Docusign EnvÈlope ID." 2D402DC5-DC3PAD8fA3A4-CF9gM8395FO Comparry Registratior) No. 07113861 Registered Charity No. 1138117 THE HEPWORTH WAKEFIELD REPORT AND FINANCIAL STATEMENTS for the year ended 31 March 2023 Docusign EnvÈlope ID." 2D402DC5-DC3PAD8fA3A4-CF9gM8395FO The Hepworth Wakefield OFFICERS AND PROFESSIONAL ADVISERS DIREcfoRS AND TRUSTEES THE DIRECTORS OF THE CHARITABLE COMPANY ITrIE CHARITYI ARE ITS TRUSTEES FOR THE PURPOSE OF CHARITY LAW. THE TRUSTEES AND OFFICERS SERVING DURING THE YEAR AND SINCE THE YEAR END WERE AS FOLLOWS.. KEY MANAGEMENT PERSONNEL OF THE HEPWORTH WAKEFIELD.. TRUSTEES AND DIRECTORS: Steve Langan lappointed Chaif l July 20221 Stuart Fletcher Ilnierim Chair 10 30 June 20221 Diane Howse Priya Khanchandani Henry Meyric Hughes Dame Ma8dalene Odundo Andrew Haigh (resigned 31 Oecember 20221 Merran M£Crae IrèsignÈd 6 Fèbruary 20231 J3ne Madeley Iresbgned 16 Fèbruary 20231 KEY MANAGEMENT PERSONNELOFTHE HEPWORTH WAKEFIELD: SENIOR MANAGEMENTTEAM Da1￿ management of the charity's actiwiies is delegated by ihe trustees to the senior management team which 15 comprised of the following- Slmon Wallis IDire¢torl Olivia Colling (Oeputy Director) Nicola Freeman {Dire￿Or of Engagement & LeafflinB- resigned May 20221 Andrew Bonacina IHead of CollecThons & Exhibitions- resigned May 20221 Vicii Kirkpairick Ilnterim Head ol Finance- reygned May 20221 David Bryan IDirector of Finan￿ & Operations- appM)inted May 20221 Laura Smith (Director ol Collections & EMhikntions- appointed September 20221 Rosie Ripley IHead of Cornmerciall Victoria Boome (Head of Learning) James Baxtèr (Head of Communications) Eleanor Clayton Isenitsr Curatorl COMPANY SECRETARY Simon Wallis REGISTERED OFFICE Gallery Walk Wakefield. WFI SAW BANKERS The Co-operative Bank 8 Providence Street Wakelield West Yorkshlre. WFI 3BG Docusign EnvÈlope ID." 2D402DC5-DC3PAD8fA3A4-CF9gM8395FO The Hepworth Wakefield OFFICERS AND PROFESSIONAL ADVISERS SOLICITORS Winckworth Sherwood Minerva House 5 Montague Close London, SEI 9B8 Jordans Solicitor5 18 King Street Wakefield, WFI 2SQ AUDITOR Saffery LLP Mitre House North Park Road Harrogaie. HGI SRX Docusign EnvÈlope ID." 2D402DC5-DC3PAD8fA3A4-CF9gM8395FO The Hepworth Wakefi'eld TRUSTEE'S REPORT TRUSTEES. R£PORT The trvstees. who are directors of the company. presÈDt their annual ￿port on the affairs of the company and the group, together with the financial statements and auditor's report for the year ended 31 March 2023. The 5rnall companies exempdon has been taken from preparing a Strategic Report. and the Trustees, report has bÈen prepared in accordance wth the piovi5ions applicable to companies subject to rhe small companies. re8ime. FOREWORD BY THE CHAIR This was thÈ first full year of operating since enforced closure of The Hepworth Wakefield durin8 the Covid-19 pandemic in 2020 and 2021. As such, there was a focus on rebuilding audiences and programme, in particular the learning programme and our lar8e-scale fairs and markets. It was a year of change, with a nurnber ol kev senior staff departing. We a150 e5tabli5hed a new staff structure and busirbess plan that responded to our new strategic priorities. and concentrated on gener3ting more of our own incomewhile continuingto be an important free resource for local families. We were deli8hted to have renewed our status a5 a National Portfolio Or8anisation {NPOI io deliver Arts Council England's Lets Cret7te strategy. with core lunding secured between April 2023 & March 2026. We also worked t105ely with Wakelield Council to updaie our Service Concession AgrÈement and secure core funding over ihe same period12023-20261. We are grateful to both Arts Council England and Wakefield Coun¢il for re¢tsgnisln8 rhe ambition and quality of what we deliver at The Hepworth Wakefi'eld for local communitie5 and vi51tors alike. Their funding gives us financial stability as we work our way out of a deficit budget over ihe next few years, caused by the pandemic. I would a150 like to thank all our other genefous supporter5 who enable our work, in particular The Liz & Terry Bramall Foundation, the Paul Hamlyn Foundarion and BurbÈrry Foundation who have all supported our learning programme for a number of years. Special thanks to all of our collecty.on circle, conternporary circle, patrons and members for their ongoing support and enthusiasm for our work. Thls was my first year as Chair of the Board of Trustees ￿ The Hepworth Wakefield. I would like to thaftk my tellow tiustees for the￿( support as I took on this important role and for generously volunteering their rime and experience to The Hepworth Wakefield Trust. Thanks particulèrty to Andrew Haigh. Jane Madeley and Merran Mccrae for their contribution during their temis of offi.ce prior to steppin8 down durin8 the year. I would like to thank the stsff and volunteers of The Hepworth Wakefield for welcoming me and for their commitment and continued pursuit of excellence and innovaiion that makes The Hepworth Wakefield such a special place. Do¢uS*Mdty'. O•ette 8F788F683DC541E. Steve Langan Chair of The Hepworih wakefi.eld Docusign EnvÈlope ID." 2D402DC5-DC3PAD8fA3A4-CF9gM8395FO The Hepworth Wakefield TRUSTEE'S REPORT DIRECTOR'S REPORT During 2022. we hnally were able to present major exhibitions. init6ally planned foi 2020. 1 would like to express our thanks to artists Sheila Hicks. Hannah Staikey and Jade Fadojurimi and the many generous lenders of works of art to ihese exhibitions for their flextbilily and understanding as we navigated Unpre￿de￿ted chalbenging periods of closure owing to the pandemic. I'd atso like io thank the artists, representative galleriesAlison lacques, Maureen Paley, Pippy Houldsworth and Gagosian for their support for these exhibition5. We have enjoyed our Borbara Hepworth." Art & Life emhhbition continuing Its highly successfvl UK tour to St Ives and Eastbourne. offering many more people the opportunity to experience the most ambitious and engaging exhibition on the artist in decades. We were de[￿hted io b¢ selerted by Iniwd as ihe gallery partner for the second year of their Future Collect programme. 5upporled by Art Fund. Arts Council England and Esmée Fairbairn Foundation. Thi5 three-year projeu offered an opportunity to ￿ think models for cownrni55ioning works foi public collections, ensuring that they a￿ reflective of our culturally diverse Socbety. The partnership enabled us to commission Yorkshire-based artist Emil Alrai to create a maior new work inspired by Wakefidé's collecrion and her own Iraqi heritage for display at the gallery. A section of this large instsllation was acquired into the collection with additional support from Henry Moore Foundation and Art Fund. The partnership also offered a year-lonB, paid curatorial tr3ineÈ P05t to support skills development and provide hands-on curatorial experience for an individual ol African and Dr A￿3￿ descent. It was rewarding to seethe po5t-hvlder. Amber Li go on to secure a permanent role a5 A551Starbt Cuiator fole at the 8arbican. We continued to develop Wakefield's art colletD"on with many new acquisin.ons donated or secured ihrough fundraising to fill in historic gaps in the collection. maintainine the forward-thinking policy of nurturin8 contemporary talent that was forged in the 1930s_ In 2022123 gifts include a lar8e-sc3le fresco paintin8 by R05ie Ha5tings & Hannah Quinlan, 8ifted by Russell Tovey through ihe Contemporary Art Society, an oil paintin8 by Sarah Ball through a generou5 donaiion from Gre8 & Awa Shannon and with thank5 to Stephen Friedrnan Gallery and a photographic work by Jimmy Robert, given by Thomas Dane Gallery. There ha5 been a focu5 on our ceramics collection this year. enabled in part through Art Fund's New Collecting Award. with works by Betty Blandino. Siddig EYNigDurwbi. Ursula Morley-Price. William Staite Murray and Angus Suttie jDining the collection. This in turn has led to many generous gift5 and donation5 of cerdmics. including an irnportant multi-piece work by Gwyn Hanssen Pigott and a number ot innovarive works by Ryoji Kole made possible through donations from Christopher Gorman-Evans and Erskine Hall and a large moon jar by Akiko Hirari. given by jonathan Anderson. Bequests include a group of Ewen Henderson works gNen by Roger Morsley-smith and a substantial group of contemporary ceramics including works by Sara Ftynn and Jennifer Lee 8Nen by Hugh 8ri8Stocke. We were also delighted to be 8ifted a collection of 20".century ceramics by Gilbert Ross. which include work5 by Hans Coper. Elizabeth Fritsch and Lucie Rie. The generosity of ihese indivbduals ensures Wakelield's collection continue5 to be an irnportant and acce55ible pU￿1C resource for Modern British art, conlempgraiy art and studio ceramics. A highlighi ol the year was seeing the large numbeis of s¢hoo1 ¢hildren we are used to hosting in the galleries and learnirbg 5tudi95 returning a5 Covid-related restriction5 were lifted and we were able lo reinstate oui lull offer for schools. With support from Waketield Counul. the leaining team rnn engagement workshops at events across Wakelield District io help build back our lo(èl audiences and we welcomed over l.(KIO people on National Play Day to take part in lamily activities in ihe garden and across the galleries. In the winter. we offered one of our learning studios as a drop-in warm Spa￿ to support local peop￿ struggling wilh the cost of living crisis. Docusign EnvÈlope ID." 2D402DC5-DC3PAD8fA3A4-CF9gM8395FO The Hepworth Wakefield TRUSTEE'S REPORT We were also delighted to welcome the first Tesident5 and bu￿￿esSeS Ynoving into Tileyard North. the restored Victorian mill complex with which we Sha￿ oui waterfront site and to work with the Tileyard teèm to present the first large.scale events in their refurbished event space. ¥￿th our Festive Marketweekends. The markets were very well attended and we are grateful to W3kelield Council for a grant that enabled us to commission Illuminos to create a bespoke projection for the l￿deS ofthe gallery. creating an evening spectacle across both weekends as part of Wakefield's Light Up. The continued regeneration of Wakefield Waterfront, the Efowing collection and the returning visitors are all a ¢rtdit to the arnbilfous and high-quality work we conystenlty strive to deliver every day at The Hepworth Wakefield. The team can b¢ hugely proud of our collectwe effort and success. We are fortunate to have secured 5teadlast investrnent from Arts Council Engbnd and Wakefield Council to enable y) much of what we achieve. Wè've also ￿Tretitted from 3ttrathn8 so many 8enerous trusts. foundations and philanthropic individuals to help us thrive. They all understand the superb v4lue of their investment and the positive change it brings to people's lives ènd the cultural life of Wakeffield. Yorkshire and the UK. I would like to thank all of my colleagues at The Hepworth Wakefield. including our team ol volunteers. for their continued dedication to engaging wide audien￿5 Wlth art in imaginative ways. I WDuld also like to offer my personal thanks to the Board ol Trusiees for their commitment and support and in pariicular. to our new Chair, Steve Lan8an and out8oin8 interim Chair, Stuart Fletcher for their support. enihusiasm and guidance. They enable us to thrive. Simon Wallis Direcior of The Hepworth Wakefidd Docusign EnvÈlope ID." 2D402DC5-DC3PAD8fA3A4-CF9gM8395FO The Hepworth Wakefield TRUSTEE'S REPORT OBJECTIVES The Hepworth Wakeffeld provides a permaneftt public legacy for 8aTbara Hepworth in her home city, with exhibition5 that respond to and reflect the unique qualities of the Wakefield Permanent Art Collection, alongside The Hepworth Famity Glft on pemianent displav. Our David Chipperfield desiBned building embodies many sculptural qualitres and provides some of the finest spaces in the world in which to experience art. The building is a lestsment to the ambition of Wakeheld and the relationship between the architecture, the works of art we display and our Strong sense of pla¢e is a unique part of the experience of our pro8ramme. Modern15t Sculpture and the proces5 of creativity are central to our offer. as is the influence ol the Yorkshire lartdst3pe on modern art. Our programmÈ strNeS to ensure that we present the best in modern and ¢ont£mporary art from all over the world. We ￿nt to ensu￿ that the presentation of this work is accessible and provides an engaging dialogue for a wide. diverse audience. so that the past and present inform one arhother in a compelling wav. Our work is enhanced through our Yorkshire Sculpture International partnership comprising The Hepworth Wakelield, Yorkshire Sculpture Pork, The Henry Moore Institute and Leed5 Art Gallery. Together WÈ work to be rètognised as onè of the major world cÈntres lor the rèsÈarch. presentstion and public understandine of Sculpture. We use the le8acy of Yorkshire born Barbara Hepworth and Henry Moore as the basis of our offer. We are always clearly giounded in our area of expertise but activety respond to changin8 local and national agendas through new partnerships to ensure our work is con%stentty relevant to our audiences and the wider art world. Our work with major stakeholders Wakelidd Metropolitan District Council and the Arts Councll England is central to what we do and we aim to closely follow their priorities and 38end35 to sutcessfully delbver mutually agreed strategic outcomes. In 5h3ping our objective5 for the year and planning our activities. the irustees have considered the Charity Comfflission's guidance on public beneht. includingthe guidance'public benetit= nJnning 3 chariiy IP821'. We rely on grants and donations as well as incomè from charitable ènd tiading athvities ihrough the subsidiary companv. Afft)rdability and acce55 to the gallery and wider activities is irnportant to us and is reflected in the pricing of entry to the gallery and offering free access to all residents of Wakefield District and those aged under 18. l. Mission Our Mission is to create art experiences that inspire, captivate. Surprise and enhance everyone'5 live5. 2. Vision We wanl to be recogni5ed as one of the world's leading art gallerie5. creating unforgett3ble art experiences for all, while inspiring positive change locally. 3. Values These 3re the value5 that we bel￿ in: Embrace innovaiion: From the way we work with colleagues and partners. to h¢)w we present DUI collections and exhibitions in an ever-changingworld, we're always exploring new ways to innovaie. Art doesn't stand still. Nor do we. Docusign EnvÈlope ID." 2D402DC5-DC3PAD8fA3A4-CF9gM8395FO The Hepworth Wakefield TRUSTEE'S REPORT 8e bold.. Our staff. our location. ovr building and our programming is all proof olhow ambitious we are. Relentle5s5y ernbrace this 5PITIt of adventure to chalknge ar￿ svfprise. We cteate irnpaci in everything we do to engage people in creative experiences. Be open.. 8eing open means we are inclusive. we collaborote freety and fairly. and are generous with our time and knowledge. We are welcoming and make the experiences we offer accessible to everyone. Quality matters.. We strive to achieveihe highest P0S5ible quality. Everyone has a role to play in ènsuring that excellence run5 throu8h every aspect of our work. The charity's purp05e5 and object5 a￿ detailed under Structure. Governance and Management,. below. ACTIVITIES. ACHIEVEMENTS & PERFORMANCE IN 2022n3 'The Hepworth Wokefield, perched obove its weir consistentfy punches obove its weight." greL7t exhibit￿n5 ¢levercurJtion, top-notch gift shop., Laura Freeman, The Times Iseptember 20221 Exhibltlon Progrdmme The Hepworth Wakefield tontinues to developa nationally and internationally recognised exhibition programme. which 5ucce55fully CDmbines major historical exhibition5Wlth support fordiver5e CDntemporary artists. including new commissions. In addition to exhibitions presented at The Hepworth Wakefield we are growing our national and international touring programme Sheila Hick5'. Off Grid 7April-25 September 2022 Drawin8 together over 70 works frtsm international publi¢ and pr￿￿te c¢lle¢ttons. this rnajor exhibilfion explored the many facets of Shwla Hicks. work. from her earliest piece5 made in the 19505 to new sitEspeeithc commissions made lor the exhibition. Hitks Ib. Nebraska. USA. 19341 is one ol the world's foremost artists investigating colour and form. Her work ranges from small woven explorations created on a hand-held frame to large-scale installations that lill spaces with voluminous fomi and vibrarbt cobur. The exhibition included a specially commissw)ned work for The Hepworth Wakeheld Garden, Gobriel Reoching for Heoven, 2022, which was a tsll column of weather-resistsnt colouied chords. At the exhibition opening, Hicks was 8iven a Lifetime Achievement Award by the International Sculpture Centre. ExhibitM)n 9enerou51y 5UPPOrted by Alison Jocque5,' Jay Fronke & Dovid Herro,. The Goudio Fomity Foundotion,. Henry Moore Fourtdott"on,' The Roden Fomffly,. and those who wish to remoin ontsrtymous Press coverage The eytensive international. national and local p￿$ campaign forthe exhibiiion and book had the editorial value equivalent ol over £17m wilh a ioial circvlation of 857.646.1(*. 'To step into on exhitstion in which monumentolcreotions dongle, heop, 5prowl ond spillis lo realise ut once thot she understond5 how to make o visuol impre55ion... She travels the world. delving into the histories Df troditt'onjl textiles and then confrct5 something radic¢71. She restlessly tests the boundgrie5 of thef￿nCt￿n￿1Urtd the oe5thetic. Her worksfeel 05 deepty infvrn?ed by documentedfocts os by per5(muIAeeling5. All thi5 15 knotted and woven. ploited ond burtched. overlord ond looperj inro wetes in which troditton ond high tech, o reverence for croftsmonshFp ond o rodicol ambiTron come tO9ether. Rachel Campbell.Johnston. The Times (April 20221 Docusign EnvÈlope ID." 2D402DC5-DC3PAD8fA3A4-CF9gM8395FO The Hepworth Wakefield TRUSTEE'S REPORT Emil Alrai.. A Core of Scar- Future colle￿ ComrnIs￿I1n 7April-4 Septembei 2022 Local arrisi, Emil Alrai Ib. 19931 presenied a new commission as part of our partnership with iniva and the Future Collect programme. The commis&on comprised 3 series of hand-bbwn glass vessels displayed on a dramatic landscape inspired by the gorges and scars depicted in Wakeheld's collection of historic Yorkshire landscape5. Alrai's commission investi8ate5 the physical markers of the past. weaving together body. landscape and objeci as sites of memory. Future Collect 15 SUPPOrted by Art Fund, Art5 Councffl England and Esmee Foirboirn Found(Jtion. Henry Moore Foundorion ond Art Fundsupported the ocquisit￿n of o secrion of the work into Wokefield's ort collecrion. Piess coverage ..she doesn't ¥vont to tell the some oldstones through the someforms.. she vlonts ond needs to tell new stories the Stories of migrt7tion ond diowro in 8rituin today'_ Sculpture Magazine. May 2022. ladé Fado utimi-. Can we see the colour 16 Sept8mbÈr2022- 19 Mttrth 2023 An exhibition of new works by youn8 British artist, Jadé Fadojutrmi Ib.19931, induding the largest works She has created to date made in re5PDnse to the scale and architectural qualities of the galleries. reen because we have a name for it? Exhibiiion generousty supported ty Gogosion. Golerie Giselo Copitoin. Toko Ishii Gollery ond The Hepworth Wakefvld Contemporory tircle. Press covera8e 'Jode Fodojutimi s collection of pginting5 overspill with hope. joy. light and mischief. These enorniou5 work5 5lt within the quiet gffjce of The Hepworth Wakefvlds gt711erie5 for the om5t5 first mujor UK rnstrtutlonol presentoTr"on.' Lauren Dei. Frieie (October 20221 Hannah Starke In Real ￿"fe 21 October 2022- 1 Moy 2023 The lirst major survey of British photographer Hannah Starkey. tracing the development of her work across two decades. Throughout hercareer, Starkey's meticuloustychoreoeraphed photographshave determinedly engaged with how women are represented in contemporary cutture. Starkey reveals women in moments of privale reflection, alienation or SDcial interaction that mieht otherwise go unseen. Meanwhile, the lar8e scale of hef image5 su88est the recordin8 of a monumentsl event. On display were photograph5 from Starkey's graduatlon show in 1997 that immediately brought herwidespread acclaim. through to a newly commissioned body of work created with young wornen in wakeh.eld in 2022. Exhibition mode possible by the FrÉÈlonds Foundtstron thmugh the 2019 Freelonds Aword. Withfurther support from Moureen Poley, Artscopodes ¢7ndS00 Hitchin ond speciol thonks ro deliverypartners CAPA College ond rhe Art House. Wokefield. Docusign EnvÈlope ID." 2D402DC5-DC3PAD8fA3A4-CF9gM8395FO The Hepworth Wakefield TRUSTEE'S REPORT Prèss coverage The press ¢ampaiBn for the exhibition reathed • total ¢ircul8rion of 737.993.240 with the ediiorial equivaleni value IEVEI of E5.357.985. -Storkey's images U￿ painterly in scule ond execuilon. often showing the subjects lifesize ond olwoys corefulty composed... 'In Reol Life, highlights aloscinoting conts"nuity in her work o consrstenry of vision.~ Diane Smith, The Guardian Ioctober 20221 Collection Displays Prafulla Mohanti-. Full Circle 7April- 4 September 2022 Prafulla Mohanti's Ib. 1936, India) first exhibitlon was in Wakefield in 1964. as part of a show called Modern Art in York5hrre, which 5howca5ed 10 local artists. Around the same time, two of his work5 were acqtjired for Wakefield's art colleuion. marking the h.rst atqvisitt.on by a UK public Ballery. In 2022, these two paintings from the collect?on were shown alongside a range of his other W0￿S. spanninE six decades and exploring enduring morifs and ideas within the 3rtisYs body of work. When Dreams Confront Realit .. The Sherwin Collection 11 Morch 2022- 8Jonuory 2023 An exhibition drawn from the Sherwin Collection, arBuabfy the most important privatety-owned collection of British Surrealism, which has now found a permanent home at The Hepworth Wakefield. Presented with supportfrom the Poulmellon Centreforstudres in 8rrtish Art Into Abstractiot) 11 March 2022- 8Jonuory 2023 This exhibition explored how Barbara Hepworth and her contempornries turned to abstraction in order to develop a universal language of art that could transcend borders and contexts. This ethos was politically charged in the face of mounting global division and unrest in the lead up to the Second World War. On display were sculptures by Hepworth spanning 40 years. together with works by Ronald Moody, Henry Moore, Ben Nicholson, Winifred Nicholson and Naum Gabo to document the development of abstract art in Britain. It also included work by ¢ontemporèry arD"Sts to show the enduring opa¢ity for abstracriort to express human experiences and relationship5. With each other and the wodd around u5. A Livin Collection 11 Murch 2022- 8Jonuory 2023 An exhibition of new acquisitions into Wakefield's art collection mède over the p￿CedIng two years. Since Wakefield's collection was established in 1923. it has had an èlm of nurturing an understanding of contemporary an and its relarion io modern life. an aim continued by The HePW￿h Wakefield as we develop the collection. On display for the lirst time was a rnulti-media work by Alvaro Barrington- Em reclining sofo bed w/ Burberry pillow, 2021,. Phyllida eèrlow'5 monumental sculpture RIG.. untitled,- stagechoir5, 2011,. Sefanie Heinze brightly coloured composition Par0501 (STICK THEIR F 801). 2021,. Dana SchutZ'5 bron￿ Atlas. 2019 which mark5 the artist's move into sculpture- Halima Casell's wall-mounted Fon. 21x15 made in unglazed clay," and a painting by Cecity 8rown from 2019, Annoriol Mernent(J. io Docusign EnvÈlope ID." 2D402DC5-DC3PAD8fA3A4-CF9gM8395FO The Hepworth Wakefield TRUSTEE'S REPORT Public Programme Working in partneishipwith fileyafd North and theirnewevent space. wewere delighted to bring back our large- scale lairs and markets programme for ihe firsi rirne since 2019. starting with our Festive Market weekends126 & 27 November and 3 & 4 Oecember 20221. 1)¥er the two weekends. we hosted IS6 stalls by rnake￿ from all Dver the UK and welcomed 10,866 viytors. We worked wth artist Cait McEniff on a series of illustrations that were used as decals to decorate the site and across all marketin8 campaign. With support from Wakeh'eld Coyncil's Connecting Culture grants. we commissioned digital artists Illuminos to create a site-specific animated projection for the fapdes of the eallery facing into the garden. The ei8ht-minute spectacle explored the waterways and landscape of our West Yorkshire setting and was presented on a loop 4-7pm each Saturday to en¢ourage visitors to stay onsite later into the evening- Our Print Fairl25 & 26 March) brought togeiher67 stsllholders over one weekend and attracted 2.240 vi51tois. The fair was presented in Tileyard North's Carding Shed with drotFin print rnaking sessions in The Hèpworth Waketield's learning studios, art pods in thè 8allerTrÈs and half-price Èxhibilfon Èntry all wÈèkend. Visitor comments- . We travelled over from Teesside - well worth the trip. Great event and venue and we came home with some beautiful art for our home. Loved our morning at the @hepworthwakefiekl art fairl Filled our creative buckets, got some awesome art- nd had our family portraii dr3Wn. H4nds down one of the best prhnt fairs I've wsited. There's è gty)d mix of print methods. styles and price poinis. I don't thirbk anyone could go anil not h'nd 50meihing they love. Learning Programme Our Learning Prograrnme prornote5 the enjoyment. appreciation and understanding ofvisual art5 for the widest audience possible, many of whom have never previousty vi5iled a gallery or museum. Having re-rntroduced our families offer. in 2022 our focus was building back our bookable offer for schools and developing our outreach arbd comwnunity engagernent piogiarnme. This inc5uded our ptspulaf Dementia- friÈndly Crèative Calé, supported by W3kefield & Distrrct Health & Community Support and workshops with re5ident5 at Urban House connected to Emii ￿Tal.5 installation. The learning team also delivered a number of outreach projects at community events across the Thstrict. focused on creative play for local families and promoting the Iree dropqn offer available at the gallery. The outreach programme was made possible with Ihanks to Wakefield Council's Connecting Culture grant. We have a150 Started planning our School Prints engagement programme. svpported by EridEe Trust. In the summer term of 2023 we will work with 4 primary schools- Outwood Primary Academy Park Hill, Pinders Primary khogl. St Marfs CE Prirnary School and Sl Austin's Catholic Primary School in Wakefield- delivered in partnership with the Black Curriculum. li Docusign EnvÈlope ID." 2D402DC5-DC3PAD8fA3A4-CF9gM8395FO The Hepworth Wakefield TRUSTEE'S REPORT As part of the Hannah Starkey exhibition. the artist worked 7Mth u5 to deliver three learning projects.. 11 Mentoring programme ol a small number of Yorkshire-based female and non binary early-CaTeer art15ts working in photography. which led to a group exhibition ol their work at The Art Hovse in Wakefield entitled Refroming. Recloimftng. Durtng the progfamme. Starkey gave insight into her career as a practicing aitist ènd piovided critical feedback on the early-career photographers. portfolios. About the project. one participant. Joanne Coates. said.. "Hannoh Sturkey 5 work hg5 olwoys been g gregfinspir¢ition. Hoving the ort15t s WO￿ (ome to the North is bfilljont. As o working-c1055, low-income ortist, opportunities cun be hard. You uren'tuble t offord o moste￿. ormove to Lontlon ond work... those things would be impossible. You re often working os on ortlS¢ while workin9 Other jobs ond srruggling to get by. Where I'm bused is pretty 15olofed in fenn5 Of the qrts. When I alMJUt the progrumrne 5 enqfjgemenl brNnging together urtA5ts, 1 instontfy knew Ihud to oppty." 21 Workshops with teenage students attending Wakefield's peifomiing arts cOl￿ge. CAPA to explore StarkeV5 working proces5 Bnd i55ues around female representation. Building Dn this. Starkey photographed the students in venues they frequented around Wakefield, capturing 8 snapshot of their lives. This series of photographs, known as the Wokeftld Commission was the centrepiece for the exhibition and was used as the lead marketing image for Starke￿$ exhibition and cover of the accompanying book. One participating student said., ~Workin9 On this project wos so rewording. We colloboroted with on tsmL72in9 photogropher. Honnoh Starkey. in o supportive, Èmpoweiing ond wekoming environfflent. I loved working with Hqnnohl She hu5 such o refvshing outlook on o feminism ond photogrophy ondshe mt7de us 01150 proud of ourindividuolity." 31 An online resource for schools is being developed by The Hepworth Wakefield's learning team, Hannah Starkey. IDcal teaiher5 and key stage 3 student5 lo enable critical conversations around lilming and photographing yourself and others for online platforms. intluding Social media. This will be released in the 2023124 academic year. Visitor Experience We are committed to delivering inspiring engagemeni with all our visitors. Ihrou8h our team of friendly, knowledgeable and helpful stafl. We were delighted to be awarded Gold by Visit England's Qualbty Assurance Scheme in 2022 for the 5Econd year running. It 15 the highest accola¢Se awarded to those who score highly in Èvery arèa Df thevisitor experience. Were also given oursecond Cool Brand Award forouroriginality, innovation. authenticity. desirability and responsibility. voied by an independent panel of 49 experts and influencers from lange ol field5 frorn technology to f35hion and fvom beauty to health. People We have continved to invest in the skills development of our people. particularly focusing on acce55 and inclvsion training. 12 Docusign EnvÈlope ID." 2D402DC5-DC3PAD8fA3A4-CF9gM8395FO The Hepworth Wakefield TRUSTEE'S REPORT Supportèrs We would like to sincerely thank all our many generous supporters, including all our many Mernber5. MAJOR DONORS Art Fund Bloomberg Philanthropies Ronnie Ouncan Henry Moore Foundation The Liz and Terry 8ramall Foundation Professor Griselda Pollock The Ronald Moody Trust Gilbert and Pauline Ross Tim Sayer and Annemarie NDrton The Sherwin Familv Russell Tovey Cathy Wills SUPPORTERS Patricia Nichol Barnes Cot)temporary Art Societv Creative Minds . south West Yorkshire NHS Foundation Trust Erid8e Trust Er5kine, Hall & Coe Christopher Gorman-Evans The Hepworth Estate Ofenheim Charitable Trust Paul Mellon Centre for Studies in British Art The Richard Baiterham Estate Wakefield and Oistrict Health and Cornmufiity Support CORPORATE SUPPORTERS G. Fsmith Grand Central Rail SMH lolliffe Cork Jordans Solicitors Mtec Oulton Hall Trinity Walk THE COLLECTION CIRCLE Jeremy and Martine Burton Stuart and Trish Fletcher Jay Franke and David Herro Gagosian Steve and Clare Langan Clive and Virginia Uoyd Alice Rawsthorn THE CONTEMPORARY CIRCLE Carol Atack and Alex van Someren 13 Docusign EnvÈlope ID." 2D402DC5-DC3PAD8fA3A4-CF9gM8395FO The Hepworth Wakefield TRUSTEE'S REPORT Sir Michael cra￿-martIn CBE RA Thomas DanÈGallery Pippy Hould5WQrth Gallery Efflily King and Matthew Slotover Christopher Kneale PATRONS Sophie Bowness Richard Oonner Wayne Ewarl Crjlin Fine lane and Alan Foale Sir Charles Forbes Adam Bt. OBE and Lady Rosalind Forbes Adam Willoughby Gerrish and Daisy Bell Andrew Haigh Alexander and Hilary Hume David Markham Philip and Val Marsden DÈbbie Melton Mick and Simon Terry Bacon Jon and Helen Riddle RinEO and Tania Scheithauer Karen Smith Mark Srorey and Carey Adina Karmel Jonathan Straight Emily Thomas Peler Woods MèE and Frarbtis Ayan And all those who wish to remain anonymous. Comme￿Ial Actlvlty Our trading subsidiary. Hepworth Wakefield Enterprises comprising the Shop, Cale and Venue Hire businèsses continued to generate sustainable streams of revenue for the Charity under the guidance ol the Enterprises Board. Fundraisinz Thè Hepworth Wakefield has a deditatèd team ot staff within the DevÈloprnent Team that focus on generaring exltrnal funding from established chèritsble trusts and foundats"ons. corporate businesses and individuals. These fund5 contribute signihcantly to the running of the gallery including throvgh SUPPDII of exhibitions. provision of leaining prograwnwnes and upkeep of the collects"on. 14 Docusign EnvÈlope ID." 2D402DC5-DC3PAD8fA3A4-CF9gM8395FO The Hepworth Wakefield TRUSTEE'S REPORT Garden The Hepworth Wakefield Garden has matured beautifully and become an important part ol civic lifè for rèsidents of Wakefield. We invited a number of architects to propose a design for the much needed garden work5hgp and vard to enable the Cultural Gardener to more efficiently carry out the care needed for the garden to continue to thrive. as well as fulfil our ambition for further cornmunity engagement in the garden and themes ol biodiversitv and environment. An architect has been chosen and work is underway to refine the design ahead ol applying for planning peimission and launching a fundiaising campaign. FINANCIAL REVIEW The consolidated statement of tinanaal aaivities lor 2022123 shows a net deficit of funds for the year of £190,830. As a result, consolidated net assets within the statement of financial position are rbow £4,167,424. The Hepworth Wakeileld's main sovrces of income include fvndin8 fvorn centTrl government, through Arts Council England's National Portfolio. and service thar8e income from WMOC. Together. these source5 Cotnprised 46% of total consolidated income foi the year. The gallery continues to generate a s￿ni￿"(ant proportion of its own income through trust grants. donations. and increasingly. through its earned income from ticket sales to non-WMDC visitors. retail. catering and commercial hire of rooms and spaces lor events. The cultural sector continues to experience the impact of a wider economic downturn. with public fLtnding reduced and visitors becoming more cost conscioys. However. The Hepworth Wakefield ha5 5eEuTed renewed funding from WMDC and Arts Council and has been irtnovative and eftt￿prenevria1 in sustaining and increasin8 secondary spend from visitors. Costs continue to be closely monitored to ensu￿ that efficiencies are made when idenrified and purchasing 15 done in an efficient manner across the or8anisation. Re5erve5 Pdiry The Hèpworth Wakefi"Èld. with it5 cornplex actiwties and structures, needs to take into accouni a broad rar)ge of factors in its reserves policy. It operates a public service spa¢e and has substanti31 public liabilities in doing so. It engages in trading or providing good5 orservices under iontract. forexample by operatr'ng the gallery, delivering learning programmes to lormal learning institutions and corporate hire services to external business clients. It holds a number of restricted funds. employs d1￿clIV and indirectty a substantial number of staff and has a lon8- term lease on a building complex. from which it operates a trading subsidiary. The Hepworth Wakefield's reserves policy is a product ol stralegic planning. budgeting and risk management processes. These proresse5 provide trustees with the information they need to establish ewtly why they might need reserve5 and to help them quantify ihat need. For example. identified financial risks will inform both budgeting and the reserves policy. At the outset and based on advice and guidance from thaitty 13W professionals. it was determined that the charity should operate within ihe convention established and recommended by the Charity Commission for large complex undertakings. The total f￿e reserves are E2.099.725. Is Docusign EnvÈlope ID." 2D402DC5-DC3PAD8fA3A4-CF9gM8395FO The Hepworth Wakefield TRUSTEE'S REPORT The policy of the charity 15 to hgld re5erve5 to cover 6 months operating co5t5 which 15 currently estsm&ted at £1.287.889. The 6 months operating cost5 target is intended to enable u5 to successfully 'trade through. anv potential crisis or adver￿tY that may interrupt operations for that period. or deal with other crises that may be similar in scale to that. The balance between free reserves and funds held as 6 months operaiional cosis is invested with a funds manager and the Trusiees regular￿ review this portfolio with a view to ensuring its performance delivers positr.ve returns in support of the charit￿$ objectives in line with a lowlmedium risk strategy. FUTURE PLANS In 2023124, The Hepworth Wakelield's strategic pr￿TItIeS are to.. Continue to rebuild and expand onsite audiences, while developing ￿ative digital engagernent with audiences worldwide_ Focus on financial sustainability. tyevelop new income st￿aMS and partnerships and smarter ways of working to find efficiencies and reduce our financial deficit. Continue to rebuild a financial￿ sustainable leaining programme under the umbrella of 'Creative Futures,. Embed environmental sustainability across all our work to deliver our ambition to achieve carbon neutrality. Continue to diversify our collection, pro8ramme. audience, staff & trustees. Deliver capital and infrastrutture projects needed foi bng-term efficiencies and eflective performance. Continue to strategically build Wakefield's art colthion. Invest in board and siaff developmeni to continue to build a high￿ effective and committed team that it at the forefroni of creativity and innovation. STRucfuRE. GOVERNANCE AND MANAGEMEMT Governing document The Hepworth wakefi.eld is a company limited by Buarantee. intorporated in the Uniied Kingdom. and is governed by its Memorandum and Articles of Association daied 23 December 2W9. In the event of the company being wound up. members are required io contribute an amount noi exceeding £1. Recruitment and appointment ot new Irvstee5 As set out in the Articles of Associakn'on. the Board ol trustees shall consist ol be￿een two and fifteen trustees. The trustee5are appointed bythe chair ol the Board, who isappointed by a selection Board comprised of primarv stakeholder5, Art5 Council England IACEI and WMOC. the Local Avthority partner, aided by independenl panel members. Trustees are appoinred by the Board to serve for an iThiti31 term of three years from incorporation of the charitv or the Annual General Meetin& al which they were appoirbted. as applicab￿. Thereafter each trustee tnay be reappointed for 3 further term ol three years. and thereafter on an annual basis. Inductlon and trainlng of new Irustees New trustees receive a trustees, information pack and a￿ briefed on their legal obligations under charity and company law, the content of the Memorandum and Artides of Association, the committee and the decision making piocesses. the business plan and recent financial performance of the ¢harity. Trustees are en¢ouraged io attend appropriate exteinal training events where these will facilitate the undertaking of their role. 16 Docusign EnvÈlope ID." 2D402DC5-DC3PAD8fA3A4-CF9gM8395FO The Hepworth Wakefield TRUSTEE'S REPORT Ofganisational structure The Board ol trustees meets four fimes a year. The￿ are also th￿e subcommittees with delegated authority, Finance and Perlormance (including Audit). Remuneration. and Collecrions and Acquisitions. The day-to-dav operarions of the charity are delegated to the Gallery Director and Senior Management Team. Related parties None ol the trustees receives remuneration or other benefit from their work with the charity, with ihe exception of reirnbursement of travel and accommodation expenses incurred in connection with their work. Any links with potentiol related parties must be identified and disclosed to the Board of tr115tees and this is r￿l*Wed on a rè8¢Jlar basis. DeclaratSons of hntèrÈst are also disclosed and recorded. A registei is maintained of all related parDe5 to rnonitor for any a550ciated risks or conflirt5 of interest that may arise. Pay pollryfor senlor staff The directors consider the board of directors. who are the Trsjrt's irustees. and the senior management team comprise the key management personnel of the charity in charge of directing and controlling, running and operating the Trust on a day-to-day basis. All trustees give of their time freely and no trustèÈ rèceived remuneration in the year. Details of trusiees and directors. expense5 and related party transactions are disclosed in note 8 and note 28 to the accounts. The pay ol the sÈnior stsff is r￿l*Wed annually and nomially increased in accordance with average earnings and afftjrdability. In view of the nature of the ¢harity. the dirrftois benchmatk against pay levels in other galleries of a similar size run on a voluntary ba￿5. If recruitment has proven dithcult in the recent past a market addition is also paid with the pay maximum no greater than the hydhest benchmarked salary for a comparable role. Risk mana8ement The trustees have a risk management strategy which comprises: - Compila)on of an annual schedule of the risks the charity may face- - The est3blishrnent of 5yStem5 and prO￿dureS to mtiigate those iisk5 identified In the plan- - The implementatfon of procèdures de￿gned to minimise any potential impact on the charity should those risks materialise.. Regular ￿VIeW of risks.. - A policy of adoptin8 an atbtude of low risk in all strate8ie& A key element in the management of financial risk is the setting of a re5erve5 policy and its regular reviÈw by thè trustees. The principal risk5 and yncertaintie5 identified and recogni5ed on the organi5ation'5 risk iegi5ter include-. - The ongoing irnpact of Covid 19 pandemic on rebuilding audience5 and deliveiing future business plans. - The uncertainty around the tSmetablè and programme for development of ihe wider waterfront site. includin8 the opening ol Tileyard North and reinstatement of the playgiound.. - The impact ol ihe 'cosi of living. crisis llegatively affecDng the return of audiences and related business plan. - Changes in administration or strategic policy at major fvnde¥s WMOC or ACE. 17 Docusign EnvÈlope ID." 2D402DC5-DC3PAD8fA3A4-CF9gM8395FO The Hepworth Wakefield TRUSTEE'S REPORT Oblects of the Trust The Charity's Objects are specifically restricted to the following.. to establish and maintain an art gallery for the benetit of the pu￿14 - the advancement of education of the public through the prowsion. mainienance antl suppori of The Hepworth Wakelield Gallery within Wakefield and its environs- to promote, maintain, improve and advance public education throueh the ca￿, mana8ement and display lor the public benefi't of.. The Hepworth Family Gift and The Waketheld Art Gallery Fine Art & Sculpture Collections linc. the Gott Collection)," and any other collertion5. 8roupin85, (lisplays or individual item5 from any other body which will promote the Objec15 of the charity- - the advancemènt of the educarion olthe public by the aid. establishment, funding. or sponsorship of bursaiies. scholaiships or grants to any person or persons. instiiution. associatlon or Corporate btydy for the purpose of furthering the Objecis of the charity.. and such other charitable Objects as the charily shall from time to time deteimine. An insurance policy is in place in respect of directors.. trusiees. and officers. liability. AUDITOR Saffery LLP have indicated their willinenessto be appointed auditors lor another term. PROVISION FOR SMALL COMPANIES This report has been prepared in accordance with the provisions applicable to companies entitled io the small companies exemprions. STATEMENT AS TO OISCLOSVRE OF IIIFORMATiof4 TO AUDITOR The trustees who were in offi'ce on the date of approval of these hnancial statements have conhrmed, a5 far as they are aware, that there is no relwdnt audit inforrnation of which the auditor is unaware. Each of the trustees have confirmed that they have taken 311 the steps that they ought to have laken as director5 in order to Make themselves aware of any relevant audit irtformaifion and to establish that it has been ¢ommunicated to the auditor. The trustees in their capacity as direuors approve theJruStee￿ Report Do¢uSbJn•dty'. eFB83L￿5llE ngan Chair Date.. 14/09/2023 18 Docusign EnvÈlope ID." 2D402DC5-DC3PAD8fA3A4-CF9gM8395FO The Hepworth Wakefield STATEMENT OF TRUSTEES, RESPONSIBILITIES The charity trustees (who are also direcrors ol The Hepworth Wakefield for the purposes of company lawl ale responsible for preparing theTrustees' Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Stsndard5 Iunited Kingdom Generalty Accepted Accounting Pracrice}. Company law requires the trustees to prepare financial 513tements for each fi.nancial year which give a true and fair view of the state of affairs of the charitable company ar7d the group and of the incoming resources and application of rèsources. including the income and expenditLrre. of the charitable company and group for that period. In preparing these finanual statements. the trustees are required to.. - select suitable accounting polioes and ihen appty them consistently- observe the methods and principles in the Charities SORP IFRS1021' - make judgments and estimates that are reasonalAe and prudent.. - state whether applicable UK Accounting Standards have been followed- and prepare the financial ststements on the goine Concern basis u1￿¢$$ il is inappropriate to presume ihat the haritable company will wntinue tn bu5ine55. The trustÈes arè responsiblè for keeping adequate accounting records thai disclose with ieasonabte 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 2(M)6. They are also responsible for safeguarding the a55et5 of thè charitable company and ihe group and hence for takin8 reasonable steps for the preventSon and detection of fraud and other irregularities. The trustees are respDn5ible for the maintenante and integrity of the corporate and fi.nancial information included on the tharitable companws website. Lègislation in the United Kingdom governing the preparation and di55eminats.on of h"nanoal 5t4temenls may differ from ￿lsIatiOn in other jurisdiciion5. 19 Docusign EnvÈlope ID." 2D402DC5-DC3PAD8fA3A4-CF9gM8395FO The Hepworth Wakefield INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS AND TRUSTEES OF THE HEPWORTH WAKEFIELD Oplnion We have audited the financhal statemen15 of The Hepworth Wakefield Ithe'parent charitsble Company'l and Its subsidiaries Ithe 'group'l for ihe year ended 31 March 2023 which comprise Consolidated Ststement ol Financial Activities, Cony)lidated Statement of Financial Poytion. Ststernent of Financial Posiiion, Statement of Cash Flows and notes tothe financial statements. including significant actounting polities. Thè financial reporring framework that has bèèn applied in their preparation is appl*able law and Unitèd Kingdom Accounting Standards. including Financial Reporting Standard 102. the Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom General￿ Accepted Accounting Praclicel. In our opinion the financial statements.. give a true and fair view of the state of the affairs of the group and the parent charitable company as at 31 March 2023 and of the group's incoming resources and applicatfion of re50yrces, including its income and expenditure, for the year then ended,. • have been properly prepared in aCCord•n￿ with United Kir)gdom Generally Accepted Accounting Practice,. and • have been prepared in accordance with the requirements ol the Companies Act 2(KJ6. Basls for oplnlon We conducted ovr audit in accordance wth International Standards on Auditing IUKI IISA5 IUKII and applicable law. Our respons¢bilitie5 under those Stsndards Jre fvrtherdexribed in the Auditor's responsibilities for the audit of the financial ststements 5fftion of our report. We are independent of the group and parent charitable Eompany in accordance with the ethical requirernents that are relevant to our audlt ot the hnancial statements In the UK. Induding the FRC'S Ethical Standard. and we have fulfilled our other eihical responsibilities in accordance with these requirements. We believe ihat the audit evidence we have obtained is suffi'cient and appropriate to provide a basis for our opinion. Conclusions relating to going concern In auditing the financial statements. we have concluded th?t the trustee5' Use of the goin& concern basis of accounting in the preparation ol the financial statements is appropiiate. Based on ihe work we have peilormed. we have not identified any mateiial uncertainties relating to events or conditions that. individually 01 collectively. may cast significant doubt on the group or the parent charitable company's ability to continue as a going concern for a period of at least twelve months from when the linancial statements are authorised for issue. OUT responsibilities ond the responsibilities of the trustees with re5pert to Boing cOn￿rn are described in the relevant sections of this report. Other information The trustees are responsible for the other inlormaiion. The oiher infom)ation comprises the information included in the annual report. othei than the financial staiements anij our auditor's report ihereon. Our opinTron on the financial siatemenis does not cover the other infom)ation and. excepi to the extent otherwise explicitlv stated in our report. we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial 5tstements or our knowledge obtained in the course of the audit or 20 Docusign EnvÈlope ID." 2D402DC5-DC3PAD8fA3A4-CF9gM8395FO The Hepworth Wakefield INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS AND TRUSTEES OF THE HEPWORTH WAKEFIELD otherwise appears to be materialfy misstated. 11 we idenb'fy such material inconsistencies or apparent material mis5tatemen15, we are required to determine whether this gives rise to a material misstatement in the th"nancial staiefflents thernselves. If. b35ed on the work we have performed. we conclude that there is a material misstatemeni of this oiher information." we ale requiied to report that fact. We have nothing to report in this fegard. Other matters prescribed bythe Companles Art 2006 In our opinion, based on the work undertaken in the course of the avdTrt-. • the information 8iven in the Trustees. Annual Report which includes the Directors. Report for the financial year for which the financial statements are prepared 15 conslstenl with the financial statements.. and • the Trusiees. Annual Report which includes the Oiiectors. Report has been prepared in accordan￿ with pplicable legal requirements. Matters on which we are requlred to rwrt by ex¢wtioii In the light of the knowledge and undersianding of the group and ihe parent chariiable company and their enwronrnent obtained in the course of the audTrt, we have not identified material mi5Statement5 in the Trustee5' Annual RÈptsrt. We have nothing to ieport in respect ofthe following matter5wherethe Companie5Act 2006 require u5to ieport to you if. in our opinion- • adequale accounting records have not been kept by the parent charitslAe company, or returns adequate for our audit have not been received from branches not Msited by us- or the parent charitable company h'nancial staten￿ntS are not in 3greernent with the accounling records and returns.. or • certain disclosures of irustees. remuneration specified by law are not made- or • we have not received all the inlormarion and explanations we require for our audit.. or the trustees were noi entiiled to P￿pare the linancial sla￿Men1$ irb accordance with the small companies regime and to take advantage of the small companies exemption in preparing the Trustee5' Annual Report and the Strategic Report. Responsibl11￿*$ of truste¢s As explained more fully in the Statement of Trv5tee< Respon5ibilitie5 Set out on page 19. the trustees Iwho are also the direciors of the parent charitsble company for the purposes of company lawl are responsible for the preparation of the financial statements and for being satisfie(I that they give a true and lair view. and for such internal control as rhe trusiees deiermine is necessary to enable the p￿paranoTh ol the linancial statemenis that are free from material misstatement. whether due to fraud or error. In preparin8 the financial Statements, the trustees are responsible for assessing the group and the parent tharitable company'5 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 trustee5 either intend io liquidate the group or the parent charitable company or to cease opÈrat6ons. or have no realistft alternattve but to do so. 21 Docusign EnvÈlope ID." 2D402DC5-DC3PAD8fA3A4-CF9gM8395FO The Hepworth Wakefield INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS AND TRUSTEES OF THE HEPWORTH WAKEFIELO Auditor'5 responsibilities for the audit of the financial 5talements We have been apFK)inted as auditors under the Companhes Act 2CQ6 and ￿port in accordan¢e wilh regulations madè under thèt Act. Our objectives are to obtain reasonable assurance about whether the group and parent finaniial statements as a whole are flee Irom material misstatement. whether due to fraud or error. ènd io i55ue an auditor's report that inclvdes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAS IUKI will always deteci a maiefial misstatemeni when it exists. Misstatements an arise from fraud or error and are conydered material If. individually or in the aggregate, they could rÈasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud. are insiantes of non-compliance with law5 and reguL4tions. WÈ dèsign procedures in line with our respon￿bilItieS. ovtlined ab￿e. io detett material misstatemenis in respect of irregularities. including fraud. The specihc procedures for this engagement and the extent to which these are capable ol detecring irregularities. including fraud are detailed below. IdeDtlfyin8 and asse55inB risks related to Irre8ularilies: We a55e$5ed the suxeptibilily of the group and parent charitable company's hnancial statements to material misst3temÈnt and how fraud might occur. including through discv55ions with the trustees, discussions within our audit team planning meetin& updating ovr retord of intèmal ¢ontrols and ensurin8 thesÈ controls opèrated as inten(led. We evaluated pD55ible i￿￿￿￿"ve5 and opportunities for fraudulent manipulation of the fi.nancial statements. We identifted laws and regulations that ère of signific3nce in the contexi of the group and parent charitable company by discussions with trusteesand updating our understanding of the sector in which the group and parent charitable company operate. Laws and règulaifons of direct $18nifi"c3nce in thè context of the group 3nd parent charitable company include The Companie5 Art 2006 and guidance i$5ued by the Charity Commission for England and Wales. Audlt response to rSsks kjenlified: We considered the extent of compliance with ihese laws and regulations as part of our audit procedures on the related financial statement items induding a review of financial siètement disclosures. We reviewed the parent charitable company's records of breaches of laws and regularions. minutesof meetingsand correspondence with relevant authorithes to identify potential material misstatements arising. We discussed the parent charitsble company's policies and proce(Jures for compliance wr(h laws and regularions wilh members of management responsible lor compliance. During the planning meetjng with the audit team, the engagement partner drew attention to the key areas which might involve non-compliance with law5 and regulation5 or fraud. We enquired of management whether they were aware of any instances ol non-compliance with13ws and regulations 01 knowledge of any actual. suspected or alleged Iraud. We addressefl the risk of frèud through management override ol controls by tesn.ng the appropriateness of journal entries and identifying any ￿8Th1fi(ant iransactions that were unusual or outside ihe normal coufse of business. We a55e55Ed wheiher judgements made in making accounting estimaies gave rise to possible indication of managemeni bias. At the completion siage of the avdit. the engagement partner's review included ensvring that the team had approached their work wth appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud. 22 Docusign EnvÈlope ID." 2D402DC5-DC3PAD8fA3A4-CF9gM8395FO The Hepworth Wakefield INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS AND TRUSTEES OF THE HEPWORTH WAKEFIELD There are inherent Ilmrtations in the audit procedures described above and the furthef removed non.compliance with laws and regulations is from the e¥enis and transactions refiecteil in the financial staiements. the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud 15 higher than the risk of not detecting one resulting from error. as fraud may irniol¥e deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusK*n. A further description of our responsibilities is available on the Finanoal Reporting Council's wÈbsite at.. www.frc.org.uklavditorsresponsibilitie5. This de5criptton forms part of our auditor's report. Use of our report This rèport Is made solely to the parent charitable tompany's member5. as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audil work ha5 been undertaken 50 ihat we msght state to the parent charitable company's members those rnarters we are required to state to ihem in an auditor's report and for no other purpose. To the fullest extent pemitted by law. we do not accepi or assume responsibility to anyone other than the parent charitable company 3nd the parent charitable company's members as a body, for our audit work, for this report. or lor the opinions we have formed. I,fvJ Lle Sally Appleton15enior Statutory Auditorl lor and on behalf of Saffery LLP Chartered Accountants Statutory auditors Mitre Hovse North Park Road Harrogate. HGI 5RX Statutory Auditor5 7 Novèmbèr 2023 Date.. Saffery LLP is eligible to act as an auditor in terms of secbon 1212 of the Companies Act 2006 23 Docusign EnvÈlope ID." 2D402DC5-DC3PAD8fA3A4-CF9gM8395FO The Hepworth Wakefield CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING A CONSOLIDATED INCOME AND EXPENDITURE ACCOUNTI Year Ended 31 March 2023 ilnrestffkted Oeswbated funds Ile5tricted fund5 2023 Total funth 2023 Total funds 20ZZ ZO23 2023 Note Income and endowrnents frorn: Donat￿n5 and legac 88,194 267.361 355.555 338.186 Charr 1SS.9301 1543,8301 7,192 Transfer between funds 24 13.7941 3,794 Other recogni5ed gain5 and losses Artuarial gain on deh.ned benelit pension 27 353.( 353.oc 167.000 Net movement in funds for the ¥ear1138.6941 152.1361 1190,8301 174,192 Re¢onclll•tlon of funds Totsl funds brou8ht forward22.24 4.083,799 274.455 4,358.254 4.184,062 Total lund5 carried fon¥ard 22.24 3.945.105 222.319 4.167.424 4.358,254 All incoming resource5 and ie50urces e¥pended dertve from continuing acbvib"es. All gèinsand thses recognised in the current year and prior year a￿ included aboNE. The gwss income of the parent charity was £2.474.859 12022.. £5,448,049) and the incorne ie50urtr5weie £413.447 0￿goIng12022.. £204,116). 24 Docusign EnvÈlope ID." 2D402DC5-DC3PAD8fA3A4-CF9gM8395FO The Hepworth Wakefield CONSOLIDATED STATEMENT OF FINANCIAL POSITION 31 March 2023 CompaThy Rw'stratlon No. 07113861 Rezistered Charity trlo. 1138117 2023 2022 Flxed assets Tangible assets Investrnepiis 15 16 1,845.380 1.167.271 1.880,647 1.258.052 3.012.651 3.138.699 Current asseis Stocks Investments Debtor5 Cash ai bank and in hand 17 18 19 169.068 1.158 248.105 1.490.253 165.356 1.320 329.162 1.863,583 1.908.584 2.359.421 Liabllbt6es Credttors.. amounts falling due within one year 20 1753.8111 1824.8661 Net current assets 1.154.773 1.534,555 Total assets less current liablitie5 4.167.424 4,673.254 Credltors= arno￿t$ fall1￿ due after more than one year Provi5ion5 for liabilitse5 Delined benelit pension scheme liability 27 1315,C*JOI Total net assets 4.167.424 4.358.254 The fund5 ofthe charity Unrestricted lunds General funds Pension reserve 22 22 3.945.105 4.398.799 I315,￿J) 3.945.105 4.083.799 Designated fund5 Restricted income lund5 23 24 222,319 274.455 Total charlty tunds 4.167.424 4,358.254 The financial statement5 have been prepared Kcotdance to ihe provisions applicable to companies subject to the srvall cornpany regimè The fi"nantial siaternents on paees 24 to 64 were apprgved by the Board ol Trustees ènd authDiised for issuÈ kn4/09/2023 2023 and are si8ned on its behalf by= Steve Langan Do¢uSbJMdty'. Chair 25 Docusign EnvÈlope ID." 2D402DC5-DC3PAD8fA3A4-CF9gM8395FO The Hepworth Wakefield STATEMENT OF FINANCIAL POSITION 31 March 2023 Cijmpary Registratlon No. 07113861 egisteied Charity Nth 1138117 2022 Fixed assets Tangible assets Investments 15 16 285.809 1,167.271 226,354 I,258.053 1,453.080 1.484.407 Current assets Stocks Investments Debrors Cash at bank and in hand 17 18 19 1,158 502.113 829A63 1.320 455.087 L453.343 1,333.134 1.909.750 Llabilltles Creditors.. amounts falling due within one year 20 1349.1131 1427,9311 Net current assets 984.021 1.481,819 Total assets current liabilitle$ Credltots-. am￿￿t5 falllng (k In more than one year Provision5 for liabilitie5 2.437.101 2,966.226 Defined benelit pension scheme liabilitv 27 1315.0001 Net assets 2.437.101 2.651,226 Funds of the charlty VnrÈ5tricted funds General re5er¥e Pension reserve 22 22 2,214.782 2.691.771 1315.0001 2.214.782 2.376,771 DE518nated funds Restricted income funds 23 24 222.319 274,455 Total charity fund5 2.437.101 2.651.226 As permitted by Seclion 408 of the CtbtnpaniES Act 2(K6, the Statement of Finanrial Activitres of the parent Charfty is noi presented as part of those f nanoal statements. The Charity's gain for the year was deticit £214.12512022.- gain £204.1161. 26 Docusign EnvÈlope ID." 2D402DC5-DC3PAD8fA3A4-CF9gM8395FO The Hepworth Wakefield STATEMENT OF FINANCIAL POSITION 31 March 2023 Comparry Reeistra¥on No. 07113861 Ilegistered Charlty No. 1138117 The hn3nci315tstements have been prepared in accordance to the Proviyons applicable to companies subject to the 5rnall company regime. The hnancial statements on page$ 24 to 64 were approved by the Board of Trustees arnd authorised for issue on 14109/2023 and are Signed on its behall by.. Do¢uS*n•dty.' (•ette 877 FB831)C541E Steve fangan Chèir 27 Docusign EnvÈlope ID." 2D402DC5-DC3PAD8fA3A4-CF9gM8395FO The Hepworth Wakefield STATEMENT OF CASHFLOWS Year Ended 31 March 2023 Group Note 2023 2022 Net cash floTWS from operatinz artivities 29 274,412 813,218 InvestSn8 a¢tlvitles Returns un investment5 Purchase of tangible fixed as5et5 Proceeds from sale of investments Cash reinvested / (released from) within investment portfolio Purchase of investments 20.782 1119.4651 213.463 32.613 12S3.0431 17.656 113,7481 474.777 135.6751 1697,1611 Net cash used Sn Investlng acll¥itses 1105.6501 1254.1511 IDecreasel/lncrease in cash in the year Cash and cash equivalents al the beginnin8 of the year 1373.4921 1,864,903 559,067 1,305,836 Total cash and cash equivalents ai ihe end of thè yèar 29 1.491.411 1,864,9)3 28 Docusign EnvÈlope ID." 2D402DC5-DC3PAD8fA3A4-CF9gM8395FO The Hepworth Wakefield NOTES TO THE FINANCIAL STATEMENT Year Ended 31 March 2023 I. ACCOUNTING POLICIES CHARITY INFORMATION The Hepworth Wakelield is a company limited by guarantee domiciled and incorporated in England and Wales. The registered office is Gallery Walk, Wakelield. WFI SAW. The group consists ofThe Hepworth Wakefield and its svbsidiaries. The Hepworth Wakefidd Enterprises Limited (Company Re815tration Nvmber-075949641 and The Hepworth Wakefield Garden Trust IC¢mpany Re8lStrarion Number- 103831881. The Hepworth wakefi.eld meets the definition ol a public benefit entity undef FRS 102. The chariiy exists for the benefit of the publbc through the provision of access to inspirin& WOfld.classart. which is detailed in the charities. principal activilles. The charity's and the group'5 principal achvitie5 are described in detail on page5 6 and 7 along Wlth the natu of the charity's operation5 and the group's operations. The company has adopted the follr)wing principal ccounting policies which Should be read in conjunction with the ffinancial statement5 Set out on pages 23 to 65. The charity is a qualifying entity for the purposes of FRS 102. being a member of a group where the parent of that group prepares publicly available consolKlated financial statements. including this charity, which are intended to give a true and fair wew of the assets. liabilities. financial position and profit or loss of the 8roup. The charity has therefore taken advantage of exemptions from the following disc105ure requirements for parent charity information presented within the wn501idated financial statements-. • Section 7 '5tatèment of Cash Flows.: Piesentation of a statement of cash flow and related notes and disdosures- ACCOUNTING CONVEMtION These finanaal statements have been prepared in accordan￿ wrth FRS 102 -The Financial Reporting Standard applicable in the UK and Republic of Ireland" I-FRS 102.1, the Charities Ststement of Recomrnended Practice, Accounting and Reportin8 by Charities I"SORP'I FRS 102 and the requirements of thè Companies Act 2006 as pplicable to companies subject to the srnall companies regime, and under the historical Cost convention. The cons0lidatEd th"nancial statements a￿ presented in sterllng which is the functional currency of the group. Monèiary amounts in these financial siatemenis are rounded to ihe nearest whde £1. excepi where otherwise indicaied. GOING CONCERN At the time ol approving the financial ststements. the director5 have a reasonable expectafjon that the ¢ompanv has adequate resources to continue ID operational existence for the foreseeable future. Thus the direclor5 continue to adopt the going concern basis 01 accounting in preparing the financial aatement5. BASIS OF CON50LIDATION These h"nanci315taternent5 con501idate on a line by line ba515 the re5uIt5 of the charity and its wholly-owned subsidiary undertakings. The Hepworth Wakefiel(l Enterprises Limited and The Hepworth Wakefield Garden Trust Limlted. both drawn up 10 31 March each year. The summafised proht and loss accounts for the subsidiaries are shown in note 16. A separate Staiement of Financial Activbtses. or income and expenditure account. for the 29 Docusign EnvÈlope ID." 2D402DC5-DC3PAD8fA3A4-CF9gM8395FO The Hepworth Wakefield NOTES TO THE FINANCIAL STATEMENT Year Ended 31 March 2023 I. ACCOUNTING POUCIES IcontinuÈd> BASIS OF CONSOUDATION IconTrnuedJ ch3rity Itself is not presented as the charity has taken a(Jv3ntagÈ of the exemptions afforded by section 408 of the Companiès Act 2006. Theshare held in The Hepworth Wakefield Enrerprises Limtted. forwhich there is no readily ascertainable market value, is valued at cost. The Hepworth Wakefield was one of four partner oreanisations to run the Yorkshire Sculpture International festival in 2019. Funds retstin8 to the jryntly contrdled enterprise are held by The Henry MoorÈ Foundatlon on the partner's behalf. A5 at 31 March 2023 no material liabilities or assets could be attributed to The Hepworth Waketield. INCOME Income is recognised when it mews ihe three criteria set out within the charities SORP of entitlement, when it is probable it will be received and it is measurable. Hen￿ income from charitable activities and interest receivable is included in the period in which the 8roup is entit￿ to receipt. RESOURCES EXPENDED AND IRRECOVERABLE VAT Expenditure is included in the Statement of Financial Activitie5 on an accruals basis, irttlusive of any VAT which cannot be recovered and charged. Ralsing funds includes the cosis incurred in generating voluniary income.. fundraising trading costs, includin8 the cosis of operating ihe gallery car palk. Trading sub%diary costs which include costs of retail. café and venue hire operations are included in raising funds. other trnding actiwiies. Overheads incurred by the charity relating to building and estates costs are apportioned to the subsidiary based upon the s13ff tiffle devotÈd to these areas on a basis consistent with that used for support costs_ Charitable expenditure ha5 been analysed by arti￿tY. these costs enable the gallery to rneet its charhable aims nd objectives. Where expendrture on mulii-purpose fundraising activity has taken plate. these are apportioned on the basis of the aim and conteni of marketing and fundraising output beiween costs of raising funds Iwhere expet)diture is on material for raising the Beneral protile of the gallery) and charitable expenditure (where expenditure is on material specifically provided to further the Charit￿5 Objecti￿). The actiwties of the charity fall into discrete areas of operations. Oirertty attributable outgoing resources are shown under the relevant headin8. Indirect out80ing re50urce5 are allocated to the project5 on the basis of usage, staff iirne. Wdlue or area occupred, as appropriate. The remainir*g non attributable amounts represent the cost of the tsvÈrall managemènt and administration of the tharity and are shown under that heading on the Statement of Financial Activities. An explanation of the èmount of indirect cosis allocated in ihis way is shown in note 11. Support C05t5 comprising in the majorty staff c05t5 have been apportioned across the activities based upon the staff time devoted to these area5. 30 Docusign EnvÈlope ID." 2D402DC5-DC3PAD8fA3A4-CF9gM8395FO The Hepworth Wakefield NOTES TO THE FINANCIAL STATEMENT Year Ended 31 March 2023 I. ACCOUNTING POLICIES Icontpnue¢fi BASIS OF CONSOL10A￿oN Icontinued) Charitable expenditure and administration costs comprise direct expenditure including direct stsff costs artributable to the activity. Where costs cannot be directly attributed they have been allocated to acdvities on a basis consistent with use of the resource5. Fund raising cost5 are those incurrÈd in sèeking voluntary contributions for the 8allery. Management and adminislration costs are those in¢urr￿ in connection wlth the management of the gallery'5 assets and organi5ational administration. GovÈrnancÈ costs arè thosè incurred in connecn.on with compliance with Constitutional and statutory requirements. COLLECTIONS The Hepworth Waketield 15 the mana8ing trustee of the collections. However, WMDC is the Custodian trustee and therefore none of the collections are included in fixed assets. TANGIBLE FIXED ASSETS Where purchased. tangible fixed assets are initially induded at their cost of acquisition. including costs that are directly attributable to bringing ihe assets inio working condbtion for their interHded use. Where a lixed asset is acquired in full or in part from the proceeds of a 8rant it is included at its full acqui5ilion cost without netting off the 8rant proceeds. Donated, functional f6xed assets arÈ intludèd at a valuatbon madè bytheTrustees. Where the use of these assets is unresrri¢ied they are in¢luded irt a designated fund refletting their book value. All fixed assets where the use 15 unrestricted are then transferred after initial recogniiion from re51ricted or designate(I funds into general reserves. No value is shown in ihe accovnts for assets occupied and used bythe Trust under license from WMDC. Indbvidual fixed assets costing ÉS000 or more are capitslised. Cost5 directty related to brin8ing an a55el to Its completed State are c3Pitalised as they are incurred in accordance with FR5102 (Chapter 171. Long-term exhibin.on Èquipment is ¢apiialise(l as 3 fixed asset. Temporary exhiknrion cosis are written orf a5 resources expended in the year that they are incurred. Tangible lixed assets are depreciated on a straight-line basis over their estimated useful lives. Depreciatton is charged rnonth￿. A fvll rnonth'5 depreciation is chaTEed in the month of acquisition. none in the month of disposal. Depreciation 15 charged at the following rdtÈs'. Plant & machinery Fixtuie5 and th"tting5 office and gallery equipment Compuier and AV equipment 20% per annum IO% pei annum 20% per annum 25% per annum 31 Docusign EnvÈlope ID." 2D402DC5-DC3PAD8fA3A4-CF9gM8395FO The Hepworth Wakefield NOTES TO THE FINANCIAL STATEMENT Year Ended 31 March 2023 I. ACCOUNTING POLIOES (continued) TANGIBLE FIXED ASSETS Icontinued) Leasehold buildings Leasehold garden works 5% per annum 5% per annum DeprecIa￿on 15 not provided on assets in the course of construction until the asset is brought into use in the business. IMPAIRMENT OF FIXEO ASSETS An a55e55ment is made at each reporting date of whether there are indications that a fixed asset may bè impairèd or that an impairment loss previously recognised has fulty or partially reversed. If suth indi¢atiofis exist. the Group estimates the recoverable amount of the a55et. ShortFalls between the carryingvalue of fixed a55ets and their recoverable amounts. being the higher of fair value less costs to sell and value-in-use. are recognised as tmpaimènt 5osses. Impairments of ￿valued assets are treated as a revalyatfion loss. All oiher impairment losses are retognised in the statement of linancial activities. Recognised Impairment losses are reversed if. and onty rf. the reasons for the impairmeni loss have ¢eèsed to apply. Reversals of impairment losses are recognised in profit or loss or. for revalued assets. as a Tevaluatforb gain. On reversal of an impairment loss, the depreciation or amortisation is adjusted to allocate the asset's revised carryin8 amount Ile55 any residual value) over its remainin8 useful life. INVESTMENTS Long-term bnvestrnents are cla55ifled as fixed assets. Short term investments are classified as current assets. Fixed asset investments are stated at cost in the company balance sheet. Provision is made for any impairment in the value of fixed asset investments. STOCK Stock is valued al the lower of cost and net realisable value. Net realisable value is based on estimated selling price. Provision is madÈ for obsolete. slow moving of delective items where appropriaie. At each reporting date. the group asse55e5 whether ￿0(k5 are impaired or if an impairment loss recognised in prior periods has reversed. Any excess of the carrying amount of stock over its estimated selling pri¢e less costs to complete and sell. is recognised as an impairment loss in the statement of fi'nancial acttvib"es. Reversals of impairment losses are also recognised in the statement of financhal athvities. Stocks held for distribution at no or nominal consideration are measured at C051. adjusted where applicable. CASH AND CASH EQUIVALENTS Cash and tash equivalents include cash in hand. depO￿lS held at (all with banks. other short term liquid investments Wlth Drbginal maturities of ihiee months or less, and bank overdrafts. Bank overdrafts arÈ shown wiihin borrowngs in Current liabilities. 32 Docusign EnvÈlope ID." 2D402DC5-DC3PAD8fA3A4-CF9gM8395FO The Hepworth Wakefield NOTES TO THE FINANCIAL STATEMENT Year Ended 31 March 2023 I. ACCOUNTING POLICIES l¢onTrnuedl FINANCIAL INSTRUMENTS The company has elecied to apply iheproyisions of Seciion Il'8asic Financial Instrument5. and Sectfon 12'0ther Financial Instruments Issues, of FRS 102 to all of its financial instruments. Financial inslruments are recognised when the company be¢omes party to the contrattual provisions of the instrument. Financial as5et5 and liabiliiles are oftset. with the nei amounts presented in the tinancial statement5, when there is a légally enlorcÈable right to set off the recognised amounts and there is an intention to settle on a npt ba515 or to realbse the asset and Sett￿ the liability Simultaneou￿¥. BoS￿￿n¢1nctro1 osset5 Basic hnancial assets, which include trade and other receivable5 and cash and bank balances. are initiallv measured at transaction price irscluding transaction cost5 and are 5ub5equently carried at amortised cost V5in8 the effective interest rnethod unless the arwanBement constitLrtes a fi.nancing transaction. where the financial ssÈt is mèasured at the present value of the future receipts discounted at a market rate of interest. Impoim)ent offinontiolossets Financbal assets, other than those held at fair value through profit and loss, are as*ssed for indicators of impairrnent at each reporting end date. Financial a55ets are hrnpaired where thÈre is obiettive ewdence that. as a result of one or more event5 that occurred aftèr the initial recognition of ihe financial asset. the esrimaied fuiure cash flow5 have been affected. If an asset is impaired. the impairfflent loss is the difference between the carrying amount and the present valuè of the estlmated cash flows discounted at the assel's original effective interest ratè. The impairment loss is recognised in proht or loss. If there is a decrease in the impairment105sarisingfrom an evenl occurringafterthe impaimient was recoBnised, the impairment 15 reversed. The rÈversal is svth that the current carrying amount does not exceed what the carryin8 amount would havè been. had the impaimient not pre¥bously been recognised. The impairment reversal is reco8ni5ed in proh"t 011955. Dereco9nitlon offinonciol ossets Financial assets are derecognised only when the contractual rights lo the (ash flow5 from the asset expire or are sertled. or when the company transfersthefinancial asset and substantiallyall ihe risks and rewards of ownership to arnother entity. or if some significant risks and rewards of ownership are retained but corbtrol ol the asset has transferred to another party that is able to sell the asset in its enttrety to an unrelated third party. C1055ificotion offinunciol liubilities Financial liabilities and equity instruments are dassified according to the substance ol the contractual 3rran8èmÈnts èntÈred into. An equity instrument is any contract ih31 evidences a residual interest in the a55et5 of the company after deducting all of its liabilities. 33 Docusign EnvÈlope ID." 2D402DC5-DC3PAD8fA3A4-CF9gM8395FO The Hepworth Wakefield NOTES TO THE FINANCIAL STATEMENT Year Ended 31 March 2023 I. ACCOUNTING POLICIES Icontinuerfj FINANCIAL INSTRUMENTS IconD'rtued) 805icftnonciol liabilNttes Basic financial liabilities, including trade and other payables and loans from fellow 8roup ¢ompènies thai are classilied as debt. are initially recognised at transaction price unless the arrangement constitute5 a linancing transaction. where the debt insirument is measured at the present value of the lytvre payment5 discounted at a market rate ol interest. Debt instruments are subsequently c•rried at amortfsed tosi. using the effeciive interest rate meihod. Derecognit￿n offinonciol liobi7ities Financial liabilities are derecognised when. and ontywhen. the company'scontractual obli8ation5 are discharged, cancelled. or they expire. GIFTS IN KIND Gift5 in kind are accounted for at a reasonable p5timate of their value lo the charrty or the amount actually re3li5ed. Those received for the purpose5 of sale 01 distribution are included in the accounts as gifts only when 501d or disiributed by the tharity. Those received for use byihe charityare induded in the Ststement of Financial Activin"es as incoming resources when receNable. Volunteer work is not recognised in the accounts but the savings to the charity have been estimated in note 8. FOREIGN CURRENCY Transactions in foreign currency are r￿orded at the rate of exchange prevailing at the time Df the transaction. Foreign currency balances are trdnslated into Sterling at the exchange rates prevailing at the balance sheet date. Any resulting gains or losses on exchange ère included in the Statement of Finanoal Activities. PENSION COSTS The group operates two pension schemes. There is a defined benelit scheme whih West Yorkshire Pension Fund, which 15 only available to staff who have previousfy contributed to the scherne. In addiliuln there 15 a Group Persona1 Pension Scheme administered by Scottish Life which is available to all other ewnployees. Contributions to both Schemes are charged directly to the Statement of Firbanual Activities. The employers, coniriburions are included irb the Statement of Financi31 Activities as an expended rèsource on an accruals basis. For defined benelit schemes the amount5 tharged to operating pwfit are the current service costs and gains and Ios5e5 on seitlements and curtailments. They a￿ included as part of staff costs. Past seNice costs are recognised immediately in the profit and loss account il the benefits have vested. If the benefits have not vested immediately. the costs are recognised over the period until vesring occurs. The interest cost and the expected return on assets are shown as a net amount of other linance costs or credit5 adjacent to interést. Actuarial gains and losses are recognised immediatety in the staternent of total recogni5ed gain5 and losses. Delined benefit schemes are funded, with the assets of the scheme held Separately from ihose of the Group, in séparate trustee administered funds. Pension schème assets are measured ai fair value and liabilities are 34 Docusign EnvÈlope ID." 2D402DC5-DC3PAD8fA3A4-CF9gM8395FO The Hepworth Wakefield NOTES TO THE FINANCIAL STATEMENT Year Ended 31 March 2023 I. ACCOUNTWG POLICIES (continued) PENSION COSTS IcontFAuedl meèsured on èn actuarial basis using the projected unli meihod and discounted at a rate eqvivalent to the current rate of return on a high.quality corporate bond of equivolent currency and term to the scheme liabilittès. The actuacial valuations are obiained ai least triennialty and are updated at each balan￿ sheei dale. The resulting defined benelit asset or liability. is presented separately after other net asset5 Qn ihe lace of the balance sheet. For deh'ned contrbbution scheme5 the arnount charged to the profi.t and105s account in iespect of pension cost5 and other poSt￿etireMent benefiis IS the contributions payable in the yeai. Oifferences between contributr'ons payable in the yèar and tontributlons actual￿ PaKI are sl￿Wn as either accruals or prepayments in the balance sheet. Where there is a resvlring defined benefit asset is capped at the estimated recoverable amount, and a prowsion made for èny irrecoveiable surplus. FUNDACCOUNMNG Funds hdd by the charity are either". • Unre5tricied general funds - these •re funds whith Can be used in accordance with the charitable objects at the discretion of the tru5tee5. • Unresiricted designated funds- these are fundswhKh have been set-aside bythe trustees for specilic future purposes. • Restrictetl funds- these are funds that can onty be used for particular restricted purp05e5 Wlthin the objects of the charity. Restrictions arise when specilied by the donor or when funds are raised for particular re5trirted purpose5. Further explanation of the nature and purp05e of each fund 15 included in the notes io the h'nancial statements. TAXATION The company is a regiSte￿d charity and has no liability to corporation tax on its charitable activities under the Curpoiation Tax Act 2010 Ichapters 2 and 3 of part ii. section 466 onwards) or Section 256 of the Taxaifjon for Chargeable Gains Act 1992, to the extent surpluses are applied to it5 charitsble purposes. The trading subsidiary 15 liable to corporation tax on it5 taxable profit5. Current taK including UK corporation tax and foreign tax, 15 prwded at amounts expected to be paid lor recovèred) using the tax rates and laws that have been enacted or substanlively enacted by the bal3nct sheet date. EMPLOYEE BENEFITS The cost5 DI short-terffl employee benefits are recognised as a liability and an expense, unless those costs are required io be recognised as part of the cosi of stock or fixed assets. The cost of any unused holiday entitlemeni is recognised in the peiiod in which the employee's services are received. Terminarion benelits are recognised immediatety as an expense when the company is demonstrably committed to terminate the employment of an employee or to prowde termination benefits. 35 Docusign EnvÈlope ID." 2D402DC5-DC3PAD8fA3A4-CF9gM8395FO The Hepworth Wakefield NOTES TO THE FINANCIAL STATEMENT Year Ended 31 March 2023 I. ACCOUNTrNG POUCIES Iconts"nuerfl JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAIMtY In the application of the companWs accovnn.ng polKies. the directors are required to make judgements. estimètes and assumptions about the carrying amouni of asseis and liabilities that are not readily apparènt from other sources. The estimates and associated assumptions are based on historical experience and other factgrs that are considered to be relevant. Actual reyjks may differ Irom these estimates. The estimates and undertyin8 assumptions are r￿leWed on an on8oing basis. Revisions to a¢¢ounting estimates are recoBnised in the period in whKh the estr.mate is revised where the revi5w)n affect5 only that period. or in the period of the revision and future periods where the rew5ion affects both cuirent and future perlods. MUSEUM AND GALLERY TAX RELIEF The acrrued incorne in respfft of MuseLtm and Gallery Tax Relief has been assessed by management based Dn the guideline5 set out by HMRC in relation to eligibility. 2. INCOME GENERAYED BY THE TRADING SUBSIDIARY Income generated by the subsidiary rep￿SentS amounts derived from the provision ofgoods and seNites which lall within the company's ordinary activities after deducrion of trade discounts and value added tax. The income, which arbses in the United Kingdom, is attributsble to the company's principal activity. Consolidated incoming rèsources from genèrattng funds also includes income from the trading 3crivin.es including retsil sale5, hire of 8allery space5, commisgon gn café and (atering incoffle and car patking income. 36 Docusign EnvÈlope ID." 2D402DC5-DC3PAD8fA3A4-CF9gM8395FO The Hepworth Wakefield NOTES TO THE FINANCIAL STATEMENT Year Ended 31 March 2023 3. INCOME FROM DONATIONS AND LEGACIES Unrestricted lunds Restricted fvnds Total 2023 Unrestr￿ed funds Restricted funds Total 2022 Trust 8rants received & Individual Givin8 Gallery bom donations Other donations Patrons 54.618 149 18.297 15.130 267.361 321.979 149 18.297 15.130 122,248 2.224 6.423 6.369 2OJ.922 323.170 2,224 6,423 6.369 88.194 267,361 355.555 137,264 200.922 338.186 4. INCOME FROM CHARITABLE ACTIVITIES Unrestric funds Restri¢ted funds Totsl 2023 Unrestricted funds RestrictEd lund5 Totsl 2022 Wakeheld Council service charge income Art5 CDuficiI England NPO funding Partnership income WDrkshop5. tours and talk5 incowne Admission Entry Educatton income Funded ACqui￿tiOnS Spon50¥5hip 750,C( 7s0,￿l 875.lx 875,(U 922.773 45.684 922,773 45.684 920.774 ICQ.800 920.774 100.8C 23.198 274.788 9.791 23.198 274.788 9.791 3.725 298.230 3.725 298,230 2.586.081 2.586,081 65.wo 45.0 95,(MX) 65.CQ) 2.071.234 50.C 2,121,234 2,263,529 2.586.081 4.849.610 37 Docusign EnvÈlope ID." 2D402DC5-DC3PAD8fA3A4-CF9gM8395FO The Hepworth Wakefield NOTES TO THE FINANCIAL STATEMENT Year Ended 31 March 2023 5. INCOME EARNED FROM OTHER AcfiviMES Unrestric funds Restritted funds Totsl 2023 Unrestricted funds Restricted Total funds 2022 Car park income Corporate partnership Income 55.531 S5,531 71,246 71.246 5,2SO 51,431 24.939 54,585 897,473 5.250 51.431 24.939 54.585 897,473 8.(KO 10.939 53.326 29.957 832,089 Event income Membership Other income Trading income Coronavirus Job Retention kheme grant income Museums Galleries & Exhibitions Tax Reliel Garden Trust income 10.939 S3.326 29.957 832,089 39.113 39,113 37.914 2.281 37.914 2.281 1.532 1.472 1,532 1.472 1.129,404 1,129,404 1,047.674 1.047.674 6. INVESTMENT INCOME All of the gioup's invesiment income of E20.78212022.. £17.6561 arises from al money held in inierest bearln8 deposit accounts of £nil12022.. £nill and bl money held in a corporate bond portlolio of £20,78212022.. £17,656). 7. DEFERRED INCOME Group l April 2022 Deferred Released 31 Mar(h 2023 Other deferred income 10.1 10.000 Charity l April 2022 Deferred Released 31 March 2023 Other deferred income io,r 10.OOD The deferred income balance 0131 Mar¢h 2023 relates to SPL)nsorship income ￿ce[ved before 31 March 2023 which relate5 to the financbal period ol the year ended 31 March 2024. 38 Docusign EnvÈlope ID." 2D402DC5-DC3PAD8fA3A4-CF9gM8395FO The Hepworth Wakefield NOTES TO THE FINANCIAL STATEMENT Year Ended 31 March 2023 8. INFORMATION REGAROING TRUSTEES AND EMPLOYEES 2023 No. 2022 No. Average number of pev5Dn5 efflployed: Collections and Èxhibitbons Learning Visitor service5 MarkÈtSng Management and administration Development Tradin8 5ubydiary Premise5 13 25 22 li 19 23 78 91 2023 No. 2022 No. Average nurnber Df FTE employed: Collections and exhibitlons Learning Visitor services Marketing Management and administration Development Trading 5ub5idiary Premises 13 13 li 12 li 57 52 39 Docusign EnvÈlope ID." 2D402DC5-DC3PAD8fA3A4-CF9gM8395FO The Hepworth Wakefield NOTES TO THE FINANCIAL STATEMENT Year Ended 31 March 2023 8. INFORMAnoN REGARDING TRUSTEES AND EMPLOYEES Iconth"nuerfl 2023 2022 Staff costs during the year- Wages and salaries Social security costs Pension costs Recruitment and temporary stsff colts Other Siaff ¢osts Staff training and expen5e5 1,404.892 120.007 181.654 51.170 36.578 7.167 1.338.414 97.989 130.765 6.421 1.502 165 1,801,468 1,575,256 In the current year a settlement was paid to no12022.. one) employees of £nil12022= £6,0001. The number of employees whose emoluments a5 delined for tayAtion purposes amounted ￿ over £60.OOL) in the year was as follow5.. 2023 No. 2022 No. £60.001- £70.000 £70.001- £80.000 £80.(K)1- £90.0(￿> £90.001- £IOO,CKI All employee5 earning over £60.[￿ participated irb the pension xheme. Totsl contribution5 paid duiing the period in respect of these employees were £28,85412022= £11.3501. VOLUNTEERS In the year a 5ignithcant saving to the charity bvas ihe invalyable a5si5tance received Iiom volunteers. During the year a total of 7212022.. 591 volunteers offered iheii services and the resultin8 sa¥in8s from this are estimated to be in the region of £15.50012022.. É13.0291. equivaleni to 0.9 full time members of staff. TRUSTEES. REMUNERATION No trustees received remuneration during the current year OT prior period. Expenses of £43212022.. £6851 We￿ paid to one12022- two) trustees in respect Df accDmmod3tion and tmel fares. Docusign EnvÈlope ID." 2D402DC5-DC3PAD8fA3A4-CF9gM8395FO The Hepworth Wakefield NOTES TO THE FINANCIAL STATEMENT Year Ended 31 March 2023 9. KEY MANAGEMENT PERSONNEL The key managementofthe group¢omprise thoseof thetharityand the key management personnel of it5 wholly owned subsidiaries. The total employee benefit5 of the key fwbanagement personnel of the group were £437,428 12022.. £289,152). The key management personnel of the tharity comprises the trustees and the Senior Mana8ement Team. 10. EXPENDtruRE ON RAISING FUNDS Unrestricted Funds Staff Diieci CNerhead Depre Mark￿ing Goveinènce oanon costs ost5 costs Total 2023 Tgtsl 2022 cosls costs costs Cost Df raislng funds Fundraising tradin8 Garden Trust 107.588 4.097 72.498 4.491 12.976 5.467 207,117 236.944 325.364 329.472 11.851 9,135 4.173 8.186 6,950 685,996 692.109 9.135 14,701 Toial 432.952 342.704 84,349 2J.162 12.417 9)2.248 943.754 Restricted Staff cost5 Direct ￿erhead cosis costs Depre Marketing Governan clat￿￿ costs Totsl 2023 Totsl 2022 costs Cost of raising Ivnds Tota 41 Docusign EnvÈlope ID." 2D402DC5-DC3PAD8fA3A4-CF9gM8395FO The Hepworth Wakefield NOTES TO THE FINANCIAL STATEMENT Year Ended 31 March 2023 11. EXPENDITURE ON CHARITABLE AcfiviTIES Unrestricted Funds Staff costs Direct Overhead costs costs Depre Marketing GoveTnance Total tiation Costs costs Totsl 2022 2023 costs Cdlections and exhibition5 376.559 213,447 253.745 LeaTnin8 161.382 7,453 108,748 Visiior services 699.324 470 471.240 Public Programme 53.794 14.438 36.249 Garden 32.602 639 76 15,717 45,417 6,736 19.464 29,189 84.346 2.246 6.488 9).548 19.134 8.21XS 35.534 2.733 924,019 592.258 311.983 474,245 1.320.103 1,W9.883 115,948 129.760 125,465 128,191 rotal 1,323.661236,447 870.058 144,436 155.715 67.201 2,797,518 2.334.337 REStrKted lunds Staff Dtrect Overhead Costs C05t5 Depre Marketing Governance Ciaiion costs costs costs Totsl 2023 Total 2022 costs Collection5 and exhibition5 Leaining Vi51tQT services Public Programme- G3¥den 44,855 180,542 119.829 22S,397 2.734.908 119.829 246,114 26.500 28.065 28,065 TDtsI 44.855 328.436 373.291 3.007,522 Sh3red and support costs iotalline E2,639.26512022= £2.839.4071 and comprising in Ihe majority staff c05t5 have been allocaied acrossthe acn"vities based upon the staff rime devoted to thesearea5. Staff cost5foi these èieas ère reported under the staff cost heading, other than amounts alkKated to Governance. 42 Docusign EnvÈlope ID." 2D402DC5-DC3PAD8fA3A4-CF9gM8395FO The Hepworth Wakefield NOTES TO THE FINANCIAL STATEMENT Year Ended 31 March 2023 12. GOVERNANCE COSTS 2023 2022 Legal and Professional fees Audit and Accountsncy fees 23.857 55.760 18,066 39,050 79.617 57,116 13. NET INCOMEIEXPENOITURE FOR THE YEAR This is stated after charging.. 2023 2022 Oepreciation Auditor's remuneratron.. Fees payable to the tompany's auditor lor the 3udit of the ¢ornpany's annual fi.nancial statements Fees payable to the company's auditor for the audit ol the subsidiary's ar)rtual fi.nancial st3iemenis Tax compliance Services Accountancy services 153,ICQ I￿.526 31,5tA) 14.500 2,SC(J 12,960 8,8TrJ 4,700 4.285 14. TAXATION 2023 2022 United Kingdom corporatbon tax at 19%12022.. 19%) 43 Docusign EnvÈlope ID." 2D402DC5-DC3PAD8fA3A4-CF9gM8395FO The Hepworth Wakefield NOTES TO THE FINANCIAL STATEMENT Year Ended 31 March 2023 15. TANG18LE FIXED Asstrs Group Asseis in the Plant and Fixtures Gateh(K￿ Ganlens course of Machinery fithnes Construction Office and Computer Leaseh¢Jd Total gallery and AV land ènd equipment equipment buildings Cost At l April 2022 122,744 136.832 112.244 11.BlOI 169.373 L641.584 37.610 6.885 221,179 336 188.509 2,517,B21 119,465 12,3091 Addit￿￿5 Di5P05als 14391 1601 At 31 March 2023 122,305 247.256 169.373 1.641.$84 44.495 221.515 188.449 2.634.977 Accumulated depreclation At l April 2022 Charee for the year Olsposals 86,959 85.728 19.911 149.973 30.283 198.345 65,975 637,174 18A79 12661 18.397 8.469 1301 82.079 2.485 1.026 13.766 15471 9,425 153,1 16771 At 31 March 2D23 105.172 103.265 28.350 232.052 33.794 ?11.$64 7S.4C4) 789.597 Net book value At 31 March 2023 17.133 143.991 141,023 1.4C8.532 10.701 9.951 113,049 1,845.380 At 31 Marth 2022 35.785 S1.OY 149.462 1.491.611 7.327 22.834 122.534 1,880.647 44 Docusign EnvÈlope ID." 2D402DC5-DC3PAD8fA3A4-CF9gM8395FO The Hepworth Wakefield NOTES TO THE FINANCIAL STATEMENT Year Ended 31 March 2023 15. TANG18LE FIXED ASSETS IconDnued) Charity Assets in the Plant aThd Fixture5 and course of machinery httires construciion Office and Cumpuie fdllery and AV equipmeDt equipment leasehold land and buildines Total Cost Cost Al l April 2022 Additions. Disposals. 112.769 131.787 112.224 25.996 217.630 188,449 676,631 117.833 At 31 March 2023 IIZ.769 244.011 31.605 217.630 188.449 794,464 Accumulated depreciation At l April 2022 Ch8r8È for the ye3r Di5PD5al5- 78.111 83.381 25. 196.814 65.975 450,277 17.525 18.073 561 12.794 9.425 $8.378 At 31 March 2023 95,636 101.4S4 26.S57 209.608 75.4ICKI 508.655 Nei book value At 31 March 2023 17.lJ3 142.557 5.048 8.022 113,049 285,809 Al 31 March 2022 34.658 48.406 20A16 122.4?4 226.354 All tangible fixed a55ets were used lor charttal)le wrpose> 45 Docusign EnvÈlope ID." 2D402DC5-DC3PAD8fA3A4-CF9gM8395FO The Hepworth Wakefield NOTES TO THE FINANCIAL STATEMENT Year Ended 31 March 2023 16. INVESTMENTS HELD AS FIXED ASSETS 2023 Group 2023 Charity 2022 Group 2022 Charity Investment in subsidiary Listed irwestments 1,167.271 1.167,271 1.258,052 1,258,052 Listed investments 2023 Investments 2023 Cash 2022 Investments 2022 Cash Markel value brgught fonward at l April 2022 Add.. additions to I￿stmèftts at cost Di5P05als at cairying value Movement in cash Revaluation 1.204.721 253.043 1213.4631 53.331 942.658 697.161 1474.7771 17,656 132,6131 35,675 197.7481 39.679 Market value as at 31 March 2023 1,146,553 20.718 1,204,721 53,331 The rofflpany owns I(￿60f the ordinary share capitsl ofThe Hepworth W3kEfield Enterprises Limited. Companv ReÈislrat6on Number 07594964, a company registered in England and Wales. The principal activities of the company are to carry oui the reiail and venue hire oper31ions of the charity and also to receive commlssions from the outsourced opeiation5 of the tafé business. 46 Docusign EnvÈlope ID." 2D402DC5-DC3PAD8fA3A4-CF9gM8395FO The Hepworth Wakefield NOTES TO THE FINANCIAL STATEMENT Year Ended 31 March 2023 16. INVESTMENTS HELD AS FIXED ASSETS Icontinuet*) The company also contrd5 The Hepworth Wakefield Garden TNst Limited, Company Re8i5tration Number - 10383188, a company llmited by guarantee and registered in England 3nd Wales. The Principal acrivities of the Company is to establish and operate The Hepworth wakefi.eld Riversidè Gallery Garden. The income and expenditure of The Hepworth wakeh.eld Enterprises Limited for the period ended 31 March 2023 is summarised below.. 2023 2022 Turnover Cost of sale5 897.473 1329.4721 762.206 1357,116 Gross profi"1 568.001 405,090 Administrative expenses 1356,5241 1334.9921 Profit on ordinary actSvitie5 for the financial peri(Kl 211.477 70.098 Prolit retalned for the financrdl period 211.477 70.098 The ag8re8ate of the as5et5. liabilitie5 and funds was= 2023 2022 Assets Liabilities 497,722 1284,8711 281.387 1215.0141 212,851 66.373 Repiesented by.. Called up share capital Proffii and loss account 212.850 66,372 Shareholder'5 fund5 212.851 66.373 47 Docusign EnvÈlope ID." 2D402DC5-DC3PAD8fA3A4-CF9gM8395FO The Hepworth Wakefi'eld NOTES TO THE FINANCIAL STATEMENT Year Ended 31 March 2023 16. INVESTMENTS HELD AS FIXEO ASSETS Iconfrnued) The income and expenditu￿ of The Hepworth Wakelield Garden Trust Limited for the period ended 31 March 2023 is summarised below.. 2023 2022 Totsl funds brought forward 1437.3341 1337,3121 Total income and endowments Total expenditure 2.281 1125.4651 42,871 1142.8931 Totsl funds carried forward 1560.5181 1437,3341 The aggregate of the assets, liabilities and funds was- 2023 2022 Assets Liabilitie5 1.909.703 12.470.2211 2,003,742 12.441.076) Repiesenled bv.. Unrestricted funds 1560.5181 1437,3341 17. STOCKS 2023 Group 2023 Charity 2022 Group 2022 Charitv Goods for resale 169.1 165,356 18. INVESTMENTS 2023 Group 2023 Charitv 2022 Group 2022 Charitv Current asset investmet)t hekl in cash 1.158 1.158 1,320 1.320 48 Docusign EnvÈlope ID." 2D402DC5-DC3PAD8fA3A4-CF9gM8395FO The Hepworth Wakefield NOTES TO THE FINANCIAL STATEMENT Year Ended 31 March 2023 19. DEBTORS 2023 Group 2023 Charity 2022 Group 2022 Charity Amount5 falling due within one year= Trade debtors Amount owed by subsidi3rie5 Other deblors Prepayments and accrued income VAT debtor 89,362 75,731 272,402 58,088 95,892 85,424 50,887 181,166 61.180 161.854 61,517 95,892 1.334 79.434 164.304 248.105 502.113 329,162 455.087 20. CREDITORS.. Amount5 falling due wtihin one year 2023 Group 2023 Charity 2022 Group 2022 Charity Trade creditors Other creditors Other taxes and social security Accruals and deferred income VAT creditor 164.224 13,401 31,833 112.274 432.079 129.561 13.401 31.833 103,324 70.994 182.933 9.590 27.089 118.780 486.474 156.621 9,590 27,089 109.914 124,717 753.811 349.113 824,866 427,931 21. FINANCIAL INSTRUMENTS 2023 Gioup 2023 Charity 2022 Group 2022 Charity Carrying amount of linancial a55ets Debt insirument5 measured at amortised cost 185.253 171,623 156.359 119,372 Carrying amount of financlal liabilitles Measured at amortised c05t 266,498 222,885 290.273 255,098 49 Docusign EnvÈlope ID." 2D402DC5-DC3PAD8fA3A4-CF9gM8395FO The Hepworth Wakefield NOTES TO THE FINANCIAL STATEMENT Year Ended 31 March 2023 22. MOVEMENT IN UNRESTwcfED FUNOS Unrestricted fund5 ¢ompri5e the fc4lowin&. Group l April 2021 Income Expend iwre Net eains I Ilosse51 on Lnvestments Traft￿er$ Actuarial 8ain/llossl 31 March 2023 General unrestritted funds 4,398.799 3,294,614 13.646,7661 197.7481 Pension re5er¥e 1315.0001 15.C 153.CKXII 13.7941 3,945,105 353,OLKI Total unrestrirted funds 4,083,799 3,309,614 13,699,766? 197.7481 13.7941 353.0 3,945,105 Chjwity l April 2022 Income Expend iiure Net gains I Ilossesl on investments Transfers Actuarial gainlllos51 31 Maich 2023 General unrestricted funds 2.691.771 2,459,8S9 12.83S.3061 197.7481 Pension reserve 1315,0(K)I Is.(￿ 153.iJxII 13.7941 2.214.782 353.C(10 Total unrestricted funds 2.376.771 2,474.859 I2,888.￿) 197.7481 13.7941 353.lJOO 2.214,782 PRIOR YEAR MOVEMENT IN UNR£STRicfED FUNDS Unrestricted fiJnd5 comprise the lollowing". Group l April 2021 Income Expend iwre Net eains I Ilossesl on investments Transfers Actuarial gainllloss) 31 March 2022 General unresiiiued funds 3.904,066 3,451.123 13.225.091) 39.679 Pension reserve I444.(￿0) 15.CO) 153.OC4)1 229.022 4,398,799 131S,(KJOI 167,OLX) Total unrestricted lunds 3.4￿.066 3.466.123 13.278.091> 39.679 229.022 167.0(K) 4,083,799 so Docusign EnvÈlope ID." 2D402DC5-DC3PAD8fA3A4-CF9gM8395FO The Hepworth Wakefield NOTES TO THE FINANCIAL STATEMENT Year Ended 31 March 2023 22. MOVEMENT IN UNRESTRICTED FUNDS Icontinuerfi PRIOR YEAR MOVEMENT IN UNRESTRICTED FUNDS Iconnnuedl Unrestricted funds comprise the follownE'. Charitv l April 2021 Incorne Expend iture Net gains/ Ik)ssesl on in¥estments Transfers Actuarial gainlllossl 31 March 2022 General unrestricted lunds 2.167.114 2.646.045 12,390.0891 39.679 Penyon reserye 1444.000>15.1 153.(KK)I 229.022 2.691.771 1315.0001 167.0 Total unrestrirttd fund5 1,723,114 2.661,045 12.443,0891 39,679 229.022 167,0 2,376.771 23. MOVEMENTIN OESIGNATEO FUNDS Oeslgnèted funds comprise the following.. Group l April 2022 Income Expend iture gainsl Ilossesl on investments Transfers Actuarial 8ain/llossl 31 March 2023 Designated funds Charity l April 2022 IrKome Expend itLtre Net gains I 1105se51 on investments Transfers Actuarial gain/llo551 31 March 2023 Design31ed lunds 51 Docusign EnvÈlope ID." 2D402DC5-DC3PAD8fA3A4-CF9gM8395FO The Hepworth Wakefield NOTES TO THE FINANCIAL STATEMENT Year Ended 31 March 2023 24. MOVEMENT IN RESTRICTED FUNDS Restricied funds comprise grants and donaiMs eNen towardsexpendr(ure on the Hepworih's charitable aims. Group l April 2022 Income Expenditure Tran5fer5 31 MaTch 2023 Learnlry.. other proeramme cosis Erid8e Trusi.. School Prints Exhibiffton Sheila Hick5 Exhibinons Hepwr)rth 2021 Collections & Exhibitbons 44.855 Art Fund Ceramits Project 29.816 ExhibiMon- Hannah Starkey 77.420 Bloornberg Philanthropies WMDC.. 107,364 55.(KKI io.(Kx) 21.065 1102,5751 S9,789 io.c 15.(*NI 11.8(X)I 144.8551 127.3371 168.7201 116.5Q)I 9.979 8.7(M) 18.SC¥) 35.iXXI Connecting Communitie5 Mayor's Saler Communities Fund Grant Hurvin Ander50n Exhibitlon Wakelidd Sculptu Programrne Art Fund- Audience Rtsearch Funding Erskine H311 & Co Art5capade Art Grant J&M Burton Decoofjve Aris SoEiety Estdle Trust Acquisitions Iniva-. Future Collect 45.319 145.3191 7.550 7.550 50.000 10. io.( 40.507 13.120 40.507 113,1201 15.0001 I5.0￿} 15,IM)I 3,SC 12.(MJ)I 3.794 3,794 274,455 317.361 1373,2911 3,794 222,319 52 Docusign EnvÈlope ID." 2D402DC5-DC3PAD8fA3A4-CF9gM8395FO The Hepworth Wakefield NOTES TO THE FINANCIAL STATEMENT Year Ended 31 March 2023 24. MOVEMENT IN RESTRICTED FUNDS (continued) Chaiity l April 2022 Income Expenditure Transfe 31 March 2023 Learning.. othet programme costs Eridge Trust- Sthool Prints Exhli >ition Sheila Hicks Exhibitions Hepworth 2021 Co1￿chon5 & Exhibitrons 44,85S Art Fund Cerarnics Projecl 29.816 Exhibition Hannah Siarkey 77.420 Bloomberg Philanthropies WMDC.. 107.364 S5.￿ io.c 21.C65 1102.5751 59,789 io,cxx) 15.0 I36,c￿5} li.8￿) 144.8551 127,3371 168.7201 116.5((Il 9,979 8.7[ 18.500 35.( Connecting CommUni￿e$ Mayor's Safer Communiiies Fund Grant HUry￿ Anderson Exhib￿￿0￿ Wakefield Sculpture Programme Arl Fund- Audience Research FundinE Erskine Hall & Co Artscapade Art Granl J&M Burton Detorative Arts Society Esielle Trust Acqui5irion5 Iniva: Future Collect 45.319 145.3191 7,550 7.550 50.f 50.000 io.c io,oTh) 40.507 13,120 40.507 113,1201 15.(KlOI 15.c4xII Is.(￿) 3.5(K) 3.500 I2.0￿) 3.794 3.794 274,455 317.%1 1373.2911 3.794 222.319 53 Docusign EnvÈlope ID." 2D402DC5-DC3PAD8fA3A4-CF9gM8395FO The Hepworth Wakefield NOTES TO THE FINANCIAL STATEMENT Year Ended 31 March 2023 24. MOVEMENT IN REStRlCtED FUNOS Icontinued) Restricted fund5 as at 31 Maich 2023 consi51 of unspent restricted grants and donations and fixed assets purchased wth restriued funds. Where restricted money is donated to fund assetswhich will be for the Beneral use ol the chariiy. a transfer is made from ihe restricted ieserye lo uniestiiaed when the asset 15 purchased or brought into use. The major funds are considered below= Gott Collection- f4tnd5 received towards the conservation and digiti5ation of the 10-volume Gort collection. Exhibittons- funds received towards thè costs ¢)f exhibitions in 202212023 and prior years. Learning Gallery Enrichment Pilot Programme- funds received in two phases to enable the devek)pment of a secondary school cross curricular learning wo8ramme_ Learning." Integrated Youth Programme funds receive(I to enable the running of a wogramme for NEETS lindivbduals not in education, employment tsr training) to attÈnd a youth programme hosted by the Hepworth Wakeh"eld. Learning-. Imagine 8etter Futures- funds received to enable the running of a progrnmme for young women on the rent depO￿t scheme who were previously homelessto en8a8e with the Gott collection toexplore Wakefield's history and their fuiure. Learning- wellbeing related- Wakefield Metropolitsn DistrKt Councilgrant to support ILxal cultural organisations to deliver cultural activitie5 which contrbbvte toward5 improving the health and wellbeing of people and cofflmunities across the district. The Hepworth Prize for Sculpture- aggregate funds received to cover the cost of the prize. the exhibition and associated costs. The use ol Indi￿dual donations has been resiricted according io donor stipulalions. Learnin8.' Dementia Project- funds received towards the cost of this project Eridge Trust: School Prints- funds received towards the cost of produong print5 for Schools Exhibiifjon- Sheila Hi¢ks- funds received towards the cosi ¢)f ihe exhibifion irb 2022 Exhibition- Hannah Starkey- funds Teceived towdrds the cost of this exhibition in 2022 Art Fund Ceramics Projett- funds received towards the cost of this proje Exhibitions- Hepworth Research Network- funds receNed toward5 the cost of the netWDrk Exhibitions- Hepworth 2021- funds receNed towards the cost of this exhibition Iniva.. Future Collect- fundin8 received lorthe salary costs of a traineÈ turaior 54 Docusign EnvÈlope ID." 2D402DC5-DC3PAD8fA3A4-CF9gM8395FO The Hepworth Wakefield NOTES TO THE FINANCIAL STATEMENT Year Ended 31 March 2023 24. MOVEMENT IN RESTRICTED FUNDS Icontinued) Special Acquisitions- fvnding received for the purchase of artwork for the collection. Bloomber8 Philanthropies- funding rec•ived to enable greater auessibility olthe exhibition spaces WMDC Connecting Communities- funding received from Waktfield Council for a community-base(I proje¢t Mayor's Safer Communithes Fund G13nt- Hurvln Ander50n Exhibition- hjnds receNed towards the cost of this exhtbition Wakefield Sculpture Programme- fundin8 received todeliver engagernent projects with the publicand sculpture Art Fund Audience Research Funding - funding from the art fund to exploie audience motivation5 and experiences with the 8allery Decoradve Arts Society- fvnding recebved io support care of the art collection 55 Docusign EnvÈlope ID." 2D402DC5-DC3PAD8fA3A4-CF9gM8395FO The Hepworth Wakefield NOTES TO THE FINANCIAL STATEMENT Year Ended 31 March 2023 24. MOVEMENT IN RESTRICTED FUNDS lcontinuedl PRIOR YEAR MOVEMENT IN RESTRICTED FUNDS Restricted funds comprise grants and donatfions 8i¥en toward5 expenditure on the Hepworth's charitable aims. Group l April 2021 Income E¥pendiiure TransFers 31 March 2022 Aris Covneil Museums Resilience Learning.. other programme tosis Learning.. Integrated Youth Programme Learning.. Dementia Project Learnin8.' School Prints 1.447 Collection Conservation 8.823 Exhibitfon Sheila Hick5 63.244 Learning.. Gallery Enrirhment Pilot Pro8ramme 53.202 Exhibitions- Hepworth 2021 39.2CKI Acquisitions 5,000 Collections & Exhibitions 123.( Art Fund Ceramics Project 30.0 Exhibition5- Hepworth Research Network Arts Council Catalyst= Match Funding Learning- wellbeing related The Hepworth Prize for Sculpture Iniva.. Future Collect Gott Collethon 13,IC learnin8- Dementia Café 9,CK#) Learnin8.' Imagine Better Futures Proje Le Grand Depart- Thomas HouseaRO 936 ExhibitioTh- Hannah Starkey 77.525 Spetial acquisi1Sons 17,4051 214.697 I19.￿￿• 1108.3071 1118.0261 107.364 75.046 175.3041 258 967 1%71 11.4471 18.8231 141.2441 37.177 144.1771 15.LX)O 141.3031 111.8991 134.2(Kil 15.OCQI 15.ODoI IS.1451 11841 27.(K 44.855 29.816 1,278 19781 16 1161 8,935 18.9351 3.620 13,6201 17.745 117.7451 113.1061 19.(ml 2,359 {2,3591 19361 11051 12.586.0811 77.420 2.586.081 723.996 2.787.(M)3 13.(X)7.5221 1229.0221 274.455 56 Docusign EnvÈlope ID." 2D402DC5-DC3PAD8fA3A4-CF9gM8395FO The Hepworth Wakefield NOTES TO THE FINANCIAL STATEMENT Year Ended 31 March 2023 24. MOVEMENT IN RESTRICTED FUNDS Icontinuedl Charity l April 2021 Income Expenditure Translers 31 March 2022 Art5 Council Museum5 Resilience learning: other proeramme costs Learning.. Integrated Youth Pro8ramme LearninE.' Demenria Prc¢ject 967 Learning.. School Prints 1.447 Collection Conservation 8,823 Exhibition Sheila Hicks 63,244 Le)rniTrg.' Gallery Enrichment Pilot Programme 53.202 Exhibi15tsns- Hepworth 2021 39.2CKI Acqui5ition5 s.000 Collecnons & Exhibitions 123.IX(I Art Fund Ceramics Projett 30.( Exhibits"ons- Hepworth ReSea￿h Network Arts Council Catalyst.. Match Funding Learnin8- wellbeing related The Hepworth Prize for Sculpiure Iniva.. Fuiure Collect Gott Collection 13.106 Learning- Dementia Café 9.0 Learning= Imagine Better Futures Project Le Grand Depart- Thomas Houseago 936 Exhibition - Hannah 5tèrkey 77.525 Special acquigiion5 17.4051 7.405 214.697 I19.L￿• 1108,3071 1118.0261 107.364 75,046 175.3041 258 19671 11.4471 18.8231 141,2441 37,177 144,1771 1S.CW)O 141.3031 111.8991 134,2(Kll Is.0001 15.1451 11841 27,OLKI 44,85S 29.816 1.278 131X)I 19781 16 1161 8.935 18,93SI 3.620 13.6201 17.745 117.7451 113.IL￿) 19.1KM)I 2.359 12.3591 19361 11051 12.586.081) 77.420 2.586,081 723.996 2.787.C(13 I3.￿7.522) 1229,0221 274.455 57 Docusign EnvÈlope ID." 2D402DC5-DC3PAD8fA3A4-CF9gM8395FO The Hepworth wakefi.eld NOTES TO THE FINANCIAL STATEMENT Year Ended 31 March 2023 25. ANALYSIS OF ASSETS AND LIABIIITIES BETWEEN FUNDS Group Unrestricted funds Deggnated funds ftestrKted funds 31 Maich 2023 31 March 2022 Tangible hxed assets 1.845.380 Fixed asset itwe5tments 1,167,271 Stocks 169.068 Investment5 1.158 Debtor5 187,936 Cash at bank and in hand 1,328,103 Creditois.. amount5 falling dLte within one year Dehned benelit pension scheme liabilitv 1.845,380 1,167,271 169.068 1,158 248.105 1.49).253 1.880.647 1,258.052 165.356 1,320 329,162 1.863.583 60,169 162,150 1753,8111 1753,8111 1824,8661 1315.0fy)1 At 31 March 2023 3,945,105 222,319 4,167.424 4.358.254 Charity Unrestricted funds Designated fund5 Restricted fund5 31 March 2023 31 March 2022 Tangible th.xed as5et5 285.809 Fixed asset investments 1.167.272 Stocks Investments 1.158 Debtors 441.944 Cash at bank and in hand 667,712 Creditors.. amount5 falling due within one year Delined benefi.t pension scheme liabilitv 285.809 1,167,272 226,354 1.258.053 1,158 502.113 829.862 1,320 455.087 1.453.343 60,169 162.150 1349,1131 1349,1131 1427.9311 1315.0001 At 31 March 2023 2.214.782 222.319 2.437.101 2,651.226 58 Docusign EnvÈlope ID." 2D402DC5-DC3PAD8fA3A4-CF9gM8395FO The Hepworth Wakefield NOTES TO THE FINANCIAL STATEMENT Year Ended 31 March 2023 25. ANALYSIS OF ASSETS ANO LIA81LITIES BETWEEN FUNDS Icontinuedi PRIOR YEAR ANALYSIS OF ASSETS AND LIA8ILmES BETWEEN FUNOS Group Unrestricted fvnd5 Designated funds Restricted funds 31 Mar(h 2022 31 March 2021 Tangible flxed a$5ets Fixed asset investment5 stocks 1.880.647 1.258,052 165.356 Investments 1.320 Debtors 296.744 Cash at bank and in hand 1.621.546 Creditors.. amounts falling due within one year Defined benefit penyon scheme liability 1.880.647 1.258.052 165.356 1,320 329,162 1,863,583 2,057,425 960,314 139,019 1,320 932.668 1,304.516 32,418 242,037 1824,8661 1824.8661 1767.2001 1315.(rfK)} 1315.0001 1444.0001 At 31 Marth 2022 4,083,799 274.455 4.358.254 4,184,062 Charitv Unrestricted funds Designated fvnds Restricted funds 31 March 2022 31 Marth 2021 Tangible fi.xed asset5 226.354 Fixed asset investments 1.258.053 Stocks Investments 1.320 Debtors 422,669 Cash at bank and in hand 1.2JI.306 Creditors." amounts falling due within one year Delined benefit pension scheme liability 226.354 1.258.053 312.229 960,315 834 1,320 1.085.549 1.139.532 1.320 455.087 1.453.343 32,418 242,037 1427,9311 1427.9311 1608,6691 1315.CWI 1315,0001 1444.0001 At 31 March 2022 2.376.771 274.455 2.651,226 2,447,110 26. COMPANY STATUS The company is limited by guarantee for an amount not exceeding £1 per member, including any member who ceased to be a member wiihin the prewovs twelve months. 59 Docusign EnvÈlope ID." 2D402DC5-DC3PAD8fA3A4-CF9gM8395FO The Hepworth Wakefield NOTES TO THE FINANCIAL STATEMENT Year Ended 31 March 2023 27. PENSION SCHEMES The group contributes lo two pension Schemes. Defined contrlbutlon schemè There is a Group Personal Pension Scheme. which is a defined contribution pension scheme. adMiniste￿d bv Scottish Life which is avablable io all other employees not part of the defined benetit scheme. The charge to the ststement of financial activitie5 in respert of defined contribution scheme was £90.99412022'. £77,765). As at 31 March 2023. contriburions of £2,23212022'. £9,741) due in respect of the current reporting period had not been paid over to the scheme. Defined benefft stheme There is a defined benefit scheme operzled by the West YDrk5hire Penson Fund which is onw available to staff who have previously contributed to the scheme. Under the scheme. the employees are entitled to retirement benehts based on a combinaiion of length of service and final salary on attainmeni of a retiiement age of 65155 with employer consent). No other post-retirement benefits are provided. The scheme is a funded scheme. The most recent actvarial valuations of scheme asset5 and the preserbt value of the deftnéd bÈnefit obligation were carried rjut at 31 March 2023 by Aon Hewitt. As the fund is ¢losed to new entrants. the Cosi of the future accryal a5 a proportion of the salary rdl can be experted to bncrease a5 the average age Df the rnernbership increases. on a given ba￿$. Adjustment to the valu31ion at the year*nd have been made based on the followin8 assumptions.. 2023 2022 Key assumptions-. DI￿0￿￿t rate Expected rate of 5a13ry increases Expettèd rate of increase for future pension increases Rate of inflation 3.85 4.15 Mortality assumptions= The assumed life expectations on retirement at age 65 are= 2023 2022 year5 vears Retiring today-. Males Females Retiring in 20 years.. Males Females 21.6 24.6 21.8 25.7 22.9 25.7 22.5 25.7 60 Docusign EnvÈlope ID." 2D402DC5-DC3PAD8fA3A4-CF9gM8395FO The Hepworth Wakefield NOTES TO THE FINANCIAL STATEMENT Year Ended 31 March 2023 27. PENSION SCHEMES Icontinued) Arnounts iecognised in the staternent of financial a￿￿tr"es- 2023 2022 Current service cost Nei interest on defined benefft liability 44.000 9.IXJO 45,rAIo Total cost5 53.0 54,000 Amount5 taken to other comprehensive incorne: 2023 2022 Actual return on scheme assets 353.(Kl) 77,(KM) The amount included in the balance Sheet arising from obligailons in respeu of its defined benefit retirement benefii schemes is a5 IDIIows= 2023 2022 Present value of defined benefit obligations Fair value of scherne assets Restriction in scheme assets {798,fA)01 848.(K)O 150.0001 11.129,(M)ol 814.OLW) Total liability recognised 315,IXIOI Reconciliation of scheme asset5 anfl liabilities= Assets Liabilities Total At l April 2022 Benelits paid Efflployer contribuiions Parricipant contributions Current service cost Interest incomellexpensel Re-measurement gainslllosse51 Actuarial 8ainslllossesl 814.C(M) ii.cKK)I 15.orK) Ii.(MKJ 11,129,000) I,otrf) Iii,oo)I 1315.0001 4.0￿1 11.000 144.(KN)I 19.0001 113.0001 366,WO 144,0(X)I 131.0001 22,CMMI 113.CCQI 366.¢J)O At 31 March 2023 1848.¢Xrf)I 61 Docusign EnvÈlope ID." 2D402DC5-DC3PAD8fA3A4-CF9gM8395FO The Hepworth Wakefield NOTES TO THE FINANCIAL STATEMENT Year Ended 31 March 2023 27. PENSION SCHEMES Icontt"nued) The lair value of the plan assets was- 2023 2022 Equity instruments Property Government bonds Corporate bonds Cash Other 649,0 33,000 60.000 39.(hX) 24.LKIO 9.0￿) 28,orKI 59,(KKJ 39.000 20.000 18.LX)O 848.OC#) 814,OCKI The returns on plan assets was: Fair value of ssets Fair value of a55et5 2023 2022 Interest income Return on plan assets less interest income 22,(KM) 113.C(JOI 15.000 62.￿)0 Total return on plan assets 77.0 62 Docusign EnvÈlope ID." 2D402DC5-DC3PAD8fA3A4-CF9gM8395FO The Hepworth Wakefield NOTES TO THE FINANCIAL STATEMENT Year Ended 31 March 2023 28. RELATED PARTY TRANSACTIONS The following related party transactions took place in the year.. 2023 2022 l The remvneratton of key management personnel. who are rnembers of the executive team L5 as follow A8gre8ate cownpensation 437,428 311,578 bl Othèr relat￿ pèrries.. wakeh.eld Metropolitan Borough Countil: Service CorbCESSitsn agreemenl income Services and goods purchased 750.CKKJ 42.787 875.000 50.398 Purchases and tran5fErs fvom The Hepworth Wakefield Enterprises Ltd Recharge of cosis to The Hepworth Wakefield Enterprises Ltd Recharge ol costs to The Hepworth Wakefbeld Garden Trust Gift aid payment from The Hepworth Wakelield Enterprises Ltd Donations and patron subscription from Steve Langan. Chair Donation5 and patron Subscription frown Stuart Fletcher, Interim Chair Donations Irom Earl & Countess of Harewood's Charitable Trust IDiane Howse was a Trustee in 20221231 (Yonations from Edwina Sassoon. Trustee Patron subscription from Andrew Hèigh. Trustee Membership from Priya Khanchandani. Trustee Membership from Richard Warburton. Trustee Membership from Merran Mccrae. Trustee 161,813 396.817 270,112 35.230 31,449 65.C 3.Crf)O 3.ot 20,480 51x1 500 500 480 33 33 137 Al 31 March 2023 related party transacbon5 Outstanding with non*roup organisation were £NII 12022.. Nil) within creditorsand £Nil wiihin debtors. Related party balances With 8roupcompanies were £Nil within creditors 12022.. £Nill and E272.402 wiihin debtors12022= £181.1661. 63 Docusign EnvÈlope ID." 2D402DC5-DC3PAD8fA3A4-CF9gM8395FO The Hepworth Wakefield NOTES TO THE FINANCIAL STATEMENT Year Ended 31 March 2023 29. RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH FLOW FROM OPERATING ACTIVITIES Group 2023 2022 Net movement in funds Investment income Losses/lgainsl on inveslments Depreciation charge Defined benefit pension schemes lossesjlgainsl Defi'ned benefit pension schemes finance cost (Int￿aSe) in stock5 IDecre3sel/increase in debiors IlncreasellDe(rease in creditors 1190.8291 120.7821 97,748 153.1 353.0 38.000 13,7121 181.0581 171,0551 174.192 117.6561 139.6791 190.526 1167.0001 38,000 126,3371 603.506 57,666 274,412 813.218 Group 2023 2022 Cash and cash equivalents: Cash eoubvalents - investments Cash at bank and in hand 1,1 1.490,253 1,320 1.863.583 1.491,411 I.864.￿3 30. OPERATING LEASES At 31" March 2023 the total of The Hepworth Wakefield's future minimum lease payments under non- cancellable operating leases wa5: Group 2023 2022 Awnounts due within I year Amounts due within 1- 5 years 2.155 5.388 2.155 7,543 7.543 9,698 31. CAPITAL COMMITMENTS At year end there we￿£apItal commitmentsol£nil12022: £56.1121 bein8 a55ets contracted for, but not provide in the hnancial statements. 64