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2022-12-31-accounts

Federation of British Artists Limited (The)

Report of the Board and Consolidated Financial Statements

31 December 2022

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 19
Financial Statements
Consolidated statement of financial
activities 24
Balance sheets 25
Consolidated statement of cash flows 26
Principal accounting policies 27
Notes to the financial statements 32

The Federation of British Artists Limited 2

Legal and administrative information

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
Max Angus SWLA (appointed 11thOctober 2022)
Tessa Coleman NEAC
Mick Davies RBA
Eela Devani
Jonathan French
Jonathan Glasspool (Chairman)
David Glazebrook
Robin Hazlewood RI
Martin Howarth HH
Geoffrey Huband RSMA (resigned 11thOctober
2022)
Nicholas Pollard SWLA (resigned 11thOctober
2022)
Richard Rees PS
Carolyn Simpson RSMA (appointed 11thOctober
2022)
Executive Team Clare O’Brien (CEO)
Amy Huntington (Head of Exhibitions and Events,
resigned 17th June 2022)
Eamonn Bambury (Director of Finance and
Operations)
Addi Aegisdottir (Head of Sales and Marketing)
Auditor Buzzacott LLP
130 Wood Street
London EC2V 6DL
Solicitor Stone King LLP
16 St John’s Lane
London EC1M 4BS
Banker Barclays Bank plc
Level 27
1 Churchill Place
London E14 5HP

The Federation of British Artists Limited 3

Chairman’s foreword

This is my last foreword as Chairman of the FBA as I will be stepping down after the maximum two terms of office in October 2023. At the time of writing recruitment is underway to appoint my successor.

2022 proved to be a more challenging year than we originally anticipated as full recovery postpandemic has taken longer. Our key business areas did not return as quickly as presumed; in 2022 art sales dropped due to the cost-of-living crisis and not all our visitors had the confidence to resume visits to London. I am therefore pleased to write that the tide seems to be turning in the first half of 2023: there is an upward trend in all areas of the charity, art sales are more buoyant, visitor numbers are much higher and there is more interest and bookings for gallery hire and evening events from past and also new customers.

Many artists remain keen to be considered for selection in our art society exhibitions. The number of submissions continue to rise, supported by online videos by the presidents and members, and more targeted social media campaigns. I wish every artist who submits to an exhibition the very best of luck: the number of submissions mean our societies’ selectors have to be highly selective. It is therefore a real achievement to exhibit at the Mall Galleries.

The presidents of the nine art societies which form the Federation have been most supportive during my chairmanship not least in the last few more difficult years, I would like to thank them for their continued efforts to ensure relevance for their art society and for figurative art.

The FBA is making substantial investment in improving its online offering. Equally, we aim to improve the exhibition management service in the spacious and well-appointed Mall Galleries, I am confident that the organisation has a resilient and relevant future. I wish my successor the very best for a flourishing of figurative art.

I would also like to extend a special thanks to the FBA Board for helping me to navigate through these last few unexpected and difficult years, to Clare O’Brien for exemplary leadership of the team during Covid, and our staff for their resilience and never-ending enthusiasm.

Lastly, my thanks to all the artists who have exhibited at the Mall Galleries over the past 7 years I’ve been lucky enough to be associated with the FBA. The quality of your work provides great joy and inspiration to so many people.

Jonathan Glasspool Chairman

The Federation of British Artists Limited 4

Report of the Board 31 December 2022

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 2022. 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 27 to 31 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.

The 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.

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Report of the Board 31 December 2022

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 trustee’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 and the Head of Sales and Marketing 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; since Covid-19 both of these committees work have been managed by the Executive team.

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 2022

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 and the impact of the cost of living crisis

The combined impacts of Covid-19 and in 2022, the high inflation rate has had a significant impact on the business, however the healthy reserves, cash balance, the government job retention scheme and other government grants 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 2022 and our actions to mitigate the risk:

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Report of the Board 31 December 2022

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 require frequent vigilance.

The unusable parts of the Learning Centre have been closed and were impaired in the 2020 accounts.

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 2022

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. Achieving and maintaining the charity’s agreed level of free reserves is a priority monitored by the Board. This is even more in focus given the impact of Covid 19.

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 2022

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:

A simpler vision and mission was drawn up in 2022:

Vision:

Leader in contemporary figurative art, led by artists, for all.

Mission:

Mall Galleries empowers artists through a busy programme of exhibitions and events, prizes and awards, with a focus on figurative art.

Managed by the Federation of British Artists, a visual arts charity founded in 1961, Mall Galleries offers learning and engagement opportunities for everyone

The Federation of British Artists Limited 10

Report of the Board 31 December 2022

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 artist submissions to exhibitions, commissions on art sales, gallery rental, Friends, patrons, donations and sponsorship, and artist membership fees. We receive no regular government funding, other than Covid-19 support.

Review of Achievements and Performance

Exhibitions – a summary

A total of 27 exhibitions were hosted in 2022 between February and December:

x26 physically staged at Mall Galleries

These included: x8 Federation of British Artists, Society Annual Exhibitions x2 FBA Initiatives.

Gallery Hire: x17 x4 Art Fair and Auction Showcase x1 Art Prize x2 Solo Exhibitions x7 Group Exhibitions x1 International Group Exhibition x2 Product launch and filming

Full list of Exhibitions staged in 2022:

FBA Society Annual Exhibitions - The Pastel Society

FBA Initiatives - - FBA-Award Winning Artists

Art Fair and Auction Showcase

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Report of the Board 31 December 2022

Review of Achievements and Performance (continued)

Full list of Exhibitions staged in 2022: (continued)

Solo Exhibitions - Hannah Shergold - Whiskey Point (Mrs Zhang)

Art Prize

International Groups - Minerva Group Exhibitions - Wapping Group

Artworks

Federation of British Artists (FBA) exhibition highlights:

-- Two examples of gallery hire:

The Federation of British Artists Limited 12

Report of the Board 31 December 2022

Visitors to the Galleries and online digital engagement

Website:

Our Website is being upgraded in 2023 and we should see more positive results come through in 2023.

Education and Learning

A lively programme of talks and demonstrations were staged throughout the year including a recreation of life in the artist studio during the Pastel Society’s exhibition.

Supporters

We are very grateful to Mall Galleries Friends for their invaluable support.

Developing our Resources

Improvements to the infrastructure continue to be paramount.

We also upgraded our gallery hire packages to support active selling. We are well positioned as a professional and competitive gallery hire space going into 2023.

We also enhanced our processes supporting our portrait commission activity.

The online submission platform for artists has had a revision, this new iteration will both benefit the artist and the selection panel with simpler online processes.

Future Plans

In 2023, our aims are to recover revenue to pre-pandemic levels by:

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Report of the Board 31 December 2022

Future Plans (continued)

Financial review and policies

Results for the Year

The Federation made an operating loss in 2022 of £250,637 compared to a loss in 2021 of £93,591. These results include our share of the cost of the quinquennial works (repair and painting of the exterior of the building) of £89,871 which happens every 5 years.

Total income of £1,339,497 was £38,780 lower than in 2021 (£1,378,277). The galleries were open through-out the year, which was an improvement from the disrupted previous year. Income from Gallery and Evening Event hire was higher by £144,197 driven by having a full 12 months cycle for the first time since 2019. Commissions for society art sales were lower than the previous year, society art sales in the galleries and on-line were impacted by the cost of living crisis and the fact that disposable income was channelled away from buying art, a decrease of £118,424. Portrait commission income was lower by £18,424 coming from a very high year in 2021 as artists and clients were able to once again run physical sittings needed to complete their work. Our Membership income increased by £16,267, as in 2021 our Hesketh Hubbard members were only able to access classes for 6 months. Furlough income from the Government scheme generated £82,206 in 2021 and this income was not received in 2022 as the scheme had closed.

Our income from charitable activities were lower by £38,366, impacted by lower overall commissions, mainly from Society shows and Portrait commission and the closure of the furlough scheme. These losses were partially offset by higher Gallery Hire and Evening Event income as the galleries was open for rental all year round.

Overall expenditure was higher by £118,265 versus £1,471,868 in 2021. We have to report the cost of the Quinquennial works in 2022 as it happened for the first time in seven years, £89,871. We also had no rent holiday in 2022 from the Landlord as we were open for the full cycle £15,423, we got a credit in our service charge in 2021 which did not happen in 2022 £25,878. These increases were partially offset by having lower staff costs as some efficiencies were found. Charitable activities which makes up the majority of the expenditure followed the above explanations.

Salaries formed 51% of our total costs and were lower than in 2021 which was 56%. We appreciate the staff are the most valued asset of the organisation without which we cannot operate.

Our overall cash position of £396,599 at the end of December 2022 shows a reduction of £168,774 driven by the impact of Covid-19 on our Exhibition and Events hires, however the

The Federation of British Artists Limited 14

Report of the Board 31 December 2022

Results for the year (continued)

FBA is still in a good cash position which will give the Federation resilience in the face of ongoing impacts in 2023, post pandemic and the cost of living crisis.

Sources of Income and Expenditure

The Federation of British Artists Limited 15

Report of the Board 31 December 2022

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 25 years of age obtain free admission to all exhibitions.

Investment Policy

No investments were held by the Federation as at 31 December 2022. All future investments will be impacted by the need to use cash reserves to support the organisation during the recovery from the Covid-19 pandemic. Interest on funds held in bank deposit accounts was £253 (2021 - £41). Interest rates on cash deposits continue to be very low.

Reserves Policy and Going concern

The balance sheet shows total reserves of £541,775 (2021 - £792,411) consisting of restricted funds of £25,409 (2021 - £25,409) designated funds of £376,179 (2021 - £501,333) and free reserves of £140,187 (2021 - £265,669).

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

Designated funds consist of the premises maintenance fund for external painting and the tangible fixed assets fund. The planned work did not happen in 2020, however it did take place in 2022 where we used the brought forward fund of £80,000. We will begin a new premises maintenance fund from 2023 and plan to have at least £100,000 by 2027 when the next repairs are planned to happen.

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Report of the Board 31 December 2022

Reserves Policy and Going Concern (continue)

New designations of £17,579 were made to the fixed assets designated fund to provide new IT and office equipment and upgrades of the lighting and wiring. We also made a disposal of old

IT equipment of £13,315. The opening balance of £421,333 at 1 January 2022, the new designations of £17,579, minus the disposals of £13,315 less the released amount of £49,418 depreciation leaves a balance carried forward as at 31 December 2022 of £376,179. The tangible fixed assets fund recognises that the tangible fixed assets are required for the day-today operation of the charity and are not available for other purposes or general reserves.

Free reserves in the general fund amount to £140,187 (2021 - £265,669).

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 £397,000 at 2022 levels.

Due to the Covid-19 situation and the cost of living crisis our free reserves have taken a substantial hit over the last 3 years. However we are seeing more positive trends and our gallery hire and evening event business have come back to 2019 levels. We will remain vigilant to the external environment and have created a plan to build our reserves back up over a 5-year period, to a level that the trustees believe will secure the future of the Federation. 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.

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.

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

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Report of the Board 31 December 2022

The Board’s Statement of Responsibilities (continued)

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.

Signed on behalf of the board:

Trustee Approved by the board on: 27 June 2023

Jonathan Glasspool

Chairman

The Federation of British Artists Limited 18

Independent auditor’s report to the Members Year to 31 December 2022

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 2022 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.

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Independent auditor’s report to the Members Year to 31 December 2022

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:

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Independent auditor’s report to the Members Year to 31 December 2022

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:

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Independent auditor’s report to the Members Year to 31 December 2022

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.

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Independent auditor’s report to the Members Year to 31 December 2022

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: 18 August 2023

The Federation of British Artists Limited 23

Consolidated statement of financial activities Year to 31 December 2022

Notes Unrestricted
funds
£		 Restricted
funds
£		 2022
Total
funds
£		 Unrestricted
funds
£
Restricted
funds
£		 2021
Total
funds
£
Income and expenditure
Income from:
Donations and legacies
1
Sponsorship income
2
Investments
3
Charitable activities
. Subscriptions
4
. Exhibitions
. Commissions
. Gallery & Event Hire
Other income
5
Total income
Expenditure on:
Raising funds
6
Charitable activities
7
Total expenditure
Net expenditure
9
Net expenditure and net
movement in funds for the year
Reconciliation of funds:
Balances brought forward
at 1 January 2022
Balances carried forward
at 31 December 2022		 2,480
6,000
253
158,262
282,301
410,346
433,446
45,908		 500
—
—
—
—
—
—
—		 2,980
6,000
253
158,262
282,301
410,346
433,446
45,908		 3,056
5,000
41
141,266
292,091
493,567
289,249
152,455		 1,550
—
—
—
—
—
—
—		 4,606
5,000
41
141,266
292,091
493,567
289,249
152,455
1,338,996
4,808
1,584,824		 500
—
500		 1,339,496
4,808
1,585,324		 1,376,727
4,824
1,465,494		 1,550
—
1,550		 1,378,277
4,824
1,467,044
1,589,632
(250,636)		 500
—		 1,590,132
(250,636)		 1,470,318
(93,591)		 1,550

—		 1,471,868
(93,591)
(250,636)
767,002		 —
25,409		 (250,636)
792,411		 (93,591)
860,593
—
25,409		 (93,591)
886,002
516,366 25,409 541,775 767,002 25,409 792,411

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 24

Balance sheets 31 December 2022

Notes Consolidated Consolidated Federation
2022
£
2021
£
376,179
421,333
2
2
376,181
421,335
380,809
291,976
---
—
238,698
368,174
619,507
660,151
(416,101)
(289,077)
203,406
371,074
579,587
792,409
(37,814)
—
541,773
792,409
25,409
25,409
376,179
501,333
140,185
265,667
541,773
792,409		 Federation
2022
£
2021
£
376,179
421,333
2
2
376,181
421,335
380,809
291,976
---
—
238,698
368,174
619,507
660,151
(416,101)
(289,077)
203,406
371,074
579,587
792,409
(37,814)
—
541,773
792,409
25,409
25,409
376,179
501,333
140,185
265,667
541,773
792,409

2022
£		 2021
£		 2022
£
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 assets less current
liabilities
Creditors:amounts due after more
than one year
16
Total net assets
The funds of the group/charity:
Restricted funds
17
Unrestricted funds
. Designated funds
18
. General fund
376,179

—		 421,333
—		 376,179
2		 421,333
2
376,179

228,286
4,463
396,599		 421,333
93,609
8,487
565,373		 376,181
380,809
---
238,698		 421,335
291,976
—
368,174
629,348

(425,938)		 667,469
(296,392)		 619,507
(416,101)		 660,151
(289,077)
203,410 371,078 203,406 371,074
579,589

(37,814)
541,775		 792,411
—
792,411		 579,587
(37,814)
541,773		 792,409
—
792,409

25,409

376,179
140,187		 25,409
501,333
265,669		 25,409
376,179
140,185		 25,409
501,333
265,667
541,775 792,411 541,773 792,409

Approved by the Board and signed on its behalf by:

Trustee

Approved on: 27 June 2023

Company Registration Number 683275 (England and Wales)

Jonathan Glasspool

Chairman

The Federation of British Artists Limited 25

Consolidated statement of cash flows 31 December 2022

Notes
2022
£		 2021
£
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 2022
B
Cash and cash equivalents at 31 December 2022
B

**(151,538) **		 (81,536)


253
(17,579)
90		 41
(50,455)
—
**(17,236) ** (50,414)

(168,774)


565,373
 (131,950)
697,323

396,599		 565,373

Notes to the statement of cash flows for the year to 31 December 2022.

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

activities
2022
£		 2021
£
Net movement in funds (as per the statement of financial activities)
Adjustments for:
Depreciation charge
Dividends and interest from investments
Decrease (increase) in stocks
Increase in debtors
Increase (decrease) in creditors
Net cash(used in) provided by operating activities		 (250,637)
62,645
(253)
4,024
(134,677)
167,360		 (93,591)
70,314
(41)
4,990
(26,979)
(36,228)
(151,538) (81,536)

B Analysis of cash and cash equivalents

Analysis of cash and cash equivalents
2022
£		 2021
£
Cash at bank and in hand
Total cash and cash equivalents		 396,599 565,373
396,599 565,373

The Federation of British Artists Limited 26

Principal accounting policies 31 December 2022

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 2022.

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 FRS 102 SORP 2015’), 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 for the period of one year from the date of approval of these financial statements.

The Federation of British Artists Limited 27

Principal accounting policies 31 December 2022

Assessment of going concern (continued)

Covid-19 has had a noticeable impact on the charity’s finances in the years to 31 December 2020, 2021 and this impact along with the cost of living crisis has also impacted 2022. 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. Expenditure has also been impacted by Covid-19, as activity has been lower, running and exhibition costs have also been lower. During the pandemic years the Government job retention scheme has assisted in offsetting costs in relation to furloughed staff and we have also benefitted from Government grants to support local galleries. Rent and rates holidays and other premises costs savings have had a positive impact on running costs. Gallery Hire and Evening Event income made a comeback in 2022 and our latest estimate for 2023 is for it to come back to 2019 levels.

Free reserves at the 31 December stood at £140,187 (2021 - £265,667). This level of reserves is below the three month requirement stipulated by the trustees of £397,000 based on 2022 accounts. As the free reserves have fallen below this level as a result of the pandemic and cost of living crisis, the charity plans to build back to a level that the trustees believe will secure the future of the Federation in its 5 year plan. A latest estimate and cash flow has been drawn up for 2023 and 2024 based on a more normal year in 2023, with continued strong sales on-line to support our sales in the galleries. The trustees also note that the FBA will also get a new web site by October 2023 and this will allow it to offer a much better all-round service which will boost art sales and Gallery and Event hires for 2024.

The trustees have reviewed and approved this and concluded, in the light of our current bank balance, that the charity will be able to continue to operate in the exceptional circumstances created post the pandemic. However we are seeing more positive trends and our gallery hire and evening event business have come back to 2019 levels. We will remain vigilant to the external environment and have created a plan to build our reserves back to a level that the trustees believe will secure the future of the Federation. 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

The Federation of British Artists Limited 28

Principal accounting policies 31 December 2022

Income recognition (continued)

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.

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:

The Federation of British Artists Limited 29

Principal accounting policies 31 December 2022

Expenditure recognition (continued)

All expenditure is stated inclusive of irrecoverable VAT.

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.

Leasehold Improvements Over the life of the lease
Furniture fixtures and fittings 20% to 33.33% on a straight line basis
Office equipment 20% to 33.33% on a straight line basis

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.

The Federation of British Artists Limited 30

Principal accounting policies 31 December 2022

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.

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 31

Notes to the financial statements Year to 31 December 2022

1 Income from donations and legacies

Unrestricted
funds
£
—
2,480
2,480		 Restricted
funds
£		 2022
Total
funds
£
500
2,480
2,980		 Unrestricted
funds
£
—
3,056
3,056		 Restricted
funds
£
1,550
—
1,550		 2021
Total
funds
£
1,550
3,056
4,606
Patrons
Trusts and foundations
Total funds		 500
—
500

2 Income from sponsorship

Unrestricted
funds
£		 Restricted
funds
£
—
—		 2022
Total
funds
£
6,000
6,000		 Unrestricted
funds
£
5,000
5,000		 Restricted
funds
£		 2021
Total
funds
£
Sponsorship income
Total funds		 6,000 — 5,000
6,000 — 5,000

3 Income from investments

Unrestricted
funds
£		 Restricted
funds
£		 2022
Total
funds
£		 Unrestricted
funds
£		 Restricted
funds
£		 2021
Total
funds
£
Bank interest receivable
Total funds		 253 — 253 41 — 41
253 — 253 41 — 41

4 Income from charitable activities

Unrestricted
funds
£		 Restricted
funds
£		 2022
Total
funds
£
105,342
52,920
158,262
282,301
410,346
433,446
1,284,356		 Unrestricted
funds
£		 Restricted
funds
£		 2021
Total
funds
£
Subscriptions
. Members
. Friends and Patrons
Exhibitions
Commissions
Gallery & Event Hire
Total funds		 105,342
52,920		 —
—		 89,075
52,191		 —
—
89,075

52,191
158,262 — 141,266 —
141,266
282,301
410,346
433,446		 —
—
—		 292,091
493,567
289,249		 —
—
—
292,091

493,567

289,249
1,284,356 — 1,216,174 —
1,216,174

The Federation of British Artists Limited 32

Notes to the financial statements Year to 31 December 2022

5 Other income

Other income
Sale of books and
materials
Catering receipts
CJRS grant
Miscellaneous income
Total funds		 Unrestricted
funds
£		 Restricted
Funds
£		 2022
Total
funds
£		 Unrestricted
funds
£		 Restricted
Funds
£		 2021
Total
funds
£
14,625
—
—
31,284		 —
—
—
—		 14,625
—
—
31,284		 10,886
—
82,206
59,363		 —
—
—
—		 10,886
—
82,206
59,363
45,908 — 45,908 152,455 — 152,455

6 Expenditure on raising funds

Unrestricted
funds
£		 Restricted
Funds
£		 2022
Total
funds
£		 Unrestricted
funds
£		 Restricted
Funds
£		 2021
Total
funds
£
Cost of raising funds
Total funds		 4,808 — 4,808 4,824 — 4,824
4,808 — 4,808 4,824 — 4,824

7 Expenditure on charitable activities

Unrestricted
funds
£		 Restricted
Funds
£		 2022
Total
funds
£		 Unrestricted
funds
£		 Restricted
Funds
£		 2021
Total
funds
£
Membership costs
Exhibitions by Member
Societies
Commissioned work
Gallery & Event Hire
Education
Total funds		 43,545
436,095
553,940
510,652
40,592		 —
—
—
—
500		 43,545
436,095
553,940
510,652
41,092		 52,656
459,673
534,711
405,530
12,925		 —
—
—
—
1,550		 52,656
459,673
534,711
405,530
14,475
1,584,824 500 1,585,324 1,465,494 1,550 1,467,044

8 Support costs

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

Membership
costs
£		 Exhibitions
by
member
societies
£		 Commissioned
work
£		 Gallery &
Event Hire
£		 Education
£		 2022
Total
funds
£
Premises
Depreciation
IT/Software & IT
enhancements
Governance costs
(see below)		 —
627
430
1,093
98,640

15,099
10,347

17,013
143,380

22,860
15,166

20,563		 151,452
24,146
16,547
32,016		 —
—
500
—		 393,472
62,732
42,990
70,685
2,150
141,099
201,969		 224,162 500 569,879

The Federation of British Artists Limited 33

Notes to the financial statements Year to 31 December 2022

8 Support costs (continued)

Membership
costs
£		 Exhibitions
by
member
societies
£		 Commissioned
work
£		 Non
Society
exhibitions
£		 Education
£		 2021
Total
funds
£
Premises
Depreciation
IT/Software & IT
enhancements
Governance costs
(see below)		 —
703
463
1,125
69,388

18,401
12,115

18,032
117,273

32,288
20,160

26,381		 68,724
18,922
12,458
23,366		 —
—
1,098
—
255,385

70,314
46,295
68,904
2,291
117,937
196,103		 123,469 1,098
440,898

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

Included within support costs are governance costs as detailed below:

2022
Total
funds
£		 2021
Total
funds
£
Auditor’s remuneration
Legal and professional
Other governance costs		 20,570
48,084
2,032		 18,375
48,236
2,293
70,686 68,904

9 Net expenditure for the year

This is stated after charging:

2022
Total
funds
£		 2021
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		 811,844
19,150
1,420
62,645
123,387		 831,509
17,125
1,250
70,314
107,964

During the year the charity received a rent concession from Crown Estate totalling £nil (2021 - £15,423).

The Federation of British Artists Limited 34

Notes to the financial statements Year to 31 December 2022

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

2022
£		 2021
£
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
Gallery & Event hire
Education		 727,750
68,004
16,090		 748,458
66,572
16,479
811,844 831,509
40,592
243,553
276,027
211,080
40,592		 49,714
288,193
247,467
233,209
12,925
811,844 831,509

Staff costs are ordinarily allocated based on staff time spent on different activities and fundraising.

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

Averageheadcount Averageheadcount Fulltime equivalent Fulltime equivalent
2022 2021 2022 2021
Subscriptions
Exhibitions
Commissions
Gallery & Evening Event hire
Education		 2
11
12
9
2		 2
11
9
9
—		 0.90
5.40
6.12
4.68
0.90		 1.38
7.97
6.85
6.45
0.36
36 31 18.00 23.00

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

2022 2021
£60,000 - £70,000
£70,000 - £80,000
£80,000 - £90,000		 1
—
1		 1
—
1

£6,009 (2021 - £4,080) pension contributions were made on behalf of these member of staff in 2022.

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 £252,472 (2021 - £241,454).

The Federation of British Artists Limited 35

Notes to the financial statements Year to 31 December 2022

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 (2021 - £nil). Travel and printing expenses amounting to £nil were reimbursed to no Trustees (2021 - £nil).

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 2022 are shown below:

results for the year to 31 December 2022 are shown below:
Profit and loss account 31
December
2022
£		 31
December
2021
£
Turnover
Cost of sales
Gross profit
Administrative expenses
Net profit
Amount to be distributed to the Federation under Gift Aid
Retained in subsidiary		 129,435
(10,865)		 83,308
(12,692)
118,570
(35,257)		 70,616
(27,383)
83,313
(83,313)		 43,233
(43,233)
— —

The £2 issued share capital equalled the net assets of the company as at 31 December 2022.

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.

The Federation of British Artists Limited 36

Notes to the financial statements Year to 31 December 2022

13 Tangible fixed assets

Tangible fixed assets
Federation and Group
i		 Leasehold
mprovements
£

Furniture
fixtures and
fittings
£		 Office
equipment
£		 Total
£
Cost
At 1 January 2022
Additions
Disposals
At 31 December 2022
Depreciation
At 1 January 2022
Charge for the year
Disposals
At 31 December 2022
Net book values
At 31 December 2022
At 31 December 2021		 1,105,383
9,660
—		 94,974
1,974
—		 88,886
5,945
(13,315)		 1,289,243
17,579
(13,315)
1,115,043 96,948 81,516 1,293,507
716,698
49,987
—		 71,679
7,353
—		 79,533
5,305
(13,227)		 867,910
62,645
(13,227)
766,685 79,032 71,611 917,328
348,358 17,916 9,905 376,179
388,686 23,295 9,352 421,333

14 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
2022
£		 2021
£		 2022
£		 2021
£
Trade debtors
Amounts due from subsidiary undertaking
Other debtors
Prepayments and accrued income		 185,294
—
—
42,992		 53,543
—
25,000
15,067		 180,643
157,259
—
42,907		 44,662
207,332
25,000
14,982
228,286 93,609 380,809 291,976

16 Creditors: amounts falling due within one year

Consolidated Consolidated Federation Federation
2022
£		 2021
£		 2022
£		 2021
£
61,564
—
56,910
128,256
42,345
289,075
Trade creditors
Quinquennial cost to Crown Estate
Social security and other taxes
Deposits and fees received in advance
Other creditors and accruals		 83,747

30,251
69,576
200,030
42,334		 62,019
—
58,347
128,356
47,670		 84,059
30,251
68,746
195,430
37,615
425,938 296,392 416,101

The Federation of British Artists Limited 37

Notes to the financial statements Year to 31 December 2022

16 Creditors: amounts falling due within one year (continued)

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

Deferred income brought forward
Additional income deferred during the year
Brought forward funds released in the year
Deferred income carried forward at 31 December 2022		 2022
£		 2021
£
128,356
200,030
(128,356)		 84,609
103,056
(59,309)
200,030 128,356

Creditors: amounts falling due after more than one year

Consolidated Consolidated Federation Federation
2022
£		 2021
£		 2022
£		 2021
£
Quinquennial cost to Crown Estate
37,814		 — 37,814 —
37,814 — 37,814 —

17 Restricted fund

Restricted fund
Federation and Group At 1
January
2022
£		 Income
£		 Expenditure
£		 Transfers
£		 At 31
December
2022
£
Education fund 25,409 500 (500) — 25,409
25,409 500 (500) — 25,409
Federation and Group At 1
January
2021
£		 Income
£		 Expenditure
£		 Transfers
£		 At 31
December
2021
£
Education fund 25,409 1,550 (1,550) — 25,409
25,409 1,550 (1,550) — 25,409

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

17 Designated funds

Designated funds
Federationand Group At 1
January
2022
£		 New
Designations
£
—
17,579
17,579		 Utilised/
Released
£		 At 31
December
2022
£
Premises maintenance fund
Tangible fixed assets fund		 80,000
421,333		 (80,000)
(62,733)		 —
376,179
501,333 (142,733) 376,179
Federationand Group At 1
January
2021
£		 New
Designations
£
—
50,455
50,455		 Utilised/
Released
£		 At 31
December
2021
£
Premises maintenance fund
Tangible fixed assets fund		 80,000
441,192		 —
(70,314)		 80,000
421,333
521,192 (70,314) 501,333

The Federation of British Artists Limited 38

Notes to the financial statements Year to 31 December 2022

17 Designated funds (continued)

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. We used this fund in 2022 and will build back again from 2023.

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.

18 Analysis of net assets between funds

Group General
Fund
£		 Designated
Funds
£		 Restricted
Funds
£		 Total
2022
£
Fund balances at 31 December 2022
are represented by:
Fixed assets
Current assets
Creditors: amounts falling due within one
year
Creditors: amounts due after more than
one year
Total net assets		 —
603,939
(425,938)
(37,814)
140,187		 376,179
—
—
—
376,179		 —
25,409
—
—
25,409		 376,179
629,348
(425,938)
(37,814)
541,775
Group General
Fund
£		 Designated
Funds
£		 Restricted
Funds
£		 Total
2021
£
Fund balances at 31 December 2021
are represented by:
Fixed assets
Current assets
Creditors: amounts falling due
within one year
Total net assets		 —
562,060
(296,392)		 421,333
80,000
—		 —
25,409
—		 421,333
667,469
(296,392)
265,669 501,333 25,409 792,411
Federation General
Fund
£		 Designated
Funds
£		 Restricted
Funds
£		 Total
2022
£
Fund balances at 31 December 2022
are represented by:
Fixed assets
Current assets
Creditors: amounts falling due within one
year
Creditors: amounts due after more than
one year
Total net assets		 2
594,098
(416,101)
(37,814)		 376,179
—
—
—		 —
25,409
—
—		 376,181
619,507
(416,101)
(37,814)
140,185 376,179 25,409 541,773

The Federation of British Artists Limited 39

Notes to the financial statements Year to 31 December 2022

18 Analysis of net assets between funds (continued)

Federation General
Fund
£		 Designated
Funds
£		 Restricted
Funds
£		 Total
2021
£
Fund balances at 31 December 2021
are represented by:
Fixed assets
Current assets
Creditors: amounts falling due
within one year
Total net assets		 2
554,742
(289,077)		 421,333
80,000
—		 —
25,409
—		 421,335
660,151
(289,077)
265,667 501,333 25,409 792,409

19 Leasing commitments

At 31 December 2022 the Federation had future minimum commitments under operating leases on land and buildings as follows:

Paymentswhich falldue: 2022
£		 2021
£
Within one year
Within two to five years
After five years		 123,387
493,548
349,596		 123,387
493,548
472,983
966,531 1,089,918

20 Capital commitments

At 31 December 2022, the charity had capital commitments of £nil (2021 - £nil).

21 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.

22 Related party transactions

The charity received commission and Trustees hire fees totalling £25,444 (2021 - £17,545) 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 2022, an amount of £nil (2021 - £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 2022 or 2021.

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

The Federation of British Artists Limited 40

Notes to the financial statements Year to 31 December 2022

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 41