracey Emin, Barbara Hepworth. Henry Moorn. Chri8 Ofili. Grayson Perry and Rachel Whiteread,
among8t others.
Celebrating ihe inventivenes8 and originality of printnthing, the rich variety of works 8howcased
drfferent printmaking lechnN4ue& with abstract 8creenprints by Bridget Riley and Terry Frost
alongside figurative etchings by Luckan Freud. a delicate woodcut by Rebec&2 Salter or a
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Pallant House Gallery
Trustees, report
lithograph by Antony Gormley. Covering the last 6 decades year8, it gave a fascinating snap shot
of the evolution of British wntmakin
Print Room Exhibitions
Access to our Print Room shows is a key part of our freeffer, offering something of high-quality
that is OFen and accessible to all.
All Souls: The Outside In Co-Commi$8ion 2020
May- July 2021
The output of the Gailery's Communty Programme's bi-annual co-commission with Outside In
wa$ exhibited during this period. See below under Communty Tryogramme.
St Ive8.' ConneGting CirGIo8
July - November 2021
In the mid-tsventieth contury the harbour town of St Ive$ in Comwall became a regional centr8 for
modem art, Barbara Hepworth and Ben Nicho180n moved there and were later joined by other8
including William Scott, Patrick Heron, Wilhelmina 8am8-Graham. Terry Fr08t and Denni8
Mitchell. The arti8tic communty that evolved during this period Saw a network of p8r80nal and
creative relation8hip8 develop that were a8 Vital a8 they were fractlOU8. Along8id8 print4 drawing8
and 8culpture, this exhibition 8180 pre8entod ceramiG8 by potter8 Bernard Leach and Janet Leach.
Chri8tma8 Greeting8 by Modem British Art18t8
Novembar 2021- January 2022
This le8tiv6 Print Room di8pLqy featured over 100 original Christma8 card8 dating from acr088 the
20th Gentury. It inGluded cards made by celebrated British arti¥t8 including Edward Bawden,
Gbnn Brown, Barnott Freedman. Mark Hoarld, Nyel Hendgr80n, Enid Marx, Ben Nicho180n and
Gtyn Philpol.
Old Ma8ter8, Modern Ma8ter8: Drawing8 From The Hu88ey 8eque8t
January-Apr 2022
Gave audience8 a chance to 8ee rarely exhikyted works on paper from Waher Hu88ey's founding
collection including the old88t piece in our archive. Renaissance art18t Giulio Romano's wwerful
drawing of the head of an eagle.
Rev'd Walter Hu88ey believed that 80 long as the quality is right. there 18 no incongruity in 8etting
the art of drfferent periods side-by-side and his extraordinary collection of drawings reflects that,
with works from the Renaissance to the Rococo, represented by Jean Antoine Watteau to 20th
Century works by Henry Moore, John Minton. and Graham Sutherland.
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Publlc Programmes
Our wide range of creative OPWrtUnrf(9 for p80p18 of all age8 and backgrounds help8 them to
discover how art can have a place in their lives. Our Public Programme aims to ensure ev8ryon8
f8e18 Welcome at the Gallery and our activitle8 8how the beneffits ol leading a cr8ativ8 lif8 whi18t
providing opportunrties to do this. Through delivering activrties (wogrammes for all ages) the aim
18 to increase number and dNersity of Yisrtors to better refiect local, region and national
populalion8.
Model Art Gallery of the Future
W8 invited local School8 to visit the model galle8 and gave each pupil a canvas measuring 1 Ocm
x 1 Ocm and the opwrtunity to create their own miniature work8 of art in re8ponse to work8 that
they encountered on their w8it.
13 local schoo18 took part 12 Collem 6 Secondary and 5 Primary) and 333 works were
submitt8d. These went on 8how in a deduted 6xhibrlion called The Mod81 Art Gallery of the
Fulufe in April 2022.
Our normally active learning programme was Severely impacted by the pandgmiG but we
reopened for Self-guided vi8118 in September and, de8Plte Covid related canGellalions, 882
8tuden18 (Key Stage 1-4) from 34 8choo18 and 354 8tudents (Post 16) from 22 81Xth form8
and univer8ltle8 attondèd.
Our Public Programm98 team focu88ed on relyjilding our Fyogramme in 2022 by 8urveying
teacher8 and h08ting a Teacher8, Private View for our wntsr oxhibition8.
The Pallant Art8 Award Club
Art8 Award 18 a range of nationally-recogni8ed qualiftIOn8 that 8UPPOrt8 anyone aged up to 25
to grow a8 an art18t and art leader. It in8pires them to connect with the wider art world through
taking on challenge8 in an art fomi. The Gallery h08ted a cohort of participant8 through their
Di8cover, Explore and Bronze certificate8.
Community Programme
Leading a creative life ha8 tremendoudy positive benefft& Our Communty Programme provide8
close to 200 people who have a range of supwrt needs with meaninglul, long-term
opportunrties to be creatNè.
Sustaining our Community Programme through the pandemic was a priority for the Gallery in
2021-22 and this waB achieved through online workshops during lockdown, mowng to outdoor
workshops over the summer as life cautiously retumed to normd. Participants were back in the
Gallery for group sessions from August. Their work was showcased in two Communty
Programme Exhibitions (Summer and Winter), the proceeds from which went back into
supporting the programme.
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All Souls: The Outslde In Co-commlsslon 2020
The Gallery's trm-annual co-commiswon with Outside In. whh had been due to 8xhibr(ed at the
Gallery in Autumn 2020. wa8 Wstponed due to the pandamic. However, an open cdl for entri88
took place in October 2020, with entrants re8ponding to the theme of 8Plritudity and in particular
the work of Madge Gill (a widely celebrated self-taught artist known for the thousands of intricate,
spiritual ink drawings she produced during her lifetime). 52 submissions were received from the
UK and abroad. One ofthe Gallery's Communty Program participanls, Julia Oaks, was selected
by the panel. Sh8 receNed a £5,000 tlsary to undertake th8 commi88ion and her work8 wa8
displayed in the Print Room, along8ida thote of Madge Gill, when the Gallery ra-opened in May
2021.
Buildings & facilities
Arts Councll Small Capltsl Grant
During 2020121 we worked with Wright & Wrighi and Max Fordham on improving light-levels and
lighting in the new wing, and on pLgn8 to overhaul environmental contro18 and imyoving UV
control4 blind8 and light-leve18 in the historic hou88.
In re8pon8e to the pandemic, the Arts Council extended the Smdl Capital grant deadline by 12
month8 to 31 March 2022, dlowing u8 to proceed with th8 propo88d work8 in 2021122.
ststement of Slgnlflcance & Conservatlon Management Plan
During 2020-21 we worked with our Heritage Con$ultant8 Alon Baxter and A88ociate8 on the
crealion of a Siatement of Significance and Con88tvation Management Plan for Pdlant Hou88
Gallery, which is due to be completed in the next financial year and which will be used to plan the
future care, conservation and interpretation of the distinctive architecture on the 81te including a
Grada 1 listed building.
Commerclal actlvltl•s
Pallant Café & Restaurant
The catering facilty 18 operaled a8 a franchi89 by the Su88ex Bar and Food Company, with a rent
agreement providing the Gdlery with rent linked to tumover. In 2021-22 thi8 amounted to
£24,049.
Pallant Bookshop
The Book8hop is an independent franchiqe operated try Nicholas and Caroline Higbee, who are
stakeholders within the Gallery. and work c108ely in parallel with the Glery,$ programme and
exhibition8. The Bookshop Director srts on the Gallery'8 Collections and Exhibition8 Advi80ry
Group.
The Bookshop is the primary point of sal88 for the Gallery'8 publication8, P)stcards, collection
prints and other merchandise ba8ed on the collections and exhibition. In addition, the Pallant
Bookshop is a leading specialist bookshop for Modem Art Brttain art and design, with extensNe
stock of both new publicatnS and eXhibitn catalogues, rare books and first editions, artist-
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illustrated and limited-edition print& The Bookshop also stock8 ranges for children and young
peoplei gift ranges (from mugs to tea-towels)I greetings cards and wstcards.
The Bookshop contributes a rental income and pays a ComMi10n to the Gallery on its products.
Fundraising
Pallant House Gallery aclively seeks philanthrop 8UPPOrt from a wide variety of sources, securing
restricted and unrestricted income from 1ndNidu1 companies, trusts and foundations and
Statutory bodie8. All fundraising activity is carried out in hou8e and no agenci88 are engaged to
fundrai8e on behall of the Gallery.
During 2021122, we received almost £3.5m ift grft8, pledgès and Friends or Patron8 8ub8CTiPtion8
from individuals, trust and foundations, corporates and statuloryfundingi particularly from Art Fund,
ACE and NLHF.
Fundrai8ing activities that took placa wère managad and r88ourc6d by Glary amploy686,' OUt8ida
fundraisers were not Used. They were compliant with appropriate codes and there have been no
complain18 about them. We generally focus on weatihy indNidua18, tfU8t8 and foundation8 and
statutory bodies a8 a 80urce of lund& leaving member8 of the public a free choic8 whether lo
become a Friend or donate additional when buying a ticket. Con8equently, it 18 not nece88ary to
have meaBure8 that 8pecrficalty protect vulnerable poople from our fundraisingi while care 18 given
to en8uring the 8alety of all potential donor8.
Frl•nds & P•tron$
The Friend$ of Pallant Hous¢ Gailery a knowledgeable and onthu$ia8ti¢ ¢hampion8 of the
Gallery, and their financial 8LlPPOrt 18 the lifeblood of the Gallery, There are several diflerent
member8hip packAg88 available and b8nefit8 include free admi88ion, exclu8ive acce88 to Friend8
preview8, a di8count on event ticket8 and a 8ub8cription to the tw yearty Gallery magazine.
Our Palrong programme provkJo8 unKiug opportunit$ for individual 8UPPQrter$ who give at 8
more 8ub8tantial level to have an in-depth engagement wfth the fvll programme of our activitie8,
from private exhibr(ion lour8 and talks. to 8tudio vi81t8, dinner& inlemational tours and visit8 to
private collection8. Each event 18 SUPPOrted by a Senior Management team memb8r and Tru8te88
to provide an intimate and invaluable insight into the worknngs of the Gallery
Hurnan Resources
The Gallery recogni8es that it8 Staff and volunteers are its greatest re80urce and require
inveslmenl to gth ihe be* oulcomes. This will be achieved ihrough investing in HR, Iraining and
development as well as reviewing Intern CommunlI0n8. We couldn't exist without our
dedicated team of almost 300 Volunteers who donated over 4,000 hours of their time in 2021.
We're most grateful for their 3upport.
Page 13of49
Pallant House Gallery
Trustees, report
Financial review
The results for the yearare Set out in the Statement of Financial Activities and accompanying notes
later in this report.
The 8tatement shows that a surplu8 of almost £3.Om (2020121 . £5.8m) was achieved during the
year. Thi8 comwised exceptional or restricted application item8 in both yoars, with the und8rlying
operating performance remaining around break even in continuing challenging times. This
summary shows that the undedying operating outcome is conwderably more fragile than indicated
by the headline8 in ihe Siatemnt of Financial Activities.
2021122
£000
426
1.013
574
284
128
850
(304)
2020121
£000
1,913
Exceptional it8rn8
Iner8a¥e in inve8trn$nt valu8
Donat$ lor purch&sè of aac•nt Fw*rty
Gifted athork
CaFital grants (mainty ACE)
Cuttural Recovery and furlou ants
Legacy grfl from anoth&r ¢harty
D&w6cAtion
4,107
(246)
2,971
6,774
Und8rtying oprathng
(23)
Reported 8urplu8
2,947
6,822
Thi$ year, wo $aw a d¢finile boun¢¢-ba¢k from the oxt8nded poriod8 in lockdown during 2020-
21. Note 3 to the aG¢oun18 8how8 that eamed charrtable inGome more than doublgd to £594k.
In particular, general admiswon income to our exhibilion8 wa8 higher than the period8 recently
leading up to lockdown, although we only expect to See the 8ame income recovery lor our ticketed
event8 during thi8 coming year.
At the time, our expenditure leve18 have 8imilady increased with the retum to frjll operating
and overdl increased Irom £1.6m lo £1.9m. The control of expenditure will become increasingty
challenging during the next few years, with the cost of living rises aflecling our staff putting salary
levels under pressure, with energy ri8e$ another 8ignifrAnl factor.
Hi$toriG8IIyi the Gallery has relied on Investnnt income and wytol growth from it8 endowment
fund. Returns conlinue to disappoint in an uncertain investment environmenL with income thi8
year being £362k compared to pre-covid leve18 of around £600k Whilst the8e account8 8how
increa8es in unredised investment capital values, thi8 has yet to make good fully the fall we saw
with the onset of the pandemic.
Reserves policy and going concern
Our reserves are set out in the accounts within the balance sheet and n more detail within note
20.
The trustees have a reserves policy designed to ensure that the Gallery has adequate reserves to
carry out it8 charf(able objects including maintaining the a88ets entrusted to rt.
Page 14of49
Pallant House Gallery
Trustees, report
The numerous restricted funds are listed later in these account& Each fund relate8 to a 88parately
identrfiable activty that has attracted its own funding from various donors on terms generally that
their support is to be applied only to that project. Nomwlly the Gallery has agreed to fund the
balance from its wider re80urce8to ensure a Successfvl outco. These projects are u8ually short
term, typicdly completed within a year. and taken together represent the e88ence of the Gallery'8
cor8 operation.
Designated thJnd8 were created htstorically by the provision to the charty of the Gdlery building,
along with funds held for related contingencies and the collection of works of art donated or
purchased from donations for display in the Glery. These designated funds are not liquid.
There are four endowment funds that have varwng term4 all e8tabli8hed with the overarching
objective of holding inVestnntS to provide income to supwrt the Gallery's core operation. In the
case of at least one fund, this was the stipulation of the donor and in the remainder, it 18 the policy
of the Trustee8.
Tru8tee8 have again reviewed the reserve8 wlicy during the year. which was la8t amended during
2017118, and believe it to remain appropriate. Thi8 18 a8 follow8:.
The Gdlèry should hold cash bdance8 in unr88trad fund8, of at18a81 £200,000 or, if
greater, the Ga8h funding projected to be required for rt8 activities for the lollowing two
month8. Thi8 is currentty aGhieved through holding liquid acGount8 Wlthin Gash and
inve81ment8.
The endowment fund of £300.000 provided by the FrndS in 2018119 Should only be
held in readily reali8ae investm6nt8 80 that it acts a8 a 88cond layèr of re88rve8 rf raquired
to meet unexpected adver8e circum8tance&
The other endowment fund8 should Gontinue to include in exce88 of £500,000 of rgadily
reali8able inve8tmen18 that could be 801d a8 a third layer of re8erve& whi18t olherwi8e
continuing to provide incom8 for the core operation.
This policy wa8 mei during the cour8e of 2021122 and up to the date of 8igning thi8 report. It
continue8 to be reviewed annually and the Tru8tee8 have re8olved that it Should continue in force
for a further year.
At the tima of compiling thi8 report, the overarching a88umpth?n 18 that there will ba an operating
deficit of the order of £1 Ook in each of th8 next two yeaT4 both subject to a 8ignificanlly uncertain
climate for fundraising. If these deficit$ transpire, then they Gan be mel by the cash r8source8 in
place. Con88quentty, the Trustee8 conclude that there are not any matenal uncertainti88 at¥)ut
the Gailery's abilily to remain a going concern in ihe foie8eeable future.
Investment policy and objectives
Under it8 Article8, the Gallery ha8 the power to inve8t fund8 in the furtherance of its charitable
objective8.
The Gallery's endowment fund8 are held for the long tem) to generate income, required to meet
around a third or more of the continuing cost base. The trustees, investment policy has hitherto
been to invest in a funds promoted by M&G Investments speGiffiGdly for charities ft)Gussing on
high yielding UK equf(ies in order lo make thal required level of income. accepling a higher level
of risk to capital accordingty.
In Augu8t 2020, the Finance & Inve8tment Committee undertook a periodic tendering proc88S to
rea88ess the investment policy and to select the fund manager that was considered would provide
Page 15of49
Pallant House Gallery
Trustees, report
the best return. In doing this, the Commrltee considered it mre prudent to move away from an
income-driven, short-term approach and instead adopt a total return approach that would involve
utilising capital growth. Following the tendering process, Sarasin & Partners were appointed as
the inve8tment advi8er8 and the investments that were within M&G have been moved gradually
over to a fund managed by Sarasin 8ub8equentty.
Principal risks and uncertaintie$
The trustees have a duty to identify and review the risks to which the Gdlery is exp088d and to
en8ure appropriate controls ara in place to provwja reasonats a88uranca again81 fraud and 8rror.
The tru8t8e8 operate an Audit and Ri8k CommTttee that me&t8 every quarter and a8 part of Tl8
remit, review the "living. Risk Register. This contains the principal risks that the trustees and th8
88nior management team have identilied and the Corr4nittee 8eek8 to ensure that adequate step8
are being taken to mitvJate and minimize them.
As regards building and contents, Ihe ri8k of damage due to fire is controlled by an exten8ive fire
detection and alarm 8y8tem, whh 18 mnitored 2417 and 88rviced annually. De8ignated member8
of Gallery staff are trained in what to do in the event of a fire. A team of Fire Mar8ha118 and a Duty
Manager are named on a list at reception and ar6 r68P)n8lb for tha safe and afficient evacuation
of the gallerie8 and communicating and liai8ing wrth the alarm monitoring company and emergency
88Mce8. An Emergency Salvage Priority list 18 updated regularly and includ88 work8 from the
Gallery'8 collection and work8 on loan and their bcation. The impact of any1088 would a180 be
miligaled through exten8Ne in8urance cover.
The Finance and Inve8lm8nt Commtttee meet8 every quarter to review the current and projected
financial po8ilion of the Galleryi 80 that timely corrective action can ba in81igatad to minimi88 tha
impact. During Lqsl year, it8 work was Glearly cenlred around financial planning in response to
Covi&19 and 18 now focu88ed on 8U8twnability and rewlience in the 8ub8equent period and back
onto the Capital Project.
Slructurei governance and management
Logal status of tho Gallery
Pallant Hou8e Gallery is a charitable company limited by guarantee, incorporated in England and
Waie8 on 18 February 2004 and registered as a charity in England and Wales on 2 March 2004.
The charrtable objed8 and powers of the compony are 8et out in it¥ artiGle8 of altIOn.
The trustees, who are al¥0 the directors for the purpose of company law, and who served during
the year are li8ted in the 'Reference and administratNe inft)rm8tion' 8ection at the beginning of thi8
report.
None of the twstee8 has any beneficial interest in the charitable company. All of the tru8tee8 are
members of the charilable company and guarantee to contribvte £1 in the event of a winding up.
Appointment of trusteos
Trustees are proactively selected and appointed to en8uTe there is a broad range of relevant 8ki118
and experience represented across the trustee board. Chichester District Council s0 has the
right to appoint and remove one trustee. Trustee recruitment take place through targeted
approaches to IndNiduS, and via open advertising and inleNiew. agreed by the nomination
Page 16of49
Pallant House Gallery
Trustees, report
committee to PO8se8s skills and experience that would further 8trengthen the board. A tru8tee
board sknlls matrix has been reviewed to ensure a Suitable balance of Skills, experience and trustee
diversily.
Trustee Inductlon and tralnlng
The company secretary provides or arrang88 exlemal trustee induction training to each newly
appointed trustee. They receNe copi88 of the article8 of association, the last three trustee
meeting8 minute8, annud financial 8tatement8 and a copy of the Charity Commi88ion's The
e88ential trustee: what you need to know, what you need to do {CC3) along with copies of other
Gallery literature, the magazine and What's On leallet.
The trustees are responsible for the overall govemance of the charrty. They delegate all day-to-
day re8ponsibililie8 for running the organisation to the Director, Simon Martin. A Finance &
Investment Committee, Audit & Risk Commtttee and Nominations Committee have been
e8tabli8hed to ensure that the tru8te88' govemanc8 respon8ibiliti88 are fijlfilled. All tru8te88 give
their time voluntarily and receiv8 no ben6ffit8 from the charty. Any 8xp8n888 reclaimed from the
¢harity are Bel out in note 8 to tho accounts
Remuneratlon pollcy for key management personnel
Remuneration leve18 for key management pgr80nnel 18 approved by the Finance & Inve8tment
committee and the tru8tee bowd lake8 re8wnwbilty for the appointment and performance
management of the Director.
The Senior Pay di8c108ur88 include the Director and 88nior mmb8r8 of th818ader8hip team.
Equallty and DSv•rslty
Tho Gallery 18 ¢ommitted to aquality and dNer8ty. Staff and tru8t688 have und6rgono appropriate
training and there are written policie8 in place which are mentioned by the Director ol thg Gallery
and the Iru8tee8. A new Equality Action Han wa8 formulated in Docembor 2017 and188t updated
in February 2020.
Related p•rtles and relotlonshlps wlth other organlsations
Prior lo the merger on 18t April 2018. the Gdlery enjoyed a close relationship with the Friend8 of
Pallant House, wh08e objective8 were financial and other Support for the Gallery. The activity of
the Friends of Pallant House 18 now undertaken directty by the Gallery.
Until 31 March 2020, a trading sub5idiaryi Pallant House Gallery Services Limited, carried on
ommercial actNltieg related to the Glery and received income from the restaurant and from the
shop franchise. After ihat point, this was carried on within the parent Gallery company. There 18
a180 a dormant 8ub8idw, Pallant Hou8e Enterpri8e8 Limited, with an historic involvement in
collection of 8ubscription8 from Fri8nd&
Funds held a$ ¢ustodian trustse on behalf of others
The charty does not hold frJnds as custodian trustee on behaw of others.
Page 17 of49
Pallant House Gallery
Trustees, report
Statement of responsibilities of the trustees
The tru8tee8 (who ara also directors of Pallant Hou8e Gdlery for the purp08e8 of company law)
are responsible for preparing the trustees, annual report and the financrdl statements in
accordance with applicable law and Unrted Kingdom Accounting Standards (United Kingdom
Generdly Accepted Accounting Practice).
Company law requires the trustees to prepare finanGial statements for eaGh financial year which
give a true and fwr view of the state of affairs of the charitable company and group and ol the
incoming resources and application of re8ource& including the income and expenditure, of the
charitable company or group for that period. In preparing these financial statement8, the trustee8
are required to:
Select 8uitable accounting Fx>licie8 and then apply them ¢on81Stently
Ob8erve the thod8 and principle8 in the Charitie8 SORP
Make judgement8 and e8timat88 thal are rea80nable and prudent
State whether applicable UK Accounting Standards and StatennIS of recommend8d
practice have been followed. Subject to any material departures disc108ed and explained
in the financid 8talement8
Prepare the financial 81atemant8 on the going concern ba818 unl888 it 18 inappropriate to
pre8ume that th6 charrty will continu6 in operation
Th6 trusteas are r68pon8ible for keeping adèquate accounting records that di8c1088 wrféh
reatsonable accuracy al any time the financial p081tion of the charitable company and enable them
to ensure that ihe financiai ateMentS compty with the Compani88 Act 2006. They ar8 a180
re8pon8ible lor safeguarding ihe a88et8 of the charitsble company and group and hence for taking
reasonable 8tep8 for the preventi)n and detection of fraud and other irregularitle8.
In 80 far a8 ihe tru8tee8 are aware:
There 18 no relevant audit inf0m)atn of which the charita8 company'8 auditor 18 unaware
The tru8tee8 have taken all stéps that they ought to havè takèn to make thèm88lvé8 awarè
of any relevant audrt information and to e8tabli¥h that the audrtor 18 aware of that
infomwtion
The tru8tee8 are re¥pon8ible for the mointenance and integrity of the corporate and financial
information included on the charilable company's website. Legi818lion in the United Kingdom
governing the preparation and di88emination of financial 8tatement8 may differ from legislation in
other jurisdictions.
Members of the charity guarantee to contribute an amunt not exceeding £10 to the asset8 of the
company in the event of winding up. The total number of Such guarantees at 31 March 2022 wa8
14 (2021..12). The trustees are members of the charity but this entitles them only lo voting rights.
The trustees have no beneficial interest in the tharrty.
Page 18of49
Pallant House Gallery
Trustees, report
Auditor
Appointrnent
Sayer Vincent LLP was re-appointed as the charitable company's auditor during the year and ha8
expressed its willingness to continue in that capacity.
Dlsclosure of Information to auditor
Each of the trustees ha8 Confirnd that there is no infomwtion of which they are aware which is
relevant lo the audit, but whh has not been made available to the auditor. They have further
conlirm8d that they have taken ap[pIlate 8tep8 to identify such relevant information and to
e8tabli8h that the audttOT 18 aware of 8uch information.
The tru8t888' annual report ha8 been prepared in accordance with the Special provi8ion8
applicable lo Gompanie8 8ubJ'eGt to tho small Gompani98' regimo.
The trustees, annual report w•s approved by the trustees on 23, September 2022 and signed on their
behalf by..
Elizabeth Oavis
Trustee & Com
an
Secreta
Page 19of49
Pallant House Gallery
Annual report and financial statements
Independent auditof s report to the members of Pallant House Gallery
Opinion
We have audiled the financwl statentS of Plant House Glery (the 'parent charitable
company,) and its 8ubwdiary (the 'group') for the year ended 31 March 2022 which comprise the
con801idated Statement of financrdl actiwtie& the group charitabla company balance 8he8t, the
con801idated statement of ca8h flow8 and the note8 to the financial 8tatement8, including a
summary of significant accounting policies. The financial rewrting framèwork that ha8 been
applied in their preparation is applicable law and United lQngdom Accounting Standards, including
FRS 102 The Financial Reporting Standard applicable An the UK and Republic ol Iieland (United
Kingdom Generally Accepted Accounting Practice).
In our opinion, Ihe financial ateMents.
Gwe a true and fair view of the 8tat6 of th6 group'8 and of thè parent charitable company's
affairs as at 31 March 2022 and of th8 group'8 incoming re8ourc88 and application of
re80urce8, including its inGom8 and expendrture, for the year then ended
Have been properly prepared in acGordanGe with United Kingdom Generally A¢Gopt8d
Accounting FYactice
Have been prepared in accordance with the requirements of the Compani88 Act 2006
and ihe Charitie8 Ath 2011
B•81s for oplnlon
We conducted our audit in accordance with International Standard8 on Auditing (UK) (ISA8 (UK))
and applicablé law. Our r8spon8ibilities undèr thos8 81andard8 arè further dè8cribed in th8
Auditor'8 r88pon8ibilitie8 lor the audit of the group financial 8tatement8 88Ction ol our report. We
are independent of the group and parent charttable company in accordance with the ethical
requirement8 that are relevant to our audit of the financial 8tatemen18 in the UK, including the
FRC'8 Ethical Standard, and we have fulfilled our other ethical re8pon8ibilit8 in accordance with
the8e requirements. We believe that the audit evidencè we have obtained 18 8ufficienl and
appropriato to provide a basi¥ for our opinn.
Concluslons relatlng to golng concern
In auditing the financkql 8talemen18, we have concluded that the tru8tees' u8e of the going concern
ba818 of accounling in ihe preparation of the financial 8tatem8nt8 18 appropriale.
Ba8ed on the work we have perfOrnd. we have not Klentffied any malerial uncertaintl88 relating
to event8 or conditions ihai, individudty or collectNety, may ca8t signthcani doubt on Pallant Hou8e
Gallery's ability to continue as a going concem for a period of at least twelve months from when
the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the tru8tees with re8FeCt to going concern are
described in the relevant sections of thi8 reporL
Other Informallon
The other infomwtion compri888 the infomwtKin included in the trustees. annual rep)rt, other than
the group financial statements and our auditor's report thern.
Page 20 of 49
Pallant House Gallery
Independent audttor'8 report
The trustees are responsib for the other infomwtion Contned wrthin the annual report. Our
opinion on the group financial statements does not cover the other information, and, except to the
extent otherwise expliciily ststed in our rewrt. we do not express any form of assurance conclusion
thereon.
Our re8ponsibilily 18 to read the other infomwtion and, in doing 80. consider whether the other
information is materially inconsistent wrf(h th8 group financial statements or our knowledge
obtained in the course of the audit or otherwise appear8 to be materially mi88tat8d. If we identrfy
such material inconsistench?s or apparent material misstatements, we are required to determine
whether this gives rise to a material misstatement in the group financial statements themselves. If,
based on the work we have performed, we conclude that there is a material misststement of thi8
other information, we are required to reFQrt that fact.
We have nothing to report in this regard.
Oplnlons on oth•r matters prescrlbed by th¢ Companleg A¢t 2006
In our opinion, based on the work undertak8n in the course of the audit:
The information given in the trustees, annual r8port, for the financial year for which the
financial 8tatemènt8 arè prepared 18 consistènt with the ffinancial 8tatèmant8.
The tru8tee8' annual rep)rL ha8 been prepared in aordance with applicable legal
requirement8.
Matters on whl¢h w• ar• requlr•d to report by exceptlon
In the lighi of the knowledge and und8r8tanding of the group and the parent charitable company
and their environment obtained in the cour88 of the audit, we have not identrfied material
mi88tatem8nt8 in the tru8te68' annud reporL
We have nothing to report in respect of the folk)wing matter8 in relation to which the Compani88
Act 2006 and Charities Act 2011 requires us to réport lo you if, in our opinion:
Adequate accounting record¥ have not been kept by the parent charitable ¢ompanyt or
returns adequate for our audit have not been received from branche8 not Vlsiled by u8., or
The parent charitsble company financial 8tatement8 aro not in agreement with the
accounting record8 and retum8: or
Certain disclosurés of tru8tèe8' remuneratn Specrfied by law are not made; or
We have not received all the information and explanation8 we require for our audit,. or
The director8 were not entrtled to prepare the financkql 8tatement8 in accordance with the
Small companies, regime and take advantage of the small companie8, exemptions in
preparing ihe tru8tee8' annual report and from the requirement to prepare a 8tr8tegic
report.
ResponslbllieS of trustees
As explained more lully in the statement of trustees, re8ponsibiltties 8et out in the tru8te88' annu
report, the tru8tee8 (who are also the directors of the parent charitable company for the purposes
of company law) are responsible for the preparation of the financial statements and for being
satlsfied that they give a true and fair view. and for such intemal control the trustees determine
Page 21 of49
Pallant House Gallery
Independent audttor'8 report
is necessary to enable the preparation of financial statements that are free from material
mi88tatement, whether due to fraud or error.
In preparing the financial statement4 the trustees are reSPonbIe for assessing the group'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 eiiher intend to liquidate the
group or the parent charitable company or to cease operations, or have no reistiC alt8rnative but
to do 80.
Auditor's responsibilities for the audit of the financial ststements
We have been appointed audrtor under the Companies Act 2006 and section 151 ofthe Charite8
Act 2011 and report in accordance with tl¥)8e Act8.
Our objectives are to obtain reawnable a$$urance about whether the finanGki1 statements as a
whole are free from material mi8Stalement, whether due to fraud or error, and lo issue an auditor'8
report that includes our opnion. Reasonable assurance 18 a high level of assuiance, but 18 not a
guarantee that an audit conducted in accordance with ISA8 (UK) will dway8 detect a material
mi88tat8ment when it exist8. Mi88tatement8 can arise from fraud or error and are considered
material if, individudly or in th6 aggregaté, théy could réasonably bè axpactad to influèncè thè
economic deci8ion8 of u8er8 taken on the b9818 of these financ1 statemonl&
Irregulariti98, including Iraud, are in8tsnce8 of non-compliance with law8 and regulation8. We
d881gn procedur88 in line with our re8wn8ibilitie8, Outlined above. to detect material
mi88tatemen18 in re8pect of irregularities, including fraud. The extent to which our procedur88 are
capable ol detecting irregularitie8, including fraud are Èet out below.
CapabllSty of the audlt In d•tOCtlng Irregul•rltl•$
In idantifying and A88eng ri8k8 of material mi86tatam6nt in re8P6Ct of irregularitle8, including
fraud and non-¢omplianGe with law8 and regulgtion4 our procedure8 included the following:
We enquired of management and the audit and ri8k committee, which included obtaining
and reviewing 8UPPOrting docum8nlalion, concemiry the group'8 policie8 and procedur88
relating to..
Identifwng, evaluating, and complwng with law8 and regulation8 and vthether they
were aware of any instances of non-cOmlanCe.
Detecting and responding to the ri8k8 of traud and whether they have knowledge
of any actual, suspected, or alleged fraud;
The intemal controls established to mitigate riskts related to fraud or non-
compliance with laws and regulath?ns.
We inspected the minute8 of meetings of tho¥e charged with governance.
We obtained an under81anding of the legal and regulatory framework that the group
operales in, focusing on those la and regulations that had a material effect on the
financial 8tatement8 or that had a fundamentd effect on the OFeration8 of the group from
our profe88ional and sector experience.
We coMmunated applicable laws and regulations throughout the audit team and
remained alert to any indi&*ions of non-compliance throughout the audit.
Page 22 of 49
Pallant House Gallery
Independent audttor'8 report
We reviewed any reports made to regulatOT&
We reviewed the financral statement disclosures and tested these to supporting
documentation to assess compliance with aPF1rab1e laws and regulations.
We performed analy1icd procedure8 to idenlfy any unusud or unexpected relationships
that may indicate risks of material mi88tatem8nt du8 to fraud.
In addressing the ri8k of fraud through management override of controls, we tested the
appropriatene88 of journd entriès and other adjustment8, a8se8sed wh8th8r the
judgements made in making accounting estimates are indicative of a potential bias and
tested significant transactions that are unusual or those outside the nomial Cour of
business.
Because of the inherent limitation8 of an audit, there 18 a risk that we will not detect all irregularitie8,
including those leading to a material misstatement in the financial 8tatements or non-compliance
with regulation. Thi8 ri8k increa8e8 the more that compliance with a law or regulation 18 removed
from the ev6nts and tran8aclion8 reflected in the financial 8tat8m8nt8, a8 wé will b81888 lik8ly to
become aware of in8tances of non-compliance. The risk 18 a180 greater regarding irregularitl88
occurring due to fraud rather than error. a8 fraud involve8 intentional concealment, forgery,
collusion, omi88ion or misr8pre8entalion.
A fvrther de8criplion of our re8ponsibililies 18 available on the Financial Reporting Council'8
website al.. www.frc.org.uklauditor8re8pon&bilstie& Thi8 description form8 part ol our auditor's
report.
U$• of our report
This report is made Solely to the Gharitable compan18 members as a bodyi in acGordanGg Wlth
Chapter 3 of Part 16 of the Componie8 Act 2006 and 8eclion 144 of thg Charities Act 2011 and
regulation8 made under 8eclion 154 of that Act. Our audit work has been undertaken 80 that we
might 81ate to the charitable company'8 member8 th08e matter8 we are required to 81ate lo them
in an auditor's report and for no other purp)se. To the fullest extent pemiitted by law, we do not
accept or a88ume r88ponsibilily to anyone other than the charrtabl8 company and the charitable
ompany'8 member8 a8 a body, for our audri worK for this report, or for the opinions we have
formed.
Judiih Miller (Senior Stalulory Auditor)
16 December 2021
for and on beholf of Sayer VinGent LLP, Statutory Auditor
InviGta House, 108-114 Golden Lane, LONDON, EC1 Y OTL
Sayer Vincent LLP 18 eligible to act as auditor in ternis of section 1212 of the Companies Act
2008
Page 23 of 49
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Pallant House Gallery
Annual report and financial stalements
For the year ended 31 March 2022
Notes to the financial statements
1) Accounting policies
a) Slatulory intormation
Pallant House Gallery is a charitsble company limited by guarantee and 18 incorporated in England
and Wale8. The registered off0 addr888 18 Pallant Hou88. 8-9 North Pallant. Chiche8t8r. W88t
Su88ex, P019 1 TJ.
b) Basls of preparatlon
The financial 8tatem8nt8 have been prepared in aG¢ordance wrlh Accounting and Reporting by
Charities.. Statement of Recommended Practice applicalle lo charities preparing their aGGounl8
in accordance wf(h ihe Financial Reporting Standard aPIcable in the UK and Republic of Ireland
(FRS 102)- (Charitie8 SORP FRS 102) and the Compani88 Act 2006.
Th88e financial 8tatem8nts con801idate the re8uIt8 of the charity and it8 wholly-owned 8ub8idiarie8
Pallant House Gdlery Servic68 Limited and PalLqnt House Enterpri8e8 Limited on a line by line
ba818. Tran8action8 and balanc88 between the charty and it8 8ub8idiary have been eliminated from
the Gon801idaled financial 8tatement& Balance8 between the two entities arg dCloSed in the
note8 of the charity'8 balance 8heet. A separate 8tatement of financkgl activitie8, or income and
expendilure accounl, for the charity it8elf is not pre8enled becau8e the charity ha8taken advantage
of the exemplion8 afforded by 8eclion 408 of the Compani88 Act 2006.
A88et8 and liabilitie8 are initiaily recognised at hi8torical c08t or transaction value unl888 Otherwi86
Stated in the relevant accounting policy or note.
In aPping the financial reporting framewori the tru8tee8 have made a numb8r of subjective
judgem8nt8, for example in ré8Ptct of 8ignrficant accounting è8timata8. E8timaté8 and judgemènts
are Gontinually evaluated and are based on historiGal experience and other factors, inGluding
expeclation8 ol future events that are believed to be rea8onoble under the circum8lance8. The
nature of the 88timalion mean8 the actual oulcomes could drffer from th08e 88timale8. Any
8ignificanl eslimat88 and judgements affecting the8e financkg18tatement8 are d8tail8d within the
relevant accounting policy below.
¢) Public bonefil entity
The chorty meet3 the definrtion of a wblic benefit entity under FRS 102.
d) Going concern
The Iru8tee8 conwder thal there are no material uncertainties about the charty'8 ability to continue
a8 a going concern. Financial projections have been prepared that 8how that the existing ca8h
re80urces 8UPWrted by the ability to redise investment8 will be sufficient to allow the Gallery to
continue operating for the foreseeable future and in particular for the twelve months following the
signing of these aGGount& Further reference Gan be found in the SeCt)n 'Re8erve8 policy and
going concern, in the Trustees, ReporL
Page 27 of49
Pallant House Gallery
Notes to the financial statements
e) Income
Income 18 recognised wh8n the charty has entrtlement to the fvnds, any performance condrtions
attached to the income have been met. it is probable that the income will be received and that the
amount can be measured reliably.
Income from govefflm8nt and other grants, whether 'capilal' grant8 or 'revenue' grants, 18
recognised when the charity has entitlement to the funds, any performance conditions attached to
the grants have been met, it 1$ probable that the income will be received and the amount Gan be
measured reliably and noi delerred.
For18gacies, entiilement 18 taken a8 ihe earlier of the date on which either.. the charity 18 aware
that probate has been granted, the 88tat8 has been ffinalised and notification has been made by
the ex8cutOT(8) to the charity that a di8tributi)n will be made. or when a di8tribution 18 received
from the e8tate. Receipt of a legacy. in whole or in part, 18 only consid8red probable when th
amount can be measured reliably and the charity has been nolrfied of the executor's intention to
make a di8tribLrtion. Where legacie$ have been notified to the charity, or the charity 18 aware of the
granting of probate, and the crrterkq for income recognition have not been met, then the legacy 18
a treated as a contingent a88et and disclosed rf material.
Income received in advance of the prOViOn of a Specif 88kvic8 18 deferred until the criteria for
income recognition are met.
Membor8hip Subscriptions are recognk8ed when received.
Entrance lee8 are recognised in income when they are receivable except for group dep081ts which
are reGogni8ed when the group w8it take8 are. Admi88ion income for exhibitions 18 recogni6ed
when the ticket¥ ar¢ sold. Ti¢ket in¢ome relating to ¢oursos, events and group booknng8 18
recogni8ed when they take place. Book and other 89108 income are rgcognised when receivable.
l) Donatlons of glfts, servlces and facllltles
Donated prof888ional 8eryice8 and donated facilitie8 are recogni8ed a8 income when the charity
ha8 control over the item or received th8 service. any conditions a880ciated with the donation have
been mel, the receipt of economic benefit from the use by the charity of the item is probable and
that gGonomiG benefit can be measured reliabty. In a¢Gordance wrth the Charities SORP (FRS
102), volunteer lime 18 not recognised 80 refer lo the trustee8' annu rep)rt for nw)re information
aut their contribution.
On receipt, donated gift8, prof888ional 8eMce8 and donated faciliti88 are recognised on the ba818
of the value of the gift to the charity which 18 the amount the charity would have been willing to pay
to obtain services or facilities of equivalent economic benefit on the open market; a corresponding
amount 18 then recogni8ed in expenditure in the period of receipt.
g) Interest receivable
Interest on funds held on deposit included when receivable and the amount can be measured
reliably ty the charily. thi8 18 nomwlly upon notification of the interest pwd or payable by the bank.
h) Fund accountlng
Re8tricted funds are to be used for 8pectfic purw8e8 a8 laKJ down by the donor. Expenditure
which meets the8e crrteria k8 charged to the fund.
Page 28 of49
Pallant House Gallery
Notes to the financial statements
Unre8tricted fund8 are donation8 and other incoming resource8 received or generated for the
charitable purposes.
Designated funds are unrestricted fijnds eanrArked by the trustees for particular purposes.
Endowment fvnds are split between permanent endowments and expendable endoMnents. The
capital of the Fermanent endowments must be MntaIned. aithough the inGome ¢an be utili$ed in
accordance with the temis of the endobwnent.
l) Resource expended
Expenditure is recogni88d once there is a legd or constructNe obligation to make a payment to a
third party, it 18 probable that settrnent will be required and the amount of the obligation can ba
measured reliably. Expenditure is Clarfl8d under the following activity headings..
Co8t8 of rak8ing fund8 relat8 to the c08t8 incurred by the charity in inducing third partla8
to make voluntary Gonlribution8 to it, a8 well a8 the G08t of any activitie8 with a fundraising
PLifp08e.
Expenditure on charitable actNities includes the cost8 of delivering 8ervic8& exhibitions
and other educational activit168 undertaken to lurther the purw888 01 tho charity and their
associated Support CO8t8.
Oihor expenditure repre80nt$ th08e rtem8 not falling into any other heading.
Irrecoverable VAT 18 charged a8 a Centr 8UPPOrt C08t or includgd in the c08t of a ftxed
a88et.
l) Allocatlon ol support and governance costs
Actiwtie8 have been idenlified under the heading8 Of:
Collection8 managemenl - maintaining and acquiring ath¥orK lending to other gallerie8
and maintaining a re80urce library.
Exhibition8 & displays - creating and pronh)ting pemwiant and temporary 6xhibition8 and
arranging for public admi8¥ion.
pu10 pro9ramme8- organi8ng and promting cour8e& 1gCtur88 and 8vent8 for arti8tic,
hi8torical, educalional and community outreach purpM)8e8.
pu1&hing
creating publication8. m08tly related to the exhibition activity for Sale in the
Gallery bookshop and e18evthere.
Re80urc88 expended are allocated to the particular actNity wher8 the c08t relates directly to that
activity.
The cost of overdl direction and administration of each actiwty, compri8ing the salary and overhead
costs of the central function, is apportioned where is it realistic and feasible to measure this.
Otherwise support and governance costs are allocated to the actNities in proportion of their direct
ost. Governance costs are the costs associated with the governanGe arrangements of the
charity. These costs are associated with constitutional and statutory requirements and include
any cosls as80cialed wth the strategic management of the charity'8 activitie&
k) Operatlng leases
Rental charges are charged on a strwght line bts over the term of the lease.
Page 29 of49
Pallant House Gallery
Notes to the financial statements
l) Tangible fixed assets
Item8 of equipment are capttalised where the wrchwde price exceeds £1.000. Depreciation co8t8
are allocated to activitie8 on the ba818 of the use of the related a88et8 in th088 activities. A88et8
are reviewed for impaiment rf circum8tance8 indicate their carying valu8 may exceed their net
realisable value and value in use. Major components are treated as a separate asset where they
have significantly different pattems of consumption of economic beneffts and are depreciated
separately over ils useful life.
Where fixed assels have been revalued, any excess betsveen the revalued amount and the historic
Cost of the asset will be 8hown as a revaluation reserve in the bdance 8heet.
Depreciation 18 provided at rates cdculated to wri18 down the c08t of each a88et to tts estimated
re8idual value over it8 expected u88ful Itl6. The depreciation rate8 in u8e are a8 follow8.'
Land & building8
50 year8
Plant & machinary
15yeèrn
Fixture& fritings and equipment
10 year8
m) Herllage assets
A heritage a88et is defined a8 'a tanglEe a88et with historical, artistic, 8cientific, technological,
geophy8ical or environmental qualilie8 that is held and maintained principally lor it8 contribution to
knowledge and culture.. The Gallery ha8 estimated a value in Ih68e financial 8tatement8 in re8P8Ct
of it8 variou$ colléction8 of artwork Any acqui8ition8 are 8hown èithèr at cost or in the casé of
donations at an estimated valuation on the date of receipt. Any gain8 or106se8 on revaluation, if
they take 8, would be recognised in the Statement of Financial Activitie8.
n) Investments
Inve8tment8 are a form of ba8ic financK41 in8trument and are initially recogni88d at their tran8action
value and subsequently measured at their f&r value as at the balance Sheet date u8ing the c108ing
quoted market price. Any changé in fair value will bè recognised in the 81atemént of financkql
activities. Inv88tmenl gwns and losses, whether realised or unrealised, are combined and Bhown
in the heading 'Net goin81(108$e8) on investment8" in the 8talement of financial activili98. Tho
charily d088 not acquire put oplion& derivatr¥88 or other conVX financkgl in8trum8nt8.
o) Investments In subsldlarles
Inve8tment8 in subsidiaries are at cost.
p) Slo¢ks
Stock8 are made up of catalogues and are stated at the lower of cost and net reali5able value.
Net realisable value is the price at which stock8 can be 801d in the nornwl course of business after
allowing for the costs of realisat)n.
q) Debtors
Trade and other debtors are recogni8ed at the 8ettlement amount due after any trade discount
offered. Prepayments are valued at the amount prepaid net of any trad8 discount8 due.
Page 30 of49
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Pallant House Gallery
Notes to the financial statements
7) Net incomel (expenditure) for the year
This is Stated after charging l (credrtin9):
2022 0211
As re8tated
D8Fxeciation and impairment
Operating lea8e renta18 payaLle
Propety
304,174
246,191
15,660
19,620
Operating laase renta18 rèc8wat46
Property
46,744
12,250
Auditors remuneration (excluding VAI)
Audit
Other 8ervi¢¢8
22,375
22,600
8) Analysls of staff costs, trustee remuneratlon and expenses, and the cost of
key management personnel
Staff co8t8 were a8 follow8..
2022
2021
Salari88
Redundancy and termination coets
Social Securty cost
EMp0YeT,8 pension contriiwtion8 (")
Other forms of ernOyee benefits
Training costs
Travel and 8UStenance
Volunteer expen8es
688,805
707,997
32,017
44,736
11,996
3,543
553
645
216
39,005
11,876
3,639
6,912
6,219
1,078
757,535
801,703
(") made to defined contribution 8chome
The redundancy and tem)ination c08ts were settled and paid at the baiance 8heet date.
Page 36 of49
Pallant House Gallery
Notes to the financial statements
The following number of employee8 received employee benefits (excluding employer pen8ion
Costs and employer's national insurance) during the year between:
2022
No
2021
No
£60,000- £69,999
£70,000- £79,999
£80,000- £89,999
The total em0ye8 beneffit8 Cincluding PenOn contributions and employer's national in8uran¢e)
of the key management personnel were £80.347 (2021: £158.246).
The charity tru8tee8 were neither paid nor recep1 any other b8nefit8 from employment with the
charily in ih8 year (2021 .. £nil). No charity tru8tee received payment for profe88ional or other
services 8upplied to the charily (2021: £nil).
Truste88' expen888 represents the payment or reimbursement of iru8te8 indemnity in8uranc8
premium 01 £2,059 (2021 .' £1,635) along with récruitment agan¢y co$t$ of £21,025 relating to
the appointment of a new Chair (2021: £1060 for 8 new trustee).
During tho year tho Gallery onterod into tho following tr8n8a¢tKin8 With TrIat parti68:
C Martin 18 a180 8 Tru8teo of Outside In Art. There were no m8naggment charge8 r8i8ed
lo Out8ide In Art in 2021122 whi18t £9,000 wa8 rai8ed in 2020121. There were no
amount8 included in reslricled funds in either year that were paid to Out8ide In Art. At
both baiance Sheet date8, nothing was owed by either party to the other.
The John Booth Charitable Foundation wa8 one of the donors mentioned in note 2,
contributing a £500,000 donation toward8 the purchase price of No7 North Pallant. Tha
t8rm8 of this donation include reStrli0n9 on its u¥e and for repayment if the property 18
801d within len years. In 2020121. the Foundation a180 made a £10,000 donation toward8
the c08t of a curatorial a88iStant. John Booih 18 connected with the Foundation and wa8
the Chairman of the Tru8tee8 until March 2022.
There are no other donatn8 from related parti88 which are outside the nomal cour8e of
bu8ine88 and no restricted donation8 from related parties.
9) Slaff numbers
The average number of employee8 (head count based on number of staff employed) during the
year was 36 (2021- 38).
Staff are 8plit across the actNrties of the charty as follow8:
Page 37 of49
Pallant House Gallery
Notes to the financial statements
2022
2021
Full Time
Full Timè
Head count Equivalent Head count Equivalent
Administration
Collections
Commercial
Communication8
Curatorial
D8veloFynent
Directors
3M
nance
ont of Hou8e
Operation8
Public Programme8
12.3
12.1
36.1
25.3
37.9
28.1
10) Taxotlon
The charity 18 exempt from cOrporatn tax as all its incomè 18 charitable and 18 applied for charitable
purp0888. The charity's trading subsidiary Pallant Hou88 Gallery Servic88 Limited 18 currently
dormant.
Page 38 of49
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Pallant House Gallery
Notes to the financial statements
14) Subsidiary undertaking
These financial stalements are consolidated financwl str1enIS for Pallant House Gallery group.
Details of the Gallerls subsidwies at 31 Mwch 2022 are as follows..
Name of undertaking
Registered Nature of busines8
office
Class of 116 Held
shares
direct
held
Pallant Hou8e Gallery
Service8 Limited
UK
Dormant
Ordinary
100
(CRO 05526158)
Pallant Hou88 Ent8rpri888
Limited
UK
Domwit
Ordinary
100
(CRO 03787604)
Both of the8e 8ub8idiarie8 are included in the8e consolidated accounts. At 31 March 2022,
Pallant House Gallery Setvic& Lim¢led'8 a888ts totalled £200, it8 liabilitie8 £nil and totd lund8
£200. Pallant House Enterpri888 Limited'8 a88et8 total £100. it8 liabiliti88 £nil and it8 total fund8
£100. There wa8 no income or exnditurn in the year for either company.
15) Parent charlty results
A8 eyplained in the previou8 88clion. the 8ub8idiary'8 re8uIts are in8ignfficant in the context ol the
group and 8uGh profrt8 that were generated were donated lo the Charity. In effect, therefore the89
account8 alrea(ty di8c108e and only comprise the parent comp8ny resu9.
16) Debtors
2022
2021
Trade debtor8
AGGrued inGome
Deferred expenditure
Tax reliefs
VAT
Other debtors
Prepayments
83,583
399,983
6.086
144,496
8,977
565
44,585
14,492
104,134
3,622
99,916
3,610
51,445
688,274
277,219
Page 41 of49
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Pallant House Gallery
Notes to the financial statements
Designated frJnd8 represent rtems of artwork or building as8et8. which have either been gift8d to
the Gallery or to the extent they have teen acquired through grants and donatnS for that purp08e.
The funds serve to set aside the value of those assets from general unrestricted fijnds to reflect
that they are not available for ongoing activities.
21) Prior year adjustment
During 2018, the Glery was awarded an Arts Council England grant facility as a contribution
towards its costs of i(s wider capital project that was being planned at the time. The award
inVoed the Gallery incurring qu1.n9 expenditure of up to the £300k in the period up to 31
March 2021 and claiming reimbur88ment from the facilty.
The programme had only ju8t commenced when it was 8U8pended due to Covid restrIctn8. Due
to thi8 and 8ignificant change8 in the overall capitd project, relevant exp8nditure had been incurred
at the time of finali8ing the 2019120 and 2020121 account8 where it wa8 not certn that it would
be possible to Glaim on the fa¢ility* a$ the original terms and timing of the award had not been mel.
Furthermore, it w88 uncertain at the time whether the Scale and longevity of the expenditure would
qualify it lo be regarded a8 cwal in nature. Consequenly, the expenditure was moslty 8ntered
into th08e accounts either a8 revenue expen888 ora8 capital expenditure not Subject to a restricted
fund facility but lund6d from intémal r88èrv6& The account8 Includ £20k of accruad grant
in¢omo of which £9k had been aGtually Claimed and paid.
Sub8equenlty, the Gdlery wa8 8ucce88ful in obtaining an exten8itin in the completion deadline to
31 March 2022 and was able to Gomplete 8ufficient of the remaining work during 2021122 at a
tolal overall c08t of £394k io enable it to make a claim on the remaining facility. Con88quently,
the8e account8 conlwn accrued income for the balance of £280K of which £260k ha8 bean
received and £31 k is 8ubject to con8ideration of our final report.
A8 a re8uIt of thi8 oulcome, Ihe accounts for 2019120 and 2020121 are being re8taled to reflect
fir8tly the capilali8alion of the entire £394k expenditure at the time it wa8 incurred and the
¢on8equ6nt amended depreciation charg6. Thé impact for the two préviou8 ar8 18 8hown below.
Page 47 of49
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