Pallant House Gallery Pallant House Gallery Annual Report & Financial Statements For the Year Ended 31 March 2024 Charity Registration No. 1102435 Company Registration No. 05045130 (England & Wales) *ADEPE7XE* 2811012024 COMPANIES HOUSE #301 Pallant House Gallery Annual report and financial statements For the year ended 31 March 2024 Reference and Administrative Information Company number 05045130 Country of incorporation England & Wales Charity number Country of registration 1102435 England & Wales Registered office & operation address Pallant House Gallery 8-9 North Pallant Chichester West Sussex P019 ITJ Trustees Trustees, who are also directors under company law, who served during the year and up to the date of this report were as follows: John Ayton MBE Chair Charles Martin Deputy Chair (appointed to role 8 December 20231 Company Secretary Elizabeth J Davis Aki Abiola Cllr Clare Apel- Joanna Beer Andrew Cussins Laura Ford Elsebeth Gatacre Olaf Gueldner Patrick Holmes Mahtab Hussain Zachary Leonard Roger Mavity Andrea Rose QBE OMG Jacqueline D Russell Tamara Templer The Rt Hon. the Lord Tyrie Robin Vousden Mark Washer Jane Weeks (appointed 8 December 2023) (appointed 22 September 2023) (appointed 22 September 2023} (appointed 22 September 2023) (appointed 27 September 2024 (appointed 27 September 2024) (resigned 18 May 2023) (retired 22 September 2023) {appointed 27 September 2024) {appointed 22 Septernber 20231 (Deputy Chair. retired 8 December 20231 Gallery Di￿¢tOr Simon J Martin Auditor Sayervincent LLP 110 Golden Lane London ECIY OTG Bankers Barclays Bank PLC 74-75 East Street Chichester West Sussex P019 IHR Investment Managers Sarasin & Partners LLP Juxon House. 100 St Paul's Churchyard London EC4M 8BU Page 2 of 41 Pallant House Gallery Annual report and financial statements For the year ended 31 March 2024 Contents Reference and Administrative Information....................... Chair's Statement............................................. Trustees, Annual Report.. Objectives & Activities.......... Our Mission and Vision. Public Benefit Derived from our Activities.-..-.-............................. Performance and Achievements During the Year..-..- .- .... ..... Summary of Financial Results..........................-................................................................................. Capital Project...-.. Exhibitions...... Collection and Acqui5itions......-.-.-.. Community Programme ..-..................................................-......-.............................-......................... Fundraising....-....- .10 Buildings & Facilities. Commercial Aclivities....-.-..............................-. .11 .12 Human Re50urces... -12 Financial Review . .13 Reserves Policy and Going Concern................................................................................................. 14 Investment PolKy and Objectbves..... . . ... .15 Principal Risks and Uncertainties.................-.-.........................-.-.... Structure, Governance and Management....................................................................................... 16 Statement of Responsibilities of the Trustees.............................. .18 Auditor.......................-.-.-......................-.....-.. .16 .19 Independent auditorfs report to the members of Pallant House Gallery....................................... 20 Consolidated statement of financial activities .24 Consolidated balance sheet............................................................................................................. 25 Consolidated statement of cash flov￿... .26 Notes to financial staternents.............................................................. .27 Reference and administrative information set out on page 2 forms part of this report. The financial statements complywith currentstatutory requirements, the memorandum and articles of association, the requirements of a directors, report as required under company law, and the Statement of Recommended Practice Accounting and Reporting by Charities: SORP applicable to charities preparing their accounts in accordance with FRS 102. Page 3 of 41 Pallant House Gallery Annual report and financial statements For the year ended 31 March 2024 Chairfs Statement l am delighted to present this Annual Report for 2023-24, which represented the Gallerfs most successful year in terms of visitor numbers and revenue. We have welcomed over 75,000 people to enjoy cultural experiences at the Gallery, bringing in close to £500,OtK) of admi55i0n income.. an impressive increase of 45% on the previous year. This increased footfall also generated record sales for both our independent franchises. The Gallery attrarted these exceptionally large audiences thanks to a hugely popular and critically acclaimed summer season, which included the first major museum exhibition ofGwen John. alongside new work bycontemporary artist Kaye Donachie.The autumn season of John Craxton andjake Grewal exhibitions also received excellent press coverage, although ticket sales returned to more 'normal' levels. The Gallery is not immune to external pressures and the challenges facing the culiural sector and businesses generally. Indeed, the impact of rising inflation and the cost of living were more keenly felt over the winter months. Desprte our cultural contribution and outstanding community programme, the 1055 of our National Portfolio Organisation status and the annual £91,000 of Arts Council funding was a blow. Building financial resilience from other sources of income thus became an even greater priorty and we are very grateful for all our loyal supporters including Chichester District Council. There was a 10% increase in Friends. income and Il% in Patrons. income over ihe period as well as some Significant legacies. The appointment of a new Head of Development will further improve the Gallerfs approach to philanthropy going forward. The Board and I sUPPOrted staff changes that have resulted in a more qualified and experienced team overall. The leadership team was significantly st￿ngthened with the creation oftwo new roles: a Chief Operating Officer and Chief Curator. supported by a new, full time Head of Finance. The team is now delivering against a Business Plan for 2024-26. which builds on existing strategic priorities and identifies clear operational goals. Our cultural arnbitions are undimmed. New staff and a renewed focus have brought additional energy to help realise the Gallery's mission. In tackling some of the long-standing issues that have held back the Gallery previously, l am confident that the tearn 15 laying robust foundation5 for a more resilient organisation that will be better placed to deliver its ambitions. John Arcon Chair ofthe Board of Trustees Page 4 of 41 Pallant House Gallery Annual report and financial statements For the year ended 31 March 2024 Trustees, Annual Report The Trustees present their report and the audited financial statements for the year ended 31 March 2024. Objectives & Activities The Charitys objectives areforthe public benefft to promote and advance the education of the public in. and to promote. the visual arts and history of art principally in the Chichester administrative district and in particular, to maintain, preserve, restore and furnish Pallant House in the City of Chichester as a period house within which to exhibrt works of art of historic or public interest for viewing by the public. Our Mission and Vision Our mission is to share and stimulate new thinking on British art and to play a pivotal role in the creative lives of the widest possible audience. Our vision 15 to be recognised as an international centre for Brttish art from 1900 to now. We achieve this by obserrfing the following six principles: Making Modern British art relevant today by exploring contemporary, historic and international connections, redressing imbalances in its history and filling gaps in our collettion. Putting our audiences at the heart of what we do. striving to understand their needs and motivations, enabling two-way conversation5 and involving them in our work. Thinking of the Gallery as rnore than a physical destination. expanding our audience reach through digital, outreach and regional, national and international partnerships. Being a recognised authority on Modern British art and an example of best practice in all aspects of our work. Creating and upholding a distinctive brand for the Gallery that inft)rms all activity. Investing in our people, culture. a55ets and systems. and working to becorne financially and environmentally sustainable and appropriatety resourced. Public Benefit Derived from our Activities The Trustees of the Gallery have paid regard tothe Charity Commission's published guidance on public benefit. They believe that people who have access to the visual arts derive real benefit from the experience through Ihe expansion of their creative ideas, practice and understanding; through appreciation, learning and participation. The Gallery provides the opportunity for people to gain a better understanding of the cultural and artistic make-up of our society and enhances their personal response to and enioyrnent of creativity- Page 5 of 41 Pallant House Gallery Annual report and financial statements For the year ended 31 March 2024 Performance and Achievements During the Year Summary of Financial Results The Gallery delivered a surplus of £1,250k in the year 12022-23- deficit of £313k). These figures comprise exceptional and restricted items in both years. At an underlying level, the Gallery continues to incur operational deficits. with the operating deficit for the year of E238k and £512k of net cash utilised for operating activrties. Capital Project During the year the focus has been on building internal capacity and improving systems to deliver a future Capital Project. During the 2024-25 financial year the Gallery will start to work with project rnanagers and internal and external stakeholders in order to revise the brief for a multi-disciplinary design team, in advance of launching the project. Exhibitions 2023-24 was the Gallery's most successful year to date, with record admission numbers matched by outstanding press reviews and visitor feedback. The Gallery operates a dynamic two-seasons exhibitions programme {May- October and November April). Each season comprises one main exhibition in the New Wing and one secondary exhibition in the Historic House. These showcase the Gallervs curatorial excellence. telling new stories about modern British art while supporting contemporary creattvity through the work of emerging or more established artists. These are supplemented byfour Print Room exhibitions per year (two per season), which present new research or insight into the Galler¢s outstanding collertion of works on paper and rare books. Collections displays within the Historic House are also periodically refreshed. notably to facilitate loans out or reveal re￿ntlY acquired works. Summer / Autumn Season Gwen John.. Art ond Life in Lornlon ond Poris was a timely reappraisal of the work of a trailblazing artist long overshadowed by her brother, Augustusjohn. Curated by independent curator Alicia Foster with support from the Gallery's team, the exhibition enabled the Gallery to establish or deepen relationships with a number of partners, with loans from 22 public collections in the UK and abroad, and rarely available pieces from private collections. It was accompanied by a major publication, achieved great press coverage and critical acclaim, and attracted record visitoi numbers. The exhibition subsequently toured to the Holburne Museum, Bath. Pallant House Gallery's Community Programme artists responded to this exhibition by making new work. which featured in the exhibition, A Ploce of My Own. Koye Donochie.. Song for the Lost Act was the artist's first institutional solo show, and presented new work alonEside a painting recently acquired from the artist with the support of the Contemporary Art Society. Donachie designed a site-specific wallpapertoformthe backdropforherselection of 26works Page 6 of 41 Pallant House Gallery Annual report and financial statements For the year ended 31 March 2024 from the Gallerfs collection. The exhibition was accompanied by the artisvs first monograph, authored by Gallery director, Simon Martin. In the Print Room, Role Models. Writers, Portraits16 May- 23 July) and From Lifr. Drawing the Figure (26 July l October) were both drawn entirety from the collection with recent acquisttions demonstrating the Gallery's effort5 to increase the diversrty of artists and subjects represented. The season's success was achieved by an unusually short4taffed curatorial team, following the departure of the Head of Exhibitions in November 2022 (replaced by a Chief Curator in August 20231, showing a canny deployment of reduced resources at a pressured tirne. Autumn / Winter Season The retrospettive, John Croxton.. A Modern Odyssey Charted the development of this celebrated Modern British artist, from wartiffle Britain to the sunny shores of Chania, Crete. Featuring many rarely seen works from private collections and the Craxton Estate as well as loans from British public collections, the exhibition was the first opportunity to display two works by Craxton recently acquired from the estate of Sinclair Hood through the Acceptance in Lieu scheme. Curated with Craxton biographer lan Collins, the exhibition was accompanied by a new publication with essays from staff and distinguished writers. Shown within the exhibition. leading contemporary artist Tacita Dean'5 16mm film diptych, Crockers, premiered at the Gallery. Filmed in and around Craxton's Cret3n house, it is an homage to the artist who encouraged Dean's own career. In ihe Historic House. Joke Grewol.. Some days I feel more alive was Grewal's first instilutional solo Show and revealed his affinities With British Neo-Romantic artists, whose work he selected to show alongside his own. In the Print Room, Sonctuoryselerts.. Voicesfrom the Communty16 October-4 February) was curated by members of the Sanctuary in Chichester Womens, Literacy Group of locally-based refugees and asylum seekers. Hobib Hojallie.. Penned into History {10 February - 21 April) followed from Hajallie's residency at the Gallery as pan of University of the Arts london's Decolonising Arts Institute 20120 programme. Alongside new work on loan from the artist, it included The Lorge Collectors, a monumental drawing produced as a result of the residency and acquired into the collection. Collection and Acquisitions During 2023-24, 118artworks were acquired forthe permanentcollection. This included 69 new works by female artists lof which 6 were newly represented in the collection), bTinging the gender ratio to 24.6% of women artists, and 36 new acquisitions of works by Black. Asian and ethnic minorty artists. Acquisitions 2023-24 Accepted in lieu of inheritance tax by HM Government from the estate of Isabella Anne Marshall Hewat and allocated to Pallant House Gallery Accepted in lieu of inheritance tax by H M Government from the eslate of Sinclair Hood and allocated to Pallant House Gallery Gift of Nan3 Shiomi Bequeathed by Alan Edward Fowler through Art Fund Bequeathed by Nina Drucker with Art Fund Support 25 29 Page 7 of 41 Pallant House Gallery Annual report and fIr￿n(la1 statements For the year ended 31 March 2024 The Golder- Thompson Gift Other works acquired through donationlgiftltransfer Artworks purchased or cornmissioned by Pallant House Gallery Number of new works by women artists (number of individual artists) 14 16 18 691221 58.5% 49133) 41.5% 3616} 30.5% 22 Number of new works acquired by men {number of individual artists) Number of new works by Black, Asian and ethnic minority artists (number of individual artists) Number of newly represented artists Number of newly represented female artists Number of newly represented male artists 16 Artists Represented in the Collertlon 202￿21 2021-22 2022-23 2023-24 Number of artists Number of male artists 896 981 1,045 788 175.4%) 257 (24.6%) 55 15.3%) 1,067 804 175.4%} 263 124.6Yts) 58 (5.4%) 693 177.4%) 203 122.6%1 38 14.2%) 745 175.9%) 236 124.1%) 47 14.8%) Number of female artists Number of Black, Asian & ethnic minority artists Conservation Treatment of 66 works was completed during the year, including the treatment and re-framing of significant new acquisitions by Marie Laurencin and John Craxton, and the conserrfation and mounting of 53 works on paper. In addition, we are undertaking a staged programrne of re-Ela2in8 key works and building our stock of standard frames for works on paper fitted with non-reflective. non-uv glass. This project will support preventative conservation measures particularly in the Historic House environs and improve the visitor experience by offering a greater clarity of view. External Loans During 2023-24, the Gallery lent 25 works to 11 drfferent venues including Royal Academy. Holburne Museum and National Portrait Gallery, and international venues FLAG Art Foundation. New York. USA. Stadel Museum, Frankfurt, Germany; and Hamburger Kunsthalle, Hamburg. Germany. Community Programme The Learning and Public Programmes team delivers a range of engagement opportunities for people of all ages to increase access to and enjoyment of art and creativity inspired by the collettion and exhibitions. During 2023-24, 560 activities were delivered. which were enjoyed by almost 5,400 Page 8 of 41 Pallant House Gallery Annual report and financial statements For the year ended 31 March 2024 participants. In addition, we delivered the final stage of the National Lottery Community Fund INLCFI Pallant Partners project. Learning and Publlc Programmes Area Total Partiupants Total Partklpatlons Total Acllvltles Formal education activity for children and young people (Encounter and Create workshops. School in Residence, and free self-led Nisits 5UPPOrted by Gallery resources) 1.700 2.040 103 Informal learning for children and families (free Open Days, holiday workshops and self-led visits) 1.851 1.851 31 Adult learning workshop5. talks and special events 1.526 1.526 54 Community Programme (weekly workshops. projerts and trips) 219 2,570 328 Pallant Partners NLCF project 254 44 Total SJ96 8,241 560 Partners in Art is the Gallerfs longstanding scheme, which matches Community Programme volunteers with participants in one-to-one art partnerships. These may involve studio visits or off-site meetings and, as a result, are recorded drfferently. There were approximately 840 additional participations in 2023-24. Key successes: Encounter and Create programme for schools and colleges officially launched followin8 previous pilots, and bookings progressed well. Introdtsced a teachers Continuing Professional Development programme for School in Residence participants to build teacher confidence. 'A Place of My Own, exhibition was 3 s￿nIfICant milestone in Community Programme development, with members exhibitin8 their work, created in response to the Gallery's major Gwen John exhibition, within a main gallery for the first time. Delivering a 'Cre3ting Community, symposium which explored values-led engagement. This wa5 the first professional development event of this kind delivered by the Gallery and very well attended, with representatives of over 50 cultural organisations from across the UK and Europe. Partnership working flourished, including deepenin8 relationships w¥th Chichester Pride and the University of Chichester to deliver special Summer Lates. A music programme was introduced in collaboration with the Royal Colle8e of Music and the Royal Academy of Music, and a co-curation project with Sanctuary in Chichester led to a print room exhibition. £121k of income was generated from grant5. donations. art and ticket sales. PaEe 9 ot41 Pallant House Gallery Annual report and financial ststements For the year ended 31 March 2024 Key challenges: Lack of alternative physical spaces within the Gallery, including studio space and classrooms, limits what can be delivered and the number of participants. However, staff are currently working at capacity, so any increase in physical space would need to be matched with additional staff support. Fundraising The Gallery drives income generation through a mixed funding model. Fundraising through philanthropy and partnerships continues to be important and is predominantly managed through the Development Team with sUPPOrt from the Development Advisory Group and other key members of the Gallery's Staff. All developrnent and fundraising activities were carried out in-house and no agencies or individual consultants were contractually engaged to raise funds on behalf of the Gallery. Such activities were compliant with appropriate codes and there have been no complaints about them. The Gallery generally focuses on wealthy individuals, trusts and foundations and statutory bodies as a source of funds, leaving members of the public a free choice whether to become a Friend or donate additionally when buying a ticket. Consequently, it is not necessary to have rneasures that specifically protect vulnerable people from fundraising, while care is given to ensuring the safety of all potential donors. Key fundraising income channels for 2023-24 were as follows- Individual giving Patrons Friends Major grfts Olher donations Gifted artwork Legary gifts Trusts & foundations Corporate sponsors and partnerships Statutory & public funding bodies Individual giving throu8h Friends, memberships and the Patrons pro8rarnme continues to be successful and provided a significant income stream of £161k and £155k respettively. In addition, the Gallery received legacy gifts and other donations from individuals of £274k. Gifted artworks from individuals, which are onty accepted once they have been vetted and approved by the Acquisition Commrttee, are another signrficant Sour￿ of support. During 2023-24 artwork valued at £681k was gifted tothe Gallery. Funds received through Chichester District Council I'CDCI of £130k were almost matched by fund5 from Arts Council England I'ACE,), National Lottery Community Fund and other Trusts of £124k. This included transition funding from ACE following the Gallery's loss of ACE National Portfolio Organisation status and associated grant. Page 10 of 41 Pallant House Gallery Annual report and financial statements For the year ended 31 March 2024 Corporate support remains the most challenging area for the Gallery. Funds secured through this channel totalled £47k in 2023-24. There is significant potential to grow this income channel. Buildings & Facilities Pallant House Repairs to the outside of the historic house. which is owned by CDC, have been identified as urgent for some time. These are necessaryto prevent further deterioration and leaks within the building. The executive team negotiated with CDC throughout the latter half of 2023 to ensure this was addressed. CDC appointed contractors, and repairs and decorative work to wood and brickwork at the rear of Pallant House began in April 2024. CDC is working with architects and conservation specialists to devise a method to ensure further water ingress does not occur via the parapet. These works concluded in early July 2024. Similar works to the front of Pallant House will be conducted by CDC'S contractors in autumn 2024. Satety & Security The Gallery has employed a key holding alarm response company since December 2023. Securitas are now the first responders to fire and intruder alarm call outs instead of Gallery staff. Fire Risk Assessment 3SFire. a company owned and Tun by Hampshire and Isle of Wight Fire and Rescue Authority, carried out a fire risk assessment of the site in January 2024. The report recorded no high priority issues, and the overall risk level is tolerable. Duty Managers The number of Duty Managers and key holders has been increased by the training of new members of staff, which has improved operational resilience. This sharing of knowledge and responsibility has also helped ease pressure on frontline staff and should help reduce staff turnover in the Visitor Services team. 7 North Pallant Significant repairs are required to the roof of 7 North Pallant. which will require scaffolding to the front of the property. Whilst this work is undertaken in autumn 2024, window frame repairs and redecoration will also be undertaken. l North Pallant To relieve the cramped working conditions in Pallant House, the Communications and Development teams moved into a new office at l North Pallant in January 2024. Page 11 of 41 Pallant House Gallery Annual report and financial ststements For the year ended 31 March 2024 Commercial Activities Pallant Café and Restaurant The Restaurant is an independent franchise which operates on the ground floor of the Gallery. A new contract was signed with Pallant Catering Services in October 2023 and runs until March 2026. The Restaurant had its most successful yearto date in 2023-24. 13rgefy due to the high level of visitor numbers, with gross sales exceeding £600k. The Restaurant contributes rental income and pays a profit share to the Gallery on sales. Pallant Bookshop The Bookshop is an independent franchise which ss a leading specialist bookshop for Modern British art and design. and the primary point of sales for the Gallery's publications and other merchandise. The Bookshop Director. Nicholas Higbee, is a regular attendee at the Galler24 %of 2022-23 %of £tKKJs totul Earned Income Adrni5sion Commercial £492 £170 £661 £338 £162 £500 19% Phlanlhropk lftmttutkns Arts Counol England National Lottery Cornmunity Fund Trusts £53 £73 £19 £20 £112 £23 £124 Stattstoryl G¢s%wnn*ntl Publk Chichester Distritt Counol HMRC Total E130 £222 £352 £130 E194 £324 12% Corporations Corporatè Total £47 £47 £15 £15 1% lrtdi¥idu41s Dodations Frlends Legaoes Patron5 Total £214 £161 £60 £iss £590 WA £243 £147 £527 £140 £L057 Other Gifted artwork InvestrnEnt income Miscellaneous Rentsl income £681 78 £26 Ello £1.195 £189 £340 £3 £75 £606 23% otal 968 IWA £L614 Reserves Policy and Going Concern Our reserves are set out in the accounts within the balance sheet and in more detail in note 21. The trustees have a reserves policy designed to ensurethatthe Gallery has adequate re5erve5 to carry out its charitable objectives including maintaining the assets entrusted to it. Endowment funds- There are four endowment funds that have varying terms. all established with the overarching objective of being invested to provide income to support 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 isthe policy of the trustees. Restrirted funds.. There are nurnerous restricted funds which are listed later in these accounts. Each fund relates to a separately identifiable activity that has attracted its own funding from various donors with the proviso that their support is to be applied only to that project. Normally the Gallery has agreed to fund any balance from its wider resources to ensure a successful outcome. These projects Page 14 of 41 Pallant House Gallery Annual report and financial statements For the year ended 31 March 2024 are usually short teim, typically completed within a year, and taken together represent the essence of the Gallery's core operation. Desi nated funds unrestricted The designated funds comprise of buildings and artworks. They were largely created historically by the provision to the charity of the Gallery buildin& along with funds held for related contingencies, and the collection of works of art donated or purchased from donations for display in the Gallery. These designated funds are illiquid. Trustees have reviewed the reserves policy during the year, which was last amended during 2017-18. and believe that it remains appropriate. The reserves policy is as follows". The Gallery should hold cash balances in unrestricted funds, of at least £21M),000 or, if greater, the cash projected to be required for its activities for the following two months. This is currently achieved through holding liquid account5 Wlthin cash and investment5. The endowment fund of £300.IJX) provided by the Friends in 2018119 should only be held in readily realisable investments so Ihat it acts as a second layer of reserves rf required to meet unexpected adverse circumstances. The other endowment funds should continue to include in excess of £500,000 of readily realisable investments that could be sold as a third layer of reserves, whilst otherwise continuing to provide income forthe core operation. This resep4e5 policy was met during 2023-24 and up to the date of signing this report. It continues to be reviewed annuallyand thetrustees have resolved that it should continue in force for a furtheryear. During the year, the Gallery restored operational capacity by investing in key management positions, including a Head of Development who is leading on fundraising. However, an uncertain funiJraisin8 climate remains and the loss of an annual Arts Council England ('ACE'I National Portfolio Organisation I'NPO,) grant of £91k has been keenly felt. Consequently, the trustees accept Ihat operating deficits are realistically unavoidable until higher leve15 of sustainable income can be secured, which in turn will mean it is likely the Gallery will continue to draw on reserves. Currentforecasts for 2024-25 showthat deficits should be contained comfortably within the level of reserves currently in place. Consequently, the trustees conclude that there are not any material uncertainties about the Gallery's ability to remain a 80in6 concern in the foreseeable future. Investment Policy and Objectives Under its Articles. the Gallery has the power to invest funds in the furtherance of its charitable objectives. Tlie Gallery's investment poliry is to grow the endowment funds and generate a reliable income stream to help fund operations. This total returns basis is based on a medium level of risk. Funds are invested over a 3-5 year term on a discretionary basis in a fund that has a strong ethical and sustainable ethos. The Gallerfs endowment funds are invested in Sarasin & Partners Endowments Fund for charities, which is a global multi-asset CAIF unit trust that adopts responsible ESG standards. In the financial year ending 31 March 2024, the Gallerls portfolio with Sarasin increased in value by £807k and generated dividends of £334k. Page 15 of 41 Pallant House Gallery Annual report and financial statements For the year ended 31 March 2024 Principal Risks and Uncertainties The trustees have a dutyto identify and reviewthe risks to which the Gallery is exposed and to ensure appropriate rneasures are being taken to mitigate these and controls a￿ in place to provide reasonable assurance. The Gallerfs Risk Register contains the principal risks that the trustees and executive have identified. and the mitigating actions to minimise these risks. Each risk is allocated a likelihood and consequence score, and responsibility for monitoring is assigned to a named member of staff. The trustees have delegated the review of the Gallery's Risk Registerto the Finance, Audit and Risk Committee {'FARC'), which last reviewed the Risk Register in June 2024. Ift addition, the Risk Register is regularly reviewed by the executive. In respert of buildings and contents, the risk of damage due to fire is controlled by an extensive fire detection and alarm system, whith is monitored 2417 and serviced annually. A team of trained Fire Marshalls and a Duty Manager are named on a daily list. held at reception. and are responsible for the safe and efficient evacuation of the galleries, and communicating and liaising with the alarm monitoring company and emergency services. An Emergenry Salvage Priority list is updated regularly to include works from the G311erfs collettion and works on loan, and their location. The impact of any Ioss would also be mttigated through extensive insurance cover, both commercial and through the Government's Indemnity Scheme. The FARC meets every quarter to review the current and projected financial position of the Gallery, so that timely corrertive action can be instigated to minimise the impact. Structure, Governance and Management Legal Status of the Gallery Pallant House Gallery is a charitable company limited by guarantee, incorporated in England and Wales on 16 February 2004 and registered as a charity in England and Wales on 2 March 2004. The charitable objects and powers of the company are set out in its articles of association. The trustees, who are also the Directors for the purpose of company law, and who senied during the year are listed in the 'Referen￿ and Administrative Inforniation, section at the beginning of this report. None of the trustees has any beneficial interest in the charitable company. All the trustees are members of the charitable company and guarantee to contribute £10 in the event of a winding up. Appolntrnent of Trustees Trustees are proactively selected and appointed to ensure that a broad range of relevant skills, experience and diversity are represented across the trustee board. The Nominations Committee (a formal sub-committee of the Board of Trustees) is responsible for Trustee recruitment and succession planning and Chichester Distrirt Council also has the right to appoint and remove one Irustee. A skills audit is undertaken biennia Ily to identify any gaps and priorities, and recru itment takes place by open advertlsement and interview. The Nominations Committee recornmends all Trustee appointment5 to the Board for formal approval. Five new Trustees were appointed by the Board during the period of this report. Page 16 of 41 Pallant House Gallery Annual report and financial statements For the year ended 31 March 2024 Trustee Induction and Training The company secretary provides or arranges external induttion training to each newly appointed trustee. They are required to complete a declaration of Fit and Proper status, in line with HMRC'S Fit and Proper Persons Test. and receive key governance documentation. including the articles of association, annual financial statements and the Charity Governance code. The Gallery also maintains a secure online Trustee Portal, where members can access key governance and operational documents. The trustees are responsible for the overall governance of the Charity. They delegate all day-to-day responsibilities for ru nning the organisation to the Director. Simon Martin. As mentioned in the HR section above, the Gallery also created two new senior executive roles to support the Director during 2023-24. The Finance Audit & Risk Committee and Nominations Committee. as well as a number of informal Advisory Groups, have been established to ensure that the trustee5' governance responsibilities are fulfilled. Terms of Reference exist for each of these bodies, and they are reviewed and approved by the 803rd. All trustees give their time voluntarily and receive no benefits from the charity. Any expenses reclaimed from the charity are set out in note 8 to the accounts. Remuneration Policy for Key Management Personnel The outcome of the annual staff pay review and remuneration levels for key management personnel are approved by the Finance, Audit & Risk Committee. within the parameters of the Gallerfs salary banding system Iwhich was introduced in autumn 20221. Aformal Remuneration Policy was approved by the Board early in the financial year 2024-25. The trustee board is responsible for the appointment and performance management of the Director. The Senior Pay disclosures include the Director and senior members of the leadership team. Equality and Diversity The Gallery is committed to equality, diversity and inclusion within all elements of its operation and programme. The Gallery has a number of written policies in place to reflect our legal obligations and organisational requirements. Mandatory EDI training was introduced for staff in 2023 and this will be rolled out to volunteers in the second half of 2024. A new Equality Diversity and Inclusion Action Plan was created to reflect the Business Plan 2024-26 and approved by the 8oard in June 2024. Related Partles and Relation5hlps with Other OrEanSsations Prior to the merger on 1st April 2018. the Gallery enjoyed a close relationship with the Friends of Pallant House, whose objectives were financial and other support for the Gallery. The activtty of the Friends of Pallant House is now undertaken directly by the Gallery. Until 31 March 2020, a trading subsidiary, Pallant House Gallery Services Limtted, carried out commercial activities related to the Gallery and received income from the restaurant and the bookshop. After that point, this was carried out by the parent Gallery company. There is also a dormant subsidiary. Pallant House Enterprise5 Limited, with an historical involvement in collection of subscription5 from Friends. Both subsidiaries will be closed after the year end. Funds Held as Custodian Trustee on Behalf of Others The charity does not hold funds as custodian trustee on behalf of others. Page 17 of 41 Pallant House Gallery Annual report and financial statements For the year ended 31 March 2024 Statement of Responsibilities of the Trustees The trustees (who are also directors of Pallant House Gallery for the purposes of company law) are responsible for preparing the trustees, annual report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards {United Kingdom Generally Accepted Accounting Practice). Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and group and of the incominE resources and application of resources. including the incorne and expenditure, of the charitable company or group for that period. In preparing these financial statements, the trustees are required to: Select suitable accounting policies and then apply them consistentlyp Observe the methods and principles in the Charitie5 SORP; Make judgements and estimates that are reasonable and prudent. State whether applicable UK Accounting Standards and statements of recommended practice have been followed, subject to any material departures disclosed and explained in the financial statements- and Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation. The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. In so far as the trustees are aware: There is no relevant audit information of which the charitable company's auditor is unaware; and The trustees have taken all steps that they oughtto have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information. The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the Llnited Kingdom governing the preparation and dissemination of financial statement5 may differ from legislation in other jurisdictions. Members of the charity Buarantee to contribute an amount not exceeding £10 to the assets of the company in the event of winding up. The total number of such guarantees at 31 March 2024 was IS (2023: 141. The trustees are members of the charity. but this entitles them only to voting rights. The trustees have no beneficial interest in the charity. Page 18 of 41 Pallant House Gallery Annual report and financial statements For the year ended 31 March 2024 Auditor Appolntment Sayer Vincent LLP was rtrappointed as the charitable companws audttor during the year and ha5 expressed its willingness to continue in that capacity. Disclosure of Informatlon to Audltor Each of the trustees has confirmed that there is no information of which they are aware which is relevant to the audit. but which has not been made available to the auditor. They have further Confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information. The trustees, annual report has been prepared in accordance with the special provision5 applicableto companies subject to the small companies. regime. The trustees, annual report was approved by the trustees on 27 September 2024 and signed on their behalf by: Elizabeth Davis Trustee & Com an Secreta Page 19 of 41 Pallant House Gallery Annual report and financial statements For the year ended 31 March 2024 Independent auditor's report to the members of Pallant House Gallery Opinion We have audited the financial statements of Pallant House Gallery (the 'parent charitable companWI and its subsidiary Ithe 'group') for the year ended 31 March 2024 which comprise the consolidated statement of financial activities, the group charitable company balance sheet, the consolidated statement of cash flows and the notes to the financial statements. including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards. including FRS 102 The Financiol Reporting Standord applicable in the UK and Republic of Irelond (United Kingdom Generally Accepted Accounting Practice). In our opinion, the financial statements: Give a true and fair view of the state of the group's and of the parent charitable company's affairs as at 31 March 2024 and of thegroup's incoming resources and application of resources. including its income and expenditure, forthe year then ended Have been properly prepared in accordance with United Kingdorn Generally Accepted Accounting Practice Have been prepared in accordance with the requirernents of the Companies Act 2006 and the Charities Att 2011 Basis for opinion We conducted our audit in accordance with International Standards on Auditin8 {UK) (ISAS {UKI) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the group financial statements section of our report. We are independent of the group and parent charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, includin8 the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilities in actordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclusions relating to going concern In audrting the financial statements,'we have concluded that the trustees, use of the goinE concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed. we have not identified any material uncertainties relating to events or conditions that. individu311y or collectively. may cast significant doubt on Pallant House Gallery's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. Other information The other information comprises the information included in the trustees, annual report. other than the group financial statements and our auditorfs report thereon. Page 20 of 41 Pallant House Gallery Annual report and financial ststements For the year ended 31 March 2024 The trustees are responsibleforthe other infomiation contained within the annual report. Our opinion on the group financial statements does not cover the other information, and, except to the extent otherwise explicitly stated in our report, we do not express any form of aSSUTance conclusion thereon. Our responsibility is to read the other information and. in doing so, consider whether the other information is materially inconsistent with the group financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements. we are required to determine whether this give5 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 misstaternent of this other information, we are required to report that fact. We have nothing to report in this regard. Opinions on other matters prescribed by the Companies Act 2006 In our opinion, based on the work undertaken in the course of the audit: The information given in the trustees, annual report. for the financial year for which the financial statements are prepared is consistent with the financial statements. The trustees, annual report has been prepared in accordance with applicable legal requirements. Matters on which we are required to report by exception In the light of the knowledge and understanding of the group and the parent charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the trustees, annual report. We have nothing to report in respect of the following matters in relation to which the Companies Art 2006 and Charities Act 2011 requires us to report to you if. in our opinion: Adequate accountin8 records have not been kept by the parent charitable company, or returns adequate for our audit have not been received from branches not visited by us; or The parent charitable companyfinancial statements are not in agreement with the accounting records and returns. or Certain disclosures of trustees, remuneration specified by law are not made: or We have not received 311 the information and explanations we require for our audit. or The directors were not entitled to prepare the financial statements in accordance with the small companies, regime and take advantage of the small companies. exemptions in preparing the trustees. annual report and trom the requirement to prepare a Strategic report. Responsibilities of trustees As explained more fully in the statement of trustees, responsibilities set out in the trustees, annual report, the trustees (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 satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free frorn material mtsstatement. whether due to fraud or error. Page 21 of 41 Pallant House Gallery Annual report and financial statements For the year ended 31 March 2024 In preparing the financial statements. the trustees are responsible for assessing the group's ability to continue 3$ a goinE conrp.rn, disclosin& as applicable. matters related to going concern and using the goinE concern basis of accounting unless the trustees either intend to liquidate the group orthe parent charitable company or to cease operations, or have no realistic alternative but to do so. Auditor's responsibilities for the audit of the financial statements We have been appointed auditor Under the Companies Act 2006 and section 151 of the Charites Act 20113nd report in accordance with those Arts. Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement. whether due to fraud or error. and to issue an auditorfs report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit condurted in accordance with IW IUK) will always detert a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate. they could reasonabty be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities. includin8 fraud. are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misslatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities. including fraud are set out below. Capability of the audit in detecting irregularities In identifying and assessing risks of material misstatement in respect of irregularities, includin8 fraud and non-compliance with laws and regulation5. our procedures included the following: We enquired of management and the audit and risk committee, which included obtaining and reviewing supporting documentation, concerningthe group's policies and procedures relating to: Identifyin& evaluatin& and complying with laws and regulations and whether they were aware of any instances of non-compliance: Detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspetted, or alleged fraud: The internal controls established to mitigate risks related to fraud or non 786.962 1.249.714 320.133 20.136 1653.446) Orher galn5 1 (105se51 Net movement ln funds 572,758 11 io.oos) 786.962 1,249,714 320,133 20.136 1653.446) Toral funds bmught forward Toial funds cathod l•p*•rd 31.962.51 ? 494.349 11.078.690 43.535,556 31.642,384 384.344 11.865.652 44.785.270 31.962.517 474.213 11,732.136 43.848.733 J2.535.275 494.349 11,078.690 43.53S.SS6 All of the abtyt resylls art d*rl¥t¢l from rrJntlnuln9 aah*i¢s. Yhere were no ￿hOT rtcvgnlsed Or ltysses othv ih•n Ihose siaied abD¥Q. Movemenrs In lunds are disdostd lty Nore 21 a to lh¢ financi￿ siaiemefits. Page 24 of 41 Pallant House Gallery Balance sheet Company no. 05045130 l M rch20 2024 2023 Note Fixed assets: Tangible assets Heritage assets Investments 8.008.520 24.589.433 11,050,973 8.284,931 23.908,483 10.217,860 43.648,926 42.411,274 Current assets: Stock Debtors Cash at bank and in hand 15.867 594.140 793.203 30,390 488,631 955,636 1.403,210 1.474.657 Liabilities: Creditor5.' amounts falling due within one year 1266,866) (3 50,3 75) Net current assets 1.136.344 1,124,282 Total net assets 44.785.270 43.535.556 The funds of the charity: Unrestricted income funds= Designated funds General funds Endowment 22a 31,698.169 837.106 1,796.929 31.302,555 659,962 1.746,963 Total unrestricted funds 34.332,203 33.709.480 Endowment (restricted) Restricted income funds 10.068,723 384,344 9.331,727 494,349 Total charlty funds 44,785,270 43.535,556 Approved by the trustees on 27 September 2024 and signed on their behalf by.. Elizabeth Davis Trustee & Company Secretary Page 25 of 41 Pallant House Gallery Statement of cash flows 2024 2023 Cash flows from operatlng actlvltles Nei income l (expenditure) for the reporting period las per the statement of financial activities) Depreciation charges Donations of heri(age assets included in income (Cainslllosses on investmenis Dividends, interest and rent from investments Ilncrease)Idecrease in stock5 Ilncrease)Idecrease in debtors Increa5el(decreasel in creditors 1.249.714 (313.177) 304,585 (680.950) (833.113) 1378.186) 14.523 (105.509) (83.509) 306,402 1188,875) 633,427 (339,709) 5,438 199,326 11,180 Net cash provlded by I lused in) operatlng actlvlties Cash flows from Investlng actlvltles: Dividends and interest from investments Purchase of fixed assets (512,HS) 314.012 378.186 (28.174) 339.709 141,3581 Net cash provlded by Investing activities 350.012 298.351 Change In cash and cash equivalents in the year Cash and cash equivalents at the beginning of the year Change in cash and cash equivalents due to exchange rate movements (162.433) 955.636 612.363 343.273 Cash and cash equivalents at the end of the year 793,203 955.636 Page 26 of 41 Pallant House Gallery Notes to the flnanclal staremenrs Fo eare l Accountlng policies a) Statutory Inforniatlon Pallant House Gallery is a chariiable company limired by guaranree and is incorporated in England & Wales. Pallant House Gallery is an incorporated charity re9lStered with the Charity Commission for England and Wales. The reglsrered office address 15 Pallant House Gallery. 8-9 North Pallant, Chichester. West Sussex. POI 9 1 TJ. b) Basls of preparation The financial statements have been prepared in accordance with Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 1021 Icharities SORP FRS 1021 and the Companies Act 2006. These financial statements reflect only the results of the charity. Pallant House Gallery. Its wholly-owned subsidiaries Pallant House Gallery Services ￿rnIted and Pallant House Enterprises Limited. are both dormant and do nor hold any material asset or liability valve. Transartions and balances between the charity and its subsidiaries have been eliminated frorn the consolidated financial statements. Balances betyveen the entities are disclosed in the notes of the charity'5 balance sheet. A separate Statement Of financial activities. or income and expenditure account, for the charity itself Is noi presented because the charity has taken advantage of the exemptions afforded by section 408 of the Companies Aci 2006. Assets and liabilities are initially recognised at historical cost or transaction value unless othenvise stated in the relevant accounting policy or note. In applying the financial reporting framework. the trustees have made a number of subjective judgements, for example in respect of si9nificant accouniin9 estimates. Estimates and judgements are conrinually evaluated and are based on historlcal experience and other factors. including expectaiions of future evenis that are believed to be reasonable under the circumsrance5. The narure of the estimation means the actual ouicomes could differ from those estimates. Any significant eslimates and jyd9ements affeciing these financial statements are detailed within the relevant accounring policy below. c) Publlc benefit entlty The charlty meets the definition of a public benefir enrity under FRS 102. The trusrees do not consider that there are any sources of estimation uncertainty at the reportin9 date that have a significant risk of causing a material adjustment to the carrying amounrs of assers and liabilities within the next reporting period. d) Golng concern The trustees consider that there are no material uncertainties about the charity's ability to continue as a 90ing concern. Financial projections have been prepared that show that the existin9 cash resources supported by the ability io realise investments will be sufficient to allow the Callery to continue operating for the foreseeable furure and in particular. for the twelve months following the signing of these accounts. Furrher reference can be found in the section, 'Reserves Policy and Going Concern. in the Trustees. Report. e) Income Income is recognised when the charity has entitlement to the funds. any performance conditions artached to the income have been met. it is probable that the income will be re(eived and that the amount can be measured reliably. Income from 9overnmenr and other grants, whether 'capital' grants or 'revenue' grant5, is recognised when the charity has entitlemenr to the funds. any performance conditions attached ro the grants have been met. it is probable that the income will be received and the amount can be measured reliably and is not deferred. For legacies, entirlement is raken as the earlier of the date on which either.. the charity is aware that probate has been granied, the estate has been finalised and notificaiion has been made by the executorlsl to the charity that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy. In whole or in part, is only considered probable when the amount can be measured reliably and the chariry has been notified of ihe executor's inieniion to make a distribution. Where legacies have been notified io the chariry, or the charity is aware of the granting of probate. and the criteria for income recognition have not been met. then the legacy 15 a treated as a contingent asset and disclosed if marerial. Income received in advance of the provision of a specified ser¥ice is deferred until the criteria for income recognltion are met. Page 27 of 41 Pallant House Gallery Notes to the financial Statements l Accounting policies (continued) el Income Friends and Parron Subscriptions are recognised when received. Entrance fees are recognised in income when they are receivable except for group deposits which are recognised when the group visii takes place. Admission income for exhibitions is recognised when the rickets are 501d. Ticket income relatin9 to courses. events and group bookings is reco9nised when they take place. Book and other sales income are recognised when receivable. Donatlons of glfts. servlces and facilitles Oonated professlonal serwces and donated facilities are recognised as income when the charity has control over the item or received the service, any conditions associated ￿th the donation have been met, the receipi of economic benefir from the use by the charity of the item is probable and that economic benefii can be measured reliably. In accordance wirh ihe Charities SORP (FRS 102). volunteer time is not recogni5ed. Refer to the trustees. annual report for more information about volunteers, contribution. On receipt, donated gifts. profe551onal Services and donaied facilities are recognised on the basis of the value of the gift to the charity. which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market." a correspondin9 amount is then reco9nised in expenditure in the period of receipt. g) Interest receivable Interest on funds held on deposir Is included when receivable and the arnount can be measured reliably by the charity.. this is normally upon notification of rhe interest paid or payable by the bank. h) Fund accountlng Restricted funds are to be used for specific purposes as laid down by the donor. Expenditure which meets these criteria Is charged to the fund. Unrestricted funds are donations and other incomin9 resources received or 9enerated for charitable purposes. Designated funds are unrestricted funds earmarked by the rrustees for particular purposes. Endowment funds are split betsveen those designated thus by donor stipulation and those by reversible trustee decislons. The capital of the donor stipulated endowments must be maintained. although the income can be utilised in accordance with the terms of ihe endowment. l) Expendlture and Irrecoverable VAT Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party. it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings". Costs of raising funds relate to the costs incurred by the charity in inducing third parties to make voluntary contributions to it. as well as the cost of any activities with a fundraising purpose. Expenditure on charitable actiwties includes the costs of delivering services. exhibltions and other educational activities undertaken to further the purposes of the charity and their associated support costs. Other expendirure represents those items not falling into any oiher heading. Irrecoverable VAT is charged a5 a central support cost or included in the cost of a fixed asset. J) Operatlng leases Rental charge5 are charged on a straight line ba515 over ihe term of the lease. Page 28 of 41 Pallant House Gallery Notes to the financial statements l Accountlng policies (contlnued) k) Tangible fixed assets Items of equipment are capitalised where the purchase price exceeds £1 .000. Depreciarion costs are allocated to aaivities on the basis of the use of the related assets in those actiwties. Assets are reviewed for impairment if circumstances indicate their carrylng value may exceed their nei realisable value and value in use. Major components are treated as a separate asset where they have significantly different patterns of consumption of economic benefits and are depreciated separately over its useful life. Where fixed assets have been revalued, any excess between the revalued amount and the historic cost of the asset will be shown as a revaluation reserve in the balance sheet. Depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value tsver its expected useful life. The depreciation raies in use are a5 follows.. Buildings Plant & machinery Fixrures, fitting5 and equipmeni Artwork (all purchased) 50 years 15 years l O years not depreciated 11 Heritage assets A heritage a55et is defined as "a tangible asset with historical, artistic, scientific, technological, geophysical or environmenral qualities that is held and maintained principally for its contribution to knowledge and culture. The Gallery has estimated a value in these financial statements in respecr of it5 various collections of artwork, which were all gifted to it (purchased artwork is categorised within tangible fixed assets). Any acquisitions are shown eirher at cost or in the case of donations. at an estimated valuation on the date of receipt. Any gains or losses on revaluation, if they rake place, would be recognised in the Statement of Financial Activities. m) Investments Invesrments are a form of basic financial instrument and are initially reco9nised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price. Any change in fair value will be recognised in the statement of financial activities. Investment gains and losses, whether realised or unreali5ed. are combined and shown In rhe heading "Net gainsiiiosse5) on invesiments" in ihe statement of financial activitles. The chariiy does not acquire put options. derivatives or other cornplex financial insiruments. n) Investments in subsidlarles Investments in subsidiaries are at cost. o) Stocks Stocks are made up of catalogues and are stated at the lower of cosr and estimated selling price less costs to complete and sell. Provision is made where necessary for obsolete. slow moving and defective Stocks. p) Debtors Trade and other debtor5 are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discount5 due. q) Cash at bank and In hand Cash ai bank and cash in hand includes cash and short term hi9hly liquid investments with a shon maturity of three months or le55 from the date of acquisltion or openin9 of the deposit or similar account. r> Credltors and provision5 Creditors and provisions are recognised where the charity ha5 a present obligation resultin9 from a pasr event ihat will probably result in the transfer of funds to a third party and rhe amount due to settle the obli9aiion can be measured or esiimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due. s) Flnanclal Instruments The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subseouently measured at their settlement value. t) Pensions Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due. Page 29 of 41 Pallant House Gallery Notes to the financial statements 2 Income from donations and legacies 2024 Total Unrestricted 2023 Total Unrestricted Re5tricied Restricted Art5 Council England grant Assistance to acquire arThvork Chichester DC grant Corporate membership Oannatt Trust gift Donations and gifts Friends & Patrons subscriptions Gift Aid on income Gifts of artwork Grant5 for specific activities Legacies 52.948 7.000 52.948 27,530 130.000 1.667 90,759 12.698 130.000 5.000 150,000 57,305 286,596 31,987 188,875 (17.578) 302,007 90,759 14,028 130,000 5,000 150,000 57.305 286.596 31,987 188,875 {17.578) 377.007 20,530 130,000 1.667 1,330 114.634 375.851 34.671 680.950 114.634 315,851 34.671 680.950 60.000 60,000 7S,000 1,358.302 59.948 1.418.250 1.237.649 76,330 1,313,979 3 Income from charitable actlvitles 2024 Total Unrestricted 2023 Total Unrestricted Restricted Resrricted Collection management Charges to owners Grants & donations 8.429 1.371 8.429 1.371 2,978 1.083 2.978 35.033 33.950 sub-total.for collection managemeni 9.800 9.800 4.061 33.950 38,011 Exhlbltlons & dlsplays Admission income Charges ro other gallerie5 Corporate sponsorship Donations to exhibitions Exhibition tax relief Gift Aid on enrrance fees Supporters, Circle 491.586 491,586 13.130 44,847 36.346 1 $4.723 32,305 21.159 338.010 338,010 13.130 44.847 15.433 io,000 i 0,000 21,420 135,000 26,959 95,091 20.913 154,723 32.305 21.420 135.000 26.959 21.159 95,091 Sub-total for exhibitions & displays 699.527 94,569 794.096 521.389 105,091 626,480 Publlc programmes Courses earned income Donations Grants income Natlonal Lottery Community Fund Sale of artsvork 29,663 8,621 2,985 4,165 22,944 47.874 1.860 32.648 12.786 22.944 47,874 4.890 18.486 230 18.716 700 38.491 18,640 39,191 18,640 4.748 3.030 4,748 Sub-total for public programmes 41,314 79,828 121.142 23.934 57.361 81,295 Publishing Advertising income Grants Image rights revenue Sales of publications 15,819 8,000 1.464 111,656 15.819 8.000 1,464 111.656 73.452 13,452 1,449 124.450 1,449 124,450 Sub-total for publishing 136,939 136,939 139.3SI 139,351 Total income from charitable artivities 887.580 174.397 1.061.977 688.735 196.402 885,137 Page 30 of 41 Pallant House Gallery Notes to the financlal statements d31 24 4 Income from other trading actiwties 2024 Total Unrestricted 2023 Total Unrestricted Restricted Restricted Franchisees. rental income Gallery hire incorne Other income 108,516 1.090 108.516 1.090 70.684 4.364 1620) 70.684 4,364 16201 109,606 109.606 74.428 74,428 S Income from Investments 2024 Total Unrestricted 2023 Total Unrestricted Restricted Restricted Dividend5 from endowment Rental income Other inve51ment income 334,059 35.750 ,377 334.059 35.750 ,377 299,857 36.850 3,002 299.857 36,850 3.002 378.186 378.186 339.709 339,709 Page 31 of41 ht House fAlbEry Not*s to thÈ finar*lal statsm•nts 6a Afiawsls ol 0x￿ndItu￿ (currnvtht￿ar> ColknH>h Exhibi￿￿5 b*t & disp￿y% wogramrne5 G¢¥*mance C05r5 Support 2024 Tot*1 2023 Total runds Fvbth"5&iry Staff