**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
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charity SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
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:
- give a true and fair view of the state of the charity's affairs as at 5 April 2023 and of its incoming resources and application of resources, for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Charities Act 2011.
## **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:
- the information given in the Report of the Trustees is inconsistent in any material respect with the financial statements; or
- sufficient accounting records have not been kept; or
- the financial statements are not in agreement with the accounting records and returns; or
- we have not received all the information and explanations we require for our audit.
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:
- Identify and assess the risk of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal control.
- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purposes of expressing an opinion on the effectiveness of the company's internal control.
- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and the related disclosures made by the directors.
- Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to event or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors report to the related disclosure in the financial statements or, if such disclosures are inadequate to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the company to cease to continue as a going concern.
-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