DoGuSign Envelope ID". F02D415D.08C54EBA.ACB5-B6FF34BE1EAC Registered number: 08117915 Charity number: 1149979 THE AUDIENCE AGENCY (A Company Limited by Guarantee) TRUSTEES. REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 MARCH 2021
DoGuSign Envelope ID". F02D415D.08C54EBA.ACB5-B6FF34BE1EAC THE AUDIENCE AGENCY IA Company Limited by Guarantee) CONTENTS Page Reference and Admlnlstratlve Detalls of the Charlty, Its Trustees and Advlsers Trustees. Report Independent Audltorfs Report on the Flnanclal Ststements Consolidated Statement of Financial Activiti9S 10-13 14 Consolidated Balance Sheet 15 Charity Balance Sheet Consolidated Statement of Cash Flov 16 17 Notes to the Financial Ststemgnts 18-38
DoGuSign Envelope ID". F02D415D.08C54EBA.ACB5-B6FF34BE1EAC THE AUDIENCE AGENCY IA Company Limited by Guarantee) REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 30 MARCH 2021 Trustees A Adewunmi L Cromplon-Reid T Hornsby Iresiqned 26 May 20211 C Lawrence18ppointedl M Locke, Chair Dr C Michaels S Parker, WI Chair R Paterson A Rivell Iresiqned 29 September 20211 R Saphfft lappoinlèd 30 September 20211 R Sidhu Iresiqned 31 July 20201 A Singh lappoinled 26 May 20211 Company registered number 08117915 Charity registered number 1149979 Registered office The Whilehouse Wilderspool Business Park Greenalls Avenue Slocklon Heath Warringlon WA4 6HL Independent auditor Cooper Parry Group Limited Chartered Accounlanls Slatulory Auditor One Central Boulevard Blythe Valley Business Park Solihull Wesl Midlands B90 8BG Bankers CAF Bank Limited 25 Kings Hill Avenue Kings Hill Wesl Malling Kent ME194JQ Solicitors Primas Law The Whilehouse Wilderspool Business Park Greenalls Avenue Slocklon Heath WA4 6HL Page 1
DoGuSign Envelope ID". F02D415D.08C54EBA.ACB5-B6FF34BE1EAC THE AUDIENCE AGENCY IA Company Limited by Guarantee) TRUSTEES. REPORT FOR THE YEAR ENDEO 30 MARCH 2021 The Trustees are pleased to present their annual directors, report together with the consolidated financial statements of the charity and its subsidiary for the year ended 30 March 2021. These are also prepared to meet the requirements for a directors, report and accounts for Companies Act purposes. The finanryal statements comply wth the Charities Act 2011, Companies Act 2006, the Memorandum and Articles of Association and Awounting 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 IFRS102 effective 1 January 20191. Mission. Purpose & Public Benefit We believe that taking part in cultural activities and having opportunities to exercise our creativity are important lo our wellbeing and personal resilien. Equitable access to these opportunities is Important In building a fairer society, stronger communities, equitable regeneration and positive civic change. The experience of the pandemic has heightened these issues - making human needs more obvious while opening the gap belween those who do and do not benefit from slate-supported and commercial culture and creative participation. Cultural and creative service-providers can achieve more and more equitably through confident Insighl-driven strategy, people-cenlred approaches, innovation, co-operation and ethical use of data. Our purpose is to foster these approaches with our data, insight and knowledge to help.. reach more people and address equality of access offer more relevant creative opportunities build more creative places Values People Flrst: We seek lo be user-cenlred, to promote audience-centred approaches, and to put our own people first. We support organisations to do more with and for people furthest from opportunity. Open & Accesslble: We seek to be inclusive and respectful of difference in our work with audiences, clients and staff. We prioritise work lo enable cultural activity lo be more indusive. We are commilled lo open data principles. Connected.. Working collaboratively across our network lo increase impact and shared learning. Trustworthy: We aim lo be transparent and accurate, to act with confidentiality and strive for robust results. Our commitment to quality is reflected in our charter and processes. Our Actlvltles & Impacts We deliver Consultancy, audien and community research. This helps organisalions, consortia and local agencies lo understand and respond to their communities. needs in live and digital settings. "Audience Finder a worfd-first service sharing audien dats from over 700 cultural organisalions and making the datasets widely available and practically applicable through analytics and a wrap-around Customer service. We enable organisalions to engage larger and more diverse audiences and to improve their impact and resilience. The ultimate objective to widen PLJblic access and increase the nation's participation in the arts and other cultural activities. Page 2
DoGuSign Envelope ID". F02D415D.08C54EBA.ACB5-B6FF34BE1EAC THE AUDIENCE AGENCY IA Company Limited by Guarantee) TRUSTEES. REPORT {CONTINUED) FOR THE YEAR ENDEO 30 MARCH 2021 Our activities help organisations and policymakers tackle a wide variety of barriers to the arts and culture such as the lack of relevance, afft)rdability, user-voice and other factors linked to social Inequality. We also support organisations lo develop their engagement skills and capacity lo connect more effectively including digital leadership, data Informed decision-making, the lalesl consumer research, action research and user-tred design. Public Benefit The Audience Agency helps the cultural sector to increase ils relevance and resilience through the delivery of range of servi$ which include.. Bespoke consultancy and audien and community research, to help organisalions, consortia and local agencies to develop their strategies. Development and implementation of the world-first "Audien Finderf, service., sharing audience dats from over 800 cultural organisalions and making the data-sets widely available and practically applicable through sofvare, analytics and a wrap-around customer service. We enable organisations lo engage larger and more diverse audiences and improve their impact and resilience with the ultimate objective to widen public aCSS and increase the nation's participation in the arts and other cultural activities. Our activities help organisations and policy-makers tackle a wide variety of barriers to the arts and culture - such as financial affordability, social inequality and other socio-economic factors. The trustees confirm that they have complied with the duly in section 4 of the Charities Act 2011 to have due regard lo the Charity Commission's general guidan on Public Benefit, Charities and Public Benefit. Beneficiaries of our service Our work directly supports cultural organisations, agencies and practitioners lo engage more effectively with the general public. We also support community organisalions with cultural strategy and work with local, national and international policymakers to improve the conditions for engagement. We provided a resource or service lo over 1,200 cultural organisations in the period. We remain committed to being accessible to the widest variety of arts and cultural organisalions and developed our business model lo enable us to provide lo all a regular feed of current audience trends and information, especially in relation lo the pandemic. We also used funds to subsidise affordable ServIS to smaller charities and those with limited resources, while still making an impact on the largest cultural institutions in England with the biggest audience reach. We worked with theatres, concert halls, arts centres, performing arts companies, galleries, orchestras, outdoor festivals and sile-specific produrS, participatory arts, museums, heritage organisations and local authorities. We continued to develop our wort( to support those at the forefront of the sland against inequality, those promoting diversity and grassroots community initiatives, and this year working on a specific resour lo promote anti-racism in research practice. Achievements and Perfomiance The Audience Agency l TAA") produced a four-year strategy in 2018. The Trustees have reviewed the activities and plans each year lo ensure that the charity remains focused on its core purpose and on track lo achieve ils ambitions. The 2020121 Business Plan was presented lo the Board in February 2020. Based on client feedback and a situational analysis, we reformulated priorities.. Page 3
DoGuSign Envelope ID". F02D415D.08C54EBA.ACB5-B6FF34BE1EAC THE AUDIENCE AGENCY IA Company Limited by Guarantee) TRUSTEES. REPORT {CONTINUED) FOR THE YEAR ENDEO 30 MARCH 2021 To fulureproof the Audience Finder plafform lo enable it to survive a variety of financial SnarioS by putting it forefront of relevant technology and at the centre of an international learning allian. To ensure our growing consultancy and research work promotes innovation, user-focus, and positive change, thereby affecting policy and best practi. To have made the most of resources and the synergies beeen our aclivilies, our matrix of people, partnerships and relationships to deliver purpose and impact. In the event, Covid-19 changed all our initial plans and like every other organisalion, we intrOdUd a series of SnariO plans which were reviewed and revised regularly. These plans were informed by feedback and conversations with stakeholders and the sector and designed lo help organisations survive and then recover. Activities were collectively communicated as Bounce Forward and included on point advice and insights derived through original research and disseminated through tsrgeled publishing and events, reaching well over 3,000 practitioners and up to 800 organisations. Through the year, TAA won funding lo undertake and publish a range of research and evidence about the impact of Covid-19 on arts, culture and heritage. We developed a Digitsl Audiences Survey, a quick and benchmarkable survey that organisations could deploy via their own websites and social media. This enabled those organisations lo better understsnd the motivations, profiles, and habits of their audiences through a period of rapid and potentially destabilising Change. This included the "Cultural Participation Monilorf,. Launched in the autumn of 2020, il is a longitudinal, ongoing, survey of changing views about participating In creative and cultural activities through the pandemic and beyond. 11 was part of a national research programme led by the Centre for Cultural Value in collaboration with the Creative Industries Policy and Evidence Centre and The Audien Agency. We were then able to bring the sector the insight il needed as the situation changes, in briefings, reports and in the media. We also offered a programme of seminars and resources about managing audienTr and community- cenlred change. Free webinars covered topics such as.. Building and developing online eommunilies Understanding digital audiences Measuring digital engagement Using insight and data effectively for decision making User ntred approaches Evaluation The demand for events was high and we reached 2,000+ cultural sector participants supporting their recovery planning and business model innovation. Our free webinars and training sessions regularly sold out, and our insight and research was deployed by oryanisalions lo help them with their plans. TA4 also continued to develop Audien Finder as the UK'S leading audience insight tool which was land isl crucial to the recovery and future of the sector. 11 remained free for all and any user. Back-end developments improve efficiency, stability and speed while changes to the front-end have been designed for practitioners not confident or experienced in using data and slatislics, including in-lool prompts giving practical suggestions, natural language ways of presenting insights, and context curated to each user organisation. We provided an ongoing support Servi to all users in England, Wales and Scotland, moving all our group and 1-2-1 support online throughout the pandemic period and beyond. After a brief hiatus in commissioned, paid-for servIs, demand returned rapidly towards the end of 2020. This wort( included highly tailored research on audiences, communities, impact and opportunities and specialised advi in the development of effective strategy, as many cultural organisalions and creative industries pivoted Page 4
DoGuSign Envelope ID". F02D415D.08C54EBA.ACB5-B6FF34BE1EAC THE AUDIENCE AGENCY IA Company Limited by Guarantee) TRUSTEES. REPORT {CONTINUED) FOR THE YEAR ENDEO 30 MARCH 2021 their approach and explored new business models for a post-pandemic world, our services were in high demand by 2021. The Income we derived helped us to continue to provide the stream of free insight and support outlined above. This late boom was a relief after the drastic shortfall in income we experienced in the earfy part of 2020 caused by the pandemic. Managing the shortfall was In Itself a major achievement.. we made quick and decisive cuts to our overheads to safeguard jobs and keep the core of the organisation able to function.. Staff were moved onto short term contracts for a period of 3 months and in some cases longer 100/0 of the workforce were made redundant The senior leadership team look a 209/0 pay cut for a part of the year A skeleton staff managed essential workload in the first six months, and we were able lo relain the majority of our team thanks to the lifeline of the fvrlough scheme We were also fortunate to secure money from the Cultural Recovery Fund Idelailed below). All these measures together meant that we emeryed from lockdown as a healthy organisalion ready lo flex around the fluctuating needs of the sector and their communities. Indeed, the learning from Covid-19, alongside other factors (such as increased competition in the mart(elplace and a changing seclorl prompted the development of an organisalional change plan at the end of the year. We developed a four-part charity offer with and for different groups of users.. Cultural Participation Creative Communities and Places Evidence and Insight Audience Finder Support and Tools From April 2020, the development of the Audience Finder Platform was moved into the trading subsidiary and became the division of TAAS Ltd through which TAA Group". sells softhareldala servi$ and linSeS associated IP lo partners invests in future versions of ils tech platFomis collaborates with technology and research partners relating to the above. Financial review TAA'S financial objective is lo ensure financial stability and continued solvency year on year to enable il to pursue ils aims and objectives. The aim is also lo increase its level of free reserves Isee reserves policy below). For the financial period 2020121, the total income was £2.79m, a 12,10 decrease over the previous financial year 1£3.18ml. Expenditure was £2.49m, a 9°/0 decrease over the previous year1£2.74ml. TAA produced an end of year surplus of £306,332 which meant that the unrestricted reserves to be carried forward were £1,095,528 (see reserves section below). The overall performan in the financial year was gready assisted by a grant of £324k from the Cultural Recovery Fund, £192k from the Coronavirus Job Retention Scheme and the staff actions described above. Although our Consultancy and research servi5 performed beller than had been initially projected al the start of 2020121, the percentage of earned income was 41.10, down from 63°/D in 2019120. During 2020121, we continued to invest in the development of the Audien Finder platform. This investment has been recognised in the accounts of the charity as a Programme Related Investment, reflecting the importanTr of the platform as a longer-lerm asset. Page 5
DoGuSign Envelope ID". F02D415D.08C54EBA.ACB5-B6FF34BE1EAC THE AUDIENCE AGENCY IA Company Limited by Guarantee) TRUSTEES. REPORT {CONTINUED) FOR THE YEAR ENDEO 30 MARCH 2021 Reserves policy The Board's policy on reserves is lo target a reserve level which is equal lo three lo six months. projected fixed costs (fixed costs being rent, rates and other running, but not activity costs), This tsrgel level of reserves should be free reserves, or money readily realisable, and therefore should not include fixed assets. Where the target level of reserve5 has been reached, the Board would seek lo reinvest those surplus funds in the following financial year, lo support the development of our service to the sector. At the period end, total unreslricled reserves were £1,095,528 which included £527,465 of fixed assets. Free reserves were therefore £568,063. Our most recent calculation is that three months, running costs would be approximately £600k. Risk Management The Board regularly reviews and assesses the risks to which TAA may be exposed. A risk register identifies those risks and a¢lions agreed lo mitigate them. Each Board meeting highlights the key issues and risks facing each of the Business Units and for TAA as a whole. The identified high-level risks al the end of March 2021 were.. RISK MITIGAMON oemano reduces Bulla on agile user-centreo praaices ana processes Market test ollerslprthise produuLsaion Close monrtortng maTketlng slrategyirocusetj buslness development Mèiyiris nallinemeciease Siiiiplify sliuctuies Difleienliai oifers al priow. Measure and track Lwdgeting allnbution PrrM1ucb5e Build in IX through asgxrole network ReduCtremOval tsfmaior lundlng reaM continued dwe¥siThcation oi income continuett Intemavonai coiiamration Weak Cash Flow Weekly cashfiow reW Budgets devek>pe(S to geerate hlghei net surpluses Re$ille and Recgvery loan (April 20211 Insuffic)I capacty or capatsilty Contlnuous rewew of lOrS Fk¥lNe resourclng options Compewion in Ihe Market Promote cleater. simpler offer. Differenliale(I pricing. Improve uniquo aata straiegic mawing. ReDrano promote"speciaiLSts' Page 6
DoGuSign Envelope ID". F02D415D.08C54EBA.ACB5-B6FF34BE1EAC THE AUDIENCE AGENCY IA Company Limited by Guarantee) TRUSTEES. REPORT {CONTINUED) FOR THE YEAR ENDEO 30 MARCH 2021 Plans for the future Our 2021122 Business Plan was developed by tssk groups Involving a cross section of TAA staff, and two board working groups, focussing on different areas of risk and opportunity. It was designed lo enable us to continue to support our sector through seismic change lo come In the best way we are able. The Plan reflects our ambitions to "build back betterf,, for a posl-pandemic world which continues Challenging for our stakeholders in the cultural and creative industries. The emphasis of our work will be on enabling recovery and regeneration for Individual organisalions, consortia and local authorities as well as the communities they serve. Overall, this means investing in critical services that only TAA can properly provide like Audience Spectrum and a¢$S to the Audience Finder data- and focusing our services on the needs of the moment. We hope to so this in way that is responsible and sustainable for our hard-working and resilient workforce. We don't anticipate a large surplus for 21122 but want to ensure instead a strong platform for future years. The aim is lo grow revenue, margin and Impact. The obieclives for 2021122 are.. To provide a tested suite of services which meet the recovery, regeneration and inclusion needs of the full range of our stakeholders and client base, as they develop. To increase the uptake and affordability of our most-in demand seNices, improving their communication and working with users lo priorilise and design them. To improve the quality, range, relevance of and a¢sS lo our unique data assets, in a way relevant lo our users and sustainable for TAA. To increase our thoughl-leadership as dats-inspired leaders, worthy custodians of national datasets, ehampions of cultural demoer8cy, inclusion and innovation in these fields. To improve staff wellbeing, addressing materially issues associated with overworking, new patterns of homeworking, career progression and personal development. And through the subsidiary.. To further encourage confident use of audience data through the release of new Audience Finder 2.0 functionality in the UK by March 2022. To extend the scope and value of Audience Finder 2.0 land other TAA IPI by bringing additional investment and expertise, including from at least two intemalional partners. Structure, Governance and Management Governlng Document The Audience Agency is a company limited by guarantee, established on 25 June 2012, and registered as a charity on 29 November 2012. 11 is governed by its Memoondum and Articles of Association. The company's object is the promotion of the arts for public benefit by the provision of advice, support and information, and the provision of support services. The governing body is the Board whose members are non-execulive and unpaid. They meet regularly and retain full and effective control over the Company and monitor the Executive. The Board is involved in major strategic decisions and has ultimate responsibility for the conduct and financial stability of TAA. Recrultment and Appolntment of Trustees As set out in the Memorandum and Articles of Association, the Board shall consist of not less than three and not more than fifteen people. As al 30 March 2021, the Board comprised eight people. New Trustees are appointed through an open recruitment process and we advertised the roles widely through sector sites and specialist recruitment sites to encourage as wide a response as possible. Page 7
DoGuSign Envelope ID". F02D415D.08C54EBA.ACB5-B6FF34BE1EAC THE AUDIENCE AGENCY IA Company Limited by Guarantee) TRUSTEES. REPORT {CONTINUED) FOR THE YEAR ENDEO 30 MARCH 2021 Induction and Training of Trustees Information packs are provided lo all Trustees detsiling our work and their roles, responsibilities and obligations as a Trustee and as a Director. Each prospective new Trustee attends a Board meeting prior to appointment in order for them to understand how TAA is managed and govemed. Other documents provided lo new Trustees Include previous accounts, the Business Plan and Charity Commission guidanTr. New Trustees are also partnered with one of the Executive team so that they can get a more detsiled understsnding of the organisation and its activities. On an ongoing basis, Trustees are encouraged to attend appropriate external training courses and events. The annual Board away day provides an opportunity for development and throughout the year mini-Board workshops are run on issues of strategic importance. Oryanisational Structure The organisalional structure is reviewed regularly. The Board delegates full control to the Chief Executive Officer and the Executive Team for the delivery of the agreed plans. The Board monitors and reviews the quality, timeliness and relevan of the information provided lo the Board meetings by members of the Executive Team. The Board has established a FinanTr Sub-committee, which meets Iwo weeks before each Board meeting, to review the financial position and provide advi and support to the Executive Team. Related Parties The organisalion maintains a register of Interests for Board members and members of the Senior Management Team. Board members are required to declare any conflicts of interest before each Board meeting. The Audience Agency ServiTrs Limited is a wholly owned subsidiary of the company and was estsblished originally lo manage a print distribution service in the North West of England. In 2020-21, the subsidiary comprised Golant Innovation, an innovation agency, whose consultancy services complimented those of the charity. The research and development work for Audience Finder was also conducted through the trading subsidiary. Remuneration Policy for Key Personnel The Board sets the remuneration for the Chief Executive and other key personnel. Pay rates are determined by reference lo an internal evaluation scheme and extemal benchmarking. ststement of Trustees. Responsibilities The trustees (who are also directors of The Audien Agency for the purposes of company lawl are responsible for preparing the Iruslees, annual report and the financial statements in accordance with applicable law and United Kingdom Accounting Stsndards (United Kingdom Generally Accepted Awounting Praclicel. Company law requires the trustees to prepare financial stslements for each financial year which give a true and fair view of the slate of affairs of the charitable group and of the incoming resources and application of resources, including the income and expenditure, of the charitable group for that period. In preparing these financial statements, the trustees are required lo.. Select suitable awounting policies and then apply them consistently Observe the methods and principles in the Charities SORP Page 8
DoGuSign Envelope ID". F02D415D.08C54EBA.ACB5-B6FF34BE1EAC THE AUDIENCE AGENCY IA Company Limited by Guarantee) TRUSTEES. REPORT {CONTINUED) FOR THE YEAR ENDEO 30 MARCH 2021 Make judgements and estimates that are reasonable and prudent Stale whether applicable UK Accounting Standards and statements of recommended practice have been followed, subject to any material departures disclosed and explained in the financial stslemenls Prepare the financial statements on the going concern basis unless It is inappropriate to presume that the charity will Continue in operation The Iruslees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any lime the financial position of the charitable group and enable them lo ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. In so far as the trustees are aware.. There Is no relevant audit Information of which the charitable company's auditors are unaware. The trustees have taken all steps that they ought to have taken lo make themselves aware of any relevant audit information and lo establish that the auditors are aware of that infomialion. The trustees are responsible for the maintenance and integrity of the corporate and financial information Included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. Auditors Cooper Parry continued as the charitable companls auditors In 2020121. This report has been prepared in accordance with the provisions applicable lo companies subject to the small companies. regime of the Companies Act 2006. Approved by order of the members of the board of Trustees and signed on their behalf by.. DOCsn•d by.. 9AB11h4D3FgF46B... Locke Ichair of Trustees) 20 December 2021 S Parker (VI Chair of Trusleesl Dale.. Page 9
DoGuSign Envelope ID". F02D415D.08C54EBA.ACB5-B6FF34BE1EAC THE AUDIENCE AGENCY IA Company Limited by Guarantee) INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE AUDIENCE AGENCY Oplnlon We have audited the financial ststemenls of The Audien Agency Ithe 'parent charitable company'l and ils subsidiaries (the 'group'l for the year ended 30 March 2021 which comprise the Consolidated Statement of Financial Aclivilies, the Consolidated Balan Sheet, the Charity Balance Sheet, the Consolidated Statement of Cash Flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Stsndard applicable in the UK and Republic of Ireland, (United Kingdom Generally Accepted Accounting Praclicel. In our opinion the financial statements.. give a true and fair view of the slate of the Group's and of the parent charitable company's 8ffairs as at 30 March 2021 and of the Group's incoming resources and applicab'on of resources, including its income and expenditure for the year then ended., have been properfy prepared in accordance with United Kingdom Generally Accepted Accounting Practice., and have been prepared in accordance with the requirements of the Companies Act 2006 and the Charities Act2011. Basis for opinion We conducted our audit in accordanTr with International Standards on Auditing IUKI IISAS IUKII and applicable law. Our responsibilities under those standards are further described in the Audilorfs responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit eviden we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclusions relating to going concorn In auditing the financial slalements, we have concluded that the Trustees. use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubl on the Group's or the parent charitable company's ability to continue as a going concern for a period of at least e1ve months from when the financial slalements are aulhorised for issue. Our responsibilities and the responsibilities of the Trustees wth respect lo going COnM are described in the relevant sections of this report. Page 10
DoGuSign Envelope ID". F02D415D.08C54EBA.ACB5-B6FF34BE1EAC THE AUDIENCE AGENCY IA Company Limited by Guarantee) INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE AUDIENCE AGENCY ICONTINUED} Other Informatlon The Trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Auditor's Report thereon. Our opinion on the financial statements does not cover the other information and, except lo the extent otherwise expliciuy ststed in our report, we do not express any form of assurance conclusion Ihereon. In connection with our audit of the financial statements, our responsibility is lo read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misslaled. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstslemenl of this other information, we are required to report that fact. We have nothing to report in this regard. Oplnlon on other matters prescrlbed by the Companles Act 2006 In our opinion, based on the work undertaken in the course of the audit.. the informab'on given in the Trustees, Report for the financial year for which the financial stslemenls are prepared is consistent with the financial ststements. the Trustees, Report has been prepared in accordance with applicable legal requirements. Matters on whlch we are requlred to report by exceptlon In the light of our knowledge and understanding of the charitable company and its environment obtsined in the course of the audit, we have not identified material misstatements in the Trustees, Report. We have nothing to report in respect of the following matters in relation to which Companies Act 2006 requires us to report to you if, in our opinion.. the parent charitable company has not kept adequate and sufficient aceounling records, or returns adequate for our audit have not been received from branches not visited by us, or the parent charitable company financial statements are not in agreement with the accounting records and returns,. or certain disclosures of Trustees, remuneration specified by law are not made., or we have not received all the information and explanations we require for our audit., or the Trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies. exemptions in preparing the Trustees, Report and from the requirement to prepare a Strategic ReFlOrt. Page11
DoGuSign Envelope ID". F02D415D.08C54EBA.ACB5-B6FF34BE1EAC THE AUDIENCE AGENCY IA Company Limited by Guarantee) INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE AUDIENCE AGENCY ICONTINUED} Responslbllltles of trustees As explained more fully in the Trustees, Responsibilities Statement, the Trustees Iwho are also the directors of the charitable company for the purposes of company lawl are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is neSSary lo enable the preparation of financial statements that are free from material misstatement, whether due lo fraud or error. In preparing the financial statements, the Trustees are responsible for assessing the Group's and the parent charitable company's ability to continue as a going concern, disclosing, as applicable, mallers related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the Group or the parent charitable company or to cease operations, or have no realistic alternative but to do so. Audltorfs responslbllltles for the audlt of the flnanclal statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misslatemenl, whether due to fraud or error, and lo issue an Audilovs Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAS IUKI will always detect a material misststemenl when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected lo influence the economic decisions of users taken on the basis of these financial ststemenls. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, lo delect material misststemenls in respect of irregularities, including fraud. The extent to which our procedures are capable of delecling irregularities, including fraud is detsiled below.. Our assessment focussed on key laws and regulations the Group and parent charitable company has lo comply with and areas of the financial stslemenls we assessed as being more susceptible to misstatement. These key laws and regulations included but were not limited lo compliance with the Companies Act 2006, Charities Act 2011, taxation legislation, data protection, anti-bribery and employment legislation. We are not responsible for preventing irregularities. Our approach to delecling irregularities included, but was not limited lo, the following.. obtaining an understanding of the legal and regulatory framework applicable to the Group and parent charitable Company and how the Group and parent charitable company are complying with that framework, including agreement of financial statement disclosures to underfying documentation and other evidence., obtaining an understanding of the Group and parent charitable company's control environment and how the Group and parent charitable company have applied relevant control proCedUs, through discussions with Trustees and other management and by performing walklhrough testing over key areas", obtaining an understanding of the Group and parent charitable company's risk assessment process, including the risk of fraud., reviewing meeting minutes of those charged with governan throughout the year., and performing audit testing lo address the risk of management override of controls, including testing journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias. Whilst considering how our audit work addressed the detection of irregularities, we also considered the likelihood of detection based on our approach. Irregularities arising from fraud are inherently more difficult lo delecl than those arising from error. Page 12
DoGuSign Envelope ID". F02D415D.08C54EBA.ACB5-B6FF34BE1EAC THE AUDIENCE AGENCY IA Company Limited by Guarantee) INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE AUDIENCE AGENCY ICONTINUED} Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely lo become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website al.. www.frc.or .uklauditorsres onsibililies. This description forms part of our Auditor's Report. Use of our report This report is made solely to the charitable company's members. as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006, and lo the charitable company's Iruslees, as a body, Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might stale to the charitable company's members those matters we are required lo stale to them in an Auditor's Report and for no other purpose. To the fullest extent pemiitted by law, we do not accept or assume responsibility lo anyone other than the charitable company and ils members, as a body, for our audit work. for this report, or for the opinions we have formed. Slmori Atklns FCA Ispnlor Statutory Audltorl for and on behalf of Cooper Parry Group Llmlted Chartered Accountants Statutory Auditor One Central Boulevard Blythe Valley Business Park Solihull West Midlands B90 8BG Dale.. 20 December 2021 Page 13
DoGuSign Envelope ID". F02D415D.08C54EBA.ACB5-B6FF34BE1EAC THE AUDIENCE AGENCY IA Company Limited by Guarantee) CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNTI FOR THE YEAR ENDED 30 MARCH 2021 Unrestricted funds 2021 Restricted funds 2021 Total funds 2021 Total funds 2020 Note Income from: Government grants Charitsble activities Other trading activities Other income 192,043 1,475,518 312,865 86,739 192,043 2,255,229 312,865 86,739 779,711 2,752,216 339,204 93,232 Total income Expenditure on: Raising funds Charitable activities 2,067,165 779,711 2,846,876 3,184,652 440, 171 1,288,281 440, 171 2,052,081 312,445 2,428,252 763,800 Total expenditure 1,728,452 763,800 2,492,252 2,740,697 Net movement in funds 338,713 15,911 354,624 443,955 Roconciliation of funds: Total funds brought forward Nel movement in funds 805,107 338,713 805,107 354,624 361,152 443,955 15,911 Total funds carried forward 1,143,820 15,911 1,159,731 805, 107 The Consolidated Statement of Financial Activities includes all gains and losses recognised in the year. The notes on pages 18 to 38 form part of these financial statements. Page 14
DoGuSign Envelope ID". F02D415D.08C54EBA.ACB5-B6FF34BE1EAC THE AUDIENCE AGENCY IA Company Limited by Guarantee) REGISTERED NUMBER: 08117915 CONSOLIDATED BALANCE SHEET AS AT 30 MARCH 2021 2021 2020 Note Fixed assets Intangible assets Tangible assets 12 13 522,660 4,805 482,855 7,268 527,465 490,123 Current assets Debtors Cash al bank and in hand 15 623,450 704,057 753,376 86,297 1,327,507 839,673 Creditors.. amounts falling due within one year 16 1695,2411 1524,6891 Net current assets 632,266 314,984 Total net assets 1,159,731 805, 107 Charity funds Reslricled funds Unrestricted funds 18 15,911 1,143,820 18 805, 107 Totsl funds 1,159,731 805,107 The financial statements have been prepared in accordance with the provisions applicable to enlilies subject to the small companies regime. The financial stslemenls were approved 20 December ZO21 and 8Uthorised for issue by the Trustees on and signed on their behalf by". W11PAD3FgFW... M Locke ICh8ir of Trustees) (Vice chair of Trusteesl The notes on pages 18 to 38 form part of these fin8nci81 statements. Page 15
DoGuSign Envelope ID". F02D415D.08C54EBA.ACB5-B6FF34BE1EAC THE AUDIENCE AGENCY IA Company Limited by Guarantee) REGISTERED NUMBER: 08117915 CHARITY BALANCE SHEET AS AT 30 MARCH 2021 2021 2020 Note Fixed assets Intangible assets Tangible assets Investments 12 13 14 16,651 4,805 502,660 124,243 7,268 347,586 524,116 479,097 Current assets Debtors Cash al bank and in hand 15 394,604 647,551 640,864 71,053 1,042,155 711,917 Creditors." amounts falling due within one year 16 161 6,3821 1534,2331 Net current assets 425,773 177,684 Total assets less current liabilities 949,889 656,781 Total net assets 949,889 656,781 Charity funds Reslricled funds Unrestricted funds 18 18 15,911 933,978 656,781 Total funds 949,889 656,781 The financial slalemenls have been prepared in accordan with the provisions applicable to enlilies subject lo the small companies regime. The financial statements were approved and aulhorised for issue by the Trustees on 20 December 2W signed on their behalf by.. Do¢us¥Mdty'. 3F9F468... Ichair of Trustees) (Wi Chair of Trusleesl The notes on pages 18 to 38 form part of these financial statements. Page 16
DoGuSign Envelope ID". F02D415D.08C54EBA.ACB5-B6FF34BE1EAC THE AUDIENCE AGENCY IA Company Limited by Guarantee) CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 MARCH 2021 2021 2020 Note Cash flows from operating activities Nel cash provided by operating activities 20 1,017,789 405,280 Cash flovts from investing activities Purchase of intangible assets Purchase of tangible fixed assets 12 13 1348,5811 11,4481 1425,8131 16,5401 Net cash used in investing activities 1350,0291 1432,3531 Cash flows from financing activities Cash inflows from new borrowing Repayments of borrowing 50,000 130,0001 150,0001 Net cash (used inllprovided by financing activities 150,0001 20,000 Change In cash and cash equlvalents In the year Cash and cash equivalents at the beginning of the year 617,760 17,0731 86,297 93,370 Cash and cash equivalents at the end ofthe year 21 704,057 86,297 The notes on pages 18 to 38 form part of these financial statements Page 17
DoGuSign Envelope ID". F02D415D.08C54EBA.ACB5-B6FF34BE1EAC THE AUDIENCE AGENCY IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 MARCH 2021 General Infomiatlon The Audience Agency is a private company, limited by guarentee, incorporated in England and Wales 1081179151. The principal address of the group is The Whitehouse, Wilderspool Business Park, Greenalls Avenue, Stockton Heath, Warrington, WA4 6HL. Accountlng pollcles 2.1 Basis of preparation of financial statements The financial statements are prepared in Sterling 1£) which is the functional currency of the Charity. The financial stalments are for the year ended 30 March 202112020.. period ended 30 March 20201. The financial slalements have been prepared in accordan with the Charities SORP IFRS 1021 Accounting and Reporting by Charities.. Slalement of Recommended Practice applicable lo charities preparing their accounts In accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 leffeclive 1 January 20191, the Financial Reporting Standard applicable In the UK and Republic of Ireland IFRS 1021 and the Companies Act 2006. The Audience Agency meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise slated in the relevant accounting policy. The Consolidated Statement of Financial Activities ISOFAI and Consolidated Balan Sheet consolidate the financial statements of the Charity and ils subsidiary undertaking. The results of the subsidiary are consolidated on a line by line basis. The Charity has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Financial Activities in these financial stalemenls. The parent charity made a surplus of £290,572. 2.2 Going concern Al the balance sheet dale, the Charity had a strong nel asset position. Al the lime of signing these accounts, the Iruslees have considered the effect of the Coronavirus pandemic on the going conrn position, and consider that the Charity will continue lo operate for a period of al least 12 months from the date of signing these accounts due lo the reserves available lo it. The financial forecasts prepared show that the Charity will be able to operate within the facilities available lo it. On that basis, the trustees have prepared these financial statements on a going conrn basis. Page 18
DoGuSign Envelope ID". F02D415D.08C54EBA.ACB5-B6FF34BE1EAC THE AUDIENCE AGENCY IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 MARCH 2021 Accountlng pollcles Icontlnuedl 2.3 Income All income is recognised once the Charity has entillemenl lo the income, il is probable that the income will be received and the amount of income receivable can be measured reliably. Grants are included in the Consolidated Statement of Financial Activities on a receivable basis. The balan of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance Sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued. Other income is recognised in the period in which il is receivable and to the extent the goods have been provided or on completion of the Se1. 2.4 Expendlture Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third paty, 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 aclivily. 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 lo a single activity are allocated directly to that aclivily. Shared costs which contribute to more than one activity and support costs which are not attributable lo a single activity are apportioned between 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 allocated on the portion of the asset's use. Expenditure on charitable activities is incurred on direcuy undertaking the activities which further the Group's objectives, as well as any associated support costs. All expenditure is inclusive of irrecoverable VAT. 2.5 Donated servlces and facllltles Donated professional SeNiS and donated facilities are recognised as income when the charity has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use by the charity of the item is probable and that economic benefit can be measured reliably. In accordance with the Charities SORP IFRS 1021, general volunteer lime is not recognised,. refer lo the trustees, annual report for more information about their contribution. On reipt, donated professional services and donated facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing lo pay lo obtain services and facilities of equivalent economic benefit on the open market,. a corresponding amount is then recognised in expenditure in the period of receipt. 2.6 Government grants Government grants relating to tangible fixed assets are credited lo the Consolidated Statement of Financial Activities and held in reseNes, depreciation is charged over the expected useful lives of the assets concerned. Other grants are credited to the Consolidated Statement of Financial Activities as the related expenditure is incurred. Page 19
DoGuSign Envelope ID". F02D415D.08C54EBA.ACB5-B6FF34BE1EAC THE AUDIENCE AGENCY IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 MARCH 2021 Accountlng pollcles Icontlnuedl 2.7 Intangible assets and amortisation Intangible assets are capilalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably. Intangible assets are initially recognised at cost. After recognition, under the cost model, intsngible assets are measured al cost less any accumulated amortisalion and any accumulated impairment losses. Goodwill arising on business combinations is capitalised, classified as an asset on the balance sheet and amortised on a straight line basis over ils useful life. The period chosen for writing off goodwill is three years. Provision is made for any impairment. Amortisalion is provided on intangible assets at rates calculated to write off the cost of each asset on a straighl-line basis over its expected useful life. Amortisation is provided on the following bases.. Data assets Computer Soare 33 0/0 33 0/0 2.8 Tanglble flxed assets and depreclatlon Tangible fixed assets costing £1,000 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably. Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured al cost less accumulated depreciation and any accumulated impairment losses. All costs incurred lo bring a tsngible fixed asset into its intended working condition should be included in the measurement of cost. Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, using the straighl-line method. Depreciation is provided on the following basis.. Office equipment Computer equipment 200 330 2.9 Investments Programme related investment is an amount equal to the capitsl contribution provided lo the trading subsidiary to develop an intangible asset lo further the charitsble purposes of the charity. The Investment is written down in line with the value of the asset in the trading subsidiary. Investments in subsidiaries are valued at cost less provision for impairment. 2.10 Debtors Trade and other debtors are recognised al the settlement amount after any trade discount offered. Prepayments are valued al the amount prepaid net of any trade discounts due. Page 20
DoGuSign Envelope ID". F02D415D.08C54EBA.ACB5-B6FF34BE1EAC THE AUDIENCE AGENCY IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 MARCH 2021 Accountlng pollcles Icontlnuedl 2.11 Cash at bank and in hand Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the dale of acquisition or opening of the deposit or similar account. 2.12 Llabllltles and provlslons Liabilities are recognised when there is an obligation at the Balan Sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in selllemenl, and the amount of the settlement can be estimated reliably. Liabilities are recognised at the amount that the Charity anticipates it will pay lo settle the debt or the amount il has reiVed as advanced payments for the goods or setvices it musl provide. Provisions are measured at the best estimate of the amounts required lo settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Consolidated Slalement of Financial Activities as a finance cost. 2.13 Flnanclal Instruments The Group only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured al their settlement value with the exception of bank loans which are subsequently measured al amortised cost using the effective interest method. 2.14 Operatlng leases Rentals paid under operating leases are charged lo the Consolidated Ststemenl of Financial Activities on a straight line basis over the lease term. 2.15 Penslons The Group operates a defined contribution pension scheme and the pension charge represents the amounts payable by the Group to the fund in respect of the year. 2.16 Fund accountlng General funds are unreslricled funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Group and which have not been designated for other purposes. Restricted funds are funds which are to be used in accordan with specific reslriclions imposed by donors or which have been raised by the Group for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes lo the financial statements. Page 21
DoGuSign Envelope ID". F02D415D.08C54EBA.ACB5-B6FF34BE1EAC THE AUDIENCE AGENCY IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 MARCH 2021 Income from government grants Unrestricted funds 2021 Total funds 2021 Total funds 2020 Government grants 192,043 192,043 Government grants received in the period relate lo the Coronavirus Job Retention Scheme. Page 22
DoGuSign Envelope ID". F02D415D.08C54EBA.ACB5-B6FF34BE1EAC THE AUDIENCE AGENCY IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 MARCH 2021 Income from charltable actlvltles Unrestricted Restricted funds funds 2021 2021 Total funds 2021 Total funds 2020 Major stakeholders and funders Arts Council England ADESTE Audiences Insight Wales Creative Scotland COLA 324,000 763,800 15,911 1,087,800 15,911 56,834 291,245 752,975 15,772 100,570 335,115 12,2181 31,660 30,800 56,834 291,245 Connect New Capacity development Subtotal for major stakeholders and funders Bespoke Servlces Consultancy Data analysis Research 114,7251 114,7251 657,354 779,711 1,437,065 1,264,674 423,267 17,950 252,640 423,267 17,950 252,640 537,678 21,725 589,809 Subtotal for bespoke services Packagelprogramme income Audien spectrum licensing Enhanced dashboards 693,857 693,857 1,149,212 6,100 33,788 71,692 12,725 6,100 33,788 71,692 12,725 56,025 100,203 158,631 23,471 Package servi$ Showstals Subtotal for packagelprogramme income 124,305 124,305 338,330 1,475,516 779,711 2,255,227 2,752,216 Total 2020 1,954,784 797,432 2,752,216 Page 23
DoGuSign Envelope ID". F02D415D.08C54EBA.ACB5-B6FF34BE1EAC THE AUDIENCE AGENCY IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 MARCH 2021 Income from other tradlng actlvltles Unrestrlcted funds 2021 Total funds 2021 Total funds 2020 Consultancy services 312,865 312,865 339,204 All income from other trading activities in the prior year was unreslricled. other incoming resources Unrestricted funds 2021 Total funds 2021 Total funds 2020 Research and development tax credit 86,739 86,739 93,232 All income from other incoming reSoUrS in the prior year was unreslricled. Expenditure on raising funds Trading subsidiary expenses Unrestricted funds 2021 Total funds 2021 Total funds 2020 Cost of sales Adminislralion expenses Administration staff costs 31,253 210,083 198,835 31.253 210,083 198,835 69,708 111,401 131,336 440,171 440,171 312,445 Page 24
DoGuSign Envelope ID". F02D415D.08C54EBA.ACB5-B6FF34BE1EAC THE AUDIENCE AGENCY IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 MARCH 2021 Analysls of expendlture by actlvltles Activities undertaken directly 2021 Total funds 2021 Total funds 2020 Advice and assistance 2,052,081 2,052,081 2,428,252 Analysis of direct costs Advice & assistsnce 2021 Total funds 2021 Total funds 2020 Staff costs Depreciation and amortisation Programme cost Bespoke overheads Office, travel and training costs Governance 1,296,115 111,503 282,975 116,205 70,961 14,491 77,759 82,072 1,296,115 111,503 282,975 116,205 70,9S1 14,491 77,759 82,072 1,478,616 93,031 290,914 241,668 138,402 11,418 79,614 94,591 Rent and rates Website and IT 2,052,081 2,052,081 2,428,252 Total 2020 2,428,252 2,428,252 The above expenditure is split £763,800 12020.. £802,046) restricted expenditure and £1,288,281 12020.. £1,628,246) unrestricted expenditure. Governance costs Include the audit remuneration of £9.00012020'. Governance costs Include audit remuneration of £9,000 and expenses reimbursement for board meeliings of £2,416). Page 25
DoGuSign Envelope ID". F02D415D.08C54EBA.ACB5-B6FF34BE1EAC THE AUDIENCE AGENCY IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 MARCH 2021 Audltorfs remuneratlon 2021 2020 Fees payable to the Charitys auditor for the audit of the Charity's annual accounts 9,000 9,000 10. Staff costs Group 2021 Group 2020 Charlty 2021 Charlty 2020 Wages and salaries Social security costs Pension cost 1,313,171 141,401 40,378 1,418,224 151,190 40,538 1,114,336 141,401 40,378 1,286,888 151,190 40,538 1,494,950 1,609,952 1,296,115 1,478,616 The average number of persons employed by the Charity during the year was as follows.. Group 2021 No. Group 2020 No. Adminislralion staff 45 45 No employee reiVed remuneration amounting to more than £60,000 in either year. The key management personnel of the charity comprise the trustees and the Executive Team. The roles within the Executive Team are CEO, Chief Operating offir, Chief Research Officer, Head of Finance & Ops, Director of Data Platforms and the Innovation Director. During the year 2 employees12020.' Nil) received redundancy payments totaling £1,58712020'. £Nill. The total employee benefits of the key management personnel of the charity were £275,586 12020". £278,526>. 11. Trustees. remuneration and expenses During the year, no Trustees reiVed any remuneration or other benefits12020." £Nill. During the year ended 30 March 2021, expenses tolalling £NIL were reimbursed or paid directly lo Truslee12020 - £539 to 6 Trusleesl. Expenses related to travel and subsistence. Page 26
DoGuSign Envelope ID". F02D415D.08C54EBA.ACB5-B6FF34BE1EAC THE AUDIENCE AGENCY IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 MARCH 2021 12. Intanglble assets Group Computer software Data assets Goodwill Total Cost At 31 March 2020 338,360 432,650 348,581 23,000 794,010 348,581 Additions At 30 March 2021 338,360 781,231 23,000 1,142,591 Amortisation At 31 March 2020 Charge for the year 214,117 107,592 85,065 193,515 11,973 7,669 311,155 308,776 At 30 March 2021 321,709 278,580 19,642 619,931 Net book value At 30 March 2021 16,651 502,651 3,358 522,660 At 30 March 2020 124,243 347,585 11,027 482,855 Page 27
DoGuSign Envelope ID". F02D415D.08C54EBA.ACB5-B6FF34BE1EAC THE AUDIENCE AGENCY IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 MARCH 2021 12. Intanglble assets {contlnued) Charlty Data assets Cost At 31 March 2020 338,360 At 30 March 2021 338,360 Amortisation At 31 March 2020 Charge for the year 214,117 107,592 At 30 March 2021 321,709 Net l)ook value At 30 March 2021 16,651 At 30 March 2020 124,243 Page 28
DoGuSign Envelope ID". F02D415D.08C54EBA.ACB5-B6FF34BE1EAC THE AUDIENCE AGENCY IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 MARCH 2021 13. Tanglble flxed assets Group and Charlty Office equipment Computer equipment Total Cost or valuation At 31 March 2020 Additions 27,888 87,799 1,448 115,687 1,448 At 30 March 2021 27,888 89,247 117,135 Depreclatlon At 31 March 2020 Charge for the year 27,888 80,531 3,911 108,419 3,911 At 30 March 2021 27,888 84,442 112,330 Net book value At 30 March 2021 4,805 4,805 At 30 March 2020 7,268 7,268 Page 29
DoGuSign Envelope ID". F02D415D.08C54EBA.ACB5-B6FF34BE1EAC THE AUDIENCE AGENCY IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 MARCH 2021 14. Flxed asset Investments Investments in Subsidiary Programme ompanies investment Total Charity Cost or valuation At 30 March 2020 Additions 432,650 348,589 432,651 348,589 At 30 March 2021 781,239 781,240 Impalmient At 31 March 2020 Charge for the year 85,065 193,515 85,065 193,515 At 30 March 2021 278,580 278,580 Net l)ook value At 30 March 2021 502,659 502,660 At 30 March 2020 347,585 347,586 Principal subsidiaries The following was a subsidiary undertaking of the Charity.. Name Company number Holding Included in consolidation The Audence Agency Services Limited 06994989 1000/. Yes The financial results of the subsidiary for the year were.. Name Income Expenditure ProfiU{Lossl for the year Net a¥$ets The Audence Agency Services Limited 351,312 1531,5431 1180,2311 664,210 Page 30
DoGuSign Envelope ID". F02D415D.08C54EBA.ACB5-B6FF34BE1EAC THE AUDIENCE AGENCY IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 MARCH 2021 15. Debtors Group 2021 Group 2020 Charity 2021 Charity 2020 Due after more than one year other debtors 20,000 20,000 Due within one year Trade debtors Amounts owed by group undertakings Other debtors 291,158 387,177 251,539 20,000 51,288 71,777 364,264 58,686 141,280 76,634 260,515 71,777 269,565 76,634 Prepayments and accrued income 623,450 753,376 394,604 640,864 16. Creditors: Amounts falling due within one year Group 2021 Group 2020 Charlty 2021 Charlty 2020 Trade creditors other laxalion and social security Other creditors 84,840 135,983 7,110 425,968 254,507 147,946 59,260 41,445 77,690 118,208 7,110 199,906 186,478 26,990 235,384 140,961 59,260 31,289 54,722 12,617 Deferred income Amounts owed to group undertakings Accruals 41,340 21,531 695,241 524,689 616,382 534,233 Group 2021 Group 2020 Charity 2021 Charity 2020 Deferred income at 30 March 2020 ReSoUS deferred during the year Amounts released from previous periods 41,445 425,968 141,4451 40,115 41,445 140,1151 31,289 199,906 131,2891 28,047 31,289 128,0471 425,968 41,445 199,906 31,289 Page 31
DoGuSign Envelope ID". F02D415D.08C54EBA.ACB5-B6FF34BE1EAC THE AUDIENCE AGENCY IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 MARCH 2021 17. Flnanclal Instruments Group 2021 Group 2020 Charity 2021 Charity 2020 Financial assets Financial assets measured al fair value through income and expenditure 704,057 86,297 647,551 71,053 Financial assets measured at fair value through income and expenditure comprise cash al bank and in hand. 18. Statement of funds Statement of funds - current year Balance at 30 March 2020 Balance at 30 March 2021 Transfers Inlout Income Expenditure Unrgstricted funds Charity funds Subsidiary reserves 702,626 102,481 1,667,561 399,604 11,276,266) 1452,1861 1159,9431 159,943 933,978 209,842 805, 107 2,067,165 11,728,452) 1,143,820 Restricted funds Arts Council England Adeste + 763,800 15,911 1763,8001 15,911 779,711 1763,8001 15,911 Totsl offunds 805,107 2,846,876 12,492,252) 1,159,731 Page 32
DoGuSign Envelope ID". F02D415D.08C54EBA.ACB5-B6FF34BE1EAC THE AUDIENCE AGENCY IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 MARCH 2021 18. Statement of funds (contlnuedl Arts Council England.. this is funding contributing to a data aggregation programme and analysis setvice which creates a national data set and an understanding of audiences and public impact. The service provides insight lo underpin audience development, marketing and business planning for beneficiary organisations, including but not confined to Arts Council 'Nalional Portfolio Organisalions Adeste +. The purpose of this project is lo enable wider audien participation in arts and culture across Europe. 11 recognises that effective audience development is the key lo an inclusive sector that is both sustainable and relevant to a broader public. ADESTE+ project offers a recipe for organisational change - or blueprint - which enables real audience development lo take place, and new business models lo emerge as a result. It will support partners not just lo become more sustsinable in social, financial and artistic terms, bul to leach others how to do so. It will support experimentation in producing excellent work with and for a wide range of audiences, especially those usually not much engaged in arts and culture. Connect.. seeks to promote innovative cooperation beeen universities and enterprises in the cultural sector across Europe. Forming part of The Audience Agency's wider international work, CONNECT will strengthen the connection between higher education and cultural managers already working in the sector each learning from the other. Creative asset.. is a project lo develop, test and provide theatreslperforming arts organizations across Europe with the tool and skills lo learn about their audiences, ulilize the findings lo diversify and deepen the relationship with their audiences and create their artistic program and marketing using the European Theatre Night and similar audien development events as a focal point. Each restricted fund relates to a project which has been assessed in terms of completion. Where the fund is in deficit and future funding is not expected lo cover this deficit a reserves transfer from unrestricted funds lo the restricted fund has taken place to reflect the charity's contribution to the restricted project. Page 33
DoGuSign Envelope ID". F02D415D.08C54EBA.ACB5-B6FF34BE1EAC THE AUDIENCE AGENCY IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 MARCH 2021 18. Statement of funds (contlnuedl Statement of funds - prlor year Balance at 1 March 2019 Balance at 30 March 2020 Transfers Inlout Income Expenditure Unrestricted funds Charity funds Subsidiary reserves 389,762 119,5501 1,954,784 432,436 11,628,246) 1310,4051 113,6741 702,626 102,481 370,212 2,387,220 11,938,651) 113,6741 805,107 Restricted funds ACE audience finder Connect Adeste + 750,000 31,660 15,772 1750,0001 118,9401 122,0201 111,0861 112,7201 17,4261 11,086 13,674 Creative asset 19,0601 797,432 1802,0461 13,674 Totsl offunds 361,152 3,184,652 12,740,697) 805,107 19. Analysis of net assets between funds Anatysi$ of net assets between funds - current year Unrestricted Restricted funds funds 2021 2021 Total funds 2021 Tangible fixed assets Intangible fixed assets Current assets Creditors due within one year 4,805 522,660 1,311,596 1695,2411 4,805 522,660 1,327,507 1695,2411 15,911 Total 1,143,820 15,911 1,159,731 Page 34
DoGuSign Envelope ID". F02D415D.08C54EBA.ACB5-B6FF34BE1EAC THE AUDIENCE AGENCY IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 MARCH 2021 19. Analysls of net assets between funds {contlnuedl Analysls of net assets between funds - prlor year Unrestrlcted funds 2020 Total funds 2020 Tangible fixed assets Intangible fixed assets Debtors due after more than one year Current assets Creditors due within one year 7,268 482,855 20,000 819,673 1524,6891 7,268 482,855 20,000 819,673 1524,6891 Total 805,107 805, 107 20. Reconciliation of net movement in funds to net cash flow from operating activities Group 2021 Group 2020 Nel income for the year las per Statement of Financial Acliviliesl 354,624 443,955 Adjustments for: Depreciation charges Amortisation charges Loss on the sale of fixed assets Decreasellincreasel in debtors Increase in cditOrS 3,911 308,776 2,235 172,797 760 1312,3171 97,850 129,926 220,552 Net cash provided by operating adivities 1,017,789 405,280 Page 35
DoGuSign Envelope ID". F02D415D.08C54EBA.ACB5-B6FF34BE1EAC THE AUDIENCE AGENCY IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 MARCH 2021 21. Analysls of cash and cash equlvalents Group 2021 Group 2020 Cash in hand 704,057 86,297 Total cash and cash equivalents 704,057 86,297 22. Anatysls ofchanges In net debt At 30 March 2020 Cash flows At 30 March 2021 Cash al bank and in hand Debt due within 1 year 86,297 150,0001 617,760 50,000 704,057 36,297 667,760 704,057 23. Penslon commltments The group operates a defined contribution pension scheme. The assets of the scheme are held separately fmm those of the group in an independently administered fund. The pension cost charge represents contributions payable by the group to the fund and £7,11012020 £9,260) was payable to the fund at the balance sheet date and are included in creditors. Page 36
DoGuSign Envelope ID". F02D415D.08C54EBA.ACB5-B6FF34BE1EAC THE AUDIENCE AGENCY IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 MARCH 2021 24. Operatlng lease commltments At 30 March 2021 the Group and the Charity had commitments to make future minimum lease payments under non-cancellable operating leases as follows.. 2021 2020 Not later than 1 year Later than 1 year and not later than 5 years 21,148 15,324 43,451 11,502 36,472 54,953 25. Rolated party transactions There are no donations from related parties which are outside the normal course of business and no reslricled donations from related parties. No Iruslee or other person related to the charity had any personal interest in any contract of transaction entered into by the charity, including guarantees, during the year12020.' £NIll. During the previous year a spouse of an employee made a loan to the charity at an interest rate of 10 /0 per annum. The amount owed by the Charity at the year end was £NIl 12020.. £50,000) and the interest payable was £Nil12020. £7501. During the year the charity recharged The Audien Agency Servi5 £79,35712020'. £39,220) in respect of admin and support costs. At the year end the charity owed £166,478 12020.. the charity was owed £3,964). Trustees are appointed to the board primarily for the skills, experience and knowledge that they bring lo the organisation. Such individuals are likely lo hold other directorships or work within the sector for organisalions that may have links with The Audien Agency or ils subsidiary The Audience Agency Services Limited. Page 37
DoGuSign Envelope ID". F02D415D.08C54EBA.ACB5-B6FF34BE1EAC THE AUDIENCE AGENCY IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 MARCH 2021 25. Related party transactlons Icontlnuedl The following trustees either hold an executive post or sil on the board of organisations undertaking business transactions with The Audience Agency andlor its subsidiary. All salesllpurchasesl are at arms length. Name Organisation 2021 2020 Anno Torrogglanl Tamasha Théatr• Company Centre of Cultural Value Institut8 of T8chnology and Scoiely in Rio The Collections Trust British Science Asso¢ialion 100 5,730 1.200 380 Palrick Towell Chris Michaels Matthew Locke 6,178 Page 38