CULTURE COVENTRY (A Company Limited by Guarantee) FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Charlty number 1152899 Company number 08359113 •ADH3F09C• 0211W2024 COMPANIES HOUSE A07 #179 CULTURE COVENTRY A COMPANY LIMITEO BY GUARANTEE COMPANY INFORMATION FOR THE YEAR ENDED 31ST MARCH 2024 PAGE Company Infomation Trustees Report Independent Auditor's Report 10 Statement of Financial Activities 13 Balance Sheet 14 Statement of Cash Flow 15 Notes to the Financial Statements 16 CULTURE COVENTRY A COMPANY LIMITED BY GUARANTEE COMPANY INFORMATION FOR THE YEAR ENDED 31ST MARCH 2024 DIRECTORS E. Coulon {Chairman) N.R,A2 R. Blythe- resigned 20th March 2024 J. W. Elliott R. T. A. Medwell W. Parry K. Railton R. A. Shaw SENIOR LEADERSHIP TEAM P. Breed - Chief Executive Officer J. Murphy - Corporate Strategy Director M. Nugent- Cultural & Creative Director E. O'Donnell - Social Impact Director S. Terblans- Finance Director S. Wiles - Chief Operating Officer SENIOR MANAGEMENT TEAM R. Addenbrooke - Head of Exhibitions and Events J. Biggins - Head of Facilitie5 L. Bowell- Head of Human Resources M. Condillac- Head of Finance L. Ford- Head of Learning and Engagement K. Healion - Head of Operations G. John- Head of Commercial S. Sahota - Head of Programme Management T. Simpson - Head of Collections A. Surey- Head of Marketing K. Suteu- Head of Creative Digital and Media REGISTERED OFFICE The Herbert Art Gallery & Museum, Jordan Well Covenlry, CV15QP. REGISTERED COMPANY NUMBER 08359113 (England and Wales) REGISTERED CHARITY NUMBER 1152899 AUDITORS Dafferns LLP, Chartered Accountants. One East¥vood, Harry Weston Road Binley Business Park Binley Coventry CV3 2UB. BANKERS National Westminster Bank PIC 24 Broadgate Coventry West Midlands CV1 INE. CULTURE COVENTRY A COMPANY LIMITED BY GUARANTEE TRUSTEES REPORT (INCLUDING DIRECTORS. REPORT) FOR THE YEAR ENDED 31ST MARCH 2024 The Tfustees who are also the Directors of the charity under company law submit their report and the financial statements of Culture Coventry for the year ended 31 March 2024. The company was incorporated on 14 January 2013: registered with the Charity Commlssion in February 2013 and commenced trading on 1 August 2013. Tha charity is a company limited by guarantee not having a Sha￿ capital. It is govemed by rts Memorandum and Articles of Association. PRINCIPAL ACTIVITIES AND OBJECTS OF THE CHARITY The principal activities and objects of the Trust are.. To support, prornole. maintain and operate, for the benefit of the public, a road transport museum that permanently preserves road transport objects manufactured in the United Kingdom, wilh particular reference to the unique contribution made to these industries by the Crty of Coventry and the West Midlands Region. To provide a high quality arts and heritage service for the people of Coventry and visitors to the city through the management, care and display of the cily's collections and the creation of an engaging programme of public exhibitions, events and activities. . To encourage users to connect and engage with Coventry's rich heritage through interpreied objects and archives. to Inspire creativity, enjoyment and learning, and create an understanding of the City and rts communities. To provide a broad range of opportunities lo access Coventry's arts and heritage collections through permanent displays, temporary exhibitions, public events, learning and outreach programme5 and online digrtal resources. To work in active partnership with funders and with community, learning, heritage and business organisations to develop the diversity and impact of activities for the benefit of the people of Coventry and visitors to the city. . To ensu￿ that, in everything it does, the Trust secures equality of opportunty for all communities through the diversity and range of its activities. The Trust particularly seeks to engage with those groups that traditionally are under-represented as users of arts and herrtage servi￿5 on grounds of gender, age, disabilty, class. race or sexual orientation. . To ensure that the Trust always fuifils its perfomance obligations to those bodies who support it financially and to those that provide guidance. help and support through museums and other sectors in general. CHARITABLE PURPOSE The company, also a regislered charity, exists to manage the collections held within ts care on behalf of Ihe collection owners, Coventry City Council. The collections are designated as being of national importance by the Arts Council England. CULTURE COVENTRY A COMPANY LIMITED BY GUARANTEE TRUSTEES REPORT (INCLUDING DIRECTORS, REPORT) FOR THE YEAR ENDED 31ST MARCH 2024 CHARITABLE PURPOSE (continued The mission and objectives of the Trust are as follows.. Mission.. To be recognised as dYnarn￿ and innovative museufns that give our visitors 8 fresh pe￿pectiVe on the story of Coventry, and create ambassadors on a local, national and intern81ional level. Objectives.. In order to fulfil our mission, we will embrace the following objectives.. To proudty portray the story of Coventry locally, nationally and internationally, so that visitors to the City gain a full appreciation of how Coventry's innovative spirit echoes throughout history and continues to influence the world in which we live. To care for and display the City's collections in engaging ways that inspire visitors to further connect wrth Coventry's rich history and its ambitions for the future. To ensure that opportunities for learning are woven into the fabric of everything we do. . To ensure that staff. stakeholders, investors, visitors, volunteers, and the local communrty are given every opportunty to contribute to Ihe life of the Museums, and their future success. . To create opportunrties for economic growth and maximising funding opportunrties, so the Museums are financially sustainable and contribute to the regeneration of the City. To be acknowledged by our peers as a dynamic organisation, that seizes opportunities with an entrepreneurial spirrt, and actively contributes to the development of the museum sector. The local authorty acquires objects through purchase, donation or loan, the prime means being through donation, which accounts for over 90Qh of the collection Decisions on acquisitions are made to ensure balance in the collecting arrangements and to ensure that all objects acquired can be properly cared for. The vast majority of the exhibits are retained, as far as is reasonably possible, in original condition so that visrtors can understand the changing dynamics of materials used in production processes and are displayed in settings that authenticate a sense of time and pla￿. The archive also contains a vast range of original material that provides relevant support for the displays and an invaluable resource for researchers and historians. PUBLIC BENEFIT The benefit to the public is significant and increasing. The Trustees confirm that they have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the Charrty's aims and objectives and in planning future activrties. Culture Coventry Trust, through the collections rt rnanages and shares with the public, facilitates a range of learning experiences and in so doin9 shares knowledge to audiences. researchers, and sector peers. CULTURE COVENTRY A COMPANY LIMITED BY GUARANTEE TRUSTEES REPORT (INCLUDING DIRECTORS, REPORT) FOR THE YEAR ENDED 31ST MARCH 2024 ORGANISATIONAL STRUCTURE The Board of Trustees leads and maintains full and effective control of the company and accepts ultimate responsibility for directing the affairs of the company, ensuring that rt is continually meeting its stated objectives within a financially sustainable business plan. The Board is responsible for matters of key strategic importance. financial policy, acquisrtions, and partnership development. ARRANGEMENTS FOR SETTING UP PAY AND REMUNERATION OF KEY MANAGEMENT The Trustees consider the senior management team comprise the key management personnel of the Charty in charge of directing. running and operating the charity on a day-to-day basis. The pay ofthe senior staff is reviewed annually and is based on performance and average earning across the sector. TRUSTEES The Trustees during the year under review and up to the date of this report were.. E. Coulon- Chair R. Medwell J. W. Elliott K. Railton R. A. Shaw N. R. A2iZ R. Blythe- resigned 20th March 2024 W. Parry A3 the ch8ritable company is limited by guarantee, not having any share capital, none of the Trustees held any interest in the shares in the charitable company or hold any right to subscribe for shares. STRATEGIC REPORT ACTIVITIES AND ACHIEVEMENTS DURING THE YEAR The Trust continued to provide a wide range of opportunities for cultural engagement and experiences, through some vibrant programming at its museum and gallery venues, along with a growing programme of outreach activities. Overall usage of the Trust venues increased by 330kn on the previous year to 372,000 visrtors, which was impressive amidst the challenges being encountered sector wide by cost of living pressures for visitors and the increasing costs of running sizable venues such as museums and galleries. Much of this improvement was brought about by the posilive 'Dippy effecl, on visitor numbers early in the 2023124 financial year, having secured Ihe three year loan of Dippy from Ihe Natural History Museum towards the end of the previous financial year. The visitor numbers did however become steadier throughout the remainder of the year, as the teams conlinued to develop the public and commercial evenls programme, including corporate events offers.. sleepovers for both adutts and children,. children's birthday parties. a series of 'late8'; and family holiday activities. The 'Worf( on Walls, exhibition within the Herbert Art Gallery and Museum attracted 16,487 visitors, creating links to Dippy through a series of new wall-based commissions that responded to the collections. Many of the artists were inspired by the natural history collections. including a huge mural by Andy Council entitled 'Coventry in Dippy, that incorporated Coventry landscapes within an outline drawing of the farnous Diplodocus. CULTURE COVENTRY A COMPANY LIMITED BY GUARANTEE TRUSTEES REPORT (INCLUDING DIRECTORS, REPORT) FOR THE YEAR ENDED 31ST MARCH 2024 ACTIVITIES AND ACHIEVEMENTS DURING THE YEAR Icontlnued) The Herbert Art Gallery and Museum also hosted the 'Wildlif8 Photographer of the Yearf exhibition, being the first time ever that the exhibition was hosted digitally at the same time as it was being exhibited at the Natural History Museum in London. It also served as a trial of admission charging for selected exhibitions, as part of generating more income to meet the increasing demands placed upon operating budgets. This trial proved to be successful not only in generating income, but also by showing that a feasonable level of charging has no noticeable impact upon visitor numbers. Throughout the course of the 23 week exhibition, there were 29,429 visitors. Other exhibitions at the Herbert Art Gallery and Museum throughout the year included the 'Coventry Open, exhibition, which opened toward5 the end of March 2023. celebrating the qualty and diversity of art being produced in the city and the wider region,. along with Ihe fourth edition of the 'Coventry Biennial - Like a Shortcut Through the Brambles,. At Coventry Transport Museum, the Trust marked the occasion of the 401h anniversary of the Thrust land speed record with a public Question and Answer session, involving the Thwst 2 Team and hosted by Richard Noble. B8C Midlands Today covered the session and conducted interviews with Richard Noble and staff from the Transport Museum. Alongside this, work continued throughout the year on the proposed development of the Cty Centre Cultural Gateway, which will involve the relocation of some of the stored vehicle collections, along with social history and archaeology collections into a reimagined national Colleclions Cenlre, Working in partnership with the Arts Council England: the British Council., Coventry University; and Coventry City Council. The Learnin9 and Engagement Team continued to Work within a range of educational, learning and community outreach programmes, such as the creative work with CRISIS and Coventry Refugee and Migrant centre, which saw the installation of community created ceramic tiles and mosaics installed into the community garden space. Similarly, the team continued to play a key role in Ihe delivery of the Coventry Cultural Education Partnership (CCEP), representing the organisation on both the strategic steering group and the Equality Diversity and Inclusion and Programme working groups. The focus for the CCEP throughout the year shifted towards consolidating and supporting existing partnerships and programmes across the city that support the acquisrtion of creative learning and cultural capital amongst young people. From a digital perspective, a new highlights tour on the Smartify platform was launched, which enables visitors to lislen to audio explaining the 15 most popular objects in the galleries. Visitors can access the content through QR codes, or by downloading a free app which is used by museums across the UK and intemalionally. This shfft into the use of technologies will be expanded upon in the coming years, following the commissioning of digital consultants, who will be responsible for designing a number of digital solutions across the business that create efficiencies, whilst also enhancing the visitor experience. Strategically, the Trust also continued to be at the heart of and supporting the wider cultural ambitions of the city, delivering alongside the Cty Council's- 'One Coventry Plan., whilst also continuing to play a role in the 'cUltu￿ Woths, proposed model for delivery of culture in the cty - which looks to build on the legacy of the UK City of Culture 2021. CULTURE COVENTRY A COMPANY LIMITED BY GUARANTEE TRUSTEES REPORT (INCLUDING DIRECTORS, REPORT) FOR THE YEAR ENDED 31ST MARCH 2024 ACTIVITIES AND ACHIEVEMENTS DURING THE YEAR (continued) Whilst the year has continued lo be extremely successful from the perspective of providing a wide ranging cullural programme and experiences for visitors, the Truslees remain mindful of the economic challenges that are being presented by future reductions in local authority fijnding from Coventry City Council, along with substantial challenges brought about by increasing employment costs. Accordingly, the Trustees have received a range of significant business proposals from the Senior Leadership and Senior Management Teams, which will shift some of the business operating principles of the Trust, whilst algo looking to introduce new income generating initiatives. Such Changes will be absolutely critical into the forthcoming Financial Year, where the scale of the economic and financial challenges facing the Trust are unprecedented. As a￿ays, the Trustees would like to extend their thanks and express sincere appreciation to the teams of staff, volunteers and partner organisations who make the Trust's contribution to the cultural life of the city possible, especially when set within the context of the challenges currently being faced. FINANCIAL REVIEW Income for the year was £4,061,000 compared to £3,741,000 in the previous year, whilst thé total expenditure was £4,966,000 compared to £5,178,000 in the previous year. This resulted in a net deficit of £905,000, before accounting for pension fund actuarial adjustrnents, compared to a deficit of £1,437,000 in the previous year. Charitable expenditure includes depreciation of £1,089,000. The actuarial loss on the pension fund valuation was £508,000, compared to a gain of £4,375.000 in 2023. The net movement of funds on the SOFA was a deficit of £1,413,000. As at 31 March 2024, the Charity had total funds of £3,339,000 compared to £4,752,000 in the year ending 31 March 2023. Unrestricted charitable funds were in surplus at 31st March 2024 by £1,347,000 compared to a surplus of £1,768,000 in the previous year. Restricted funds at 31 March 2024 were £1,992,000, repr8s•nting a decrease of £992,000 on the previous year. The company's assets continued to be used for the company's objectives of providing facilrties for arts and heritage, and the company continued to be grateful for the generous support that rt receives from its major sponsors and donors, so that the Truslees consider that the company has sufficient funds to meet rts objectives. The accounting policies used lo produce the Trust's financial statements are shown on pages 16 to 19. GOING CONCERN AND FUTURE PLANS The charty has total reseNes of £3.339,000 at 31st March 2024 of which £1,347,000 is unrestricted. The charity had net current assets of £1,139,000 as al 31 March 2024. compared to £1,119,000 in 2023. The charlty has received confirmation from Coventry Crty Council of its continued commitment to the Funding and Management Agreement for a period of at least 12 months from the approval of these financial statements. However, the Crty Council has also indicated that it is looking to reduce its level of funding by 15%, so that the Trustees have received a range of significant business proposals from the Senior Leadership and Senior Management Teams, which will shift some of the business operating principles of the Trust. whilst also look to introduce new income generating initiatives. CULTURE COVENTRY A COMPANY LIMITED BY GUARANTEE TRUSTEES REPORT IINCLUDING DIRECTORS, REPORT) FOR THE YEAR ENDED 31ST MARCH 2024 GOING CONCERN AND FUTURE PLANS {contlnued) In light of these proposals along with the current levels of reSe￿e funding, the Trustees consider that the company has sufficient cash resources available to continue to meet its liabilities as they fall due for the forthcoming year. Based on the factors set out above, the Trustees therefore continue to adopt the going concern basis of accounting and are satisfied that no material uncertainty exists in relation to going concern. SUPPORT FROM OTHER ENTITIES Coventry Cty Council is aligned with the overarching objectives of the Trust. Coventry City Council grant is detailed in Note 2 of the financial statements. VOLUNTEERS The Trust has continued to utilise and benefrt from the services of volunteers throughout the year and is very grateful for the keen and active support provided by them. INVESTMENT POLICY Currently investments are held in interest bearing deposit accounts for ease of access to allow use for charitable Purposes. This is the most effective way of ensuring an investment return whilst allowing maximum liquidity. TRUSTEE INDUCTION AND TRAINING New Trustees are nominated by members of the Board of Trustees and appointed where they have the necessary skills lo contribute to the charity's management and development. When new Trustees are appointed, they are given an introduction to the work of the Trust and provided with Ihe information they need lo futfil their roles. which includes information about the role of Trustees and charity law. RISK MANAGEMENT The Board has a Business Risk Register incorporated within its Business Planning Prot￿OIS and the Trustees seek to consider, review and updatethis accordingly at their Board meetings along with the impact and likelihood of realisalion. The Risk Register also identifies any mrtigating measures being taken to avert such risks and the Board seek to track the implementation and miligaling impacl of such measures. We confirm that the Major risks to which the charty is exposed, as identified by the Trustees have been reviewed and systems have been established to mitigate those risks. CULTURE COVENTRY A COMPANY LIMITED BY GUARANTEE TRUSTEES REPORT IINCLUDING DIRECTORS, REPORT) FOR THE YEAR ENDED 31ST MARCH 2024 RESERVES POLICY The Trustees, through the development of the Charily's business planning, have considered the level of reserves appropriate to the risks, opportunities and future contingencies faced by the charity. Based on this review, the Trustees believe the charity should look to grow free reserves to £1,500,000. As at 31 March 2024, the Charity's unrestricted reserves, excluding the accounting entries required under Financial Reporting Standard 102 relating to the Charty's share of the pension scheme liabilrties, were £1.347,000. compared to £1,210,000 in 2023. THIRD PARTY INDEMNITY PROVISION FOR TRUSTEES Qualifying third party indemnity provision is in place for the banefil of all Trustees of the charity. FUNDRAISING STANDARDS The Charity does not contract with a third party to undertake fundraising on its behalf. Hence, we have received no fundraising complaints during the year. AUDITORS Daffern8 LLP has indicated its willingness to continue in office. TRUSTEES RESPONSIBILITIES IN THE PREPARATION OF THE FINANCIAL STATEMENTS The Trustees (who are also Directors of Culture Coventry for the purposes of company law) are responsible for preparing the Trustees, Report and the Financial Statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company law requires the Trustees to prepare Financial Statements for each financial year which give true and fair view of the state of affairs of the charitable company of the incoming resources and application of resources. including the income and expenditure, of the charitable company for that peiiod. In preparing these Financial Statements, the Truslees are. required lo: select suitable accounting policies and then apply them consistently., obsenie the methods and principles in the Charities SORP; make judgements and estimates that are reasonable and prudent., state whether applicable UK Accounting Standards have been ft)Ilowed, subject to any material departures disclosed and explained in the financial statements: prepare the Financial Statements on the going con￿rn basis unless it is inappropriate to presume that the charitable company will continue in business. The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the finaneial position of the charitable company and enable them to ensure that the FinanGial Statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the chariiable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularrties. CULTURE COVENTRY A COMPANY LIMITED BY GUARANTEE TRUSTEES REPORT (INCLUOING DIRECTORS, REPORT) FOR THE YEAR ENDED 31ST MARCH 2024 STATEMENT AS TO OISCLOSURE OF INFORMATION TO AUDITORS The Trustees who were in office on the date of approval of Ihese Financial Statements have confimied, as far as they are aware, that Ihere is no relevant audit informalion of which the auditors are unaware. Each of the Trustees have confirmed that they have taken all the steps that they ought to have taken as Trustees in order to make themselves aware of any relevant audrt infomialion and to establish that it has been communicated to the auditors. On behalf of the board E. Coulon Trustee Date.. 29 November 2024 INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CULTURE COVENTRY A COMPANY LIMITED BY GUARANTEE We have audited the Financial Statements of Culture Coventry (the 'charitable company,) for the year ended 31 March 2024, which comprise the Statement of Financial Activities, the Balance Sheet. the Statement of Cashflows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and Unrted 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 Practice). In our opinion the financial statements.. give a true and fair view of the state of the charitable company's affairs as at 31 March 2024, and of ils incoming resources and application of resources, including its income and expenditure, for the year then ended., have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice: and have been prepared in accordance with the requirements of the Companies Act 20(￿. Basis for opinion We conducted our audrt in accordance with International Standards on Auditing (UK) (ISAS (UK>> and applicable law. Our responsibilities under those standards are further described in the AudFtor's responsibilities for the audit of the Financial Statements section of our report. We are independent of the charilabla company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audrt evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclusions relallng to going concern In audiling the financial statements, 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 wotk we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's abilrty to conlinue as a going concern for a period of at least twelve months from when the Financial Statements are authorised for issue. Our responsibilities and the responsibilities of the Trustees wrth respect to going concem are described in the relevant sections of this report. Other information The other information comprises the information included in the Trustees, annual report, other than the Financial Statements and our auditols report thereon. The Trustees are responsible for the other infomiation contained within the annual report. Our opinion on the Financial Statements does not cover the other infomialion and, except lo the extent otheThvise explicitly stated in our report, we do not express any fomi of assurance conclusion thereon. Our responsibility is to read the other infomiation and, in doing so, consider whether the other information is materially inconsistent with the Financial Statements, or our knowledge obtained in the course of the audit or othenvise appears to be materially misstated. If we identfy such material inconsistencies or apparent material rnisstatements, we are required to determine whether this gives rise to a material misslatement in the Financial Statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other infomiation, we are required to report that fact. We have nothing to report in this regard. io INDEPENDENT AUDITOR'S REPORTTO THE MEMBERS OF CULTURE COVENTRY A COMPANY LIMITED BY GUARANTEE Oplnlons 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 (incorporating the Directors, report) for the financlal year for which the Financial Statements are prepared is consistent wrth the financi81 statements; and the Direclors, report has been prepared in accordance with applicable legal requirements. Matters on which we are required to report by exception In the light of our knowledge and understanding of the charitable company and its environmenl obtained in the course of the audit, we have not identified material misstatemenls in Ihe Trustees, report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us lo report to you if, in our opinion.. adequate accounting records have not been kept by the charrtable company, or returns adequate for our audit have not been received from branches not visited by us, or the charitable company Financial Statements are not in agreement with the accounting records and returns- or certain disclosures of Directors, remuneration specified bylaw are not m8de,' or we have not received all the informatron and explanations we requi￿ for our audit., or the Trustees were not entrtled to prepare the Financial Statements in accordance with the small companies, regime and take advantage of the srnall companies, exemptions in preparing the Oirectors, report and from the requirement to prepare a strategic report, Re8ponslbllltles of Trustees As explained more fully in the Trustees, responsibilities statement set out on page 8, the Trustees (who are also the Oirectors of the charitable company for Ihe purposes of company law) are responsible for the preparation of the Financial Statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the Financial Statements, the Trustees are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concem and using the going concern basis of accounting unless the Trustees either intend lo liquidate the charitable company or to cease operations, or have no realistic alternative but to do so. Audltor's responslbllities for the audlt of the flnancial Statements We have been appointed auditor under the Companies Act 2006 and section 151 of the Charities Act 2011 and report in accordance with those Acts. Our objectives are to obtain reasonable assurance about whether the Financial Statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditorfs report Ihat includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAS {UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Financial Statements. li INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CULTURE COVENTRY A COMPANY LIMITED BY GUARANTEE Audltor's responslbilities for the audlt of the financial statements (continued) Irregularities, including fraud. are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilrties, outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagemenl and the extent to which these are capable of detecting irregularrties, including fraud is detailed below.. Enquiry of management, and those charged with governance around actual and potential lrtigation and claims., Enquiry of entty staff in compliance lunctions to identify any instances of non-compliance with laws and regulalions., Reviewing minutes of meetings of those charged with govemance., Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations. Performing audit work overthe risk of management override of controls. including testing ofjournal entries and other adjustments for appropriateness, evaluating the busine55 rationale of signrficant transactions outside the nomial course of business and reviewing accounting estimates for bias 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 Stalements or non (4,898) Total expendrture {3,785) 11,181) (4,966) (3,928) (1,250) {5,178) Net income l (expenditure) Transfers between Funds 109 (22) (1,014) 22 (905) (354) (39) (1,083) (1,437) 39 87 (992) (905> (3931 (1,044) (1,437> Other recognlsed galns and losses: Actuarial gain l (loss) on defined benefft pension scheme 14 (508) (508) 4,375 4,375 Net movement In funds Reconciliation of funds: Funds at 1 April 2023 (421) (992> (1,413) (1.044) 2,938 1,768 2,984 4,752 (2,214) 4,028 1,814 Funds at 31 March 2024 1,347 1,992 3,339 1,768 2,984 4,752 The Statement of Financial Activities includes all gains and losses in the finsncial period. All income and expenditure derwe from continuing operations. 13 ol￿s91(￿ CULTURE COVENTRY A COMPANY LIMITED BY GUARANTEE BALANCE SHEET FOR THE YEAR ENDED 31ST MARCH 2024 2024 2023 Note £'ooo £'ooo £'ooo £'ooo FIXED ASSETS: Tangible assets Investments 2.200 3,075 2,200 3,075 CURRENT ASSETS: Stocks Debtors Cash at bank and in hand 10 82 289 1.105 112 152 1,244 1,476 1,508 CREDITORS: Amounts falling dua within one year 12 (337) (389) NET CURRENT ASSETS 1,139 1.119 Net assets excluding pension liability 3,339 4.194 Defined benefit pension scheme 14 558 NET ASSETS INCLUDING PENSION SCHEME LIABILITY 3,339 4,752 RESERVES: Restricted funds 13 1,992 2,984 Unrestricted funds -Pension funds 1,347 1,210 558 14 1,347 1,768 Total Funds 3,339 4.752 The Financial Statements on pages 13 to 31 were approved by the Board of Directors and authorised for issue on 29 November 2024 and are s￿￿ed on its behaw by.. E. Coulon 14 CULTURE COVENTRY A COMPANY LIMITED BY GUARANTEE STATEMENT OF CASHFLOWS FOR THE YEAR ENDED 31ST MARCH 2024 2024 £'ooo 2023 £'ooo Note Cashflows from operating activities: Net cash provided by I (used in) operating activities 21 75 164 Cashflows from investing activities: Purchase of tangible fixed assets (214) (115) Net cash used in investing actlvlties (2141 (115) Change in cash and cash equivalents in the year (1391 49 Cash and cash equlvalents at the beglnnlng of the year 1,244 1,195 Cash and cash equivalents * the end of the year 1,105 1,244 Analysis of cash and cash equlvalents 2024 £'ooo 2023 £'ooo Cash at bank and in hand 1,105 1,244 Total cash and cash equivalents 1,105 1,244 Analysis of changes In net debt 1 April 2023 Cashflows 31 March 2024 £'ooo £'ooo Cash and Cash Equivalents 1,244 1139) 1,105 15 CULTURE COVENTRY A COMPANY LIMITED BY GUARANTEE ACCOUNTING POLICIES FOR THE YEAR ENDEO 31ST MARCH 2024 LEGAL STATUS OF THE CHARITY Culture Coventry (Charity) is an incorporated charty. limited by guarantee and is registered at the Charty Commission in England and Wales. In the event of the Charty being wound up, the liabilrty in respect of the guarantee is limiled to £10 per member of the Charty. The Charty is governed by its Memorandum and Articles of Association. The address of the Charty's registered office and principal place of business is The Herbert Art Gallery & Museum. Jordan Well, Coventry, CV15QP. BASIS OF ACCOUNTING The charity constitutes a public benefrt entty as defined by FRS 102. The financial statements have been prepared in accordance wrth Acxounting and Reporting by Charilies.. Statement of Recommended Practice applicable to charrties preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland issued in October 2019, the Financial Reporting Standard applicable in the Unrted Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011, the Companies Act 2006 and UK General￿ Accepted Accounting Practice. The financial statements are prepared on a going concern basis under the historical cosl convention, modified to include certain rtems at fair value. The financial statements are presented in sterling which is the functional currency of the charity and rounded to the nearest £1,000. INCOME All income is included in the Statement of Financial Activities ('SOFA'> when the charitable company ts entitled lo the income, there is probability of receipt, and the amount can be quantified with reasonable accuracy. The following specific policies are applied to particular categories of income: Donations and legacies are included in full in the Slatement of Financial Activities when receivable. Investment income is included when receivable. Income from charrtable trading activities is accounted for when earned. Income from grants, where related to perfomiance and specific deliverables. are accounted for as the charitable company gains rights lo consideration by its perfonnance. Income from grants, where not related to performance, are accounted for upon notif￿atIon. 16 CULTURE COVENTRY A COMPANY LIMITED BY GUARANTEE ACCOUNTING POLICIES FOR THE YEAR ENDED 31ST MARCH 2024 EXPENDITURE Expenditure is recognised on an accruals basis as a liabilty is incurred or when the charitable company is deemed to have a legal or constructive obligation whtch will result in a probable transfer of economic benefrts. Expenditure includes any VAT wh￿h cannot be fully recovered, and is reported as part of the expenditure lo which it relates.. Raising funds comprise the costs associated with attracting donations and the costs of trading for fundraising purposes. Charrtable expendrture comprise5 those costs incurred by the Charity in the delivery of its activities and services for its beneficiar¢es. It includes both costs that can be allocated directty to such activities and those costs of an indirect nature necessary to support them All costs are allocated between the expenditure categories of the SOFA on a basis designed to reflect the use of the resource. Costs relaling to a particular activity are allocated directly. others are apportioned on an appropriate basis e.g. floor areas, per capita or estimated usage. RETIREMENT BENEFITS For defined benefit retirement plans, the cost of providing benefrts is determined using the projected unit credit method, wrth actuarial valuations being carried out at each balance sheet date. Actuarial gains and losses arising are recognised immediatety in the Statement of Financial Activities. Past seNice costs are recognised as an expense on a straighl-line basis overlhe average period until the benefits become vested. To the extent that the benefits have already vested, the cost is recognised immediately in the Statement of Financial Activities. The amount recognised in the Balance Sheel represents the present value of thè defined benefrt obligalion, adjusted for unrecognised past seDiice costs, and reduced by the fair value of plan assets. Any asset resulting from this calculation is limited to the lower of the asset, and any unrecognised past service cost plus the present value of available refunds or reductions in future contributions to the plan. The rate used to di5counl the benefit obligations is based on matket yields for high quality corporate bonds with temis and currencies consistent wrth those of the benefrt obligations. Gains and losses on curtailments I settlèménts are recognised when the curtailment I settlement ttcurs. 17 CULTURE COVENTRY A COMPANY LIMITED BY GUARANTEE ACCOUNTING POLICIES FOR THE YEAR ENDED 31ST MARCH 2024 TAXATION The Trust is a Registered Charity and undertakes activrties which, under present legislation, are not subject to Corporation Tax. The Trust's subsidiary is not a Regislered Charity and undertakes trading activities within the meaning of the Taxes Acts and is liable to Corporation Tax. However, the subsidiary gift aids all its taxable profts to the Trust. Consequently, no provision is made for the payment of Corporation Tax either current or deferred. FUND ACCOUNTING Unrestricted funds are available for use at the discretion of the Trustees in furtherance of the general objectives of the charitable company. Designated funds are unrestricted funds earmarked by ihe Trustees for particular purposes. Restricted funds are subjected to restrictions on their expenditure imposed by the donor or through the tems of an appeal. TANGIBLE FIXED ASSETS Fixed assets are inrtially measured at cost and subsequentty measured al cost, net of depreciation and any impairment losses. Depreciation is provided on all tangible fixed assets at rates calculated to wrrte each asset dNn to rts estimated residual value evenly over rts expected useful lrfe, as follows.. Museum refurbishment cost FI￿UreS and f￿ing8 Computer equipment over 10 years between 3 - 6 years over 3 years INVESTMENTS Investments are staled at cost and are subsequently measured at cost lass any accumulated impairment losses. STOCKS Stocks are valued at the lower of cost and estimated selling price less costs to complete and sell, which is equivalent to the net realisable value. Provision is made for obsolete and slowwmoving rtems. DEBTORS Trade, group, and other deblors are recognised at the settlement amount due after any trade discounts, offered. Prepayments are valued at the amount prepaid net of any trade discounts due. 18 CULTURE COVENTRY A COMPANY LIMITED 8Y GUARANTEE ACCOUNTING POLICIES FOR THE YEAR ENDED 31ST MARCH 2024 CASH ATBANK AND IN HAND Cash at bank and cash in hand includes cash and monies on short term deposit. at the bank and other short terni liquid investments wrth original maturities of three months or less. CREDITORS AND PROVISIONS Credttors and provisions are recognised where the charitable company has a present obligation resufting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or eslimated reliably, Creditors and provisions are nomialty recognised at their settlement amount allowing for any trade discounts due. LEASED ASSETS AND OBLIGATIONS An asset and correspt)nding liabilty are recognised for leasing agreements that transfer to the charrtable company substantialty all of the risks and rewards incidental to ownership ("finance leases"). The amount capitalised is the fair value of the leased asset or, If lower, the present value of the minimum lease payments payable during the lease term, both determined at inception of the lease. Lease payments are t￿ated as consisting of capital and interest elements. The interest is charged to the SOFA to produce a constant periodic rate of interest on the remaining balance of the liability. All other leases are operating leases, and the annual ￿nI815 are charged to the SOFA on a straight-line basis over the lease term. FINANCIAL INSTRUMENTS The charrtable company only has financial assets and liabilrties of a kind that qualify as basic financial instruments and are not considered lo be of a complex nature. Such financial instruments. except for investments classrfied at fair value through the SOFA, are initially recognised at Iransaction value and subsequently measured at their settlement value. Financial assets held at amortised cost includes all debtors and cash. excluding prepayments and tax. Financial liabilities held ai amortised cost includes all Credrtors, excluding tax and social Securty creditors. 19 CULTURE COVENTRY A COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH 2024 2. INCOME FROM CHARITABLE ACTIVITIES Unrestricted Restricted Total Unrestricted Restricted Totsl Fund Fund Funds Fund Fund Funds 2024 2023 £'ooo £'ooo £'ooo £'ooo £'ooo £'ooo Coventry Cty Council Funding Arts Council England Funding Admissions Income Other Income 2,084 407 458 342 2,084 445 458 471 1,976 407 422 291 1,976 407 422 458 129 167 3,291 167 3,458 3,096 167 3,263 3. INCOME FROM TRADING ACTIVITIES Unrestrletad Restrlcted Totsl Unréstrfct•d Restricted Total Fund Fund Funds Fund Fund Funds 2024 2023 £'ooo £'ooo £'ooo £'ooo £'ooo £'ooo Conferencing and Room Hire Café Shop Sales Other Income 65 230 224 65 230 224 67 191 164 67 191 184 573 573 466 4. EXPENDITURE Total Staff costs Depreclatlon Other costs 2024 £'ooo £'ooo £'ooo £'ooo Total 2023 £'ooo Costs of raising funds Charitable activrties.. Direct costs Allocaled support costs 107 324 431 280 1,944 2,185 2,713 1,089 1,502 2.591 2.051 1,089 1,826 4.966 5,178 20 CULTURE COVENTRY A COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH 2024 4. EXPENDITURE (continued) 2024 £'ooo 2023 £'ooo Allocated support costs.. Heat and light Advertising and promotior Travel and subsistence Printing and stationery Computer costs Telephone Insurance Vehicle Storage Repairs and maintenance Depreciation Other expendrture Govemance costs 362 313 361 343 10 55 12 52 137 176 1,089 374 19 130 157 1,072 495 40 2,591 2.713 5. NET EXPENDITURE FOR THE YEAR 2024 £'ooo 2023 £'ooo Net expenditure for the year is stated after charging- Depreciation and amounts written off tangible fixed assets.. Charge for period.. Owned assets Operating leas8 rentals.. Land and buildings Auditors, remuneration: Statutory audit Accountancy services 1,089 1,072 125 125 21 20 6. EMPLOYEES 2024 No. 2023 No. The average monthly number of persons employed during the year was: Total staff (actual I full time equivalent) 79180 78167 2024 £'ooo 2023 £'ooo Staff costs for the above persons.. Wages and salaries Srxial securty costs Pension costs 1,774 125 210 1,666 116 508 2,109 2,290 21 CULTURE COVENTRY A COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH 2024 6. EMPLOYEES Icontsnued) In 2024 no employees receiv&J emoluments over £60,000. (2023.. nil). The employer pension contribution for these staff members was paid at the rate disclosed in note 16. Key management personnel are those having authority and responsibilty, delegated to them by the Trustees, for planning, directing and controlling the activities of the Charty. Remuneration for key management personnel, including employers, national insurance contributions and contributions to the defined benefit pension scheme, amounted to £267,602 {2023. £213,261). No Trustees received any remuneration during the year ended 31 March 2024 (2023.. £nil). Expenses of £nil were reimbursed to trustees during the year (2023: one trustee, £82). No Trustee or other person related lo the Charity had any personal interest in any contract or transaction entered into by the Charity during the year or the previous period. 7. TAXATION As the company has attained charitable status, the Trustees consider that there is no income subject to corporation tax lor the year ended 31 March 2024. 8. TANGIBLE FIXED ASSETS Museum Fixtures, f￿ingS refurbishmenl & computer costs equipment Total £'ooo £'ooo £'ooo Cost.. 1 April 2023 Addrtions Disposals 9,791 65 767 149 10,558 214 31 March 2024 9,856 916 10,772 Depreciation". 1 April 2023 Charge for year Disposals 6.926 985 557 104 7,483 1,089 31 March 2024 7,911 661 8,572 Net Book Value.. 31 March 2024 1.945 255 2,200 31 March 2023 2.865 210 3,075 22 CULTURE COVENTRY A COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH 2024 9. FIXED ASSET INVESTMENTS 2024 £'ooo 2023 £'ooo Investment in 5ub8idiary undertaking The Charity holds 1000/0 of the ordinary equty share capital of Cullure Coventry Ventures Limited. a company incorporated in England, registration number 05263892. The Charty's registered office is The Herbert Art Gallery. & Museum, Jordan Well, Coventry. CV15QP. Cutture Coventry Ventures Limited has been dormant from 1 April 2021. 10. STOCKS 2024 £'ooo 2023 £'ooo Shop stock 82 112 11. DEBTORS 2024 £'ooo 2023 £'ooo Trade debtors Prepayments and accrued income Other debtors 150 124 15 57 79 16 289 152 12. CREDITORS 2024 £'ooo 2023 £'ooo Trade creditors Other taxation and social securty Accwals and deferred income Other Credrtors 117 112 230 69 77 13 12 337 389 23 CULTURE COVENTRY A COMPANY LIMITED 8Y GUARANTEE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH 2024 12. CREDITORS (continued Anatysis of movements in deferred income.. 2024 £'ooo 2023 £'ooo 1 April 2023 Income released in year Income deferred in year 75 (75) 20 31 March 2024 20 Deferred income represents conference income received in advance and Council Grant income received in advance. 13. RESTRICTED FUNDS Balance Balance 31 March Income Expenditure Trdnsfers 31 March 2023 2024 £'ooo £'ooo £'ooo £'ooo £'ooo Donations and grants Heritage Lottery Fundingl European Regional Development Fund Refurbishment Gallery Refurbishment 70 129 (202) 22 19 1,675 1,239 (827) (152) 38 1,125 2,984 167 (1,181) 22 1,992 Donations and grants - Various cash donations and grants to support the activities of the Trust. Heritage Lottery Fundingl European Regional Development Fund - Refurbishment of Museum and Old Grammar School - Funds received to finance the refurbishment of the Coventry Transport Museum srte. Under the terms of the funding agreeffEnt, the Trustees of the National Heritage Memorial Fund have taken security over the leasehold property under development. Gallery Refurbishment.. Improvements made to the existing three galleries and addition of a 4th gallery to the existing space within the Herbert Art Gallery and Museum, to enable Culture Coventry to meet the specrfication to host exhibrtions such as the Turner Prize. 24 CULTURE COVENTRY A COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH 2024 14. PENSION FUND 2024 £'ooo 2023 £'ooo 1 April 2023 (Charge) I credit in the year Actuarial gain on defined benefit pension scheme Reversal of items relating to rets'rement benefits included in the Statemeni of Flnancial Activities 558 (134) {508) (3,427) (485) 4.375 95 31 March 2024 558 15. ANALYSIS OF NET ASSETS I (LIABILITIES) BETWEEN FUNDS Unrestrlcted Restrlcted Total Unrestrlcted Resirlcted Total Fund Fund Funds Fund Fund Funds 2024 2023 £'ooo £'ooo £'ooo £'ooo £'ooo £'ooo Tangible fixed assets Current assets Current liabilities Long term liabilities Defined benefit pension scheme liability 255 1.429 (337) 1,945 47 2,200 1.476 (337) 210 1,389 (389) 2,865 119 3,075 1.508 (389) 558 558 Net assets l (liabilities) 1,347 1,992 3.339 1.768 2,984 4,752 25 CULTURE COVENTRY A COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH 2024 16. PENSIONS AND POST-RETIREMENT BENEFITS a. Deflned Bonefft Ponslon Plan The Charity participates in a pension scherne operated by West Midlands Metropolitan Authorities Pension Fund. The assets of the scheme are held separately from those of the Charity. Penslon costs are assessed in accordance with the advice of an independent qualified actuary using the projected unit method. The most recent valuation was at 31 March 2024. The total contributions made for the year ended 31 March 2024 was £128,000 (2023.. £174.000). of which employerfs contributions totalled £84,000 (2023.. £95.000). Employee's contributions for the year totalled £44,000 (2023: £79.000). In addltlon to the above, the following information is required to be disdosed in accordance with the adoption of FRS 102 in relation to the part of Ihe West Midlands Metropolitan Authorities Pension Fund attributsble to the Charity. The last full funding valuation of this scheme was carried out at 31 March 2022. A qualified actuary updated the results of that valuation at 31 March 2024 to obtaln the figures stated below. Twenty-one staff transferred to the cornpany from Coventy City Council on 1 April 2003. The Projected Unrt Method has been used. The major financial assumptions used by the actuary were: 2024 2023 Rate of increase in salaries Rate of increase or pensions in payment Discount rate 3.75 2.75 4.85 3.95 2.95 4.75 The Mortality assumptions used in the valuation of the pension liabilities were.. 2024 2023 Post ￿tIrement mortality assumptions: Retiring today Males Females 20.6 22.8 20.4 23.2 Retiring iT120 years Males Females 21.5 24.9 21.7 25.1 26 CULTURE COVENTRY A COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH 2024 16. PENSIONS AND POST41ETIREMENT BENEFITS (continued) The fair value of assets in the scheme. the present value of the liabilrties in the scherrÈ and the expected rate of return at the balance, sheet date were: Fair value.. 2024 £'ooo 2023 £'ooo Equities Bonds Propety Cash 11,567 11,986 5,309 3,878 1,138 1,234 948 529 Total fair value of assets Present value of scheme liabilrties 18,962 17,627 (13.749) (13,787) Net pension asset l (liability) before unrecognised surplus Unrecognised surplus due to assel ceiling 5,213 3.840 (5,213) (3,282) Nel pension asset l {liabilty) 588 2024 £'ooo 2023 £'ooo Changes in present value of th• d•fin•d benofft obllgatlons: Opening defined benefit obligation Currenl Se￿￿e cost Interest cost Contributions by scheme participants Change in financial assumptions Change in demographic assumptions Experience loss l (gain) on defined benefit obligation Benefits paid 13,787 20,877 159 389 648 79 (781) (7,312) (87) {351) 468 (60) {489) (399) Closing defined benefft obligation 13,749 13,787 27 CULTURE COVENTRY A COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH 2024 16. PENSIONS AND POST-RETIREMENT BENEFITS (continued) 2024 £'ooo 2023 £'ooo Changes in the fair value of plan assets: Opening plan assets Interest on assets Return on assets excluding interest Experience loss l (gain> on defined benefrt obligation Conlribulions by employer Contnbutions by scheme participants Benefits paid 17,627 17,450 829 468 (562) 496 95 79 (489) (399) Closing plan assets 18,962 17,627 2024 £'ooo 2023 £'ooo Analysis of actuarial loss on defined benefrt pension scheme: Return on fund assels excluding interest Other actuarial gains l (losses) on assel Change in financial assumptions Chan9e in demographic assumptions Experience loss l (gain) on defined benefit obligation Effects of changes in the amount of surplus not recoverable - gain l (loss) 867 {562) 496 781 7,312 87 351 (468) 60 (1,775) {3,282) Actuarial loss {508) 4,375 2024 £'ooo 2023 £'ooo Analysls of amounts charged to Statement of Financial Activities: Current service cost & posl seryice cost Net interest on the defined liabilty Interest on the effect of the asset ceiling 2023 159 {181) 156 389 96 134 485 28 CULTURE COVENTRY A COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH 2024 16. PENSIONS AND POST-RETIREMENT BENEFITS (continued) b. Defined Contributlon Pension Plan The charty operates a defined contribution pension plan for rts employees, administered by NEST. The amount recognised as an expense in the period was £51,021 (2023.. £44.091). 17. CAPITAL COMMITMENTS The Charity had capital commitments at 31 March 2024 of £nil (2023.. £nil). 18. COMMITMENTS UNDER OPERATING LEASES 2024 £'ooo 2023 £'ooo At 31 March 2023 the Charity had total future minimum lease payments under non