Charity registration number 1143772 Company registration number 07767380 (England and Wales) ARTS & BUSINESS CYMRU ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024
ARTS & BUSINESS CYMRU CONTENTS Page Trustees report ststement of trustees responsibilities Statement of financial activities 10 Balance sheet 11 Notes to the accounts 12-23
ARTS & BUSINESS CYMRU TRUSTEES REPORT (INCLUDING DIRECTORS. REPORT) FOR THE YEAR ENDED 31 MARCH 2024 The trustees present their annual report and financial statements for the year ended 31 March 2024. The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's goveming document, the Companies Act 2006 and "Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)" Objectives and activities Arts & Business {A&B) Cymru's vision is to create a Wales where business and the arts can connect and thrive. Its mission is to embed business into the arts and creativity inlo business. The ultimate aim is to aid the success of both sectors for the good of individuals and communities across Wales. Objects The objects of the charity are to promote, for the benefit of the public, within the country of Wales, the advancement of arts, culture and heritage and the promotion of the efficiency of charities. In particular but not limited to the promotion of philanthropy amongst businesses and individuals., the promotion of partnerships between arts organisations and businesses, and the provision of training to and promotion of best practice in the govemance of Welsh arts charities. Public benefit We have referred to the guidance contained in the Charity Commissions, general guidance on public benefit when reviewing our aims and objectives and in planning our future activities. A&B Cymru's aim is to assist advancement of the arts and the promotion of the efficiency of charities, in particular but not limited to the promotion of philanthropy amongst businesses and individuals,. the promotion of partnerships beeen arts organisations and businesses, and the provision of training to and promotion of best practice in the govemance of Welsh arts charities. Strategies for achieving objectives A&B Cymru knows that when business and the arts work together in true partnership, both become stronger with the results benefiting society in far reaching and tangible ways. The team works with a range of arts professionals, from individual practitioners to flagship organisations and the private sector, from micro businesses through to multi-national corporations. Its work has a positive impact on people and communities across Wales. In its current Business Plan, A&B Cymru sets out four strategic aims to help drive the organisation towards the achievement of its mission. They are: To grow A&B Cymru's income from a range of public and private sector sources To develop the income generating and business skills of the arts To secure increased investment from the private sector to the arts To encourage business success through creativity Achievements and performance A&B Cymru aims to achieve its goals through the delivery of a suite of unique programmes and services. In 2023124, the team continued to respond to the ongoing financial crisis, striving to assist the recovery and sustainability of organisats-ons across Wales. As a charity which exists to support business and the arts, A&B Cymru's programmes are in high demand as both sectors face exireme, unforeseen and unprecedented challenges. arising from the ongoing financial crisis and the after-effects of significant inflation.
ARTS & BUSINESS CYMRU TRUSTEES REPORT (CONTINUED){INCLUDING DIRECTORS. REPORT) FOR THE YEAR ENDED 31 MARCH 2024 As in previous years, A&B Cymru's activity induded charitsble work for the arts and commercial work financed by the private sector, with any surplus being transferred back to the charity: Charitable work A&B Cymru's work for the arts has two aims provided free or at highly subsidised rates. developing income and developing skills. All services are Arts Membership- During 2023124, arts membership reached an all-time high of 172 subscribers, ranging from individual artists to major institutions. Benefits indude neorking, leaming, development and showcasing opportunities, as well as tailored advice and access to ServIS and discounts. Bursaries fvnded by Hodge Foundation were awarded to 12 small organisations vthose primary work benefits under-represented people and communities. The Arts Steering Panel, a group of arts leaders drawn from across Wales which meets bi-monthly on Zoom to discuss the ongoing challenges and priorities of the sector, entered its third year of operation. The Panel focused its discussions on sustainability, the Arts Council of Wales Investment Review, the impact of the current economic dimate and Welsh Govemment strategies. Arts Training Courses - A&B Cymru uses its expertise and network to provide high-quality training courses in diversity, fundraising, governan and specific business expertise. These tailored sessions are delivered by a mixture of A&B Cymru staff and experrenced external specialists. The majority of courses were delivered online, removing geographical barriers and time constraints and reducing the carbon footprint for arts managers across Wales. The courses are recognised as high quality training that would otherwise be prohibitively expensive, provided at subsidised rates. During 2023124, 26 courses were attended by 213 arts managers. Funded by the Hodge and Moondance Foundations. Cufturestep invests in innovative partnerships of all kinds between business and the arts, enhancing projects and increasing their long-term effectiveness. Tailored to the specific needs of Wales, the scheme is designed to encourage new sponsorship and develop established corporate engagement. All projects must address at least one of the scheme's priorities: Diversity,. Employees, the Environment; Health & Wellbeing., Kids" Older People.. Tackling Poverty,. the Welsh Language. In 2023124, the scheme invested £91,021 into 30 projects, levering £341,843 from business directly to the arts. Future Proof an initiative, funded by Arts Council of Ilvales Lottery and Esmée Fairbairn Foundation, combines two innovative programmes Creative Intemships and Creative ApprentIshIps. The Creative Intemships Programme places recent graduates into arts organisations for 10 months as trainee fundraisers. Since its inception in 2013, the scheme has enabled 35 skilled. professional fvndraisers to enter the arts workforce. Between them, they have so far raised over £4.8 million for the sector in Wales. The 2023124 programme enabled three interns to undertake paid placements. The Creative Apprenticeships Programme places individuals who face significant barriers as a result of ra. disability or SOCiOveconomic circumstances into arts organisations on 10-month placements. Through this programme, A&B Cymru is helping to create alternative futures for individuals from all backgrounds. In 2023124, four apprentices undertook paid placements. Each intern and apprentice received structured support from the host organisations, mentoring from external specialists and free of charge access to A&B Cymru training courses. The Professional Development Programmes bring essential business skills to the arts through Board placements, skills transfer projects and mentoring. In 2023124, 32 businesses were engaged in 78 placements, valued at £512,127. During 2023124, A&B Cymru unsuccessfully applied for Twst funding to support a new programme to support capacity building in the arts, Springboard. This was due to a reduction in funds available from Trusts & Foundations following lockdown, combined with growng and intense competition for funds. This resulted in a loss for the charity. The Board and team have since commissioned an independent review of A&B Cymru's structure and operation, with the aim of establishing a sustainable financial model as a matter of priority. This review will conclude in Autumn 2024.
ARTS & BUSINESS CYMRU TRUSTEES REPORT (CONTINUED){INCLUDING DIRECTORS. REPORT) FOR THE YEAR ENDED 31 MARCH 2024 Commercial work A&B Cymru's 70+ business members range from sole traders to multi-national corporations. Companies join to address specific objectives through arts partnership. These encompass creative marketing, community engagement and effective staff motivation, training and development. A&B Cymru's Brokerage SeNice was in high demand from business members through the year. The team was commissioned by nine businesses to identify arts partnerships which would achieve focused objectives. The resulting collaborations brought a total of £50,000 investment from business directly to the arts. The A&B Cymru Awards exist to encourage, acknowledge and celebrate exemplary businesslarts partnerships. The 2023 ceremony was held at The Coal Exchange, Cardiff Bay, on 18 May. In addition to providing a high-level opportunity to advocate the power of partnerships between the private sector and the arts, the event brought a surplus of over £22,000. Financial review The Statement of Financial Activities for the company is shown on page 11. During the year charity made a surplus on unrestricted funds of £18.056 (2023.. £11,164 deficit). Before the exceptional item, the charity made a deficit on unrestricted funds of £49,059. Unrestricted reserves at 31 March 2024 are £210.568 (2023: £192,511). Of these reserves £108.799 {2023'. £118,706) have been designated {see notes to the financial statements). The charity's free reserves were £101,769 (2023: £71.440) (exduding fixed assets. investments and designated funds). Pension A&B Cymw operates a Group Stakeholder Pension Plan for all employees wth more than three months seNice. It meets the current workplace pension requirements. Reserves policy In accordance with good governance, £108,799 (2023= £118,706) is held in reseNes, as an unrestricted contingency fund to cover three months operating costs and winding up costs. induding redundancy payments. The amount is reviewed annually and increased or decreased as required. Investment policy The charity s investments are made in accordance the Trustees, investment powers which are set out in the charity's governing document. The policy is to obtain the best return on the funds surplus to the charity's immediate needs whilst minimising the risk of capital depreciation. A review of the policy is undertaken on an annual basis by the Finance and Audit Committee to ensure it remains appropriate. During the period all funds were held on deposit with A&B Cymru's bank (Unity Trust Bank plc) to ensure the charity had sufficient cashflow to undertake its activities. Trading subsidiary A&B Cymru carries out all its non-charitable trading activities through a wholly owned subsidiary company. Arts & Business Cymw Trading Limited. The directors who served during the year were: David Landen" Rachel Jones Trevor David Morpeth" "indicates a non-executive director. All the activities of the subsidiary are managed by the staff of A&B Cymru and all surplus is distributed back to the parent charity through gift aid.
ARTS & BUSINESS CYMRU TRUSTEES REPORT (CONTINUED){INCLUDING DIRECTORS. REPORT) FOR THE YEAR ENDED 31 MARCH 2024 Risk Management The Trustees are responsible for the management of the risks faced by the charity, with particular reference to internal control systems and the mitigation of risk. The Board reviews a risk evaluation statement prepared by the Chief Executive on an annual basis. The twstees have assessed the key risks to which the charity is exposed and consider them to be.. The inability to replace lost core fvnding The loss of the key management personnd The loss of reputation The key controls used include= Fomial agenda and minutes for all meetings of the Trustees and Board sub-committees Detailed terms of referen for the Board and its sulFcommittees Comprehensive strategic planning, budgeting and management accounting Established organisational and govemance structure and reporting lines Fomial written policies A risk evaluation statement which is reviewed on a regular basis by the Trustees and the Chief Executive Hierarchical authorisation and approval levels Through the established risk management processes. the Board is satisfied that the major risks identified have been adequately guarded against where necessary. It recognises that systems can provide only reasonable, but not absolute, assurance that major Funding s are being adequately managed. Grants payable Grants payable are payments made to third parties in the furtherance of the charitable objectives of the charity. The grants are recognised where the trustees have agreed to pay the grant and the recipient has a reasonable expectation that they will receive a grant, provided they comply with the terms of the agreement. Grants offered subject to terms and conditions which have not been met at the year-end date are noted as a commitment but not accrued as expenditure. Funding Position and Plans for the Future In 2023124, A&B Cymru received core funding of £50K from Arts Council of IAÈles and £40K from Welsh Government. A&B Cymru continues to strive to diversify its fvnding. The charity has commissioned The Funding Centre to undertake a Business Review of its operation to assist the establishment of a sustainable financial model. The findings ofthe review will be published in Autumn 2024. Structure, governance and management Governance Arts & Business Cymru (A&B Cymru) was incorporated as a company, limited by guarantee and not having any share capital on 8 September 2011. It is registered as a charty with the Charity Commission and regarded as such by HM Revenue and Customs. Its goveming document is its Memorandum and Artides of Association. Staffing structure The team includes eight staff, five of which are fvll-time. They are the Chief Executive, Director of Business Development & Operations, Business Development Manager, Arts Development Manager, Arts Development Officer, Administrator, Finance Manager and North Wales Partnerships Director.
ARTS & BUSINESS CYMRU TRUSTEES REPORT (CONTINUED){INCLUDING DIRECTORS. REPORT) FOR THE YEAR ENDED 31 MARCH 2024 Directors and Trustees The directors of the charitable company are its Trustees for the purposes of charity law and are collectively referred to as the Trustees throughout this report. Recruitment, appointmen( induction and training of Trustees Trustees are appointed by the Board. Al new Trustees receive an induction pack containing the following.. A&B Cymru's handbook. The current business plan. The most rent accounts. A general information pack on all A&B Cymru's programmes and servIs. The role of Trustees sheet. The minutes of the last Trustees meeting. Trustees are invited to attend training courses wn by A&B Cymw's Independent Examiner, Azets, as well as its own governance masterclasses and seminars. No new Trustees were appointed during 2022123 - two Trustees resigned - one had reached the end of their temi and the other had a change of personal circumstances. Key Management Personnel The key management personnel for the current financial year is considered to be the Chief Executive. The remuneration of the key management personnel is benchmarked to market rates. Organisational structure and decision-making process The Board of Trustees must have at least three and not more than 10 members to administer the charity- There is an agreed statement of the role and responsibilities of the Board and its members. At no time during the year did any Trustee have a beneficial interest in the charity. There is one SucoMmittee of the Board - Finan & Audit. This committee meets immediately before each Board meeting. The membership of the committee is set out on page 7. Their terms of reference are as follows.. Finance & Audit Committee To have, on behalf of the Trustees, an overall watching brief over all financial aspects of the charity's activities, to advise the Trustees in regard to the charity's financial statemenls, to ensure the maintenance of proper financial records and controls and to set and monitor the charity's annual delivery plan and financial performance. The Board has appointed a Chief Executive to manage the day-tt>day operations of the Charity and she has delegated authority for a wide range of operational matters. There is a statement of matters reserved to the Board. They indude.. Setting overall strategy and policy. Approving the budget and business plan. The appointment and removal of Trustees (induding the chair). The appointment and removal of the Chief Executive and setting their terms and conditions. Consideration of fundamental issues conceming A&B Cymru's relationship with its principal. Consideration of fundamental issues conceming A&B Cymw's relationship with the Charity. Approval of major capital expenditure and the acquisition of freehold propety or leases. Setting the charity's reserves. diversity and investment policies. Other groups In addition to the Board, groups of individuals are associated both fomially and infom)ally with A&B Cymru - the Investment Panel and the Arts Steering Panel. The Investment Panel's role is to detemiine which businesslarts partnerships are awarded cash investment through A&B Cymru's Culturestep (see page 2 for a brief description of this programme). Chaired by A&B Cymru's Chief Executive, the panel consists of 7 voting members and meets five times per year on Zoom. Each member receives an induction prior to joining. The Panel operates on the principle of collective responsibility and all members have an equal voice. The Arts Steering Panel exists to ensure a regular and productive dialogue between A&B Cymru and the arts and provide an opportunity to share and discuss priorities and challenges. The membership of the 2023124 panels is listed on page 8.
ARTS & BUSINESS CYMRU TRUSTEES REPORT (CONTINUED){INCLUDING DIRECTORS. REPORT) FOR THE YEAR ENDED 31 MARCH 2024 Reference and administrative details Charity number 1143772 (Registered September 2011) Company number 7767380 (Registered September 2011) Registered address 16 Museum Place Cardiff, CF10 3BH Administrative office 16 Museum Place Cardiff, CF10 3BH Independent examiner Andrew Howells Azets Audit Services Ty Dem, Lime Tree Court Cardiff Gate Business Park Cardiff CF23 8AB Bank and branch address Unity Trust Bank PIC 4 Brindleypla Birmingham B12JB Solicitors Geldards LLP 4 Capital Quarter Tyndall St Cardiff CF10 4BZ Trustees Catherine Elizabeth Ray Owens- resigned 19 June 2023 Atwel Gruffydd - resigned 15 June 2023 Shone Hughes Trevor David Morpeth. Tania Jane Rawlinson Louisa Scadden David John Landen. Nkechi Allen-Dawson Claire Charlton- appointed 24 July 2023 Sadique Maskeen- appointed 1July 2023, resigned 19 May 2024 Anthony Wedlake- appointed 1 July 2023 Ruth Fabby- appointed 19 July 2024 Key management personnel Rachel Jones - Chief Executive 'Indicates a member of the Finance & Audit Committee
ARTS & BUSINESS CYMRU TRUSTEES REPORT (CONTINUED){INCLUDING DIRECTORS. REPORT) FOR THE YEAR ENDED 31 MARCH 2024 Culture Step Panel Kathy Brown Rachel Jones Robert Lloyd Griffiths Denise Lord Samantha Maskrey Nigel Petrie Lynne Sheehy Richard Tynen Arts Steering Panel Andy Healy Angela Rogers Carys Wynn&Morgan Gemma Durham Claire Furlong Liam Evans-Ford Meinir Llwyd Roberts Owain Gwilym Penny King Rhiannon White Sara Clutton Sarah Ecob Sarah Horner Simone Joslyn Sita Thomas
ARTS & BUSINESS CYMRU STATEMENT OF TRUSTEES RESPONSIBILITIES FOR THE YEAR ENDED 31 MARCH 2024 The trustees, who are also the directors of Arts & Business Cymru for the purpose of company law, are responsible for preparing the Trustees Report and the financial ststements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Acpted Accounting Practice). Company Law requires the trustees to prepare financial ststements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resou$ and application of resources, induding the income and expenditure, of the charitable company for that year. In preparing these financial statements, the trustees are required to= select suitable accounting policies and then apply them consistently- obseNe the methods and principles in the Charities SORP; make judgements and estimates that are reasonable and prudent., and prepare the financial statements on the going concem basis unless it is inappropriate to presume that the charity 11 continue in operation. The trustees are responsible for keeping adequate accounting records that disclose wth reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The trustees are responsible for the maintenance and integrity of the charity and financial information included on the charity's website. Legislation in the United Kingdom goveming the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. By order of the Board of Trustees Trevor David Morpeth - Trustee Trustee 2011212024 Date:...........................................
ARTS & BUSINESS CYMRU INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF ARTS & BUSINESS CYMRU I report to the trustees on my examination of the finanaal statements of Arts & Business Cymru (the charity} for the year ended 31 March 2024. Responsibilities and basis of report As the trustees of the charity {and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordan with the requirements of the Companies Act 2006 (the 2006 Act). Having satisfied myself that the financial statements of the charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the charity's financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act). In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145{5){b) of the 2011 Act. Independent examinerfs statement Since the charity's gross income exceeded £250.000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that l am qualified to undertake the examination because l am a member of Institute of Chartered Accountants in England and Mkles, which is one of the listed bodies. I have completed my examination. I confimi that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect- accounting records were not kept in respect of the charity as required by section 386 of the 2006 Act: or the financial statements do not accord wth those records" or the financial statements do not comply with the accounling requirements of section 396 of the 2006 Acl other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination., or the financial statements have not been prepared in accordan with the methods and principles of the Statement of Recommended Practice for accounling and reporting by charities applicable to charities preparing their accounts in accordan with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached. Andrew Howells Azets Audit Seriices Ty Derw, Lime Tree Court Cardiff Gate Business Park Cardiff CF23 8AB United Kingdom 20 tember 2Q?dl
ARTS & BUSINESS CYMRU STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2024 Unrestricted Unrestricted funds funds 2024 2023 Notes Income from: Donations and legacies Charitsble activities Investments 391,468 39,340 4,387 429.965 36.363 1.417 Total income 435,195 467,745 enditure on: Charitable activities Exceptional item 484,254 (67,115) 478,909 Total expenditure 417,139 478,909 Net expenditure for the year before exceptional item (49,059) 11.164 Net incomellexpenditure) for the yearl Net movement in funds 18,056 (11,164) Fund balances at 1 April 2023 192,512 203.675 Fund balances at 31 March 2024 210,568 192,511 The statement of financial activities indudes all gains and losses recognised in the year. All income and expenditure derive from continuing activities. The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006. 10-
ARTS & BUSINESS CYMRU BALANCE SHEET AS AT 31 MARCH 2024 2024 2023 Notes Fixed assets Tangible assets Investments 13 12 4.335 2.364 4,336 2,365 Current assets Debtors Cash at bank and in hand 14 83,477 288,496 52,477 336,419 371.973 388,896 Creditors: amounts falling due within one year 15 (165.741) (198.750) Net cuent assets 206.232 190.146 Total assets less curnt liabilities 210,568 192,511 Income funds Unrestricted funds Designated funds General unrestricted funds 17 108,799 101,769 118,706 73,805 210.568 192,511 210.568 192,511 The company is entilled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 March 2024. The directors aCknOedge their responsibilities for complying with the requirements of the Companies Act 2006 th respect to accounting records and the preparation of financial statements. The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476. These financial statements have been prepared in accordan with the provisions applicable to companies subject to the small companies regime. 1411112024 The financial statements were approved by the Trustees on ......................... TvEVtY Trustee Company registration number 07767380 11
ARTS & BUSINESS CYMRU NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Accounting policies Charity information Arts & Business Cymru is a charitable company limited by guarantee incorporated in England & Wales. The registered office is 16 Museum Place, Cardiff CF10 3BH. 1.1 Accounting convention The financial statements have been prepared in accordan with the charity's governing document, the Companies Act 2006, FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland" {°FRS 102") and the Charities SORP "Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to chanties preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland {FRS 102)" (effective 1 January 2019). The charity is a Public Benefit Entity as defined by FRS 102. The charity has taken advantage of the provisions in the SORP for charities not to prepare a Statement of Cash Flows. The financial statements are prepared in steding, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £. 1.2 Going concern At the time of approving the financial statements. the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existen for the foreseeable future. Thus the trustees continue to adopt the going concem basis of accounting in preparing the financial statements. 1.3 Charitable funds Unrestricted funds are available for use at the discretion of the trustees in furtheran of their charitable objectives unless the funds have been designated for other purposes. Designated funds are unrestricted funds eamiarked by the management committee for particular purposes. 1.4 Incoming resources Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be reived. Income including donations. gifts and grants that provide core fvnding or are of a general nature are recognised where there is entitlement, probable of receipt and the amount can be measured with sufficient reliability. Such income is only deferred when the donor specifies it must be used in future accounting periods or the donor has imposed conditions which must be met before the charity has unconditional entitlement. Investment income is recognised on a re1vable basis. 12-
ARTS & BUSINESS CYMRU NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Accounting policies {Continued) 1.5 Resources expended Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocaled directly to that activity- Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned beeen those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset's use. Expenditure is classified under the following activity headings= Expenditure on charitable activities indudes all costs relating to the furtherance of the charity's objectives as stated in the Trustees report Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred. Govemance costs indude such rtems as independent examination fees, legal advice for Trustees., and costs associated with constitutional and statutory requirements. Grants payable Grants payable are recognised in full in the year in which they are approved by the charity and communicated to the recipient, irrespective of the period for which the investment is payable. This is the point at which the charity has an obligation, legal or constructive, to meet this expenditure. There are normally certain conditions that must be met before the investment is actually paid over, however, it is reasonably certain that these will be met and the payment made. Netting off income and expenditure Income and expenditure are stated gross. 1.6 Tangible fixed assets Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses. Depreciation is recognised so as to vnite off the cost or valuation of assets less their residual values over their useful lives on the following bases= Office equipment 25% reducing balance 1.7 Fixed asset investments A subsidiary is an entity controlled by the charity. Control is the power to govem the financial and operating policies of the entity so as to obtain benefits from its activities. Investments relate to 1000A of the share capital of the charity's wholly owned trading subsidiary and is recognised at cost. 1.8 Cash and cash equivalents Cash and cash equivalents include cash in hand. deposits held at call with banks, other short-term liquid investments with original maturities of three months or less. and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities. 13-
ARTS & BUSINESS CYMRU NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Accounting policies {Continued) 1.9 Financial instruments The charity has elected to apply the provisions of Section 11 'Basic Financial Instruments, and Sedion 12 'Other Financial Instruments Issues, of FRS 102 to all of its financial instruments. Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument. Financial assels and liabilities are offset, wth the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. Basic financial assets Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price induding transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a finanang transaction, where the transaction is measured at the present value of the future receipts di$Unted at a market rate of interest. Financial assets classified as receivable within one year are not amortised. Derecognition of financial assets Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the charity transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transfeed to another paty that is able to sell the asset in its entirety to an unrelated third paty. Basic financial liabilities Basic financial liabilities, induding creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, vthere the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised. Debt instruments are subsequently carried at amortised cost. using the effective interest rate method. Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are dassified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. Derecognition of financial liabilities Financial liabilities are derecognised when the charity's contractual obligations expire or are discharged or cancelled. 1.10 Employee benefits The costs of short-temi employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets. The cost of any unused holiday entrtlement is recognised in the period in vthich the employee's services are received. Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide temiination benefits. 1.11 Leases Rentals payable under operating leases are charged as an expense on a straight line basis over the term of the relevant lease. 14-
ARTS & BUSINESS CYMRU NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Critical accounting estimates and judgements In the application of the charity's accounting policies. the trustees are required to make judgements, estimates and assumptions about the carying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experien and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods vthere the revision affects both current and future periods. Donations and legacies Unrestricted Unrestricted funds funds 2024 2023 Donations and gifts National Arts government grants 250,718 140,750 289,965 140,000 391,468 429,965 Donations and gifts Arts & Business Trading Limited Creative Internships Culturestep Investment Programme Prosper Skills for Success Impacl Circle Raffle & Sundry Other 77,879 50,000 120,000 52.454 60.000 119.084 25,000 25,000 1,581 1,846 5,000 1,049 1,790 250,718 289,965 Investments Unrestricted Unrestricted funds funds 2024 2023 Interest receivable 4,387 1,417 15-
ARTS & BUSINESS CYMRU NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Charitable activities 2024 2023 Arts membership Conferencelseminar fees Arts consultancy fees Sundry income 30,050 9,190 22.391 8.530 5.233 209 100 39,340 36,363 Grants payable 2024 2023 Grants to institutions.. Grants and services to the arts, advocacy, research & events 164,134 202,483 The charity made no grants to the Investment Programme IAlales during the year (2023.. one). Charitable activities 2024 2023 Staff costs Other direct costs Premises 289,362 10,750 17,257 240.655 16.339 16.882 317,369 273,876 Grant funding of activities (see note 6) Share of governan costs (see note 9) 164,134 2,751 202,483 2,550 484,254 478,909 Exceptional item 2024 2023 Exceptional item 167,115) 167,115) 16-
ARTS & BUSINESS CYMRU NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Exceptional item {Continued) The charity has reviewed rtain historic liabilities retained and concluded that there is no likelihood of those liabilities being settled, consequently those liabilities have been released to the income and expenditure account. Support costs Support Governance costs costs 2024 2023 Independent examination fee 2.751 2,751 2.550 2.751 2,751 2.550 Analysed between Charitable activities 2,751 2,751 2,550 Governan costs indudes payments to the independent examiner of £2,500 (2023.. £2,550) for the independent examination of the finanaal statements. 10 Employees The average monthly number of employees during the year was.. 2024 Number 2023 Number Permanent staff Employment costs 2024 2023 Vwdges and salaries Social security costs Other pension costs 258,340 19,382 11,640 213,694 16,840 10,121 289,362 240,655 No trustees were reimbursed for expenses or reiVed remuneration during the current or prior year. Key management personnel The total amount of employee benefits (induding salary, employers national insurance and pension contributions) received by the key management personnel for their services to the charity during the year totalled £81,368 {2023'. £77.835). 17-
ARTS & BUSINESS CYMRU NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 10 Employees {Continued) The number of employees whose annual remuneration was more than £60,000 is as follows= 2024 Number 2023 Number £60,000- £69,999 11 Taxation As a registered charity, Arts & Business Cymru is entitled to the exemption from taxation in respect of income and capital gains received with sections 478489 of the Corporation Tax Act 2010 and section 256 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects purposes only. 18-
ARTS & BUSINESS CYMRU NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 12 Fixed asset investments Other investments Cost or valuation At 1 April 2023 & 31 March 2024 Carrying amount At 31 March 2024 At 31 March 2023 2024 2023 Other investments comprise.. Notes Investments in subsidiaries 19 13 Tangible fixed assets Computers Cost At 1 April 2023 Additions 4,639 2,860 At 31 March 2024 7,499 Depreciation At 1 April 2023 Depreciation charged in the year 2.275 889 At 31 March 2024 3,164 Carrying amount At 31 March 2024 4,335 At 31 March 2023 2,364 14 Debtors 2024 2023 Amounts falling due within one year: Trade debtors Amounts owed by subsidiary undertakings 11,371 72,106 4,678 47,799 83,477 52,477 19-
ARTS & BUSINESS CYMRU NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 15 Creditors: amounts falling due within one year 2024 2023 Notes Other taxation and social security Deferred income Trade creditors Other creditors Accruals 7,641 107,015 2,350 1,980 46,755 5.053 62.000 4.285 16 127,412 165,741 198,750 16 Deferred income 2024 2023 Arising from grants 107,015 62,000 2024 2023 Deferred income is induded within.. Current liabilities 107,015 62,000 Movements in the year.. Deferred income at 1 April 2023 Released from previous periods Resources deferred in the year 62.000 {62,000) 107.015 58,600 {58.600) 62.000 Deferred income at 31 March 2024 107.015 62.000 -20-
ARTS & BUSINESS CYMRU NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 17 Designated funds The income funds of the charity include the following designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.. Movement in funds Incoming resources Balance at 1 April 2022 Balance at 1 April 2023 Resources Balance at expended 31 March 2024 Designated 115,676 3.030 118.706 (9,907) 108.799 115,676 3,030 118,706 (9,907) 108,799 Designated Funds The designated fund as detailed in the trustee report represents 3 months operating costs reserves. 18 Analysis of net assets between funds Unrestricted Designated funds funds 2024 2024 Total Unrestricted Designated funds funds 2023 2023 Total 2024 2023 Fund balances at 31 March 2024 are represented by.. Tangible assets Investments Current assetsl{liabilities) 4,335 4,335 2,364 2,364 97,433 108,799 206,232 71,440 118,706 190,146 101,769 108,799 210,568 73,805 118,706 192,511 19 Subsidiaries These financial statements are separate charity financial statements to Arts & Business Cymru Trading Limited. Details of the charity's subsidiaries at 31 March 2024 are as follows= Name of undertaking Registered office Natu of business Class of shares held °fi Held Direct Indirect Arts & Business Cymru Trading Limited England and Wales Trading arm of charity Ordinary 100.00 21
ARTS & BUSINESS CYMRU NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 19 Subsidiaries {Continued) The aggregate capital and reserves and the sU11 for the year of subsidiaries excluded from Consolidation was as follows.. Name of undertaking ProfiU(Loss) Capital and Reserves Arts & Business Cymnj Trading Limited 77.879 20 Called up share capital The company is limited by guarantee and has no share capital. 21 Pensions The charity operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the charity in independendy administered funds. The pension cost charge represents contributions paid by the charity to the fund and amounted to £11,640 (2023.. £10,121). Contributions outstanding at the year end amounted to £1.980 {2023= £nil).
ARTS & BUSINESS CYMRU NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 22 Operating lease commitments At the reporting end date the charity had outstanding commitments for fijture minimum lease payments under non-cancellable operating leases. which fall due as follows= 2024 2023 Within one year Beeen and five years 11,449 19,388 7,688 809 30,837 8,497 23 Related paty transactions During the year the charity's wholly owned subsidiary Arts & Business Cymru Trading Limited gifted £77,879 to the charity (2023.. £52,454). At the year end Arts & Business Cymru Trading Limited owed the charity £72,10612023.' £47.799). During the year the charity also received £70,000 (2023.. £50,000) from MOOndan Foundation. There were no amounts outstanding at the current or prior year end. The charities are related by way of common trustees. -23-