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2022-04-05-accounts

REGISTERED CHARITY NUMBER: 212667

ARTISTS GENERAL BENEVOLENT INSTITUTION Financial Statements for the Year Ended 5 April 2022

Xeinadin Auditing Chartered Accountants and Statutory Auditors Beckett House

36 Old Jewry London EC2R 8DD

ARTISTS GENERAL BENEVOLENT INSTITUTION

Contents of the Financial Statements for the year ended 5 April 2022

Page
Report of the Trustees 1 to 7
Report of the Independent Auditors 8 to 10
Statement of Financial Activities 11
Balance Sheet 12
Cash Flow Statement 13
Notes to the Cash Flow Statement 14
Notes to the Financial Statements 15 to 22
Detailed Statement of Financial Activities 23 to 24

ARTISTS GENERAL BENEVOLENT INSTITUTION

Report of the Trustees for the year ended 5 April 2022

The Trustees present this report with the financial statements of the charity for the year ended 5th April 2022.

The Trustees have adopted the provisions of 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 UK and Republic of Ireland (FRS 102) (effective 1st January 2019).

OBJECTIVES AND ACTIVITIES

Objectives and aims

The objective of the Artists' General Benevolent Institution (the "AGBI") is to provide a grant-giving programme that assists professional artists, whose work has been known to the public for some time who are unable to work and earn due to accident, illness or older age, and their widows/widowers and dependents. The overall charitable aim of the AGBI is the relief of poverty and the alleviation of stress in the professional artists who meet its criteria and to seek additional funding to further these aims.

Statement of Public Benefit

The Trustees confirm that the AGBI has complied with the duty under section 17 of the Charities Act 2011 to have due regard to the Public Benefit Guidance published by the Charity Commission in determining the activities undertaken by the charity.

The Trustees consider the activities of the AGBI have provided public benefit by means of the relief of poverty provided by the charity's grants programme, and by the support, information and guidance that it provides to the applicants whom it supports.

The Achievement and Performance section of this report illustrates the activities which the charity carries out for the public benefit. The activities of the AGBI are exclusively charitable for the benefit of its applicants.

Grantmaking Policy

The AGBI provides grants for financial assistance to professional artists in need who through accident, illness or old age, are unable to work and earn a living, and their dependents who are in need and living in England, Wales or Northern Ireland (with Scotland having its own fund).

Applications are initially made by telephone, post or email with a full curriculum vitae, listing all training, exhibitions in professional galleries, and teaching experience (if any) at GCSE, A-Level or above.

All new applicants are assessed by the Secretary to establish the veracity and accuracy of their application and to obtain examples of their work and related information, together with letters from two referees and a letter from their GP or consultant evidencing their medical situation (if applicable) for examination by the AGBI's Medical Advisor; they are then assessed by the Artists Council at its next meeting when their application will be considered.

Grants are awarded by the AGBI for a period of one year; after which, if appropriate, the applicant is invited to submit a further application and, if justified, another grant is provided for a further year at the sole discretion of the Artist Council. Grants will only be continued if the need for assistance persists and the applicant continues to meet the charity's criteria. Grants will immediately stop should an applicant die and no surviving partner or dependent children remain.

Grants are never awarded to fund exhibitions, any legal difficulties or, in the case of career difficulties, loss of earnings due to poor sales or expenses associated with exhibitions.

The AGBI manages a restricted fund specifically to assist the orphans of eligible professional artists. This fund is called the AGBI Children's Fund. The revised bye-laws (2022) defined an orphan as a child of no more than the age of 25 who remains in full-time education and who has lost the support of one or both parents through death, absence or disability.

Page 1

ARTISTS GENERAL BENEVOLENT INSTITUTION

Report of the Trustees

for the year ended 5 April 2022

ACHIEVEMENT AND PERFORMANCE

Charitable Objectives

Number of Applicants and Grants

As stated above, the charitable objective of the AGBI is to provide a grant-giving programme that assists professional artists who cannot work due to personal accident, serious illness or old age.

In the financial year 2021/22, the AGBI supported a total of 84 professional artists in need and their dependents. This was a decrease on the previous financial year when the AGBI supported 107 artists in need. The AGBI assessed all 84 applicants on a case-by-case basis and committed to provide total funding of £270,473.

Of the 84 artists helped, 56 received continuing help (compared to 75 in previous year), seven were new applicants (same number as previous year), seven distinguished artists received the AGBI Jubilee Award in recognition of their contribution to the art world (compared to nine in the previous year), and 14 children were supported by the AGBI Children's Fund (compared to 16 in the previous year).

The Trustees and members of the Artists Council are sorry to report that two applicants died during the financial year. The decrease in numbers of applicants receiving continuing support was due to higher-than-normal numbers not needing our support, as either their health improved or they no longer continued to meet the charity's criteria.

Fundraising Activities

The AGBI's Stewards raised £30,952 of donations in 2021/22. The commitment and fundraising efforts of the Stewards, who not only raise funds but identify potential applicants from within their networks, enable the AGBI to continue helping artists in need. The AGBI wishes to express its appreciation and thank to all its Stewards.

The AGBI received £351,500 in legacies received or bequeathed. Donations in memory of relatives, friends and fellow artists provide a poignant commemoration and the AGBI is very grateful for these donations.

FINANCIAL REVIEW

Principal Funding Sources

The AGBI relies on three principal sources of income: voluntary income which includes annual subscriptions, one-off donations and amounts raised by its Stewards; legacies; and investment income generated from its investment portfolios.

The AGBI's broad financial objective continues to be to maximise the total level of its voluntary and investment income each year in order to enable the AGBI to meet the needs of eligible applicants.

During the financial year to 5th April 2022, the AGBI's incoming resources (not including legacies) totalled £250,036, compared to £309,885 in the previous year.

Voluntary income in this period totalled £68,552, compared to £63,987 in the previous financial year.

Legacies in this period totalled £351,500, compared to £277,029 in the previous financial year.

Investment income in this period (net of investment management fees) amounted to £82,749, compared to £186,053 in the previous financial year.

Results for Period and Funds Carried Forward

The level of grants paid and associated costs decreased from £619,262 to £499,166.

This resulted in a surplus of £18,755 prior to unrealised net gains on investments which totalled £940,546.

The funds carried forward to the financial year 2021/22 amounted to £15,920,583, which is an increase on the previous year when it was £14,961,282.

Page 2

ARTISTS GENERAL BENEVOLENT INSTITUTION

Report of the Trustees for the year ended 5 April 2022

FINANCIAL REVIEW

Investment Policy and Performance

Investment Policy

The AGBI's objective is to secure a total return on the charity's investments that enables current demands from applicants to be appropriately satisfied and that supports its ability to meet future demands through long term growth of the charity's assets.

The AGBI is a long-term investor and has determined that the best policy for the AGBI is to continue holding a mixed portfolio of equities, bonds, cash and other investments with the aim of providing sufficient returns, whether from income or from the realisation of investments, to support the costs of its grant-making programme and to secure an increase in the value of the portfolio to support the AGBI's activities in future.

Investment Committee

The AGBI has delegated responsibility for managing its investment portfolio to an Investment Committee which reports on performance regularly to the Trustees.

Following an investment review in 2020/2021 in which the Trustees accepted the recommendation of the Investment Committee to change managers, the investment portfolios were transferred from Cazenove Capital to Veritas Investment Partners and Waverton Investment Management, who now manage broadly equal portions of the AGBI's investment portfolio.

The Investment Committee received quarterly investment reports from Veritas Investment Partners and Waverton Investment Management on their performance.

The Investment Committee met five times during the financial year to review the performance of the new investment managers and to ensure that income from the portfolios is available to maintain the AGBI's grant programme and to support the operational costs of the charity after taking account of the charity's other sources of income.

Investment Performance

In the financial year 2021/22, the yield on the investments managed by the investment managers, after fees, was £82,749 or 0.66% (based on market values at the year-end).

Reserves Policy

A minimum of £500,000 of cash is held in an easy access account. These funds are sufficient to cover the running costs for the AGBI grant programme for the following 12 months.

As at 5th April 2022, the AGBI's total funds amounted to £15,920,583, all of which were unrestricted apart from the AGBI Children's Fund which totalled £2,036,019. These funds allow the charity to continue its current activities and to support a sound financial basis for the future.

FUTURE DEVELOPMENTS

Property Update

As reported in previous annual reports, the AGBI acquired a freehold property at 15 Churton Street, London, SW1V 2LY, on 23rd December 2019 after several years of consideration and planning.

This building was fully refurbished during 2021/22 and will become both the charity's offices from which the AGBI staff will operate and the location for a range of activities to assist in diversifying and expanding the AGBI's sources of revenue. The building also contains a self-contained flat which can either be sold or be retained as a source of rental income.

Page 3

ARTISTS GENERAL BENEVOLENT INSTITUTION

Report of the Trustees for the year ended 5 April 2022

STRUCTURE, GOVERNANCE AND MANAGEMENT Governing Document

The AGBI is a registered charity, number 212667. It was founded in 1814 by members of The Royal Academy of Arts and incorporated by Royal Charter in 1842.

The charity's governing document comprises the bye-laws which were revised during 2021/22 and agreed at the annual general meeting on 7th January 2022. The Royal Charter was not amended.

Governance and Management

During the financial year 2021/22 the AGBI completed its Governance Review assisted by its legal counsel, Joanna Bussell of Winckworth Sherwood LLP. The Governance Review was delayed during the COVID lockdown and took longer than expected. However, the recommendations from the Governance Review were implemented during the financial year 2021/22.

As at 5th April 2022, the AGBI was governed by the revised bye-laws (2022) which recommended that the Board of Trustees should be a minimum of three and a maximum of nine and that these should consist of (to the extent possible) the President (Chair of the Trustees), the Vice President (Vice-Chair), the Honorary Treasurer and up to six other Trustees. The Trustees are to meet at least four times a year and separately from the various sub-committees.

The bye-laws define the revised procedure for the retirement and appointment of Trustees. The bye-laws (2022) state that at each annual general meeting after the first three years of the adoption of the new bye-laws one third of the Trustees must retire from office. The Trustees retiring from office shall be those who have been longest in office since their last appointment. A retiring Trustee is eligible for reappointment but can only be reappointed for three consecutive terms (a term being three years) before required to stand down for a period of 12 months before becoming eligible for reappointment.

The Trustees established a sub-committee referred to as the Artists Council which will meet ten times a year and is responsible for assessing all applications against specific criteria and agreeing the level of support on a case-by-case basis. The Artists Council is comprised of a minimum of 12 members, includes individuals with a range of skills and is representative of fine art in all its forms.

The Investment Committee consists of a minimum of five members: they are the Honorary Treasurer (Chair of the Investment Committee), the President and three external investment experts. The Investment Committee meets at least twice a year or such number as is reasonably decided by the Honorary Treasurer. The members receive quarterly reports on the performance of the AGBI's investments from the investment managers and monitor the managers on behalf of the charity.

The bye-laws include a clear statement that the charity will at all times be artist-led and the Trustees will take all reasonable steps to ensure this is reflected in the composition of both the Trustees and the Artists Council.

The Trustees have the power to make honorary appointments including a Patron, an Honorary President (or Honorary Presidents) and Honorary Retired Members, none of which are Trustees of the charity.

The day-to-day administration of the grants and the processing of the applications prior to consideration by the Artists Council is delegated by the Trustees to the Secretary.

Newly appointed Trustees receive an induction pack containing details of the structure of the charity, a copy of the byelaws (2022), the Charity Commission publication 'The Essential Trustee, what you need to know, what you need to do (CC3)' and the charity's 'Conflict of Interest Policy' which was adopted in 2016; and are supported by the other Trustees and the Secretary.

Newly appointed members of the Artists Council receive a more concise induction pack containing the main information needed to perform the role.

The AGBI is registered with the Information Commissioner's Office (ICO) in order to comply with General Data Protection Regulation (2018). The AGBI's ICO reference ZA353188.

Page 4

ARTISTS GENERAL BENEVOLENT INSTITUTION

Report of the Trustees for the year ended 5 April 2022

The AGBI is a member of the Association of Charitable Organisations (ACO), which is the national UK umbrella body for charities that give grants and support to individuals in need. Founded in 1946, the ACO is a powerful and growing network of over 100 members, all joined by the common goal of offering support to help people in need.

REFERENCE AND ADMINISTRATIVE DETAILS Registered Charity number 212667

Principal address 15 Churton Street London SW1V 2LY

Telephone 020 7734 1193

Royal Patron, Honorary Appointments, Trustees and Committee Members

Royal Patron HRH The Prince of Wales

Honorary President Rebecca Salter, President of the Royal Academy of Arts

President Nicola Hicks MBE

Honorary Treasurer Patrick Crawford CB

Trustees Stephen Bartlett (Re-appointed 7th January 2022) Patrick Crawford CB (Re-appointed 7th January 2022) Richard Gault (Re-appointed 7th January 2022) Nicola Hicks MBE – Chair of the Trustees (Re-appointed 7th January 2022)

The Artists Council Stephen Bartlett Isabel Bingley Francis Bowyer PPRWS NEAC The Viscountess Bridgeman CBE FRSA Patrick Crawford CB Christian Furr Richard Gault Charlotte Halliday RWS NEAC Nicola Hicks MBE Jonathan Horwich Sam McKechnie Professor Brendan Neiland William Packer Hon FRCA NEAC Veronica Ricks Jamie Routley Susie Thomson

Page 5

ARTISTS GENERAL BENEVOLENT INSTITUTION

Report of the Trustees for the year ended 5 April 2022

Investment Committee Patrick Crawford CB (Chair of the Investment Committee) Rupert Caldecott Dahlia Dana Nicola Hicks MBE Charles White

Medical Advisor Dr Michael Gormley

Honorary Retired Members Gus Cummins RA David Gentleman RDI Ken Howard OBE RA William Pye Jacqueline Rizvi RBA RWS NEAC

Secretary to the Trustees and Chief Executive Officer Brad Feltham

Assistant Secretary Barbara Galloway

Financial Controller Jacki Haggard

Auditors Xeinadin Auditing Chartered Accountants and Statutory Auditors Beckett House 36 Old Jewry London EC2R 8DD

Bankers Coutts and Co Commercial Banking 440 The Strand London WC2R 0QS

Solicitors Winckworth Sherwood LLP Minerva House 5 Montague Close London SE1 9BB

Investment Managers Cazenove Capital (Until October 2021) 1 London Wall Place London EC2Y 5AU

Page 6

ARTISTS GENERAL BENEVOLENT INSTITUTION

Report of the Trustees for the year ended 5 April 2022

Investment Managers Veritas Investment Partners (appointed June 2021) Riverside House 2a Southwark Bridge Road London SE1 9HA

Waverton Investment Management (appointed June 2021) 16 Babmaes Street London SW1Y 6AH

Insurers Hiscox Insurance Company Limited, 1 Great St. Helens, London, EC3A 6HX.

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The trustees are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).The law applicable to charities in England and Wales, the Charities Act 2011, Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed 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 charity and of the incoming resources and application of resources, including the income and expenditure, of the charity for that period. In preparing those financial statements, the trustees are required to

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Approved by order of the board of trustees on ............................................. and signed on its behalf by:

........................................................................ N Hicks MBE - Trustee

Page 7

Report of the Independent Auditors to the Trustees of Artists General Benevolent Institution

Opinion

We have audited the financial statements of Artists General Benevolent Institution (the 'charity') for the year ended 5 April 2022 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charity 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 charity'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 trustees with respect to going concern are described in the relevant sections of this report.

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 Report of the Independent Auditors 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 this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:

Page 8

Report of the Independent Auditors to the Trustees of Artists General Benevolent Institution

Responsibilities of trustees

As explained more fully in the Statement of Trustees' Responsibilities, the trustees are responsible for the preparation of the financial statements which 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 charity'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 charity or to cease operations, or have no realistic alternative but to do so.

Our responsibilities for the audit of the financial statements

We have been appointed as auditors under Section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

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 a Report of the Independent Auditors 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.

-Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

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 Report of the Independent Auditors.

Page 9

Report of the Independent Auditors to the Trustees of Artists General Benevolent Institution

Use of our report

This report is made solely to the charity's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditors' 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 charity and the charity's trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Xeinadin Auditing Chartered Accountants and Statutory Auditors Beckett House 36 Old Jewry London EC2R 8DD

Date: .............................................

Page 10

ARTISTS GENERAL BENEVOLENT INSTITUTION

Statement of Financial Activities for the year ended 5 April 2022

Notes
INCOME AND ENDOWMENTS FROM
Donations and legacies
3
Other trading activities
4
Investment income
5
Total
EXPENDITURE ON
Raising funds
6
Charitable activities
7
Grants paid and associated costs
Total
Net gains on investments
NET INCOME
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD		 Unrestricted
fund
£
420,052
10,836
138,479
569,367
72,819
431,641
504,460
806,288
871,195
13,013,369
13,884,564
Restricted
funds
£
-
-
32,169
32,169
10,796
67,525
78,321
134,258
88,106
1,947,913
2,036,019		 2022
Total
funds
£
420,052
10,836
170,648
601,536
83,615
499,166
582,781
940,546
959,301
14,961,282
15,920,583		 2021
Total
funds
£
341,016
4,549
241,349
586,914
41,574
619,262
660,836
2,202,721
2,128,799
12,832,483
14,961,282

The notes form part of these financial statements

Page 11

ARTISTS GENERAL BENEVOLENT INSTITUTION

Balance Sheet 5 April 2022

Notes
FIXED ASSETS
Tangible assets
13
Investments
14
CURRENT ASSETS
Stocks
15
Debtors
16
Cash at bank and in hand
CREDITORS
Amounts falling due within one year
17
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT
LIABILITIES
NET ASSETS
FUNDS
18
Unrestricted funds
Restricted funds
TOTAL FUNDS		 Unrestricted
fund
£
2,177,910
10,688,582
12,866,492
676
359,245
697,087
1,057,008
(38,936)
1,018,072
13,884,564
13,884,564
Restricted
funds
£
-
1,875,688
1,875,688
-
4,644
158,618
163,262
(2,931)
160,331
2,036,019
2,036,019		 2022
Total
funds
£
2,177,910
12,564,270
14,742,180
676
363,889
855,705
1,220,270
(41,867)
1,178,403
15,920,583
15,920,583
13,884,564
2,036,019
15,920,583		 2021
Total
funds
£
1,731,338
12,697,866
14,429,204
676
261,503
296,725
558,904
(26,826)
532,078
14,961,282
14,961,282
13,013,369
1,947,913
14,961,282

The financial statements were approved by the Board of Trustees and authorised for issue on 27[th] July 2022 and were signed on its behalf by:

.............................................

Patrick Crawford CB - Honorary Treasurer

The notes form part of these financial statements

Page 12

ARTISTS GENERAL BENEVOLENT INSTITUTION

Cash Flow Statement
for the year ended 5 April 2022
2022
Notes
£
Cash flows from operating activities
Cash generated from operations
1
(2,929)
Tax paid
87
Net cash used in operating activities
(2,842)
Cash flows from investing activities
Purchase of tangible fixed assets
(447,504)
Sale of fixed asset investments
1,009,188
Interest received
138
Net cash provided by/(used in) investing activities
561,822
Change in cash and cash equivalents in the
reporting period
558,980
Cash and cash equivalents at the beginning
of the reporting period
296,725
Cash and cash equivalents at the end of the
reporting period
855,705		 2021
£
(193,791)
(197)
(193,988)
(29,328)
-
367
(28,961)
(222,949)
519,674
296,725

The notes form part of these financial statements

Page 13

ARTISTS GENERAL BENEVOLENT INSTITUTION

Notes to the Cash Flow Statement for the year ended 5 April 2022

1. RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES OPERATING ACTIVITIES
2022 2021
£ £
Net income for the reporting period (as per the Statement of Financial
Activities) 959,301 2,128,799
Adjustments for:
Depreciation charges 931 1,140
Gain on investments (940,546) (2,202,721)
Interest received (138) (367)
Dividends received - (319)
Charges paid from investments 64,955 38,505
Decrease in stocks - 885
Increase in debtors (102,473) (162,193)
Increase in creditors 15,041 2,480
Net cash used in operations (2,929) (193,791)

2.

ANALYSIS OF CHANGES IN NET FUNDS

At 6.4.21 Cash flow At 5.4.22
£ £ £
Net cash
Cash at bank and in hand 296,725 558,980 855,705
296,725 558,980 855,705
Total 296,725 558,980 855,705

The notes form part of these financial statements

Page 14

ARTISTS GENERAL BENEVOLENT INSTITUTION

Notes to the Financial Statements for the year ended 5 April 2022

1. STATUTORY INFORMATION

The Artists' General Benevolent Institution is an unincorporated charity association. The Charity is registered in England and Wales, Registered Charity number 212667.

2. ACCOUNTING POLICIES

BASIS OF PREPARING THE FINANCIAL STATEMENTS

The financial statements of the charity, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) '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 UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Charities Act 2011. The financial statements have been prepared under the historical cost convention, with the exception of investments which are included at market value.

INCOME

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

EXPENDITURE

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure.

TANGIBLE FIXED ASSETS

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

STOCKS

Stocks represent the lower of cost and net realisable value of the Bi-Centenary prints unsold as at 5th April 2020.

TAXATION

The charity is exempt from tax on its charitable activities.

FUND ACCOUNTING

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can be used only for the particular restricted purposes within the object of the charity. Restricted funds represent the funds of the Artists Orphan Fund, a charity merged with the Artists General Benevolent Institution during the year ended 5th April 2015.

Further explanation of the nature of the restricted fund is included in the notes to the financial statements.

TRADE AND OTHER DEBTORS

Trade and other debtors that are receivable within one year and do not constitute a financing transaction are recorded at the undiscounted amount expected to be received, net of any impairment.

Those that are receivable after more than one year or constitute a financing transaction are recorded initially at fair value less transaction costs and subsequently at amortised costs, net of impairment.

continued...

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ARTISTS GENERAL BENEVOLENT INSTITUTION

Notes to the Financial Statements - continued for the year ended 5 April 2022

2. ACCOUNTING POLICIES - continued

TRADE AND OTHER DEBTORS

Cash and cash equivalents

Cash and cash equivalents comprise cash at bank and in hand, demand deposits with banks and other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. In the balance sheet, bank overdrafts are shown within borrowings or current liabilities.

Trade and other creditors

Trade and other creditors are initially recognised at the transaction price and are thereafter stated at amortised cost using the effective interest method unless the effect of discounting would be immaterial, in which case they are stated at cost.

FIXED ASSET INVESTMENTS

Investments are included at closing mid-market value at the balance sheet date. Any gain or loss on revaluation is taken to the Statement of Financial Activities.

All gains and losses are taken to the Statement of Financial Activities as they arise. Realised gains and losses on investments are calculated as the difference between sales proceeds and opening market value (purchase date if later). Unrealised gains and losses are calculated as the difference between the market value at the year end and opening market value (or purchase date if later). Realised and unrealised gains are not separated in the Statement of Financial Activities.

IRRECOVERABLE VAT

Irrecoverable VAT is charged against the category of resources expended for which it was incurred.

3. DONATIONS AND LEGACIES

3.
DONATIONS AND LEGACIES
Unrestricted
funds
£
Annual subscriptions, donations and
amounts collected by stewards
68,552
Legacies received
351,500
420,052
4.
OTHER TRADING ACTIVITIES
Unrestricted
funds
£
Christmas card sales
10,836		 Restricted
funds
£
-
-
-
Restricted
funds
£
-		 2022
Total
funds
£
68,552
351,500
420,052
2022
Total
funds
£
10,836		 2021
Total
funds
£
63,987
277,029
341,016
2021
Total
funds
£
4,549

continued...

Page 16

ARTISTS GENERAL BENEVOLENT INSTITUTION

Notes to the Financial Statements - continued for the year ended 5 April 2022

5.
INVESTMENT INCOME
Unrestricted
funds
£
Income from investments
130,183
Royalty and legacy income
8,158
Deposit account interest
138
138,479
6.
RAISING FUNDS
RAISING DONATIONS AND LEGACIES
Unrestricted
funds
£
Stewards' expenses
-
OTHER TRADING ACTIVITIES
Unrestricted
funds
£
Purchases
4,012
INVESTMENT MANAGEMENT COSTS
Unrestricted
funds
£
Support costs
68,807
Aggregate amounts
72,819		 Restricted
funds
£
32,169
-
-
32,169
Restricted
funds
£
-
Restricted
funds
£
-
Restricted
funds
£
10,796
10,796		 2022
Total
funds
£
162,352
8,158
138
170,648
2022
Total
funds
£
-
2022
Total
funds
£
4,012
2022
Total
funds
£
79,603
83,615		 2021
Total
funds
£
227,456
13,526
367
241,349
2021
Total
funds
£
171
2021
Total
funds
£
-
2021
Total
funds
£
41,403
41,574

continued...

Page 17

ARTISTS GENERAL BENEVOLENT INSTITUTION

Notes to the Financial Statements - continued for the year ended 5 April 2022

7. CHARITABLE ACTIVITIES COSTS

Grants paid and associated costs
8.
GRANTS PAYABLE
Grants paid and associated costs		 Grant
funding of
activities
(see note
8)
£
270,473		 Support
costs (see
note 9)
£
228,693
2022
£
270,473		 Totals
£
499,166
2021
£
345,906

All grants were paid to individuals for both the years ended 5 April 2022 and 2021.

9. SUPPORT COSTS

Information
technology
£
Investment management
costs
79,603
Grants paid and associated
costs
-
79,603		 Human
resources
£
-
165,172
165,172		 Governance
Other
costs
£
£
-
-
41,637
21,884
41,637
21,884		 Totals
£
79,603
228,693
308,296

10. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 5 April 2022 nor for the year ended 5 April 2021.

TRUSTEES' EXPENSES

During the year ended 5th April 2022 no trustees were paid travel expenses (2021: Nil).

11. STAFF COSTS

During the year there was one employee who received emoluments between £70,000 and £80,000.

Gross Wages
Social Security
Pensions
Total
The average monthly number of employees during the year was as follows:
Average number of employees in the year		 2022
£
153,469
13,517
7,054
174,040
2022
3		 2021
£
150,825
13,177
6,957
170,959
2021
3

No employees received emoluments in excess of £60,000.

continued...

Page 18

ARTISTS GENERAL BENEVOLENT INSTITUTION

Notes to the Financial Statements - continued for the year ended 5 April 2022

12.
COMPARATIVES FOR THE STATEMENT OF FINANCIAL
INCOME AND ENDOWMENTS FROM
Donations and legacies
Other trading activities
Investment income
Total
EXPENDITURE ON
Raising funds
Charitable activities
Grants paid and associated costs
Total
Net gains on investments
NET INCOME
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD
13.
TANGIBLE FIXED ASSETS
Freehold
property
£
COST
At 6 April 2021
1,728,582
Additions
446,284
At 5 April 2022
2,174,866
DEPRECIATION
At 6 April 2021
-
Charge for year
-
At 5 April 2022
-
NET BOOK VALUE
At 5 April 2022
2,174,866
At 5 April 2021
1,728,582		 ACTIVITIES
Unrestricted
fund
£
341,016
4,549
212,334
557,899
34,779
546,880
581,659
1,984,649
1,960,889
11,052,480
13,013,369
Fixtures
and
fittings
£
14,360
-
14,360
12,163
440
12,603
1,757
2,197
Restricted
funds
£
-
-
29,015
29,015
6,795
72,382
79,177
218,072
167,910
1,780,003
1,947,913
Computer
equipment
£
4,353
1,220
5,573
3,794
492
4,286
1,287
559
Total
funds
£
341,016
4,549
241,349
586,914
41,574
619,262
660,836
2,202,721
2,128,799
12,832,483
14,961,282
Totals
£
1,747,295
447,504
2,194,799
15,957
932
16,889
2,177,910
1,731,338

continued...

Page 19

ARTISTS GENERAL BENEVOLENT INSTITUTION

Notes to the Financial Statements - continued for the year ended 5 April 2022

14. FIXED ASSET INVESTMENTS

MARKET VALUE
At 6 April 2021
Additions
Disposals
Revaluations
Adjustment
Management Fees
At 5 April 2022		 Listed investments
£
9,856,813
11,825,766
(10,788,124)
940,547
(4,697)
-
11,830,305		 Cash and
settlements
pending
£
2,817,563
10,788,124
(12,834,954)
-
4,697
(64,955)
710,475		 Donated
paintings
£
23,490
-
-
-
-
-
23,490		 Total
£
12,697,866
22,613,890
(23,623,078)
940,547
-
(64,955)
12,564,270

The charity's investments are managed by independent firms of investment managers with no known restrictions over realisation (other than market standard notice requirements) and are held in cash, UK and overseas stock, such as unit trusts and common investment funds, Gilts and Bonds. All investments are held primarily for an investment return.

Included within investments are the following investments in UK securities and common investment funds with market values exceeding 5% of the portfolio value in 2021, there were none in 2022.

Market value
2022 2021
£ £
Charities Property Fund - 900,808
Vanguard S & P - 989,488
HSB FTSE All World Index Fund - 595,970

The valuation of donated paintings is based on guidance of the estimated sales values from Bonhams' Auction House.

15. STOCKS

Stocks
16.
DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Income tax recoverable
Prepayments and accrued income		 2022
£
676
2022
£
2,610
361,279
363,889		 2021
£
676
2021
£
2,697
258,806
261,503

continued...

Page 20

ARTISTS GENERAL BENEVOLENT INSTITUTION

Notes to the Financial Statements - continued for the year ended 5 April 2022

17. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2022 2021
£ £
Other creditors 41,867 26,826

18. MOVEMENT IN FUNDS

MOVEMENT IN FUNDS
Unrestricted funds
General fund
Restricted funds
AGBI - The Children's Fund
TOTAL FUNDS
Net movement in funds, included in the above are
Unrestricted funds
General fund
Restricted funds
AGBI - The Children's Fund
TOTAL FUNDS
Comparatives for movement in funds
Unrestricted funds
General fund
Restricted funds
AGBI - The Children's Fund
TOTAL FUNDS		 as follows:
Incoming
resources
£
569,367
32,169
601,536		 At 6.4.21
£
13,013,369
1,947,913
14,961,282

Resources

expended
£
(504,460)
(78,321)
(582,781)
At 6.4.20
£
11,052,480
1,780,003
12,832,483

continued...

Page 21

ARTISTS GENERAL BENEVOLENT INSTITUTION

Notes to the Financial Statements - continued for the year ended 5 April 2022

18. MOVEMENT IN FUNDS - continued

Comparative net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
Restricted funds
AGBI - The Children's Fund
TOTAL FUNDS		 Incoming
resources
£
557,899
29,015
586,914		 Resources
expended
£
(581,659)
(79,177)
(660,836)		 Gains and
losses
£
1,984,649
218,072
2,202,721		 Movement
in funds
£
1,960,889
167,910
2,128,799

19. EMPLOYEE BENEFIT OBLIGATIONS

The charity operates a defined contribution pension scheme. Total contributions for the year are disclosed in note 11. There were no outstanding or prepaid contributions at the balance sheet date.

20. RELATED PARTY DISCLOSURES

During the year, annual Jubilee Awards totalling £4,000 (2021 - £4,000) were awarded to former trustees. Two remain as Honorary Retired Members of the Artists' General Benevolent Institution.

21. FRC ETHICAL STANDARD - PROVISIONS AVAILABLE FOR SMALL ENTITIES

In common with many other charities of our size and nature we use our auditors to prepare and submit returns to the tax authorities and assist with the preparation of the financial statements.

Page 22

ARTISTS GENERAL BENEVOLENT INSTITUTION

Detailed Statement of Financial Activities for the year ended 5 April 2022

INCOME AND ENDOWMENTS
Donations and legacies
Annual subscriptions, donations and amounts
collected by stewards
Legacies received
Other trading activities
Christmas card sales
Investment income
Income from investments
Royalty and legacy income
Deposit account interest
Total incoming resources
EXPENDITURE
Raising donations and legacies
Stewards' expenses
Other trading activities
Cost of Christmas cards
Charitable activities
Grants to individuals
Support costs
Information technology
Investment management fees
Bi-centenary print costs
Human resources
Wages
Social security
Pensions
Visiting expenses		 2022
£
68,552
351,500
420,052
10,836
162,352
8,158
138
170,648
601,536
-
4,012
270,473
79,603
-
79,603
145,796
12,641
6,701
34
165,172		 2021
£
63,987
277,029
341,016
4,549
227,456
13,526
367
241,349
586,914
171
-
345,906
41,403
885
42,288
143,284
12,318
6,609
-
162,211

This page does not form part of the statutory financial statements

Page 23

ARTISTS GENERAL BENEVOLENT INSTITUTION

Detailed Statement of Financial Activities
for the year ended 5 April 2022
Other
Archer Street rent
Churton Street Expenses
Postage
Telephone
Office stationery
Computer expenses
Legal fees
Professional fees
Cleaning
Bank charges
Sundry expenses
Other gifts
Insurance and service charges
Subscriptions
Training
Fixtures and fittings
Computer equipment
Governance costs
Wages
Social security
Pensions
Auditors' remuneration
Annual report and AGM
Trustee meeting expenses
Total resources expended
Net income/(expenditure) before gains and
losses
Realised recognised gains and losses
Realised gains/(losses) on fixed asset investments
Net income		 2022
£
-
3,052
794
573
1,726
1,816
8,850
9,200
1,397
1,779
2,467
159
7,995
892
6
440
491
41,637
7,673
876
353
6,580
5,328
1,074
21,884
582,781
18,755
538,191
556,946		 2021
£
27,936
6,868
628
2,416
862
1,999
10,620
23,400
2,678
1,816
1,424
35
5,032
953
-
549
591
87,807
7,541
859
348
7,100
6,182
423
22,453
660,836
(73,922)
923,757
849,835

This page does not form part of the statutory financial statements

Page 24