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2023-04-05-accounts

REGISTERED CHARITY NUMBER: 212667

ARTISTS GENERAL BENEVOLENT INSTITUTION Financial Statements for the Year Ended 5 April 2023

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

ARTISTS GENERAL BENEVOLENT INSTITUTION

Contents of the Financial Statements for the year ended 5 April 2023

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 2023

The Trustees present this report with the financial statements of the charity for the year ended 5th April 2023.

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).

The AGBI accepts applications for grants from professional visual artists, their bereaved partners and dependent children living in England, Wales or Northern Ireland (with Scotland having its own fund), who are unable to work or earn due to injury, illness or older age.

Applications are initially made by telephone, post or email with a full curriculum vitae listing all training, exhibitions in professional galleries/spaces, and teaching experience (if any) at 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 professional supporters and a letter from their GP or consultant evidencing their medical situation (if applicable) for examination by the AGBI's Medical Advisor, and 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 Artists 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 visual artists. This fund is called the AGBI Children's Fund. The revised bye-laws (2022) of this fund define an orphan as a child of no more than the age of 25 who remains in 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 2023

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 visual artists who cannot work due to injury, illness or older age.

In the financial year 2022/23, the AGBI provided financial support to a total of 79 professional visual artists in need and their dependents. The AGBI assessed all 79 applicants on a case-by-case basis and committed to provide total funding of £271,669.

Eight further applications were declined because the applicants did not meet the eligibility criteria, or their circumstances improved to the level where our help was no longer deemed to be needed.

The AGBI received more applications in 2022/23 than in 2021/22. Of the 79 artists helped, 17 were new applications, compared with seven in the previous year; and 62 artists received continuing help, compared with 56 in the previous year.

A total of 18 orphans were supported by the AGBI Children's Fund, compared to 14 orphans in the previous year.

Seven distinguished artists received the AGBI Jubilee Award in recognition of their contribution to the art world; this is the same number as the previous year.

The Trustees and members of the Artists Council are sorry to report three beneficiaries died in the financial year.

Property Update

In August 2022, the AGBI moved into new premises at 15 Churton Street, London, SW1V 2LY.

This freehold building was acquired by the charity in 2019 and fully refurbished in 2021/2022. The building consists of the charity's offices on the ground and lower-ground floors and a self-contained flat on the second and third floors. The flat was successfully let in December 2022. The rental income from the flat assists in diversifying the sources of the charity's revenues.

The offices provide a flexible working and exhibition space where the AGBI can offer more services to its applicants and increase public awareness of the AGBI with a programme of events and exhibitions. The charity's 200-year-old archive are now housed in the building, having been in storage for several years.

Additional applicant services include face-to-face medical support in a consultation room where the AGBI's medical advisor regularly meets new and existing applicants, and artist-led groups called 'Artists Sessions' where applicants meet and talk about how their illnesses have affected their lives, their work and their professional practice.

Fundraising Activities

The AGBI's Stewards raised £22,030 of donations in 2022/23. 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 thanks to all its Stewards.

The AGBI received £53,645 in legacies received or bequeathed. Donations in memory of relatives, friends and fellow artists provide a poignant commemoration and the AGBI is grateful for these donations.

Page 2

ARTISTS GENERAL BENEVOLENT INSTITUTION

Report of the Trustees for the year ended 5 April 2023

FINANCIAL REVIEW

Principal Funding Sources

The AGBI relies on four principal sources of income: voluntary income which includes annual subscriptions, one-off donations and amounts raised by its stewards; legacies; investment income generated from its investment portfolios which are managed during the year by Veritas Investment Partners and Waverton Investment Management; and rental income from the self-contained flat above the charity's office.

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, while seeking to maintain its ability to support its grant-making in future.

During the financial year to 5th April 2023, the AGBI's incoming resources (not including legacies) totalled £280,837, compared to £250,034 in the previous year.

Voluntary income in this period totalled £73,629, compared to £68,552 in the previous financial year.

Legacies in this period totalled £53,645, compared to £351,500 in the previous financial year.

Investment income in this period (net of investment management fees) amounted to £69,796, compared to £82,747 in the previous financial year.

Results for Period and Funds Carried Forward

The level of grants paid and associated costs increased from £499,166 to £511,670.

This resulted in a deficit of £316,205 prior to unrealised net losses on investments which totalled £348,794.

The funds carried forward for the financial year 2023/24 amounted to £15,297,584, which is a decrease on the previous year when they were £15,920,583.

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 to the Trustees.

The Investment Committee received quarterly investment reports from Veritas Investment Partners and Waverton Investment Management on their performance as investment managers of its portfolio.

The Investment Committee met twice during the financial year to review the performance of the investment managers and to ensure that sufficient 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 2022/23, the income yield on the investments managed by the investment managers, after fees, was £69,796 or 0.58% (based on market values at the year-end).

Reserves Policy

As at 5th April 2023, the AGBI's total funds amounted to £15,297,584, all of which were unrestricted apart from the AGBI Children's Fund which totalled £1,924,655. These funds allow the charity to continue its current activities and to support a sound financial basis for the future.

Page 3

ARTISTS GENERAL BENEVOLENT INSTITUTION

Report of the Trustees for the year ended 5 April 2023

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing Document

The Artists' General Benevolent Institution (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 in 2021/22 and adopted at the Annual General Meeting on 7th January 2022. The Royal Charter was not amended.

Governance and Management

As at 5th April 2023, the AGBI was governed by its bye-laws (2022) which recommended that the AGBI should have between a minimum of three Trustees and a maximum of nine Trustees (to the extent possible). At each Annual General Meeting all the Trustees retire and are then eligible for re-election. The Trustees are supported by the Artists Council and the Investment Committee.

The Artists Council meets ten times a year to consider new cases and review existing cases. The Investment Committee monitors quarterly reports on the performance of the AGBI's investments and meets biannually to discuss investment performance and related risk management.

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

Newly appointed Trustees receive an induction pack containing details of the structure of the charity, a copy of the bye-laws (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; they 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 their 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.

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 welfare 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.

Page 4

ARTISTS GENERAL BENEVOLENT INSTITUTION

Report of the Trustees for the year ended 5 April 2023

REFERENCE AND ADMINISTRATIVE DETAILS Registered Charity number 212667

Principal address

15 Churton Street Pimlico London SW1V 2LY

Telephone 020 7734 1193

Honorary Appointments, Trustees and Committee Members

President

Nicola Hicks MBE

Honorary Treasurer Patrick Crawford CB

Trustees

Stephen Bartlett Patrick Crawford CB Richard Gault Nicola Hicks MBE (Chair)

The Artists Council

Stephen Bartlett Francis Bowyer PPRWS NEAC The Viscountess Bridgeman CBE FRSA Patrick Crawford CB Jo Dennis Richard Gault Nicola Hicks MBE Jonathan Horwich Sam McKechnie Professor Brendan Neiland William Packer Hon FRCA NEAC Veronica Ricks Jamie Routley Susie Thomson

Honorary President

Rebecca Salter, President of the Royal Academy of Arts

Investment Committee

Patrick Crawford CB (Chair) Rupert Caldecott Dahlia Dana Nicola Hicks MBE Charles White

Medical Advisor

Dr Michael Gormley

Page 5

ARTISTS GENERAL BENEVOLENT INSTITUTION

Report of the Trustees for the year ended 5 April 2023

Honorary Retired Members

Gus Cummins RA David Gentleman RDI Charlotte Halliday RWS NEAC William Pye Jacqueline Rizvi RBA RWS NEAC

Secretary to the Trustees and CEO Brad Feltham

Assistant Secretary Barbara Galloway

Head of Community, Exhibitions and Collections Abbie Griffiths

Financial Controller Jacki Haggard

Auditors

Xeinadin Auditing Chartered Accountants and Statutory Auditors Becket 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

Veritas Investment Partners Riverside House 2a Southwark Bridge Road London SE1 9HA

Waverton Investment Management 16 Babmaes Street London SW1Y 6AH

Insurers

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

Page 6

ARTISTS GENERAL BENEVOLENT INSTITUTION

Report of the Trustees for the year ended 5 April 2023

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 2023 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

-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 Becket House 36 Old Jewry London EC2R 8DD

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

Page 10

ARTISTS GENERAL BENEVOLENT INSTITUTION

Statement of Financial Activities for the year ended 5 April 2023

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/(losses) on investments
NET INCOME/(EXPENDITURE)
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD		 Unrestricted
fund
£
127,274
28,849
146,057
302,180
85,770
434,759
520,529
(293,286)
(511,635)
13,884,564
13,372,929		 Restricted
funds
£
32,302
-
-
32,302
11,247
76,911
88,158
(55,508)
(111,364)
2,036,019
1,924,655		 2023
Total
funds
£
127,274
28,849
1178,359
334,482
97,017
511,670
608,687
(348,794)
(622,999)
15,920,583
15,297,584		 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

The notes form part of these financial statements

Page 11

ARTISTS GENERAL BENEVOLENT INSTITUTION

Balance Sheet 5 April 2023

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
£
2,327,996
10,305,717
12,633,713
676
363,264
441,600
805,540
(66,324)
739,216
13,372,929
13,372,929		 Restricted
funds
£
-
1,807,247
1,807,247
2,242
115,166
117,408
-
117,408
1,924,655
1,924,655
-		 2023
Total
funds
£
2,327,996
12,112,964
14,440,960
922,948
(66,324)
856,624
15,297,584
15,297,584
13,372,929
1,924,655
15,297,584
676
365,506
556,766		 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

The financial statements were approved by the Board of Trustees and authorised for issue on ............................................. 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 2023

Notes
Cash flows from operating activities
Cash generated from operations
1
Tax paid
Net cash used in operating activities
Cash flows from investing activities
Purchase of tangible fixed assets
Sale of fixed asset investments
Interest received
Net cash (used in)/provided by investing activities
Change in cash and cash equivalents in
the reporting period
Cash and cash equivalents at the
beginning of the reporting period
Cash and cash equivalents at the end of
the reporting period		 2023
£
(163,579)
(1,148)
(164,727)
(152,122)
9,255
8,655
(134,212)
(298,939)
855,705
556,766		 2022
£
(2,931)
87
(2,844)
(447,504)
1,009,190
138
561,824
558,980
296,725
855,705

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 2023

1. RECONCILIATION OF NET (EXPENDITURE)/INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES

Net (expenditure)/income for the reporting period (as per the
Statement of Financial Activities)
Adjustments for:
Depreciation charges
Losses/(gain) on investments
Interest received
Charges paid from investments
Decrease/(increase) in debtors
Increase in creditors
Net cash used in operations		 2023
£
(622,999)
2,036
348,794
(8,655)
93,257
(469)
24,457
(163,579)		 2022
£
959,301
931
(940,548)
(138)
64,955
(102,473)
15,041
(2,931)

2. ANALYSIS OF CHANGES IN NET FUNDS

Net cash At 6.4.22
£		 Cash flow
£		 At 5.4.23
£
Cash at bank and in hand 855,705 (298,939) 556,766
855,705 (298,939) 556,766
Total 855,705 (298,939) 556,766

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 2023

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.

Fixtures and fittings - 20% on reducing balance Computer equipment - 25% on cost

STOCKS

Stocks represent the lower of cost and net realisable value of the Bi-Centenary prints unsold as at 5th April 2023.

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...

Page 15

ARTISTS GENERAL BENEVOLENT INSTITUTION

Notes to the Financial Statements - continued for the year ended 5 April 2023

2. ACCOUNTING POLICIES - continued

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

Unrestricted
funds
£
Annual subscriptions, donations and
amounts collected by stewards
73,629
Legacies received
53,645
127,274
OTHER TRADING ACTIVITIES
Unrestricted
funds
£
Christmas card sales
12,649
Rental income
16,200
28,849		 Restricted
funds
£
-
-
Restricted
funds
£
-
-
-
-		 2023
Total
funds
£
73,629
53,645
2023
Total
funds
£
12,649
16,200
28,849
127,274		 2022
Total
funds
£
68,552
351,500
420,052
2022
Total
funds
£
10,836
-
10,836

4. OTHER TRADING ACTIVITIES

continued...

Page 16

ARTISTS GENERAL BENEVOLENT INSTITUTION

Notes to the Financial Statements - continued for the year ended 5 April 2023

5. INVESTMENT INCOME

Unrestricted
funds
£
Income from investments
130,337
Royalty income
7,065
Deposit account interest
8,655
146,057
RAISING FUNDS
RAISING DONATIONS AND LEGACIES
Unrestricted
funds
£
Stewards' expenses
137
OTHER TRADING ACTIVITIES
Unrestricted
funds
£
Purchases
3,941
Fundraising expenses
96
4,037
INVESTMENT MANAGEMENT COSTS
Unrestricted
funds
£
Support costs
81,596
Aggregate amounts
85,770		 Restricted
funds
£
32,302
-
-
32,302
Restricted
funds
£
-
Restricted
funds
£
-
-
-
Restricted
funds
£
11,247
11,247		 2023
Total
funds
£
162,639
7,065
8,655
178,359
2023
Total
funds
£
137
2023
Total
funds
£
3,941
96
4,037
2023
Total
funds
£
92,843
97,017		 2022
Total
funds
£
162,350
8,158
138
170,646
2022
Total
funds
£
-
2022
Total
funds
£
4,012
-
4,012
2022
Total
funds
£
79,603
83,615

6. RAISING FUNDS

continued...

Page 17

ARTISTS GENERAL BENEVOLENT INSTITUTION

Notes to the Financial Statements - continued for the year ended 5 April 2023

7. CHARITABLE ACTIVITIES COSTS

Grants paid and associated costs
GRANTS PAYABLE
Grants paid and associated costs		 Grant
funding of
activities
(see note
8)
£
271,669		 Support
costs (see
note 9)
£
240,001
2023
£
271,669		 Totals
£
511,670
2022
£
270,473

8. GRANTS PAYABLE

All grants were paid to individuals for both the years ended 5 April 2023 and 2022.

9. SUPPORT COSTS

Investment management
costs
Associatedcosts		 Human
resources
£
-
171,526
171,526		 Governance
Other
costs
£
£
92,843
-
44,674
23,801
137,517
23,801		 Totals
£
92,843
240,001
332,844

10. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 5 April 2023 nor for the year ended 5 April 2022.

TRUSTEES' EXPENSES

During the year ended 5th April 2023 no trustees were paid travel expenses (2022: Nil).

11. STAFF COSTS

During the year there was one employee who received emoluments between £70,000 and £80,000 (2022: one).

Gross Wages
Social Security
Pensions
Total		 2023
£
158,683
13,465
7,171
179,319		 2022
£
153,469
13,517
7,054
174,040
The average monthly number of employees during the year was as follows:
Average number of employees in the year		 2023
3		 2022
3

continued...

Page 18

ARTISTS GENERAL BENEVOLENT INSTITUTION

Notes to the Financial Statements - continued for the year ended 5 April 2023

12.
COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
Unrestricted
Restricted
fund
funds
£
£
INCOME AND ENDOWMENTS FROM
Donations and legacies
420,052
Other trading activities
10,836
Investment income
138,479
32,169
-
-
Total
569,367
32,169
EXPENDITURE ON
Raising funds
72,819
10,796
Charitable activities
Grants paid and associated costs
431,641
67,525
Total
504,460
78,321
Net gains on investments
806,288
134,258
NET INCOME
871,195
88,106
RECONCILIATION OF FUNDS
Total funds brought forward
13,013,369
1,947,913
TOTAL FUNDS CARRIED FORWARD
13,884,564
2,036,019
13.
TANGIBLE FIXED ASSETS
Fixtures
Freehold
and
Computer
property
fittings
equipment
£
£
£
COST
At 6 April 2022
2,174,866
14,360
5,573
Additions
146,972
1,880
3,270
Disposals
-
(8,576)
(2,928)
At 5 April 2023
2,321,838
7,664
5,915
DEPRECIATION
At 6 April 2022
-
12,603
4,286
Charge for year
-
727
1,309
Eliminated on disposal
-
(8,576)
(2,928)
At 5 April 2023
-
4,754
2,667
NET BOOK VALUE
At 5 April 2023
2,321,838
2,910
3,248
At 5 April 2022
2,174,866
1,757
1,287		 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
Totals
£
2,194,799
152,122
(11,504)
2,335,417
16,889
2,036
(11,504)
7,421
2,327,996
2,177,910

continued...

Page 19

ARTISTS GENERAL BENEVOLENT INSTITUTION

Notes to the Financial Statements - continued for the year ended 5 April 2023

14. FIXED ASSET INVESTMENTS

Listed investments Cash and
settlements
pending		 Donated
paintings		 Total
£ £ £ £
MARKET VALUE
At 6 April 2022 11,830,305 710,475 23,490 12,564,270
Additions 2,883,000 2,409,203 - 5,292,203
Disposals (2,409,203) (2,883,000) - (5,292,203)
Revaluations (348,796) - - (348,796)
Adjustment (4,622) (4,631) - (9,253)
Management Fees - (93,257) - (93,257)
At 5 April 2023 11,950,684 138,790 23,490 12,112,964

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.

There were no investments in UK securities or common investment funds with market values exceeding 5% of the portfolio value in 2022 or in 2023.

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		 2023
£
676
2023
£
3,758
361,748
365,506		 2022
£
676
2022
£
2,610
361,279
363,889

continued...

Page 20

ARTISTS GENERAL BENEVOLENT INSTITUTION

Notes to the Financial Statements - continued for the year ended 5 April 2023

17. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Other creditors
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 a
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		 s follows:
Incoming
resources
£
302,180
32,302
334,482		 At 6.4.22
£
13,884,564
2,036,019
15,920,583
Resources
expended
£
(520,529)
(88,158)
(608,687)
At 6.4.21
£
13,013,369
1,947,913
14,961,282		 2023
£
66,324
Net
movement
in funds
£
(511,635)
(111,364)
(622,999)
Gains and
losses
£
(293,286)
(55,508)
(348,794)
Net
movement
in funds
£
871,195
88,106
959,301		 2022
£
41,867
At
5.4.23
£
13,372,929
1,924,655
15,297,584
Movement
in funds
£
(511,635)
(111,364)
(622,999)
At
5.4.22
£
13,884,564
2,036,019
15,920,583

18. MOVEMENT IN FUNDS

continued...

Page 21

ARTISTS GENERAL BENEVOLENT INSTITUTION

Notes to the Financial Statements - continued for the year ended 5 April 2023

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
£
569,366
32,168
601,534		 Resources
expended
£
(504,460)
(78,321)
(582,781)		 Gains and
Movement
losses
in funds
£
£
806,289
871,195
134,259
88,106
940,548
959,301

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 (2022 - £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 2023

INCOME AND ENDOWMENTS
Donations and legacies
Annual subscriptions, donations and amounts
collected by stewards
Legacies received
Other trading activities
Christmas card sales
Rental income
Investment income
Income from investments
Royalty income
Deposit account interest
Total incoming resources
EXPENDITURE
Raising donations and legacies
Stewards' expenses
Other trading activities
Cost of Christmas cards
Fundraising expenses
Charitable activities
Grants to individuals
Support costs
Human resources
Wages
Social security
Pensions
Visiting expenses		 2023
£
73,629
53,645
127,274
12,649
16,200
28,849
162,639
7,065
8,655
178,359
334,482
137
3,941
96
4,037
271,669
150,951
12,542
6,812
1,221
171,526		 2022
£
68,552
351,500
420,052
10,836
-
10,836
162,350
8,158
138
170,646
601,534
-
4,012
-
4,012
270,473
145,796
12,641
6,701
34
165,172

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 2023

Other
Investment management fees
Churton Street Expenses
Postage
Telephone
Office stationery Advertising
Computer expenses
Legal fees
Professional fees
Repairs and renewals
Cleaning
Bank charges
Sundry expenses
Other gifts
Gain/loss on foreign exchange
Insurance and service charges
Subscriptions
Training
Fixtures and fittingsdepr.
Computer equipmentdepr.
Governance costs
Wages
Social security
Pensions
Auditors' remuneration
Annual report and AGM
Trustee meeting expenses
Total resources expended
Net (expenditure)/income before gains and
losses
Realised recognised gains and losses
Realised gains/(losses) on fixed asset investments
Net (expenditure)/income		 2023
£
11,612
1,023
316
1,535
420
2,497
390
-
1,380
2,113
1,456
2,768
114
5,180
10,520
1,314
-
727
1,309
137,517
7,732
923
359
8,580
5,080
1,127
23,801
608,687
(274,205)
(168,382)
(442,587)
92,843		 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
121,240
7,673
876
353
6,580
5,328
1,074
21,884
582,781
18,753
538,193
556,946
79,603

This page does not form part of the statutory financial statements

Page 24