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Annual Report 2023-24 Trustees, Report Treasurer's Report 27 Objects and Public Benefit 30 Structure, Governance and Management 32 Statement of Trustees, Responsibilities 34 References and Administrative Details 36 Independent Examiner's Report 38 Consolidated Statement of Financial Artivities 40 Charity and Consolidated Balance Sheet 41 Statement of Cash Flows 42 Notes to Financial Statements 43
Annual Report 2023-24 INTRODUCTION 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 2024, 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).
Annual Report 2023-24 OUR VISION, MISSION ANDSTRATEGICIIMS Our vision is to empower the cultural sector to secure a sustainable future. Our mission is to promote comiTAercial"bes't tiractice'in the cultural sector by. harnessing the combined strength of our community's knowledge and experience. We deliver education and build connections across all areas of self-generated income, for everyone at every stage of their career. To deliver our vision and mission we aim to meet the following strategic aims: To become an environmentally sustainable business and champion education in environmental responsibility in the sector. To become less reliant on external funding for our core costs whilst continuing to explore all suitable funding sources for project funding. To raise our profile across the sector. To grow and develop oui membership. To be recognised as the sector leader in delivering content to improve commercial skills and revenue generation. To transforrn into a data-led and digitally forward organisation. To grow as a supportive and progressive employer.
Annual Report 2023-24: Chair's Welcome CHAIR'S WELCOME I'm delighted to introduce you to the Annual Report for the Association for Cultural Enterprises 2023-24. In it you will find an overwhelmingly positive response to the continuing and significant challenges we face within the sector. During the year we experienced membership growth, our largest ever conference, new services and benefits to our members and a fantastic response to our programme. I recommend the report to you, as it certainly_makes an uplifting read. The year was one of significant change within the organisation as we said farewell to our retiring CEO, Jill Fenwick, a hugely positive and impactful advocate for the work of the Association and one of the founders of the organisation as we know it today. In Gordon Morrison we have been fortunate to appoint another leader with a great passion, energy and vision for the organisation. Both CEOS have been supported by a fantastic team who remained steadfast through the transition period and I would like to pass my thanks to all of them. As the conference closed my tenure as Chair came to an end. As I reflect on my time in post all I can really say is that I have been blessed to work with such a wonderful team and board, and to have spent nine years in the company of our members - people filled with knowledge, creativityi passion and fun. I was delighted to pass on the baton to Melanie Lewis who I know to be a skilled and passionate advocate for the sector and for the work that the Association does within it. I would like to thank all of my colleagues for their support and hard work and as I hand over to Melanie I look forward to seeing the innovations and successes to come. CAROLINE BROWN Chair of Trustees (to March 2024)
Annual Report 2023-24: Chair's Welcome As I step into the role of Chaii for the Association for Cultural Enteiprises, l am both honoured and excited to be part of an organisation that has been pivotal throughout my career, as it has for so many in our sector. The leadership and dedication shown by Jill Fenwick and Caroline Brown have shaped the association into the impactful organisation it is today one cortiiiiitted to advancing commerr.i al excellence and fostering a vibrant network of leaders. On behalf of the Board, the Association team, and our members, I extend our heartfelt gratitude to Jill and Caroline for their remarkable contributions. We are committed to building on their legacy and driving our mission forward. This year's Annual Report captures the themes of growth, resilience, and innovation. It is an -inspiring read th,at highlights the strides we've made together as a community. Caroline notes the significant change in leadership of the Association ovér the-last'12 Inonths and this- change is also reflected in our reporting. You will see some performance figures demonstrating a downturn to previous years. this is attributed to some decisions we've taken as a Board of Trustees on directlDn, where to invest, and how to grow. With our new CEO Gordon Morrison leading an outstanding team, that growth is taking shape at a pace, and the Association is at the forefront of addressing botli the challenges and opportunities within our sector. Gordon's vision and the dedication of our entire team and Board of Trustees reflect our shared commitrnent to advancing the role of cultural enterprises. Over the next 12 months, l encourage you to consider how the Association can best support your ambitions and how we can deliver what you most need. I look forward to collaborating with each of you as we continue to innovate, grow, and make a lasting impact. I hope to see you at our annual Conference in Liverpool in March 2025, it is set to be a blockbuster evet, where we can connect and look toward an exciting future together. MELANIE LEWIS Chair of Trustees (from March 2024)
Annual Report 2023-24: Membership ERSHIP The year to March 2024 saw a steady and positive increase in overall membership, ending the year 170/0 higher with 475 member organisations - 325 Members and 150 Associates. Our membership comprises a diverse range of organisations, from all corners of the UK and bpynnd, representing different sizes, types, and specialisms. We are also proud to support several organisations throughout the year with membership bursaries, targeted at organisations with turnover below £25ok per annum. . We. continue to look at creative ways of developing the membership, creating partnerships, and ensuring Cultural Enterprises is a 'must have, membership for all cultural institutions. What's next We're continuing to develop our membership offer with the launch of a new Supplier Directory and Exclusive Member Offers. We're currently working on a new and improved Jobs Board, and a Member Forum, providing an additional space to connect with peers and pose questions to the wider community. SS Great Britain, Bristol
Annual Report 2023-24: Membership Members by Organisation Type Ar.t,Gallery 'Universi ,Garden. Park.. o.... s.av, lous Preml:. HlsloriuHous.. ..PerfoTrnlng..Arts ,National Llbrary L.'ocal Government 'Museurn Members by Location London South Wesl South Easl Yorkshire Scotland North Wesl West Midlands East North East Wales Eagl Midlands Northern Irel.. 40. 60 80 No. Members by Annual Turnover Inlemalional 3.7Yo. Over £5m Up lo £250 £lm-£5m 21.6.10 £250k- £1m 28.2%:
Annual Report 2023-24: Events EVENTS The Cultural Enterprises Events Programme delivers valuable expert-led training and peer-to- peer learning across all commercial activities within the sector including retail, ecommerce, visual rnerchandising, events and venue hire, brand licensingi image sales and picture libraries, performing arts, finance and strategy. Highlights of the 2023-24 prograrnme included: Behind the Scenes: PerformingArts Invaluable access to.the cornmercial teams behind two theatres,-Shakespeare's Globe and.-_ - Little Angel Theatre (including a visit from the Little Angel resident cat!). Content covered audiences, marketing campaigns, awaid-winning retail offers, generating incorne from tours, and bringing creatives into the core of cornmercial delivery. Product Development and Range Planning Masterclass Exclusive access to the retail team behind London Transport Museum's product ranges. Real peer-to-peer exchange of experience, successes and challenges creating the opportunity to connect and network with other retailers in the cultural community. ASVAConference 2023 Our first partnership event, delivering a new stream of commercially focused content to the ASVA audience, with inspirational voices, case studies and new suppliers from our membership that they would not usually have access to. An opportunity for our own members to make new contacts too. What's Next We'll continue to deliver inspirational and engaging training events and networking opportunities to support income generation in the cultural sector. Welll deliver our events in a hybrid format and increase our bursary offer, ensuring the events programme is fully accessible to our membership. ve.r¥age satisf,act,ion acros.S progtsr,am:me
Annual Report 2023-24: Events or,ganisat,ions :. tat,.tended anJev,e.nt ', So much inforrnation and so inspirational. Great break out rooms - loved the mix of some people with no experience like me and others having more - great just to hear the differences!
Annual Report 2023-24: Conference CONFERENCE The Cultural Enterprises Conference is the must attend event for the cultural sector, with voices from across the sector and beyond sharing inspiring case studies and innovative ideas to help our members maximise their existing income streams and identify new ones. Highlights -This_was our biggest Conference to date with 450 delegates (35010 up on 2023), as well as 45 speakers and loo exhibitors at a world class venué, ICC Wales. An inspirational opening session by our international keynote speaker, Ann Morrow Johnson from Disney Imagineeringi set a positive and upbeat tone for the two days. There was a real buzz throughout the event, with connections being made and conversations touching on everything from strategy and senior leadership to shopfloor challenges and opportunities. Delegates cited the programme> quality of speakers, variety of exhibitors, networking opportunities, and in depth conversations as among their highlights. What's Next We will continue to develop and enhance the Conference programme, delivering invaluable content for all commercial teams across the sector. We'll ensure our members hear from influential leaders from across the sector and beyond, and provide unmissable networking opportunities to grow the community. Probably the most useful and relevant conference in terms of content that I have.ever been to. over,all as Exc.el:lent
' Annual Report 2023~24: Conference IY4p 60 A truly inspiring Conference. I'm excited for the future and leaviiig with many ideas to action over the coming months. Christina Pascoe, National Venue Hire Manager, English Heritage 00 99 So many inspiring talks that reframed how I look at what we do - the uniquely collaborative air of cultural commerce has really shone through. Every year the Conference feels like a meaningful pause on the value of what we do. Allison Everett, Buying & Retail Monoger, Fruitmarket 99 13" 1SustalningCultUf e
Annual Report 2023-24: Trade Show new exhibitors plan to return In 2025 00 There's a real sense of Lollaboratioii aiid community, not only with dclegates but also with like-minded suppliers, It's so refreshing and inspiring, 99
Annual Report 2023-24: Awards AWARDS Celebrating success, innovation and creativity in cultural income generation, the Cultural Enterprises Awards provide a platfonn to showcase commercial best practice, an essential source of inspiration for our members as well as the wider sector. Highlights The 2024 Awards attracted a record number of entries (24010 increase vs 2023). New categories, Best Café and Best Ticketed Event, created even more opportunities for commercial tearns to engage with the Awards and gain recognition. The judging panel was drawn from across the sector reflecting a range of experience across all areas of commercial activity, including specialists in retail, cateringi events and ecornmerce. What s Next The Cultural Enterprises Awards are central to our goal of supporting and championing best practice across all areas of cultural income generation. To further this, we will be looking to broaden the scope of categories in 2024-25 - creating even more opportunities to showcase commercial innovation across the sector. 60 Reading through all the amazing entries gave me a real sense of the level of creativity and enterprise that is taking place across our sector. David Fenton, Head of Retail, Admissions, Publishing & Licensing, Imperial Warmuseums 99 See all Finalists Best Product, Kettle's Yard
Annual Report 2023-24: Awards Sustainability was a strong theme, with materials being repurposed to create unique gifts such as 'From the Stage, by Shakespeare's Globe (below right) and The Deep's 'Salt Bag to Tote Bag, (right) .'A'OUARIUNSY',! clockwi5efrom top.. Best Cofe, South London Gallery. Best Shop, Migration Museum; Creative Commerce Finalist, The Deep. Creative Commerce Winner, Shakespeare's Globe" Best Range, Natural History Museum
Annual Report 2023-24: Seeds of Change SEEDS OF CHANGE Seeds of Change is our new £10,000 prize fund designed to encourage ethical and sustainable practice in the cultural and heritage commercial sector. The prize fund will be awarded annually to one or more of our members to enable them to embark upon an inspiring project with sustainability at its core, that generates commercial income and has the potential to be replicated across the sector. Highlights Three finalists were shortlisted, with the inaugural prize fund being awarded to Edinburgh based gallery Fruitmarket for its innovative Future Makers project. The prize giving ceremony created an opportunity to host our first exclusive Senior Leaders event, bringing together leaders from across the sector and providing a space for networking and knowledge sharing. The project also provided the impetus to create a Sustainability Working Groupg made up of professionals operating within the commercial and cultural sector. This group played an invaluable role in helping to design and judge the Seeds of Change prize fund, and now continues to support and offer advice on our sustainable endeavours. What's Next We'll be following the progress of the winning project and sharing updates with members, creating the potential for this initiative to be explored and irnplemented across the sector. Seeds of Change Winner5Alli50n Everett, Buying and Retail Monager ond Kathleen Glancy, Development Manager, Fruitmarket
Annual Report 2023-24: Seeds of Change Our key aim is to foster greater creativity and dynamism within the cultural sector when it comes to both financial and environmental sustainability. With Seeds of Change we are providing direct, tangible support as well as inspirational ideas for the sector. Gordon Morrison, CEO, Cultural Enterprises The Seeds of Change prize fund 1] actively encourage positive change within the cultural sector, offering Cultural Enterprises members the chance to learn from and develop sustainable outcomes. Andrea Nicholas, CEO, Green Toiirism (Seed5 of Change Event Sponsor) The standard of applications for the first Seeds of Change award has been exceptionally high, reflecting a promising shift towards a more sustainable and environmentally conscious cultural landscape. Jcnnifer Leaman, Global Head of Eniiironment and Prodiict Sustainability, Clark 18
Annual Report 2023-24: Museum Shop Sunday MUSEUM SHOP SUNDAY Museum Shop Sunday continues to generate huge enthusiasm from members and the wider sector, creating a focal point to collectively showcase the fantastic retail offer at cultural venues and the vital role it performs. It offers a great platform for cultural organisations of all types to showcase products, reach new audiences and boost sales. Highlights The 2023 campaign was supported by partners across- the sector'including AILS Couiicil-, England and the Museums Association, who dubbed it an important date on the sector's retail calendar Each year we see a greater variety of cultural attractions getting involved, including theatres, libraries, cathedrals, heritage railways, historic houses, gardens and even national parks. Social engagement increased with participants providing a wealth of product imagery and stories that were ideal for creating engaging social content. What's Next We'll continue to lead the annual Museum Shop Sunday campaign, working closely with our colleagues in the US and sector partners here in the UK to continue to grow participation as well as awareness of our own work and aims. We were very pleased to be part of Museum Shop Sunday. We certainly saw an increase in sales and visitors on the day, and the exposure on social media helped us grow our audience too. The Silk Museum 99 National Portrait Gallery
Annual Report 2023-24: Museum Shop Sunday worldwide participants SUNDAY UK participants 06 The atmosphere on the day was a huge success. Sunday was a much stronger day than Saturday) despite 110 productiuiis, wliicli is uiiubual. We'll definitely be taking part again next year. Sue Carvell, Head of Retail, Royal Opera House 99 Clockwisefrom top.. The Courtaiild; Fruitmarket,. Grimm & Co fj•r*lP.trtz
'Annual Report 2023-24. Mentoring MENTORING The Cultural Enterprises Mentoring Programme continues to be a valuable experience for those involved and another completely free membership benefit. Participants attend a full day of online training, including an introduction to mentoring and matching session. Mentors receive an additional full day of trainingi and mentees a half day of training and advice. The 2023-24 Cohort ment.or Mentee ob-Ti[le E,inployer Black Country Living Museum National Memorial Aboretum Chief Operating Officer Paul Crofts Lianne ]0S0n Marketing Manager Director Visitor Experience & Operations Yorkmlnster Barbara George Amanda Stallard Development Manager Army Flying Museum Royal Opera House Volunteer & Shift Coordinator Wales Millennium Centre Head of Retail Sue Carvell Laura Fear Chiswick House & Gardens Trust Edinburgh Festival Fringe Society Director Xanthe anitakis Kirsty Fraser Artist Development Manager Manchester Art Gallery Commercial Lead Amy Haigh Holly Burrows Comrnercial Manager The Cartoon Museum Tullie House Museum Head of Finance & Operations Katie Proud Olivia Mundy Shop Coordinator Van Gogh House London & Gallery CIC Ashrnolean Museum Head of Regenerative Tourism Head of Events Wendy Ball Claire Bates Pembrokeshire Coast National Park
Annual Report 2023-24. Mentoring Working closely with my fantastic mentor and checking in regularly with other mentees I've grown exponentially in confidence, which brings with it real pride. It's not often that you're able to stop and pause before moving forward in your career, so thank you to Cultural Enterprises for giving me the opportunity to do so. Lianne Joynson, Marketing Manager, National Mernorial Arboretum It gives you the space to develop personally and professionally in a safe and supportive way that allows you to be the best version of yourself for you) your team and those around you. It's great to have someone outside your day to day bubble to help you work through things, big and small. Laura Fear, Volunteer & Shift Coordinator, Wales Milleniiim Centre For mentees, it's a great way to build your network, gain an ally in the sector and have a confidante who can understand your situation without being 'in' it. For mentors it's an invaluable opportunity to gain experience in working with brilliant people to help them realise their goals. Amy Haigh, Commercial Lead, ManchesterArt Gallery 22
Annual Report 2023-24: Academy ACADEMY The Cultural Enterprises Academy offers over 40 units of CPD accredited learning available free of charge to all staff in member organisations - an incredible member benefit worth nearly £2,000 per person. Enrolments are up 32010 in 2023-24 compared to the previous year, with the most popular , courses being:. . Retail Essentials: Shop Floor Skills Retail Essentials: Visual Merchandising Leading Yourself and Others How to Ace a P&L What's next New courses are in production, and we're excited to be launching the following in 2024: Creating a Transformative Visitor Experience Value Led Visitor Journey Design An Introduction to Mentoring and Coaching Finding the Right Ticketing System c,o.urts.e.s . 23 Behind the scenesfilmingfor theAcademy
Annual Report 2023-24. Podcast ARTS & CULTURE PODCAST In October 2023 we launched a new podcast designed to raise the Association's profile and highlight our role at the heart of thought leadership and best practice. To capture the broad scope of the conversations to be had, the podcast was christened Arts & Culture, and reached just over 1,000 downloads by March 2024, which is a fantastic start for a brand new podcast. Highlights Visitor Experience at Hampton Court Palace and Young V&A Small but Mighty: Sir John Soane's Museum and the Roald Dahl Museum Delving into the Funding Crisis - as a thought leader in the sector, this landmark episode was an important breakthrough, featuring a Councillor from the Local Government Association alongside the CEOS of Nottingham Playhouse and Birmingham Museums Trust. We believe it is irnportant to feature a diverse Mix of guests, representing a range of seniorities, backgrounds, locations, and types of organisation. What's Next We'll continue to tackle the most important subjects affecting the cultural sector, with upcoming episodes focusing on opportunities and challenges in ticketing and commercial marketing. Arts & Culture is created and hosted by our Di¥iL(Il DiieLLur Tum Dawson, with thanks to King & McGaw for their sponsorship. Ton? cliats toAiiiy Akino- Wiittering at Young V&A
' Annual Report 2023-24: Looking Ahead LOOKING AHEAD As CEO I have the privilege of reading through this report and reflecting on the successes that the Association has enjoyed over the last year. It was a year of considerable change at the top. Not only was there a change of CEO halfway through the year, we also found ourselves looking for a new Chair, with Caroline Brown stepping down after nine years of outstanding service to the Association. l am delighted that we have now appointed our new Chair, Melanie Lewis, Director of Strategy and Business Development at Historic England, who expertly took up the reins in March 2024. Those of you who know Melanie will know of her passion for culture and for the crucial role that commercial activity plays in sustaining the sector. Together th our dedicated and highly skilled Board of Trustees, Melanie is leading the Association superbly at a vital time, and despite the ongoing challenges for the sector, l am looking positively to the year ahead. I have spent much of my first year in the role as CEO travelling around, engaging with members and building a greater understanding of the needs of both members and the wider sector. As many of you will recall, one of my first major actions upon joining the Association was to conduct a comprehensive membership survey, establishing what our members think about what we do, what services they like, what they use most, and crucially what they want more of from us in the future. From this work, I can safely say that the overall picture is very clear. At a tirne of unprecedented cuts to core funding across the sector and ever increasing rising costs, our members are looking for practical support to help them generate more income, be that through the development of new revenue streanis or through realising the full potential of existing ones. 25
Annual Report 2023-24: Looking Ahead Through analysing the data and insights provided by our members in their hundreds in the membership survey, I have identified clear steps that the Association will take to support our members over the next 12 months: We will gather more data and insights to share with our members to inform strategic and operational decision making. We will facilitate more peer to peer engagement between our members, giving thern more opportunities to pick up insights and best practice from each other. We will provide yet more practical and meaningful education and training for our members, including the development of bespoke training for the next generation of commercial leaders in the sector. We will provide more"inspiration-and share more best.pract.ice, both from within. thp.. sector and beyond, expanding our collective horizons and learning from the best across multiple sectors. We will provide more added value for our members while keeping our prices down, with newi practical benefits launched to help members improve their offering and maxirnise their returns. Our commitrnent is that our membership fees will remain at an affordable level for all, with free bursary memberships available for those with the greatest need. I am acutely aware of how challenging the next year will be for many operators within our membership. l am, however, very positive that the support the Association can and will provide will make a meaningful difference, supporting you with the tools that you need to not just survive, but to thrive. I look forward to working with you as we undertake this next exciting step in our journey together. GORDON MORRISON Chief Executive 26
Annual Report 2023-24: Treasurer's Report TREASURER'S REPORT For the year ending 31 March 2024 The deficit for the year increased from £97,662 in 2023 to £144,352 in 2024. There were several one- off events which significantly contributed to this outcorne. When setting the budget for the year ended 31 March 1024 the Board corIiiiLiLl¥Q L'u ieleasing £30,000 from the development fund designated reserve to cover the cost of recruiting the new CEO (£20,000) and to fund an EDI project (£10,000). Additionallyi the Board took the decision to write off the whole investment in the Thruu ecommerce project (£48,220) as, due to the changed economic environment since it was created, it was no longer deemed to be commercially viable. After excluding these one-off costs the trading deficit for the year was reduced to £66,132 from the previous year deficit of £97,662. There is confidence that the Association will return to producing a surplus in the year ending 31 March 2025. Income for the year was £808,363 of which £201,643 was grant income. we are once again grateful to the Arts Council England for their continued support. NLembership income of £81,756 is a 350/0 increase on the previous year's income of £60,595. Also, Associate Membership (included in trading activities) showed a significant increase of 260/0 over the previous from £30,069 to £37,899. Both increases were due to a combination of increased rates and membership numbers. This trend continues in the year ending 31 March 2025. 27
Annual Report 2023-24: Treasurer's Report Income from educational activities has increased versus 2023 inconie by £6,750 due to increases in both in-peison and online events throughout the year and also an increase in conference delegate income which was slightly up on 2023 by £2,193. The trade show commercial element of the conference revenue, which is contained within trading activities, increased by over £35,000 compared to the year ended 31 March 2023. The Conference and Trade-Show-, despite-increased_cost.s-(-£424,054.compar.ed_to_£.29.4,-6_7_ in the year ended 31 March 2023), still produced an increased margin of ioolo compared to 2022-23. Direct costs are broadly in line with last year at £172,157 (2023: £153,264) while support costs, within the Charity, showed a 120h increase on the previous year. There were three areas which made up most of this increase. Staff costs increased by iiolo. This was primarily due to an 80/0 salary award as well as a briet transition period where our retiring and incoming CEOS were both in our employment. Travel and subsistence costs grew.from £18,000 in 2023 to £36,000 in 2023-24 due to increased travel needs. Advertising and marketing expenditure grew from £6,000 in 2022- 23 to £23,000 in 2023-24. This was due to the appointment of rnarketing consultants to aid in promotion of the Association. With regard to the balance sheet, fixed assets have reduced by £45,225 from £51,353 to £6,128 due to the Thruu ecommerce project write off. Cash balances (including investments) have reduced by £66,129 With other net assets reduced by £40,141 mainly due to creditors increasing by £43,452 compared to 2023. this is a result of timing of expenditure relating to the conference around the year end. Some expenditure relating to the conference and impairrnent of the Thruu ecommerce asset were charged to designated funds in year, totalling £97,777. In order to maintain general funds in accordance with our reserves policy threshold of holding two to three months, worth of operating expenditure (between £140,000 and £215,000), the Board has decided to transfer the remaining designated fund balances into the General Reserve. 28
. Annual Report 2023~24: Treasurer's Report 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: the level of volatility in our incotne the level of dependency on the Conference and Trade Show our need to develop the organisation's financial resilience and rebuildlaugment our activities the need to be better prepared for significant, unexpected events that could have substantial detrimental impacts upon the Association. 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 £140,000 and £215,000 in free reserves. Given that we had commenced the year with £177,000 and we experienced a loss in general funds of £46,575, the trustees made the decision to transfer the remaining funds of £62,223 from the designated funds into the general funds. 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. £10,000 of expenditure relating to the 2024 Conference was charged to this fund leaving a balance of £50,000 (2023: £60,000) which was subsequently transferred into the general fund. iii. Development plans and increasing support for membership In order for the Association to maintain effective services foi 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 Assn¢.iat.inn Development Fund remains the main vehicle through which we set aside funds for future growth and development. £87,777 of expenditure relating to the impairment of the Thruu assets was charged to this fund, leaving a balance of £12,223 (2023". £100,000) which was subsequently transferred into the general fund. 29
Annual Report 2023-24 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 across the UK. 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 airns 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: i.To provide education and training for all its members and the general public on commerce in the cultural and heiitage sector. 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 cornmercial 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 mernbers 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. 30
Annual Report 2023-24 FoiTnal learning and development opportunities include: Masterclasses delivered by expert trainers Peer to peer Study Days covering a wide range of topics Certified courses delivered through the online Academy The annual Conference Other learning and development opportunities include: Networking at events Mentoring prograrnme Resource library including model contractsi podcast, blog and benchmarking Cultural Enterprises Awards. Two bursary places are available for each online event and one for each on site 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. Membership Criteria Membership is subject to the criteria set out in the Charity's Articles of Association. Both Members and Associates are warmly encouraged to attend events and meetings, but voting is constitutionally allowed only to Member organisations through their nominated representatives. Membership is open to any cultural organisation that is established for public benefit and registered as a charityi or otherwise run not for profit. Such organisations include museums, galleries, libraries and archives, historic houses and gardens, zoos and aquariums, religious premises, theaties and arts centres. Associate (non-voting) Membership is open to any UK cultural organisation run for private profit and any cornrnercial companies, firms or individuals that support the Association's work. Non-profit, cultural organisations froTn 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. 31
Annual Report 2023-24 STRUCTURE. GOVERNANCE AND MANAGEMENT Constitution The Charity's constitution consists of a Memorandum and Articles of Association. These were subsequently amended and consolidated into a single set of Articles of Association. Cultural Enterprises (Trading) Lirnited (CET) is a trading subsidiary company of the Ch"arity established by the Trustees in 2013 in order for the Charity to expand its activities and carry them out rnore 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. 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 membershipi 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 ievicwcd annually. 32
Annual Report 2023-24 Setting pay within the Association 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 is not bound to increase salaries annually. There is no bonus scheme or performance related pay mechanisTn. None of the Trustees receive remuneration for their roles as Trustees of the Association. The staff team is salaried and 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 who is a full time employee of the Charity and Managing Director of the trading company. There are six further employees. 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.
Annual Report 2023-24 STATEMENT OF TRUSTEES, RESPONSIBILJ_T_IES The Trustees (who are also directors of the Association for Cultural Enterprises for the purposes of rnrnpany l.aw) are responsible for preparing the Trustees, Report and the financial statements in accordance with applicable law and UK Accounting Standards (United Kingdorn 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. In preparing these financial statements, the Trustees are required to: select suitable accounting policies and apply them consistently. observe the methods and principles in the Charities SORP; make judgements and accounting estimates that are reasonable and prudent; state whether applicable UK Accounting Standards have been followed, subject to any rnaterial 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 chaiitable group will continue in operation. 34
Annual Report 2023-24 The Trustees are responsible for keeping adequate accounting records that ale 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 thern 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 irregularAties. This report has been prepared in accordance with the special provisions for srnall companies under Part 15 of the Companies Act 2006. 14111 li¥ and signed on their behalf by: Approved by the Trustees on... MELANIE LEWIS Chair of Trustees 35
Annual Report 2023-24 REFERENCES AND DMJNJ&T_RLTI_V_E_DEIALL Associatlon for Cultural Enterprises Company registered no. 06480726 Registered charity no. 1122763 Registered Office and Principal Trading Office Unit B7, Durham Dales Centre Stanhope, Bishop Auckland DLI3 2FJ Solicitor and Company Secretary Bates Wells 10 Queen Street Place London EC4R IBE Independent Examiner Allen Sykes 5 Henson Close Bishop Auckland DLI4 6WA Banker Unity Trust Bank Planetary Road Willenhall Wrfi 9DG Finance and Risk Committee Caroline Brown (resigned March 2024) Jo Clarkson Jill Fenwick (resigned September 2023) Gordon Morrison (appointed September 2023) Kingston Myles 36
Annual Report 2023-24 Trustees Caroline Brown (Chair, resigned March 2024) Jo Clarkson (Treasurer, independent) Kari Coghill (resigned March 2024) Gabriela Gandolfini Chris Gilbert Matthew Henderson Melanie Lewis (Chair, oppointedmarch 2024) Zakmensah Anthony Misquitta Kingston Myles Rod Taylor Iain Watson (independent) Laura Wright Staff Management Team Fi Anderson Tom Dykes Desi Evangelides Jill Fenwick Julia Heppell Gordon Morrison Fionnuala O'Donovan Lucy Rees-Harris Derek Smith Jo Whitworth Creative Development Manager Director of Digital Business Development Manager (resigned September 2023) Chief Executive (resigned September 2023) Administrator Chief Executive (appointed September 2023) Head of Events Membership Manager (resigned July 2024) Finance Manager Communications & Media Manager 37
Annual Report 2023-24 INDEPENDENT EXAMINER'S REPORT I report to the trustees on my examination of the financial statements of the Association for Cultural Enterprises ( Ithe charity,) for the year ended 31 March 2024. 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 l 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: 38
Annual Report 2023-24 i.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 cornply 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 piepaied 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 sliould be drawn in this report in order to enable a prope.r understanding of the accounts to be reached. Signed: ff IJ Dated: IJ Mr PW Lamb FCA Independent Examiner Allen Sykes Limited 5 Henson Close Bishop Auckland DLI4 6WA 39
Annual Report 2023-24 CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES Including income and expenditure account for the year ending 31 March 2-0.24 2024 2023 Unrèstrl¢ted funds Total fund Total funds Income: - Mernb•rshlps Grants 81..756. 60,595_ 201,643 201,643 211,643 Educational actlvSties 142.831 142.831 136,074 Tradlng aCtltIeS Investment Incomè 381.154 381,154 262,635 979 979 Total Incomè 808,363 808,363 670,949 Expendlturo on: Tradlng actlvltlès Charltabl• a¢livltl•s 423.850 423,850 304,789 528,296 528.296 473.941 Total expendlture 952,146 952.146 778.730 Taxatlon on tradlng actlvities 569 569 (10.119) Net Income /(expendlture> for lh• yr (144.352) (144.352) (97,662) Reconelliation of funds Total funds brought forward 336,787 336,787 434,449 Total funds earrfed forward 192.435 192.435 336.787 All amounts relate to c.ont.inuing activities of the group. The Statement of Financial Activities includes all gains and losses recognised in the year. The notes on pages 43 to 56 form part of these financial statements. 40
Annual Report 202>24 Annual Report 2023-24 CHARITY AND CONSOLIDATED BALANCE SHEET For the year ending 31 March 2024 Group 2024 Group 2023 Charlty 2024 Charlty 2023 Flxed o8sets TIble assets ITrvA*tmAnlA 6.128 51.353 6.128 3,133 6,128 51,353 6,129 3,134 Curr•nt au•t• D•btor8 92.245 81,791 67.710 74,008 Invo•lm•nts 100,000 100,000 105,573 273,283 Cash at bank and In hand 126.448 292,577 272,738 318.693 374,368 346.746 Llabllltlos Credltor% amounts falllng du? wfthln one year 132.386 88,934 89.401 58,417 Net current assets 186.307 285.434 183,882 288,329 Total not assets 192.435 336.787 190,011 291.463 The lund8 oi the eharlty Unrestrfcted funds 192.435 336.787 190,011 291.463 Total lunds 192.435 336.787 190,011 291,463 Continued
Annual Report 202>24 Tho8e flnanclal 8t4twn¢nts h8V8 bee'n prnpared In occortlance the 8pe¢iel provlslon8 lor 8mall eompanle8 under Part IS ol the Cornp8nlés Act 2006. Th8 Tntstses con8ldw that the Gompany18 efttlded to Exemptlon from th requlremont to h8ve an audft under the provl8lons of sectlon 477 ottha Comp8n1¢8 Act (ryhg Irt) and membeys haw not roqulred the company to obtsln an audft lor the ypai thelr rwonlbllttl88 for comptyln8*Ith the fequlrements oftho Companlw Act 2006 wlth ra8POrt to •ocountln8 record8 and the preparstlon of lln8nolol Ml88 J ciart80n (friJ8to8) ' Companyr 8ter•d np. 06480726 The not on pages 43 to 56 fomi.part o1th990 flnancl8l 8tstem&
Annual Report 2023-24 STATEMENT OF CASH FLOWS For the year ending 31 March 2024 Group Group Charlty 2024 Charity 2024 2023 2023 Cash fiows from operating aetlvltle% Net ¢g¥h used In operatlnsj actlvllles Incom• taxos pald on tradlng aetlvltiès N•t cash (outflow)/lnflow from oporatlng actlvlt1•8 (71.618) 10.119 (92,138) (62.171) (78.490) (10,119) (102,257) <61.499) (62,171) (78.490) Cash Ik•w$ from Investlng actlvltles: Payments to a¢qulr• langlbl• flx•d 05s0ts RKelpts to dSspos• a tonglbl• 11x assèt Interest recelved (5,2S5) 260 (15,399) (5,255) 260 (1.399) 365 Net eash used In Investlng actlvltl (4,630) (15.397) (4,995) (1,397) Net Increase / (decrease) In cash and cash Oquivalants (66,129) (117.654) (67,166) (79.887) Cash and Cash equlvolonts at beglnnlng ol year 292.577 410.231 272,738 352.625 Cash and cash equivalents ot end of year 226.448 292,577 205.572 272,738 The notes on pages 43 to 56 form part of these financial statements. 42
Annual Report 2023-24: Notes to Financial Statements NOTES TO FINANCIAL STATEMENTS For the year ending 31 March 2024 i. Accounting Policies 1.1 Basis of preparation The financial statements have been prepared in accordance Mrith 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 Statement of Financial Position 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 charity is a public benefit entity and private company limited by guarantee, registered in England and Wales and a registered charity in England and Wales. The members of the company are the Trustees named on page 37. 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 2024: £0 (31 March 2023.. £0). 43
Annual Report 2023-24: Notes to Financial Statements 1.4 Income All income is recognised once the company has entitlement to the incorne, it is probable that the income will be received and the arnount 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 correspondlng arnuuiit is Ilieii LeLugillsèd iii expeiiditULe in the period of receipt. The charity uses 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 actlvlty. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each actlvlty. 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. 44
Annual Report 2023-24: Notes to Financial Statements 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 charitywill 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 and 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 Tlie fiiiancial 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 Charitywas £101,452 (2023: £65,627 deficit). 1.8 Interest receivable Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the cornpanyi 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: Computer equiprnent - straight line over three years. i.io 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. 45
Annual Report 2023-24: 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 estirnated reliably. Liabilities are recognised at the arnount 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 frorn such estirnates. Management does not consider there to be any material accounting estimates or judgements that need disclosure in these financial statements. 1.15 Retirement benefits Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due. 46
Annual Report 2023-24: Notes to Financial Statements 2. Memberships and Grants 2024 2023 Full memberships 81,756 60,595 .Grants (Arts Council England) 201.643 201,643 Conference bursary support 10,000 201,643 211,643 Total donationsand grants 283.399 272,238 Associate memberships are paid via the trading company. 3. Educational Activities 2024 2023 Learning ond development 46.607 35.965 Donated gifts and services 11,000 16,000 Cultural Enterprlses Academy income 676 1.754 Conlerence delegate income 84.548 82,355 142.831 136,074 The charity is grateful to the various organisations who donate their services and facilities either for free or foi a reduced charge. An equivalent charge is included within charitable activities. 47
Annual Report 2023-24: Notes to Financial Statements 4. Trading Activities 2024 2023 Trading income Subsidiory company income 381.154 262.635 381.154 262.635 Trading expenses Subsidlory ¢ompony expenditura 424.054 294,670 Net In¢ome from trading activities (42,900) (32,035) 5. Investments 2024 2023 Bonk Interest 979 6. Charitable Activities 2024 Govemanee Admlnstralion and Ofganlsatlon Cultural Ent•rprlses Academy Total Direct costs 172,157 172,157 Support costs 16,575 337,617 1.947 356.139 Total 16,575 509,774 1,947 528.296 2023 Govomanc• Adminstration and Organtsatlon Cultural Entèrprises Academy Total Direct costs 163,264 163,264 Support costs 18.793 287,552 4.332 310.677 Total 18.793 450.816 4,332 473,941 48
Annual Report 2023-24: Notes to Financial Statements 7. Direct Costs 2024 Adminislrqtion and Organisation Cultural Enterprlses Academy Total Leuiilil)g and development Membership Coordinator 3,335 3.335 12.116 12,116 Conferences and exhibitions 139,914 139.914 Course costs 3.191 3,191 Podcasts and digital costs 10,601 10.601 Donated gifts ond services Total 3,000 3,000 17d.1S'2 17? 157 2023 Admlnlstratlon and Organ15atlon Cultural Enterprises Academy Total Learning and dèvelopment Membership Coordlnator Conferences and exhlbitions 14,225 14,225 15,831 15.831 88,943 88.943 Legal and professional fees Course costs 18.141 18,141 18,124 18.124 Donat8d gifts and services Total 8,000 8.000 163.264 163,264 49
Annual Report 2023-24: Notes to Financial Statements 8. Support Costs 2024 Govornaneè Admlnlslratlon and Organisation Cultural Enterprises Academy Total Legal and professionol fees Premisès costs 6,245 1,924 8.169 624 624 Insurance 5.184 5,184 Adminstrative costs 38.718 23 38,741 Advertising and marketing Accountoncy fees Indepèndènt examination fees Travcl and Gubsist•nce 22,739 22.739 1,919 1.919 2.330 2.330 36.068 36,068 Wages and salaries Social Security costs Pension costs 200,962 200,962 20,165 20.165 8,639 8,639 Entertaining Donated gifts and services Depreciation Total 600 600 8,000 8,000 1,999 1,999 16,575 337,617 1,947 356.139 2023 Governan¢• Admlnlstrotlon and Organisatlon Cultural Enterpr1$ Academy Total Legal ond professlonal fees Premises costs 8,583 3,002 11.585 768 768 Insurance 4,958 4,958 Adminstrative costs 41.330 1.083 42,413 Advertising and marketing Accountancy fees Independent examination fees Travel and subsistence 5.857 5,857 5.723 5,723 2,210 2,210 17,580 247 17.827 Wages ond salaries Social Security costs Pension costs 181.199 181.199 16.767 16,767 8,013 8.013 Entertoining Donoted gifts and sèrvices Depreclation Total 2.812 2.812 8.000 8,000 2,545 2,545 50 18.793 287,552 4.332 310,677
Annual Report 2023-24: Notes to Financial Statements 9. Staff Costs 2024 2023 Wages and salaries 200.962 181,199 Social Security costs 20,165 10,767 Pènsion costs 8,639 8.013 Other employee benefits Total 229,766 205.979 The average number of persons employed by the company during the year was as follows: 2024 2023 Administration and organisation The number of employees whose remuneration for the year fell within the following bands were: 2024 2023 £60,000 to £69,999 All members of staff are considered key management personnel. The total compensation paid to key management personnel is therefore the total staff costs of £229,136. No remuneration, directly or indirectly, was paid or deemed payable for either period to any Trustee or persons known to be connected with them. 10. Net Income 2024 2023 Not Income aftèr stated charglng: Depreciotion 2,148 2,545 Indepenclent examinatlon fees Profit and loss on sale of ossets 149 51
Annual Report 2023-24: Notes to Financial Statements 11. Taxation The company is considered to pass the tests set out in Sch. 6, Para. i of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordinglyi the company is potentially exempt from taxation of income or capital gains received within categories covered by Pt. ii, Ch 3 of the Corporation Tax Act 2010 or s.256 of the Taxation of c.hargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes. Group Gr¢wp CharSty Charlty Current tax 2024 2023 2024 2023 UK Corporation Tox on proflts for the current perlod 569 (10,119) The actual charge arises on the subsidiary's trading profit: 2024 2023 Loss before taxotion (42.331) (42,154) Expectèd tox charge ot 19% (8,043) (8,009) Effect of capital allowances and impairments 9,162 (2,110) Effect of losses from eurlièr years (550) 569 (10,119) 52
Annual Report 2023-24: Notes to Financial Statements 12. Tangible Fixed Assets - Group and Charity Group Computor Equlprnent Group Total Charfty Comput•r Equlpment Charity Total C¢)st At l April 2023 64,281 64,281 16,061 16,061 Additions 5.255 5,255 5,255 5,255 Disp05015 At 31 March 2024 (48,719) (48,719) 20,817 (499) (499) 20,817 20,817 20,817 D•pr•clalk•n At l April 2023 Chargè for the yèor Disposals 12.928 12.928 12,929 12,929 2,148 2.148 2.148 2,148 (388) 14,689 (388) (388) 14,689 (388) At 31 Morch 2024 14,688 14,689 Net book value At 31 Morch 2024 6,128 6,128 6.128 6,128 At 31 March 2023 51,353 51,353 3,132 3.132 Group Group Charlty Charlty 2024 2023 2024 2023 Current Asset Investments Short term deposits 100.000 loo.000 Investments in short tenn deposits have an original tnaturity date of 12 months. The average interest rate is 4.85 % . 53
Annual Report 2023-24: Notes to Financial Statements 13. Debtors Group Group Charity Charlty 2024 2023 2024 2023 Trade debtors 29.527 43.601 5,859 26.273 Amounts owed by group undertakings 36,442 24,664 Corporation tox recoverable 10,119 Other toxes recoverable 12710 Other debtors 200 273 200 273 Prèpayments and accrued incomè 49,808 27.798 25,209 22,798 92,245 81,791 67,710 74.008 14. Creditors: Amounts Falling Due Within One Year Group Group Charlty Charlty 2024 2023 2024 2023 Tradècreditors 46.177 13,662 19,419 11,992 Other loxation and Social Security Other creditors 8,436 8,282 7,867 7,808 1,612 1,553 1.612 1,553 Income in advance 49.400 42,670 35,142 35,314 Accruols ond delerred income 26.761 22,767 25.361 1.750 132.386 88.934 89,401 58.417 54
'• Annual Report 2023-24: Notes to Financial Statements 15. Summary of Funds Brought Forward Incom• Expenditure Translers Carried Forward Gen&ral funds 176,787 797,363 843,938 62.223 192,435 Designated funds ACE development fund loo,000 87.777 (12.223) Conference expenses fund 60,000 10,000 (50.000) Total 336,787 797..363 941,715 192,435 16. Analysis of Net Assets Between Funds Group Unr06trlct•d fundi Total funds Total funds 2024 2023 Tanglble flxed assets Current assets 6.128 6,128 51,353 318,693 318.693 374.368 Creditors less Ihan one year Total (132,386) 192.435 (132,386) (88,934) 336.787 192,435 Charlty Unrestrlet6d lunds Total lunds Total funds 2024 2023 Tangible fixed assèts Current assets 6,128 6,128 3,134 273,283 273.283 346,746 Creditors less thon one year Total (89,401) (89.401) 190,010 (58.417) 291.463 190,010 17. Related Party Transactions There are no related party transactions to disclose (2023: nil). 55
Annual Report 2023-24: Notes to Financial Statements 18. Reconciliation of Net Income / (Expenditure) to Net Cashflow from Operating Activities Group 2024 Group Charlty Chority 2023 2023 2024 Nèl income /(expenditurè) lor the ygor Interest receivable (144,352) (979) (97,662) (101,452) (65.627) (2) (2) (614) (149) 23,611 Gainllosson disposol of flxed assets Accruèd expenses Depreciation of tangible fixed assets (Increose) / dècrease In debtors 48.071 2,148 2.545 2.148 2,545 (19,959) 22.262 6,912 (19,084) Increase / (decrease) in creditors Toxation charged 42,884 (9,162) (10,119) 7.373 3,678 569 (71,618) (92,138) (62,171) (78,490) 19. Analysis of Cash and Cash Equivalents Group Group Charlty Charlty 2024 2023 2024 2023 Cash in hand 126.448 292.577 105.573 272.738 Notice deposits loo,000 100.000 226,448 292,577 205.573 272,738 56