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2022-03-31-accounts

~~Annual Report~~ 2021-2022

For the year ending 31 March 2022

Association for Cultural Enterprises

Contents

The Trustees of the Association for Cultural Enterprises present their Annual Report and consolidated financial statements of the charity and its subsidiary for the year ending 31 March 2022, which have also been prepared to meet the requirements for a directors’ report and accounts for Companies Act purposes.

The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Articles of Association, and 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).

Harewood House, Leeds

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Welcome from the Chair

In the financial year 2021-22, the Association for Cultural Enterprises hosted two conferences - one digital and one in person. This unique occurrence speaks to the disruption we all experienced during the Covid pandemic and related lockdowns.

I am pleased to report that despite our own challenges as an organisation we are in a good place both operationally and financially to fulfil this purpose for the future.

I would like to thank the management team who have worked tirelessly to support our members in difficult circumstances – they have been agile, dedicated and collegiate throughout. I also extend a warm welcome to our new team members and look forward to seeing you thriving in your roles.

We had to change what we did, how we did it and when. Inevitably we did more, not less, and experimented with the new whilst trying to reinvigorate the old.

I would also like to thank the Board of Trustees who give their considerable wisdom and expertise freely and who help to steady the organisation in times of turbulence.

The things that we hold dear as a sector and as an Association are unchanged, perhaps even amplified by our experiences. We believe that the cultural sector offers life enhancing experiences and opportunities and that these should be available to everyone. The Association is here to help our members deliver on these values by building the expertise, skills and support networks that enable our organisations to be financially sustainable - developing businesses that are unique, creative and values driven.

Finally, thank you to all of you for your ongoing support. I was delighted to see so many of you in Glasgow, and to see that despite everything you have retained your energy and commitment to protecting our great cultural institutions, both large and small.

I look forward to seeing you at at one of our events soon.

Best wishes

Thanks to the support of Arts Council England’s Culture Recovery Fund, we were able to continue our work throughout 2021-22 and we have invested in our team and our infrastructure to ensure we are ready for the next challenges - which are most certainly not in short supply!

Caroline Brown

Chair, Association for Cultural Enterprises

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Membership

Membership continues to be at the heart of Cultural Enterprises. Through our varied and diverse members, we foster a culture of community, where shared experiences and peer to peer support are central to the membership experience.

Our members come from a wide range of backgrounds and represent some of the largest and most recognisable names in culture and heritage as well as smaller, independent organisations. Each member is valued, and their contributions help to enrich the networking experiences we offer. Our members frequently support our training and events by sharing their expertise and knowledge as speakers, blog writers, academy course creators and presenters.

Whilst the pandemic continued to have an inevitable impact on our overall membership numbers, we ended the year with 339 member organisations, comprising 226 Full Members and 113 Associate Members. This has continued to be a challenging time for many organisations’ budgets, meaning the value of membership, with its resources and community, is more important than ever.

There has been a positive trend towards Membership Plus, an enhanced package which includes access to all online Academy content, worth over £1,500 of CPD-approved training. Of our 226 Full Members, 92 were Membership Plus which represents a 52% increase in the past 12 months.

As we continue to recover following the pandemic, retention of existing members, reconnection with lapsed members and acquisition of new members will all be vital. We have created a new role of Membership Coordinator to help us grow and

strengthen membership and ensure that the Association remains a valued and vital force in the sector.

We are also committed to listening to our members about their needs and responding with curated, topical events, along with more accessible online learning, data-led KPI reports, and regular community events.

Benchmarking

May 2021 saw the publication of our new annual benchmarking scheme. Members were asked to report figures as close to the 2019-2020 financial year as possible. The aim was to collate KPIs across a range of pre-pandemic commercial areas, so we had something to measure against prior to the major disruption of Covid-19. Thank you to the 53 member organisations who responded. The full report can be found in our Resource Library.

Eden Project, Cornwall

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Cultural Enterprises Conference

Digital Conference, May 2021

In 2021 we were presented with a major new challenge by the restrictions of the global pandemic – how to adapt our annual Conference and Trade Show to be delivered in an effective online format. With no experience of working digitally on this scale we researched, spoke to external experts, and developed skills across the Cultural Enterprises team that led to us staging an extremely successful and well-received event in May 2021.

The event ran over four days, including one full day dedicated to the Trade Show and three days of educational content. This allowed us to factor in more breaks (important for digital events) and involve as many speakers and panellists as possible.

We made the decision to invest in a digital platform, Swapcard, that we could continue to work with across our Conferences and core events programme in 2021-22 and beyond. This platform was selected for its usability, appearance and flexibility. Without doubt, it was one of the major factors that led to the success of the event.

The great advantage of a digital Conference was the ability to engage with speakers from the UK, Ireland, Europe and the US, delivering a more global perspective of income generation across the cultural sector.

It also meant that members from the more remote areas of the UK, as well as those that might not normally be able to travel due to other commitments and responsibilities, were able to engage with the educational content and networking opportunities that are usually inaccessible for them, creating a more diverse audience.

A slightly more challenging aspect was how we could deliver value to our Associate Members and other exhibitors, most of whom had never used a digital Trade Show platform like this. We created resources including a Help Centre, with direct support from the Cultural Enterprises team, and a webinar on how to make the most of the platform and how to use it well.

While the exhibitor numbers were lower than an onsite event, several Associate Members fed back that it was a successful Trade Show for them.

Overall we enjoyed our greatest number of delegates for any Conference and Trade Show (650) and also our widest spread, with attendees from Finland to the US. We created new memberships and lasting relationships with speakers and delegates which will bolster our network in coming years.

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Cultural Enterprises Conference

Glasgow Conference, March 2022

With a huge sense of relief and excitement we made a return to in-person events when we delivered our second major event of the year, the Conference and Trade Show at the SEC Glasgow on 2-3 March 2022.

Thanks to the support we received from Arts Council England’s Culture Recovery Fund we were able to underwrite the cost of attendance, with delegates paying less than 50% of the value of a full price two-day ticket. We also offered an increased number of bursary places, enabling as many members as possible to attend at a time when resources are still tight following two years of significant uncertainty.

We were privileged to be able to hold our social events in two of Glasgow’s most beautiful venues. A Civic Reception hosted by the Lord Provost of Glasgow took place at The Hunterian Art Gallery, and the Gala Dinner and Awards Ceremony saw over 220 guests enjoying the incredible Kelvingrove after hours.

The broad and impressive seminar programme covered a wide range of topics including retail, ecommerce, leadership, events and venue hire, publishing, catering, filming and photography, and an entire strand dedicated to environmental sustainability in the sector, inspiring new conversations in this area.

Swapcard was used as the event app, providing a library of digital content in place of the traditional printed collateral. The decision was taken not to live stream sessions, both because of costs and in order to keep the focus on delivering a high quality onsite event, however all the sessions were recorded and made available later as a box set, hosted on Swapcard.

A Climate Positive Event

Glasgow 2022 also saw us deliver our first climate positive Conference, certified by Earthly - a valuable exercise in forcing us to think carefully about all aspects of our planning and traditional collateral. We engaged Earthly to manage our carbon offsetting, and significantly reduced our printing, using fully recyclable badge materials, reusing existing resources, and encouraging attendees to travel by public transport.

As a team we are committed to continuing to embed environmental responsibility across our activities and further conversations will be had to discuss the impact of this approach and any changes we may want to make for 2023, as well as implementation across the full events programme in the future.

The Scottish Exhibition Centre, Glasgow

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Cultural Enterprises Conference

Trend Reports

As part of our goal to continue to add value for delegates, we commissioned a Trend Report, researched and written by an expert retail consultant. This was very well received, and made available to the full membership following the Conference.

This report will become an annual activity as part of the Conference, with plans to deliver it both as a written report, a visual display and an educational talk at the Conference, as well as explore the potential in commissioning trend reports in other areas of commercial activity such as venue hire.

Conclusion

Both Conferences in 2021-22 delivered inspiring talks, engaging panel sessions, and a lot of food for thought. We were honoured to host speakers from a huge range of organisations such as Black Country Living Museum, The Tank Museum, Royal Botanic Gardens Kew, Beamish Museum, Royal Opera House, Eden Project, English Heritage, Tate, National Museums Northern Ireland, National Trust for Scotland, The Garden Museum, Chester Zoo, Manchester Art Gallery, and from further afield including the US, Belgium and Germany.

We would like to thank all the speakers for the high quality of their presentations and for being so generous with their time and experience.

Many thanks also to the Associate Members who supported the events and helped make them such a success.

Showcase Sessions, Trade Show Hall, Glasgow

“What an inspiring couple of days we’ve had at the Cultural Enterprises Conference. Fascinating to hear colleagues from across the sector talk so passionately on a broad range of topics, and wonderful to meet so many new people from amazing organisations, all happily sharing experience and ideas.”

Gemma McQue Product Manager National Trust for Scotland

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Cultural Enterprises Awards

Just over 100 entries were received for this year’s Awards, celebrating creativity, innovation and talent in our sector across products, projects and people. Two new awards were introduced - the Digital Income Award acknowledging the growth of new digital revenue streams, and the Rising Star Award, recognising up and coming talent in the sector.

Thank you as always to our esteemed judges, who drew up a shortlist of three finalists in each category. The winners were announced and presented with their trophies at the Conference Gala Dinner at Kelvingrove Art Gallery and Museum. Congratulations to all our Finalists and Winners - richly deserved and a fabulous showcase of the incredible talent and creativity in our sector.

“What a great night this was, celebrating success in our industry and loving everyone’s optimism and ambition for the future.”

Karen O’Connor Director of Commercial Enterprises National Museums Liverpool

The Gala Dinner Awards Ceremony, Kelvingrove

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Award Winners 2022

Best Product

Fabric Pouch The Art House

Best Range

Vintage Textiles Museum of the Home

Best Publication

Hold Still: A Portrait of Our Nation in 2020 National Portrait Gallery

Best Children’s Publication

Alfred’s Adventure in the Children’s City Kettle’s Yard

Creative Commerce Award

Hidden Spaces Tour Historic Royal Palaces

Rising Star Award

Matthew Henderson Product Development Manager Beamish Museum

Green Award

PK Porthcurno

Best Licensed Product

National Trust Papers II National Trust

Best Supplier Initiative

Supporting Artisan Makers Just Trade

Best Shop

The Botanics Shop Royal Botanic Garden Edinburgh

Best Online Shop

shop.birminghammuseums.org.uk Birmingham Museums

Digital Income Award

Gharma Sunnu - Listen at Home The Gurkha Museum Trust

Outstanding Contribution Award

Patrick Trembath Gardener and Groundsman PK Porthcurno

Matthew Henderson, Beamish Museum, and Cultural Enterprises Trustee, Rising Star and Overall Winner as voted by Conference delegates.

Patrick (Paddy) Trembath, PK Porthcurno, Winner: Outstanding Contribution Award.

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Events Programme

As 2021 had become our Year of Digital, and taking into consideration the continuing impact of the pandemic on the sector, we planned the 2021-22 events programme around digital content, with just two onsite events – the AGM and Glasgow Conference and Trade Show.

The programme was designed to align with the three pillars underpinning all the Association’s activities this year - Consolidation, Creativity and Renewal. Digital events were comprised of the following distinct formats:

While commercial activities such as events, venue hire and catering were still restricted by government policies we focussed on the topics that could have the most impact for venues, such as retail, Christmas planning and ecommerce.

During the second half of the year it became clear the sector was seeing growing challenges with staffing and resources which led us to prioritise the planning and delivery of the Conference and Trade Show in March 2022.

In 2021-22 we held 44 events in total, engaging 609 delegates. 96% of all event attendees rated the content of the event as ‘Good’ or ‘Very Good’ (our top categories).

Our speakers came from a wide variety of organisations across the sector including Bletchley Park, The British Library, National Museums Liverpool, University of Edinburgh, Shopify, The Revels Office, National Gallery, Historic Royal Palaces, National Gallery of Ireland and Birmingham Museums Trust.

As always, we are grateful to all our speakers who give their time freely and share their expertise and we are most grateful to all delegates for their enthusiastic participation.

It is an ongoing journey to ensure that the programme delivers a consistently high level of quality and relevant content, and we welcome any thoughts from our membership.

“Thank you for an incredibly useful and informative masterclass. I really valued the shared insight and experience, and it was lovely to speak to the other delegates in the breakout rooms – it’s comforting to know that we all have shared challenges.”

Gemma Rainer Events Manager National Horse Racing Museum

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Cultural Enterprises Academy

March 2022 saw the culmination of the Academy project, which started publishing courses in early 2019. We’re pleased to say we have reached our target of 40 pieces of unique content commissioned and filmed as the financial year came to a close.

With these complete, we now have a library of 42 pieces of content (see Appendix 1 for the full list). This totals over £1,500 worth of educational content, included for free with Membership Plus, representing great value for money.

What’s next?

We will be integrating the Academy with our wider content plan for events and membership. We will retain the Academy name and branding, but all existing and new online content will be rearranged under one ‘resources’ banner, improving user experience and navigation. We want to make it easier for members to find the content they are looking for, regardless of media.

None of this would have been possible without Lucy ReesHarris, our Academy Programme Manager. Lucy brilliantly fielded all the topics and challenging subject matter experts threw at her, all while increasing the production quality and sticking to tight deadlines. Sales of jaffa cakes in the Gateshead area near the studio will plummet drastically!

The breadth and depth of subjects covered has been a rewarding challenge, and will be one of the lasting legacies of the project. As an organisation aiming to be representative of the sector and the people who work in it, it was important we explored further afield than ‘safe’ and popular subjects such as retail.

A key achievement was the successful application to the Certified Professional Development organisation for official CPD certification, proving the veracity and quality of our content and offering participants a clear outcome for their study.

Our aim is to build on the library of resources we have, add to them, and provide even more in-depth resources for cultural entrepreneurs across a range of disciplines.

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Cultural Enterprises Academy

T op 10 Most Enrolled Courses 2019-2022 Key Figures, May 2019 - April 2022

Course Title Unique
Enrolments
1 Retail Essentials: Visual Merchandising 403
2 Coaching and Mentoring 169
3 Retail Essentials: Shop Floor Skills 138
4 Retail Essentials: Buying 102
5 Successful Visitor Experiences 88
6 Hiring Diverse Teams 84
7 How to be a Visitor Experience Genius 83
8 Retail Essentials: Finance 76
9 eCommerce Essentials 55
10 Maximising Commercial Income 47
Subject Matter Experts Subject Matter Experts Subject Matter Experts
Consultants 54% Female 69%
Members 46% Male 31%
CPD Accredited Course Presenters
Yes
85%		 Writer 63%
No*
15%		 Actor 37%

*Unaccredited content includes early unstructured courses where there is no testing element, such as Hiring Diverse Teams, and the Podcast series.

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Mentoring Providing a free matching service for members, the Mentoring Programme continues to be a valuable membership benefit. Building on the success of the first year, in 2021-22 we added an additional half day of training for the mentees. This came after feedback from both mentors and mentees that the latter would benefit from some more guidance on how to get the most out of the experience, with a focus on creating professional and personal goals.

The 2021-22 cohort

Job Title Employer Mentor Mentee Employer Job Title
Head of Retail Abbey Road Studios Catherine Smith = Panagiota Kotoula Ministry of Stories Retail Manager
Head of Visitor
Experience		 Royal Yacht Britannia
Enterprises		 Robert Gill = Georgina Lewis Migration Museum Project Head of Development
Head of Merchandising
and Retail		 National Trust for
Scotland		 Caroline Reid = Kate Grindal Cadw - Welsh Heritage Retail Manager
Director of Operations
and Visitor Services		 Institute of
Contemporary Arts		 Tom Campbell = Michele Doyle Everyman and Playhouse
Theatres		 Operational Duty
Manager
Head of Retail and
Commercial Events		 Southbank Centre Amanda Pearlman = Christina Wood Natural History Museum Event Sales Manager
Head of Commercial
Operations		 The Tank Museum Simon Prager = Maud Steigler Royal Opera House Retail Operations
Coordinator

“I’ve found the programme very rewarding, leaving each session motivated and inspired. My mentor has made me feel more confident within my work and the knowledge I’ve gained will be invaluable in the future.”

Alice Escott, Mentee 2020 Shop Supervisor, Exeter Cathedral

“I’ve found it immensely rewarding being part of this programme. The training was superbly delivered but the biggest reason it’s been so good is the enjoyment and satisfaction I get from speaking regularly with my mentee.” Steve Gardam, Mentor 2020 Director, Roald Dahl Museum

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Marketing and Communications

Cultural Enterprises communications continue to play a key role in supporting the sector, keeping members informed and connected. The communications strategy has three strands – promoting upcoming events; sharing news and resources; and growing awareness of the organisation.

Our regular enewsletter, The Bottom Line, is a well-established source of news, resources and job opportunities, with over 5,200 subscribers and consistently high open rates of up to 30%. Around half our subscribers are non-members, making it an effective outreach tool for growing awareness within the sector.

The Cultural Enterprises blog covers the full spectrum of commercial activities, focussing especially on practical advice and creative inspiration. Some of the most popular articles have featured new revenue streams, advice on sustainable working practices and innovative retail ideas. Our members play a huge

part in contributing to the blog, making it a rich, varied and practical resource.

On the Cultural Enterprises website the What’s On page is a focus for upcoming events and campaigns. There is also now a Topics and Resources hub making it easier for users to browse all resources on a given subject in one place – including online Academy courses, upcoming events, podcasts, blog articles and more. There are currently 11 topics covering all areas of commercial activity as well as digital skills, sustainability and personal development.

Our social following continues to grow steadily, with a focus on Twitter as an avenue for job advertising, upcoming events and sector news. A strategy for other channels will be developed going forward.

Popular blogs: The Botanics Shop at Royal Botanic Garden Edinburgh (opposite); and the Escape Room at the Museum of the Order of St John (above).

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Museum Shop Sunday

Museum Shop Sunday took place on Sunday 28 November 2021 . In just five years this annual event has seen enormous growth, and now involves over 1,800 cultural shops worldwide. Over 230 shops took part in the UK in 2021, a 64% increase on 2019.

Instore events included tastings, product launches, book signings, arts and craft demonstrations, live music, craft fairs, and a Christmas hamper with locally sourced products. Online promotions also ran throughout the weekend.

The aim of Museum Shop Sunday is to raise the profile of retail in all types of non-profit cultural attractions (not just museums!). Participants in 2021 included BALTIC Centre for Contemporary Art, Bodleian Libraries, Dartmoor National Park, English Heritage, Royal Botanic Garden Edinburgh, SS Great Britain, Southbank Centre, The Art House and Yorkshire Sculpture Park.

The Museum Shop Sunday What’s On pages were by far the most popular pages on the Cultural Enterprises website throughout November. All events and promotions were listed, including links to participants’ online shops, and the pages were promoted via the Museum Shop Sunday socials. It was encouraging to see so many visitors to these pages, all eager to do their Christmas shopping at cultural attractions!

A significant number of non-member organisations also took part, showing how well-established Museum Shop Sunday has become within the wider sector.

The Museum Shop Sunday social following grew by over 30% in 2021, and there was a positive buzz around the hashtag #MuseumShopSunday throughout the weekend.

Museum Shop Sunday is a perfect opportunity to tell the stories behind products, highlight unique gifts and boost Christmas sales. It ties in perfectly with demand for unique, design-led and ethically sourced gifts, as well as the desire to support small business and independent designer makers. #GiftBetter and #ShopLocal were added to our list of campaign hashtags.

Overall we are really pleased with the growth in engagement and will continue to build on this in 2022.

“The international movement Museum Shop Sunday, spearheaded in the UK by the Association for Cultural Enterprises, is such a great sector wide feel good promotion of all our beautiful heritage shops … Our cultural enterprise sector rocks!”

Rebecca Hossain

Director of Commercial and Operations Sir John Soane’s Museum

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The Year Ahead

The Association continued to deliver useful content both in person and digitally throughout 2021-22, maintaining its role as Sector Support Organisation and community hub.

March 2022 saw the conclusion of stage 1 of the Online Academy. We will continue to add to this suite of 40+ units, all CPD accredited, of which we are immensely proud. Do dive in and learn in depth about all aspects of income generation. It is free to all Full Member Plus organisations and their teams.

This year also saw the research and development phase of Thruu, an exciting new ecommerce platform for the sector, ready for market testing to a state of launch readiness which we plan when the financial climate is more encouraging.

Fi Anderson joined our small team as Product Development Manager and is already someone we don’t know how we managed without. At the same time Lucy Rees-Harris became our very first Membership Coordinator and we are very excited that Lucy will help the membership grow in coming years, as well as caring for our existing members of the community.

Most importantly we managed the difficult balancing act of staying financially afloat whilst still delivering for our members through yet another difficult year.

Looking ahead to 2022-23 it remains a tricky time for all of us. Those who rely on funding have been nervously awaiting the outcome of Arts Council England support this autumn. Some have lost that funding and, whilst there will be transition arrangements, they will be forced to make tough decisions.

Hopefully, if we can all be as enterprising as possible, we can all come through. That is our mantra as an Association for the next year. This too will pass and we will come through.

I’ll see you in 12 months on the other side.

Jill Fenwick

Chief Executive Association for Cultural Enterprises

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Finance Report

For the year ending 31 March 2022

2021-22 again proved to be a difficult trading year for the Association, as it was for much of the cultural sector. Despite these circumstances, the Association has produced a pre-tax surplus of £12,697 over the course of the year.

We are again extremely grateful to Arts Council England for their continued support by way of a second grant from the Culture Recovery fund in the sum of £186k which helped to offset the impacts of the pandemic on our activities.

For the second year running our events programme was severely curtailed due to the pandemic. This again had a significant impact on our financial performance. We were however able to host two Conferences during the year, one digital and one in person, which both contributed to our outcome, although the Glasgow Conference and Trade Show in March 2022 understandably did not perform at the level of prepandemic events.

This year for the first time we have recognised the educational value of the Conference to the Charity. We have provided for a charge for this benefit from the trading company to the Charity of £56,114. This charge will be maintained in future years.

Membership income grew significantly during the year. Overall, full membership income rose by 19% to £53,044. Our traditional full membership showed a slight year on year decrease, but this was due to many members recognising the advantages of switching to our new membership plus option which increased by 145%. Associate membership grew, from a small base due to the pandemic, by 48% to £25,890.

Staff costs have risen by 23% to £319,269. This was mainly due to the creation of the new Product Development and eCommerce Manager posts.

Debtors have reduced from £198k in 2021 to £93k in 2022. In 2021 we were holding significant prepayments for the digital and Glasgow conferences. These amounts crystallised in 202122. Going forward, we still hold £45k of prepaid expenditure relating to the twice cancelled Harrogate conference. This will be released in 2022-23.

Creditors have also reduced , from £156k to £98k. The main cause of this reduction was the remaining balance of £71k of 2020 Harrogate Conference refunds being made during the year.

Despite a second year of extremely difficult circumstances, the Association has again ended the year with a satisfactory outcome and continues to operate with a sound financial foundation.

As a result of the surplus, funds carried forward total £434,449 (2021: £431,871). Of these, £360,000 have been designated for specific purposes.

Reserves Policy

Reserves are held to fund working capital, to provide resources for future activities, to offset unforeseeable shortfalls in income, and to protect the Association against unplanned adverse events. The Trustees have identified the following key factors in setting the level of reserves:

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Finance Report

For the year ending 31 March 2022

i. Volatility

The Association needs liquid funds for working capital requirements and to cope with fluctuations in income. To address this, we have taken two to three months of operating expenditure to create a target range for the level of free reserves. Based on current expenditure levels, this means we need between £109k and £164k in free reserves. The current value of free reserves is £74k (2021: £72k), which falls below the target range at this stage, however the Trustees are not concerned at this stage due to the levels of other designated reserves currently held and anticipate that we will be able to reach the appropriate level of free reserves in the near future.

ii. Annual Conference and Trade Show

The Conference and Trade Show make up a significant amount of our gross unrestricted revenue. We commit to conference venues well in advance and there is a risk of irrecoverable expenditure in the event of unforeseen problems. To offset this risk, the Conference Expenses Fund was created to cover costs associated with future conferences. £60k (2021: £60k) is held for these purposes.

iii. Development plans and increasing support for membership

In order for the Association to maintain effective services for members and the sector, it is important to create a sustainable financial foundation. The Trustees continue to explore ways to generate additional income and help improve organisational resilience. The Association Development Fund remains the main vehicle through which we set aside funds for future growth and development, and there is £100k in this fund (2021: £100k) which will be used to fund or underwrite any future developmental schemes.

iv. Preparing for adverse events

The pandemic has had unprecedented impacts on the Association, our members and the sector in general. We twice had to cancel the annual conference, we experienced entirely unpredicted reductions in core income, educational activity and membership numbers, and our subsidiary trading company (Cultural Enterprises Trading Ltd, CET) suffered accounting losses and cashflow difficulties.

We were fortunate to have Arts Council England’s support via the Culture Recovery Fund, which bolstered our financial position and allowed CET to return to profit. Without this the Association may have struggled to survive through this extended period of global uncertainty.

It is almost impossible to quantify the likelihood that such an enormous adverse event will occur again, or to assess the possible impact. However, the experience of the current global crisis has led the Trustees to conclude that the Association needs a more robust Reserves Policy which sets aside meaningful sums which are explicitly held to safeguard against unforeseeable, high impact and damaging events.

We have therefore created the Emergency Recovery Fund (ERF) through which we will set aside funds for the long term to provide reassurance for Trustees and members that the organisation will have the means to offset the effects of unanticipated, large scale future shocks and remain a going concern. These funds are not set aside for particular activities but will be deployed as necessary by the Trustees in the event of a major event necessitating the release of funds.

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Finance Report

For the year ending 31 March 2022

Due to the small surplus in this year, we have not added any further to this fund so the balance remains at £200k. The Trustees will continue to monitor the risks and operating environment in order to ascertain the appropriate level for this fund.

Risk Management

The Trustees have assessed the major risks to which the Charity and the group is exposed. We maintain a risk map and risk register in support of this activity that identifies risks as green, amber or red depending upon their severity and probability.

Red risks are those identified as having a high likelihood and high impact. The two red risks in our register as at the end of 2022 were:

Mitigations for both risks have been identified and implemented.

Going Concern

In preparing the Annual Report and Accounts, the Trustees have continued to adopt the going concern basis. The Trustees believe the charity will continue to operate for a period of at least 12 months from the date of approval of these financial statements and will continue to meet its liabilities as they fall due for payment. The Trustees have reached this conclusion based on the available reserves as at the end of the year, the likely costs and revenues of the coming year. Further details regarding the adoption of the going concern basis can be found in the Accounting Policies.

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Objects and Public Benefit

The Association for Cultural Enterprises is a charity established to deliver public benefit through the promotion of excellence in cultural trading, which contributes to the resilience and sustainability of cultural institutions.

In planning and overseeing the Association’s activities for the year, the Trustees have given due consideration to the guidance published by the Charity Commission relating to public benefit. The trustees have considered how the charity’s activities contribute to our aims and objectives and are satisfied that the Association is delivering benefits to the cultural and heritage sector via its member organisations.

The Association’s charitable purposes are part of the charity’s objects as stated in its Articles of Association:

  1. To provide education and training for all of its members and the general public on commerce in the cultural and heritage sector; and

  2. To promote the voluntary sector for the benefit of the public by assisting voluntary organisations and charities to maximise their revenue by providing a forum for sharing information and ideas on commerce in the cultural sector.

Activities for Achieving Objectives

The Association provides education and training to its members on a wide range of commercial activities (including publishing, licensing, venue hire, film locations, retail and catering) which helps members to maximise self-generated income for their organisations.

The Charity can call upon a considerable pool of expertise via its staff, Trustees, external experts and the general membership. All members are encouraged to take advantage of this expertise via formal training and online tools, as well as networks and contacts facilitated by the Charity’s activities.

Formal learning and development opportunities include:

Other learning and development opportunities include:

Three bursary places are available at each training event throughout the year, covering the cost of the delegate fee. These are limited to one delegate per member organisation. Additional bursaries are available for the annual Conference.

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Objects and Public Benefit

Membership Criteria

Membership is subject to the criteria set out in the Charity’s Articles of Association. Both Full and Associate Members are warmly encouraged to attend events and meetings, but voting is constitutionally allowed only to full member organisations through their nominated representatives.

Full membership is open to any cultural organisation that is established for public benefit and registered as a charity, or otherwise run not for profit. Such organisations include museums, galleries, libraries and archives, historic buildings and houses, including religious buildings, and historic gardens.

Associate (non-voting) Membership is open to any UK cultural organisation run for private profit and any commercial companies, firms or individuals that support the Association’s work. Non-profit, cultural organisations from outside the UK are also welcome to join as Associate Members.

Fundraising

The Association is funded by the subscriptions of its members, payments for education activities and profits from Cultural Enterprises (Trading) Limited. We are also supported by Arts Council England. We do not undertake any fundraising activity from the general public and as such we are not subscribed to any particular scheme of fundraising regulation.

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Structure, Governance and Management

Constitution

The Charity’s constitution originally consisted of a Memorandum and Articles of Association adopted at incorporation. These were subsequently amended and consolidated into a single set of Articles of Association. Cultural Enterprises (Trading) Limited (CET) is a trading subsidiary company of the Charity established by the Trustees in 2013 in order for the Charity to expand its activities and carry them out more profitably with less risk. CET’s activities comprise principally the Masterclasses and Conference, with any net operating profits being donated to the Charity under Gift Aid. The results of the company are included within the Charity’s consolidated accounts.

Appointment of Trustees

All Trustees are required to have one or more of the skills required to govern, manage and steer the Charity effectively. These skills include finance, retail, publishing, licensing, picture libraries, catering, film locations, venue hire, events management and general management expertise. Prospective Trustees are recruited by the means of advertisement on the Charity’s website and email broadcast with candidates being interviewed by a panel of Trustees and expert advisers for suitability. All Trustees are informed of their legal responsibilities to the Charity and of governance procedures generally. Further training is given to new Trustees on appointment. Following amendments made to the Articles of Association at the 2018 AGM, the Charity may appoint up to two independent Trustees from outside the membership, to its Board.

Key Management Personnel

Alongside the Trustees, all members of staff are considered key management personnel given the current scale of the Charity’s operations. This may change if the charity grows and will be reviewed annually. Setting pay within the Associaton is a matter for the Finance and Administration Committee. Initial salaries are discussed and agreed between the Chief Executive and the Trustees. An annual review of salaries is undertaken by the Finance and Administration Committee which takes into account performance, market rates for similar positions and the prevailing rate of inflation. The Committee are not bound to increase salaries annually. There is no bonus scheme or performance related pay mechanism. None of the Trustees receive remuneration for their roles as Trustees of the Association. Jill Fenwick and the other employees that make up the key management personnel of the Associaton are salaried staff, employed by the charity. The Association employees are also employees of CET.

Organisation

The Trustees delegate the Charity’s day to day work and implementation of strategy to the Chief Executive, Jill Fenwick, who is a full time employee of the Charity and Managing Director of the trading company. There are seven further employees, including two staff taken on specifically to create, roll out and manage the Cultural Enterprises Academy. Training courses are delivered either by staff from member organisations giving their time free of charge, or by industry professionals contracted to the Association or CET. Accountancy support is provided to both the Association and CET by Sandra Silk Bookkeeping. Secretarial and legal support is provided by Bates Wells.

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Statement of Trustees’ Reponsibilities

The Trustees (who are also directors of the Association for Cultural Enterprises for the purposes of company law) are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and UK 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 charitable company and the group and of the incoming resources and application of resources, including the income and expenditure, of the charitable group for that period.

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company and the group’s transactions and disclose with reasonable accuracy at any time the financial position of the charitable group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

This report has been prepared in accordance with the special provisions for small companies under Part 15 of the Companies Act 2006.

In preparing these financial statements, the Trustees are required to:

Approved by the Trustees on 22/11/22 and signed on their behalf by:

• observe the methods and principles in the Charities SORP;

Caroline Brown

Chair, Association for Cultural Enterprises

material departures disclosed and explained in the financial statements;

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable group will continue in operation.

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References and Administrative Details

Association for Cultural Enterprises

Company registered no. 06480726 Registered charity no. 1122763

Registered Office and Principal Trading Office

Unit B7, Durham Dales Centre Castle Gardens, Stanhope Bishop Auckland DL13 2FJ

Solicitor and Company Secretary

Bates Wells London LLP 10 Queen Street Place London EC4R 1BE

Independent Examiner

Philip Lamb Allen Sykes 5 Henson Close South Church Enterprise Park Bishop Auckland DL14 6WA

Banker

Unity Trust Bank Planetary Road Willenhall WV1 9DG

Trustees

C Brown ( Chair ) J Clarkson ( Treasurer, appointed Nov 2021 ) K S Coghill G Gandolfini (appointed Nov 2021) C P Gilbert ( independent ) M Henderson (appointed Nov 2021) Z Mensah A Misquitta J M Molloy (resigned May 2021) K Myles (appointed Nov 2021) D J Smith R Taylor I Watson ( independent ) L Wright

Finance and Administration Committee

C Brown J Clarkson J Fenwick K Myles

Management Team

F Anderson Product Development Manager T Dykes Director of Digital D Evangelides Business Development Manager J Fenwick Chief Executive J Heppell Administrator F O’Donovan Head of Events L Rees-Harris Membership Coordinator D Smith Finance Manager J Whitworth Communications & Media Manager

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Independent Examiner’s Report

I report to the trustees on my examination of the financial statements of the Association for Cultural Enterprises (‘the charity’) for the year ended 31 March 2022.

Responsibilities and Basis of Report

As the trustees of the company (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act’).

Having satisfied myself that the accounts of the company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the charity’s accounts as carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent Examiner’s Statement

Since the charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of the Institute of Chartered Accountants in England and Wales (ICAEW), which is one of the listed bodies.

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:

  1. accounting records were not kept in respect of the charity as required by section 386 of the 2006 Act; or

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

  3. the financial statements do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a ‘true and fair’ view which is not a matter considered as part of an independent examination; or

  4. the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

Signed:

Dated:

Mr P W Lamb FCA Independent Examiner Allen Sykes Limited 5 Henson Close Bishop Auckland DL14 6WA

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Consolidated Statement of Financial Activities

For the year ending 31 March 2022

For the year ending 31 March 2022
Unrestricted Funds Total Funds Total Funds
Note 2022 2022 2021
Income from: £ £ £
Memberships 2 53,044 53,044 44,557
Grants 2 391,848 391,848 401,137
Educational activities 3 12,297 12,297 11,985
Trading activities 4 226,303 226,303 29,630
Investments 5 14 14 96
Total income 683,506 683,506 487,405
Expenditure on:
Trading activities 4 279,030 279,030 93,958
Charitable activities 6 391,779 391,779 286,415
Total expenditure 670,809 670,809 385,373
Net income /(expenditure) before
other recognised gains and losses 12,697 12,697 102,032
Taxation on trading activities 10,119 10,119 -
2,578 2,578 102,032
Total funds brought forward 431,871 431,871 366,731
Total funds carried forward 434,449 434,449 329,839

All activities relate to continuing operations. The notes on pages 28 to 37 form part of these financial statements.

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Statement of Financial Position

For the year ending 31 March 2022
Group 2022 Group 2021 Charity 2022 Charity 2021
Note £ £ £ £
Fixed assets
Tangible assets 10 38,499 3,563 4,279 3,563
Investments 1 1
Total 38,499 3,563 4,280 3,564
Current assets
Debtors 11 93,934 198,316 54,924 138,414
Cash at bank and in hand 410,231 386,886 352,625 357,723
Total 504,165 585,202 407,549 496,137
Creditors
Amounts falling due within one year 12 108,215 156,894 54,739 67,830
Net current assets 395,950 428,308 352,810 428,307
Net assets 434,449 431,871 357,090 431,871
Charity funds
Unrestricted funds 434,449 431,871 357,090 431,871
Total funds 434,449 431,871 357,090 431,871

These financial statements have been prepared in accordance with the special provisions for small companies under Part 15 of the Companies Act 2006. The Trustees consider that the company is entitled to exemption from the requirement to have an audit under the provisions of section 477 of the Companies Act 2006 (‘the Act’) and members have not required the company to obtain an audit for the year in question in accordance with section 476 of the Act. The Trustees acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The financial statements were approved by the Trustees on …………………. and signed on their behalf by:………………………………………………………………..

Caroline Brown, Chair, Association for Cultural Enterprises

Company registered no. 06480726. The notes on pages 28 to 37 form part of these financial statements.

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Statement of Cash Flows

For the year ending 31 March 2022

For the year ending 31 March 2022
2022 2021
Note £ £
Cash fow from operating activities 17 61,184 (126,620)
Cash fows from investing activities
Payments to acquire tangible fxed assets (37,853) (1,408)
Receipts from sales of tangible fxed assets - 942
Interest received 14 96
Net cash fow from investing activities (37,839) (370)
Net increase / (decrease) in cash and cash equivalents 23,345 (126,990)
Cash and cash equivalents at beginning of year 386,886 513,876
Cash and cash equivalents at end of year 410,231 386,886

The notes on pages 28 to 37 form part of these financial statements.

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Notes to Financial Statements

For the year ending 31 March 2022

1. Accounting Policies

1.1 Basis of preparation

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

The Association for Cultural Enterprises 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 Statement of financial activities (SOFA) and Balance sheet consolidate the financial statements of the Charity and its subsidiary undertaking. The results of the subsidiary are consolidated on a line by line basis.

1.2 Company status

The company is a company limited by guarantee. The members of the company are the Trustees named on page 26. In the event of the company being wound up, the liability in respect of the guarantee is limited to £1 per member of the company.

1.3 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 company 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 company 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. Restricted reserves as at 31 March 2022: £0 (31 March 2021: £0).

1.4 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.

Donated services or facilities are recognised when the company has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use of the company of the item is probable and that economic benefit can be measured reliably.

On receipt, donated professional services and donated facilities are recognised on the basis of the value of the gift to the company which is the amount the company would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt. The charity utilises voluntary speakers as well as extra Trustee time and does not recognise this service as a gift in kind.

1.5 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,

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Notes to Financial Statements

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 equally between the charity and company.

Fundraising costs are those incurred in seeking voluntary contributions and do not include the costs of disseminating information in support of the charitable activities. Support costs are those costs incurred directly in support of expenditure on the objects of the company and include project management. Governance costs are those incurred in connection with administration of the company and compliance with constitutional and statutory requirements.

Charitable activities and Governance costs are costs incurred on the charity’s operations, including support costs and costs relating to the governance of the company apportioned to charitable activities.

1.6 Going concern

In preparing the Annual Report and Accounts, the Trustees have continued to adopt the going concern basis. The Trustees believe the charity will continue to operate for a period of at least 12 months from the date of approval of these financial statements and will continue to meet its liabilities as they fall due for payment. The Trustees have reached this conclusion based on the available reserves as at the end of the year, the likely costs and revenues of the coming year. Further details regarding the adoption of the going concern basis can be found in the Accounting Policies.

1.7 Basis of consolidation

The financial statements consolidate the accounts of the Charity and all of its subsidiary undertakings (‘subsidiaries’).

The Charity has taken advantage of the exemption contained within section 408 of the Companies Act 2006 not to present its own income and expenditure account.

The deficit for the year in the accounts of the Charity was £124,781 (2021: £34,107 surplus).

1.8 Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the company; this is normally upon notification of the interest paid or payable by the Bank.

1.9 Tangible fixed assets

Individual fixed assets costing £250 or more are capitalised at cost and are depreciated over their estimated useful economic lives on a straight line basis as follows:

1.10 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.

1.11 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.

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Notes to Financial Statements

1.12 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 pretax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised within interest payable and similar charges.

1.13 Financial instruments

The company 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.

1.14 Critical accounting judgements and key sources of estimation uncertainty

In preparing the financial statements, management is required to make estimates and assumptions which affect reported income, expenses, assets, liabilities and disclosure of contingent assets and liabilities. Use of available information and application of judgements are inherent in the formation of estimates, together with past experience and expectations of future events that are believed to be reasonable under the

circumstances. Actual results in the future could differ from such estimates.

Management do not consider there to be any material accounting estimates or judgements that need disclosure in these financial statements.

2. Memberships and Grants

2. Memberships and Grants
2022 2021
£ £
Full memberships 53,044 44,557
Grants (Arts Council England) 201,643 201,643
Culture Recovery Fund 190,205 137,982
Covid Business Grant - 10,000
Job Retention Scheme - 51,512
Total grants 391,848 401,137
Total memberships and grants 444,892 445,694

Note: Administration of the Associate Membership scheme passed to Cultural Enterprises (Trading) Ltd from 1 April 2020. Income from Associate Membership fees is included in the Trading Income figures in Note 4.

3. Educational Activities

3. Educational Activities
2022 2021
£ £
Learning and development 6,749 4,952
Donated gifts and services 4,000 5,000
Cultural Enterprises Academy 1,548 2,033
Total 12,297 11,985

The charity is grateful to the various organisations who donate their services and facilities either for free or for a reduced charge. An equivalent charge is included within charitable activities.

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Notes to Financial Statements

4. Trading Activities

4. Trading Activities
2022 2021
£ £
Trading income
Subsidiary company income 226,303 29,630
Subsidiary grant income 190,205 137,982
Total 416,508 167,612
Trading expenses
Subsidiary company expenditure 279,030 98,958
**Net income from trading activities ** 137,478 68,654
5. Investments
2022 2021
£ £
Bank interest 14 96
6. Charitable activities
Governance Administration Online Total Total
& Organisation Academy 2022 2021
£ £ £ £ £
Direct costs - 70,483 25,661 96,144 31,209
Support costs 10,129 177,637 107,869 295,635 255,206
Total 10,129 248,120 133,530 391,779 286,415
Total 2021 9,374 133,073 143,968

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Notes to Financial Statements

7. Charitable activities: direct costs

Administration Online Total Total
& Organisation Academy 2022 2021
£ £ £ £
Learning and development 3,147 - 3,147 3,397
Conferences and exhibitions 67,336 - 67,336 -
Development costs - - - -
Training day costs - - - -
Course costs - 25,661 25,661 27,812
Donated gifts and services - - - -
Total 70,483 25,661 96,144 31,209

8. Charitable activities: support costs

Governance Administration Online Total Total
& Organisation Academy 2022 2021
£ £ £ £ £
Legal and professional fees 4,004 - 20,925 24,929 27,260
Insurance - 5,716 - 5,716 303
Administrative costs - 33,082 1,033 34,115 31,738
Advertising and marketing - 3,822 2,160 5,982 6,501
Accountancy fees - 4,785 - 4,785 5,397
Independent examination fees 2,125 - - 2,125 2,113
Travel and subsistence - 4,064 72 4,136 676
Wages and salaries - 102,437 83,679 186,116 156,718
Social security costs - 15,366 - 15,366 12,283
Pension costs - 8,365 - 8,365 7,217
Donated gifts and services 4,000 - - 4,000 5,000
Total 10,129 177,637 107,869 295,635 255,206
Total 2021 9,374 129,676 116,156

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Notes to Financial Statements

9. Staff Costs

9. Staf Costs
2022 2021
£ £
Wages and salaries 181,867 156,718
Social security costs 15,366 12,283
Pension costs 8,365 7,217
Other employee benefts 4,249 -
Total 209,847 176,218

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

2022 2021 Administration and organisation 7 6

No employee received remuneration amounting to more than £60,000 in either year.

No remuneration, directly or indirectly, was paid or deemed payable for either period to any Trustee or persons known to be connected with them. All members of staff are considered key management personnel. The total compensation paid to key management personnel is therefore the total staff costs.

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Notes to Financial Statements

10. Tangible fixed assets: Group and Charity

Group Group Charity Charity
Computer Total Computer Total
Equipment Equipment
£ £ £ £
Cost
At 1 April 2021 11,029 11,029 11,029 11,029
Additions 37,853 37,853 3,633 3,633
Disposals - - - -
At 31 March 2022 48,882 48,882 14,662 14,662
Depreciation
At 1 April 2021 7,466 7,466 7,466 7,466
Charge for the year 2,917 2,917 2,917 2,917
Disposals - - - -
At 31 March 2022 10,383 10,383 10,383 10,383
Net book value
At 31 March 2022 38,499 38,499 4,279 4,279
At 31 March 2021 3,563 3,563 3,563 3,563
11. Debtors
Group Group Charity Charity
2022 2021 2022 2021
£ £ £ £
Trade debtors 15,142 34,103 10,558 30,177
Amounts owed by group undertakings - - 24,053 102,828
Other debtors 6,482 31,755 440 -
Prepayments and accrued income 72,310 132,458 19,873 5,409
Total 93,934 198,316 54,924 138,414

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Notes to Financial Statements

12. Creditors: amounts falling due within one year

Group Group Charity Charity
2022 2021 2022 2021
£ £ £ £
Trade creditors 49,056 7,990 16,438 6,721
Other taxation and social security 18,152 5,973 8,033 5,973
Other creditors 2,953 2,564 2,953 2,564
Income in advance 35,104 132,006 25,565 49,176
Accruals and deferred income 2,950 8,361 1,750 3,396
Total 108,215 156,894 54,739 67,830
13. Summary of funds
Brought Income Expenditure Transfers Carried
forward forward
£ £ £ £ £
General funds 71,871 683,506 680,928 - 74,449
Designated funds
ACE development fund 100,000 - - - 100,000
Conference expenses fund 60,000 - - - 60,000
Emergency recovery fund 200,000 - - - 200,000
Total 431,871 683,506 680,928 - 434,449

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Notes to Financial Statements

14. Analysis of net assets between funds

Unrestricted Total funds Total funds
funds 2022 2021
Group £ £ £
Tangible fxed assets 38,499 38,499 3,563
Current assets 504,165 504,165 585,202
Creditors less than one year (108,215) (108,215) (156,894)
Total 434,449 434,449 431,871
Unrestricted Total funds Total funds
funds 2022 2021
Charity £ £ £
Tangible fxed assets 4,280 4,280 4,280
Current assets 407,549 407,549 407,549
Creditors less than one year (54,739) (54,739) (54,739)
Total 357,090 357,090 357,090

15. Related Party Transactions

There have been no transactions undertaken with related parties during the year. Member organisations are not considered to be related parties.

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Notes to Financial Statements

16. Principal Subsidiaries

Cultural Enterprises (Trading) Limited

Subsidiary name Cultural Enterprises (Trading) Limited Company registration no. 08690077 Country United Kingdom Equity shareholding % 100% Directors Laura Cave Jo Clarkson (appointed 12 December 2021) Jill Fenwick Chris Gilbert (resigned 21 October 2021) Anthony Misquitta Julie Molloy (resigned 20 May 2021) Kingston Myles (appointed 12 December 2021)

The net assets for the year dealt within the accounts of the subsidiary was £77,360 (2021:£1). The profit/(loss) for the year of the subsidiary undertakings was £77,359 (2021:£68,654).

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

2022 2021 £ £ Net income /(expenditure) for the year 2,578 102,032 Interest receivable (14) (96) Depreciation of tangible fixed assets 2,917 3,848 (Increase) / decrease in debtors 104,382 (221,844) Increase / (decrease) in creditors -58,798 -10,560 Taxation charged 10,119 - Total 61,184 (126,620)

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Appendix 1: Academy Content

Subject Title Course Creator Organisation
Catering Catering Essentials: Introduction to Catering Sandra Reid Fare Consulting
Catering Essentials: The Next Steps Sandra Reid Fare Consulting
Catering Essentials: Finance Tonic Tonic
Catering Essentials: Catering Models Tonic Tonic
Events Essentials: Events and Venue Hire Amy Haigh Manchester Art Gallery
Hosting Weddings in Cultural Venues Eleanor Harris iXperience
Filming and Photography Jennifer Leatherby Imperial War Museums
Ticketed Events and Experiences Lucy Woodbridge Imperial War Museums
Legal Negotiating Contracts Anthony Misquitta V&A
Essentials: Copyright Naomi Korn Naomi Korn
Leadership Hiring Diverse Teams Gabriela Gandolfni Royal Opera House_(at time of recording)_
Leading Yourself and Others Mark Hughes mch Positive Impact
Coaching and Mentoring Gabriela Gandolfni Royal Opera House_(at time of recording)_
Licensing Essentials: Licensing Saskia Boersma London Fire Brigade
Advanced: Licensing Saskia Boersma London Fire Brigade
Publishing Introduction to Publishing Rory Hill Snape Maltings
Ticketing Essentials: Ticketing Francesca di Nuzzo Baker Richards
Visitor Experience Developing Guided Tours Rachel Mackay Historic Royal Palaces
Top 10 Tips: Visitor Experience Rachel Mackay Historic Royal Palaces
Creating a Compelling Visitor Experience (two courses) Bala McAlinn Complete Works
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Appendix 1: Academy Content

Subject Title Course Creator Organisation
Retail Visual Merchandising and Consumer Psychology Katy Trodd Consultant
Bespoke Product Development Laura Pryke Kettle’s Yard
PR for Cultural Retail Hilary Frohlich Neat PR
Essentials: eCommerce Emma Forward Consultant
Advanced: eCommerce Emma Forward Consultant
Advanced: Visual Merchandising Maxine Groucutt Consultant
Retail Essentials: Shop Floor Skills Perry Bushell Museum of Freemasonry
Retail Essentials: Visual Merchandising Perry Bushell Museum of Freemasonry
Retail Essentials: Finance Perry Bushell Museum of Freemasonry
Retail Essentials: Buying Perry Bushell Museum of Freemasonry
Strategy Creating a Commercial Digital Strategy Tara Parashar Consultant
Sustainable and Good Environmental Practice Louise Kirby The Deep
Brand and Storytelling Theresa White Consultant
Maximising Commercial Income David Reece Baker Richards
How to Write a P&L Eleanor Harris iXperience
Ten Steps to Successful Membership Martin Barden Consultant
Crowdfunding Jo Breeze Consultant
Podcast Cultural Enterprises Podcast Series 3 Various Various
Cultural Enterprises Podcast Series 2 Various Various
Cultural Enterprises Podcast Series 1 Various Various
39

culturalenterprises.org.uk Registered charity no. 1122763