## **TURNER CONTEMPORARY** 

**CONSOLIDATED FINANCIAL STATEMENTS AND ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2023** 

**Registered Charity No: 1129974** 



## **TURNER CONTEMPORARY** 

## **CONTENTS** 

||**Page No**|
|---|---|
|Legal and Administrative Details|1|
|Chairman's Foreword|2|
|Report of the Trustees|3 - 13|
|Independent Auditors' Report|14 - 17|
|Statements of Financial Activities|18 - 19|
|Summary Income and Expenditure account|20|
|Consolidated Balance Sheet|21|
|Charity Balance Sheet|22|
|Consolidated Cashflow Statement|23|
|Notes to the Financial Statements|24 - 34|





## **TURNER CONTEMPORARY** 

## **CHARITY REFERENCE AND ADMINISTRATIVE DETAILS** 


**----- Start of picture text -----**<br>
Charity registration number 1129974<br>Company registration number 06772337<br>Trustees Matthew Slotover (Chair)<br>Vivienne Bennett<br>Jill Constantine<br>Sarah Dargan<br>Sir Stephen Deuchar<br>Virginie Dhouibi<br>Michel Driessen<br>Lucy Edematie<br>Peter Hawkes<br>Kemet Hawthorne Pink<br>Sarah Hohler<br>Yasmin Khan<br>Nicholas Maynard<br>Keith Valentine<br>Key Management Personnel Clarrie Wallis Secretary and Gallery Director<br>Theodora Ogwezi Head of Finance (until 31 March 2023)<br>Conor Marren Interim Director of Finance (part-time) (from 28 July 2022)<br>Sarah Martin Head of Exhibitions<br>Toby Parkin Head of Learning and Audience Engagement<br>Sanjivan Kohli Head of Development<br>Principal Address Rendezvous<br>Margate<br>Kent CT9 2HG<br>Independent Auditor Azets Audit Services<br>5th Floor<br>Ashford Commercial Quarter<br>1 Dover Place<br>Ashford<br>Kent TN23 1FB<br>Bankers Barclays Bank PLC<br>9 St George's Street<br>Canterbury<br>Kent CT1 2JX<br>Investment advisors Charles Stanley & Co Limited<br>55 Bishopsgate<br>London<br>EC2N 3AS<br>**----- End of picture text -----**<br>


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## **TURNER CONTEMPORARY** 

## **CHAIR'S FOREWORD** _**FOR THE YEAR ENDED 31 MARCH 2023**_ 

Turner Contemporary is one of the UK’s leading art galleries and has catalysed the renewal and regeneration in Margate and across Thanet. The gallery plays a vital role in placemaking, driving revenue and encouraging new businesses to reside in this transformed town. Ranking now as a top Kent destination, Margate has grasped the opportunities delivered by the gallery’s presence and its year-round free exhibitions and learning programme. 

In addition to showcasing world-class art, the gallery is committed to its civic responsibilities - ensuring that our work is relevant and representative of diverse audiences, particularly those in the immediate vicinity. Under the new Directorship of Clarrie Wallis, the gallery focuses on targeting crucial resources for young people and underserved and underrepresented communities and raising awareness of pressing ecological questions. We collaborate with many partners who significantly contribute to our sense of community and belonging – connecting people and place through art. 

I am continually impressed by the accomplishments of our staff, who consistently deliver inspiring cultural and learning programmes both within the gallery and in public spaces. I would like to express my deep appreciation to the Board of Trustees for their steadfast commitment to the gallery's mission, with special recognition to Clive Stevens. Clive has been integral to Turner Contemporary for thirteen years, serving as Chair for the past six. As the new Chair, I want to acknowledge his contribution and extend my thanks for his service to Turner Contemporary. 

I also want to thank all our funders and donors who provide invaluable support. It is only with their ongoing commitment, that we can achieve what we do. I am grateful to Arts Council England, Kent County Council, Trusts, and Foundations, as well as our patrons and individual supporters. Your support greatly enriches the cultural life of Margate and its surrounding area. 

……………………………………… Matthew Slotover Chair 

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## **TURNER CONTEMPORARY** 

## **REPORT OF TRUSTEES** _**FOR THE YEAR ENDED 31 MARCH 2023**_ 

The Trustees present their report and the audited financial statements of the charity for the year ended 31 March 2023. The Trustees have adopted the provisions of the Statement of Recommended Practice (SORP) “Accounting and Reporting by Charities” (FRS 102) in preparing the annual report and financial statements of the charity. 

The financial statements have been prepared in accordance with the accounting policies set out in notes to the accounts and comply with the charity’s governing document, the Charities Act 2011 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 published in October 2019. 

## **Objectives and activities** 

The principal objective of the charitable company is the provision of a permanent Gallery in Margate which celebrates JMW Turner's association with the town and, through a varied programme of exhibitions, events and learning activities, promotes an understanding and enjoyment of historical and contemporary art. 

The charitable objectives as set out in the governing document are: 

- To promote art for the benefit of the public through activities including but not limited to exhibitions, displays, events and commissions including, but not limited to, those held at Turner Contemporary; 

- To advance the education of the public, in particular but without limitation in the visual arts; 

- To promote the efficiency and effectiveness of registered charities and charitable organisations, including community groups, through the provision of premises or other spaces including, but not limited to, the Turner Contemporary building. 

## **Public benefit statement** 

In planning future activity and in reviewing the charity's aims and objectives, the Charity Commission’s general guidance on public benefit is considered. The charity's activities clearly relate to its legal objectives of promoting art for the benefit of the public and in advancing the education of the public. 

The activities undertaken and achievements outlined allow an assessment of the contribution made by these activities towards furthering the charity's objectives. Turner Contemporary stresses the importance of ensuring the accessibility of its exhibitions and activities and all exhibitions held in 2022-23 were free to enter. 

## **Activities for achieving objectives** 

Turner Contemporary is one of the UK’s leading art galleries and has been the catalyst for the renewal and regeneration in Margate and across Thanet. The gallery plays a vital role in placemaking, driving revenue and encouraging new businesses to take up residence in this transformed town. Designed by the renowned David Chipperfield Architects, the gallery's year-round exhibition programme is a testament to its commitment to showcasing the complexity and richness of art. 

Turner Contemporary is located on the very site where the artist JMW Turner regularly stayed. The gallery shares his vision, believing that art has the power to bring about transformative change. Serving as a beacon of artistic exploration, Turner Contemporary preserves Turner's legacy while charting a path towards a more inclusive, enlightened, and sustainable future. Turner Contemporary actively supports artists who have historically been underrepresented or marginalised, ensuring their voices are heard and their art appreciated. Through its Exhibitions and Learning programme, the gallery aims to inspire, educate, and captivate, solidifying its position as a vital cultural institution at the heart of Margate and beyond. 

A bold and ambitious artistic programme is at the heart of Turner Contemporary and ensures that we achieve our organisational aims, objectives, and strategy; the programme is the driver in determining the long-term success and viability of the organisation. The programme showcases a varied and exciting range of exhibitions, commissions, events, and activities for local, regional, national and international audiences. There is often a JMW Turner presence in the building as well as work by artists living and working today. Turner (1775-1851) was a regular visitor to Margate and made some of his best-known works on the north Kent coast. Our innovative and ambitious programmes have helped position Turner Contemporary as one of the foremost galleries in the UK. 

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## **TURNER CONTEMPORARY** 

## **REPORT OF TRUSTEES** _**FOR THE YEAR ENDED 31 MARCH 2023**_ 

## **Activities for achieving objectives (continued)** 

Turner Contemporary offers an important story of public sector investment in a dynamic gallery that effectively utilises culture to drive economic regeneration. The gallery seamlessly combines artistic excellence and academic rigour with public space, social care, wellbeing and programmes for civic engagement and pride. 

Since opening in 2011, Turner Contemporary has presented over 100 exhibitions, providing a platform for the work of more than 2,000 artists and attracting nearly 4 million visitors. Beyond exhibitions, Turner Contemporary boasts a pioneering Learning programme, engaging thousands of school children, families, and adults each year. By deepening their engagement with art, the gallery seeks to establish Margate as a centre of excellence for creative learning. The programme's primary focus lies in widening access to the arts for local, often disadvantaged, children and young people - nurturing their creative skills, cultivating curiosity, fostering critical thinking, building confidence, and supporting their mental health and well-being. 

The organisation is a registered charity and receives public funding from Arts Council England and Kent County Council. To bring its ambitious programme of exhibitions and events to life, Turner Contemporary seeks to secure a significant proportion of its annual income from a wide range of other commercial and private philanthropic sources. These include grants from trusts and foundations, commercial revenue generated through private rentals, the shop, and the café. Additionally, the unwavering support of individuals plays a vital role in sustaining the gallery's operations. These individuals encompass exhibition donors and sponsors, benefactors, and patrons who generously contribute to Turner Contemporary's mission. Furthermore, artists themselves actively participate in fundraising efforts by creating limited editions of their works for sale in the gallery shop, emphasising their crucial role in supporting the gallery's endeavours. 

## **Strategic Report** 

## **Achievements and performance in 2022-23** 

At Turner Contemporary, the gallery looks to collaborate with artists and engage audiences while championing the energy and ideas of the broader artistic community in Thanet. We recognise the importance of creative learning and are dedicated to increasing the representation of underrepresented groups such as women artists, LGBTQIA+ artists, artists of colour, and artists with disabilities. Moreover, we are determined to work with individuals who share our values and ensure fair compensation for their contributions. These core principles were the foundation of our application to the Arts Council to maintain our status as a National Portfolio Organisation (NPO). In October 2022, we were grateful to receive the news that our application to ACE “Let’s Create” was successful. 

In 2022 - 2023 Turner Contemporary profiled the work of 53 artists through exhibitions at the gallery with associated programmes, in-person talks, film screenings, artist-led activities as part of the our education and outreach programme and collaborations with artists to create editions to raise funds. During the year, our exhibitions and projects featured in a range of publications with significant coverage included in The Guardian, The Observer, The Financial Times amongst others. 

Over the last year, our team has developed a new encompassing coastal environmental strategy centred around four key areas. Firstly, we aim to minimise our negative impact on the environment. Additionally, we are dedicated to effectively producing and safeguarding cultural and natural heritage. We emphasise education and awareness regarding sustainability and actively promote sustainable tourism. Furthermore, we are committed to directing our everyday decisions, including budgeting, operations, procurement, and management, towards creating a sustainable future. We carefully consider the infrastructure and management of the gallery building, and we are constantly reviewing ways to be more energy efficient and future-proofing the impact of seaside dwellings. 

As part of our efforts, we are piloting an environmental programme for artists engaged with urgent ecological issues. One artist collaborating with us is Anya Gallaccio, who is actively involved in devising an extensive children’s education programme that pays homage to Kent’s rich history and heritage and acknowledges the county as the ‘Garden of England’ and embraces our rural community values. This collaborative endeavour will culminate in an exhibition at Turner in 2024. Encouraging sustainable travel, our Creative Isle Community Rail Partnership offers a voice for the community through art and creativity, enabling local groups to animate local railway stations and trains, and working with artists to create a community garden on disused land next to Margate station. 

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## **TURNER CONTEMPORARY** 

## **REPORT OF TRUSTEES** 

## _**FOR THE YEAR ENDED 31 MARCH 2023**_ 

## **Achievements and performance in 2022-23** 

Our objectives over the next three years are to increase the gallery’s local, national, and international impact and rebuild audience levels to reach pre-covid levels, through our artistic and education programmes. 

In the year ending 31 March 2023, the gallery received a total of 255,118 (2021-22: 147,533) visits from the public. This represents a 72.9% increase on the previous year. Impressively, an estimated 17% of these visitors were new to Turner Contemporary, with 6% being first-time art gallery visitors. Additionally, 41% of visitors were "regulars," having visited within the last 12 months. Geographically, 19% of visitors were from Margate, 4% from the rest of Thanet, and 25% from other parts of Kent (excluding Margate and Thanet). Furthermore, 22% of visitors hailed from London, while 27% came from the rest of the UK. Approximately 3% of visitors were estimated to be international. 

In Spring 2022 the gallery was delighted to be offered generous support by Bloomberg Philanthropies to join its Digital Accelerator programme to implement and embed new CRM and ticketing systems. We are focused on reengineering our operating model, in response to the rapidly changing funding and economic landscape. The gallery is working towards a new audience development strategy which will be crucial to increasing engagement as well as seeing this as an integral part of the case for further investment. 

The gallery’s work continues to have a transformative impact on the lives of individuals. Our Learning programme engaged nearly 8,000 people through in-person sessions and workshops, while an additional 40,000 were reached through digital resources. 

New initiatives include extending the gallery’s reach with a particular focus on raising aspirations for children and young people, health, and wellbeing. We are developing Margate as a centre of excellence for creative learning with a range of local educational and cultural partners, including Arts Education Exchange, People Dem Collective, Pride, and Open School East, which link public programme to building a sense of community and belonging and increasing audience participation and appreciation. 

Working with Save the Children, Turner Contemporary’s pilot Children’s Art Library is the first project of this kind in Thanet. Focusing on creativity as a key life skill, it is designed to support early development measures (tracking speech and language, social and emotional development) which are well below the national average in Thanet. The gallery has created an ambitious new long-term programme for Looked After Children, working in partnership with Arts Education Exchange, Virtual Schools Kent, and The Mildred Fund. The project responds to the needs and interests of some of the most vulnerable young people in Thanet. 

As of September 2022, 5.7% of Thanet’s population and 8.4% of young people (aged 18-24) were unemployed, the highest rates in the Southeast region and among the highest in the UK. We continue to work with Social Enterprises Kent, the government scheme Kickstart and The Prince’s Trust, offering employability skills training to young people, particularly those not currently in employment, education, or training. Our Emerging Producers programme, funded by the Freelands Foundation and Creative Estuary, currently offers eight work placements to provide young people with career development opportunities. 

The gallery continues to work with the local community to play our part in mitigating the impact of the cost-of-living crisis to support wider wellbeing and help level-up our young people with a safe warm space to work. Between October 2022 and January 2023 the gallery became a Warm Bank as part of a national programme and database for spaces for the public to access during gallery hours. This was supported by the Clore Duffield Foundation. 

Turner Contemporary’s strong sense of place in Margate and its collaborations with local partners have contributed to the social and economic regeneration of the area. Since its establishment in 2011, the gallery has received more than 4,100,000 visitors, making an estimated contribution of nearly £80 million to the local economy. This has led to the creation of both direct and indirect employment opportunities. Calculations show that for every £1 invested by KCC, a net social value of £2.88 is generated annually. In the financial year 2021-2022, the net social value resulting from KCC's investment amounted to £2,318,400. 

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## **TURNER CONTEMPORARY** 

## **REPORT OF TRUSTEES** _**FOR THE YEAR ENDED 31 MARCH 2023**_ 

## **Achievements and performance (continued)** 

Turner Contemporary continues to be a major employer in Margate with 60 Staff which equates to 40.5 FTE. We lead by example to local businesses and start-ups, and since April 2022 we have committed to the Living Wage, offering flexible working patterns and training opportunities for staff to develop their skills beyond their immediate roles. 

## **Arts Ecology** 

In the face of a rising cost of living crisis and escalating energy bills, this year has presented its fair share of challenges as we continue to emerge from the pandemic. Despite these difficulties, we've remained steadfast in our commitment to support artists at various stages of their careers, to pay them fairly and to nurture the creative communities in Thanet and wider Kent.  We have also established new partnerships with Open School East and Arts Education Exchange. 

Our regular "First Fridays" have continued. These free events showcase Margate's vibrant creative community and are developed in cooperation with local artists and community groups, including the People Dem Collective, and Power of Women (POW) Festival. Additionally, our retail strategy has remained rooted in supporting and championing local artists and makers, with a preference for commissioning and sourcing products locally. We have also maintained our active participation in regional and national networks including CVAN Southeast and Plus Tate. 

## **Self-generated income** 

Turner Contemporary is committed to enhancing its financial sustainability by reducing dependence on public sector investment and increasing self-generated income. To achieve this, we focus on various commercial and fundraising activities. Our development team is responsible for securing significant revenue through fundraising efforts. We have successfully established schemes for both individual patrons and corporate patrons, which currently have active members and have recently constituted a Development Council. Additionally, we actively seek funding from trusts and foundations, specifically targeting funds for exhibitions and learning projects. 

Creating a culture of philanthropy and entrepreneurship within our organisation is a top priority. We actively encourage all staff members and Trustees to participate in fundraising and philanthropic initiatives. This approach helps to ensure that our team is aligned, engaged and committed to our goals of financial sustainability and artistic excellence. We were delighted to receive support from the Paul Mellon Foundation, the Dana & Albert Broccoli Foundation towards the development of a major exhibition in 2025. We were also delighted to receive support from the Foyle Foundation and from the Mildred Fund. 

Turner Contemporary Enterprises, our trading arm, encompasses catering, retail, and venue hire services. The profits generated from these activities are reinvested into the charity, further supporting our mission and programmes. During the year we worked with Michael Armitage to produce a limited-edition print for sale, the proceeds of which directly supported the gallery’s charitable activities. 

## **Artistic programme** 

Spring 2022 saw the presentation of the first major solo exhibition by British-Ghanaian artist Larry Achiampong, which toured to MK Gallery, Milton Keynes and BALTIC Centre for Contemporary Art, Newcastle. The show included the newly commissioned feature-length film “Wayfinder”, which follows a young girl’s journey across England. Alongside his exhibition, Achiampong curated a display of paintings by JMW Turner. He selected a group of oil paintings, watercolours, engravings, and sketchbooks, predominantly from Turner’s British tours. The Clore Learning Studio was transformed into a Gaming Room, where many of the video games that have influenced Achiampong’s work were showcased. Working with BAFTA Young Game Designers, The Prince’s Trust and Into Games offered game design workshops and talks for families and schools, to inspire people from every background to discover careers in the games industry. 

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## **TURNER CONTEMPORARY** 

## **REPORT OF TRUSTEES** _**FOR THE YEAR ENDED 31 MARCH 2023**_ 

## **Achievements and performance (continued)** 

In the summer Turner Prize nominee, Ingrid Pollard, presented “Carbon Slowly Turning”. Curated by Gilane Tawadros, the exhibition was accompanied by a significant publication with contributions from Paul Gilroy, Mason Leaver-Yap and Anna Arabindan-Kesson. In the autumn “Cold Light”, a new multi-media commission by Lindsay Seers and Keith Sargent was presented alongside an archive exhibition curated by Ingrid Swenson of the work of the sculptor and performance artist Stephen Cripps. The Cripps exhibition was accompanied by a day of discussion, film and live performance inspired by his work which was supported by Acme and the Elephant Trust. Artists, curators, and filmmaker explored themes related to Cripps’ art and legacy. In February 2023 the gallery presented “Sonia Boyce: Feeling Her Way”, a collaboration with the British Council, with additional support from the Art Fund, which saw Boyce’s exhibition for the British Pavilion at the Venice Biennale reimagined for Margate. This major collaborative work immersed visitors into the sound of acapella singing by five pioneering black female singers. 

Sophie von Hellermann and Anne Ryan refreshed the content of “Sirens”, their eighteen-month installation in the Sunley Galleries and work continues to realise Yinka Illori’s permanent commission for Kings Hill. Mark Leckey was confirmed as the artist involved in the Dreamland project, supported by a generous grant from the Freelands Foundation, as well as funds from Creative Estuary. In December 2022 Leckey realised “Salamagundy ’22” in Dreamland’s Roller Rink. For this one night only variety show, Leckey selected an exciting and eclectic line-up of musician, performers and visual artists: The event’s title, “Salamagundy”, came from the culinary term for a dish made of different ingredients – much like a mix tape – a concept that is reflected in the diverse selection of artists and acts that performed: Visual poet Richie Culver, multi-genrre musician Alpha Maid, performance artist Rowland Hill, artist Ebun Sodipo, interdisciplinary cabaret performer NiCKY, multi-instrumentalist Island Girl, singers Katie McGarry and Tom Giles, DJ Twilight Sparkle with crab walking from Polly Coombes. The Master of Ceremonies was legendary drag artist David Hoyles, better known as the Divine David. 

Over the year, the Learning team has developed a new strategy that responds to local needs. Our primary objective is to adopt an intersectional approach, incorporating climate, ecological, social, economic, and racial justice. Ambitions include increasing lifelong learning and creativity engagement, particularly among disadvantaged children and young people. We strive to improve creative skills, curiosity, and critical thinking for all audiences and establish Margate as an innovative learning hub. Moreover, we aim to enhance young people's life chances and employment prospects, improve local mental health and well-being, and engage diverse audiences. Ultimately, we aim to develop knowledge, attitudes, and skills contributing to a sustainable future. 

The Learning team has developed new partnerships and engaged with various organisations. We have partnered with Open School East on an Associate-led Public programme hosted at the gallery that responds to themes of social and ecological hybridity. We have also partnered with Arts Education Exchange to offer a bespoke programme for young people vulnerable to school and social exclusion. Throughout the two-year programme, young people will access a range of exciting opportunities to discover and expand their interests and aspirations with an experienced team of educators, artists, and an art therapist, who will support the development of personalised curricula. The Mildred Fund supports this project. As part of Kent County Council’s Playground Programme, and generously supported by the Margate Early Learning Community and Save the Children, the gallery has also been running free non-verbal and sensory creative play sessions for children aged 0-18 months and their parents or carers led by a team of artists and musicians. 

We have also established two local teacher networks. One network, the Creative Development Network Programme, funded by Artswork, focuses on environmental sustainability, and involves three partner organisations and five local schools. The goal is to develop a methodology that empowers students to lead ecological projects and raise climate and environmental issues in their community. The second network, Lacuna, led by three Margate-based arts and education organisations (Turner Contemporary, Open School East and Arts Education Exchange), aims to share, and develop knowledge and approaches to creative learning among teachers and educators in the region. Both networks commenced in the autumn. 

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## **TURNER CONTEMPORARY** 

## **REPORT OF TRUSTEES** _**FOR THE YEAR ENDED 31 MARCH 2023**_ 

## **Achievements and performance (continued)** 

## **Diversity and Inclusion** 

At Turner Contemporary, our commitment to embedding Equality, Diversity, and Inclusion (EDI) principles throughout our work is paramount. We strongly believe in fostering diversity in every aspect of our organisation, including our programmes, audiences, staff, and board. Recognising the need for constant improvement, we are committed to reevaluating our strategies and have been working collaboratively to develop a new comprehensive EDI Road Map. Our primary goal is to establish Turner Contemporary as an organisation that takes pride in its diversity. To achieve this, we actively promote diversity in our governance, staff, audiences, programs, and community engagements. This is being achieved through a series of initiatives: we are strengthening our governance by actively seeking out diverse voices and perspectives, ensuring that our decision-making processes reflect the richness of our society. In terms of staffing, we are striving to recruit and retain a diverse team that embodies the values we champion, fostering an inclusive and equitable workplace. To engage inclusive audiences, we are proactively reach out to communities that have historically been underrepresented in cultural institutions and our Access Group has been enhancing Turner Contemporary's wayfinding and communication. They have updated the Accessibility page on the website, proposed new signage for orientation and sensory needs, and provided support to the exhibitions team. 

In our programmes, we will continue to showcase a wide range of artists, amplifying the work of marginalised voices and emerging talents. This commitment will provide a platform for diverse artistic expressions and contribute to a more inclusive art scene. Lastly, we will actively engage with our local community, listening to their needs and co-creating programs and initiatives that address their specific interests. By collaborating with the community, we will ensure that Turner Contemporary remains a place that reflects and serves its diverse audience. Through these concerted efforts, we aim to create an environment where diversity flourishes and is celebrated. 

## **Exhibitions in 2022-23** 

“Larry Achiampong: Wayfinder / JMW Turner Selected by Larry Achiampong”, 12 March -19 June 2022 

- “Sophie von Hellermann and Anne Ryan: Sirens”, Sunley Gallery, November 2021 - March 2023 

“Ingrid Pollard: Carbon Slowly Turning”, 9 July – 25 September 2022 

“Lindsey Sear and Keith Sargent: Cold Light and Stephen Cripps: In Real Life”, 22 October 2022 – 8 January 2023 

- “Sonia Boyce: Feeling Her Way”, 4 February – 8 May 2023 

## **Offsite** 

“Mark Leckey: Salagamundy ‘22”, Dreamland, 14 December 2022 

“Pioneering Places: Conrad Shawcross”, Ramsgate seafront, September 2021 - September 2023 

“Antony Gormley: Another Time for Margate”, until 2030 

## **Highlights from the Learning programme in 2022-23** 

Event: Careers Day 

Talk: Ingrid Pollard in conversation with Sarah Martin, 9th July 2022. 

Event: First session of Beach Club for families during holidays, August 2022 

Performance: Denai Moore, 22 September 2022 

Event: First session of Playground, October 2022 

Event: First session of Lacuna: What’s the problem with creativity? 19 October 2022. 

Event: First session of Look Club for over 50s, January 2023 

Event: First session of Turnips our Early Years programme, February 2023 

Talk: Sonia Boyce in conversation with composer Errollyn Wallen, 4 February 2023 

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## **TURNER CONTEMPORARY** 

## **REPORT OF TRUSTEES** 

## _**FOR THE YEAR ENDED 31 MARCH 2023**_ 

## **Financial review** 

Total income for the year amounted to £3,480,250 (2022: £2,579,203). Expenditure amounted to £3,300,750 (2022: £3,098,366). The above movements amounted to net surplus for the year of £179,500 (2022: deficit £519,163). 

The surplus for the financial year is mainly due to the receipt in 2022 of restricted funds to be used for activities beyond March 2023. Due to the accounting requirements of the Statement of Recommended Practice (see note 1.1 for further detail), the grant income is required to be accounted for in the year in which it is receivable. Therefore, while the income is accounted for in 2022, expenditure in relation to some of the activities is accounted for in future accounting periods. Over the course of the year, restricted funds have grown by £283,898 from £218,239 at the end of March 2022 to £512,137 at the end of March 2023. Further details are provided in note 17. 

Turner Contemporary ended the financial year with consolidated unrestricted funds of £678,659 (2022: £837,463) a reduction of £158,803 from the prior year. 

The Trustees reported a net reduction in endowment funds of £229,633 (2022: increase £88,094), and a net surplus in restricted, unrestricted and non-charitable funds of £158,094 (deficit in 2022: £330,447). The balance sheet at 31 March 2023 shows a total funds position of £3,907,929 (2022: £4,002,468). 

## _Endowment_ 

The Catalyst Endowment has been established to provide an investment return to support commissions in the public realm, events outside the gallery and residency programmes. The endowment has a value as at 31 March 2023 of £2,717,133 (2022: £2,946,766). 

The Endowment is managed by Charles Stanley and is overseen by the Board. The Trustees' policy is to balance income and capital returns and will be managed to maintain at least the real capital value of the Endowment whilst generating an investment income to support the charitable objectives. A total return approach is used, providing for inflation and using the residual as income for activities. 

The Trustees regularly review the level of risk given the prevailing state of the economic and political climate, which informs the investment allocation. In line with the total return approach applied to the investment of the Endowment, and the policy of a general target of 2.5% to be available to spend on suitable projects, the Trustees will periodically decide on the portion of the funds' returns to draw for revenue expenditure by the gallery. 

## _Endowment policy_ 

- The endowment is invested to produce the best financial return within an acceptable level of risk; 

- The investment objective is to balance income and capital returns; 

- The assets should be managed to at least maintain the real capital value of the endowment over the medium-term, whilst generating adequate investment income to support the charitable activities of the gallery; 

- The Board of Trustees will seek to achieve this objective in a total return setting, providing first for inflation proofing of capital, aiming to use the residual as income for its activities, with the policy of a general target of 2.5% of funds to be available for suitable projects; 

- The endowment should assume that it is unlikely to generate returns higher than inflation plus 3% (nominal return of 3- 6%) and plan its activities accordingly; 

- A set current income target does not seem appropriate in today’s environment but this may change if markets return to a more stable position. 

## _Reserves policy_ 

Turner Contemporary considers a broad range of factors in its reserves policy. The organisation’s activities and structures are somewhat complex, operating a public space comes with substantial public liabilities, and there are risks arising from engagement in trading or provision of goods and services under contract. Turner Contemporary has three reserve funds, Endowment (restricted), Restricted, and Unrestricted (which includes some designated funds), and has a long-term lease on a complex building and operates a trading subsidiary. 

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## **TURNER CONTEMPORARY** 

## **REPORT OF TRUSTEES** 

## _**FOR THE YEAR ENDED 31 MARCH 2023**_ 

## _Reserves policy (continued)_ 

The Trustees have agreed a Reserves Policy, which is a product of strategic planning, budgeting and risk management. The policy requires that the company’s core activity, funded through the unrestricted reserve, could continue for a period of three months during a period of unforeseen difficulty, which is in line with Charities Commission guidance, and for Turner Contemporary amounts to £602,000. Additionally, the Trustees have agreed to designate £75,000 of the unrestricted reserves to a Programme fund to support future exhibitions and £20,000 to a Sustainability Fund, which sets aside resources that will help to enhance the Gallery’s long term resilience. 

The unrestricted reserve totals £401,989 (2022: £736,608) of free unrestricted reserves as detailed on the Balance Sheet. The Trustees also consider the non-charitable funds amounting to £182,111 (2022: £100,855) to be free unresicted reserves. These two funds combined total £584,100 (2022: £837,463) against a policy of £602,000. 

At 31 March 2023 restricted funds amounted to £512,137 (2022: £218,239). See note 17 for further information, and for the projects to which these funds relate. 

At 31 March 2023 endowment funds amounted to £2,717,133 (2022: £2,946,766). See note 18 for further information. 

## **Future developments** 

2022-23 has been another challenging year. The impact of the cost-of-living crisis has been substantial on the gallery and our community. We also used this time to consider our future and are developing a new vision and programme strategies for 2020-2030 and we continue to discuss the possibility of the development of the Rendezvous site, the land at the rear of the gallery which is owned by Kent County Council. 

In Autumn 2022, Kent County Council announced that they would no longer be able to provide the gallery with the Rendezvous Levy, which had been supplying an annual amount of £295,000. This levy was initially established in 2010 to provide a time bound income as collectively KCC with the gallery explored ways to develop the wider site and generate additional income for the gallery. The gallery is now focusing on developing a new comprehensive business plan with associated Key Performance Indicators (KPIs) to guide their strategic goals and operational tactics. We are evaluating our existing business model to identify areas that require growth, reduction, or change. The reduction in the levy is offset by income to the gallery from both an on-site car park delivered by the County Council and the RNLI, representing a fall in income of a little under £200,000. 

## **Risk management** 

The Trustees have assessed the major risks to which the charity is exposed, those relating to the specific operational areas of the charity, its investments and its finances. The Trustees believe that effective systems and controls are in place to mitigate these risks by ensuring that effective controls exist over key financial systems and by examining the operational and business risks faced by the charity. 

Ongoing risk assessment and management is encouraged within the programme to enable delivery of a varied and engaging programme, and in developing commercial and philanthropic giving to support the long-term financial sustainability of the organisation. Turner Contemporary has a comprehensive risk management programme in place which is designed to ensure that significant and emerging risks are identified, assessed, and managed effectively. Risk is managed to always ensure that we will comply with statutory and legal requirements and conditions set down by funding partners. 

A Risk Register forms part of the Business Plan and is regularly appraised, reviewed, and updated. The purpose of the Risk Register is to help all staff and Trustees identify and manage risks before they occur, rather than dealing with the consequences. Our approach to risk management enables us to fulfil our ambitions and maximise opportunities when they present themselves. The Trustees believe that effective systems and controls are in place to mitigate these risks. 

Key risks relate to staffing and funding. Turner Contemporary needs highly skilled and flexible staff within the team. Recruitment in East Kent and within the museum and gallery sector is challenging. Our aim is to develop and retain staff. The other major risk relates to core public funding from Kent County Council (KCC) and Arts Council England (ACE). Year on year, core funding from KCC has reduced and we are working closely with colleagues at the County Council to diversify our funding portfolio. 

- 10 - 



## **TURNER CONTEMPORARY** 

## _**REPORT OF TRUSTEES FOR THE YEAR ENDED 31 MARCH 2023**_ 

## **Going concern** 

The Trustees are of the opinion that Turner Contemporary is a Going Concern as at 31 March 2023. 

The organisation receives significant core funding from Kent County Council and Arts Council England (ACE). The funding from Kent County Council is agreed up to 31 March 2024 and funding from ACE as a National Portfolio Organisation is agreed for the three years to 31 March 2026. Based on discussions and indicative figures, the trustees are confident that funding will continue to ensure that the organisation can continue to operate over the term of the funding award. 

Cash balances and reserves remain healthy with core funding being paid in stages throughout the year. In 2022-23 our balance of unrestricted funds decreased as a result of high levels of inflation, particularly on utilities, and the postpandemic period in which operating costs returned, but earned income had not yet recovered to pre-pandemic levels. Despite these challenges, we have been able to re-shape our operating plan for 2023-24 to deliver a break-even budget. 

Restricted Reserves have been carefully reviewed and Turner Contemporary does not expect to have to return any restricted funds held for non-performance of contracted activities. The Endowment is managed by Charles Stanley with a ‘medium-to-low’ risk management profile and therefore, despite reductions in the value of investments held during 2022/23, they are considered to be a temporary. The medium-term risks to the investment valuation are considered to be low. 

## **Fundraising** 

Turner Contemporary is a charity and has ambitious annual fundraising targets. We employ a small in-house Development Team who work on all aspects of our fundraising. We do not employ any external professional fundraisers to fundraise on our behalf but all staff members and any volunteers, including Trustees, involved in fundraising activities are trained in accordance with recognised standards to ensure that the public, including vulnerable people, are protected from unreasonable or intrusive approaches. 

Turner Contemporary has not received any complaints about our fundraising activities and we are GDPR compliant. 

## **Structure, governance and management** 

The company is a charitable company limited by guarantee and is governed by its Articles of Association dated 12 December 2008. It is registered as a charity with the Charity Commission under number 1129974. Turner Contemporary originally became a charity on 3 June 2009. 

Turner Contemporary Enterprises Limited, a private limited company registered in England and Wales, is a wholly owned subsidiary of Turner Contemporary. 

The Trustees of Turner Contemporary who served during the year are: 

Mathew Slotover (Chair - appointed 1 January 2023) Michael Driessen (appointed 9 June 2023) Clive Stevens DL (Chair - retired 31 December 2022) Lucy Edematie Laura Wright (Vice Chair) (resigned 9 June 2023) Peter Hawkes Vivienne Bennett Kemet Hawthorne Pink Jill Constantine Sarah Hohler Martin Cook (resigned 22 September 2022) Yasmin Khan Sarah Dargan (appointed 9 June 2023) Nicholas Maynard (appointed 7 October 2022) Sir Stephen Deucher Keith Valentine Virginie Dhouibi (appointed 7 October 2022) 

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## **TURNER CONTEMPORARY** 

## _**REPORT OF TRUSTEES FOR THE YEAR ENDED 31 MARCH 2023**_ 

## **Appointment and recruitment of Trustees** 

The management of the company is the responsibility of the Trustees who are elected and co-opted under the terms of the Articles of Association. There must be a minimum of six Trustees. One trustee shall be appointed by the Local Authority. Each trustee must retire from office at the third annual retirement meeting following the commencement of their term of office. Retiring Trustees may be reappointed unless they have served for two consecutive terms of office whereby they cannot be reappointed until the earlier of a) anniversary of the commencement of their break from office and b) the annual retirement meeting following the annual retirement meeting at which their break from office commenced. 

## **Policies adopted for the induction and training of Trustees** 

New Trustees are recruited according to the Trustees and Director’s ongoing assessment of the overall skills required to be represented on the Board and what additional skills are needed to complement the overall mix. 

Newly appointed Trustees receive briefings from the Chair, Director and Strategic Leadership Team and are provided with relevant Charity Commission guidance.  All Trustees are encouraged to attend appropriate training courses. 

## **Organisational structure and decision making** 

The Board currently comprises 14 Trustees who have delegated powers to the Executive team to make expenditure decisions up to £50,000. 

The following sub-committees of the Board meet regularly: 

- Finance & Enterprises 

- Artistic and Learning Programme 

- Fundraising and Development 

In addition, to the sub-committees, we have a Turner Contemporary Enterprises Board which supports and guides our commercial activities. All sub-committees report to the full Board at the quarterly Board meetings. 

The day-to-day activities of the gallery are managed by the Director, Clarrie Wallis and the Strategic Leadership team. 

## **Pay policy for key management personnel** 

All Trustees give of their time freely and no trustee received remuneration in the year. The pay of senior staff is reviewed annually by the Director and Board of Trustees. The director’s remuneration is a decision of the Board. 

## **Trustees responsibilities** 

The Trustees (who are also directors of Turner Contemporary for the purposes of company law) are responsible for preparing a Trustees' annual report and financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice. 

Company law and the law applicable to charities in England and Wales requires the Trustees to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for the year.  In preparing those financial statements the Trustees are required to: 

- select suitable accounting policies and then apply them consistently; 

- observe the methods and principles in the Charities SORP 2015 (FRS 102); 

- make judgements and estimates that are reasonable and prudent; 

- state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; 

- prepare the financial statements on the going concern basis unless it is inappropriate to presume the charitable company will continue in business. 

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

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## **TURNER CONTEMPORARY** 

## _**REPORT OF TRUSTEES FOR THE YEAR ENDED 31 MARCH 2023**_ 

## **Auditor** 

In accordance with the company's articles, a resolution proposing that Azets Audit Services be reappointed as auditor of the company will be put at a General Meeting. 

## **Disclosure of information to auditors** 

Each of the Trustees have confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditors are aware of such information. 

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

Signed on behalf of the Trustees: 

…………………………………. Matthew Slotover Chair Date: 28 November 2023 

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## **TURNER CONTEMPORARY** 

## **INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF TURNER CONTEMPORARY** 

## **Opinion** 

We have audited the financial statements of Turner Contemporary (the parent charitable company) and its subsidiaries (the group) for the year ended 31 March 2023 which comprise the Consolidated Statement of Financial Activities, the Consolidated Balance Sheet, the Charitable Company Balance Sheet, the Consolidated Cash Flow Statement and the related notes. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK (United Kingdom Generally Accepted Accounting Practice). 

In our opinion the financial statements: 

- give a true and fair view of the state of the group and parent charitable company’s affairs as at 31 March 2023, and of the group's incoming resources and application of resources, including its income and expenditure, for the year then ended; 

- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and 

- have been prepared in accordance with the requirements of the Companies Act 2006. 

## **Basis of opinion** 

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

## **Conclusions relating to going concern** 

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where: 

- the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or 

- the trustees have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the group's or charitable company’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue. 

## **Other information** 

The trustees are responsible for the other information. The other information comprises the information included in the trustees’ annual report , other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. 

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. 

We have nothing to report in this regard. 

- 14 - 



## **TURNER CONTEMPORARY** 

## **INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF TURNER CONTEMPORARY** 

## **Opinions on other matters prescribed by the Companies Act 2006** 

In our opinion, based on the work undertaken in the course of the audit: 

- the information given in the trustees’ report (incorporating the [strategic report and the] directors’ report) for the financial year for which the financial statements are prepared is consistent with the financial statements; and 

- the strategic report and the directors’ report have been prepared in accordance with applicable legal requirements. 

## **Matters on which we are required to report by exception** 

In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report and the directors’ report. 

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you, in our opinion: 

- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or 

- the financial statements are not in agreement with the accounting records and returns; or 

- certain disclosures of directors’ remuneration specified by law are not made; or 

- we have not received all the information and explanations we require for our audit. 

## **Responsibilities of trustees** 

As explained more fully in the trustees’ responsibilities statement set out on page 15, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error 

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

## **Auditor’s responsibilities for the audit of the financial statements** 

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

As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: 

- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. 

- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the group’s internal control. 

- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the trustees. 

- 15 - 



## **TURNER CONTEMPORARY** 

## **INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF TURNER CONTEMPORARY** 

## **Auditor’s responsibilities for the audit of the financial statements (continued)** 

- Conclude on the appropriateness of the trustees’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the charitable company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the charitable company to cease to continue as a going concern. 

- Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. 

- Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion. 

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. 

## **Extent to which the audit was considered capable of detecting irregularities, including fraud** 

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud. 

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud. 

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included: 

- Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud; 

- Reviewing minutes of meetings of those charged with governance; 

- Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the company through enquiry and inspection; 

- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations; 

- Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias. 

- 16 - 



## **TURNER CONTEMPORARY** 

## **INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF TURNER CONTEMPORARY** 

## **Extent to which the audit was considered capable of detecting irregularities, including fraud (continued)** 

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. 

## **Use of our report** 

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed. 

Michelle Wilkes FCA (Senior Statutory Auditor) for and on behalf of Azets Audit Services Statutory Auditor Date: 14 December 2023 

5th Floor Ashford Commercial Quarter 1 Dover Place Ashford Kent. TN23 1FB 

- 17 - 



## **TURNER CONTEMPORARY** 

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

|**Note**<br>**Income and endowments from:**<br>Donations and legacies<br>**2**<br>Charitable activities<br>**3**<br>Other trading activities<br>**4**<br>Investments<br>Museums and Galleries Tax Relief<br>Other<br>**5**<br>**Total income and endowments**<br>**Expenditure on:**<br>Raising funds<br>Charitable activities<br>**Total expenditure**<br>**6**<br>**12**<br>**Transfer between funds**<br>**17,18**<br>**Net movement in funds**<br>**Reconciliation of funds:**<br>**Total funds carried forward**<br>**Net (expenditure) / income before transfers**<br>Total funds brought forward<br>**Net income / (expenditure) before gains /**<br>**(losses) on investments**<br>Net (losses)/gains on investments|**Unrestricted**<br>**funds**<br>**Restricted**<br>**funds**<br>**Endowment**<br>**funds**<br>**2023**<br>**Total funds**<br>**£**<br>**£**<br>**£**<br>**£**<br>220,063<br>250,900<br>-<br>470,963<br>1,588,361<br>463,105<br>-<br>2,051,466<br>578,504<br>-<br>-<br>578,504<br>1,776<br>-<br>65,755<br>67,530<br>237,694<br>-<br>-<br>237,694<br>74,268<br>-<br>-<br>74,268<br>2,700,666<br>714,005<br>65,755<br>3,480,425<br>522,261<br>-<br>-<br>522,261<br>2,370,042<br>408,181<br>-<br>2,778,223<br>2,892,303<br>408,181<br>-<br>3,300,484<br>(191,638)<br>305,824<br>65,755<br>179,941<br>-<br>-<br>(274,040)<br>(274,040)<br>(191,638)<br>305,824<br>(208,285)<br>(94,099)<br>33,274<br>(11,926)<br>(21,348)<br>-<br>(158,364)<br>293,898<br>(229,633)<br>(94,099)<br>837,463<br>218,239<br>2,946,766<br>4,002,468<br>679,100<br>512,137<br>2,717,133<br>3,908,370|**2022**<br>**Total funds**<br>**£**<br>195,842<br>1,815,295<br>360,783<br>57,208<br>47,462<br>102,613<br>2,579,203<br>377,994<br>2,720,372<br>3,098,366<br>(519,163)<br>100,623<br>(418,540)<br>-<br>(418,540)<br>4,421,008<br>4,002,468|
|---|---|---|



All of the above amounts relate to continuing activities. 

- 18 - 



## **TURNER CONTEMPORARY** 

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

## **Comparative only - Year ended 31 March 2022** 

|**Note**<br>**Income and endowments from:**<br>Donations and legacies<br>**2**<br>Charitable activities<br>**3**<br>Other trading activities<br>**4**<br>Investments<br>Museums and Galleries Tax Relief<br>Other<br>**5**<br>**Total income and endowments**<br>**Expenditure on:**<br>Raising funds<br>Charitable activities<br>**Total expenditure**<br>**6**<br>**12**<br>**Transfer between funds**<br>**17,18**<br>**Net movement in funds**<br>**Reconciliation of funds:**<br>**Total funds carried forward**<br>Net gains on investments<br>**Net (expenditure) / income before**<br>**transfers**<br>Total funds brought forward<br>**Net income / (expenditure) before gains /**<br>**(losses) on investments**|**Unrestricted**<br>**funds**<br>**Restricted**<br>**funds**<br>**Endowment**<br>**funds**<br>**2022**<br>**Total funds**<br>**£**<br>**£**<br>**£**<br>**£**<br>165,842<br>30,000<br>-<br>195,842<br>1,482,291<br>333,004<br>-<br>1,815,295<br>360,783<br>-<br>-<br>360,783<br>374<br>-<br>56,835<br>57,208<br>47,462<br>-<br>-<br>47,462<br>102,613<br>-<br>-<br>102,613<br>2,159,365<br>363,004<br>56,835<br>2,579,203<br>377,994<br>-<br>-<br>377,994<br>1,857,819<br>813,714<br>48,839<br>2,720,372<br>2,235,813<br>813,714<br>48,839<br>3,098,366<br>(76,449)<br>(450,710)<br>7,996<br>(519,163)<br>-<br>-<br>100,623<br>100,623<br>(76,449)<br>(450,710)<br>108,619<br>(418,540)<br>196,713<br>-<br>(196,713)<br>-<br>120,264<br>(450,710)<br>(88,094)<br>(418,540)<br>717,199<br>668,949<br>3,034,860<br>4,421,008<br>837,463<br>218,239<br>2,946,766<br>4,002,468|
|---|---|



All of the above amounts relate to continuing activities. 

- 19 - 



## **TURNER CONTEMPORARY** 

## **CONSOLIDATED SUMMARY INCOME AND EXPENDITURE ACCOUNT** _**FOR THE YEAR ENDED 31 MARCH 2023**_ 

|Gross income of charitable operations<br>Total expenditure of continuing operations<br>**Net income / (expenditure) before tax for the year**<br>Taxation<br>**Net income / (expenditure) for the year**|**2023**<br>**£**<br>3,414,671<br>(3,300,484)<br>114,187<br>-<br>114,187|**2022**<br>**£**<br>2,522,369<br>(3,049,527)<br>(527,158)<br>-<br>(527,158)|
|---|---|---|



- A detailed analysis of income by source is provided in the Statement of Financial Activities. 

- A detailed analysis of Net Income before Investments is shown in the Statement of Financial Activities. 

• The Summary Income and Expenditure Account is derived from the Statement of Financial Activities on page 18 which together with the Notes to the Accounts on pages 24 to 34 provides full information on the movements during the year on all funds of the group. 

There are no gains or losses for the year other than those recognised in the Statement of Financial Activities. 

- 20 - 



## **TURNER CONTEMPORARY** 

## **CONSOLIDATED BALANCE SHEET** _**AS AT 31 MARCH 2023**_ 

|**Note**<br>**Fixed assets**<br>Tangible assets<br>**11**<br>Investments<br>**12**<br>**Current assets**<br>Stock - finished goods<br>**13**<br>Debtors<br>**14**<br>Cash at bank and in hand<br>**15**<br>**Net current assets**<br>**Total assets less current liabilities**<br>**Funds**<br>Permanent endowment funds<br>**18**<br>Expendable endowment funds<br>**18**<br>Restricted funds<br>**17**<br>Unrestricted funds<br>Designated funds<br>**16**<br>Non-charitable funds<br>**12**<br>**Total funds**<br>**19**<br>**Creditors: amounts falling due within one year**|**£**<br>**£**<br>10,504<br>2,717,133<br>2,727,637<br>38,280<br>451,260<br>997,867<br>1,487,407<br>(306,674)<br>1,180,733<br>3,908,370<br>2,652,414<br>64,719<br>512,137<br>401,989<br>95,000<br>182,111<br>3,908,370<br>**2023**|**£**<br>**£**<br>29,412<br>2,946,766<br>2,976,178<br>43,642<br>318,642<br>894,226<br>1,256,511<br>(230,221)<br>1,026,290<br>4,002,468<br>2,926,454<br>20,312<br>218,239<br>736,608<br>-<br>100,855<br>4,002,468<br>**2022**|
|---|---|---|



The financial statements were approved and authorised for issue by the Board on 6 November 2023 

Signed on behalf of the board of trustees 

……………………………. ………………………….. Matthew Slotover Trustee Trustee 

**Company Number: 06772337** 

- 21 - 



## **TURNER CONTEMPORARY** 

## **CHARITY BALANCE SHEET** _**AS AT 31 MARCH 2023**_ 

|**Note**<br>**Fixed assets**<br>Tangible assets<br>**11**<br>Investments<br>**12**<br>**Current assets**<br>Debtors<br>**14**<br>Cash at bank and in hand<br>**15**<br>**Net current assets**<br>**Total assets less current liabilities**<br>**Funds**<br>Permanent endowment funds<br>**18**<br>Expendable endowment funds<br>**18**<br>Restricted funds<br>**17**<br>Unrestricted funds<br>Designated funds<br>**16**<br>**Total funds**<br>**Creditors: amounts falling due within one**<br>**year**|**£**<br>**£**<br>8,599<br>2,718,233<br>2,726,832<br>500,532<br>755,155<br>1,255,687<br>(256,261)<br>999,426<br>3,726,259<br>2,652,414<br>64,719<br>512,137<br>401,989<br>95,000<br>3,726,259<br>**2023**|**£**<br>**£**<br>24,725<br>2,947,866<br>2,972,591<br>364,811<br>765,378<br>1,130,189<br>(201,168)<br>929,021<br>3,901,613<br>2,926,454<br>20,312<br>218,239<br>736,608<br>-<br>3,901,613<br>**2022**|
|---|---|---|



The financial statements were approved and authorised for issue by the Board on 6 November 2023 

Signed on behalf of the board of trustees 

……………………………. ………………………….. Matthew Slotover Trustee Trustee 

**Company Number: 06772337** 

- 22 - 



## **TURNER CONTEMPORARY** 

## **CONSOLIDATED CASH FLOW STATEMENT** _**FOR THE YEAR ENDED 31 MARCH 2023**_ 


**----- Start of picture text -----**<br>
Group<br>Note 2023 2022<br>£ £<br>Cash flow from operating activities 21 148,047 (255,619)<br>Cash flow from investing activities<br>-<br>Payments to acquire tangible fixed assets (37,652)<br>Payment to acquire fixed asset investments (101,793) (288,972)<br>Proceeds on disposal fixed asset investments 57,386 379,302<br>Net cash flow from investing activities (44,407) 52,678<br>Net increase in cash and cash equivalents 103,640 (202,941)<br>-<br>Cash and cash equivalents at 1 April 2022 1,097,167<br>Cash and cash equivalents cosists of:<br>Cash at bank and in hand 997,867 894,226<br>Cash and cash equivalents at 31 March 2023 997,867 894,226<br>**----- End of picture text -----**<br>


- 23 - 



## **TURNER CONTEMPORARY** 

## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 MARCH 2023**_ 

## **1 Accounting policies** 

## **1.1 Basis of accounting** 

Turner Contemporary is a registered charitable company in the United Kingdom. The address of the registered office is given in the charity information on page 1 of these financial statements. The nature of the charity’s operations and principal activities is the provision of a permanent Gallery in Margate which celebrates JMW Turner's association with the town and, through a varied programme of exhibitions, events and learning activities, promotes an understanding and enjoyment of historical and contemporary art. 

The charity constitutes a public benefit entity as defined by FRS 102. 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 issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011, the Companies Act 2006 and UK Generally Accepted Accounting Practice. 

The financial statements are prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The financial statements are prepared in sterling which is the functional currency of the charity. 

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated. 

## **1.2 Consolidation** 

In the opinion of the member of the committee, the company and its subsidiary undertakings comprise a small group. 

The consolidated financial statements incorporate the results of the charity and its trading subsidiary, Turner Contemporary Enterprises Limited, for the year ended 31 March 2023. Its other subsidiary, Turner Rooms Limited, is not included in the consolidated accounts on the grounds it is not material. As a consolidated Statement of Financial Activities is published, a separate Statement of Financial Activities for the parent company is omitted from the group statements by virtue of Section 408 of the Companies Act 2006. 

## **1.3 Fund accounting** 

Unrestricted general funds are funds which can be used in accordance with the charitable objects at the discretion of the trustees. 

Restricted funds are funds that can only be used for particular restricted purposes within the objects of the charitable company. Restriction arises when specified by the donor or when funds are raised for particular restricted purposes. 

The endowment fund is where funds have been provided by donors or grant-giving bodies on the condition that they must be retained in order to generate investment income to be used in line with the terms of the donation. 

Income arising on endowment funds is generally expendable and is distributed to income funds in order to be spent. 

## **1.4 Income recognition** 

All income is included in the Statement of Financial Activities (SoFA) when the charity is legally entitled to the income after any performance conditions have been met, the amount can be measured reliably and it is probable that the income will be received. 

- Donations are recognised when they are received and any income tax recoverable in relation to donations received under gift aid is recognised at the time of the donation. 

- All grant income is recognised when the company is legally entitled to the income and the amount can be reliably estimated. Where grant income received relates to a later period, the appropriate amount is deferred to that period. 

- Exhibition income is recognised in the period in which the funds are available to spend. 

- - Museum and Galleries Tax Relief is recognised in the year to which the claim relates. 

- 24 - 



## **TURNER CONTEMPORARY** 

## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 MARCH 2023**_ 

## **1 Accounting policies (continued)** 

## **1.5 Expenditure recognition** 

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably. It is categorised under the following headings: 

- Costs of generating funds are those costs incurred in attracting voluntary income. 

- Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for beneficiaries. It includes both costs allocated directly to such activities and those costs of an indirect nature necessary to support them. 

- Exhibition costs are recognised across the duration of the exhibition from the initial preparation to the removal of the exhbition and not for the duration of the exhibition in the gallery. 

- Support costs have been allocated to categories on a basis consistent with the use of resources e.g. staff costs by time spent. 

## **1.6 Tangible fixed assets and depreciation** 

Tangible fixed assets are stated at cost or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended. Fixed assets below £500 are not capitalised. 

Equipment 50% straight line Fixtures and fittings 25% straight line 

## **1.7 Stocks** 

Stock is valued at the lower of cost and net realisable value. 

## **1.8 Investments** 

Investments are recognised initially at fair value which is normally the transaction price excluding transaction costs. Subsequently, they are measured at fair value with changes recognised in ‘net gains / (losses) on investments’ in the SoFA if the shares are publicly traded or their fair value can otherwise be measured reliably. Other investments are measured at cost less impairment. 

## **1.9 Debtors and creditors receivable / payable within one year** 

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in expenditure. 

## **1.10 Tax** 

The charity is an exempt charity within the meaning of schedule 3 of the Charities Act 2011 and is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. 

The tax currently payable is based on taxable profit for the year and represents tax on the trading subsidiary's profits. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The trading subsidiary company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date. 

## **1.11 Judgements and key sources of estimation uncertainty** 

Accounting estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. 

## _Useful economic lives of tangible assets_ 

The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are reassessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See note 11 for the carrying amount of the property plant and equipment, and note 1.6 for the useful economic lives for each class of assets. 

- 25 - 



**TURNER CONTEMPORARY** 

## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 MARCH 2023**_ 

## **1 Accounting policies (continued)** 

## **1.12 Going concern** 

The trustees are of the opinion that Turner Contemporary is a Going Concern as at 31 March 2023. 

The organisation receives significant core funding from Kent County Council and Arts Council England (ACE). The funding from Kent County Council is agreed up to 31 March 2024 and funding from ACE as a National Portfolio Organisation is agreed for the three years to 31 March 2026. Based on discussions and indicative figures, the trustees are confident that funding will continue to ensure that the organisation can continue to operate over the term of the funding award. 

Cash balances and reserves remain healthy with core funding being paid in stages throughout the year. In 2022-23 our balance of unrestricted funds decreased as a result of high levels of inflation, particularly on utilities, and the post-pandemic period in which operating costs returned, but earned income had not yet recovered to pre-pandemic levels. Despite these challenges, we have been able to re-shape our operating plan for 2023-24 to deliver a breakeven budget. 

Restricted Reserves have been carefully reviewed and Turner Contemporary does not expect to have to return any restricted funds held for non-performance of contracted activities. The Endowment is managed by Charles Stanley with a ‘medium-to-low’ risk management profile and therefore, despite reductions in the value of investments held during 2022/23, they are considered to be a temporary. The medium-term risks to the investment valuation are considered to be low. 

## **1.13 Government grants** 

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received. A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability. 

|**2**<br>**Donations and Legacies**<br>Donations and sponsorships<br>Corporate patrons<br>**3**<br>**Income from charitable activities**<br>Kent County Council - Core & other restricted funding<br>Arts Council England<br>Art Fund<br>Artswork<br>Bloomberg Philanthropies<br>British Council<br>Creative Folkestone<br>East Sussex County Council<br>Paul Mellon Centre for Studies in British Art<br>University of Kent – Creative Estuary<br>Thanet District Council<br>The Clore Duffield Foundation<br>The Dana and Albert R. Broccoli Foundation<br>The Foyle Foundation<br>Other (less than £10,000)|**2023**<br>**£**<br>194,013<br>276,950<br>470,963<br>**2023**<br>905,000<br>681,791<br>73,500<br>12,500<br>125,000<br>50,000<br>-<br>-<br>35,000<br>15,440<br>-<br>10,000<br>80,000<br>35,000<br>28,235<br>2,051,466|**2022**<br>**£**<br>126,509<br>69,333<br>195,842<br>**2022**<br>805,000<br>724,164<br>-<br>-<br>50,000<br>-<br>135,131<br>1,000<br>-<br>60,000<br>18,000<br>-<br>-<br>-<br>22,000<br>1,815,295|
|---|---|---|



- 26 - 



## **TURNER CONTEMPORARY** 

## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 MARCH 2023**_ 


**----- Start of picture text -----**<br>
4 Income from other trading activities 2023 2022<br>£ £<br>Learning programme income 11,119 3,668<br>Trading subsidiary (see note 12) 567,385 357,115<br>578,504 360,783<br>5 Other Income 2023 2022<br>£ £<br>Other income 74,268 20,945<br>Curatorial services - 37,500<br>-<br>Job retention scheme grants 44,168<br>74,268 102,613<br>Staff  Support  2022<br>6 Expenditure costs Direct costs costs 2023       Total Total<br>£ £ £ £ £<br>Raising funds<br>      Trading 122,590 172,583 99,306 394,479 265,702<br>-<br>      Fundraising 78,182 30,020 108,202 92,222<br>- -<br>      Investment manager fees 19,580 19,580 20,070<br>Charitable activities:<br>      Exhibitions programme 346,956 424,060 329,838 1,100,854 1,136,817<br>      Learning programme 263,166 77,904 315,794 656,863 711,935<br>     Visitor experience 572,092 142,452 305,962 1,020,506 871,620<br>1,382,986 847,019 1,070,480 3,300,484 3,098,366<br>7 Support costs Raising  2023 2022<br>funds Exhibition  Learning Visitor Total Total<br>£ £ £ £ £ £<br>- - -<br>Trading costs 99,306 99,306 5,698<br>Training and other staff<br>costs - 6,754 6,754 6,754 20,263 68,950<br>-<br>Travelling 10,616 4,954 2,803 18,374 7,317<br>-<br>Hospitality 11,799 9,662 2,947 24,409 24,270<br>-<br>Light & heat 97,400 97,400 97,400 292,199 141,176<br>-<br>Repairs and renewals 48,702 48,702 48,702 146,105 98,432<br>Printing, postage &<br>-<br>stationery 3,726 3,726 3,726 11,179 13,974<br>-<br>Computer costs 27,086 26,900 26,900 80,886 53,519<br>-<br>Telephone 8,165 8,165 8,165 24,496 22,289<br>Insurance - 23,520 17,437 17,437 58,394 43,456<br>-<br>Subscriptions 6,556 6,588 5,623 18,766 14,797<br>Licenses and fees - 660 652 652 1,964 4,908<br>-<br>Consultancy fees 5,597 5,597 5,597 16,791 2,754<br>Professional fees - 47,959 47,959 47,958 143,877 53,713<br>- - - - - -<br>FD and accountancy costs<br>- - -<br>Investment manager fees 19,580 19,580 20,070<br>Bad debts written off - 8,050 8,050 8,050 24,150 -<br>-<br>Other support costs 4,429 4,429 4,429 13,287 6,326<br>-<br>Depreciation 5,375 5,375 5,375 16,125 20,353<br>Governance:<br>  Audit - 6,777 6,777 6,777 20,331 9,209<br>- -<br>  Consultancy 6,666 6,667 6,667 20,000<br>118,886 329,838 315,794 305,962 1,070,480 611,210<br>**----- End of picture text -----**<br>


- 27 - 



## **TURNER CONTEMPORARY** 

## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 MARCH 2023**_ 

|**8**<br>**Net income for the year**<br>**2023**<br>**£**<br>This is stated after charging:<br>Depreciation<br>18,908<br>Auditors remuneration<br>- audit<br>11,250<br>- audit previous year<br>12,355<br>- other services<br>10,216<br>**9**<br>**Staff costs**<br>**2023**<br>**£**<br>Wages and salaries<br>1,249,657<br>Other pension costs<br>34,695<br>1,284,352<br>The average number of employees, by headcount, during the year:<br>**2023**<br>**No.**<br>Staff<br>72<br>The number of employees whose remuneration for the year fell within the following bands were:<br>**2023**<br>**No.**<br>£80,000 to £89,999<br>1|**2022**<br>**£**<br>23,136<br>9,209<br>-<br>7,568<br>**2022**<br>**£**<br>1,171,615<br>33,827<br>1,205,442<br>**2022**<br>**No.**<br>69<br>**2022**<br>**No.**<br>1|
|---|---|



The pension contributions for the employees in the above band were £2,490 (2022: £4,015). 

The senior management team comprise the key management personnel of the charity in charge of directing and controlling, running and operating the charity on a day to day basis. As detailed above, no trustees received remuneration during the period. The remuneration to the senior management team, including employers national insurance and employers pension contributions, total £355,654 (2022: £318,820). 

## **10 Trustee remuneration** 

The trustees were not paid remuneration or reimbursed expenses during the year (2022: None). 

- 28 - 



## **TURNER CONTEMPORARY** 

## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 MARCH 2023**_ 


**----- Start of picture text -----**<br>
11 Tangible fixed assets Fixtures,<br>fittings &  Catering  Computer<br>Group equipment equipment equipment Total<br>£ £ £ £<br>Cost<br>As at 1 April 2022 325,084 20,957 8,586 354,627<br>As at 31 March 2023 325,084 20,957 8,586 354,627<br>Depreciation<br>As at 1 April 2022 298,255 18,888 8,072 325,215<br>Charge  17,206 1,188 514 18,908<br>As at 31 March 2023 315,461 20,076 8,586 344,123<br>Net book value<br>As at 31 March 2023 9,623 881 - 10,504<br>As at 31 March 2022 26,829 2,069 514 29,412<br>Fixtures, fittings &<br>Charity equipment<br>Cost<br>As at 1 April 2022 283,652<br>As at 31 March 2023 283,652<br>Depreciation<br>As at 1 April 2022 258,927<br>Charge  16,125<br>As at 31 March 2023 275,052<br>Net book value<br>As at 31 March 2023 8,599<br>As at 31 March 2022 24,725<br>12 Fixed asset investments Listed  2023  2022<br>investments Total Total<br>Group £ £ £<br>Market value at 1 April 2022 2,946,766 2,946,766 2,936,473<br>Additions 101,793 101,793 288,972<br>Disposals (193,056) (193,056) (293,465)<br>Change in value in year (274,040) (274,040) 100,623<br>Movement on cash balances 135,670 135,670 (85,837)<br>Market value at 31 March 2023 2,717,133 2,717,133 2,946,766<br>Historical cost 2,527,895 2,483,233 2,527,895<br>There were no material investments at market value (in excess of 5% of valuation)<br>Cash 143,102 143,102 7,432<br>#REF! 143,102 7,432<br>**----- End of picture text -----**<br>


- 29 - 



## **TURNER CONTEMPORARY** 

## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 MARCH 2023**_ 

## **12 Fixed asset investments (continued)** 


**----- Start of picture text -----**<br>
||||||
|---|---|---|---|---|
|Shares in|
|subsidiary|Listed|2023|2022|
|undertaking|investments|Total|Total|
|Charity|£|£|£|£|
|Cost / Market value at 1 April 2022|1,100|2,946,766|2,947,866|2,937,573|
|Additions|-|101,793|101,793|288,972|
|-|
|Disposals|(193,056)|(193,056)|(293,465)|
|Change in value in year|-|(274,040)|(274,040)|100,623|
|Movement on cash balances|-|135,670|135,670|(85,837)|
|Market value at 31 March 2023|1,100|2,717,133|2,718,233|2,947,866|
|Historical cost|1,100|2,527,895|2,528,995|2,528,995|

**----- End of picture text -----**<br>


There were no material investments at market value (in excess of 5% of valuation) other than the funds held as cash: 


**----- Start of picture text -----**<br>
||||||
|---|---|---|---|---|
|Cash|-|143,102|143,102|7,432|
|2023|2022|
|Listed Investments by Class (Group and Charity):|£|£|
|Fixed Income|281,270|250,092|
|UK Equity|654,345|759,855|
|International Equity|1,279,062|1,456,190|
|Alternatives|269,462|345,541|
|Mixed Investment|43,729|46,177|
|Cash|143,102|7,432|
|2,670,970|2,865,287|

**----- End of picture text -----**<br>


## **Holdings of more than 20%** 

The charity holds more than 20% of the share capital of the following company: 


**----- Start of picture text -----**<br>
|||||
|---|---|---|---|
|Proportion of|
|voting rights|
|and ordinary|
|Country of registration or|share capital|Principal|
|Subsidiary undertaking|incorporation|held|activity|
|Turner Contemporary Enterprises Limited|England and Wales|100%|Commercial|
|activities of|
|Turner|
|Contemporary|
|Turner Rooms Limited|England and Wales|100%|Accommodation|
|activities of|
|Turner|
|Contemporary|

**----- End of picture text -----**<br>


The trading results of Turner Contemporary Enterprises Limited for the year to 31 March 2023 are as follows: 


**----- Start of picture text -----**<br>
||||
|---|---|---|
|2023|2022|
|£|£|
|Turnover|567,275|350,050|
|Grant received|-|7,065|
|Bank interest|110|46|
|Cost of sales|(172,583)|(141,683)|
|Administration costs|(205,406)|(119,957)|
|Audit and accountancy fees|(16,490)|(4,063)|
|Operating surplus for the year|172,906|91,458|
|-|
|Gift aid paid|(91,650)|
|Retained surplus for the year|81,256|91,458|
|The assets and liabilities of the subsidiary were:|
|Tangible fixed assets|1,904|4,687|
|Current assets|305,085|212,163|
|Current liabilities|(123,878)|(114,995)|
|Aggregate share capital and reserves|183,111|101,855|

**----- End of picture text -----**<br>


- 30 - 



## **TURNER CONTEMPORARY** 

## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 MARCH 2023**_ 

|**13 Stock**<br>Retail stock<br>**14 Debtors**<br>Trade debtors<br>Amounts due from subsidiary<br>Other debtors<br>Prepayments<br>**15**<br>Trade creditors<br>Other taxes and social security<br>Other creditors<br>**16**<br>Programme Fund<br>Sustainability Fund<br>**Creditors: amounts falling due**<br>**Designated funds**<br>**2023 current**|**2023**<br>**2022**<br>**£**<br>**£**<br>38,280<br>43,642<br>38,280<br>43,642<br>**2023**<br>**2022**<br>**£**<br>**£**<br>48,391<br>150,466<br>-<br>-<br>125,067<br>110,339<br>277,803<br>57,837<br>451,260<br>318,642<br>**2023**<br>**2022**<br>**£**<br>**£**<br>75,913<br>130,892<br>50,530<br>57,371<br>180,231<br>41,958<br>306,674<br>230,221<br>**As at 1 April**<br>**2022**<br>**New**<br>**designations**<br>-<br>75,000<br>-<br>20,000<br>-<br>95,000<br>**Group**<br>**Group**<br>**Group**|**2023**<br>**2022**<br>**£**<br>**£**<br>-<br>-<br>-<br>-<br>**2023**<br>**2022**<br>**£**<br>**£**<br>29,199<br>140,078<br>73,465<br>85,942<br>362,199<br>82,354<br>35,670<br>56,437<br>500,532<br>364,811<br>**2023**<br>**2022**<br>**£**<br>**£**<br>61,134<br>121,465<br>21,824<br>43,473<br>173,303<br>36,230<br>256,261<br>201,168<br>**Designations**<br>**released**<br>**As at 31**<br>**March 2023**<br>-<br>75,000<br>-<br>20,000<br>-<br>95,000<br>**Charity**<br>**Charity**<br>**Charity**|
|---|---|---|



## _Programme Fund_ 

These funds have been designated by the Trustees to support the anticipated future cost of our ambitious exhibition programme. 

## _Sustainability Fund_ 

These funds have been designated by the Trustees to provide resources which will support our programme of business planning, the objective of which is to enhance the long-term resilience of the Gallery. 

|**As at 1 April**<br>**2022**<br>**£**<br>Learning progamme<br>7,328<br>Exhibitions programme<br>35,577<br>O Dreamland<br>143,053<br>8,281<br>Foyle Foundation<br>-<br>Clore Duffield Foundation<br>-<br>Digital Projects<br>24,000<br>218,239<br>O Dreamland-Emerging Producers Fund<br>**Restricted funds**<br>**2023 current**|**Income**<br>**£**<br>114,665<br>413,900<br>-<br>15,440<br>35,000<br>10,000<br>125,000<br>714,005|**Expenditure**<br>**£**<br>(88,044)<br>(162,935)<br>(89,784)<br>(23,721)<br>-<br>(10,000)<br>(33,697)<br>(408,181)|**Transfer**<br>**between**<br>**funds**<br>**£**<br>(11,926)<br>-<br>-<br>-<br>-<br>-<br>-<br>(11,926)|**As at 31**<br>**March 2023**<br>**£**<br>22,023<br>286,542<br>53,269<br>-<br>35,000<br>-<br>115,303<br>512,137|
|---|---|---|---|---|



## **17 Restricted funds 2023 current** 

- 31 - 



## **TURNER CONTEMPORARY** 

## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 MARCH 2023**_ 

|**17**<br>Learning progamme<br>Exhibitions programme<br>England’s Creative Coast<br>Creative Transition Programme<br>O Dreamland<br>Pioneering Places<br>Strategic Tour (Seaside photographed)<br>Digital Projects<br>O Dreamland - Emerging Producers Fund<br>**Restricted funds**<br>**2022 comparative**|**As at 1**<br>**April 2021**<br>**Income**<br>**Expenditure**<br>**Transfer**<br>**between**<br>**funds**<br>**As at 31**<br>**March**<br>**2022**<br>**£**<br>**£**<br>**£**<br>**£**<br>**£**<br>76,077<br>37,000<br>(105,749)<br>-<br>7,328<br>22,838<br>37,500<br>(24,761)<br>-<br>35,577<br>379,787<br>21,000<br>(400,787)<br>-<br>-<br>42,277<br>-<br>(42,277)<br>-<br>-<br>147,970<br>40,000<br>(44,917)<br>-<br>143,053<br>-<br>20,000<br>(11,719)<br>8,281<br>-<br>135,131<br>(135,131)<br>-<br>-<br>-<br>22,373<br>(22,373)<br>-<br>-<br>-<br>50,000<br>(26,000)<br>-<br>24,000<br>668,949<br>363,004<br>(813,714)<br>-<br>218,239|
|---|---|



## _Learning programme_ 

These programmes are to advance the education of the public. There are several discrete elements to this programme. Much of the learning programme is supported by external funding which includes Art Fund, Artswork, Chartered Accountants Livery, Community Rail Partnership, Jerwood Arts, Save the Children, Social Enterprise Kent, The Midred Fund and University of Kent 

## _Exhibitions programme_ 

Contributions have been received towards the costs of staging specific exhibitions during the year and for future programmes. Contributors include ACME Artist Studios, APALAZZOGALLERY, Art Fund, British Council, Elephant Trust, Galerie Max Hatzler, Fortes D'Aloia & Gabriel, Guy and Alexandra Halamish, Henry Moore Foundation, Paul Mellon Centre for Studies in British Art, Peter Dubens, Simon Lee Gallery, Soo and Jonathan Hitchin, The Dana and Albert R. Broccoli Foundation and White Cube. 

## _England’s Creative Coast_ 

Supported by Arts Council England and Visit England, Turner Contemporary is the lead partner of England’s Creative Coast, a cultural tourism project involving galleries in Essex, Kent and East Sussex. A key element of this project is a series of public art commissions, the exhibition of which was launched in spring 2021. 

## _Creative Transition Programme -2022_ 

This is a multi-year project to enable thousands more young people in Thanet to have access to world class art, empowering them to develop confidence, team building and life skills. This project has been funded by various supporters including Peter Selman and Wates Foundation. 

## _O Dreamland_ 

This project is inspired by Lindsay Anderson’s film “O Dreamland” made in Margate in 1953, and will include working with people from the local community to develop a major exhibition to be shown at Turner Contemporary in 2023. Support for this project has been received from Freelands Foundation and Creative Estuary. 

## _Pioneering Places - 2022_ 

This project is part of a wider programme of activity led by Creative Folkestone and supported by the National Lottery Heritage Fund. The project focuses on enabling cultural, community and civic organisations to work closely in order to reimagine East Kent's future by exploring heritage, developing civic pride and connect artists and communities. Using child-led leadership, Turner Contemporary has worked with a group of primary school children in Ramsgate to commission an artwork for Ramsgate Harbour. The artwork, by Conrad Shawcross, will be displayed from Summer 2021. 

## _Strategic Tour (Seaside photographed) - 2022_ 

Arts Council England supported a tour of Seaside Photographed, a major exhibition examining the relationship between photographers, photography and the British seaside from the 1850s to the present. 

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## **TURNER CONTEMPORARY** 

## **NOTES TO THE FINANCIAL STATEMENTS** 

## _**FOR THE YEAR ENDED 31 MARCH 2023**_ 

## **17 Restricted funds (continued)** 

## _Digital Projects_ 

Bloomberg Philanthropies supported the gallery to deliver two digital initiatives. Firstly, it supported the gallery to join its mobile platform, Bloomberg Connects. Through this, the gallery has created its first ever digital guide for visitors. Secondly, it supported the gallery to take part in its Digital Accelerator Programme. With their support, the gallery is procuring and implementing a new CRM and ticketing system. 

## _Foyle Foundation_ 

Support towards digital transformation project to develop a new approach to engaging and communicating with people, including staff, trustees, audiences, participants, customers (for the shop, café and venue hire) and donors. 

## _Clore Duffield Foundation_ 

Clore Duffield Foundation supported the gallery in its 'Warm Bank' initative for the 2022/23 Winter to help households facing soaring energy bills. 

## _Transfer between funds_ 

Transfers relate to projects which are now completed where costs were incorrectly allocated to unrestricted in prior year or incorrectly allocated to restricted expenditure and income that funders have now stated can be unrestricted. 

|**18**<br>**Permanent**<br>Catalyst Endowment Fund<br>Catalyst Endowment Fund<br>**2022 - Comparative**<br>**Permanent**<br>Catalyst Endowment Fund<br>**Expendable**<br>Catalyst Endowment Fund<br>**Endowment funds**<br>**2023 current**|**As at 1**<br>**April 2022**<br>**£**<br>2,926,454<br>20,312<br>2,946,766<br>**As at 1**<br>**April 2021**<br>**£**<br>2,825,831<br>209,029<br>3,034,860<br>|**Income**<br>**£**<br>-<br>65,755<br>65,755<br>**Income**<br>**£**<br>-<br>56,835<br>56,835|**Expenditure**<br>**£**<br>-<br>-<br>-<br>**Expenditure**<br>**£**<br>-<br>(48,839)<br>(48,839)|**(Loss) on**<br>**investments**<br>**£**<br>(274,040)<br>-<br>(274,040)<br>**Gain on**<br>**investments**<br>**£**<br>100,623<br>-<br>100,623|**Transfers**<br>**£**<br>-<br>(21,348)<br>(21,348)<br>**Transfers**<br>**£**<br>-<br>(196,713)<br>(196,713)|**As at 31**<br>**March 2023**<br>**£**<br>2,652,414<br>64,719<br>2,717,133<br>**As at 31**<br>**March 2022**<br>**£**<br>2,926,454<br>20,312<br>2,946,766|
|---|---|---|---|---|---|---|



## _Catalyst Endowment Fund_ 

Turner Contemporary has established the Catalyst Endowment Fund to provide an investment return to support commissions in the public realm, events outside the gallery, residency programmes and to support acquisitions in Kent. The permanent endowment fund must be kept for 25 years and only the income and capital growth from the investments can be spent during this period. 

## _Transfer between funds_ 

The Turner Contemporary Expendable Endowment Fund (EEF) is restricted for use only for “Endowment Purposes” which is defined as costs supporting commissions in the public realm, events outside the gallery, residency programmes and supporting acquisitions in Kent. No costs were incurred in the year for these purposes. In addition a transfer between the EEF and unrestricted funds has been done to agree to the carrying value of the investments on the Balance Sheet. 

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## **TURNER CONTEMPORARY** 

## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 MARCH 2023**_ 

|**19**<br>**Fixed assets**<br>**£**<br>Unrestricted funds<br>10,504<br>Designated funds<br>-<br>Restricted funds<br>-<br>Permanent Endowment funds<br>2,652,414<br>Expendable Endowment funds<br>64,719<br>Non-charitable funds<br>-<br>2,727,637<br>**2022 - Comparative**<br>**Fixed assets**<br>**£**<br>Unrestricted funds<br>29,412<br>Designated funds<br>-<br>Restricted funds<br>-<br>Permanent Endowment funds<br>2,926,454<br>Expendable Endowment funds<br>20,312<br>Non-charitable funds<br>-<br>2,976,178<br>**20 Commitments under operating leases**<br>Within one year<br>Between two and five years<br>**21 Reconciliation of net expenditure to net cash flow from operating**<br>**Group**<br>Net expenditure for year<br>Non-cash movements on fixed asset investments<br>Depreciation and impairment of tangible fixed assets<br>(Increase)/decrease in stocks<br>Decrease/(increase) in debtors<br>Increase in creditors<br>Net cash flow from operating activities<br>**Analysis of net assets**<br>**between funds - 2023 -**|**Net current**<br>**assets**<br>**Total**<br>**£**<br>**£**<br>391,485<br>401,989<br>95,000<br>95,000<br>512,137<br>512,137<br>-<br>2,652,414<br>-<br>64,719<br>182,111<br>182,111<br>1,180,733<br>3,908,370<br>**Net current**<br>**assets**<br>**Total**<br>**£**<br>**£**<br>707,196<br>736,608<br>-<br>-<br>218,239<br>218,239<br>-<br>2,926,454<br>-<br>20,312<br>100,855<br>100,855<br>1,026,290<br>4,002,468<br>**2023**<br>**2022**<br>**£**<br>**£**<br>4,176<br>7,622<br>6,510<br>13,215<br>10,686<br>20,837<br>**activities**<br>**2022**<br>**2021**<br>**£**<br>**£**<br>(94,099)<br>(418,540)<br>274,040<br>(100,623)<br>18,908<br>23,136<br>5,362<br>(10,628)<br>(132,618)<br>68,722<br>76,454<br>182,313<br>148,047<br>(255,620)<br>**Group**|
|---|---|



## **22 Related party transactions** 

During the year, £11,810 (2022: £6,397) was donated to Turner Contemporary by 14 (2022: 8) trustees. Each individual donation was not material to either party. 

Sir Stephen Deuchar, a trustee is also a trustee of Creative Folkestone. A grant of £135,131 was awarded by Creative Folkestone to Turner Contemporary during 2021/22. 

## **23 Company limited by guarantee** 

The company is a company limited by guarantee. The members of the company are the trustees named on page 1. 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. 

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