OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2020-12-31-accounts

Federation of British Artists Limited (The)

Report of the Board and Consolidated Financial Statements

31 December 2020

Company Limited by Guarantee Registration Number 683275 (England and Wales)

Charity Registration Number 200048

Contents

Reports
Legal and administrative information 3
Chairman’s foreword 4
Report of the Board 5
Independent auditor’s report
to the Members 21
Financial Statements
Consolidated statement of financial
activities 26
Balance sheets 27
Consolidated statement of cash flows 28
Principal accounting policies 29
Notes to the financial statements 34

The Federation of British Artists Limited 2

Chairman’s foreword
Directors and Trustees The following trustees and officers were in office
during the year and since the year-end:
Alastair Adams RP
Linda Alexander ROI (appointed 6thOctober 2020)
David Brammeld RBA
Jeannette Corina De Lacey PS
Eela Devani
Jonathan French
Jonathan Glasspool (Chairman)
David Glazebrook (appointed 6thOctober 2020)
Robin Hazlewood RI
Geoffrey Huband RSMA (appointed 6thOctober
2020)
Nicholas Pollard SWLA
Alan Power HH
David St John Rosse RSMA (resigned 6thOctober
2020)
Benjamin Ward NEAC (resigned 3rdDecember
2020)
Executive Team Clare O’Brien (CEO)
Amy Huntington (Head of Exhibitions and Events)
Eamonn Bambury (Director of Finance and
Operations)
Auditor Buzzacott LLP
130 Wood Street
London EC2V 6DL
Solicitor Stone King LLP
16 St John’s Lane
London EC1M 4BS
Investment Manager Quilter Cheviot
1 Undershaft
London EC3A 8BB
Banker Barclays Bank plc
Level 27
1 Churchill Place
London E14 5HP

The Federation of British Artists Limited 3

Chairman’s foreword

No-one could have anticipated 2020’s year-end out-turn caused by the global pandemic and the ensuing disruption to businesses, trading and for the FBA the cessation of exhibitions and gallery visits. 2020 began for the Federation of British Artists with three successful exhibitions, both in terms of quality and lively art sales. These were FBA Futures a showcase for recent graduates from art schools, the annual exhibitions of the Pastel Society and the Royal Society of British Artists. Then on 17 March, the doors of Mall Galleries closed until September. Having reopened five art society exhibitions were staged and only one was online only. The number of people wishing to commission a portrait was half the number in 2019, and inevitably visitor numbers were at 20% of the previous year. Unsurprisingly the income driver providing 50% of our revenue, gallery hire, collapsed.

Thanks to careful fiscal management in previous years, the reserves of the Federation were healthy and we were able to remain a going concern into 2021 despite a significant loss of income. Rent holidays from the landlord, Crown Estate; the government job retention scheme and business rates rebates have all contributed to a better end of year position than we anticipated.

We were not complacent during these periods of lockdown. As with colleagues in the arts sector and many others, we focussed much of our efforts on digital channels. We placed more art for sale online, improved the tools to purchase and provided more visual and artistic content. The appetite of artists wishing to show at our exhibitions continues to increase, with over 12,500 works submitted. Of course, this means the competition for selection to one of the art society exhibitions is tougher. We also looked at our infrastructure and processes and stream-lined these to improve the customer journey and create more efficient working processes.

The FBA enters 2021 feeling resilient, with ambitious plans to celebrate its 60[th] anniversary and 50[th] at Mall Galleries with its own art exhibition, Figurative Art Now . The nine art society annual exhibitions are underway having made a promising start with the Pastel Society and RBA shows. We will continue to prioritise art sales; create new attractive packages for gallery hire; improve our digital offering, and widen our reach internationally.

Figurative art and the artists remain at the centre of our operation - to be the destination of choice for figurative art.

I would like this year to thank Crown Estate and the Government for their support during this very difficult year for everyone. But most importantly, to acknowledge the loyalty and hard work of Clare O’Brien and the wonderful team at FBA, many of whom who have been furloughed for considerable periods of time.

We all look forward to welcoming you back to the galleries.

Jonathan Glasspool Chairman

The Federation of British Artists Limited 4

Report of the Board 31 December 2020

The Board of Trustees (the “Board”) is pleased to present the annual report and review of the Federation of British Artists (the “Federation”), together with the consolidated financial statements of the Federation and its subsidiary company Mall Galleries Trading Limited for the financial year ended 31 December 2020. This report has been prepared in accordance with Part 8 of the Charities Act 2011.

The financial statements have been prepared in accordance with the accounting policies set out on pages 29 to 33 and comply with the charity’s Articles of Association, the Charities Act 2011 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102).

Structure, Governance and Management

Structure

The Federation of British Artists Limited was established as a company limited by guarantee and is governed by a Memorandum and Articles of Association dated 13 February 1961. In October 2009 the company’s Articles were updated to comply with the requirements of the Companies Act 2006. These revised Articles have been filed at Companies House and with the Charity Commission.

The company, which does not have share capital, is registered as a charity with the Charity Commission and manages a large, modern gallery space - Mall Galleries - in the heart of central London.

There are nine member art societies, each of which brings a long and distinguished heritage to the Federation. Eight of these members are also registered charities: Royal Institute of Painters in Water Colours, Royal Society of British Artists, Royal Society of Marine Artists, Royal Society of Portrait Painters, Royal Institute of Oil Painters, New English Art Club, Pastel Society and Society of Wildlife Artists. The ninth member is the Hesketh Hubbard Art Society, London’s largest life-drawing group.

A Board of Trustees is responsible for governance and control of the company and meets at least four times a year. The delivery of the charity’s objectives and the Board’s policy-making decisions are delegated to the staff of the Federation under the direction of the chief executive officer.

Appointment of Trustees

Members of the Board constitute directors of the charitable company for the purposes of the Companies Act 2006 and trustees of the charitable company for the purposes of charity legislation.

The Federation of British Artists Limited 5

Report of the Board 31 December 2020

Structure, Governance and Management (continued)

Appointment of Trustees (continued)

The Board comprises a maximum of nine elected trustees, each of whom is recruited from and by the representatives of the nine member art societies of the Federation at a general meeting of the company. Additionally, up to six co-opted trustees may also be appointed. These trustees are recruited by personal contact for the expertise they bring in areas such as marketing, legal affairs and finance. Existing trustees carry out an assessment of each new governor’s skills in order to evaluate their potential contribution to the charity’s development before they are appointed. The members of the Board elect the chairman.

On election or co-option to the Board, trustees are sent a pack of relevant documents to enable them to understand their legal responsibilities as directors and to fulfil their responsibilities as trustees of the charity. This pack comprises the company’s Articles of Association, advice on disclosure of interests, financial statements and minutes of the board meetings for the previous year. All members of the Board receive regular information from the Director and Secretary on matters relating to the Federation and its future plans, as well as to more general matters relating to charity governance. Elected trustees already have a good understanding of the Federation and how it is organised through their membership of one of the constituent art societies.

All trustees retire by rotation every three years and are eligible for re-election to serve up to a maximum of six years continuously. After six continuous years of service they are not eligible for re-election for at least one year.

Organisation

The CEO is responsible for the day-to-day management of the charity and for implementing all policy decisions determined by the Board. An Executive team, comprising a Director of Finance and Operations and the Head of Exhibitions and Events, support the CEO.

While still retaining final responsibility, the Board delegates oversight of certain important areas of governance to three committees, each of which reports to and is accountable to the Board. These committees include the Finance and Budget Committee, which considers all matters relating to finance, the charity’s annual budget, investments, remuneration and risk management; the Exhibitions Committee, which monitors overall standards and evaluates all non-member exhibitions for their contribution to furthering the objectives of the charity; and the Education Committee, the function of which is to further the educational initiatives of the Federation.

The key management personnel of the charity in charge of directing, controlling, running and operating the charity comprise the Trustees, the CEO and the Executive team. Remuneration of the CEO and the Executive team is overseen by the charity’s Finance and Budget Committee, with reference to industry benchmarking. The same Committee advises and assists with personnel, recruitment and disciplinary issues when required.

The Federation of British Artists Limited 6

Report of the Board 31 December 2020

Structure, Governance and Management (continued)

Organisation (continued)

The Federation is an equal opportunities employer. Recruitment criteria and procedures ensure that individuals are selected, promoted and treated on the basis of their relevant merits and abilities. Where appropriate and possible, special training is provided to enable employees to progress.

The trading activities of the Federation are conducted by Mall Galleries Trading Limited, the charity’s wholly owned trading subsidiary, incorporated in England and Wales in July 2007 (registered number 06315430). The company has a licence from the charity to operate all sponsorship and retailing activities on behalf of the charity. It donates all its profits in the year to the Federation by way of Gift Aid.

Risk Management

The Executive team and Board have a strategy for the management of risks faced by the charity. Risk processes are kept under constant review and comprise the following key controls:

Through the implementation of these risk management controls, the Board has evaluated the main financial and non-financial risks to the organisation and is satisfied that the risks identified are adequately monitored and managed.

The key risks for the charity, as identified by the trustees, are described below, together with the principal ways in which they are mitigated:

Disruption cause by Covid-19

The impact of Covid-19 on the business has been significant, however the healthy reserves, cash balance and the government job retention scheme along with other expenditure savings have enabled the organisation to plan for a resilient future, whilst safeguarding the safety of the FBA’s staff and its visitors. Longer term budget planning, modelling cost-effective approaches to achieving the organisation’s objectives and reducing expenditure all contribute towards ensuring the FBA is a going concern.

The following is the impact on the galleries’ activities in 2020 and our actions to mitigate the risk:

The Federation of British Artists Limited 7

Report of the Board 31 December 2020

Structure, Governance and Management (continued)

Risk management (continued)

Mitigation:

Premises

The Federation operates from Grade 1-listed premises built in 1863. The age of the building requires us to undertake continuous monitoring for repairs and maintenance. Issues identified in the Fire Risk Assessment each year are assessed and prioritised for attention.

Water ingress and other faults arising within the building and, in particular, within the charity’s Learning Centre require frequent vigilance.

The unusable parts of the Learning Centre have been closed and impaired in the 2020 accounts. We ran FBA futures in the Gallery in January for young and emerging artists. We were able to run a number of Hesketh Hubbard life drawing classes in the Gallery when we were open, of course adhering to strict Covid-19 guidelines.

In cooperation with the charity’s landlord, security issues and fire alarm resources are monitored continuously.

The Federation of British Artists Limited 8

Report of the Board 31 December 2020

Structure, Governance and Management (continued)

Risk management (continued)

Gallery Operations

Regular servicing of the Galleries’ principal air conditioning and heating unit is required to maintain the operational efficiency of the system, installed in 2016.

A Major Incident Response protocol has been developed to manage incidents comprising an actual or suspected threat from inside or outside the premises.

The volume of visitors at all our exhibitions and events is monitored to ensure Mall Galleries complies with Westminster City Council licensing requirements.

Organisation & Governance

All pay reviews are evaluated for impact on operational and financial performance.

Staffing issues, including new appointments and where appropriate, disciplinary matters, are escalated by the executive team to the Finance and Budget Committee.

Reputational risks are evaluated at each quarterly Finance and Budget Committee meeting.

A comprehensive review of operating platforms and databases was initiated in 2017, to enable the charity to ensure compliance with the new and stronger controls over the use of personal data (General Data Protection Regulations).

Data security issues and controls are monitored and enhancements made to protect data from systems failures.

Finance

Cash flow is kept under continual review. Accounting systems are being upgraded with a view to introducing greater efficiencies to Members, Friends, artists, Gallery visitors and reporting to the Board. Achieving and maintaining the charity’s agreed level of free reserves is a priority monitored by the Board.

The combination of quarterly statements together with a rigorous forecasting process alerts the Finance and Budget Committee and trustees to any variances requiring attention.

The charity’s financial priorities, as set out and agreed by the trustees or identified during the annual audit, are kept under constant review.

The Federation of British Artists Limited 9

Report of the Board 31 December 2020

Objectives of the Charity

Our Mission Statement

The Federation aims to provide a national focal point for contemporary figurative and representational art in a variety of different mediums and genres by living artists.

The charity encourages and promotes the practice and appreciation of the visual arts. We champion young and emerging talent, together with well-established artists.

Education and accessibility lie at the heart of the Federation. The charity is committed to offering an active programme of education to diverse audiences. The charity also aims to make its exhibitions and activities accessible to the widest number of visitors and age groups.

The Federation sets out to achieve these objectives by:

After consideration of the Charity Commission’s guidance on public benefit, the Board regards these initiatives, together with our commitment to accessibility, as important means of delivering public benefit.

In order to finance these activities, the Federation is reliant for the majority of its income on donations, sponsorship, sales commissions, gallery rental, our Friends, patrons and membership fees. We receive no government funding.

The Federation of British Artists Limited 10

Report of the Board 31 December 2020

Review of Achievements and Performance

Exhibitions

A total of 18 exhibitions were hosted in 2020.

x14 physically staged at Mall Galleries.

x4 took place online only.

These included:

Full List of Exhibitions staged in 2020:

FBA Society Annual Exhibitions

Art Fairs - Connect Art Fair

The Federation of British Artists Limited 11

Report of the Board 31 December 2020

Review of Achievements and Performance (continued)

Exhibitions (continued)

Solo Exhibitions - Bryan Senior Group Exhibitions - Welsh Art Week - The Wapping Group - MInerva - Glorious Britain in Spring; Weekend Magazine

Art Exhibition and Auction Showcase

FBA Initiatives/Curated Exhibitions - FBA Futures - A Theatre of Portraits - FBA Prize Winners - Festival of Figurative Art

Artworks

Federation of British Artists (FBA) exhibition highlights:

In addition to which:

We were pleased to welcome a limited number of Non-FBA exhibitions to the galleries when possible to do so. Exhibition highlights included:

Figurative painter and realist Bryan Senior presented; People, Places and Things . A major retrospective of paintings spanning almost forty years, focussing on the visible and tangible world.

Scottish and London based Auction house, Lyon & Turnbull, returned to the galleries with Modern Made . An exhibition celebrating the best of Post-War and Modern Design across multiple disciplines covering paintings, works on paper, prints, ceramics, glass and design, prior to auction.

The Federation of British Artists Limited 12

Report of the Board 31 December 2020

Review of Achievements and Performance (continued)

Artworks (continued)

Connect, The Independent Art Fair - an affordable Art Fair run by a collective of London and regionally based dealers, returned for its second year in January.

Minerva 2020 Annual Exhibition took place in Autumn, bringing together the works of 230 contemporary Japanese artists working in a variety of styles and media. A particular accomplishment in the aftermath of earlier Covid-19 related travel restrictions.

Visitors to the Galleries and online digital engagement

Website:

Education and Learning

During each of the eight art society exhibitions, a lively programme of artist-led workshops and demonstrations ordinarily takes place in the galleries. In the absence of physical gatherings, new digital offerings in turn attracted a wide reach of virtual viewers and included; online demonstrations, lectures, studio tours and artist blogs.

The eighth edition of the gallery’s annual exhibition of figurate art by new graduates, FBA Futures sponsored by Minerva Executive Search took place at the start of 2020 and included 47 artists from 23 art schools; four of whom won awards for their works in the show, including Tobi Alexandra Falade from Wimbledon College of Arts, winner of The Hottinger Prize.

Supporters

We are very grateful to our sponsors and Mall Galleries Friends for their invaluable support. These contributions enable the many and generous art prizes and the learning programme which focusses in particular on nurturing and encouraging emerging artists to develop their careers.

We are thankful to our FBA Mall Galleries Friends for continued support and look forward to seeing them again now that the gallery has opened.

The Federation of British Artists Limited 13

Report of the Board 31 December 2020

Review of Achievements and Performance (continued)

Supporters (continued)

List of key donors and sponsors Foundation Derbyshire

The Hottinger Group

Minerva Executive Search

Developing our Resources

Improvements to the infrastructure continue to be paramount – development projects in 2020 were firstly to create one integrated customer relationship management system and using it to improve targeted marketing and internal processes; secondly to update the online payment platform to ease the purchasing of a work of art; and thirdly to improve the financial processes via SAGE Pay.

Future Plans

The vision and mission of the FBA were refined in 2020 –

Vision – to be the destination of choice for contemporary figurative art

Mission – To make contemporary figurative art by living artists accessible, collectable and appreciated by everyone

The FBA ambitions for 2020-25 are to:

  1. be the centre for living, figurative artists;

  2. be the showcase for living figurative artists;

  3. sell art with digital at the centre;

  4. share expertise and knowledge to emerging artists and students;

  5. significantly invest in the staff by revolutionising the infrastructure and the working environment; and

  6. grow core income streams and develop new ones.

Celebrating 60 years of the Federation of British Artists and 50 years at Mall Galleries, 2021 will see the best of contemporary British figurative art hung on the gallery walls complemented by a stronger online presence and increased sales of art to a national and international audience. These will help secure a future for the FBA; assist professional artists in their career; and enhance the lives of viewers and buyers by enabling the enjoyment of excellent figurative art. To achieve this, we will continue to prioritise art sales; create new attractive packages for gallery hire and widen our reach internationally using the power of digital. The anniversaries will be marked by the FBA’s online exhibition Figurative Art Now , offering an attractive range of prizes .

The Federation of British Artists Limited 14

Report of the Board 31 December 2020

Future Plans (continued)

In terms of financial resilience, we aim to break-even in 2022 and begin to rebuild the reserves from 2023.

Financial review and policies

Results for the Year

The Federation made an operating loss in 2020 of £339,150 compared to a loss in 2019 of £28,477. We also recorded an impairment loss of £126,743 on our learning centre.

Total income of £1,126,275 was £526,666 lower than in 2019 (£1,652,941). The Gallery was closed from late March until September, again in November and most of December due to Covid-19. Income from External Exhibitions and Events was down by £443,266 driven by cancellations and deferments due to the pandemic. The Bookstore was closed in March and did not open for the remainder of the year, impacting income by £85,994. Admission income was down £23,238, however we were able to have physical shows for seven of our eight societies, of course adhering to strict Covid-19 guidelines. Portrait commission income was down £55,990 as artists were not able to have the physical sittings needed to complete their work. Furlough income from the Government scheme generated £147,026.

Our income from charitable activities was impacted by lower commissions, £113,862 lower, mainly from Portrait commission, Fine Art sales from our Oman business and commissions from our eight society shows. However all the society shows were sold on-line this year, generating good sales and we finished only 8% behind prior year. Non society income from hiring the galleries was lower due to Covid-19.

Overall expenditure was 13% lower than 2019. Charitable activities show a reduction of £217,122, approximately half of the fall in expenditure is explained by the rent and rates holiday we got from our landlord and local authority (£100,420). As the Bookstore was closed for nine months we did not have the cost of sales generating a saving of (£50,446). All the rest of the savings came from the running of the premises and reduced operating costs.

Salaries formed 58% of our total costs and were higher than in 2019 which was 50%. We appreciate the staff are the most valued asset of the organisation without which we cannot operate.

Our overall cash position of £697,323 at the end of December 2020 shows a reduction of £307,072 driven by the impact of Covid-19, however we are still in the good cash position which will give the Federation resilience in the face of ongoing restrictions in 2021.

The Federation of British Artists Limited 15

Report of the Board 31 December 2020

Financial review and policies (continued)

Sources of Income and Expenditure

The Federation of British Artists Limited 16

Report of the Board 31 December 2020

Financial review and policies (continued)

Our Policies

The Federation has written policies and guidelines in place to cover the wide-ranging areas of our business, encompassing everything from the management of our premises and energy efficiency to promoting best practice in the wider arts sector.

These policies include: Health & Safety Policy, Energy Policy, Learning Centre Management & Maintenance Plan, Education Policy, Learning Centre Protocols, Child Protection and Safeguarding Vulnerable Adult Policy, Volunteer Policy, Access Statement and Intellectual Property Policy.

All Federation employees are required to understand and comply with these policies, which we review annually to ensure they are suitable for the organisation’s structure and objectives. We strive to update our policies through on-going consultations with FBA Trustees, staff, artists and partners, as well as from public feedback.

Pricing Policy

Accessibility is a key element of our public benefit offering. We are committed to enabling as many people as possible to view our exhibitions and to participate in activities, regardless of their income and ability to pay. We charge a modest fee to enter some of our exhibitions at Mall Galleries. However, we offer concessions for local groups and networks, as well as for all students and visitors aged 65 or over. Friends and Patrons of Mall Galleries and all visitors under 18 years of age obtain free admission to all exhibitions.

Investment Policy

No Investments were held by the Federation as at 31 December 2020. All future investments will be impacted by the need to use cash reserves to support the organisation during the Covid19 pandemic.

Interest on funds held in bank deposit accounts was £1,072 (2019: £1,973). Interest rates continue to be very low.

Reserves Policy and Going concern

The balance sheet shows total reserves of £886,002 (2019 - £1,351,895) consisting of restricted funds of £25,409 (2019 - £25,946) designated funds of £521,192 (2019 - £696,243) and free reserves of £339,401 (2019 - £629,706).

In the restricted education fund, income included £1,500 of donations from Patrons. Resources expended on educational programmes during the year amounted to £2,037. The unused balance carried forward of £25,409 will go towards the In the Studio project.

The Federation of British Artists Limited 17

Report of the Board 31 December 2020

Financial review and policies (continued)

Reserves Policy and Going concern (continued)

Designated funds consist of the premises maintenance fund for external painting and the tangible fixed assets fund. As the planned work in 2020 did not happen this year due to Covid19, it was decided to keep the fund at £80,000 which is sufficient to cover future maintenance and the cost of the external painting

New designations of £25,952 were made to the fixed assets designated fund to provide new IT and office equipment for the offices and upgrades of the lighting and wiring in the office. The opening balance of £616,243 at 1 January 2020, the new designations of £25,952 less the released amount of £74,260 depreciation and the impairment to the learning centre of £126,743 leaves a balance carried forward as at 31 December 2020 of £441,192. The tangible fixed assets fund recognises that the tangible fixed assets are required for the day-to-day operation of the charity and are not available for other purposes or general reserves.

Free reserves in the general fund amount to £339,401 (2019 - £629,706).

The trustees have set a target level of reserves consistent with our ability to protect our future activities from unexpected financial risk as a minimum of three months of expenditure. This equates to approximately £370,000 at 2020 levels.

Due to the Covid-19 situation our free reserves have taken a substantial hit and will continue to be affected into 2021 as the impact of the gallery being closed for nine months and then opening back up, operating within Government guidelines and social distancing rules. Thereafter we will create a plan to build our reserves back up over a 5-year period to be in line with at least three months expenditure.

The Charity’s Assets

Acquisitions and disposals of fixed assets during the period are recorded in the notes to the financial statements.

The Board’s Statement of Responsibilities

The Trustees (who are also directors of the Federation of British Artists for the purposes of company law and trustees for the purposes of charity legislation) are responsible for preparing the Report of the Board and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and the group and of the income and expenditure of the group for that period. Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company, the group and of the income and expenditure of the group for that period.

The Federation of British Artists Limited 18

Report of the Board 31 December 2020

Financial review and policies (continued)

The Board’s Statement of Responsibilities (continued)

In preparing these financial statements, the Trustees are required to:

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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Each of the Trustees confirms that:

This confirmation is given and should be interpreted in accordance with the provisions of s418 of the Companies Act 2006.

The Trustees are responsible for the maintenance and integrity of financial information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

The Federation of British Artists Limited 19

Report of the Board 31 December 2020

Signed on behalf of the board:

Trustee Jonathan Glasspool Approved by the board on: 22.6.2021

The Federation of British Artists Limited 20

Independent auditor’s report to the Members Year to 31 December 2020

Independent auditor’s report to the members of The Federation of British Artists

Opinion

We have audited the financial statements of The Federation of British Artists (the ‘charitable parent company’) and its subsidiary (the ‘group’) for the year ended 31 December 2020 which comprise the group statement of financial activities, the group and charitable parent company balance sheets, the group statement of cash flows, the principal accounting policies and the notes to the financial statements. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group and charitable parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

The Federation of British Artists Limited 21

Independent auditor’s report to the Members Year to 31 December 2020

Other information

The trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the charitable parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

The Federation of British Artists Limited 22

Independent auditor’s report to the Members Year to 31 December 2020

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the group’s and the charitable parent company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the group or the charitable parent company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

The Federation of British Artists Limited 23

Independent auditor’s report to the Members Year to 31 December 2020

Auditor’s responsibilities for the audit of the financial statements (continued)

We assessed the susceptibility of the charity’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the trustees and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

The Federation of British Artists Limited 24

Independent auditor’s report to the Members Year to 31 December 2020

Use of this report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Catherine Biscoe (Senior Statutory Auditor) For and on behalf of Buzzacott LLP, Statutory Auditor 130 Wood Street London EC2V 6DL

Date: 27 September 2021

The Federation of British Artists Limited 25

Consolidated statement of financial activities Year to 31 December 2020

Notes Unrestricted
funds
£		 Restricted
funds
£		 2020
Total
funds
£		 Unrestricted
funds
£
Restricted
funds
£		 2019
Total
funds
£
Income and expenditure
Income from:
Donations and legacies
1
Sponsorship income
2
Investments
3
Charitable activities
4
. Subscriptions
. Exhibitions
. Commissions
. Non Society exhibitions
Other income
5
Total income
Expenditure on:
Raising funds
6
Charitable activities
7
Total expenditure
Net expenditure before
impairment
Impairment
13
Net expenditure and net
movement in funds for the year
9
Reconciliation of funds:
Balances brought forward
at 1 January 2020
Balances carried forward
at 31 December 2020		 8,189
15,200
1,072

165,845
228,230
346,289
114,736
245,214		 1,500
—
—
—
—
—
—
—		 9,689
15,200
1,072
165,845
228,230
346,289
114,736
245,214		 3,521
28,200
1,973
171,261
265,835
460,151
558,002
157,170		 6,828
—
—
—
—
—
—
—		 10,349
28,200
1,973
171,261
265,835
460,151
558,002
157,170
1,124,775
4,658
1,458,730		 1,500
—
2,037		 1,126,275
4,658
1,460,767		 1,646,113
3,529
1,657,740		 6,828
—
20,149		 1,652,941
3,529
1,677,889
1,463,388
(338,613)
(126,743)		 2,037
(537)
—		 1,465,425
(339,150)
(126,743)		 1,661,269
(15,156)
—		 20,149

(13,321)
—		 1,681,418
(28,477)
—
(465,356)
1,325,949		 (537)
25,946		 (465,893)
1,351,895		 (15,156)
1,341,105
(13,321)
39,267		 (28,477)
1,380,372
860,593 25,409 886,002 1,325,949 25,946 1,351,895

All recognised gains and losses are included in the above consolidated statement of financial activities. All of the charity’s activities derived from continuing operations during the above two financial periods.

The Federation of British Artists Limited 26

Balance sheets 31 December 2020

Notes Consolidated Consolidated Federation

2020
£		 2019
£		 2020
£
2019
£
Fixed assets
Tangible assets
13
Investments
14
Current assets
Debtors
15
Stock
Cash at bank and in hand
Liabilities:
Creditors: amounts falling due
within one year
16
Net current assets
Total net assets
The funds of the group/charity:
Restricted funds
17
Unrestricted funds
. Designated funds
18
. General fund
441,192

—		 616,243
—		 441,192
616,243
2
2
441,192

66,630
13,477
697,323		 616,243
254,127
11,515
1,004,395		 441,194
616,245
270,802
510,657
—
—
475,706
724,377
777,430

**(332,620) **		 1,270,037
(534,385)		 746,508
1,235,034
(301,702)
(499,386)
444,810 735,652 444,806
735,648
886,002 1,351,895 886,000
1,351,893

25,409

521,192
339,401		 25,946
696,243
629,706		 25,409
25,946
521,192
696,243
339,399
629,704
886,002 1,351,895 886,000
1,351,893

Approved by the Board and signed on its behalf by:

Jonathan Glasspool Trustee

Approved on: 22.6.2021

Company Registration Number 683275 (England and Wales)

The Federation of British Artists Limited 27

Consolidated statement of cash flows 31 December 2020

Notes
2020
£		 2019
£
Cash flow from operating activities:
Net cash (used in) provided by operating activities
A
Cash outflow from investing activities:
Dividends and interest from investments
Purchase of tangible fixed assets
Proceeds from the disposal of fixed assets
Net cash used in investing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at 1 January 2020
B
Cash and cash equivalents at 31 December 2020
B

**(282,192) **		 162,344


1,072
(25,952)
—		 1,973
(8,356)
—
**(24,880) ** (6,383)

(307,072)


1,004,395
 155,961
848,434

697,323		 1,004,395

Notes to the statement of cash flows for the year to 31 December 2020.

A Reconciliation of net movement in funds to net cash provided by operating activities

activities
2020
£		 2019
£
Net movement in funds (as per the statement of financial activities)
Adjustments for:
Depreciation charge
Dividends and interest from investments
(Increase) decrease in stocks
Decrease (increase) in debtors
(Decrease) increase in creditors
Net cash(used in) provided by operating activities		 (339,150)
74,260
(1,072)
(1,962)
187,498
(201,766)		 (28,477)
71,040
(1,973)
8,481
(20,285)
133,558
(282,192) 162,346

B Analysis of cash and cash equivalents

Analysis of cash and cash equivalents
2020
£		 2019
£
Cash at bank and in hand
Total cash and cash equivalents		 697,323 1,004,395
697,323 1,004,395

The Federation of British Artists Limited 28

Principal accounting policies 31 December 2020

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are laid out below.

Basis of preparation

These financial statements have been prepared for the year to 31 December 2020.

The financial statements have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant accounting policies below or the notes to these financial statements.

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) (Charities SORP FRS 102) issued on 16 July 2014, the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.

The charity constitutes a public benefit entity as defined by FRS 102.

The financial statements are presented in sterling and are rounded to the nearest pound.

Critical accounting estimates and areas of judgement

Preparation of the financial statements requires the trustees and management to make significant judgements and estimates.

The items in the financial statements where these judgements and estimates have been made include:

Assessment of going concern

The trustees have assessed whether the use of the going concern assumption is appropriate in preparing these financial statements. The trustees have made this assessment in respect to a period of one year from the date of approval of these financial statements.

The Federation of British Artists Limited 29

Principal accounting policies 31 December 2020

Assessment of going concern (continued)

Covid-19 has had a noticeable impact on the charity’s finances in the year to 31 December 2020 and this impact will also be felt into the 2[nd] half of 2021. The general reserves have taken a substantial hit and will need to be reinstated in the following years. In terms of income, the impact has been felt most keenly through the cancellation and deferment of gallery hires for exhibitions or one off events and also the impact on FBA exhibitions in terms of artwork sales and portrait commissions. We have reviewed the Government guidelines and have operated the gallery very mindful of employee and public safety. Expenditure has also be impacted by Covid-19, as activity has been lower, running and exhibition costs have also been lower. The Government job retention scheme has assisted in offsetting costs in relation to furloughed staff. Rent and rates holidays and other premises costs savings have had a positive impact on running costs.

Free reserves at the 31 December stood at £339,401 (2019 - £629,706). This level of reserves is just below the three month requirement stipulated by the trustees £370,000 based on 2020 accounts. As the free reserves have fallen below this level as a result of the pandemic, the charity plans to build back to at least three months in its 5 year plan. A latest estimate and cash flow has been drawn up for 2021 and 2022 based on reopening the gallery in April 2021, with continued strong sales on line to support our sales in the gallery. We assume that gallery hirers for exhibitions will come back in the 2[nd] half of 2021.

The trustees have reviewed and approved this and concluded, in the light of our healthy current bank balance, that the charity will be able to continue to operate in the exceptional circumstances created by the pandemic. The trustees recognise, however, that if the gallery needs to be closed down again after our opening in April 2021, this may result in the charity having to take further action to ensure its ability to continue as a going concern. Having reviewed the available evidence, the trustees have concluded that it is appropriate for the group and charity to continue to prepare its accounts on the going concern basis.

Basis of consolidation

The consolidated statement of financial activities and group balance sheet consolidate the financial statements of the Federation and its subsidiary Mall Galleries Trading Limited made up at the balance sheet date.

No separate statement of financial activities has been presented for the Federation alone as permitted by section 408 of the Companies Act 2006.

Income recognition

Income is recognised in the period in which the charity has entitlement to the income, the amount of income can be measured reliably and it is probable that the income will be received.

Income comprises donations, sponsorship, income from charitable activities and investment income.

The Federation of British Artists Limited 30

Principal accounting policies 31 December 2020

Income recognition (continued)

Income from charitable activities, including subscriptions, exhibitions and commissions, is recognised on a receivable basis. In the event that income is received in advance of the services being provided the income is deferred.

Sponsorship income is recognised on a receivable basis. In the event that income is received in advance of the service being provided the income is deferred.

Donations are recognised when the charity has confirmation of both the amount and settlement date. In the event of donations pledged but not received, the amount is accrued for where the receipt is considered probable. In the event that a donation is subject to conditions that require a level of performance before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that those conditions will be fulfilled in the reporting period.

Legacies are included in the statement of financial activities when the charity is entitled to the legacy, the executors have established that there are sufficient surplus assets in the estate to pay the legacy, and any conditions attached to the legacy are within the control of the charity.

Dividends are recognised once the dividend has been declared and notification has been received of the dividend due.

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank.

Expenditure recognition

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to make a payment to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably.

All expenditure is accounted for on an accruals basis. Expenditure comprises direct costs and support costs. All expenses, including support costs, are allocated or apportioned to the applicable expenditure headings. The classification between activities is as follows:

All expenditure is stated inclusive of irrecoverable VAT.

The Federation of British Artists Limited 31

Principal accounting policies 31 December 2020

Allocation of support and governance costs

Support costs represent indirect charitable expenditure. In order to carry out the primary purposes of the charity, it is necessary to provide support in the form of personnel development, financial procedures, provision of office services and equipment and a suitable working environment.

Governance costs comprise the costs involving the public accountability of the charity (including audit costs) and costs in respect to its compliance with regulation and good practice.

Support costs, including staff related costs, and governance costs are apportioned based on estimated usage.

Tangible fixed assets

Assets costing more than £250 and with an expected useful life exceeding one year are capitalised.

Stock

Stock is valued at the lower of cost and net realisable value.

Debtors

Debtors are recognised at their settlement amount, less any provision for non-recoverability. Prepayments are valued at the amount prepaid. They have been discounted to the present value of the future cash receipt where such discounting is material.

Cash at bank and in hand

Cash at bank and in hand represents such accounts and instruments that are available on demand or have a maturity of less than three months from the date of acquisition.

Creditors and provisions

Creditors and provisions are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Creditors and provisions are recognised at the amount the charity anticipates it will pay to settle the debt. They have been discounted to the present value of the future cash payment where such discounting is material.

Fund accounting

Restricted funds comprise monies raised for, or their use restricted to, a specific purpose, or contributions subject to donor imposed conditions.

The Federation of British Artists Limited 32

Principal accounting policies 31 December 2020

Fund accounting (continued)

Designated funds comprise funds set aside out of unrestricted funds and designated for specific purposes by the Board.

Unrestricted general funds comprise those monies which may be used towards meeting the charitable objectives of the Federation at the discretion of the Board.

Leased assets

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged on a straight-line basis over the lease term.

Pension contributions

The charity operates a defined contribution pension scheme to which all employees are eligible. The pension charge represents payments to the scheme which are charged to the statement of financial activities in the period to which they relate. The charity has no liability beyond making its contributions and paying across the deductions for the employees’ contributions.

The Federation of British Artists Limited 33

Notes to the financial statements 31 December 2020

1 Income from donations and legacies

Unrestricted
funds
£
—
8,189
8,189		 Restricted
funds
£		 2020
Total
funds
£
1,500
8,189
9,689		 Unrestricted
funds
£
—
3,521
3,521		 Restricted
funds
£
4,750
2,078
6,828		 2019
Total
funds
£
4,750
5,599
10,349
Patrons
Trusts and foundations
Total funds		 1,500
—
1,500

2 Income from sponsorship

Unrestricted
funds
£		 Restricted
funds
£
—
—		 2020
Total
funds
£
15,200
15,200		 Unrestricted
funds
£
28,200
28,200		 Restricted
funds
£		 2019
Total
funds
£
Sponsorship income
Total funds		 15,200 — 28,200
15,200 — 28,200

3 Income from investments

Unrestricted
funds
£		 Restricted
funds
£		 2020
Total
funds
£		 Unrestricted
funds
£		 Restricted
funds
£		 2019
Total
funds
£
Bank interest receivable
Total funds		 1,072 — 1,072 1,973 — 1,973
1,072 — 1,072 1,973 — 1,973
Unrestricted
funds
£		 Restricted
funds
£		 2020
Total
funds
£
113,739
52,106
165,845
228,230
346,289
114,736
855,100		 Unrestricted
funds
£		 Restricted
funds
£		 2019
Total
funds
£
Subscriptions
. Members
. Friends and Patrons
Exhibitions
Commissions
Non society exhibitions
Total funds		 113,739
52,106		 —
—		 113,275
57,986		 —
—
113,275

57,986
165,845 — 171,261 —
171,261
228,230
346,289
114,736		 —
—
—		 265,835
460,151
558,002		 —
—
—
265,835

460,151

558,002
855,100 — 1,455,249 —
1,455,249

The Federation of British Artists Limited 34

Notes to the financial statements 31 December 2020

5 Other income

Sale of books and
materials
Catering receipts
CJRS grant
Miscellaneous income
Total funds		 Unrestricted
funds
£		 Restricted
Funds
£		 2020
Total
funds
£		 Unrestricted
funds
£		 Restricted
Funds
£		 2019
Total
funds
£
18,703
2,402
147,026
77,083		 —
—
—
—		 18,703
2,402
147,026
77,083		 104,697
8,753
—
43,720		 —
—
—
—		 104,697
8,753
—
43,720
245,214 — 245,214 157,170 — 157,170

6 Expenditure on raising funds

Unrestricted
funds
£		 Restricted
Funds
£		 2020
Total
funds
£		 Unrestricted
funds
£		 Restricted
Funds
£		 2019
Total
funds
£
Cost of raising funds
Total funds		 4,658 — 4,658 3,529 — 3,529
4,658 — 4,658 3,529 — 3,529

7 Expenditure on charitable activities

Unrestricted
funds
£		 Restricted
Funds
£		 2020
Total
funds
£		 Unrestricted
funds
£		 Restricted
Funds
£		 2019
Total
funds
£
Membership costs
Exhibitions by Member
Societies
Commissioned work
Non Society exhibitions
Education
Total funds		 36,238
586,336
317,860
473,839
44,457		 —
—
—
—
2,037		 36,238
586,336
317,860
473,839
46,494		 40,822
672,253
358,120
533,826
52,719		 —
—
—
13,355
6,794		 40,822
672,253
358,120
547,181
59,513
1,458,730 2,037 1,460,767 1,657,740 20,149 1,677,889

Expenditure is ordinarily allocated based on staff time spent on different activities and fundraising. As a result of the Coronavirus pandemic, the ratio of staff time spent across different activities is non-comparable to previous years and therefore the allocation and apportionment of expenditure has been based on the ratio of staff time for 2019.

8 Support costs

Included within expenditure on charitable activities are support costs as detailed below:

Membership
costs
£		 Exhibitions
by
member
societies
£		 Commissioned
work
£		 Non
Society
exhibitions
£		 Education
£		 2020
Total
funds
£
Premises
Depreciation
Governance costs
(see below)		 —
92
3,053
75,113

17,176

9,931
36,541

15,381

10,414		 75,113
18,137
14,791		 16,241
23,474
—		 203,008
74,260
38,189
3,145
102,220
62,336		 108,041 39,715 315,457

The Federation of British Artists Limited 35

Notes to the financial statements 31 December 2020

8 Support costs (continued)

Membership
costs
£		 Exhibitions
by
member
societies
£		 Commissioned
work
£		 Non
Society
exhibitions
£		 Education
£		 2019
Total
funds
£
Premises
Depreciation
Governance costs
(see below)		 —
88
3,853
116,562

16,432
11,101
56,706

14,714
11,203		 116,562
17,350
14,003		 25,203
22,456
—
315,033

71,040
40,160
3,941
144,095
82,623		 147,915 47,659
426,233

Support costs have been allocated on the basis of estimated usage by each activity.

Included within support costs are governance costs as detailed below:

2020
Total
funds
£		 2019
Total
funds
£
Auditor’s remuneration
Legal and professional
Other governance costs		 17,965
17,791
2,433		 20,665
13,480
6,015
38,189 40,160

9 Net expenditure for the year

This is stated after charging:

2020
Total
funds
£		 2019
Total
funds
£
Staff costs (note 10)
Auditor’s remuneration (consolidated)
- Audit fees: current year
- Other services: current year
Depreciation of tangible fixed assets
Operatinglease rentals – buildings		 856,713
16,700
2,410
74,260
46,270		 845,533
16,700
3,965
71,041
130,694

During the year the charity received a rent concession from Crown Estate totalling £77,117 (2019: Nil).

The Federation of British Artists Limited 36

Notes to the financial statements 31 December 2020

10 Staff costs, remuneration of key management personnel and Trustees’ remuneration

Staff costs, remuneration of key management personnel and
remuneration		 Trustees’
2020
£		 2019
£
Staff costs during the year were as follows:
Wages and salaries
Social security costs
Pension costs
Staff costs per function were as follows:
Subscriptions
Exhibitions
Commissions
Non Society exhibitions
Education		 770,357
69,400
16,956		 759,614
69,957
15,962
856,713 845,533
25,708
347,802
207,523
272,229
3,451		 25,373
343,263
204,815
268,677
3,406
856,713 845,533

Staff costs are ordinarily allocated based on staff time spent on different activities and fundraising. As a result of the Coronavirus pandemic, the ratio of staff time spent across different projects is non-comparable to previous years and therefore the allocation and apportionment of staff costs has been based on the ratio of staff time for 2019.

The average number of employees, analysed by function, was:

Averageheadcount Averageheadcount Fulltime equivalent Fulltime equivalent
2020 2019 2020 2019
Subscriptions
Exhibitions
Commissions
Non Society exhibitions
Education		 1
14
8
10
—		 1
16
10
13
—		 0.66
8.93
5.33
6.99
0.09		 0.69
9.34
5.57
7.31
0.09
33 40 22.00 23.00

The number of employees who earned £60,000 per annum (including taxable benefits) or more during the year was as follows:

2020 2019
£60,000 - £70,000
£70,000 - £80,000		 —
1		 1
1

£3,961 (2019 - £4,909) pension contributions were made on behalf of these member of staffs in 2020.

The key management personnel of the charity in charge of directing and controlling, running and operating the charity on a day to day basis comprise the Trustees and the executive team. The total remuneration (including taxable benefits, employer's pension contributions and employer’s national insurance contributions) of the key management personnel for the year was £242,348 (2019 - £214,552).

The Federation of British Artists Limited 37

Notes to the financial statements 31 December 2020

10 Staff costs, remuneration of key management personnel and Trustees’ remuneration (continued)

No Trustee received any remuneration for services as a member of the Board during the period (2019 - £nil). Travel and printing expenses amounting to £nil were reimbursed to no Trustees (2019 - £771 to three Trustees).

11 Net income from Mall Galleries Trading Limited

Mall Galleries Trading Limited is a wholly-owned subsidiary of the Federation which is incorporated in England and Wales. Mall Galleries Trading Limited receives commercial sponsorship on behalf of the Federation. A summary of Mall Galleries Trading Limited’s results for the year to 31 December 2020 are shown below:

results for the year to 31 December 2020 are shown below:
Profit and loss account 31
December
2020
£		 31
December
2019
£
Turnover
Cost of sales
Gross profit
Administrative expenses
Net profit
Amount to be distributed to the Federation under Gift Aid
Retained in subsidiary		 91,730
(20,286)		 298,339
(101,706)
71,444
(34,458)		 196,633
(39,377)
36,986
(36,986)		 157,256
(157,256)
— —

The £2 issued share capital equalled the net assets of the company as at 31 December 2020.

12 Taxation

The Federation of British Artists Limited is a registered charity and therefore is not liable to income tax or corporation tax on income derived from its charitable activities, as it falls within the various exemptions available to registered charities.

13 Tangible fixed assets

Tangible fixed assets
Federation and Group
i		 Leasehold
mprovements
£

Furniture
fixtures and
fittings
£		 Office
equipment
£		 Total
£
Cost
At 1 January 2020
Additions
At 31 December 2020
Depreciation
At 1 January 2020
Charge for the year
Impairment
At 31 December 2020
Net book values
At 31 December 2020
At 31 December 2019		 1,066,818
11,490		 66,176
9,827		 79,842
4,635		 1,212,836
25,952
1,078,308 76,003 84,477 1,238,788
473,961
60,435
126,743		 61,557
3,164		 61,075
10,661		 596,593
74,260
126,743
661,139 64,721 71,736 797,596
417,169 11,282 12,741 441,192
592,857 4,619 18,767 616,243

The Federation of British Artists Limited 38

Notes to the financial statements 31 December 2020

Investments

The investments of the charity consist solely of the charity’s interest in the share capital of Mall Galleries Trading Limited.

15 Debtors

Consolidated Consolidated Federation Federation
2020
£		 2019
£		 2020
£		 2019
£
Trade debtors
Amounts due from subsidiary undertaking
Other debtors
Prepayments and accrued income		 45,360
—
—
21,270		 174,735
—
18,153
61,239		 41,173
208,444
—
21,185		 149,400
281,953
18,153
61,151
66,630 254,127 270,802 510,657

16 Creditors: amounts falling due within one year

Consolidated Consolidated Federation Federation
2020
£		 2019
£		 2020
£		 2019
£
Trade creditors
Social security and other taxes
Deposits and fees received in advance
Other creditors and accruals		 61,278
119,334
84,609
67,399		 178,841
104,971
177,340
73,233		 45,633
111,278
82,609
62,179		 174,173
93,433
165,423
66,357
332,620 534,385 301,699 499,386

Included above are deposit fees received in advance as set out below:

2020
£		 2019
£
Deferred income brought forward
Additional income deferred during the year
Brought forward funds released in the year
Deferred income carried forward at 31 December 2020		 177,340
28,134
(120,865)		 121,999
171,174
(115,833)
84,609 177,340

17 Restricted fund

Federation and Group At 1
January
2020
£		 Income
£		 Expenditure
£		 Transfers
£		 At 31
December
2020
£
Education fund 25,946 1,500 (2,037) — 25,409
25,946 1,500 (2,037) — 25,409
Federation and Group At 1
January
2019
£		 Income
£		 Expenditure
£		 Transfers
£		 At 31
December
2019
£
Education fund
Threadneedle Exhibition		 25,912
13,355		 6,828
—		 (6,794)
(13,355)		 —
—		 25,946
—
39,267 6,828 (20,149) — 25,946

The Federation of British Artists Limited 39

Notes to the financial statements 31 December 2020

17 Restricted fund (continued)

The Education fund comprises donations received for the learning project entitled ‘In the Studio’.

18 Designated funds

Designated funds
Federationand Group At 1
January
2020
£		 New
Designations
£
—
25,952
25,952
Utilised/
Released
£		 At 31
December
2020
£
Premises maintenance fund
Tangible fixed assets fund		 80,000
616,243		 —
(201,003)		 80,000
441,192
696,243 (201,003) 521,192
Federationand Group At 1
January
2019
£		 New
Designations
£
—
8,356
8,356		 Utilised/
Released
£		 At 31
December
2019
£
Premises maintenance fund
Tangible fixed assets fund		 80,000
678,927		 —
(71,040)		 80,000
616,243
758,927 (71,040) 696,243

The premises maintenance fund is designated to provide monies for the external painting of the galleries as required at regular intervals by the terms of the lease.

The tangible fixed assets fund represents the net book value of the charity’s tangible fixed assets. The fund recognises the fact that the tangible fixed assets are required for the dayto-day operation of the charity and are not available for other purposes or general reserves.

19 Analysis of net assets between funds

Group General
Fund
£		 Designated
Funds
£		 Restricted
Funds
£		 Total
2020
£
Fund balances at 31 December 2020
are represented by:
Fixed assets
Current assets
Creditors: amounts falling due
within one year
Total net assets		 —
672,021
(332,620)		 441,192
80,000
—		 —
25,409
—		 441,192
777,430
(332,620)
339,401 521,192 25,409 886,002
Group General
Fund
£		 Designated
Funds
£		 Restricted
Funds
£		 Total
2019
£
Fund balances at 31 December 2019
are represented by:
Fixed assets
Current assets
Creditors: amounts falling due
within one year
Total net assets		 —
1,164,091
(534,385)		 616,243
80,000
—		 —
25,946
—		 616,243
1,270,037
(534,385)
629,706 696,243 25,946 1,351,895

The Federation of British Artists Limited 40

Notes to the financial statements 31 December 2020

19 Analysis of net assets between funds (continued)

Federation General
Fund
£		 Designated
Funds
£		 Restricted
Funds
£		 Total
2020
£
Fund balances at 31 December 2020
are represented by:
Fixed assets
Current assets
Creditors: amounts falling due
within one year
Total net assets		 2
641,099
(301,702)		 441,192
80,000
—		 —
25,409
—		 441,194
746,508
(301,702)
339,399 521,192 25,409 886,000
Federation General
Fund
£		 Designated
Funds
£		 Restricted
Funds
£		 Total
2019
£
Fund balances at 31 December 2019
are represented by:
Fixed assets
Current assets
Creditors: amounts falling due
within one year
Total net assets		 2
1,129,088
(499,386)		 616,243
80,000
—		 —
25,946
—		 616,245
1,235,034
(499,386)
629,704 696,243 25,946 1,351,893

20 Leasing commitments

At 31 December 2020 the Federation had future minimum commitments under operating leases on land and buildings as follows:

Paymentswhich falldue: 2020
£
123,387
493,548
596,370
1,213,305		 2019
£
Within one year
Within two to five years
After five years		 123,387
493,548
719,757
1,336,692

21 Capital commitments

At 31 December 2020, the charity had capital commitments of £nil (2019 - £nil).

22 Liability of members

The Federation is constituted as a company limited by guarantee. In the event of the Federation being wound up, members are required to contribute an amount not exceeding £1.

The Federation of British Artists Limited 41

Notes to the financial statements 31 December 2020

23 Related party transactions

The charity received commission and Trustees hire fees totalling £21,323 (2019 - £11,708) from members of the Board of Trustees in respect of the sale of paintings through exhibitions by societies of which they are members, or commissioned paintings or gallery hire. At 31 December 2020, an amount of £nil (2019 - £nil) was due from members of the Board of Trustees in respect of these activities. Commissions and gallery hire fees received by the charity were at the standard rates payable by all artists.

No donations were received from Trustees in 2020 or 2019.

Other than the transactions above there were no other related party transactions during the year.

Connected Charities

The Federation acts on behalf of nine Member Societies, of which eight are registered as charities. The details of these are given below.

Charity
Charity **Reg No. ** Charitable objectives
Royal Institute of Painters in Water Colours 291405 The promotion of Fine Arts and in
particular the art of painting in
water colours.
Royal Society of British Artists 294590 To promote, maintain, improve and
advance public education by the
encouragement of the Arts.
Royal Society of Marine Artists 289944 To promote, maintain, improve and
advance the education of the public
by the encouragement of the study
and practice of the Fine and
Applied Arts with particular but not
exclusive reference to the sea and
maritime subjects.
Royal Society of Portrait Painters 327460 To promote, maintain, improve and
advance education in the Fine Arts
and in particular to encourage the
appreciation, study and practice of
the art of portraiture.
Royal Institute of Oil Painters 327615 The encouragement and
development of oil painting by
holding open exhibitions of work.
New English Art Club 295780 To advance the education of the
public in the art of painting and the
Fine Arts.
Pastel Society 296479 The promotion of Fine Arts and in
particular the art of the pastel and
pencil.
Society of Wildlife Artists 328717 To foster and encourage all forms
of visual art based on or
representing wildlife.

The principal contact address for all connected charities is 17 Carlton House Terrace, London SW1Y 5BD.

The Federation of British Artists Limited 42

The Federation of British Artists Limited

Detailed income and expenditure account for the year ended

31 December 2020

These pages do not form part of the statutory financial statements

Detailed income and expenditure account Year to 31 December 2020

2020
£		 2020
£		 2019
£		 2019
£
Income
Donations
Subscriptions
Members
Friends & Patrons of FBA
Exhibition receipts
Submission fees
Admissions
Catalogue sales
Commissions
Galleries
Portraits
Non-society exhibitions
Galleries
Sundry receipts
Sundry income
Art magazine revenue
Workshop income
Management charge
Rental income
Finance receipts
Bank interest		 113,739
52,106		 9,689
165,845
209,496
309,880
112,250
254,458
874		 113,275
57,986		 10,349
171,261
235,157
385,724
517,347
84,455
1,567
178,011
25,916
5,569		 171,228
49,154
14,776
241,117
68,763		 260,971
124,753
217,236
4,044
1,468
30,285
1,425		 22,075
5,933
11,464
34,451
10,533
874 1,567
1,062,492 1,405,861
Reconciliation to the consolidated SOFA 2020
£
1,062,492
91,730
(64)
(30,285)
2,402
1,126,275		 2019
£
Per detailed income and expenditure account
Add: Mall Galleries Trading gross income
Less: Licence Fee included in non-society lets
Less: Management charge
Add: Catering receipts
Total income stated in the SOFA		 1,405,861
298,339
(25,562)
(34,451)
8,753
1,652,941

The Federation of British Artists Limited 44

Detailed income and expenditure account Year to 31 December 2020

2020
£		 2020
£		 2019
£		 2019
£
315,033
78,809
73,506
27,034
21,810
845,533
26,932
71,041
24,991
105,950
Expenditure
Premises
Rent and rates
Insurance
Light and heat
Cleaning
Repairs and maintenance
Services charges
Printing and stationery
Printing and stationery
Less: receipts for catalogue illustrations
Advertising exhibitions
Postage and telephone
Catering
Less: Catering receipts
Salaries and pensions
Professional charges
Audit
Legal and professional fees
Depreciation
Financial expenses
Credit and merchant service
Bank & PayPal charges
Bad debts and recovery
Other expenses
Sundry expenses
Educational expenditure
Security charges		 50,651
35,856
19,337
20,027
19,533
57,603		 203,007
71,871
45,981
20,524
5,555
856,713
32,391
74,260
18,461
110,082		 151,012
34,026
18,968
34,115
21,747
55,165
75,915
(4,044)		 84,741
(5,933)
7,739
(2,184)		 31,520
(9,711)
13,750
18,641		 13,750
13,182
15,583
2,878
—		 21,551
2,027
1,412
101,895
6,890
1,297		 80,205
22,507
3,238
2020
£
1,438,845 1,590,637
2019
£
Per detailed income and expenditure account
Add: Mall Galleries Trading expenditure
Add: Catering receipts
Total expenditure on SOFA		 1,438,845
24,396
2,184		 1,590,637
81,070
9,711
1,465,425 1,681,418

The Federation of British Artists Limited 45

Analysis of expenditure Year to 31 December 2020

2019
£		 2020
£		 Subscriptions
£		 Exhibitions
£		 Commissions
and grants
£		 Non-society
exhibitions
£		 Cost of
generating
funds
£		 Education
£
Premises
Printing and stationery
Advertising exhibitions
Postage and telephone
Catering
Salaries
Audit
Legal and professional
Depreciation and loss on disposal
Financial expenses
Governance cost
Other expenses (include IT & System costs)
Total		 315,033
79,079
131,315
27,062
27,543
845,533
20,665
13,480
71,041
23,989
6,015
120,665		 203,008
59,623
67,434
21,428
5,307
856,713
17,967
17,792
74,260
19,305
2,432
120,156		 —
—
—
1,949
785
25,708
1,797
770
92
1,275
487
3,375		 75,113
43,251
21,058
11,995
2,456
347,802
5,390
3,690
17,177
3,482
851
54,071		 36,541
2,580
16,298
3,062
614
207,523
5,390
4,326
15,381
12,229
698
13,218		 75,113
13,792
30,078
3,136
1,446
272,229
5,390
4,348
18,136
2,319
396
47,456		 —
—
—
—
—
—
—
4,658
—
—
—
—		 16,241
—
—
1,286
6
3,451
—
—
23,474
—
—
2,036
1,681,418 1,465,425 36,238 586,336 317,860 473,839 4,658 46,494
Totalsyear to 31 December 2020 1,681,418 40,822 672,253 358,120 547,181 3,529 59,513

The Federation of British Artists Limited 46

Summary of operating income and expenditure Year to 31 December 2020

Income
£		 Expenditure
£		 Operating
surplus/
(deficit)
£
Subscriptions
Exhibitions
Commissions
Non-society exhibitions
Other operating income/expenditure		 165,845
209,497
309,880		 36,238
586,336
317,860		 129,607
(376,839)
(7,980)
685,222
112,186
328,867		 940,434
473,839
51,152		 (255,212)
(361,653)
277,715
1,126,275 1,465,425 (339,150)

The Federation of British Artists Limited 47