HAMPSHIRE CULTURAL TRUST IA COMPANY LIMITED BY GUARANTEEI TRUSTEES, ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 Charlty number: 1158583 Company number: 08986225 Cofitents Trustees, annual report (incorporating the Director5, report) Independent auditors, report to the Members and Trustees 19 Consolidated Statement of financlal activitie5 23 Consolidated 8alance sheet 24 Trust Balance sheet 25 Consolidated C2shflow statement 26 Notes to financlal statements 27 Hampshlre Cultural Trust Company number: 08986225 Trustees, Report Reference and Admlnistratlve Detalls Company registered number 08986225 Charity re£¢stered number 1158583 Registered office and prsncipal addre55 Chllcomb House, Chilcomb Lane, Winchester S023 8RD Contact number 01962 678140 Webslte tu e.or .u* Dlrectors and Trustees Alan Lovell Ichairrnanl Emma 8ack Rachel Bebb Iresi8ned 29 September 20231 Anna B13ckman Robert 8oyle Iresigned 30 September 20221 Mark Brett lappointed 23 May 20231 Peter Cardy OBE (resigned 11 May 20231 Karen Chillman (appointed 23 May 20231 james Croxford lèppointed 14 June 20231 Ylnnon Ezra MBE (resigned 29 September 20231 Kelth Mans Hugh McNau8htan (appointed l July 20221 Claire Mlller (appointed 24 February 20231 Michael Southsate (resigned 29 September 20231 Lucllle Thornpson Loulse West james Wlnkworth Company Secretary Vlctorla Donkln Chief Executive Paul Sapwoll Auditor5 PKF Francls Clark Iltthcock House illtop Park Devlzes Road Sallsbury SP3 4UF Principal Bankers Natwest Bank 105 Hlgh Street, Wlnchester S023 9AW Sollcltors Pari5 Smith LLP 11 London Road, Southampton 5015 2AE Hamp5hlre Cultural Trust Company number.. 08986225 Tnjstees, Report Report of the Trustees (incorporating the Directors, report) for the year endlng 31 March 2023 The trustees are pleased to present their annual report together with the con501idated flnancial statements of Hampshlre Cultural Trust I'the trust") and it5 one subsidlary, Hampshire Cultural Trust Tradln8 Limlted 1.the tradln8 companv"), for the year ending 31 March 2023. The trustees Iwho are also directors of Hampshire Cultural Trust for the purp05es of company lawl are responsible for preparing the Trustees, Annval Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards Iunited Kingdom Generally Accepted Accounting Practicel. Company law requires the trustees to prepare financial statements for each financial year. Under company law the trustee5 must not approve the financial statements unless they are satisfied that they @ive a true and falr vlew of the state of affairs of the charitable company and of the incoming resources and appllc3tion of resources, Sncluding the income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees are required to.. select suitable accountin8 policies and then apply them ctsnsistently,. observe the methods and principles in the Charities SORP 2019 IFRS 1021,. make judgements and estimates that are reasonable and prudent; prepare the financial statement5 on the going concern basis unless It15 inappropriate to presume that the charitable company will continue in operation, The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraLJd and other irregu5arltSes. In so far as the trustee5 are aware.. there Is no relevant audSt information of whlch the charitable compantys 3uditor is unaware,. and the trustees have t?ken all steps that they ought to have taken to make themselve5 aware of any relevant audit information and to establish that the auditor is aware of that information. Chalrman'5 Report 2022-2Y In April 2022, we finally emerged from the COVIO-19 pandemic. As public confidence grew and people returned to normal life and public spaces, our visitor5 and audiences a150 returned. The year was domlnaled by our ambitious capital projects programme. Having successfully taken on responsibillty for The Arc in Winchester in February 2022, 2022-23 Saw us forging ahead with the transformation of Gosport's Old GrammaT School into Gosport Museum and Art Gallery, a much.needed creatlve community hub on the town's hiBh street, We also developed and opened our Anglo-saxon attraction. 878 AD. The result of a unlque partnership between heritage, the gaming sector and tech innovHtion, 878 AD interprets history in a new and exciting way for those who may not be interested in visiting a tradltional museum, opening up history for everyone to discover. Our visitors were treated to an inspirational programme of exhibitions. These saw us drawing on our own collections for SHOES,. Inside out, working with new and major natlonal partners, InclLJding the National Gallery, commissioning a video artwork installation inspired by our unique herbarium collection and taking a new Hampshire Cultural Trust Company number.. 08986225 Trustees. Report approach to makSng prlvate art publlc with Infinite Beauty, which saw works being sourced entlrely from local, prSvate collectors. Audiences were slower to return to our arts centre5, in line wlth the experience of the whole performing arts sector. By the end of the year, howèver, the arts centres were back to their buoyant, pre- pandemic selves, with classes fully booked and some shows sellin8 Out within 24 hours. The Halloween and Christmas perlods at Mlle5tones Museum proved to be our most successful to date in term5 of both visltor figure5 and revenue, with over 5,600 visitors weleomed over lust one weekend to the now well.established Chrlstmas market. Work to reach those most at need In communities across the county went from strength to Strength. The number of partlclpants In creatlve courses on our Brighter Futures programme, which supports adult5 Wlth mental health needs, Increased from 245 to 449 In just one year, while our Creative Boxes were translated into three additional lanBuages includln8 Ukralnlan, provldSng a small lifellne of support to those whose lives have been disrupted by war. New partnerships were forged, Including with F05terln8 HampshSre Chlldren, while more than 7,000 visitors saw exhibitions celebrèting creativity and raising awareness of mental health issues or8anlsed by young people participating in the ICE Heritage programme. Our long-held ambltion to achieve status as an Arts Council England IACEI National Portfollo Organisation INPOI was thls year realised. The funding that we will receive over the coming three years will not only enable us to continue to deliver our core programme5 but wlll also allow us to increase our levels of activity and engagement In three priority areas in the county.. Rushmoor, the New Forest and Gosport. We were also successful with our bid for funds from the National Lottery Heritage Fund INLHFI for the first Stage of our redevelopment of Alton'5 Allen Gallery. Thls intimate venue houses one of the nation's m05t important ceramScs collections, and this initial funding will support us to redSscover that collection for the community 3nd town of Alton. Our environmental artlon plan has made great strides. We have achieved bronze accreditation as a carbon literate organisatlon, Identified 12 key prlorities for the coming year and have gained sector recognition at events hosted by Julle's Bltycle as part of ACE'S Accelerator Programme for NPOS. Investment in our m05t valuable asset our people- was a major strand of attivity Sn 2022-23. 15 managers from across the trust took part in our first management training programme, we developed our employee value proposltlon and brand and launched an enhanced benefits package for all staff. After taklng part In the b-Heard employee sutvey for a thlrd time, we were thrilled to achleve One to Watch status for a second year running. Whlle we may be out of the pandemlc, we are, as is everyone, stlll faced with a challenging economlc environment. 2022-23 was a tough ye3r and for the first time, we posted a deflcit. To help combat the challenges facing us, in January we put in place a new or8anlsational structure that will help us to ride out the immedlate future, but, more importantly, put us in a stron8er position for the years to come. Every year as I wrlte thls attnual report, I thlnk that we cannot possibly have surpassed achievements of the previous year- but we have. I would like to thank our funder5, partners, vi51tors and donors for their continued support, I would also like to give thanks to our foundlng trustees who retlre in September 2023 after more than eight years of service. They were Instrumental In the establlshment of the trust and thelr commltment and hard work has been invaluable. Finally l acknowledge, with Immense gratitude the dedicatSon, passion and determination of our team of staff and volunteers, who continue to deliver our tore charitable purpose- to change Ilves through tulture. Hamp5hlre Cultural Trust Company number: 08986225 Trustees, Report STRATEGIC REPORT A¢hlevement5 and performance Highlights of our achlevements and performance are explained in relatlon to our strateglc goals. GOAL ONE To provlde hlgh-quallty pro8rammes and venues that enga8e diverse audien¢es and Inspire local pride We weltomed 635,122 visltors through our doors, a slgnlflcant achievement given that audlence sentiment regardlng returnin8 to publlc places remained cautious in the early months of the year Our total digital engagement, which include5 a combination of website Sessions and socS3l media impressions, was 10.1 million, a decrease of 0.9 million on the previous year. refltrcting a decline in post-pandemic di8ltal engagement a5 our visltors moved away from digital medla and returned to In-person experiences Our PR programme secured 781 pieces of positive publicity. Media coverage included BBC South, Channel Four News, BBC Two, the Jewish Chronicle, Counrry Life and the Guordion, as well the Times and the Daily Telegroph, which both carried photograph features for our self-curated exhibition, SHOES.. Inside Out Our exhibition programme at The Gallery in The Arc, Winchester, opened with Extroordinory Everyday.. The ort and design of Eric Rovilious. This self-curated exhibition attracted more than 8,51)O visitor5 and brought together over 60 Dbjects. with loans from new partners, the Imperial War Museum and Aberdeen Art Gallery. It also featured collections and ceramics which had not previously been on public display. This was followed by Out of the Blue, a touring exhibition from the Fashion and Textile Museum celebrating the work and influence of Designers Guild, Infinite Beauty brought together works exploring the enduring appeal of nature a5 a subject for leading 8ritish contemporary artists. Drawn entirely from private collectors in Hampshire, many of the works on display werÈ exhibited publicly for the first time. Toward5 the end of the year, Sin, partnership exhibition with the National Gallery, London, cème to The Gallery, featurin8 works by 3rtlsts including Rembrandt. lan Steen, Ron Mueck and Tracey Emln The relocation of City Space to the area outside The Gallery in The Arc, Winchester, providèd opportunities to connect the work of local artists with exhibition5 in The Gallery. These included Turn ond Return, a striking display of textile5 by weaver and dyer, Deirdre Wood, and We Corry A New World In Our Hearts, an exhlbitlon celebrating the power of voices of dissent by printmaker, Katherlne Antenev An ACE funded commission by ?rtist Suna Imre was installed in the atrium at The Arc. The arresting, hanging work comprises an array of wood-smoked, clay bouldcrs, referencing our precariou5 relationship to the Earth. The installation will remain on display until 2024 At the Sainsbury Gallery In B35ing5toke, visitors enjoyed Crafted, a celebration of high-quality, contemporary work by 22 artists from the Hampshire and Berkshire Guild of Craftsmen. This was followed by Mythomania, wlth large.scale sculptures in stainless steel, vinyl, corrugated cardboard ènd Perspex, and the Trinity 8uov Wharf Drawin8 Prlie 2022, which filled the gallery with works by over 90 artists from across the Elobe The final exhibition of the year saw the trust's shoe collection step out in style in SHOES.. Inside Out. More than 70 pairs datlng as fai back as 11 AD, were presented In the gallery, along with X-rays giving a glimpse Into the Inner working of selected shoes Following the building relurbishment, Gosporl Gallery re-opened with a eommSsslon from nationally renowned Portsmouth art15ts Heinrlch and Palmer who worked with the trust'5 herbarium collection to cre?te Hampshlre Cultural Trust Company number: 08986225 Trustees, Report video artwork inspired by flora and fauna growlng In the loc31 area At our three arts centres, we continued to rebuild our live performance and partScipation programmes following the challenges of the pandemit. We welcomed many well-known arts 3nd artists, who drew strong crowds. These included Cara Dillon, Shaparak Khor5andi, Peg8y Seeger, Mark Watson, The Brit Funk Association, Pete Firman, Glenn Moore. Mike Dawe5, Rosie Jones and Zoe Lyons Funding from ACE supported two arts centre projects.. Grassroot MusSc at the West End Centre and an outdoor arts project acr055 all three venues. Through these proleets we were able to pllot new artfr)rms and co-creation models and work towards building a more sustainable future for musSc In Rushmoor Supported by NLHF fundlng, the first phase of an excltlng project to rediscover Alton's Allen Gallery began. Home to one of the nation's most outstanding ceramScs ¢ollection5, this ambitious, two-sta8@ re¢Jevelopment has community engagement at Its heart and alms to relmaglne the co15ection, making it relevant and ccessible to all a8es and backgrounds Rockbourne Roman Villa celebrated 90 year5 since its distovery with a two.day, multi-period living hlstory event, while the Red House Museum staged outdoor theatre with a performance of Little Aed Riding Hood, by The Yak Pack Theatre Project The end of 2022 saw the opening of 878 AD, an exciting, immersive visitor attrattion created In partnership with video game developer Ubi50ft and creative studio Sugar Creative. Depicting everyday life In Angl¢-5axon Winchester and supported with Eraphics from the globally successful Assassln's Creed video 8ames, the ttraction has seen a diverse audience base, engaging people who do not tradltSonally vlsit museums Milestones Museum of Llvlng History welcomed 102,442 vlsitors over the course of the year, with events focussed on key tradin8 perlods. These included summer exhibitlon Hlstory Saves the World, whl¢h ralsed awarenes5 of climate action by examining both good and bad envlronmental practlces from hSstory, 1940s Week, Play Days.. Games at the Museum during February half term, as well as activities for Halloween and Christmas, when visitor numbers exceeded those seen during the same periods in 2019 We welcomed nearly 15,000 schoolchlldren to our venues in 2022-23. 10,000 of these, along with 2,000 teachers and helpers, visited Milestones Museum where the schools, prograrnme has finally returned to pre- pandemic attendance levels Collo¢tions management underpins mu¢h of our hlgh-quallty public engagement programme. Our team cleaned, conserved and documented each object that was put on display or removed during the year, whether for a temporary exhibltSon such as the showcase of our costume collections for SHOES.. Inside Out or the complete refurblshment of the permanent galleries at Gosport Museum We successfully bridged the gap between academic research and public engagement by bringing together researchers from Historic England and the universities of Winchester and Southampton in our innovative approach to communicating the most up-to-date understanding of 9th century Winchester at our new attraction, 878 AD During the year, our small, dedicated team of staff and volsJnteer5 contlnued structural Improvements to our collections database, creating over 15,000 new entrles and uploading over 4,000 new images, part of a process designed to make our collections more acce55ible in the future In 2022-23, key acquisitions Included a rare, Roman copper a51oy hare brooch, an early An8Io-Saxon arm brooch and a 19th century rifle, allegedly burned during the Wlnchester Barracks flre of 1894. Our colleetlons continue to be available onllne vla the collections website, which received over 110,000 vlews last year, and our Social media channels, which had a combined reach of over one million. In addition, we responded to 795 Hampshlre Cultural Trust Company number.. 08986225 Trustees, Report public enquiries, which ran8ed In scope from checkins lotal hlstory detalls to arr3nglng in-person acce5S to our stores and archives GOAL TWO To Improve wellbein& health and happiness throuuh cultural •xperience5 The work we do with the most vulnerable in our commuftity is at the core of our purpose, changing lives through culture. We Continue to work with key partner5 such as Hampshire CAMHS Ichild 3nd Adolescent Mental Health Servicesl, the Natlonal Probation Service, l.lampshire County Council Children'5 Services and local communlty or8ani58tions. This work provides cultural engagement for a range of communitie5 that includes veterans, older people living with dementla, adults and young people with mental health issues and people either In prlson or on probatlon. Durin8 the year we worked with 1,990 participants Men's Shed projert Building on a pilot project Started during lockdown, the team at Forest Arts Centre expanded thelr collaboration with the New Milton Men'5 Shed to create and deliver craft packs. From trinket boxes to cold frames and decoupage ornaments, OIV kits were dlstributed wlth the help of local social prescribers and charlties to people at rislc of soclal isolation and those who may experience Significant barriers lo accessing local cultural provision. The project also supported Men's Shed members to lead a Community project and boost thelr own mental health through connectSon, learning new skills and giving to other5 Brighter Futures In partnership with wellbeing centre5, day care providers and the social prescribin8 network, our Brighter Futures programme worked to improve and 5UStain positlve mental health and wellbelng in Hampshire dults. Delivered in five ol our venues, including in Winchester for the firsl time, The breadth and diverslty of the programme was increased in 2022.23 to include 3n ESOL (English for speakers of other languases) provision for second Sanguage learners and family courses worklng with the Winthester Ciry ol Sanctuary partnership. The 449 learners worked with local artlsts tsn 52 creatlve courses that Sncluded celebrating seasonal living, clay craft5 for wellbeing, needle feltln8 and more. The courses aim to build confidence, develop emotional resllience and provide opportunlties for people to connect with other people in their community Be the Inspiratlon Thi5 year we formed a new partnership with Fosterlng Hampshire Children to support children and young people with care experience and foster families for their new #openyoiirdoor tampaign. 46 children aged 4- 17 years old and their foster famille5 worked with art15t5 at Forest Arts Centre, Milesroiies Museum, Andover Museum and Musèum of the Iron Age and Westbury Manor Museum to create artwork celebrating their creatlvity and sharing their stories, The artwork will be displayed in a touring exhibition in four of our venues and with partners alon8side the #openyourdoor campaign in 2023-24 Creative boxes 8uilding on the success ol this programme during the pandemic, a further 150 creative boxes were distributed across the county tts young people Struggling wSth their mental health to provide opportunlties for them to engage with creativity. Wlth support from the commLJnity and establlshed partriers, many of these boxes weve sent out over the fe5tlve period to offer posltlve actlvStie5 durin8 what can be a difficult time. We aSso worked with Hampshire County Council Children's Services to create Bn artwork installation al the Cijrtis Museum in Alton, whlle three addltional translations- Ukrainian, Pashto and Arabic- of t'he accompanying Hampshlre Cultural Trust Company number: 08986225 Trustèes, Report booklet were produced in partnership with Schools to support young people seekin8 sanctuary in Hampshire. These partnerships led to a series of Workshops with youn8 people from the Clty of Sanctuary community produclng artwork for a moving collective exhibition, From One Place to Another, at The Arc. In total, 176 young people were reached during the year and seven artist-led workshops delivered Horizon 20:20 Now in it5 seventh year, this programme, whlch works with seven education centres across Hampshire, Is 5UPPQrting teachers to develop thelr own arts progrèmmes. Recognlsing the continued impact of the pandernic, mental health illnesses and the cost-of-livlng cr5sls, thls programme continued. To ensure that some of the most vulnerable young people in Hampshlre were able to access hlgh.qu8lity arts and culture, rt1Sts, cultural experiences and all the benefSts they brlng. Through professlonal development, four education ¢entres are ready to submit their Artsmark accreditation applleatlon ICE HeritaBe In partnershlp wlth Hampshire CAMHS, the ICE Heritage programme, worked with young people aged 11-18 years old, creatively engaging them with arts and local heritage and exploring themes inspired by our collectlons and the environment Westbury Manc>r Museum, Andover Museum and Aldershot Military Museum welcomed six cohorts of younB people to participate in inspire days and 10.week programmes, with 79 artist-led art workshops including photographyi printmaking and leathercraft. To celebrate their work, young people ran their own events and curated their own exhibitions which were seen by over 7,000 vi51tor5. Built into the programme was long- term supptrrt for indivlduals to help their journey toward5 Posltive mental health, including stage confidence workshops at Ashcroft Arts Centre, coats of arms creative workshops at both The Arc and Ashcroft Arts Centre and costume design with Hampshire Wardrobe. The young people were supported to get involved with arts venues and events in thelr l¢cal communltles, with highllghts Including performing at the All in the Mind festival, 81sin8stoke, recordlng their muslt at Hightown Studios in Southampton and Showcasing artwork and interview films at Winchester School of Arts The Reslllence Garden In the summer, Aldershot Milltary Museum opened its Resilience Garden. Since 2021, the project-funded by MOD Covenarit Fund and Hampshire Gardens Trust- has been working with local civilians and veterans recovering from mental health illness to design and create a community garden in the grounds of the museum. With support from facilitators, the participants developed new creative ski115, such as mosait making, using them to create the garden desSgn. The garden will now offer opportunities for volunteering to help wlth Its malntenante Allen Gallery communlty programme As part of the NLHF funded programme to redevelop the Allen Gallery, we worked wSth a number of community groups and partners to explore how the venue and Its collettSons could support the health and wellbeing of the local community. In partnership with Dementia Frlendly Alton, the Creative and Curious pilot programme was delivered, offering hand5-on, craft-related actlvitles to group members and thelr carer5. This programme also worked with Alton's St Lawrence School, developing Bn intergenerational serles of activities and supporting students to work alongside group members. The partnershlp w511 be developed into a regular serles of engagement opportunitie5, Wlth 57 older people and 62 students already reached and engaged On the Move Durlng the year we completed our first collettion5 project deslgned to enhance health and wellbeing. Thanks Hampshire Cultural Trust Company number: 08986225 Trustees, Report to fundlng from the Museums A550clation, 8nd with support from Solent Mind, 14 volunteers gave over 1,500 hour5 of their time to On the Move, cataloguing and researchin8 our Industrial vehicle collectlons. Everv participant reported improvement in their mental health. especially around a sense of purpose and belonging. The project also alluwed for investment in trainin£ for collections staff and helped develop our impact evaluation proce55e5 Reachlng Outl With continued funding from ACE and the Department for Education, Reaching Outl supported schools In reas of high deprivation in North Hampshire with a hiRher-than-average pupil premlum. With schools emerglng from the pandemic and the c05t-of-living crisis hitting, the project focused on stren8thening partnerships with new and existing schools and developing education programmes which Include Special Educational Needs and Disability learning provisions, wellbeing outdoor activitles and combined offers to enhance pupils, education. The programme wolcomed 3,619 PLJpi1s from 63 schools Tuesday Strolls Red House Museum contlnued to provide people living with dementia and thelr Carers with the opportunity to enjoy a socla1 walk around historic Christchurch as part of their volunteer-led programme. Tuesday Stroll5. The team created 350 opportunities for people to take part in the walks, which were supported by referrals from local social prescriber networks. The museum also began working in partnership wlth Pramalife to offer a fortnightly carers, support group GOAL THREE To deliver a sustalnable future for culture in Hampshlre, contrlbutins to the local economy and bullding stronger communltles Although thi5 was a tough year financially, our proactive and flexible approach to fundraising and income generation helped our position a5 a sustainable and resilient organisation. During the year, we secured over £3 mi51ion in grants and donations for programmes running until 2026. In 2022-23, we deepened our relationships with ACE and NLHF. This included securin8 ACE NPO statu5 from April 2023 and significant project funding from NLHF including for the development phase of the Allen Gallery project, We are also proud members of the first NLHF Heriiège Innovation Fund cohort. Support from a range of funders and donors for 878 AO wa5 particularly notable and we are very grateful to the truslees of the Engert Watford Motor Museum for their significant grant towards our vehicle collection. Implementatlon of the Spekirix ticketing CRM resulted In new opportunlties for digital fundraising, generating £20,1)00 in the first vear In November 2022, we opened Gosport Museum and Art Gallery followSng a yearfs closure for redevelopment. The £1.5 million project investment was made possible through support from 3 wide range of partners, individuals and groups, as well a5 a community fundraising campaign, Tag-A-Tile, which successfully secured a further £12,000. The investment allowed the development of facilitie5 to increase the venue's engagement capacity and improve financial sustainability. A new local history museum was co-created with local residents, a community gallery established to showcase the work of local artist5 and makers and the learning and meeting rooms refurbished to provide improved facilities lor groups. A new café and retail area support income generation and adaptations to the ground floor reconnect the building with the high street and provide easier acce5S to Gosport Gallery. Feedback from visitors has been exceptional, and visitorfi8ures have Sncreased from a monthly average of 2,300 pre-pandemic to 3,200 per month Thi5 year marked the first full year of our operational responsibility for The Arc In Winchester. The Arc team, Hampshire Cultural Trust Company number.. 08986225 Trustees, Report worklng with Hampshire Libraries, successfully grew enBagement and opened up new Income streams to enhance the venue's financlal sustainability. Ouring the year, we welcomed more than 275,000 vlsltors, of which 16,408 enjoyed live performances, classes and workshops, while a further 11,800 participated In Sessions run by Winchester Library. We offered over 220 events and actlvitie5, a fourfold increase in the 2019- 20 programme, with comedy, children's theatre, workshops in the Digital Lab lecture5 and talks, as well as term-long classes covering many different art forms. The café and retail offer both increased substantiallyi attractin8 regular visitors and generating slgnilicant income Conslderable progress With our environmental action plan was made durln8 the year, includlng condurtlng further energy audlts of our sites, embedding environmental responsibilitie5 into our activities and achleving bronze accredltation as a carbon Ilterate organisation. We also identified 12 key envlronmental priorltles for the comSng year. We took a proactive approach to sustainability by piloting a green team at our head offlte, where staff planned and delivered environmentally focused activities to improve biodiversity and sustainability. Our work in environmental sustainability gained recognition in the sector, with presentations at events hosted by Julle's Bicycle as part of ACE'S Accelerator Programme for NPOS and the South East Museum Development Programme, where we shared our best prartices with their museum network We completely modernised the IT experience for our staff by replacing ageing technolo￿ wlth new desktop and laptop computer5, deploying video teleconferencing teehnology to meeting rooms across the trust and migrating to cloud-based servi¢e offerings GOAL FOUR To create fulfSlllng employment and volunteering opportunlties through culture We employ more than 180 staff and engage over 400 volunteers. Our people are our most valuable asset. deliverlng our strategSc priorltles and Social impact. With three new venues opening in 2022 and new staff to recruit in a tough market, it was cruclal to stand out from the crowd and give prospective employees a pr>werful reason to work for us. We therefore developed our employee value proposition and employer brand, Make your Mark, and also launched our new careers website which provides information abgut our values, storie5 from our people and the beneflts of being part of our team We reviewed our approach to recruitment and onboardin8, launching an enhanced process to ensure we deliver a flrst-class candidate experience. This included the development and implementation of our new applicant tracking system, as well a5 tools and resources to upskill our hiring managers, including a recruitment guide, toolkit and new tralning programme. As a result, we have seen a significant uplift in quality applications and Increased the dlversity of our workforce Taklng the cost-of-living crisis into account, a review of the trust's employee benefits was undertaken and in enhanced benefit programme launched in October. We introduced season ticket and travel loans, free flu vaccinations, a charity worker discount scheme, a new eyecare scheme for screen users and a new employee assistance programme, which offers a range of features aimed at improving health and wellbeing Our new Equity, diversity and inclusion IEDII strategy and policy were developed, setting out our continued aspirations as well as the actions we will take to ensure that EDI is embedded in everything we do. The strategy and associated action plan wlll launch in 2023-24 Our inaugural management development programme saw 15 managers from across the trust take part In a flve-month learning journey to 5UPPOrt them to develop inspirational and values-based leadershlp styles We undertook the Best Companies b-Heard employee engagement Survey for the thlrd time, achSevln6 an 82% response rate and One to Watch status for a second year runnin8 Hampshlre Cultural Trust Company number.. 08986225 Trustees, Report We were confirmed as one of 35 innovatSon projects awarded an NLHF grant to make the heritage sector fit for the future. We are particlpating in a six-month Innovation learnin8 programme to develop a new volunteer strategy. in consultation with staff and volunteers at venues across the county Faced with the continuing pressures of rises in inflation, utilities and pay we reorganised in early 2023, puttSng in place a structure to improve our sustainability. By reducing costs and increasin8 focus on income generatign, the new structure will enable us to continue to deliver hlgh-quality arts and culture both for our communitie5 and visitors lo the county in the long term With ACE support. we brought two new temporary positions into the or6anisation, Cultural Development Mana8ers ftjr both Gospoit and Ru5hmoor. These roles work closely with local borough councSls in ACE'S priority places to progress the aims of their respective cultural 5trate8ies. They provide dedicated expertise to build the local cultural sectgr, fosterin8 closer, collaborative working and undertaking capacity buildin8 With partners Our Supporters Hampshire Cultural Trust is very 8rateful to 311 of our supporters who have contributed to our activities during the year. Thi5 include5 a numtser of other trusts, foundations and statutory bodie5 in addition to individual donors and friends, groups. Financlal revlew Total income lor the year of £8,368,65612021.22 Restated: £8,276,327) shows a modest increase from 2021~22. This is desplte the endlng of pandemit related funding support received in 2021-22, an adjustment to increase 2021-22 incorrè figures due to a change in accounting treatment for grant income (referred to in note 2 to the accounts), and an extremely difficLIIt economic environment. It reflects strong focus on enhancing the revenue generation from our venues, improving yields and adding additional venues, as well as further support from our prlncipal funders. Substantial growth in income from charitable activitie5 and trading income are particularlv noteworthy. As well as Increases in costs due to new venues, costs have come under pressure during the year from high Snflation leve15 and other adverse economic developments, The trust has taken prompt actions to actively seek efficiency savings and reduce costs. Difficult decisions have a150 been taken during the year to implement a redundancy programme and to commence a small number of venue closures where insufficient local authorltv support Is available. Durlng the year, reserves were also Impacted by a substantial capital projects programme, including the development of The Afc in Winchester, the transformation of Gosport's Old Grammar School into Gosport Museum and Art GalSery, and the launch of our Anglo-saxon attraction, 878 AD. £325,000 ol designated funds brought forward from 2021-22 were fully expended on that capital programme in 2022-23. Hampshire Cultural Trust Trading Limited Is showing a profit for the year of £70,709. Following post-pandemSc return to normal tradin8 and growth in trading company profit5, a management fee has been charged by the trust to the trading Company for the first lime. The remaining available taxable prgfits of the trading company wlll be Glft Alded to the trust during the next financial year. The princlpal source of core lunding remains With our founding members, Hampshire County Council and WSnchester C5ty Council, contributing 34% to income132% in 2021.22 Re-5tatedl. Other local authority Income contributed 5%. io Hampshire Cultural Trust Company number: 08986225 Trustees, Report The trust suffered a consolldated loss for the year to 31 March 2023 of1£656,973112022 Re-stated.. surplus £648,825). The trust's total reserves at 31 March 2023 were £2,338,46512022 Re-stated: £2,995,438). The 2022 surplus and reserves were re5t3ted malnly for a change In Brant income recognition, referred to In note 2 to the account5. This represents a timing difference. accelerating the recognition of some income. The closing cash posltlon has decreased to £1,255,32512022.. £1,866,5371, largely due to expenditure on the major capital investment projects referred to earlier. Unrestricted net assets are £851,48712022 Re.stated.. £1,739,466), with £378,269 held as net current assets available for Immediate use as free cash reseNes. Management has taken actions, Wlth support from our core funders, to seek to enhance this level of free cash reserves In Ilne with the trust's Reserves policy. The trustee5 are satisfied, with income committed from core funders, appropriate actions taken to enhance income and manage costs, that our reserves remain sufficient to SLtpport activitles going forward. Goln8 Concern Current activity levels, the recently achieved NPO status with ACE and committed fund5 from our foundin8 local uthorities through to at least 31 March 2025 provide Te055urance as to the basis of going concern, even de5plte this continuin8 period of difficult trading. Management has produced forecasts for these periods, which demonstrate that with sensible and progressive actions there are adequate reserves to continue to operate for the foreseeable future, and for at le35t 12 months from the date of this report. Accordlngly, the trustees consider that the trust and its trading subsldlary contlnue to be a 8olng concern. Reserves policy The trust holds reserves prlmarlly to protect Itself from the Impact of unexpected variatlons in income and expenditure. Slgnificant variations in income may arlse, for example, from a major incident at the trust'5 main Income-generating venue, or through delays In recelpt of project grants, or a global pandemic, such as the one we have experienced through 2020-21. In additlon, an Incident such as a fire may result in additional costs being incurred, which the trust may have to flnance from its own funds before any recovery from third partie5. The trustees have revlewed the trust's Reserves pollcy to refle¢t the maturlty of the trust. Under the policy.. the tru5Ys reserves tomprise the unrestrltted funds excluding fixed assets at the financial year-end,. the trust does not hold reserves to protect it from the impact of non-payment of local authority grant Income a5 the amount5 and receipt are notified well in advance, and risk of non-payment Is consldered low,. the trust does hold reserves to guard it asainst the Impact of an unexpected decline In non.local authority income, or of having to incur a level of expenditure which exceeds the amounts budgeted or planned,. and the target level of reserves for the trust Ss based on one quarter of the amount by which annual budgeted expendbture exceeds the coré local authority grant funding. Under thls pollcy, bearing in mlnd Charity Commission guidance and taking into account continuing challenging economic conditions, the trustees consider that free cash reserves should be raised to at least £500,000 In the short term and should be rebullt over time to a level of approximately £1,000,000, although significant variations may arise year to year. The trust is continuSng to Invest in Its portfolio, its infrastructure and its people. These investments will contlnue to enhance the revenue generation of the venues and activities of the trust,. to ensure a more diverse and resilient portfolio of fundin8 sources,. and to maintaln the level of reserve5 In line with the trust's Reserves policv. li Hampshire Cultural Trust Company nymber: 08986225 Trustee5' Report The trust'5 Reserve5 policy wlll continue ID be reviewed on an annual basis. Prlnclpal risks The trust continues to develop its framework for risk management. Risk management is focused on IdentifyinB 5iBnificant ri5k5, which are inh￿rent within the trust's activities, structure, and funding; and mitigating the potential impact of these ri5k5 throLJ8h the trust's operating and investment programrne, management actions, and conventional risk mit5gatlon such as insurance. Key risks are regularly reviewed and discussed by the Leadership Team and with the Finance, Investment and Audit Committee, The board reviews the register on an annual basls. The principal strategic, financial and operatlonal rlsks whlch are Inherent in the trust's activitie5, Structure and funding relate to the impact of.. reductions in the level of ongoing fundlng from local authorSti&s, and the trust's 3bility to secure adequate and sustainable alternative sources of funding,. flllure to control c05t5 leading to lack of cash or inability to support operational needs,. inadequate safeguarding arrangements leading to young / vulnerable persons being harmed while takin8 part in the trust's pro8rarnmes', and impact of unexpected variations of Income and expenditure, such as fire, flood, global health pandemic or other significant event. These risks are mitigated or managed through tho design and Implementation of the trust's work programme. Th15 Include5: delivering an ambitious programme of events. activities and project5 10 include active strategic and operational engagement and partnership.working with local authorily representatives at btsth operational and financial levels,. continual improvement in operation5 and financlal management, enabllng the trugt to deliver Its operètlonal programme within approved financial budgets, whi15t maintaining the plann@d level of reserves; ongolng development of staff 2nd employment policies to meet current requirements and best prattices. 5afeBuarding polScies to be reviewed and issued, DBS checks for all staff involved in regulated, unsupervised activity as highlighted in the Safer recruitment policy; holding the appropriate level of reserves as detailed in the Reserves policy,. contSnual development of the operational risk register with a wider scope ènd frequent monitoring,. and holding appropriate Insurance cover including, business interruption, property, employers, liability, professional indemnlty, public and products liability, collections, fleet and cyber. The trust will contlnue to develop Its risk mBn38ement framework and regularly review it5 related policie5 and procedures, 12 Hampshlre Cultural Trust Company number.. 08986225 Trustees, Report Future plan$ We start our 2023-24 exhibition programme In The Gallery at The Arc, Wlnchester, wSth Sln, a tourlng exhibition from The National Gallery, London, followed by Constable.. The Dark Side. ThSs unlque show wlll be speclally curated for the trust and will explore Con5table's obsesslon wlth the contrast between light and dark. SHOES.. Inside Out will follow, and towards the end of the year. The Gallery will showcase a selection of tapestries from textile artist and ceramicist, Grayson Perry At the Sainsbury Gallery at the Willis Museum Sn Basingstoke, we will telebrate the 75th anniversary of the arrival of HMT Empire Windrush in London in 1948. This self-curated exhibition retells the s18nlflcance of this arrival and the reasons why people from the Caribbean were invited to come to Britain to help rebuild the country after the Second World War. Gosport Gallery w511 feature Underwoter Photogropher of the Yeor2023 for the first time and we can look forward to Stindsotional, an unusual and excltln8 sand sculpture commission and our first charged exhibition in this gallery Milestones Museum will enhance its Ilvlng history offer through the recruitment and training of costumed volunteer5. A refurbished space will provide the opportunity to display a varlety of domestic appliances from the museum's much-loved collectlon that have been In storage for some years in a new programme of themed exhibitions In February 2024, we wlll Submit an application to NLHF for the second phase of the development of Alton's Allen Gallery. This will see the refurbishment of the venue to Showcase its outstanding and newly reinterpreted ceramics collections, provide a dedicated community space and make a significant contributlon to the culture, economy and life of the town We will carry out a feasibility study for the expansion of Milestones into the adjacent, outdoor green space as part of Basingstoke and Deane 8orough Council's plans for the regeneration of the town's Leisure Park A feasibility study wlll take place at the Willis Museum and Sainsbury Gallery in 8asingstoke. Commissioned by Basingstoke and Deane Borough Council, the study will explore the potential for this venue to support plans for town centre regeneration through greater visibility of key moments in the town's historyi including the 8urberry and Jane Austen storie5 The Cultural Development Manager roles in Gosport, Ru5hmoor and the New Forest, funded through our NPO commitment to priority places in Hampshire, wlll continue to drive forward collaborative working and projects in each area, including working with Gosport Borough Council on Arts In the Parks In Gosport, planning for a new culture and leisure facility in Rushmoor and a new literature festival in the New Forest. These roles will also support our broader NPO ambitions, includin8 the development of training programmes and networking opportunities for creatlve practitioners In 2024, we are lookSng forward to celebrating the 50th annlver5ary of excavations at Sllchester, one of the most Important Roman archaeological sStes In the country. In partnership wlth the University of Reading and hosted at Baslngstoke's Wlllis Museum, the exhlbltion will draw attentlon to both the scientific rigour of the excavations as well 05 the human storles they unearthed We wlll roll out an ediJ¢atlon programme for 878 AD, offering children in Key Stages 1, 2 and 3 the OPPDrtunity to engage wSth interactive and immersive learnin& underpinned by the national curriculum Our work to build a touring exhibition offer using the exceptional museum collections in store will continue. Our first commercially available show, Dinosourium, will travel to Time & Tide Museum in Great Yarmouth next year, and we are also lookin8 forward to adding a refreshed touring display of our Egyptian collection. As part of the national MAGNET partnership* we are also working with museums acr95s England to create a joint 13 Hampshire Cultural Trust Company number: 08986225 Trustees, Report tourSn8 display on the theme of colour that wlll travel to Hampshire in 2025-26 We will continue to work on making oijr stores and collections Information more accessible to our communities. In 2023-24, we will seek project funding to dellver a new volunteerlng Dffer to support the future programming for our celebrations of the 250th annlversary of Jane Austen's birth in 2025 We have set ambitious goals around environmental sustainability, including achievlng gold accreditation as a carbon literate organisation by March 2024. Our key environmental priorities for the eomSng year include determining the financial and carbon impact of capital and biodiversity opportunities, revlewing contracts to monitor and collate waste data, promoting sustainable travel options, monitoring and reporting on energv data, reviewing procurement choices for svppliers, green tredentlals and developing envlronmental Sustsinability criteria for Capital projects and exhibitions We will deliver our action plan to support OLtr EDI strategy aiming to be as diverse as Hampshlre and its surrDundin8 counties. This will include focusing on the diversity of our workforce and revlewing our programrne, exploring how to attract a more diverse audience base Following completior) of the NLHF Innovation Programme, we will13unch our new volunteer strategy and continue to lay the foundations towards accreditation experience through Investors in Volunteer5 We will start the second cohort of our Management development programme, build a plan to deliver a pilot programme for apprenticeships and launch our License to Hire development programme, training our staff in best practice recruitment processe5. Strurturep governance and management Hampshire Cultural Trust was founded jointly by Hampshire County Council IHCCI and Winchester City Councll IWCCI and is incorporated as a company limited by guarantee, and is re8lStered with the Charities Commisslon. The trust is governed in accordante with its Articles of Association for a charitable company (the Articleg of Association were last amended by a special resolution on 25 September 20221, Copies can be obtained from the trust's registered address. The trustees, liability is limited by guarantee. The trust pays for indemnity insurance on behalf of the trustees. The trust has one wholly-owned trading subsidiary, Hampshire Cultural frust Trading Limited 1.the trading company"). The objective of the trading company is to generate income to support the charitable objectives of the trust. It carries out commercial activities that complement the charitable objectives of the trust. The trading company will pay an amount equal to its distributable reserves each year to the trust under the Gift Aid scheme. The relationship between the charity and the trading company 15 reviewed annually by the Finance, Investment and Audit Committee and the board. Appolntment of trustees Membets elected to serve on the board have a dual role as a trustee of the charity and as a director of the company. There can be no fewer than three, and no more than 51Xteen trustees. One trustee 15 appointed by HCC and one trustee is appointed by WCC. The remaining trustees are appointed by the board and serve for an ￿nitIal term of up to four years, and a maximum if reappointed, of eight years. To ensure that the board is sufficiently skilled lo carry out its responsibilities, it carries out a skills analysis of existing members before new ones are appointed. In September 2023, several founding trustees reached the end of their term and have retired. To develop an effective succe5sIon plan and manage the recruitment process, in September 2021, the board agreed to establish 14 Hampshire Cultural Trust Company number.. 08986225 Trustees, Report a Nomlnatlon Committee. Durlng 2022.23, the committee worked with the Chief Executive, Director of People and Company Secretary to undertake a ski115 audit of trustees and develop a succession plan, with the intention to recrult up to flve new trLt5tees. With the retirement of the chairs for the Finance, Investment and Audit Commlttee and HR and Remuneration Committee in September 2022 and September 2023, respectivelyi the appointments of their successors were prloritised during 2022-23, with Hugh McNaughtan appointed in JUSY 2022 and Claire Miller appolnted in February 2023. Threè further appointments have been made in May and June 2023 to replacè those that have retired. One of the four foundlng trustees due to reach the end of thelr term In September 2023, wa5 the chairman of the tharltyl Alan Lovell. Wlth two additional trustees leavlng the charlty In 2022 and 2023 due to personal reasons, and following rigorous discusslon and debate, the trustees determined that It would be in the best interests of the charlty for the cha5rman's permStted length of service to be extended by two years, to the Annual General Meeting IAGMI in 2025. This was with due consideration of the financlal uncertalnty currently faced by the trust and the wider sector and the upcomlng retirement of four trustees at the AGM in 2023, the board 36reed that the extension would provide the charity with e55entlal continuity. The abllity to extend the chairman's length of service was permitted by a new clause In the updated articles of association, approved by the members in September 2022, which allowed the trust to extend an indivSdual trustee's term in exceptional circumstances. The board was satisfied that this condition was met and ensured that robust discussion and debate was held around alternative optlons. As part of the process, consideratlon was 8iven to related guidance from the Charity Governance Code and the Charlty Commi5$1on, and the review of the articles was undertaken with guidance from the trust's lawyers and the Chartered Governance Instltute. Followin8 the development of the trust's new EDI strategy in 2021.22, improvlnB the dlversity of the tru5Vs board was a key priority for the remalnln8 trustee appointments. The Nomlnation CommSttee worked with the executive to identify candidates and recommend them for board approval, and to oversee the development of a diverse pipeline for successlon. The trustee recruitment, selectlon and InductSon process Is Informed by CharSty Commlsslon guldante. As a matter of course, all trustees are provlded with relevant publications, such as The essentlol trustee.. what you need to know, what you need to do ICC31, In addition to the charity and tradlng subsidiary's governlng documents, trustee role description. policies and procedures relevant to the role. Due diligence is completed, and declaratlons of eligibility confirmed, a5 requlred. The induction process is led by the Company Secretary, in consultation with the Chairman of the board, Chief Executive and Director of People. The trustee induction and trainin8 framÈwork continue to be developed, for implementation in 2023-24. Management and declslon mèklng The board of trustees Is the strategic decision-making body of the charity and is responsible for ensuring the charlty's objectives are achieved and Its plans are implemented. The trust is committed to following the Charlty Governance Code's princlples and recommended practice, and the Fundraising Regulatorfs Code of Fundraisin8 Practice. Day to day management of the trust and the trading company is delegated to the Chief Executive in accordance wlth the trust'5 Scheme of Delegation, which is reviewed annually by the board. The board generally meets six times per year to review strategy, operational plans and performance, and to endorse key management decisions. It is helped in its work by trustee.led standing committee5- the Finance, Investment and Audit Committee, HR and Remuneration Committee, the Collections Committee and the Nomlnation Commlttee. Each commlttee's delegated responsibilities are outlined In thelr terms of reference, 15 Hampshlre Cultural Trust Company number.. 08986225 Trustees, Report whlch are agreed by the board at)d revlewed annually. When exercislng any powers or duties to which the guidance is relevant, the trustee5 confirm that they have complied wlth the duly in the Charitles Act 2011 to have due re8ard to the tommission's public benefit guidance. Equlty, Diverslty and Inclusio Hampshire Cultural Trust is committed to promoting EDI. Wè believe that a culture that actively values dlfferei)ce and people from different backgrounds and experiences can brlng valuable inslghts to the workplace, enhance the way the organi5ation perform5 and the way we work. In 2021-22, the trust commissioned Charlotte Swepney OBE to facilitate the board in the development Lsf a new EDI strategy and a review of its policy. Following a full board strategy day in january 2022, two working groups were established= one conslsting of member5 of the board and leadership team, and a staff group to ensure1nput and collaboration from all areas of the trust. During the following months, both groups worked with Sweeney to develop the strategyi agreelng the overarching Strateglt goals which are underpinned by four key strategic EDI pillars across the trust.. Board, People, Programme and Visitors. The new strategy was approved by the board in May 2022, and the subsequent policy approved in August 2022. The Strate￿ sets out our continued aspirations as well as the actions we will take to ensure that EDI is continually embedded throu6hout all we do. Over the coming year, the trust will continue to implement the short-lmid-term actions identified the strategy and1ay the foundations for the longer-term actions, with progress against the strategy monltored at regular Intervals. Remuneration pollcies In examining and awarding executive pay, the trust Vse5 as benchmarks a variety of data 50urce5 Includln8 publicly advertised vacancies and disclosed information for similar positions withln the sector and re810n. Recruitment to Leadership Team positions is led by the Chief Executive in consultation wlth the Chairman, In accordance with the trust'5 Scheme of Delegation. The HR and Remuneration Committee oversees the development of employment related policies acf055 the trust. A review of the trust's reward, recognition and pay procedures was undertaken in 2022-23. and in reco8nilion of the cost.of-living crisis and to remain a competitive employer in the sector, a full job evaluation and salary review exercise was completed early in 2023-24. All member5 of the board are not Temunerated for their role a5 trustees ané have no beneficlal Interest In the charity or group. Any trustee expense5 reclaimed from the charity are set out in the notes to the financial statements. In 2022-23, one trustee, Helene Louise West IHLWI, was paid for professSonal services provided for a commercial, charged event. The charity sought the approv81 of the board for the provislon of these services and related payment, and this was provided following due discussion and debate. HLW'S servlces have been provSded on other occaslons without pay. HLW did not particlpate In trustee discussion or decislon around the agreement, and a contract was prepared and siened by HLW and a member of the executive. Funds held as custodian Trustee on behalf of others In accordance with the trust'5 governing document, the Management and Funding Agreement wlth both of our founder local authoritie5 IHamp5hire County Council and Winchester City Council) the trust is the custodian of historic a55ets and properties on their behalf. These assets are held separatèly from those of the trust and are recorded on Modes, a catalogue sy5teFn. Any changes to these are detailed in note 27 to the financlal statement5. 16 Hampshlre Cultural Trust Company number: 08986225 Trustees, Report Fundralslng standard5 Informatlon The trustee5 are committed to an ethScal approach to our fundralslng activity and have an Ethlcal fundralslng policy in place. The trustees are grateful to receive voluntary donation5 from supporters either vla our website or at our venues or via other giving platfomis. The trust carefully monltors preferences of our donors and subscribers to ensure that there are no unsolicited fundraising campaigns. The trust is registered with the Fundraising Regulator and abides by the Code of Fundrai5in8 Prartice. Our fundraising activity is overseen by the Director of Marketing and Fundraisin8. Statement of truste￿ responslbllltles The trustees (who are also directors of Hampshire Cukural Trust for the purposes of company lawl are responsible for preparin¥ the Trustees. Annual Report and the financial statements in accordance with applScable law and United Kingdom Accountin8 Standafd5 Iunlted Kingdom Generally Atcepted AccountinB Piactlcel. Company law requires the trustees to prepare financSal statements for each flnanciaS year. Under company law the trustees must not approve the flnanclal statements unless they are satlsfied that they give a true and fair vièw of the state of affairs of the charitable company and of the incoming resource5 and applic?tion of re50urces. including the income and expènditure, of the charitable company for that period. In preparing these financial statements, the trustees are required to: select sultable accounting policies and then apply them consistently; observe the methods and prlnciples in the Charities SORP 2019 IFRS 1021; make jud8ements and estlmates that are reasonable and prudent,. and prepare the financial statements on the goSng concem basis unless it is inapproprlate to presume that the charitable company will continue in operation. The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are a150 responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularlties. In so far as the trustees are aware: there is no relevant audit information of which the charitable company's auditor is unaware; and 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 atjditor is aware of that information. The trustees are responsible for the maintenance and Integrlty of the corporate and flnancial Informatlon included on the charitable company's website. Le8islation In the United Kingdom governing the preparatlon and dissemSrsation of financial statements may differ from leglslatlon in otherjurisdictions. Audltors Ourlng the year, the trust and its SLFbsldlary appointed new auditors, PKF Francls Clark. So far a5 the trustees are aware, there 15 no relevant audit information of which the companvs auditors are unaware. Trustees have taken all the step5 necessary to make themselves aware of any relevant audit information and to establSsh that the companvs audltors are aware of that infomiatlon. 17 Hampshlre Cultural Trust Company number: 08986225 Trustees, Report Small Companles Disclosure This report has been prepared in accordance with the provisions applicable to companies subject to the small companles, regime in Part 15 of the Companies Act 2006. The trustees confSrm that thi5 Report and Financial Statements complie5 Wlth current statutory requirements, the Statement of Recommended Practice: applicable to charities preparin8 their accounts In accordance with the Flnancial Reportlng Standard applicable In the UK and Republic of Ireland IFRS1021 las amended for accounting periods commencing l January 201613nd with the trust's Articles of Association for a Chariiable Company. Approved by the trijstees and signed on their behalf bv.. AC Lovell Chairman Date 24 November 2(123 18 Hampshlre Cultural Trust Cornpany number: 08986225 Independent Audltorf5 Report to the Members and TTU5tees Oplnlon We have audited the financial statements of Hampshire Cultural Trust Ithe'parent charitable Broup and parent charltable company'l and Its subsldlaries (the 'group'l for the year ended 31 March 2023, which comprlse Consolldated Statement of Flnancial Activitie5, the Group and Parent Charitable group and parent charitable company 8alance Sheets, the Consolldated Cash Flow Statement and the related notes, including a summary of 5Sgnlficant accounting pollcie5. The financial reporting framework that has been applied in their preparation Is applicable law and United Kingdom Accountin8 Standards, including FRS 102 'The Financial Reporting Standard applitable in the UK and Republlt of Ireland, Iunlted Kln8dom Generally Accepted Accounting Practlcel. In our opinion the flnanclal ststements.. give a true and fair view of the state of the group's and the parent 8roup and parent charitable company's affairs as at 31 March 2023 and of the Broup's profit 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 2006 and Charities Act 2011. Basls tor oplnlon We conducted our audit in accordance with Internatlonal Standard5 on Auditing IUKI IISAS IUKII and applicable law. Our responsibilities under those standards are further described in the auditor responsibilities for the audlt of the financial statements section of our report. We are independent of the group and the parent charitable group and parent charitable company in accordance with the ethi¢al requirements that are relevant to our aLFdit of the financlal statements in the UK, including the FRCS Ethlcal Standard, and we have fulfllled our other ethical responsibllltles in accordance with these requirements. We believe that the audSt evidence we have obtained is sufficient and appropriate to provide a basis for our opinlon. Conduslons relatlng to golng concern In auditing the flnanclal statements, we have concluded that the directors. use of the 80in8 concern basts of actountin8 in the preparation of the financial statements Is appropriate. Based on thé work we have performed, we have not identifièd any material uncertaintSes relating to events or conditions that, individually or collectively, may cast Significant doubt on the group or parent charitable group and parent charitable company's ability to continue as a Boing concern for a period of at least 12 months from when the original financial statements were authorised for issue. Our re5pon5ibilitles and the responsibilities of the dirertors with respect to 80ing concern are described In the relevant sections of this report. Other Informatlon The directors are responsible for the other information. The other informatlon comprises the information Included in the annual report, other than the financial statements and our auditor's report thereon. Our opinion on the financlal statements does not cover the other information and, except to the extent othernvise explicitly stated in our report, we do not express any form of assurance conclusion thereon. 19 Hampshire Cultural Trust Company number.. 08986225 Independent Auditorfs Report to the Member5 and Trustees In connectlon with our audit of the flnancial Statements, our responsibility is to read the other information and, in dolng so, eonsider whether the other information 15 materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appear5 to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material mlsstatement in the financial Statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing lo report in this regard. Opinlon on other matter prescribed by the Companles Art 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 flnantlal year for which the financial statements are prepared 15 con515tent with the financial statement5', and the Directors, Report has been prepared in accordance with applicable legal requirement5. Matters ofi whl¢h we are requlred to report by e)¢ception In the li8ht of our knowledge and understandin8 of the group and pèrent Charitable company and its environment obtalned in the course of the audit, we have not identified material misstaternents in the Directors, Report. We have nothing to report In respect of the followiftg matters where the Companies Act 2006 and Charitie5 Act 2011 requires us to report to you if, In our oplnlon.. adequate accounting records have not been kept by the parent charitable companyi or returns adequate for our audit have not been received from branche5 not vislted by us,. or the parent charitable cornpany'5 financial 5tatement5 are not in agreèment with the accounting records and return5, or certain dlsclosures of dlrectors, remuneration specified by law are not made,. or we have not received all the Information explanations we require for our audit,. or the trustee5 were not entitled to prepare the financial statements in accordance with the small companles regime and take advantaEe of the small companies, exemptions in preparing the dlrectors, report and from the requlrement to prepare a Strategic report. Responsibilltles of trustees As explained more fully In the Statement of trustees, responsibilitie5 set out on page 17, the trustee5 (who are also the directors of the parent charitable company) 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 directors determine is necessary to en?ble the preparation of financial statement5 that are free from material misstatement, whether due to fraud or error. In preparin8 the flnancial statements, the trustees are responsible for assessing the group and parent charitable tompany's ability to continue as a going concern, disclosing, as applicable, matter5 related to going concern and using the going concern basis of accounting unle55 the trustees either intend to liquidate the group and parent charitable company or to cease operations, or have no roalistic alternative but to do so. 20 Hampshlre Cultural Trust Company number,. 08986225 Independent Audltorfs Report to the Members and Trustees Audltor Responslbilities for the audlt of the finan¢ial statements Our oblertives are to obtain reasonable assurance about whether the financlal statements as a whole are free from materi?1 rnisstatement, whether due to fraud or error, and to issue an auditorfs report that includes our oplnlon. Reasonable assurance Is a hSgh level of assurance, but Ss not a guarantee that an audlt conducted In accordance with ISAS IUKI w511 always detect a material misstatement when St exlsts. Misstatements can arise from fraLsd or error and are considered material if, individually or in the a8greB3te, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularltles, Including fraud, are instances of non-compliance with laws and regulations. We design procedures In1Sne wlth our responsibilities, outllnèd zbove, to detect material misstatemènts in respect of irregularitie5. Including fraud. The extent to which our procedures are capable of detectln8 IrregularSties, inclLsding fraud is detalled below. As part of our audit planning we obtained an understanding of the legal and regulatory framework that Is applicable to Hampshire Cultural Trust, gained through appropriate audit engagement team selection lensurlng competente and capability to recognise non-compliancel and discussions with management. This covered any knowledge or evidence of actual and potential Iraud, litigation and claims, whlch was followed up with corroboratlve audit review work. As part of OLsr plannlng procedures, we assessed the rlsk of any non-compllance with laws and regulations on the group and parent charitable compan￿5 ability to continue trading and the risk of materSal misstatement to the accounts. Based on our Ltnderstanding of the group and parent charitable companvi we identified the principal risks of non-compllance with laws and regulations. We consi(iered the extent to which non-compliance wlth these laws and regulations may have a material effect on the financial statements. We also considered those laws and reBulations that have a direct impact on the preparation of the flnancial statements such as The Companies Act 2C(J6, Charities Act 2011 and relevant tax legislation. We also distussed with management to what extent the business is exposed to fraud- either inherently because of nature of operations, assets or because of weaknesses in iftternal controls. From these discussions we have evaluated management's incentives and opportunities for fraudulent manipulation of the flnancial statements. The key incentive identlfled is to improve the position of the group and parent charitable company to potentlal funders and we determined that the principal risks were related to the overstatement of surpluses, elther through overstatin8 revenue, understating expendlture or mana8ement blas In a¢¢ountSng estimates. 8ecause of the inherent limitatlons of an audit, there 15 a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements. This risk increase5 the further removed non- compliance with laws and regulations is from the events and transactions reflected in the financial statements, as we are less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement due to fraud is hiBher than the risk of not detertln8 one resulting from error, as fraud may Involve deliberate concealment, collusion, omission or mlsrepresentation. Based on this understanding we designed our audSt procedures to identify non1151bililie¥. This description forms part of our auditor's report. Use of our report This report is made solely to the group and parent charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and to the charitable company's trustees. as a body, in accordance with Part 4 of the Charities IAccounts and Reportsl Regulations 2008. Our audit work has been undertaken so that we Might state to the charitable cornpar¥y's members and its trustees those matter5 we are required to state lo them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responslbility to anyone other than the charltable company and the charitable company's members as a body, for our audit work, for thi5 report, or for the opinions we have formed. Paul Giessler FCA (Senior Statutory Auditor) PKF Francls Clark, Stètutory Auditor Hitchcock House Hilltop Park Devizes Road Salisbury Wiltshire SP3 4UF 5 Decernber 2023 22 Hampshire Cultural Trust Company number: 08986225 Consolldattsd St•t*ment of Ilnanclal 4rtlwtiis Iln¢orporatlni the lncomeand *xpendltur• account) Rth.Stst•d Unr¢strlrted Funds Re-stated Re&trftt•d Funds R•llSt4ted Unreslrl¢tqd Funds Restrleted Total 2023 Totsl 2022 Nothb In¢ome from.. Grants and d¢natlon5 Ineome from charltable actlvlt1¢5 Income from other tradlng 3,358,651 L644,157 1.593,820 9,251 4,952,471 1,653,408 3,922,676 1,044,IOd 2,115,230 840 6,037,906 1,044.944 - Sncom¢ of tradln8 company Investment Income Other income 1.204.194 8,687 538,056 1.204.194 8,687 549.896 8lQ,267 6,384 371,405 8lQ,267 6,384 376,826 11.84a S,421 Totil In¢om• 6 753,745 1.614 911 8,368,656 6,154,836 2,121,491 8,276,327 Exp*ndltur8 on.. Cost of ralslng funds.. 251.055 1,133,485 10,431 261,486 1,133,485 206.fjQ4 475.428 18.757 225,361 475.428 Expenses of Tradin8 Company Expendltur¢ ¢n ¢harltabl¢ •¢tlvltles 6,257,184 1,373,474 7.630.658 S,401,e53 I,S2S,660 6,926,713 Yotil expendllur• 7,641 724 1.383,90S 9,025,629 6 083 085 1 $44 417 7 627 502 Net Ineome I lexp?ndlturel 1887.9791 231,W6 1656,9731 71,751 S77,074 648,825 Transfer between funds 190,0001 90,OQO Net movement In fvnds 887 979 231,D06 656 973 18,249 667,074 648,825 Re¢on¢lllaiion of lunds: Total funds brought ferward 1 739 466 1.255,971 2,995.438 1757 715 588 898 2 346 613 Totsl fund> c•rrl•d forw4rd 851,487 1486,978 2 338.465 1 739 466 1255,972 2,995,438 All rècogThi5•d 8Hins and Ios5e$ are Includèd th¢ statement of flnantlal actlvltles. All transactlons ar@ derlved from continuin¥ activities. Deto115 of restètementto 2022 amounts are prO￿ded In Notes 2 and 28. The note5 on pages 27 to45 form Inte$r¥l part of these fln4ncial 5tèttments 23 Hampshire Cultural Trust Company number.. 08986225 Consolldated Balante Sheef as at 31 March 2023 Re-stated 2023 202Z Notes Fixed assets Intangible assets Tangible assets li 12 764,887 764.889 313,631 313,633 Current aswts Stock Debtors Cash at bank and In hand 14 149,413 1,291,506 1,255,325 2,696,244 130.206 1.531.304 1,866,537 3,528,047 15 18 CMdltor5.' amounts falling due wlihin one year 16 11,122,668) 1846,2421 Net turrent assets 1,573,576 2,681,805 Net assets 19 2,338,465 2,995,438 Funds Unrestricted funds.. Gener21 unrestricted funds Designated funds 19 851.487 1.414,466 325.000 21 851,487 1,486,978 1,739.466 1,255,972 Restrlcted funds 20 Total funds 2.338,465 2,995,438 The flnanclal statements are prepared in accordance wlth the 5peclal provision5 of Part IS of the Companles Act 2006 relating 10 small companies. The flnanclol statements were approved by the board on 24 November 2023 and signed on its behalf by.. Lctsi AC Lovell On behalf ol the board of trustees The notes on pages 27 to 45 form an Integral part of thèse flnancial statements 24 Hampshlre Cultural Trust Company number: 08986225 Trust Balance Sheet as at 31 March 2023 Rfrstated 2022 2023 Notes Flxed 35$ets Intan8lble assets Tan8lble assets Investments li 12 13 696,729 1,000 697,731 237,152 1,000 238,154 Current asséts Stotk 14 15 Debtors Cash at bank and In hand 1,323,567 1,249,559 2.573,126 1,508,942 1,864,865 3.373,807 Credltors,. amounts falllng due wlthln one year 16 11.011,7171 1952,9381 Net currènt as$et5 1.561,409 2.420,869 Net assets 19 2.259 140 2 659,023 Fund5 Unre5trirted funds.. General unrestrlcted fund5 Desi8nated fund5 19 21 772,162 1,078,051 325,000 772,162 1,403,051 Restricted funds 20 1,486,978 1,255,972 Total fund$ 2.259 140 2 659 023 The financlal statements are preparèd in accordance with the 5peclal provSslons of Part 15 of the Companies Act 2006 relating to small companies. The flnancial statement5 were approved by the board on 24 Ncvember 2023 and slgned tsn its behalf bv., AC Lovell On behalf of the board of trustees The notes on pages 27 to 45 form an Inte8ral part of these flnancial statement5 25 Hampshire Cultural Trust Company number; 08986225 Consolidated cashflow statement for the yeai ended 31 March 2023 Re.5tated Group 2023 Group 2022 Notes Cash tlows from operatlng activities: Net cashllow from operètSng activities 38,585 1135,7631 Cash flows from Invesli￿ artivities Bank Interest received Purchase of fixed a5Sèts Cash used In Investing activltles 8,687 1658,4841 1649.7971 6,384 172,2341 165,8501 Incroaselldecre85el in cash and cash equivalent5 in the year 1611,2121 1201,6131 Cash and cash equivalents at the be8inning ol the year 1,866.537 2.068,150 Total cash and cash equlvalents at the ènd of the year 1,255,325 1,866,537 Reconclllatlon of Changes In Resources to Net Cashflow From Operating Artlvltie5 Net lexpenditurellin¢ome for the year Depreclation Investment incorne and interest received Ilncreaselldetreèse In stock Ilncreaselldecrease in debtors Increaselldecreasel in creditors 1656,9731 207,228 18,6871 119,2071 239,798 276,426 648,825 139,012 16,3841 120,0831 11,133,491) 236,358 12 14 15 16 Net cashllow from operatlng artlvltles 38.585 1135,7631 26 Hampshlre Cultural Trust Company number: 08986225 Atcounting policies Charlty Informatlon Hampshire Cultural Trust Is a private charltable c¢mpany limited by guarantee and incorporated In En8land and Wales. The re8lstered tstflcels Chllcomb House, Chllcomb Lane, Winchester, Hampshire, S023 8RD. ampshire Cultural Trust rneets the deflnltion of a public benefit entlty ursder se¢tlon 34 of FRS102. Assets and liabllitles are InStially recognised at histtsrical cost of transa¢tlon value, unless otherwlsè stated In the relevant accountlng pollcy. The prlnclpal oblectlves of the charity are detailed in the Trustees, Report. Basss of prep#r#tlon of Ilnanclal statsments The flnancial 5tatement5 have been prepared In accordance wlth Accountlng and Reportlng by Charitie5'. Statement of Recommended Practice applicable to charitie5 preparing their accounts in accordance wlth the Financial Reportlng Standard appllcable In the UK and Republlc of Ireland IFRS 1021 issued on 16 July 2014 la5 updated through Update Bulletln I publlshed on 2 Februar¥ 2016 and bulletin 2 publlshed 5 October 20181, the Charltles Act 2011, the Companlos Att 2006 and UK generally accepted practice as it applies from l January 2015. Consolidated fSnanclal Statements have been prepared In respect of the charltable company and Its wholly owned subsidlary, Hampshire Cultural Trust Trading Limited. The Consolidated Statement of Financial Actlvitles intludes the results of Hampshlre Cultural Trust Trading Lirnlted as 51ngle line Items. The consolidated balance sheet include5 the net assets of Harnp5hire Cultural Trust Tradlng Limited on a Ilnè by Ilne basls. Income All incoming resources are included in the statement of flnancial actlvStiès when the company 15 legally entltled to the Income and the amount can be quantlfied with reasonable accuracy and it is probable that the Incorne will be recelved. Voluntary income and donatlons are normally accounted for on recelpt. If a grant or donatlon Is subject to condltlons that requlre a level tsf performance before the charlty Is entltled to thè fund5, the income Is deferred and not recognised until either those cgndition5 are full¥ met. or the fulfilment ol those conditions is wholly withln the charlty's control and It Is PTobable those condltlons wlll be met In the accountlnR oerlod. Income from Investments is Included In the year in which it is recelvable. Le8acles are Included when the charity Is advised by the personal representative of an estate that payment wlll bè made. or property transferrèd, and the amount involved can be quantified. Income from the sale of tlcket5 lor courses and tuition, performances and events are recognised In the perlod In which the event occurs, 27 Hampshlre Cultural Trust Company number: 08986225 Admisslons Income is recognlsed In the period In whlch the initial vi51t occur5. Income from lettlngs and room hire is recognisod on date of invol¢e and in adv3nce of dato of hire. Deposits are non refundable and recognistd on receipt. Expenditure Expenditure Is recognlsed on an accruals basls, as a Ilabillty Is Incurred. Expendlture Includes any VAT which is not fully recoverable, Basls ol allocation Costs ol raising funds relate to those costs incurred in encouTa8in8 people and organlsatlons to contrlbyte linlnclally to the trust's work 3nd the expendlture relatSng to the trading cornpanv. Charitable expendlture Includes expenditure asSOClated with Public Pfogramme5, Collections, Venue5, Bu5ines$ Development and Projects. Tan8lble fixed a95ets Depreciation is prf>vided on a strai8ht Ilne basis, at the following annual rates In order to write off ¢a¢h asset over Its estimated useful lif¢. Plant and Machinery Fixtures and Flttlngs Leasehold irnprovements Computer Eouipment 25% 25% io% 33,3% A proportionate amount of depreciation is charged In the year of atqulsltlon. Stotk Stack relate5 to Item5 held for resale and is valued at the lower of c95t and net realisable value. Funds General lund5 are unrestricted and arc available for use at the discretion of th@ trustee5 in furthorance of the gereral Dblectlve5 of the charlty and have not tseen designated for other purposes. D*si8nated funds are determined by the trustees as being unrestricted funds held lor specifie purposes, and are committed to future spend as agreed at board lovel. Restrlcted funds are to be used for those 5peclfied purposes as laid down by the donor, Direct cxpendlture and a5SOClated overheads which meets the criteria 15 charged to the fund. Ro5tricted funds for the purchase of fixed asset5 are credited to restricted income when receivable. DeprEclatlon on the flxed assets purchased with such grants is char8ed a8aln5t elther the related restricted fund or against the capltal depreciatlon reserve, where the related projett has been completed. 28 Hampshlre Cultural Trust Company number: 08986225 Leased assets Rentals applicable to operatlng leases aré char8Èd to the Statement of Financial Activitles as Incurred. i.io Flnanclal Insiruments The trust's flnancial asset5 and liabilitie5 consist only of basic Ilnan¢lal instruments, including cash and cash equlvalents, short term Investment5, trade and other debtors, trade and other creditors and accrued expense They are initially reco8nised at transa¢iion price or value, including transatfi¢>n costs, and are sub5equentlv measured at their settlement value. The fair value ol these Items approxlmate their carrying value due to thelr short term value. Financial assets are assessed for Indicators ol impalrment at each reporting date. Unless otherwise noted, the trust is not exposed to Sl8nificant interest, forelgn exchange or credit risk arisin8 from these Instruments. i.ii Termlnatlon beneffts The trust recognlses a Ilabillty for termSr¢ation beneflts at the polnt whère It 55 commltted to makin8 the paymènt5 In return for employee redundancv. 1.12 P*nslon t05ts Contrlbutlons are made to a deflned contrlbutlon Scheme for those employees who were not employed at the time the trust wa5 formed. These pension costs are Charged to the Statement of Flnancial Artlvltle5 In the perlod to whlch they relate. Retlrement benefits to employees of the trust who transfèrred from Hampshire County Council and Winchester City Councll IEli8lble Employees) are provided by the Hampshlre County Coun¢ll èdmSnlstered Local Government Pension Scheme Ithe'scheme'l. This is a contributory defined beneflts scheme. The Comrnercial Transfer Agreernents ICTA51 between Hampshire County Councll. Wlnthe5ter Clty Councll Itogether, the'counclls'l and Hampshire Cultural Trust state that the Counclls shall rernain liable for the deficit in the fund in respect of benefits accrued up to the transfer date of l November 2014. The trust Is responslble for paySn8 all contribution5 due to the scheme in respect of the Eligible Employees, and any other sum due to the scherne in respect ol the Eliglble Employees, includlng any deficlt arlslng in respect of the benefit5 accrued by them while erHployed by the trust. However, according to the CTA5. the Councils fund or reimburse the trust for ny contrlbutions rnade and defitits pald by the trust whlch relate to the Counclls, 1Sablllty perSod of 25 years from the date of trènsfer, or earlier if Councll fundlng ceases, unless contributions or other payments result fT¢m matters wlthln the ¢ontrol, Influence or responslbllity of the trust. In accordance with FRS 102, while the trust remalt)s vlrtually certaln that the Counclls wlll relmburse the expenditure required to settle its deflned benefit obligations, it reco8nises Its right t¢ reimbursement a5 a separate asiet. tfeatln8 It In the same way as plan assets. The deflned beneflt obllgations in respect of benefits accrued by the Eligible Employees since the transfer are presented net of amounts relating to changes In the carryin8 value of the rlght to reimbursement. Addltional informatlon Is given in note 22 on the contingent Ilability that exists. Contributions and tsther payrnents made related to the Eliglble Employees, together wlth relmburslng 8rant income and other receipts from the Councils, are accounted for in the perlod in which they arise. 29 Hampshire CLtliural Trust Company number: 08986225 1.13 Jud8ements and key sources of estlmatlon uncertalnty Tangible flxèd assets are depreciated over thelr useful lives, taking into account residual values, where appropriate. The actual lives ol the a55et5 and resldual value5 are assessed annuolly and may vèry depending on a number of lactOT5. In re-as5es5ing asset lives, factors such as technolo8ical innovation, product life cycles and malntenance pro8Tammes are taken Into consideration. Residual value 3sse55ments consider issues such as future market condltion5, the remalning life of the asset and projected disposal values. The carrying amount 15 £313,631 12021.. £380,409). Grant income is Tectsgnised when the trust is ¢ntitled to the income, In some cases. this requires judgement based on available informètion related to the 8rant award and th￿ aF>p1￿Cation for the gra￿t as to when entitlement arlses. Th15 may be on ￿ssUe of the award letter, but In other cases income recognition rnay be deferred until a pre. determined budget period, until other conditlons not necessarily in the trust's control are met or unt11 varlous performance criteria are achleved. Of rotal grant Incorne awarded In the year, no income has been deferred at 31 March 202312022 Restated.. Éni11. AccrLsed Grant Income uf £574,51812022 Re-stated.. £564,579) Is Included in the balance sheet at 31 March 2023. The trustees consider. apart frorn the above itom5, going concern referred to below and the contin8ent liabllSty referred to In note 22. thèt there are no other mèterial areas of judgement or estlmation uncertainry. 1,14 Golng concern The irustoes adopt the goin8 concern basis in prepaTing thè Trustees, Report and financlal statements. This Is based on the rea50nabl@ expectatlon. based on current trading performance, forecasts and projectioni. ornrnStted funding from core lunders and ongoin8 negotiations with those funders, and taking into account reasonably foresoeable change5 in income and expenditure, that the charltable company has adequate resources to continue to operate lor the foreseeable future. Management has produced forecasts lor these periods, which demonstratt that with sensible and progressive actions there are adequate reserves to continue to op¢rate lor the loreseeèble future, and for at least 12 months from the date DI thls report, The estimates and assumptions Used are based on historical experience, contractually committed income and ¢hanges expected based on ne8Otiatlons wlth key lunders. 1.15 Investments Interesis in subsidiaries are Inltially measured at cost and subsequently rneasured at cost less any accumulated Impairment losses. The investments are 455e5sed for impalrment at each reporting date and any Impairment105ses Of reversals ol impalrm@nt losse5 are re¢ognlsed Immediately in profit or loss. 30 Hampshire Cultural Trust Company number.. 08986225 Gv•Trts **d donatlons In accordante with the Mana{emeni 4nd Fundlng A&reemenrs In place. Ihe tw$t re¢elw% ènhu•l t￿enueSr3nts from H4mpshlre C¢uniy councll and Wln¢hosterClty Councllto Support the dÈllvery of an art5 and mus*um$wrwcÈ au05s Hampshlre. Ourin8 the y•ar th• followinÈ Èranl54nd donatlons ww¢ weiVtrI.. UnMJtrfctid 2Q2J Tot*1 2011 TWI ment H4mpshlrecayfiwcoun¢ll itrrco w1n¢h@￿er¢1tyCCutKll IWCCI 2.502.480 298 k44 Z.800.624 2,SQ2,419 2.271480 75.ow 2.J47.480 19B.144 75.rthi 2,615.624 75,000 75.000 2,875.614 2,$70.624 QthvLocilAuthorttyiNnts'. Ind Deanè Borouihcoundl GNport 8oroughCotsndl 3.600 143, 183,6( 60,000 40.740 iao,000 44,224 L5,1 183.600 60.0 40.740 100.ooo 44.224 15,fy 14,410 ILYI,r 14,410 l(K).Q(M) 44,124 15,000 E.000 dlS.304 Boyrn•moyth, (hrlst¢hJrch andPDoleCtyun¢ll 15.oao i.ooo 418.304 445.564 445.564 227,3QQ 559.724 217,300 559.714 1.061.8ts5 52,607 95.5(Kl 1.1$7,300 69.363 N•tlon41 LOtt•ryHorli4• Fufid Job RIlent￿ll Srhemt Gov+rnment BuslThE5S Gr4ntS 78.217 Th• Engprt Wgtlord Motor Emeryency ExltArts 200,aao 200,000 37.9DD 37,9(N) 4D,QOO 49,000 64.985 CC. Wessex Dance A¢4dpmy $4,985 61,3 4>,144 7).891 62.5 43,148 73,891 75,282 103.514 fjospors eomugb Council& H5HAZHistod¢ EDgl4nd 1storl¢En8lond vla Gosport Bgrouih toundl 109,514 46.154 45,154 75,000 ?S,L 5pyth W4siorn Rollwav Brlllsh MtsseJm- po#a6le Antlqvrtlu scheme io,ooo 74.785 40.SÈJ 31.780 7,110 7,967 LO,QPO 24,785 40,683 17,754 58.267 8.416 58,267 1.4éÉ Mu5eumA55a44llor- E$mttFilrb•lrn Coll*(tlo HMP Wlncheiter Art Fund Sydtr Foundatl4n Th•Faylt Fountsuo Firnham M•thiDI5.N4prentlce5hlp FundlThs 40.000 so,000 25MOO 15.iw 60.000 L3.408 35.629 489 $79 1771,098 10,518 .525 39,742 14gs s42 Tllt418rnnt 512 5 2Y7 707 564,579 S.B612t6 UnrwtY5tt•d *Jhds R•itri¢tsd 1022 AdJ"u#trn•nr 2021 YotDI To OcMtIon5 OonatiQTr51£25,0th?nd bplowl 9,569 105.308 114,877 48.124 164,1fy8 161.106 lQ5,30 Yot4ltri•ii•nd d¥rFafi•n$ 1,59IJ20 4,95I47I 4n,a27 564379 6 037 906 31 Hampshlre Cultural Trust Company number., 08986225 Prloyyear R•5tat•metrt ThEtiusteÈshave revlowed the auouniln&treatment ol trrtèln giants ID Ihe¢urr8ni ¥¢ar and the trust hasperform¢d a thorgush revipw Dlltsgrant income iPCOEnillon tritprla and ariountln£ irealmènl In IhÈytars ended 31 March 2021 to 31 March 2023. These were peritsd% inwhlch Arant Idenlllled wh¢re entiilemtrnlwol determlnedto have tstcurr*d In the yeRr ended 31 March 2022 but had been reco8nlsEd In thoyear ended 31 M?rch 2023 ArcDrdlhely, Erant and donatlon Incomefor Ihpyearended 31 March 2U22 ha5 be.en re51itcd b¥ the amoun15 Shown In the table above. This h•s hadA con5oquent imPACton bccruod iniome in Oebtors as3131 MarEh 20?2, 5hvwn In note 15, Eind R¢5triCte4 Fund5 35 at 31 Mar¢h 2021, shown in 20. The Impèrt ol these adlustmehis h4$ be¢n includèd w￿h1Th ihptornparJllv¢ 3mount4 4hown in tho Ctsnsolld3ted Statement year ended 31 Mirth 2022 hisalso been c?rrect@d.The impact ol this re5tateinent has a150 acttsunted for In thE restatvd ton)paritlv bal3nce5 ID notcj 20. Tlierewa5 ngollEti ol thi5 Item on nel InwmE lor ihL' ¥t￿al end￿d 31 Marih 2022. The aggregaic Impact vf these adjusiment5 Intome Irorn Ch1￿*•bIl artlvltles fte¥trl¢tp ZDZY 1012 Admlssions Workshops •ndclas5es J,141,066 164,780 333.657 1.141.Q66 174,Tr31 333.657 4.654 780,654 122,173 141,215 902 9,251 eookiThE foe$ 1 653 408 l.D44.944 INtom• ind expqndtturA from tradln8 Idlvltr4sof subsldlad•s FoIIoWin8 Post-pandprnit roiurn tonormal trlldin¢ and8rn￿h In tradln8 cornp¥ny proflts, a mèndiemenl fee h45 bven rhAr8¢d bythe Mirth 2023 is Shown btsIt￿. finan(IRI 514tomont% have been Illed wlth Companies Hou5F, 32 Hampshire Cultural Trust Company number: 08986225 In¢offla arbd axpendlturélrom trad1nia¢tlvl￿Os 015ub51dlarl(tS 1025 202Z TURNOVER 1,204,194 709,381 Costol 5a1¢5 491,441 342,426 GROSS PROFrr 712,753 366,955 Admlnlstratlve expenses 1642,0441 1153,OQ21 Other operatlnl Income 100,886 Operdtln8profitanLI prollt belore tsxation 70,709 334,839 Taxon proflt ProfttlOrth•ftMn¢l•l￿Ir Amount4lftod to Hampshlre CulturnlTrust 1327,8041 18g,0911 R¢talned proflt fgr the plrlod 1257,0951 245,748 Aetalned proflt bmu8hl forward 336 413 Retslned profit ¢arfled lorward 79,318 116A13 Assets 234.548 400.238 Net 15Mt5 J37 18 Called up 4rdlnary share tsp￿31 Profli and10s5 Bccount 1,000 336,413 79,318 C4pkal and ve5erves a37 413 202J iuzi Inve5tm¢nt Income All In￿stment Income In btrth 2023 and 20221$ ¥nresir5tted, 33 Hampshire Cultural Trust Company number: 08986225 othèr Irrtomè 2021 22 Collertlonsand conserviiion Income 1,300 24.6B2 165.279 168.780 2,083 86,256 139,8lJ 134.d50 376 826 Gift Ald and othef lèx rellels othtrr 549.8% wès un*strlcled. F￿￿drIll￿l*nd pwblklty luTrJs Total T4t•l 251 10.431 261486 22S 361 FundralSSnB and publlcltyCD&lS In¢l￿e the cust ol marketinltht progrgrnme DI eventsicrD55 IhevènuEs. Ro-5tated Unre5trlct hjnds Rt4Utod R•¥irtcEod ndi UnT95rdttqd R4>tricted 2029 rotsl 2022 Publlc proirammes 167,799 510,879 4,072.182 1,458,541 47,782 6 Z57,184 167,799 51U.879 4.071,182 L,458,542 1.421.2b6 7 630.658 116.198 a84,925 2,￿0,715 1.800.065 30,046 5 401053 126,198 484.02S 2,960,715 1.800.069 1 555.706 6 g26 713 Venue5 Business dev21opmeni 1 373 474 1 373.474 1.525 E60 1525 660 buslne5s Oeyelopmeni ifidude5thecosts of central functlon5 5Uth J5 marketlnE, fln)m￿. HR and Ir, In iddltlon io the le8dersbiptE8m, Projects Include Ihe co$t50f the tru5t'5 SDcial Ith￿¢1 proeramm*s, rnalor museum refurbishment and pl)TrThinE lorfuture cultural Investment%. As ielerred lo In Trote2, the allocation between arnDUnts ro¢orded beiwtt¢iii Unro5trlcted and Reslrict?d lund atnDuntg has been festaied for the yEar ended 31 March 2022, wlth Unrestricted luDd Jmtsunt5 roducod by £37,832 and Re5tncied lund amoun15 increase by the s)mt3mount. Th15 ?ntlrEly re￿1*￿ to Projeci ¢ostS in tho tableBbove. 34 Hampshlre Cultural Trust Company number: 08986225 Audigarj, i*mun•r•iion ZQ21 Audltt••s.Truyt Audltfees- Trading subsldlary In •ddltlon. fee5forotherseNlces provSdtd byaudltots amounted to E3.15012022 £1,350>. whl¢h In5,307 185.038 2,400,668 138,595 1.127,37Y 31J,691 3,521047 1.500.937 2,696.244 1,132.6fj8 85LO87 846.242 1,7JgMfj6 1,486,978 2.338,465 1,2SS,971 2,995.438 Fund balan¢•$ •t 31 March are represented by.. Rtrst•t4d Unriltrtcwd flejtrlcted fvn Z925 Tot•1 R¢¥lrl¢t*d Iuhd* 2022 Tor41 fund5 Intan8lbleflxèd assets Tanglble flxed #¥sM5 Ihvestment as5et5 Curmnt •ssets 405.050 I,oDo 1.377.819 291,671 696.7?9 108,559 1.000 2,146,418 128,593 137,15Z 1.000 3,373,807 1,195,307 2,573,126 k,127.379 1,4B6971 1.259,140 1,135,972 39 Hampshire Cultural Trust Company number: 089862Z5 Funds iM*dAii*t Iw4NlniYfD ￿1￿￿•YVD 29,25 J,647 3,U7 SW ,5fj1 IP,027 g,yJ 209.617 Jn ¢rAI¥￿￿1#*lott1￿Ewld 25. 1&2 ID,659 6101 ?5,￿￿) erfU￿￿nI4 ?5,L YttpiSAI)¢rf￿1 75 17.1 7,ia I￿.34y 37,650 67,916 LIWJVI The￿￿tIldeprer1Iwo￿ rESprvèiepres*ntsre5trlctodu4Tht5fècÈiv*d tofinanco copltal eippndlture.Ihesrnntshav4 been r•EggnlsRd a5 r¢siritt*d 40 Hampshire Cultural Trust Company number: 08986225 51.mw 29.1 JN7 g0.UDD 7x196 io.oE 561 56J is,aoo so.a IISDD 41.iaq 315 .fjI7 9.104 135 .Eso 917 2.lJP I.￿$ aal 11918 43.14? 45,MO ,ooD $4.> 7Q,99q 219 7.5 1?.95 J& IF.OU8 74lJ5 ilir¢KytquMII 7,2 51.?4Q 17.5# ?Jo? JQ3,695 5,llllS p4a J.5J9 17. 10,rrt 7IUOD 17.gQD JS5 ,aoo Ixi 17,9J5 IL15fj J.1¥ 1s,ugD 2S,000 iomo 21.57Y ?a254 T￿[ Llll,>X l¢infiutolyTIw5fiit4t¢m¢TrtshMbMn mpthwifDni IMomÈBRdexyndliwÈ¢ThthwttibK*i¢iilrytW(¢rlfr¢yEirrhd￿j[M￿¢h2o22 Trirnwclonr•ilrlc¢•d 41 Hampshire Cultural Trust Company number: 08986225 ¥DrLlthupln4E4rnllN 42 Hampshire Cultural Trust Company number: 08986225 21 Oe51 n•t•d Funds 2023 2022 Wlnche$tèr Anil¢-Saxon experlence 3zs,wo 325,¥JJQ Wherttthe trustees hav& agreed at board levEI to commit to expendkure from unrEStri¢tÈd funds, thèse monies hive been designated $0 as to dlstlnÉuish them from funds held for core operating activitles. In 2022, the boèrd commltted to Invest In the developm&nt of 8 new oxhibitlon In Wlnchester. Workln6 In partnèrship with virtual and augmented realty 5perl¥llsts, the new attraetion opened in November 2022. All dtSl8naied funds h4ve been spent ?t March 23, 22 CommFtm•nts •nd cot)tlngent118bllltl4$ Nelther the trust northe group had •nycapltal commltm@nt5 at 31 March 202312022.. nil). A5 referred to In note 1.12, the trust h45 Participated In the Hampshire Penslon Fund, a Loc31 Government Penslon 5eheme, as the employer of Ell8lble Employees 51nce thelr transfer to the irust from the Councll$ (Hampshlre County Counell and Wlnchester Clty Council) In 2014. A¢¢¢rlin8 to the cfAs (Commerelal Tronsfer Agreements) between the trust and thÈ Counclls, the trust Is re5ponslble for paylng )11 employer contrlbutlens due to the Fund In respect cf the Eli4ible Employees and any other sums due. Includln8 any defitit &rlsln8 In re$ptct of beneflts accrued by them whlle employed by the Trust. However, the Counclls have funded or rtlmbur5ed the trust for all Such obli8ation5 paid since the transfer Ind obliged to ¢oniinue to do so, èccordinB to the CTAS, for a ppriod of 25 years from the date ottransfér or untll fundln8from the Counci15 ceèso, If earllei, su lon8 as the tru5¢ meet5 rertaln contr3ciual condStlons. Accordingly, Ihe trusi has not 4c¢ounted for the Fund as a deflntd beneflt scheme. but ha5 treated It as a deflned contrlbutl¢n s¢heme for accountlnl purposes. At presènt, Eligible Émployee mèrnbership Includes 38 active rnernbers, 59 delorred pen5ioner5 and 27 pensloners. In the cominB years the trust will need to confirm with the Counci15 how future pen51on oblS88tlons wlll contlnue to be reimburseiS in light of the remainin6 period covered In the CTAS and th2 expeaed changes in Fund membershlp over time. The trust will need to undeistand any ¢ontinBent Ilability •ri$in& tsking actU3rial advice as approprlate and determlnt future actlons that mèy tre f¢gulred to mltl8ate. Oper•tln8 leas•8 The trust has cperatln8 lease Commltments In re5PÈCt of the prop4rtles It mana8es ènd ¢perate5 frDm, and also In respert of vehicles whlch It operates. The museum5 and arts centres, and also the central office spaces are IéBsed from the founding rnembers and r>ther local 8uihorltl¢s. as a8re@d the Management FundinB Agreements. The lease terms Hre for 35 years and a peppercofn renrls payable. Thère 2r¢ 26 years remèlThln6 at thè balance sheet dite. There are future ¢¢mmltment5 of £29,458 atthe balance sheet date, relatln8 lo the remèlnder of the v¢hl¢le lease a8reements. In th15 flnanclal yeèf the trusl has token on an addlllenal lease, 5 ￿•r$ wlth 1 2 ye•r break clou5e. for 878 AO, The 8rooks Shoppln Centre, WSnchèster. 43 HarnpshSre Cultural Trust Compan¥ number.. 08986225 Z4 Related party tr•n58¢tlons Grantfundln8 recelved Irom Hampshire Country Council and Wln¢hester Clty Councll has been detallpd noto 2 and noto 20. Othertran5aCtion5 Wlth the Local Authorities deerned to be normal buslness transar.tlons dnd no $eparate dlsclosure Is requlred. 25 T•x4tlon All of the trust's Intomt Is applled for charllable purposes and is tli&refore ex¥mpt from corporation tax. The rrust's trading subsidiary l6 Ultlmat• controllir4 party The ultSmate controllln¥ party Is Ihe board ol trustees. 27 Funds hEld a$￿stadI8￿ trustee pn b¢half of others The tru5t15 thÈ custodion ol 3 number of propèrties Imusoums and arts centre51 and hislorlc £55Qts whlch aro held Dn behalf of cur foundlng members, Hampshlrecounty C9un¢ll and Wlnthoster City Council. ThcsL' a5set5 arp held soparètely from the tru5t'S a55ets and dre fully c8talo8ued with Modes, HImp5hl￿ county Countll Colle¢tlon5 In 2022.23, 9 total of d4 aiouisirlons, elther Individual oble£ts or a5501iated ¥roups of object5, werÈ made to the Hampshlre County Councll museum collection5. The majorty of atqulsltlons were made a5 Bift5 to the ¢oun¢il at no cost. Two itsms were purchased, archaeolo8ical Stems acqulred rhrough the Treasure procegs,WQrth £270 ith total. 7 objec15 or groups ol objects were d15posed ol from the 1ccess￿on￿d collettlon5. all of which were a550Clllted wlth the 50clal hlstory Wlnch¢st¢rClty Councll Colle(tlons In 2022-23, 3 total of 24 acqulsltlon5 were malÈ to thts WINchesier Clty Councll museum ¢olleollons. The m3lorit¥ of items were made as glfis io the cguncll at no cost. Only one Itom was ac4ulr*d by purchase, worth E40. l oblect was removed frorn the itCÈS51onÈd collef.llon during the year throuBh the terminatlon of an indefinite103n. 28 Prlor Y•orAdlustment DurlnE 2022-23 a prior year adlustmentW•s made in rospect of atcrued grant Sncome not prevlously reco8nSscd. and expendlture mls-allocited between resirictgd and unrostricted funijs. The effLJCt Of this Is outllned bolow.. al Accounting Policlés-the provlously 51ated policy was updated for revlwd deflnition of timing of Incomo rEitrgTrition. bl Reconclllaiion ol reserves adiustmenls to prcvlously reporled reservos at the end ol the compar3llve PEFlocl afe utllned in the tablfy below. 44 Hampshire Cultural Trust Company number: 08986225 Group Chailty Resèrves at 31 March 2022 2.430,859 2.094,444 Adjustment In rèspect of accrued 8rant income 564,579 564,579 Adl for mis-allocatlon of e¥pendlture IRe5trlctedl 137,8331 137,8331 Adl for mls-a11ocation of expendlture Iunrestrlctedl 37.833 37.833 Reserves as Irestatedl 31 March 2022 2 995 438 2 659 023 cl Reconclllatlon of comparatlve period income and expendStUTe Is outllned in the table below. Group Charliy PrÈvlou51y reported surplus/ldefl¢itl 84,246 12SO,5921 Adlu5tment In respect of accrued 8rant income 564,579 564.579 A41 for mls-allotation of expenditure IRestrlctedl 137.8331 137,8331 Adl for mls.allocatlon of expenditure Iunrestrlctedl 37,833 37,833 Surpluslldelicltl la5 restated) 31 March 2022 548,825 313,987 45