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2023-03-31-accounts

Registered number: 04899786 Charity number: 1121755

THE NEW ART EXCHANGE LIMITED

(A company limited by guarantee)

TRUSTEES' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

THE NEW ART EXCHANGE LIMITED

(A company limited by guarantee)

CONTENTS

Page
Reference and administrative details of the Company, its Trustees and advisers 1
Trustees' report 2 - 13
Independent auditors' report on the financial statements 14 - 17
Consolidated statement of financial activities 18
Consolidated balance sheet 19 - 20
Company balance sheet 21 - 22
Consolidated statement of cash flows 23
Notes to the financial statements 24 - 43

THE NEW ART EXCHANGE LIMITED

(A company limited by guarantee)

REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 MARCH 2023

Trustees S Gill (resigned 24 November 2022)
C M Khera (resigned 24 November 2022)
L McDonald, Chair of Trustees (deceased 28 April 2023)
Professor C O'Brien (OBE)
A Akomfrah
J J Anand
M Dave
M Hussain (resigned 24 November 2022)
R E Pinchbeck
S Gambrah, Chair of Trustees (appointed 14 September 2023)
L A M Charles (appointed 14 September 2023)
Company registered
number
04899786
Charity registered
number
1121755
Registered office
39 - 41 Gregory Boulevard
Hyson Green
Nottingham
NG7 6BE
Chief executive officer
S E Said
Independent auditors
PKF Smith Cooper Audit Limited
Statutory Auditors
2 Lace Market Square
Nottingham
NG1 1PB
Bankers
National Westminster Bank plc
16 Long Row
Nottingham
NG1 2JX

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THE NEW ART EXCHANGE LIMITED

(A company limited by guarantee)

TRUSTEES' REPORT FOR THE YEAR ENDED 31 MARCH 2023

The Trustees present their annual report together with the consolidated audited financial statements of the Company and its subsidiary undertaking for the year 1 April 2022 to 31 March 2023. The Annual report serves the purposes of both a Trustees' report and a directors' report under company law. The Trustees confirm that the Annual report and financial statements of the charitable company comply with the current statutory requirements, the requirements of the charitable company's governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019).

Since the group and the Company qualify as small under section 383 of the Companies Act 2006, the Group strategic report required of medium and large companies under the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 has been omitted.

Contents

1. Vision, Mission and Values

2. Chair's Introduction

3. Exhibitions

4. Engagement, Outreach and Talent Development

5. Sustainability

6. Team Members

7. Board Members

8. Financial Review

9. Structure, Governance and Management

Objectives and activities

a. Policies and objectives

1. Vision, Misson and Values

Arts from diverse cultures for all

Mission

To stimulate new perspectives about the value of diversity in art and society

NAE will champion, embrace and engender cultural diversity in all that we do. We will play a leading and stimulating role in the region to ensure that diversity resonates more widely at a national and international level. Through our commitment to informing and promoting the relationship between art and society, NAE will strive to make increasingly visible the contribution of diverse voices to this agenda.

Values

In setting objectives and planning for activities, the Trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit, including the guidance 'Public benefit: running a charity (PB2)'.

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THE NEW ART EXCHANGE LIMITED (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

Achievements and performance

a. Review of activities

2. Chair's Introduction

A Year of Transformation and Ambition at NAE

Dear friends and supporters of New Art Exchange,

As the newly appointed Chair of the Board, I am honoured to present the annual report for NAE, reflecting on a year that has been transformative, ambitious, and dedicated to our mission of promoting diverse art and cultural experiences.

National Portfolio Organization (NPO) Status: A Milestone Achievement

The year marked a significant turning point for NAE as we renewed NPO status and received the largest uplift from Arts Council England in the country. This achievement solidifies our position as a gallery of national significance, and it reflects our ambition to become a national and international model of citizen-led galleries and a leader in promoting Global Ethnic Majority leadership within the cultural sector.

Strengthening Governance: A Vital Review

In our pursuit of excellence, we initiated a thorough governance review to strengthen our Board. This process ensures that our leadership is equipped to guide NAE in realising its vision and fulfilling its mission. Our governance structure is a cornerstone of our commitment to effective decision-making and transparent operations.

Funding Renewal and Vision Renewed

Our ongoing partnership with the Freelands Foundation continues to strengthen our vision. We remain dedicated to delivering a meaningful programme for our neighbourhood and the cultural sector. We are seeing a growth in our commitment to supporting and empowering underrepresented voices and its impact on our wider community.

In Loving Memory: Leslie and Eddy

It is with deep sadness that we bid farewell to Leslie McDonald and Eddy Maxwell, both of whom served as previous Chairs of NAE and contributed significantly to our organisation. We honour their memory and their dedication to our mission.

A Heartfelt Thank You

Lastly, I would like to extend our deepest gratitude to all our supporters, including the team at NAE, board members, funders, and the incredible artists and communities we have had the privilege of working with. Your ongoing support is instrumental in our continued success.

Looking ahead, we are filled with excitement and determination. NAE remains committed to its mission of promoting diverse arts and cultures, fostering inclusivity, and achieving excellence. Together, we will continue to be a beacon of change and transformation.

Samori Gambrah, Chair of Trustees

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THE NEW ART EXCHANGE LIMITED

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

Achievements and performance (continued)

3. Exhibitions

TRINITY BY HETAIN PATEL MAIN GALLERY 29 JAN – 14 MAY 2022

In partnership with John Hansard Gallery, NAE presented the largest solo exhibition to date by acclaimed artist Hetain Patel. It featured a trilogy of films created between 2015 and 2021, including his most ambitious to date, Trinity.

The films, Trinity (2021), Don’t Look at the Finger (2017) and The Jump (2015) brought together the different facets of the rich filmic world the artist had been creating over the past five years. New sculptural works, which incorporated costumes, and action figures of the films’ characters were specially created for the exhibition and were also on display.

NAE OPEN 2022 11 JUNE - 3 SEPTEMBER 2022 MAIN GALLERY

The financial year started with the return of the NAE Open presenting painting, drawing, video, live art, photography, textiles and sculpture. This dynamic exhibition was created through a competitive, open application process for Nottinghamshire based artists and Global Majority artists living anywhere in the UK.

Tasked to select innovative and high-quality artworks which address important societal concerns, a noted judging panel chose from over 300 incredible submissions. The result is an eclectic and compelling collection of over 40 artworks which spoke to the critical issues of the day. The NAE Open intends to be a platform that supports the development of artists and raises their profile. Beyond the public exhibition itself, seven prizes were awarded.

ART OF BELONGING 11 JUNE - 25 JUNE 2022 MEZZANINE GALLERY

This vibrant exhibition showcased the art created by students from NEST (Nottingham Education Sanctuary Team), a full-time educational provision for asylum seeker and refugees aged 15-19 years. These young people, many of them unaccompanied children, worked with artists, New Art Exchange and the city’s cultural venues to consider what it is to ‘belong’ in a host city. What does it take to feel socially and culturally ‘at home’ and can the arts help in this process? As well as acquiring new art and design skills over 30 sessions, the participants enlivened every workshop with their distinctive cultural contributions from Sudan, Eritrea, Iran, Afghanistan and other countries. This was a University of Nottingham research project in partnership with Lund University, Sweden, and NAE. The Art of Belonging project was funded by JPI Urban Europe: Urban Migration/ ESRC/AHRC/FORMAS.

BILLY DOSANJH [TRAVELLER, YOUR FOOTPRINTS] 23 SEPTEMBER 2022 - 7 JANUARY 2023 MEZZ GALLERY

Billy Dosanjh is an artist, filmmaker and story-teller whose practice pays tribute to every displaced person. Born and raised in the Black Country area of the West Midlands, he has built a body of work that explores the lives of South Asian empire workers who arrived in this blue-collar region in the last throes of its industrial might. Drawn from his lived experience and the stories recounted by his family and community, Dosanjh’s work documents and poetically interprets the incredible journeys of these marginalised individuals and the generations that followed them. In doing so, Dosanjh brings to the fore an important yet missing visual vernacular of a people and

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THE NEW ART EXCHANGE LIMITED (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

Achievements and performance (continued)

place.

COMMUNITIES IN MOTION 23 SEPTEMBER 2022 - 7 JANUARY 2023 STREET GALLERY

Situated outside the NAE in the Street Gallery, Communities In Motion was an exhibition curated by Lisa Robinson with local photographer Tom Morley. It presented a series of photographs of local Black centres that connect to the history of past, present and future of Black activism in Nottingham. The exhibition questioned: is there a need for a physical Black centre of activism in the city?

JOURNEY OF THE MIND 28 JANUARY – 22 APRIL 2023 MAIN and MEZZAININE GALLERIES

Conceived by arts organisation WSWF, and supported by Arts Council England, Journey of the Mind brought Sikh teachings and heritage to a contemporary context to spark conversations and encourage exchange. Going beyond racial and religious boundaries, this travelling exhibition aimed to evoke a sense of curiosity about the internal journey of the mind and its positive effects on people’s lives. Featuring figurative drawings and digitally created paintings by Canadian artist Kanwar Singh and short films by British animator Christian Wood.

RESIDENCIES

In the summer of 2022, NAE launched a new and regular artist-in-residence programme. Reside, featuring Ioney Smallhorne and Mita Solanky (2 July - 3 September 2022) invited artists and creative groups to reside in NAE, where they could collaborate and connect with our wider community to generate inspiring ideas, develop new initiatives and nurture their practice. Smallhorne and Solanky took up residence in our Mezzanine Gallery space, using our building as a base to create work and engage with different groups. Smallhorne used the opportunity to continue research on her project titled, Jamaica and Her Daughters; A Collection of Poetry and Prose, whilst Solanky explored creative ways to grow, prepare, and eat food in a way that creates a deeper connection with the earth.

NAE’s artist-in-residence programme continued with Re-frame (1 Jan – 31 March 2023), an exploration of dance outside of traditional dance spaces. The artist selected for Re-frame was Solomon Berrio-Allen, an artist of motion, choreographer, and movement facilitator working in the field of dance. Re-frame was a collaboration with FABRIC (Dance4 and DanceXchange) and was designed for artists working in the field of dance, movement and/or choreography to experiment with cross disciplinary practice in the context of a visual art gallery and to produce a new piece of work. Solomon used NAE’s space as a residing studio, where he researched, tested and experimented with new ideas, with support from the creative teams at NAE and FABRIC. Re-Frame was financially supported by Garrick Charitable Trust and Jerwood Arts Development Programme Fund.

Engagement, Outreach and Talent Development

NAE’s various engagement programmes continued during the period, comprising of a series of new and further developed programmes that targeted Global Ethnic Majority and other marginalised individuals to create lifeenhancing opportunities, new audiences for the arts and importantly, new diverse talent within the arts.

Our YOU programmes offered a range of opportunities for individuals and groups to shape and lead positive change in their communities. By supporting community-led events, developing leadership and entrepreneurship skills, or learning and leading in festival production and management, these programmes were designed to foster creativity, collaboration, and social impact.

Participants in these programmes receive specialist training, tailored mentoring and coaching sessions,

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THE NEW ART EXCHANGE LIMITED (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

Achievements and performance (continued)

networking opportunities, and individualised feedback from industry experts. With a focus on diversity and inclusion, these programmes welcome applicants from all backgrounds and are especially interested in supporting applications from the Global Ethnic Majority. By offering practical skills and support, as well as opportunities to develop and pitch projects, these programmes enable participants to make a tangible difference in their communities and contribute to a more equitable and vibrant cultural landscape.

YOUnity is a programme that aims to support community-led events in Hyson Green. The programme offered a series of commissions to develop and deliver events by, with, and for the local neighbourhood. These events could be anything from workshops to performances and could take place anywhere within Hyson Green. The programme was open to individuals aged 18+ years, collectives, and registered companies who had a community project established within Hyson Green. In addition to the commission, YOUnity offered personalised mentoring sessions from New Art Exchange's team, targeted support in developing ideas, a profile on NAE's website and social media platforms, and networking opportunities. The program was particularly interested in supporting applications from the Global Ethnic Majority, and aimed to increase inclusivity and diversity within the local creative community. Overall, YOUnity supported a variety of projects and a wide range of local interests. The project spanned from boxing, football and skating events to music, carnival, black art and women gathering events. In total, YOUnity supported: 8 projects, 19 events, 324 participants, and 1020 audience members.

YOUlead was a program that aimed to support individuals in developing and delivering projects that would have a positive impact on their local community. The program provided specialist training, personal mentoring and coaching sessions, and targeted support to help participants further develop their leadership and entrepreneurship skills. This enabled participants to shape and grow their vision into a reality that would inspire positive change within their community. Participants were encouraged to think creatively and come up with ideas that could be about anything, from self-defence workshops to bread baking, as long as they had a clear purpose to inspire positive change within their local community. The program culminated in a pitch event where participants presented their ideas to a panel of experts, with the winning idea receiving a £2000 grant to support its development. YOUlead offered a range of benefits, including new connections, collaboration with the YOUlead team, a profile on NAE's website and social media platforms, networking opportunities, and individualised feedback from industry experts. This provided participants with valuable opportunities to build their professional networks and gain valuable insights into the industry. Overall, YOUlead was a fantastic initiative that empowered individuals to make a positive impact in their community and provided them with the support and resources they needed to turn their ideas into reality. In total, YOUlead supported: 7 Participants, 12 Training and workshop sessions, 1 Pitching session.

YOUnique is a programme aimed at young people interested in pursuing a career in festival and event production. The programme provided participants with an opportunity to learn and lead the delivery of the YOUnique Festival, a three-day takeover of the New Art Exchange. Participants worked alongside industry experts, professional artists, and the NAE team to learn all the key aspects of festival production and management. The programme offered a range of specialist training and tailored development opportunities, including applied practice in professional contexts and bespoke development opportunities relating to arts and activism. Participants had the chance to build a team and collaborate with the YOUnique Collective, receiving individualised feedback and access to valuable networking opportunities. The programme supported: 6 young producers, 15 training and workshop sessions, 23 artists commissioned, and 330 audience members during the festival.

The Under The Spotlight (previously ABC) programme offers a unique opportunity for Black performance artists, musicians, poets, dancers and comedians to showcase their talents and grow their audiences in a supportive environment. Over a period of six months, selected artists had the chance to showcase their work twice at NAE as part of the Under the Spotlight events in the CafeBar. This was a great opportunity for artists to develop their stage presence and build their following, with the support of NAE. In addition to showcasing their work, selected artists had the chance to connect and collaborate with each other. They also had the opportunity to program and co-curate an evening of Under the Spotlight guest artists during the YOUnique festival. With a supporting budget and the support of NAE, this was a great opportunity for artists to take their work to the next level and connect with other like-minded creatives. Under The Spotlight supported: 3 main artists, 8 guest artists, 7 events and 242 audience members.

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THE NEW ART EXCHANGE LIMITED (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

Achievements and performance (continued)

This year, all activities for YARD Youth Theatre programme were led on-site, offering two new productions entirely led by the young participants, and presented to a fully booked performance space, which increased the confidence of all involved. Our aim continues to be reaching out to culturally diverse and marginalised young people and families in our locality and throughout the city. The programme runs on a weekly basis during term time and is divided into two age groups: 7-11 years and 12-18 years. It seeks to provide a playful, safe environment where participants can explore their creativity and imagination through performance, theatre, and other art forms like movement, film-making, and visual art. We are thrilled to have retained many participants from last year. Additionally, new members have joined the programme after a sustained recruitment effort through social media and actively engaging with young people during school visits to NAE. Yard supported: 20 young people, 29 workshops, 2 performances and 93 audience members.

Saturday Art Club offered a gateway into NAE’s creative activities and exhibitions, fostering a welcoming and secure space for local families to connect. Through a series of inclusive and engaging workshops, families are invited to expand their artistic skills, learn about various cultural perspectives from the Global Ethnic Majority, and discover new methods of expression. The programme offers a range of activities, including the opportunity to explore diverse mediums such as abstract painting, clay modelling, creating natural self-portraits, or producing unique lace patterns and prints on paper, celebrating Nottingham’s renowned lace-making heritage. Saturday Art Club supported: 4 artists, 21 events and 794 participants.

The Let's Talk Conference was a groundbreaking event aimed at promoting conversations about the Global Ethnic Majority within the cultural sector. Presented by a total of 23 speakers, artists, and activists from all over the country, the conference hosted nine thought-provoking conversations that explored key topics such as the notion of space, connections, and the need for public discourse to be led by, with, and for the Global Ethnic Majority. Over the course of three days, attendees were treated to a variety of inspiring and thought-provoking discussions, which provided a space for artists and communities to explore the issues that are most important to them. Led by experts in the field, each conversation was designed to offer new perspectives and insights and to inspire attendees to think more deeply about the challenges faced by the Global Ethnic Majority in the cultural sector. Overall, the Let's Talk Conference was a huge success, attracting a diverse range of attendees from across the country. It provided an invaluable opportunity for artists and activists to come together, share their experiences, and explore new ways to create positive change within the cultural sector. With its focus on promoting conversations and creating connections, the conference proved to be a vital step towards a more inclusive and equitable future for the Global Ethnic Majority. Let’s Talk Conference supported: 23 speakers, 9 events, 483 audience members at NAE and 353 online attendees.

5. Sustainability

New Art Exchange remains steadfast in our commitment to adopting sustainable practices and contributing to the broader vision of a carbon-neutral Nottingham. By aligning our operations with Arts Council England's Environmental Responsibility and supporting Nottingham City Council's carbon neutrality ambitions, we are not only meeting regulatory requirements but also taking a proactive stance towards creating a more sustainable and environmentally conscious future for the arts and our community.

As part of our comprehensive Environmental Sustainability Strategy, we are actively rethinking our energy usage plans to minimise our carbon footprint. By embracing innovative technologies and sustainable practices, we aim to contribute meaningfully to the reduction of our environmental impact. This strategy encompasses a holistic approach to resource management, waste reduction, and energy efficiency, ensuring that our operations align with the principles of a greener, more sustainable future.

While the closure of our building, as a result of the pandemic, has made it impossible to accurately report on year-on-year improvements, our data shows a notable reduction of 17% electricity usage and more than 10% reduction in gas usage since our last full year of opening in 2020. Our endeavours have ensured we have exceeded our 2022 targets of producing less than 50 tonnes of CO2 from energy usage (40 tonnes CO2 actual), less than 0.275 tonnes of CO2 from water usage (0.261 tonnes CO2 actual).

A further key focus for our sustainability efforts has revolved around the transformation of our cafébar into an environmentally responsible space. In a significant move towards sustainability, we are proud to announce the

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THE NEW ART EXCHANGE LIMITED

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

Achievements and performance (continued)

adoption of a 100% plant-based menu. This shift not only aligns with our commitment to reducing the environmental impact of food production but also underpins our commitment to promoting a more ethical and sustainable lifestyle.

Moreover, we recognise the importance of minimising waste and have taken steps to use recyclable products within our cafébar. This includes careful consideration of packaging materials, tableware, and other consumables to ensure that our environmental impact is reduced at every touchpoint of our operations.

We understand that achieving sustainability goals requires a collaborative effort. We actively seek partnerships with local businesses, suppliers, and community stakeholders who share our commitment to environmental responsibility. Through these collaborations, we aim to create a network of like-minded entities contributing to the broader goal of building a sustainable and resilient community.

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THE NEW ART EXCHANGE LIMITED

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

Achievements and performance (continued)

6. Team Members

Indicates joined in this period *Indicates left during this period

Person

Asha Vijesinghe Asher Yan Gough Ashley Swain Andy Lindley Anita Kumari Cindy Sissokho David Horton David Mather Elaine Carthy Ellesia Hanna Emma Cox Emma Gower Fergus Carney Hana Fredricks Ian Kaye Jez Bernholz Joshan Gangotra Kiesha Gibson Kishna Kandal ** Kyle Futers Laurencia Sutherland Lisa Bonsu Lucy Davies Maria Narducci Manya Benenson Melanie Kidd Merce Santos Mir Millie Quick Muna Kandal Nellie O’Rourke-Stopka Oliver Fox Parmjit Sagoo Richard Chung Robert Stephens Roisin Bourke Ruth Lewis-Jones Saad Eddine Said Tatenda Chitsamba*

Job Title

Learning Coordinator Catering Assistant Catering Assistant Technical Manager General Manager Curator & Special Projects Producer Head Chef / Café Bar Manager RCF Project Manager Duty Manager Catering Assistant Cleaner Executive Support Manager Café / Bar Guest Services Assistant Gallery Invigilator Cleaner Facilities Manager Front of House Assistant Catering Assistant Catering Assistant Guest Services Officer Finance Assistant Cleaner Catering Assistant Marketing and Communications Lead Talent Development Producer Head of Programmes (Maternity Leave) Public Programme Producer Gallery Invigilator Café / Bar Guest Services Assistant Catering Assistant RCF Project Coordinator Community Projects Producer Front of House Assistant Head of Neighbourhoods Catering Assistant Learning Producer CEO and Artistic Director Youth Projects Co-ordinator

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THE NEW ART EXCHANGE LIMITED (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

Achievements and performance (continued)

7. Board Members

**indicates left during this period

Ashitey Akomfrah – Trustee Professor Christopher O'Brien, OBE – Vice Chair Leslie McDonald - Chair Jiten Anand - Trustee Mahtab Hussain ** - Trustee Meeta Dave - Trustee Mohan Khera ** - Trustee Dr Rhiannon Pinchbeck - Trustee Sardul Gill ** - Trustee

8. Financial review

a. Going concern

After making appropriate enquiries, the Trustees have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the accounting policies.

b. Principal risks and uncertainties

The Charity operates a Finance and General Purposes Committee as a sub-committee of the board of Trustees.

Meetings are held quarterly and as part of the tabled agenda a Risks Register is discussed alongside mitigation strategies.

Risk is measured on a colour scale from high risk to low risk by red, orange, yellow or green by likelihood of occurring and impact if it does occur. High risks are reported on a quarterly basis to the Board.

c. Reserves policy

NAE recognises the need for the organisation to generate sufficiently robust reserves to ensure we can operate on a financially sound position to test new business activities and models going forwards. The level should have regard to the aims, needs, objectives and risks that we face. It is the intention of the Charity to follow the guidance of the Charity Commission to Trustees and the appropriate legislation.

The unrestricted general reserve as at 31 March 2023 was £3,793,341 (2022: £3,832,054). The restricted reserve as at 31 March 2023 was £178 (2022: £Nil). It is the Trustees' long term objective to build up sufficient unrestricted reserves to cover 3 months of operating expenses in order to provide resilience and to allow the organisation to deal with contingencies.

The subsidiary undertaking of the charity, NAE Enterprises Limited, recorded a loss for the year of £26,278 (2022: £31,674 loss). The subsidiary should make a positive contribution to the financial performance of the group going forwards. However, the trustees and the management team are working to improve the financial performance of the subsidiary company.

The level of reserves and the reserves policy is the responsibility of the Finance and General Purposes Committee and the Board. Allocation of any reserves are agreed in line with operational priorities and incorporated into discussions feeding into the annual budget cycle.

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THE NEW ART EXCHANGE LIMITED (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

d. Principal funding

The Trustees are satisfied that the charitable company's assets attributable to each of its individual funds are available and adequate to fulfil its obligations in relation to those funds. All funding sourced is held in restricted accounts and managed according to the requirements of the grant application and regulations by the funding body.

9. Structure, governance and management

a. Constitution

The charity's governing document is the Articles of Association dated 15 September 2003 which was adopted on incorporation of the charitable company. The charity is a company limited by guarantee.

The principal object of the company and the group is to stimulate new perspectives on the value of diversity in art and society, operating from the principal address which is 39 - 41 Gregory Boulevard, Hyson Green, Nottingham, NG7 6BE.

We have a trading company which is a wholly owned subsidiary of The New Art Exchange Limited. Further information is given in note 18 of the financial statements.

b. Methods of appointment or election of Trustees

The directors of the company are also charity trustees for the purposes of charity law. Under the requirements of the Memorandum and Articles of Association one third of the members of the Board shall retire from office annually. A retiring member of the Board shall be eligible for re-election.

The Board seeks to ensure the vision and aims of the organisation are appropriately reflected through the diversity and skills of the trustee body. It is planned that the potential pool of trustees the charity has will be further enhanced during future years through selective advertising and networking.

c. Pay policy for key management personnel

The Board have a pay and remuneration working group, chaired by the Chair, to review senior members of the team's pay and remuneration, with reviews based on benchmarks from local and regional cultural organisations and advice from institutions including ACE, Tate etc.

d. Policies adopted for the induction and training of Trustees

In Autumn 2022, Trustees took part in a good governance training programme, with the aim of reviewing, developing and strengthening the governance processes and structures at New Art Exchange. The outcomes included a set of clear governance policies, the completion of a skills review, and the development of a plan to strengthen and refresh the Board of Trustees. All of this was done to the benefit of NAE by enabling us to better meet the needs of our diverse artists, audiences, and communities. Since then, NAE has continued with its induction process for new Trustees joining the Board, which includes the provision of a thorough suite of documents outlining NAE’s mission, vision and business plan, and opportunities to attend staff training days and workshops via our Board Champions programme.

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THE NEW ART EXCHANGE LIMITED

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

9. Structure, governance and management (continued)

e. Organisational structure and decision-making policies

The Board of Trustees administers the charity. The Board meets quarterly. There are sub group meetings including that of a finance and general purposes that meets on a quarterly basis. A Chief Executive Officer (CEO) is appointed by the Trustees to manage the day to day operations of the charity. The CEO is supported by a senior management team consisting of Interim Director of Operations, Executive Support Manager, Support Services Manager and Head of Marketing and Comms.

Plans for future periods

NAE remains committed to its ambitions around becoming a national and international model for citizen-led galleries, whilst remaining dedicated to promoting excellence in culturally diverse contemporary arts through our exhibitions, events and engagement initiatives. Looking ahead to 2024 and beyond, we have an exciting programme scheduled. Our Transform season will see an innovative and dynamic conference delving deeper into how community organisations, cultural institutions, and funders are reshaping the dialogue around Global Ethnic Majority leadership, as well as a City-Wide Takeover event celebrating and amplifying the leadership, creativity, and stewardship of the Global Ethnic Majority in our city. Artist Adebayo Bolaji will join us in the Main Gallery from February and Raheel Khan will be residing with us from January for 7 weeks to nurture his practice, before our annual Open exhibition returns in the Summer, attracting both applicants and audiences locally and nationally. Our Neighbourhoods programme will continue to grow, with Beyond the Walls connecting local communities with internationally acclaimed mural practitioners to tell the stories of local heroes, and our YOU programmes providing training and development opportunities for young people. Our commitment to supporting our local communities will also extend to the expansion of our Community Café events, which provide a paywhat-you-can dining experience for all of our audiences twice a month.

Statement of Trustees' responsibilities

The Trustees (who are also the directors of the Company for the purposes of company law) are responsible for preparing the Trustees' 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. Under company law, the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Group and the Company and of their incoming resources and application of resources, including their income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:

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

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THE NEW ART EXCHANGE LIMITED (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

Disclosure of information to auditors

Each of the persons who are Trustees at the time when this Trustees' report is approved has confirmed that:

Auditors

The auditors, PKF Smith Cooper Audit Limited, have indicated their willingness to continue in office. The designated Trustees will propose a motion reappointing the auditors at a meeting of the Trustees.

Approved by order of the members of the board of Trustees and signed on their behalf by:

S Gambrah - Chair of Trustees (Chair of Trustees) Date: 13 December 2023

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THE NEW ART EXCHANGE LIMITED

(A company limited by guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE NEW ART EXCHANGE LIMITED

Qualified opinion

We have audited the financial statements of The New Art Exchange Limited (the 'parent charitable company') and its subsidiaries (the 'group') for the year ended 31 March 2023 which comprise the Consolidated statement of financial activities, the Consolidated balance sheet, the Company balance sheet, the Consolidated statement of cash flows and the related notes, 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 Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion, except for the possible effects of the matter described in the basis for qualified opinion section of our report, the financial statements:

Basis for qualified opinion

The financial year ended 31 March 2022 contained £238,643 in carried forward restricted reserves. We were unable to obtain sufficient corroborative assurance in respect of the allocation of revenue and costs, as previously reported, in relation to two grant funded projects.

As a result, a prior year adjustment has been reflected in the financial statements (see note 24). Consequently, we have been unable to determine whether any further adjustments to these amounts are necessary.

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

Conclusions relating to going concern

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group's or the parent charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.

Page 14

THE NEW ART EXCHANGE LIMITED

(A company limited by guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE NEW ART EXCHANGE LIMITED (CONTINUED)

Other information

The other information comprises the information included in the Annual report other than the financial statements and our Auditors' report thereon. The Trustees are responsible for the other information contained within the Annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the 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 gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

As described in the basis for qualified opinion section of our report, we were unable to satisfy ourselves concerning the accuracy of opening restricted reserves as at 1 April 2022. We have concluded that where the other information refers to the opening reserves and prior year reported amounts, it may be materially misstated for the same reason.

Matters on which we are required to report by exception

Except for the matter described in the basis for qualified opinion section of our report, in light of the knowledge and understanding of the Charity and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' Report.

Arising solely from the limitation on the scope of our work referred to above:

We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you, if in our opinion:

Responsibilities of trustees

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

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

Page 15

THE NEW ART EXCHANGE LIMITED

(A company limited by guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE NEW ART EXCHANGE LIMITED (CONTINUED)

Auditors' responsibilities for the audit of the financial statements

We have been appointed as auditor under section 151 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. Based on our understanding of the Group and industry, we identify the key laws and regulations affecting the Group. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We have identified that the principal risk of fraud or non-compliance with laws and regulations related to:

We focussed on those areas that could give rise to a material misstatement in the Company's financial statements.

Our procedures included, but were not limited to:

It is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' report.

Page 16

THE NEW ART EXCHANGE LIMITED

(A company limited by guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE NEW ART EXCHANGE LIMITED (CONTINUED)

Use of our report

This report is made solely to the charitable company's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charitable company's trustees those matters we are required to state to them in an Auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and its members, as a body, for our audit work, for this report, or for the opinions we have formed.

PKF Smith Cooper Audit Limited

Statutory Auditors 2 Lace Market Square Nottingham NG1 1PB

Date:

PKF Smith Cooper Audit Limited are eligible to act as auditors in terms of section 1212 of the Companies Act 2006.

Page 17

THE NEW ART EXCHANGE LIMITED

(A company limited by guarantee)

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2023

Note
Income from:
Donations and legacies
4
Charitable activities
5
Other trading activities
6
Investments
7
Other income
8
Total income
Expenditure on:
Raising funds
9
Charitable activities
10
Total expenditure
Net (expenditure)/income
Transfers between funds
24
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Net movement in funds
Total funds carried forward		 Unrestricted
funds
2023
£
868,591
20,000
60,021
1,742
1,375
951,729
142,366
850,976
993,342
(41,613)
2,900
(38,713)
3,832,054
(38,713)
3,793,341		 Restricted
funds
2023
£
-
215,001
-
-
-
215,001
-
211,923
211,923
3,078
(2,900)
178
-
178
178		 Total
funds
2023
£
868,591
235,001
60,021
1,742
1,375
1,166,730
142,366
1,062,899
1,205,265
(38,535)
-
(38,535)
3,832,054
(38,535)
3,793,519		 As restated
Total
funds
2022
£
868,589
480,805
47,981
51
65,775
1,463,201
133,548
1,428,227
1,561,775
(98,574)
-
(98,574)
3,930,628
(98,574)
3,832,054

The Consolidated statement of financial activities includes all gains and losses recognised in the year.

The notes on pages 24 to 43 form part of these financial statements.

Page 18

THE NEW ART EXCHANGE LIMITED (A company limited by guarantee) REGISTERED NUMBER: 04899786

CONSOLIDATED BALANCE SHEET AS AT 31 MARCH 2023

Note
Fixed assets
Intangible assets
16
Tangible assets
17
Current assets
Stocks
19
Debtors
20
Cash at bank and in hand
28
Creditors: amounts falling due within one
year
21
Net current assets
Total assets less current liabilities
Total net assets
Charity funds
Restricted funds
24
Unrestricted funds
24
Total funds		 3,495
140,758
393,598
537,851
(81,296)		 2023
£
18,612
3,318,352
3,336,964
456,555
3,793,519
3,793,519
178
3,793,341
3,793,519		 2,942
365,892
217,152
585,986
(170,982)		 As restated
2022
£
-
3,417,050
3,417,050
415,004
3,832,054
3,832,054
-
3,832,054
3,832,054

The Company was entitled to exemption from audit under section 477 of the Companies Act 2006.

The members have not required the entity to obtain an audit for the year in question in accordance with section 476 of the Companies Act 2006.

However, an audit is required in accordance with section 151 of the Charities Act 2011.

The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.

The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.

Page 19

THE NEW ART EXCHANGE LIMITED (A company limited by guarantee) REGISTERED NUMBER: 04899786

CONSOLIDATED BALANCE SHEET (CONTINUED) AS AT 31 MARCH 2023

The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:

S Gambrah

(Chair of Trustees) Date: 13 December 2023

The notes on pages 24 to 43 form part of these financial statements.

Page 20

THE NEW ART EXCHANGE LIMITED (A company limited by guarantee) REGISTERED NUMBER: 04899786

COMPANY BALANCE SHEET AS AT 31 MARCH 2023

Note
Fixed assets
Intangible assets
16
Tangible assets
17
Investments
18
Current assets
Debtors
20
Cash at bank and in hand
Creditors: amounts falling due within one
year
21
Net current assets
Total assets less current liabilities
Total net assets
Charity funds
Restricted funds
24
Unrestricted funds
24
Total funds		 250,612
378,805
629,417
(65,832)		 2023
£
18,612
3,318,352
1
3,336,965
563,585
3,900,550
3,900,550
178
3,900,372
3,900,550		 446,523
212,892
659,415
(163,659)		 As restated
2022
£
-
3,417,050
1
3,417,051
495,756
3,912,807
3,912,807
-
3,912,807
3,912,807

The Company was entitled to exemption from audit under section 477 of the Companies Act 2006.

The members have not required the entity to obtain an audit for the year in question in accordance with section 476 of the Companies Act 2006.

However, an audit is required in accordance with section 151 of the Charities Act 2011.

The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.

The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.

Page 21

THE NEW ART EXCHANGE LIMITED (A company limited by guarantee) REGISTERED NUMBER: 04899786

COMPANY BALANCE SHEET (CONTINUED) AS AT 31 MARCH 2023

The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:

S Gambrah

(Chair of Trustees) Date: 13 December 2023

The notes on pages 24 to 43 form part of these financial statements.

Page 22

THE NEW ART EXCHANGE LIMITED

(A company limited by guarantee)

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2023

Cash flows from operating activities
Net cash used in operating activities
Cash flows from investing activities
Purchase of intangible assets
Purchase of tangible fixed assets
Investment income received
Net cash used in investing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
The notes on pages 24 to 43 form part of these financial statements		 2023
£
196,304
(20,160)
(1,440)
1,742
(19,858)
176,446
217,152
393,598		 2022
£
(358,640)
-
(24,106)
51
(24,055)
(382,695)
599,847
217,152

Page 23

THE NEW ART EXCHANGE LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

1. General information

The New Art Exchange Limited is a private company limited by guarantee incorporated in England and Wales. The registered office is 39 - 41 Gregory Boulevard, Hyson Green, Nottingham, NG7 6BE.

2. Accounting policies

2.1 Basis of preparation of financial statements

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

The New Art Exchange Limited meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

The Consolidated statement of financial activities (SOFA) and Consolidated balance sheet consolidate the financial statements of the Company and its subsidiary undertaking. The results of the subsidiary are consolidated on a line by line basis.

The financial statements are presented in Sterling which is the functional currency of the company and are rounded to the nearest £1.

2.2 Basis of consolidation

The financial statements consolidate the accounts of The New Art Exchange Limited and its subsidiary undertaking ('subsidiary').

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of financial activities in these financial statements.

For the year ended 31 March 2023 the company generated a deficit of £12,257 (2022: Deficit of £54,909).

2.3 Going concern

The Trustees have reviewed latest management information, budgets and forecast cashflows to 31 March 2025. Due to the additional funds received and the strong level of cash reserves, the Trustees are confident that the company and Group will have adequate resources to continue in operational existence for the foreseeable future and at least one year from the date of approval of the financial statements. For this reason, they continue to adopt the going concern basis in preparing the financial statements.

Page 24

THE NEW ART EXCHANGE LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

2. Accounting policies (continued)

2.4 Income

All income is recognised once the Company has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

The company is awarded grants, for which we are not entitled to recognise the income until costs have been defrayed for the prupose the grant was intended. Therefore the recognition of any grants received in advance is usually deferred in the balance sheet.

Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.

Other income is recognised in the period in which it is receivable and to the extent the goods have been provided or on completion of the service.

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount.

2.5 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.

Expenditure on raising funds includes all expenditure incurred by the Group to raise funds for its charitable purposes and includes costs of all fundraising activities events and non-charitable trading.

Expenditure on charitable activities is incurred on directly undertaking the activities which further the Group's objectives, as well as any associated support costs.

All expenditure is inclusive of irrecoverable VAT.

2.6 Government grants

Government grants relating to tangible fixed assets are treated as deferred income and released to the Consolidated statement of financial activities over the expected useful lives of the assets concerned. Other grants are credited to the Consolidated statement of financial activities as the related expenditure is incurred.

Page 25

THE NEW ART EXCHANGE LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

2. Accounting policies (continued)

2.7 Research and development

Development costs are capitalised within intangible assets where they can be identified with a specific product or project anticipated to produce future benefits, and are amortised on the straight line basis over the anticipated life of the benefits arising from the completed product or project.

Deferred research and development costs are reviewed annually, and where future benefits are deemed to have ceased or to be in doubt, the balance of any related research and development is written off to the Consolidated statement of financial activities.

2.8 Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Group; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.

2.9 Intangible assets and amortisation

Intangible assets costing £500 or more are capitalised and recognised when future economic benefits are probable, and the cost or value of the asset can be measured reliably.

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Amortisation is provided on intangible assets at rates calculated to write off the cost of each asset on a straight-line basis over its expected useful life.

Amortisation is provided on the following basis:

Website / Software Development - 15 % straight line

2.10 Tangible fixed assets and depreciation

Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.

Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following bases:

Long-term leasehold property - 2% straight line
Fixtures and fittings - 15% - 33% straight line

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Consolidated statement of financial activities.

Page 26

THE NEW ART EXCHANGE LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

2. Accounting policies (continued)

2.11 Investments

Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the Balance sheet date, unless the value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and presented as ‘Gains/(Losses) on investments’ in the Consolidated statement of financial activities.

Investments in subsidiaries are valued at cost less provision for impairment.

2.12 Stocks

Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.

2.13 Debtors

Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

2.14 Cash at bank and in hand

Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

2.15 Liabilities and provisions

Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

Liabilities are recognised at the amount that the Company anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Consolidated statement of financial activities as a finance cost.

2.16 Financial instruments

The Group only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

2.17 Pensions

The Group operates a defined contribution pension scheme and the pension charge represents the amounts payable by the Group to the fund in respect of the year.

Page 27

THE NEW ART EXCHANGE LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

2. Accounting policies (continued)

2.18 Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Group and which have not been designated for other purposes.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Group for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

Investment income, gains and losses are allocated to the appropriate fund.

3. Critical accounting estimates and judgements

The preparation of the financial statements requires the Trustees to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. The Trustees are of the opinion that there are no key assumptions concerning the future and other key sources of estimation uncertainty at the balance sheet date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

4. Income from donations and legacies

ACE revenue core
Total 2022		 Unrestricted
funds
2023
£
868,591
868,589		 Total
funds
2023
£
868,591
868,589		 Total
funds
2022
£
868,589

Page 28

THE NEW ART EXCHANGE LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

5. Income from charitable activities

Derwent Valley
Freelands
Real Creative Futures ERDF
The Art of Belonging
African Soldier
Art Fund
Nottingham Mela
Arts Patrons Trust - Our Yard
NTU - University Reimagined
HS1's Keyhole Wires
Other project income
Total 2022 as restated
6.
Income from other trading activities
Services contract Nottingham City Council
Facility income
Workshop and education income
Retailing
Box office income
HMRC Creative Industries Tax Credit
Sundry income
Consultancy fees
Café and catering		 Unrestricted
funds
2023
£
-
-
-
-
-
-
-
-
20,000
-
-
20,000
-		 Restricted
funds
2023
£
-
136,080
46,769
6,550
-
-
7,856
9,400
-
7,500
846
215,001
480,805
Unrestricted
funds
2023
£
14,047
23,507
2,970
1,259
-
(49,765)
1,578
1,675
64,750
60,021		 Total
funds
2023
As restated
Total
funds
2022
£
£
-
12,000
136,080
126,572
46,769
88,249
6,550
3,310
-
231,246
-
16,378
7,856
10
9,400
-
20,000
-
7,500
-
846
3,040
235,001
480,805
480,805
Total
funds
2023
Total
funds
2022
£
£
14,047
14,047
23,507
13,055
2,970
900
1,259
439
-
28
(49,765)
(29,595)
1,578
731
1,675
4,333
64,750
44,043
60,021
47,981

Page 29

THE NEW ART EXCHANGE LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

7. Investment income

Unrestricted Total Total
funds funds funds
2023 2023 2022
£ £ £
Interest receivable 1,742 1,742 51

8. Other incoming resources

Sundry income
Government grants - review
NCC - misc grants
Government grants - furlough income		 Unrestricted
funds
2023
£
375
1,000
-
-
1,375		 Total
funds
2023
£
375
1,000
-
-
1,375		 Total
funds
2022
£
50
4,000
38,000
23,725
65,775

9. Expenditure on raising funds

Advertising and marketing
Café purchases
Support costs
Administration staff costs		 Unrestricted
funds
2023
£
32,790
26,115
17,204
66,257
142,366		 Total
funds
2023
£
32,790
26,115
17,204
66,257
142,366		 Tota
funds
2022
£
45,841
20,088
9,166
58,453
133,548

Page 30

THE NEW ART EXCHANGE LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

10. Analysis of expenditure on charitable activities

Summary by fund type

Cost of charitable activities
Total 2022		 Unrestricted
funds
2023
£
850,976
951,242		 Restricted
funds
2023
£
211,923
476,985		 Total
2023
£
1,062,899
1,428,227		 Total
2022
£
1,428,227

11. Analysis of expenditure by activities

Cost of charitable activities
Total 2022		 Activities
undertaken
directly
2023
£
392,938
576,413		 Support
costs
2023
£
669,961
851,814		 Total
funds
2023
£
1,062,899
1,428,227		 Total
funds
2022
£
1,428,227

Analysis of direct costs

Depreciation and amortisation
Research and Development
Main Gallery
Project costs		 Cost of
charitable
activities
2023
£
101,686
1,360
30,561
259,331
392,938		 Total
funds
2023
£
101,686
1,360
30,561
259,331
392,938		 Total
funds
2022
£
109,202
1,391
37,624
428,196
576,413

Page 31

THE NEW ART EXCHANGE LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

11. Analysis of expenditure by activities (continued)

Analysis of support costs

Staff costs
IT expenses
Premises costs
Professional fees
Travelling expenses
Staff training costs
Sundry expenses
Postage and stationery
Exhibition technicians
Bank charges
Repairs and renewals
Governance costs
12.
Auditors' remuneration
Auditors' remuneration for the group
Fees payable to the Company's auditor in respect of:
All non-audit services not included above		 Cost of
charitable
activities
2023
£
465,294
114
65,665
40,507
821
5,553
7,376
717
20,690
914
32,067
30,243
669,961		 Total
funds
2023
£
465,294
114
65,665
40,507
821
5,553
7,376
717
20,690
914
32,067
30,243
669,961
2023
£
11,450
3,550		 Total
funds
2022
£
629,013
11,102
69,784
55,970
1,781
4,239
8,119
532
15,568
1,595
39,722
14,389
851,814
2022
£
7,800
-

Page 32

THE NEW ART EXCHANGE LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

13. Staff costs

Wages and salaries
Employers NI
Pension costs		 Group
2023
£
470,197
44,440
16,914
531,551		 Group
2022
£
628,485
44,632
20,938
694,055		 Company
2023
£
408,805
41,002
15,487
465,294		 Company
2022
£
571,333
44,632
19,637
635,602

The average number of persons employed by the Company during the year was as follows:

Group Group Company Company
2023 2022 2023 2022
No. No. No. No.
Employees 25 32 19 27

The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:

Group Group
2023 2022
No. No.
In the band £60,001 - £70,000 1 -

The total amount of employee benefits received by key management personnel is £176,772 (2022: £209,617).

14. Trustees' remuneration and expenses

During the year, no Trustees received any remuneration or other benefits (2022 - £NIL).

During the year ended 31 March 2023, no Trustee expenses have been incurred (2022 - £NIL).

15. Taxation

The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.

Page 33

THE NEW ART EXCHANGE LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

16.
Intangible assets
Group and Company
Cost
Additions
At 31 March 2023
Amortisation
Charge for the year
At 31 March 2023
Net book value
At 31 March 2023
At 31 March 2022		 Website /
Software
Development
£
20,160
20,160
1,548
1,548
18,612
-

Page 34

THE NEW ART EXCHANGE LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

17. Tangible fixed assets

Group and Company

Cost
At 1 April 2022 (as restated)
Additions
At 31 March 2023
Depreciation
At 1 April 2022 (as restated)
Charge for the year
At 31 March 2023
Net book value
At 31 March 2023
At 31 March 2022 (as restated)
18.
Fixed asset investments
Company
Cost or valuation
At 1 April 2022
At 31 March 2023		 Long-term
leasehold
property
£
4,549,049
-
4,549,049
1,173,621
88,421
1,262,042
3,287,007
3,375,428		 Fixtures and
fittings
£
154,655
1,440
156,095
113,033
11,717
124,750
31,345
41,622		 Total
£
4,703,704
1,440
4,705,144
1,286,654
100,138
1,386,792
3,318,352
3,417,050
Investments
in
subsidiaries
£
1
1

Page 35

THE NEW ART EXCHANGE LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

18. Fixed asset investments (continued)

Principal subsidiaries

The following were subsidiary undertakings of the Company:

Names Company Principal activity Class of Holding
number shares
NAE Enterprises 09462470 Café Ordinary 100%
NAE Developments Limited 09462213 Dormant company Ordinary 100%

The financial results of the subsidiary for the year were:

NAE Enterprises Limited

Income: £83,298 Expenditure: (£109,576) Profit/ (Loss) for the year: (£26,278) Net assets/ (liabilities): (£107,030)

NAE Developments Limited

Net assets: £1

19. Stocks

Group Group
2023 2022
£ £
Café stock 3,495 2,942

20. Debtors

Due within one year
Trade debtors
Amounts owed by group undertakings
Other debtors
Prepayments and accrued income		 Group
2023
£
4,404
-
6,156
130,198
140,758		 Group
As restated
2022
£
7,801
-
8,201
349,890
365,892		 Company
2023
£
-
115,427
5,704
129,481
250,612		 Company
As restated
2022
£
480
88,666
8,201
349,176
446,523

Page 36

THE NEW ART EXCHANGE LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

21. Creditors: Amounts falling due within one year

Trade creditors
Other taxation and social security
Other creditors
Accruals and deferred income
Financial instruments
Financial assets
Financial assets measured at fair value
through income and expenditure
Financial liabilities
Financial liabilities measured at amortised
cost through income and expenditure		 Group
2023
£
37,359
10,927
4,828
28,182
81,296
Group
2023
£
534,356
Group
2023
£
(81,296)		 Group
As restated
2022
£
109,316
14,467
5,376
41,823
170,982
Group
2022
£
744,697
Group
2022
£
(170,982)		 Company
2023
£
32,492
8,034
3,618
21,688
65,832
Company
2023
£
629,417
Company
2023
£
(65,832)		 Company
As restated
2022
£
106,925
12,006
4,105
40,623
163,659
Company
2022
£
659,415
Company
2022
£
(163,659)

22. Financial instruments

Financial assets measured at fair value through income and expenditure comprise trade debtors, amounts owed by group undertakings, other debtors, prepayments and accrued income and cash at bank.

Financial liabilities measured at fair value through income and expenditure comprise trade creditors, other taxation and social security, other creditors and accruals and deferred income.

23. Prior year adjustments

The financial statements have been adjusted for misstatements in previously reported financial statements.

The financial statements have been restated to incorporate the impact of fixed assets being overstated by £31,221 for a historic journal with no underpinning asset. This change has resulted in a reduction to 2022 brought forward (b/f) unrestricted reserves of £31,221 and a reduction to 2022 b/f long-term leasehold property cost.

The financial statements have also been restated to incorporate the impact of historic restricted funds not being accurately reported in prior years in respect of certain grants. The adjustment has resulted in an increase to 2023 b/f unrestricted funds of £254,110; a reduction in 2023 b/f restricted funds of £236,643; an increase in 2022 b/f unrestricted funds of £175,088; a reduction in 2022 b/f restricted funds of £126,924; a reduction in 2022 restricted income of £22,880; an increase in 2022 restricted costs of £77,022; and a reduction in 2022 unrestricted costs of £77,022.

Page 37

THE NEW ART EXCHANGE LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

24. Statement of funds

Statement of funds - current year

Unrestricted funds
General Funds
Reserves - subsidiary
Restricted funds
Real Creative Futures ERDF
Freelands income
PCC Community
Arts Patrons Trust - Our Yard
The Art of Belonging
HS1's Keyhole Wires
Nottingham Mela
Total of funds		 As restated
Balance at 1
April 2022
£
3,912,807
(80,753)
3,832,054
-
-
-
-
-
-
-
-
3,832,054		 Income
£
868,431
83,298
951,729
46,769
136,080
846
9,400
6,550
7,500
7,856
215,001
1,166,730		 Expenditure
£
(883,766)
(109,576)
(993,342)
(46,769)
(136,080)
(846)
(6,500)
(6,550)
(7,322)
(7,856)
(211,923)
(1,205,265)		 Transfers
in/out
£
2,900
-
2,900
-
-
-
(2,900)
-
-
-
(2,900)
-		 Balance at
31 March
2023
£
3,900,372
(107,031)
3,793,341
-
-
-
-
-
178
-
178
3,793,519

Page 38

THE NEW ART EXCHANGE LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

24. Statement of funds (continued)

Real Creative Futures ERDF is part of the Big House programme, funded through ERDF, providing creative business support to the creative and digital industries in Nottinghamshire and Derbyshire. This project is now completed.

The Art of Belonging is a vibrant exhibition that showcases the art created by students from NEST (Nottingham Education Sanctuary Team), a full-time educational provision for asylum seekers and refugees aged 15-19 years.

Freelands is a three year 'Power to Change' programme drawing on the legacy of community activism in Nottingham and working with young people and adults to support community empowerment and talent development.

PCC Community is a Police Crime Commissioner supported programme to develop a response to hate crime resulting in film and series of events. This project is now completed.

Arts Patrons Trust - Our Yard is an exploration into the impact of sound system culture on the UK over the last 50 years. A 16-part series telling the chronological story, over the next 4 years through clothing collections, podcasts, film screenings and events.

HS1's Keyhole Wires follows HS1’s ‘Terrace Wires’, one of the country’s most ambitious public art programmes. The programme supports the hanging of unique contemporary artwork at a key junction in St Pancras Station. Suspended high, surrounded by the glass windows connecting the old St Pancras Station with the new.

Nottingham Mela is a South Asian festival of art and culture supported by the Mela Network.

Page 39

THE NEW ART EXCHANGE LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

24. Statement of funds (continued)

Statement of funds - prior year

Unrestricted funds
General funds
Restricted funds
Real Creative Futures ERDF
African Soldier
NTS Project - Shine a Light
Historic England
Art Fund
Derwent Valley
Freelands income
The Art of Belonging
Total of funds		 As restated
Balance at
1 April 2021
£
3,931,028
-
-
-
(400)
-
-
-
-
(400)
3,930,628		 As restated
Income
£
982,406
88,249
231,246
1,840
1,200
16,377
12,000
126,573
3,310
480,795
1,463,201		 As restated
Expenditure
£
(1,084,790)
(88,249)
(231,246)
(330)
(900)
(16,377)
(10,000)
(126,573)
(3,310)
(476,985)
(1,561,775)		 As restated
Transfers
in/out
£
3,410
-
-
(1,510)
100
-
(2,000)
-
-
(3,410)
-		 As restated
Balance at
31 March
2022
£
3,832,054
-
-
-
-
-
-
-
-
-
3,832,054

Page 40

THE NEW ART EXCHANGE LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

25. Summary of funds

Summary of funds - current year

Balance at 1
April 2022
£
General funds
3,832,054
Restricted funds
-
3,832,054
Summary of funds - prior year
Balance at
1 April 2021
£
General funds
3,931,028
Restricted funds
(400)
3,930,628		 Income
£
951,729
215,001
1,166,730
As restated
Income
£
982,406
480,795
1,463,201		 Expenditure
£
(993,342)
(211,923)
(1,205,265)
As restated
Expenditure
£
(1,084,790)
(476,985)
(1,561,775)		 Transfers
in/out
£
2,900
(2,900)
-
As restated
Transfers
in/out
£
3,410
(3,410)
-		 Balance at
31 March
2023
£
3,793,341
178
3,793,519
Balance at
31 March
2022
£
3,832,054
-
Summary of funds - prior year
General funds
Restricted funds
3,832,054

26. Analysis of net assets between funds

Analysis of net assets between funds - current year

Tangible fixed assets
Intangible fixed assets
Current assets
Creditors due within one year
Total		 Unrestricted
funds
2023
£
3,318,352
18,612
537,673
(81,296)
3,793,341		 Restricted
funds
2023
£
-
-
178
-
178		 Total
funds
2023
£
3,318,352
18,612
537,851
(81,296)
3,793,519

Page 41

THE NEW ART EXCHANGE LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

26. Analysis of net assets between funds (continued)

Analysis of net assets between funds - prior year

Tangible fixed assets
Current assets
Creditors due within one year
Total		 Unrestricted
funds
2022
£
3,417,050
570,636
(155,632)
3,832,054		 Restricted
funds
2022
£
-
15,350
(15,350)
-		 Total
funds
2022
£
3,417,050
585,986
(170,982)
3,832,054
27.
Reconciliation of net movement in funds to net cash flow from operating activities
Group
2023
£
Net expenditure for the year (as per Statement of Financial Activities)
(38,535)
Adjustments for:
Depreciation charges
100,138
Amortisation charges
1,548
Investment income recognised in statement of financial activities
(1,742)
Increase in stocks
(553)
Decrease/(increase) in debtors
225,134
Decrease in creditors
(89,686)
Net cash provided by/(used in) operating activities
196,304		 Group
As restated
2022
£
(98,574)
109,201
-
(51)
(2,942)
(95,318)
(270,956)
(358,640)
28.
Analysis of cash and cash equivalents
Cash in hand
Total cash and cash equivalents		 Group
2023
£
393,598
393,598		 Group
2022
£
217,152
217,152

Page 42

THE NEW ART EXCHANGE LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

29. Analysis of changes in net debt

Cash at bank and in hand At 1 April
2022
£
217,152
217,152		 Cash flows
£
176,446
176,446		 At 31 March
2023
£
393,598
393,598

30. Pension commitments

The Group and Company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the group in an independently administered fund. The pension cost charge represents contributions payable by the group to the fund and amounted to £16,914 (2022 - £20,938). Contributions totalling £2,485 (2022 - £3,781) were payable to the fund at the balance sheet date.

31. Operating lease commitments

The Group and the Company had no commitments under non-cancellable operating leases at 31 March 2023.

32. Related party transactions

The Group has taken advantage of the exemption under S.33 1A of FRS 102 from disclosing transactions entered into between two or more members of the group as the subsidiary is fully owned.

The Company has not entered into any related party transaction during the year, nor are there any outstanding balances owing between related parties and the Company at 31 March 2023.

33. Controlling party

The New Art Exchange is a Company limited by guarantee and accordingly does not have share capital.

Every member of the charitable Company undertakes to contribute such amount as may be required not exceeding £1 to the assets of the charitable Company in the event of it being wound up while he or she is a member, or within one year after he or she ceases to be a member.

There is no ultimate controlling party of the charitable Company.

Page 43