DoGuSign Envelope ID." 2F7A3D19-EBEE.4210-820E.BC6D173F2678 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 2023
DoGuSign Envelope ID." 2F7A3D19-EBEE.4210-820E.BC6D173F2678 THE AUDIENCE AGENCY IA Company Limited by Guarantee) CONTENTS Page Reference and Admlnlstratlve Detalls of the Charlty, Its Trustees and Advlsers Trustees. Report Independent Auditors. Report on the Financial Statements 10-13 Consolidatgd Statement of Financial Activiti9S 14 Consolidated Balance Sheet 15 Charity Balance Sheet 16 Consolldated Statement of Cash Flov 17 Notes to the Financial Statements 18-40
DoGuSign Envelope ID." 2F7A3D19-EBEE.4210-820E.BC6D173F2678 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 2023 Trustees A Adewunmi O Brook lappointed 1 June 20231 L Cromplon-Reid C Lawrence M Locke, Chair Dr C Michaels S Parker, WI Chair R Paterson S Said lappoinled 25 May 2022, resigned 16 January 20231 R Saphfft Iresigned 26 October 20221 A Singh Iresiqned 9 June 20231 S Slee (appointed 25 May 2022, resigned 31 March 20231 Company registered number 08117915 Charity registered number 1149979 Registered office The Whilehouse Wilderspool Business Park Greenalls Avenue Slocklon Heath Warringlon WA4 6HL Independent auditors Cooper Parry Group Limited Slatulory Auditor Cubo Birmingham offi 401, 3rd Floor Two Chamberlain Square Birmingham B3 3AX 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." 2F7A3D19-EBEE.4210-820E.BC6D173F2678 THE AUDIENCE AGENCY IA Company Limited by Guarantee) TRUSTEES. REPORT FOR THE YEAR ENDED 30 MARCH 2023 The Trustees are pleased to present their annual directors, report together with the consolidaled financial slalements of the charity and its subsidiary for the year ended 31 March 2023. These are also prepared to meet the requirements for a directors, report and accounts for Companies Act purposes The financial statements comply with the Charities Act 2011, Companies Act 2006, the Memorandum, and Articles of Association and Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Slandard applicable in the UK and Republic of Ireland IFRS102 effeclive 1 January 2019). Mission. Purpose & Public Benefit We believe that taking part in Cultural activities and having opportunities to exercise our creativity are important for society and personal wellbeing. 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 followed by the cost of living crisis has heightened these issues making human needs more obvious while opening the gap between those who do and do not benefit from state-supported and commercial culture and creative participation. Cultural and creative service-providers can achieve more and more equitable access through onfident insight-driven strategy, people-centred 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 First: We seek to be user-centred, to promote audlence-ntred approaches, and to put our own people first. We support organisations to do more with and for people furthest from opportunity. Open & Accessible.. We seek to be inclusive and respectful of difference in our work with audiences, clients and staff. We prioritise work to enable cultural activity to be more inclusive. We are committed to open data principles. Connected.. Working collaboratively across our network to increase impact and shared learning. Trustworthy.. We aim to be transparent and accurate, to act with confidentiality and strive for robust results. Our commitment to quality is reflected in our charter and processes. Beneficiaries of our service Our work directly supports cultural organisations, agencies and practitioners to engage more effectively with the general public, particularly to reach new or less-engaged groups. We also support community organisations with cultural strategy and work with local, national and international policymakers to improve the conditions for engagement. We provided a resour or service to over 1,200 cultural organisations in the period. Page 2
DoGuSign Envelope ID." 2F7A3D19-EBEE.4210-820E.BC6D173F2678 THE AUDIENCE AGENCY IA Company Limited by Guarantee) TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 30 MARCH 2023 We remain committed to being accessible lo the widesl variety of arts and cultural organisalions and have developed our business model to enable us lo provide to all a regular feed of current audience trends and Information. We also use funds to subsidise affordable services 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 work with theatres, concert halls, arts cenlres, performing arts companies, galleries, orchestras, outdoor festivals and site-specific producers, participatory arts, museums, heritage organisations and local authorities. We continue lo develop our work lo support those at the forefront of the stand against inequality, those promoting diversity and grassroots community initiatives. The trustees confimi that they have complied with the duty in section 4 of the Charities Act 2011 to have due regard to the Charily Commission's general guidance on Public Benefit, Charities and Public Benefit. Our Activities & Impacts In 2022123 The Audience Agency generated its income from three main sources.. Public Igrantl funding. Funding from our three main sources (Arts Council England, Creative Scotland and Arts Council Wales) enabled TAA to continue to develop Audience Finder, a national audience data and development platform, which collected and shared audience data from over 700 cultural organisation, and to provide a wrap-around customer service. It also enabled us to provide free vital, reliable intelligence (data sets and insights from them) to help organisations with their re-opening plans and helping them make confident decisions in what remained uncertain times.This Sour of income made up about 330h of the total Group income. Bespoke consultancy and research services. Our nationwide team of specialists developed and delivered a range of user-centred, research-informed projects for and in conjunction with cultural sector organisations. This source of income made up about 50 % of the total Group income. Sales of a range of data products and tools, including population profiles, bespoke surveys, Audience Spectrum {TAA's segmentation tool) mapping and profiling and touring reports. This source of income made up about 110h of the total income. In addition, through the wholly owned subsidiary, The Audience Agency Services, we delivered innovative research and development work internationally, in Berlin and Sweden, using our Audience Finder platform. This income generated 6 % of the total income. We enable organisations to engage larger and more diverse audiences and to improve their impact and resilience. The ultimate objective to widen public access and increase the nation's participation in the arts and other cultural activities. Our activities help organisalions and policymakers tackle a wide variety of barriers to the arts and ulture such as the lack of relevance, affordability, user-voice and other factors linked to social inequality. We also support organisations to develop their engagement skills and capacity to connect more effectively including digital leadership, data informed decision-making, the latest consumer research, action research and user-centred design. Page 3
DoGuSign Envelope ID." 2F7A3D19-EBEE.4210-820E.BC6D173F2678 THE AUDIENCE AGENCY IA Company Limited by Guarantee) TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 30 MARCH 2023 Achievements and Performance The 2022123 Business Plan reflected the continuing uncertainty within the sector about the full impact of the pandemic. We recognised the importance that data, evidence and insight would play on the development of the sector,. feedback from users reinforced to us our key role in continuing to enable organisations to fully understand their audiences and communities. At the start of 2022, we were cautiously confident about the plans we had put in place to continue the success of previous years. Our plans for 22123 were shaped by the following extemal factors.. An increase in the sector's thirst for (our} data and evidence, and our original research and analysis predicting audience trends and needs, plus combined data supporting place, regeneration and engagement strategies. A changed sector focused on recovery but facing and unpredictable and uncertain shorvmedium term future. Changed communities in need of socially responsible, creative regeneration on reduced resources and a greater demand for inclusion and social justice. A new appreciation of the potential of digital to drive new ideas and business models, engage new generations and democratise. The continued possibility of intemational partnerships for our trading subsidiary. It was a year of mixed fortunes for The Audience Agency. On the positive side, our services continued to grow and develop and our reach extended.. With the support of the Arts Council of England, Creative Scotland and Arts Council of Wales, we continued to develop Audience Finder, increasing the number of insights designed to help users put their data into practice, and progressing the transfer to a new improved platform. We continued our delivery of free events (webinars and training sessions), TEA Break {Thinking Evidence and Audien events), attracting 2,083 attendees. We continued the series of locally- based briefings, helping organisations to develop a better understanding of Iheir pla and community, in North Yorkshire, Staffordshire and Shropshire, South East London, South Yorkshire and Merseyside, as well as four events in Scotland. We also continued with three further waves of the 'Cultural Participation Monitor,, a longiludinal ongoing survey of changing views about participating in creative and cultural activities through the pandemic and beyond. Demand for our paid for services remained high and our income from bespoke consultancy and research services increased by 110/0 over the previous year. We were successful in winning large contracts with organisations such as The British Council, Birmingham 2022, National Library of Scotland, and The Art Fund, as well as many projects with smaller cultural sector organisations. However, the year also threw up some big strategic challenges. The Audience Agency lost the contract to continue delivery of the audience data aggregation seNice for the three years starting in April 2023. The Arts Council awarded it to Price Waterhouse Coopers. The Board drew up a revised strategy in November 2022, with three possible options for the future shape of The Audience Agency.. Actively pursue external private investment andlor further intemational sales to continue to develop the Audience Finder Platform for both the UK and the international market. Page 4
DoGuSign Envelope ID." 2F7A3D19-EBEE.4210-820E.BC6D173F2678 THE AUDIENCE AGENCY IA Company Limited by Guarantee) TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 30 MARCH 2023 Adapting the free Audience Finder service into a new paid for (commercial) service, with an enhanced range of tools and services to support the sector. Reducing in size and scope and moving lo a Gonsultancy and research organisation only. Since then, our efforts have been on building and developing the offers and the infrastructure, systems and processes to enable us to operate as a more commercial organisation. Plans for the future The Board had agreed that 2023124 would be a transition year for The Audience Agency, with the aim that by the end of Ihe year, the organisation would have a clear strategy for Ihe future, with an appropriate business model and organisalional structure to support that. We have so far been unable to secure the necessary level of investment for ongoing international product development at this time. While we have continued to launch new tools for the UK market, we have suspended for the moment) the search for investors and reduced the scale and scope of product development. To support this change of direction, the Board carried out the following restructure. Technical product development activity was moved from TAAS into the charity (TAAI from 1 April 2023 Staff remaining within TAAS were transferred to TAA as at 31 August 2023 The Audien Finder software intangible asset was purchased by TAA from TAAS on 31 August 2023. The first half of 23124 proved challenging in terms of sales, as the TAA'S core market is severely depressed. To compensate this shortfall, we used £445k ACE Transition Fund plus our own reserves to invest in new initiatives designed to help us to adapt to our changed circumstances and changes in the marketplace. However, we have also had to make staffing savings during the year, making 13 redundancies as well as losing posts through turnover. To prepare for the next financial year, TAA merged with Culture 24 on 6 November 2023, which offers a vital new resource for the cultural sector combining complementary experience and expertise, built over many years of supporting and leading positive change. This transfer brought in 3 new members of staff, as well as financial assets. Moving into 24125, The Audience Agency has restructured and developed ils business model to offer a new five-pillar programme of services and products, hallmarked by an evidence-led and people- entred approach. The Culture24 team will lead on a digital pillar, with the other four pillars being participation and engagement, impact and evaluation, cultural and creative places, data and evidence for policy. We will also continue to offer a suite of popular, reliable data services which support all five pillars. Financial review TAA'S financial objective is to ensure financial stability and continued solvency year on year to enable it to pursue its aims and objectives. The aim has been to increase its level of free reserves (see reserves policy below). For the financial period 2022123, the total group income was £3.4m, a 5°/0 increase over the previous financial year {£3.24ml. Expenditure was £3.82m, a 26°/0 increase over the previous year1£3.03ml. However, £260k of this expenditure was due to the impairment of the Audien Finder intangible Page 5
DoGuSign Envelope ID." 2F7A3D19-EBEE.4210-820E.BC6D173F2678 THE AUDIENCE AGENCY IA Company Limited by Guarantee) TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 30 MARCH 2023 asset. Given the loss of the Arts Council Funding from April 2023, the Board of the Trading Subsidiary considered it prudent to redu the value of the asset. Like for like on the previous year, the increase in expenditure was 17 % over the previous year. The deficit in year was therefore £422k. The eamed income in the charity increased in year, with the sale of both Consultancy and Research services and data products being strong. The increase in charity expenditure was largely down to increases in the number of staff and pay increases. The Group deficit was affected by the loss made by the Trading Subsidiary. Expected income from international sales of Audience Finder didn't materialise as expected, but a decision was taken by the Board to continue to invest land use some of the reserves) in the developmenl of the Audience Finder platform, particulady to develop new tools which could generate revenue once the Arts Council funding had stopped. The Group reserves at the end of March 2023 were £940,800. Reserves policy The Board's policy on resetves is to target a reseNe level which is equal to three to six months, projected fixed costs (fixed costs being rent, rates and other running, but not activity costs). This target level of reserves should be free reserves, or money readily realisable, and therefore should not include fixed assets. Where the target level of reserves has been reached, the Board would seek to reinvest those surplus funds in the following financial year, to support the development of our service to the sector. Al the period end, total unrestricted reserves were £941 k which included £269k of fixed assets. Free reserves were therefore £672k. Our most rent calculation is that three months, running costs would be approximately £800k. Risk Management The Board regularfy reviews and assesses the risks to which TAA may be exposed. A risk register identifies those risks and aclions agreed lo mitigate them. Each Board meeting highlights the key issues and risks facing each ofthe Business Units and for TAA as a whole. The identified high-level risks at the end of November 2023 were.. RISK Audience Finder can't generate sufficient income to continue develo ment Uncertain cultural and creative sector environment MITIGATION New products and restructured Marketing and Sales team Close monitoring marketing and sales strategyl focused business develo mentlrevised business Review pricing model Measure and track budgeting and attribution Productise Build in flex throu lan Margins flatlineldecrease h associate network Page 6
DoGuSign Envelope ID." 2F7A3D19-EBEE.4210-820E.BC6D173F2678 THE AUDIENCE AGENCY IA Company Limited by Guarantee) TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 30 MARCH 2023 Weak Cash Flow Weekly cashflow review Savings plan implemented Budgets developed to generate higher net sur luses Continuous review of priorities Flexible resourcing options Practices lementation of new structure and roles Insufficient capacity or capabilitylloss of skills Structure, Governance and Management Governing Document The Audience Agency is a company limited by guarantee, established on 25 June 2012, and was registered as a charity on 29 November 2012. It is governed by its Memorandum and Articles of Association govern ils affairs. The company's object is the promotion of the arts for public benefit by the provision of advi, support and information, and the provision of support services. The governing body is the Board whose members are non-executive and unpaid. They meet regularly and relain full and effective control over the Company and monilor the Executive. The Board is involved in major strategic decisions and has ultimate responsibility for the conduct and financial stability of TAA. Recruitment and Appointment 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 of 31 March 2023, the Board comprised nine people. New Trustees are appointed through an open recruitment process, and roles are advertised widely through sector sites and specialist recruitment sites to encourage as wide a response as possible. Induction and Training of Trustees Information packs are provided to all Trustees detailing 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 governed. Other documents provided to new Trustees include previous accounts, the Business Plan and Charity Commission guidan. New Trustees are also partnered with one of the Executive team so that they can get a more detailed understanding 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 importan. Organisational Structure The organisational structure is reviewed regularly. Page 7
DoGuSign Envelope ID." 2F7A3D19-EBEE.4210-820E.BC6D173F2678 THE AUDIENCE AGENCY IA Company Limited by Guarantee) TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 30 MARCH 2023 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, limeliness and relevance of the information provided to the Board meetings by members oflhe Executive Team. The Board has established a Finance Sub-committee, which meets weeks before each Board meeting, to review the financial position and provide advice and support to the Executive Team. Related Parties The organisation mainlains 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 Audien¢e Agency Services is a wholly owned subsidiary of the Company and was established originally to manage a print distribution service in the North West of England. In 2020121, the subsidiary comprised Golant Innovation, an innovation agency, whose consultancy services complimented those of the charity. The research and development work for Audience Finder is 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 to an internal evaluation scheme and external market review. Statement of Trustees, Responsibilities The trustees (who are also directors of The Audience Agency for the purposes of company law) are responsible for preparing the trustees, annual report and the financial statements in accordance with applicable law and United Kingdom Accounting Stsndards (United Kingdom Generally ACpIed Accounting Practice). Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable group and of the incoming resources and application of resources, including the income and expenditure, of the charitable group for that period. In preparing ihese financial statements, the trustees are required to.. Select suitable accounting policies and then apply them consistently Observe the methods and principles in the Charities SORP Make judgements and estimates that are reasonable and prudent State whether applicable UK Accounting Standards and statements of recommended practice have been followed, subject to any material departures disclosed and explained in the financial statements Prepare the financial statements on the going conrn basis unless il is inappropriate to presume that the charity will continue in operation The trustees are responsible for keeping adequate accounting records Ihat disclose wilh reasonable accuracy al any lime the financial position of the charitable group and enable them to ensure that the financial statements comply with the Companies Act 2006, They are also responsible for Page 8
DoGuSign Envelope ID." 2F7A3D19-EBEE.4210-820E.BC6D173F2678 THE AUDIENCE AGENCY IA Company Limited by Guarantee) TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 30 MARCH 2023 safeguarding the assels of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. As 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 to make themselves aware of any relevant audit information and to establish that the auditors are aware of that infomation. 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 Group Limited continued as the charitable company s auditors in 2022123. This report has been prepared in accordance with the provisions applicable to companies subject to the small companies, regime of the Companies Act 2006. The trustees, annual report has been approved by the trustees and signed on their behalf by". Do¢uS*Mdty'. FAy&LY AB11AID3FgF4BB M Locke ICh8ir of Trustees) S Parker (Vice Chair of Trusleesl 08 December 202 3 Dale..06 December 2023 Page 9
DoGuSign Envelope ID." 2F7A3D19-EBEE.4210-820E.BC6D173F2678 THE AUDIENCE AGENCY IA Company Limited by Guarantee) INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF THE AUDIENCE AGENCY Oplnlon We have audited the financial statements of The Audience Agency (the 'parenl charitable company'l and its subsidiary Ilhe 'group'l for the year ended 30 March 2023 which comprise the Consolidated Statement of Financial Activities, the Consolidated Balance Sheet, the Charity Balan 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 Standard 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 affairs as at 30 March 2023 and of the Group's incoming resources and application of resources, including ils income and expenditure for the year then ended., have been properly prepared in accordan 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 accordance with International Standards on Auditing IUKI IISAS IUKII and applicable law. Our responsibilities under those standards are further described in the Auditors. 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 evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclusions relating to going concorn In auditing the financial statements, we have concluded that the Trustees, use of the going COnM 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 lo events or conditions that, individually or collectively, may Cast significant doubt on the Group's or the parent charitable company's ability lo continue as a going conrn 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 with respect lo going concem are described in the relevant sections of this report. Page 10
DoGuSign Envelope ID." 2F7A3D19-EBEE.4210-820E.BC6D173F2678 THE AUDIENCE AGENCY IA Company Limited by Guarantee) INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF THE AUDIENCE AGENCY ICONTINUEDI Other Informatlon The other infomialion comprises the information included in the Annual Report other than the financial statements and our Auditors, Report thereon. The Trustees are responsible for the other information contsined within the Annual Report. Our opinion on the financial statements does not cover the other information and, except lo the extent otherwise explicidy ststed in our report, we do not express any fomi of assurance conclusion thereon. Our responsibility is lo read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial ststemenls or our knowledge obtained in the course of the audit, or otherwise appears lo be materially misslaled. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. 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 information given in the Trustees, Report for the financial year for which the financial stslements 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 understsnding of the charitsble company and ils environment obtained in the course of the audit, we have not identified material misstalemenls in the Trustees, Report. We have nothing to report in respect of the following matters in relation lo which Companies Act 2006 requires us to report to you if, in our opinion". the parent Charitable company has not kept adequate and sufficient accounting records, or retums adequate for our audit have not been received from branches not visited by us, or the parent charitable company financial stslemenls 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 ompanies regime and lake advantage of the small companies, exemptions in preparing the Trustees. Report and from the requirement to prepare a Strategic Report. Page11
DoGuSign Envelope ID." 2F7A3D19-EBEE.4210-820E.BC6D173F2678 THE AUDIENCE AGENCY IA Company Limited by Guarantee) INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF THE AUDIENCE AGENCY ICONTINUEDI Responslbllltles of trustees As explained more fully in the Trustees, Responsibilities Statement, the Trustees (who are also the directors of the charitsble 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 necessary to enable the preparation of financial statements that are free from material misstatement, whether due lo fraud or error. In preparing the financial ststemenls, the Trustees are responsible for assessing the Group's and the parent charitable company's ability lo 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 charitsble company or to cease operations, or have no realistic alternative but lo do so. Audltors. responslbllltles for the audlt of the flnanclal statements Our objectives are lo obtain reasonable assurance about whether the financial statements as a whole are free from material misststemenl, whether due to fraud or error, and to issue an Auditors, Report that includes our opinion. Reasonable assurance is a high level of assurance, bul is not a guarantee that an audit conducted in accordance with ISAS IUKI will always delect a material misstalemenl when il 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, to delecl material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of delecling irregularities, induding fraud is detsiled below.. Our assessment focussed on key laws and regulations the Group and parent charitable company has to comply with and areas of the financial stslemenls we assessed as being more susceptible to misslatemenl. 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 lo delecling irregularities included, but was not limited to, the following.. obtaining an understanding of the legal and regulatory framework applicable lo 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 procedures, through discussions with management and by performing walklhrough testing over key areas., obtaining an understanding of the Group and parent charitable company's risk assessment prosS, including the risk of fraud., reviewing meeting minutes of those charged with governan throughout the year., and performing audit lesling to 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. IrrUlaritIeS arising from fraud are inherently more difficult lo detect than those arising from error. Page 12
DoGuSign Envelope ID." 2F7A3D19-EBEE.4210-820E.BC6D173F2678 THE AUDIENCE AGENCY IA Company Limited by Guarantee) INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF THE AUDIENCE AGENCY ICONTINUEDI Because of the inherent limitstions of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misslalement 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 ststemenls, as we will be less likely to become aware of InStanS of non-compliance. The risk is also greater regarding irregularities occuring 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.o .uklaudilorsres onsibilities. This description forms part of our Auditors, Report. Use of our report This report is made solely lo 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, in accordance with Part 4 of the Charities IAccounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might stale lo the charitsble company's members those matters we are required lo stale lo them in an Auditors, Report and for no other purpose. To the fullest exlenl permilled by law, we do not accept or assume responsibility to anyone other than the charitsble company and its members, as a body, for our audit work, for this report, or for the opinions we have formed. •l.c Slmon Atklns FCA (Senlor Statu for and on behalf of Cooper Parry Group Llmlted Statutory Auditor Cubo Birmingham Office 401, 3rd Floor Two Chamberlain Square Birmingham B3 3AX Auditor) Dale.. 11 Decemb8r 2023 Page 13
DoGuSign Envelope ID." 2F7A3D19-EBEE.4210-820E.BC6D173F2678 THE AUDIENCE AGENCY IA Company Limited by Guarantee) CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES {INCORPORATING INCOME AND EXPENDITURE ACCOUNTI FOR THE YEAR ENDED 30 MARCH 2023 Unrestricted funds 2023 Restricted funds 2023 Total funds 2023 Total funds 2022 Note Income from: Donations and legacies Charitsble activities Other trading activities Investments other income 1,289 2,851,517 313, 165 2,236.893 280,627 1.091 118.988 763.800 3,000.693 280,627 1.091 118.988 70,000 Total income 2,637,599 763,800 3,401,399 3,235,971 Expenditure on: Raising funds Charitable activities 1,085.393 1,974.357 1,085.393 2,738.157 555. 758 2,476,993 763.800 Total expenditure 3,059,750 763,800 3,823,550 3,032, 751 Net movement in funds {422.151) (422.151) 203.220 Reconciliation of funds: Totsl funds brought forward Nel movement in funds 1,362.951 1422,1511 1,362.951 1422,1511 1, 159, 731 203,220 Total funds carried forward 940.800 940.800 1,362.951 The Consolidated Statement of Financial Activities includes 811 gains and losses recognised in the year. The notes on pages 18 to 40 form part of these financial statements. Page 14
DoGuSign Envelope ID." 2F7A3D19-EBEE.4210-820E.BC6D173F2678 THE AUDIENCE AGENCY IA Company Limited by Guarantee) REGISTERED NUMBER: 08117915 CONSOLIDATED BALANCE SHEET AS AT 30 MARCH 2023 2023 2022 Note Fixed assets Intangible assets Tangible assets 13 14 250.000 18,426 464.682 18,444 268,426 483, 126 Current assets Debtors Cash al bank and in hand 16 733.801 675,393 913,080 864, 195 1,409.194 1. 7T7,275 Creditors.. amounts falling due within one year 17 1731.595) (772,450) Net current assets 677,599 1, 004,825 Total assets less current liabilities 946,025 1,487.953 Creditors.. amounts falling due after more than one year 18 15,225} (125,000) Total net assets 940,800 1,362,951 Charity funds Unrestricted funds 20 940,800 1,362,951 Total funds 940,800 1,362,951 The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect lo accounting records and preparation of financial statements. The financial statements have been prepared in accordan with the provisions applicable to entities subject lo the small companies regime. The financial statements were approved and authorised for issue by the Trustees on and signed on their behalf by.. 06 December 2023 Docu8b3Mdby'. December 2023 F9F46B.. S Parker (Wi chair ofTrusYees Ichair of Trustees) The notes on pages 18 to 40 form part of these financial statements. Page 15
DoGuSign Envelope ID." 2F7A3D19-EBEE.4210-820E.BC6D173F2678 THE AUDIENCE AGENCY IA Company Limited by Guarantee) REGISTERED NUMBER: 08117915 CHARITY BALANCE SHEET AS AT 30 MARCH 2023 2023 2022 Note Fixed assets Tangible assets Investments 14 15 14.458 250,001 74.594 464,683 264,459 479,277 Current assets Debtors Cash al bank and in hand 16 657.971 597,762 714,444 772,050 1,255.733 1.486,494 Creditors.. amounts falling due within one year 17 1519.686) (701,523) Net current assets 736,047 784,971 Total assets less current liabilities 1,000,506 1,264.248 Creditors.. amounts falling due after more than one year 18 15,225} (125,000) Total net assets 995,281 1, 139,248 Charity funds Unrestricted funds 20 995,281 1, 139,248 Total funds 995,281 1, 139,248 The Charity's nel movement in funds for the year was1£143,9671 (2022 - £189,359J. The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect lo accounting records and preparation of financial statements. The financial statements have been prepared in accordan with the provisions applicable lo entities subject to the small companies regime The financial statements were approved and authorised for issue by the Trustees on and signed on their behalf by.. DU$V41Y." 08 December 2023 06 December 2023 F9F4... S Parke stL*L PAthY (VI Chair oFfrus Ichair of Trustees) ees The notes on pages 18 to 40 form part of these financial statements. Page 16
DoGuSign Envelope ID." 2F7A3D19-EBEE.4210-820E.BC6D173F2678 THE AUDIENCE AGENCY IA Company Limited by Guarantee) CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 MARCH 2023 2023 2022 Note Cash flows from operating activities Nel cash provided by operating activities 22 235,769 296, 137 Cash flovts from investing activities Purchase of intangible assets Purchase of tangible fixed assets 13 14 1359,1611 19,8191 (242,343) (18,650) Net cash used in investing activities 1368,9801 1260,9931 Cash flows from financing activities Cash inflows from new borrowing Repayments of borrowing 125,000 155,5911 Net cash (used inllprovided by financing activities (55,5911 125.000 Change In cash and cash equlvalents In the year Cash and cash equivalents at the beginning of the year 1188,8021 160.138 864,195 704.057 Cash and cash equivalents at the end ofthe year 23 675,393 864. 795 The notes on pages 18 to 40 form part of these financial statements Page 17
DoGuSign Envelope ID." 2F7A3D19-EBEE.4210-820E.BC6D173F2678 THE AUDIENCE AGENCY IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 MARCH 2023 General Informatlon The Audien Agency is a private company, limited by guarantee, incorporated in England and Wales 1081179151. The principal address of the group is The Whitehouse, Wilderspool Business Park, Greenalls Avenue, Stockton Heath, Warringlon, 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 202312022.. year ended 30 March 20221. The financial statements have been prepared in accordance with the Charities SORP IFRS 1021 Accounting and Reporting by Charities.. Stslement of Recommended Practice applicable to charities preparing their accounts in accordan with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 leffective 1 January 20191, the Financial Reporting Standard applicable In the UK and Republic of Ireland IFRS 1021 and the Companies Act 2006. The Audien 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 staled in the relevant accounting policy. The Consolidated Statement of Financial Activities ISOFAI and Consolidated Balance Sheet consolidate the financial slalements of the Charity and its 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 Ils own Statement of Financial Activities in these financial slatemenls. The parent charity made a deficit of £143,967. 2.2 Going concern Al the balan sheet dale, the Charity had a strong net asset position. Al the lime of signing these accounts, the trustees have considered the effect of the Coronavirus pandemic on the going concern position, and consider that the Charity will continue lo operate for a period of al least 12 months from the dale of signing these accounts due to the reserves available to it. The financial forecasts prepared show that the Charity will be able lo 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." 2F7A3D19-EBEE.4210-820E.BC6D173F2678 THE AUDIENCE AGENCY IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 MARCH 2023 Accountlng pollcles Icontlnuedl 2.3 Income All income is recognised once the Charity has entillemenl lo the income, it 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 balance 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 reipt, 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 it is receivable and to the extent the goods have been provided or on completion of the servi. 2.4 Expendlture Expenditure is recognised once there is a legal or constructive obligation lo transfer economic benefit lo a third party, it is probable that a transfer of economic benefi'ts 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 lo a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned beeen those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of lime spent, and depreciation charges allocated on the portion of the asset's use. Expenditure on charitable activities is incurred on directly 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 SeiCe5 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 time is not recognised,. refer lo the Iruslees, annual report for more information about their contribution. On receipt, 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 to pay lo obtain setvices 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 tsngible fixed assets are credited lo the Consolidated Statement of Financial Activities and held in reserves, depreciation is charged over the expected useful lives of the assets concerned. Other grants are credited lo the Consolidated Statement of Financial Activities as the related expenditure is incurred. Page 19
DoGuSign Envelope ID." 2F7A3D19-EBEE.4210-820E.BC6D173F2678 THE AUDIENCE AGENCY IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 MARCH 2023 Accountlng pollcles Icontlnuedl 2.7 Intanglble assets and amortisation Intangible assets are capilalised and recognised when future economic benefits are probable and thethe asset can be measured reliably. Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. Goodwill arising on business combinations is capilalised, classified as an asset on the balance sheet and amortised on a straight line basis over its useful life. The period chosen for writing off goodwill is three years. Provision is made for any impairment. Amortisalion is provided on intangible assets al rates calculated lo 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 SOfare 33 0/0 33 0/0 2.8 Tanglble flxed assets and depreclatlon Tangible fixed assets costing £1,000 or more are capitslised 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 at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into ils 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 lo develop an intsngible asset to further the charitable 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 at 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." 2F7A3D19-EBEE.4210-820E.BC6D173F2678 THE AUDIENCE AGENCY IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 MARCH 2023 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 date 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 Balance Sheet dale as a result of a past event, il 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 al the amount that the Charity anticipates it will pay to settle the debt or the amount it has reiVed as advanced payments for the goods or setvices it musl provide. Provisions are measured al the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted al the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Consolidated Statement of Financial Activits'es 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 Operating leases Rentsls paid under operating leases are charged to the Consolidated Statement 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 unrestricted 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 lo be used in accordance with specific restrictions 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." 2F7A3D19-EBEE.4210-820E.BC6D173F2678 THE AUDIENCE AGENCY IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 MARCH 2023 Accountlng pollcles Icontlnuedl 2.17 Redundancy I temilnatlon payments All redundancy and termination payments are recognised within the year. Income from government grants Unrestrlcted funds 2023 Total funds 2023 Total funds 2022 Government grants 1,289 Government grants received in the prior period relate to the Coronavirus Job Retention Scheme. Page 22
DoGuSign Envelope ID." 2F7A3D19-EBEE.4210-820E.BC6D173F2678 THE AUDIENCE AGENCY IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 MARCH 2023 Income from charltable actlvltles Unrestricted Restricted funds funds 2023 2023 Total funds 2023 Total funds 2022 Major stakeholders and funders Arts Council England ADESTE Arts Council Wales Creative Scotland 763,800 763,800 885,800 25,000 81,210 249,907 79,608 249,968 79,608 249.968 Subtotal for major Stakeholders and funders Bespoke Services Consullaney and Research 329,576 763,800 1,093,376 1,241,917 1,541,443 1,541,443 1,367,016 Subtotal for bespoke services Packagelprogramme income Audien spectrum linsIng Enhanced dashboards 1,541,443 1.541 A43 1,367,016 46,975 115,631 88,095 102,008 13,165 46.975 115,631 88,095 102,008 13.165 29,415 73,025 80,797 51.728 7.619 Package services Other services- groups Showstals Subtotal for packagelprogramme income 36S,874 365,874 242,584 2,236,893 763,800 3.000.693 2, 851.517 Tol812022 2,062.717 788.800 2.857,517 There was an additional £nil reiVed from Arts Council England which was recognised in The Audien Agency Services Limited12022.' £40,000). Page 23
DoGuSign Envelope ID." 2F7A3D19-EBEE.4210-820E.BC6D173F2678 THE AUDIENCE AGENCY IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 MARCH 2023 Income from other tradlng actlvltles Income from non charitable trading activities Unrestrlcted funds 2023 Total funds 2023 Total funds 2022 Consultancy services Other income 264,381 16,246 264,381 16,246 300,515 12.650 280,627 280,627 313, 165 All income from other trading activities in the prior year was unrestricted. Other incoming resources Unrestricted funds 2023 Total funds 2023 Total funds 2022 Research and development tax credit 118,988 118.988 70, 000 All income from other incoming resources in the prior year was unreslrieled. Page 24
DoGuSign Envelope ID." 2F7A3D19-EBEE.4210-820E.BC6D173F2678 THE AUDIENCE AGENCY IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 MARCH 2023 Expendlture on ralslng funds Trading subsidiary expenses Unrestricted funds 2023 Total funds 2023 Total funds 2022 Cost of sales Administration expenses Staff costs 144,125 615,087 326,181 144,125 615,087 326,181 111,282 311,062 133,414 1,085,393 1.085,393 555, 758 Analysls of expendlture by actlvltles Activities undertaken directly 2023 Total funds 2023 Total funds 2022 Advice and assistance 2,738,157 2,738,157 2,476,993 Page 25
DoGuSign Envelope ID." 2F7A3D19-EBEE.4210-820E.BC6D173F2678 THE AUDIENCE AGENCY IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 MARCH 2023 Analysls of expendlture by actlvltles Icontlnuedl Analysls of direct costs Advlce & asslstsnce 2023 Total funds 2023 Total funds 2022 Staff costs 1,797,343 7,940 280,318 397,784 83,071 73,718 14,800 83,183 1,797,343 7.940 280.318 397.784 83,071 73.718 14.800 83.183 1,532,290 21,242 291, 167 374, 736 97,228 76,252 11,500 72,578 Depreciation and amortisation Programme cost Bespoke overheads Office, travel and training costs Rent and rates Governance Website and IT 2,738, 157 2,738.157 2.476,993 Total 2022 2,476,993 2,476,993 The above expenditure is split £763,800 12022.. £804,711) restricted expenditure and £1,974,35712022'. £1,672,282) unrestricted expenditure. G0Veman costs include audit remuneration of £14,800 12022.. Governance costs include audit remuneration of £11,500) Auditors. remuneration 2023 2022 Fees payable to the Charity's auditor for the audit of the Charity's annual accounts 14,800 11,500 Page 26
DoGuSign Envelope ID." 2F7A3D19-EBEE.4210-820E.BC6D173F2678 THE AUDIENCE AGENCY IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 MARCH 2023 10. Net Income Nel income is stated after charging.. 2023 2022 Depreciation of tangible fixed assets Amortisation of intangible fixed assets Auditorfs remuneration Imp8irmenl of intangible assets Operating lease rentsls 9,837 314,392 14,800 259,451 14,077 5.011 300.321 11,500 21, 148 11. Staff costs Group 2023 Group 2022 Charlty 2023 Charity 2022 Wages and salaries Social security costs Pension cost 1,852.106 214.837 56,581 1.458, 718 158,946 48, 040 1.566,176 184,410 46,757 1,325.304 158,946 48,040 2,123,524 1.665. 704 1,797,343 1, 532.290 During the year, one employee received a slatulory redundancy payment of £1,23512022.' £nill. The average number of persons employed by the Charity during the year was as follows.. Group 2023 No. Group 2022 No. Adminislralive staff 60 48 The number of employees whose employee benefits {excluding employer pension costs) exceeded £60,000 was.. Group 2023 No. Group 2022 No. In the band £60,001- £70,000 The total employee benefits of the key management personnel of the charity were £508,249 18 people) 12022.. £330,84216 peoplell. Page 27
DoGuSign Envelope ID." 2F7A3D19-EBEE.4210-820E.BC6D173F2678 THE AUDIENCE AGENCY IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 MARCH 2023 12. Trustees. remuneratlon and expenses During the year, no Trustees reiVed any remuneration or other benefits {2022- £NIL). During the year ended 30 March 2023, expenses tolalling £nil were reimbursed or paid directly lo no Trustees (2022 - £nil to no Trustees). 13. Intanglble assets Group Computer software Data assets Total Cost At 31 March 2022 338,360 1,023,574 359,161 1,361,934 359,161 Additions At 30 March 2023 338,360 1.382.735 1.721.095 Amortisation At 31 March 2022 Charge for the year Impairment charge 338,360 558,892 314,392 259,451 897,252 314,392 259,451 At 30 March 2023 338,360 1.132.735 1.471.095 Net book value At 30 March 2023 250,000 250,000 At 30 Ma 2022 464, 682 464,682 Page 28
DoGuSign Envelope ID." 2F7A3D19-EBEE.4210-820E.BC6D173F2678 THE AUDIENCE AGENCY IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 MARCH 2023 13. Intanglble assets {contlnued) Charity Data assets Cost At 31 March 2022 338,360 At 30 March 2023 338,360 Amortisation At 31 March 2022 338.360 At 30 March 2023 338.360 Net book value At 30 March 2023 At 30 Ma 2022 Page 29
DoGuSign Envelope ID." 2F7A3D19-EBEE.4210-820E.BC6D173F2678 THE AUDIENCE AGENCY IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 MARCH 2023 14. Tanglble flxed assets Group Office Computer equipment equipment Total Cost or valuation At 31 March 2022 Additions 32,158 2,015 103,627 7,804 135,785 9,819 At 30 March 2023 34,173 111,431 145,604 Depreclation At 31 March 2022 Charge for the year 28,308 1,897 89,033 7,940 117,341 9,837 At 30 March 2023 30,205 96,973 127,178 Net book value At 30 March 2023 3,968 14,458 18,426 At 30 Ma 2022 3,850 14,594 78,444 Page 30
DoGuSign Envelope ID." 2F7A3D19-EBEE.4210-820E.BC6D173F2678 THE AUDIENCE AGENCY IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 MARCH 2023 14. Tanglble flxed assets Icontlnuedl Charity Office equipment Computer equipment Total Cost or valuation At 31 March 2022 Additions 27,888 103,627 7,804 131,515 7,804 At 30 March 2023 27,888 111,431 139,319 Depreciation At 31 March 2022 Charge for the year 27,888 89,033 7,940 116,921 7,940 At 30 March 2023 27,888 96,973 124,861 Net book value At 30 March 2023 14,458 14,458 At 30 March 2022 14,594 14,594 Page 31
DoGuSign Envelope ID." 2F7A3D19-EBEE.4210-820E.BC6D173F2678 THE AUDIENCE AGENCY IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 MARCH 2023 15. Flxed asset Investments Investments in subsidiary Programme companies investment Totsl Charity Cost or valuation At 31 March 2022 1.023,616 359.160 1.023,617 359.160 Additions At 30 March 2023 1.382,776 1.382,777 Impaimient At 31 March 2022 Charge for the year 558,934 573.842 558,934 573.842 At 30 March 2023 1.132,776 1.132,776 Net book value At 30 March 2023 250.000 250.001 At 30 March 2022 464, 682 464, 683 Page 32
DoGuSign Envelope ID." 2F7A3D19-EBEE.4210-820E.BC6D173F2678 THE AUDIENCE AGENCY IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 MARCH 2023 15. Flxed asset Investments Icontlnuedl Prlnclpal subsldlarles The following were subsidiary undertakings of the Charity.. Names Company number Holdlng Included in consolidation The Audien Agency Setvices Limited 06994989 The financial results of the subsidiaries for the year were.. Names Income Expendlture Loss for the year The Audien Agency Setvices Limited 383,369 (1,235,393) {852.0241 The Audience Agency Services Limited had nel assets of £195,520 al 30 March 2023. 16. Debtors Group 2023 Gmup 2022 Charity 2023 Charity 2022 Due within one year Trade debtors 397.433 586,521 372,232 147,777 62,516 75,446 548,186 Amounts owed by group undertakings Other debtors Prepayments and accrued income 260.922 75.446 250,617 75,942 90,316 75.942 733.801 913,080 657,971 71 4,444 Page 33
DoGuSign Envelope ID." 2F7A3D19-EBEE.4210-820E.BC6D173F2678 THE AUDIENCE AGENCY IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 MARCH 2023 17. Credltors: Amounts falllng due wlthln one year Group 2023 Gmup 2022 Charity 2023 Charity 2022 Unsecured bank loan Trade creditors Amounts owed to group undertakings Other laxalion and social security other creditors Accruals 64.184 181.929 64,184 131,875 196,251 138, 733 89,411 130.236 8.692 31,316 303, 135 114.160 9.629 52.032 309,661 130, 712 8,692 43, 902 392,893 114,160 9,629 39,124 160,714 Deferred income 731.595 772,450 519,686 701.523 Group 2023 Group 2022 Charity 2023 Charity 2022 Deferred income at 31 March 2022 Resour$ deferred during the year Amounts released from previous periods 392,893 309.661 (392.893) 425,968 392,893 (425,968J 300,285 160,714 1300,2851 199.906 300,285 (199,906) 309,661 392, 893 160,714 300,285 18. Creditors: Amounts falling due after more than one year Group 2023 Group 2022 Charity 2023 Charity 2022 Unsecured bank loan 5,225 125,000 5,225 125,000 Page 34
DoGuSign Envelope ID." 2F7A3D19-EBEE.4210-820E.BC6D173F2678 THE AUDIENCE AGENCY IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 MARCH 2023 19. Flnanclal Instruments Group 2023 Gmup 2022 Charity 2023 Charity 2022 Financial assets Financial assets measured al fair value through income and expenditure 675.393 864, 195 597,762 772.050 Group 2023 Group 2022 Charity 2023 Charity 2022 Financial liabilities Financial liabilities measured al fair value through Income and expenditure 69.409 125,000 69,409 125,000 Financial assets measured at fair value through income and expenditure comprise cash al bank and in hand. Other financial liabilities measured at fair value through income and expenditure comprise unsecured bank loan. Page 35
DoGuSign Envelope ID." 2F7A3D19-EBEE.4210-820E.BC6D173F2678 THE AUDIENCE AGENCY IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 MARCH 2023 20. Statement of funds Statement of funds - current year Balance at 31 March 2022 Balance at 30 March 2023 Income Expenditure Unrestricted funds Charity funds Subsidiary reserves 1,139.309 223,642 2.254,230 12,398,258) 383,369 (661,4921 995.281 154,4811 1,362.951 2.637.599 13.059.750) 940.800 Restricted funds Arts Council England 763,800 {763,8001 Total of funds 1,362.951 3.401.399 13.823.550) 940.800 Page 36
DoGuSign Envelope ID." 2F7A3D19-EBEE.4210-820E.BC6D173F2678 THE AUDIENCE AGENCY IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 MARCH 2023 20. Statement of funds (contlnuedl Statement of funds - prior year Balance al 30 March 2021 Balance at 30 March 2022 Income Expenditure Unrestricted funds Charity funds Subsidiary reserves 933,978 209.842 2,076, 656 (1,871,325) 370,515 {356, 715) 1, 139.309 223,642 1, 143,820 2,447, 171 (2,228,040) 1,362,951 Restricted funds Arts Council England Adeste + 763, 800 25,000 (763,800) (40,911) 15,917 15.971 788, 800 {804, 71 l) Total of funds 1, 759, 731 3,235,971 (3,032, 751) 1,362,951 21. Analysis of net assets between funds Analysis of net assets between funds - current year Unrestricted funds 2023 Total funds 2023 Tangible fixed assets Intsngible fixed assets Current assets 18,426 250,000 1,409,194 1731,5951 15,2251 18.426 250.000 1,409,194 1731.595 {5.225) Creditors due within one year Creditors due in more than one year Total 940,800 940,800 Page 37
DoGuSign Envelope ID." 2F7A3D19-EBEE.4210-820E.BC6D173F2678 THE AUDIENCE AGENCY IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 MARCH 2023 21. Analysls of net assets between funds {contlnuedl Analysls of net assets between funds - prior year Unreslricled funds 2022 Total funds 2022 Tangible fixed assets Intangible fixed assets Current assets Creditors due within one year Creditors due in more than one year 18,444 464,682 1.777,275 (772,450) (125, 000) 18,444 464,682 1, 777.275 (T72,450) (125,000) Total 1.362, 951 1,362.951 22. Reconciliation of net movement in funds to net cash flow from operating activities Group 2023 Group 2022 Nel incomelexpendilure for the year (as per Statement of Financial Acb'vitiesl 1422,1511 203,220 Adjustmonts for: Depreciation charges Amortisation charges Impairment charges Decreasellin¢reasel in debtors Increaselldecreasel in creditors 9,837 314,392 259,451 179,279 1105,0391 5,011 300,321 (289,630) 77,209 Net Cash provlded by operatlng actlvltles 235,769 296, 131 Page 38
DoGuSign Envelope ID." 2F7A3D19-EBEE.4210-820E.BC6D173F2678 THE AUDIENCE AGENCY IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 MARCH 2023 23. Analysls of cash and cash equlvalents Group 2023 Group 2022 Cash in hand 675,393 864. 195 Total cash and cash equivalents 675,393 864. 795 24. Anatysls ofchanges In net debt Other non- cash At 30 March hanges 2023 At 30 March 2022 Cash flows Cash al bank and in hand Debt due within 1 year Debt due after 1 year 864.195 1188,8021 675.393 164,1841 {5,2251 164,1841 64,184 125,000) 55,591 739.195 1133,2111 605.984 25. Pension commitments The group operates 8 defined contribution pension scheme. The assets of the scheme are held separately from those of the group in an independently administered fund. The pension cost charge represents contributions payable by the group to the fund and £10,06212022 £8,692) was payable lo the fund al the balanee sheet date and are included in creditors. 26. Operating lease commitments At 30 March 2023 the Group and the Charity had commitments to make future minimum lease payments under nOnnCelIable operating le8ses as follows. Group 2023 Gmup 2022 Charity 2023 Charity 2022 Not later than 1 year Later than 1 year and not later than 5 years 14,077 1,286 14.077 1,286 15,363 15,363 Page 39
DoGuSign Envelope ID." 2F7A3D19-EBEE.4210-820E.BC6D173F2678 THE AUDIENCE AGENCY IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 MARCH 2023 27. Related party transactlons There are no donations from related parties which are outside the normal course of business and no restricted donations from related parts'es. 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 year12022.' £nill. During the year the charity recharged The Audience Agency seices £150,000 12022.. £81,258) in respect of admin and support costs. At the year end the charity was due £147,777 12022.. the charity owed £89,411). Trustees are appointed to the board primarily for the skills, experience and knowledge that they bring to the organisation. Such individuals are likely lo hold other directorships or work within the sector for organisations that may have links with The Audience Agency or ils subsidiary The Audien Agency Services Limited. 28. Post balance sheet events During August 2023, the Audien Agency group undertook a review of its aclivilies. Following this review, the intangible asset Isoftwarel included within The Audien Agency Services was transferred lo The Audience Agency. This transaction will be reflected in the financial statements to 30 March 2024. On 6 November 2023 The Audience Agency merged with Culture 24. The Audience Agency look on three full lime members of staff and cash of £158k was transferred lo the charity. This transaction will be reflected in the financial ststements lo 30 March 2024. Page 40