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2022-03-31-accounts

Institute of Contemporary Arts Limited

Report and financial statements For the year ended 31 March 2022

Company number: 00444351 Charity number: 236848

Institute of Contemporary Arts Limited

Contents

For the year ended 31 March 2022

Contents
Reference and administrative information 3
Trustees’ annual report 5
Director’s statement 6
Strategic goals 7
Achievements and programme highlights 7
ICA beneficiaries and impact 11
Organisational update 12
Capital renovation project 13
Fundraising 13
Financial review 14
Principal risks and uncertainties 15
Reserves policy and going concern 16
Structure, governance and management 17
Independent auditors report 23
Consolidated statement of financial activities 27
Balance sheet 28
Consolidated statement of cash flows 29
Notes to the financial statements 30

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Institute of Contemporary Arts Limited

Reference and administrative information

For the year ended 31 March 2022

Reference and administrative information

Institute of Contemporary Arts Limited

Company number 00444351 Country of incorporation United Kingdom Charity number 236848 Country of registration England & Wales Registered office and operational address The Mall, London SW1Y 5AH

Trustees, who are also directors under company law, who served during the year and up to the date of this report were as follows:

Wolfgang Tillmans, Chair[[1] [2] [3] [4] [5] [6]]

Dilyara Allakhverdova, Co-Chair Development Committee (resigned 7 March 2022)[[1] [3]]

Sepake Angiama[[6]]

Charles Asprey, Chair Nominations & Ethics Committee[[4]]

Sara Blonstein[[3] [5]]

Vanessa Carlos (departed 24 January 2022)[[3] [5]]

Robert Devereux, Chair Strategic Communications Committee (resigned 24 January 2022)[[2] [4] [5]]

Pesh Framjee, Chair Finance & Audit Committee (resigned 27 May 2021)[[2]]

Amanda Gray, Chair Programming Committee[[4] [5] [6]]

Nabihah Iqbal[[4] [6]]

David Kolbusz, Chair Strategic Communications Committee (joined 4 November 2021)[ [5]]

Jo Stella-Sawicka[[3] [5]]

Maria Sukkar, Chair Development Committee[[3] [4]]

Tilda Swinton (joined 1 February 2022)

Steve Wills, Chair Finance & Audit Committee (joined 27 May 2021)[[2] [6]]

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Institute of Contemporary Arts Limited

Reference and administrative information

For the year ended 31 March 2022

Key management personnel
Bengi Ünsal, Director (joined 1 March 2022)		 Key management personnel
Bengi Ünsal, Director (joined 1 March 2022)
Tom Campbell, Director of Operations and Visitor Services
Leila Hasham, Chief Producer (joined 1 September 2021)
David Stacey, Director of Finance (joined 4 July 2022)
Stefan Kalmár, Executive Director (left 31 July 2021)
Kerry Bishop, Managing Director (left 15 December 2021)
Lauren Richards, Director of Finance (left 12 May 2022)
Lucy Woollatt, Interim Managing Director (joined 3 January 2022,
left 18 April 2022)
Principal bankers Barclays Bank PLC
Corporate Banking
1 Churchill Place
London E14 5HP
Solicitors, Mishcon de Reya LLP
corporate and Africa House
commercial law 70 Kingsway
London WC2B 6AH
Employment and Withers LLP
charity law 16 Old Bailey
London EC4M 7EG
Auditor, Sayer Vincent LLP
chartered accountants Invicta House
and statutory auditor 108–114 Golden Lane
London EC1Y 0TL

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Institute of Contemporary Arts Limited

Trustees’ annual report

For the year ended 31 March 2022

Trustees’ annual report

The trustees present their report and the audited financial statements for the year ended 31 March 2022.

Reference and administrative information set out on page 3 forms part of this report. The financial statements comply with current statutory requirements; the memorandum and articles of association; the requirements of a directors’ report as required under company law; and the Statement of Recommended Practice (SORP) – Accounting and Reporting by Charities, applicable to charities preparing their accounts in accordance with Financial Reporting Standard (FRS) 102.

Objectives and activities

Purposes and aims

‘The objects for which the Company is established are to promote the education of the community by encouraging the understanding, appreciation and development of the arts generally and particularly of contemporary art as expressed in painting, etching, engraving, drawing, poetry, philosophy, literature, drama, music, opera, ballet, sculpture, architecture, designs, photography, films, radio and television of educational and cultural value.’

– Memorandum of Association of Living Arts Limited, founded on 22 July 1947; the company officially changed its name to the Institute of Contemporary Arts Limited by a Special Resolution passed on 23 July 1968

The Institute of Contemporary Arts (ICA) was founded in 1946 by a collective of artists, poets and their supporters, including Peter Gregory, ELT Mesens, Roland Penrose, Herbert Read and Peter Watson. In 1947, Herbert Read described the ICA as ‘a workshop where work is joy, a source of vitality and daring’.

The ICA moved to its present location on the Mall in spring 1968. On its opening, then-Director Michael Kustow remarked:

‘If the new ICA becomes merely another cultural amenity, in a city well stacked with galleries, theatres and concert halls, it will have failed. It must become an active presence, a focal point where a nucleus of artists from all the contemporary arts can communicate urgent and needed messages … A free space, in which the deepest questions that concern us as individuals and society can be explored in continuity … A sustained enquiry into the roots of our present possibilities and discontents.’

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Director’s statement

The moment we are all living through will be remembered as one of extreme change and difficulty. A time disrupted by the pandemic, hopefully past, a war dividing the world into two polars, planet challenged by temperature levels, cost of living rising beyond historic levels. All industries, businesses, organisations, and individuals must be responsible and learn to respond quickly in order to remain afloat and relevant in this fastpaced environment.

The times we are in also represents an opportunity to make change, to deliver a vision for the ICA that will elevate the organisation now and rebalance its multidisciplinary programme across all arts and media, with the diversity of its spaces and specialists. In our landmark home on The Mall in Central London, we invite artists and audiences to interrogate what it means to live in our world today, with a genre-fluid programme that challenges the past, questions the present and confronts the future.

I feel incredibly lucky to join the ICA as it prepares to celebrate its 75th year anniversary. Alongside the ICA’s thriving visual arts, film and education programmes, I look forward to bringing a broader range of music and live performances to our audiences who are one of the youngest and the most diverse in the UK.

Our history of presenting and promoting visionary new art is unrivalled in London: from Kenneth Anger to Kathy Acker, k-punk to Klein, Jackson Pollock to Jean-Michel Basquiat, Gay Sweatshop to Forensic Architecture, Pop Art to queer techno. Today, as ever, our inclusive programme reflects and represents who we are as a disparate and diverse collection of cultures and identities.

We commission, produce and present new work in film, music, performance and the visual arts by today’s most progressive artists. The cross-disciplinary programme encourages these art forms and others to pollinate in new combinations and collaborations. We stage club nights and film festivals, gigs and exhibitions, talks and digital art–with interplay and interaction at the core of all we do. We value serving and nurturing the audiences and artists of today and tomorrow; delivering a genuinely unique, leading and cutting-edge programme to the world physically and digitally; ensuring our rapidly evolving communities are more truthfully represented and welcomed.

Exactly 75 years after a group of artists and poets founded the ICA as an alternative to the mainstream, we are committed more than ever to pave the way for the next generation and to platform creative voices. The ICA is bold, fluid and experimental. The ICA is a playground and a home for today’s most vital artists, a hub for talent development, artistic encounters and collaborations. The ICA is London’s leading space for contemporary culture. The ICA is the future of arts and culture in the UK and beyond for the next 75 years.

Bengi Ünsal, November 2022

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Strategic goals for 2019–2025

To deliver its unique mission, the ICA works to five core goals:

The trustees review the aims, objectives and activities of the charity each year. This report looks at what the charity has achieved and the outcomes of its work in the reporting period, with the trustees reporting on the success of each key activity and the benefits the charity has brought to those groups of people that it is set up to help. This review also helps the trustees ensure that the charity’s aims, objectives and activities remain focused on its stated purposes.

The trustees have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the charity’s aims and objectives and in planning its future activities. In particular, the trustees consider how the charity’s planned activities will contribute to the aims and objectives that have been set.

Achievements and programme highlights

In our 75th year, we continue to evolve and rebalance our programmatic direction, with the introduction of music gigs, club nights and interdisciplinary performances. We platform emerging artists, create space for collaborations and value experimentation. We are restructuring our learning and participation programme to run parallel to all we do. We are in dialogue with our young and diverse audiences and seek to open pathways for them to interact with us more.

Our multi-disciplinary programme is focused around four central categories:

Exhibitions

Artists have always been at our core of the ICA, supporting artists at the early stages of their careers and during their peak. The ICA exhibitions continue to grow our own institutional understanding through collaborations with artists and audiences to take risks, commission new work and develop ideas.

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Although the ICA’s building was closed we did reach our audiences between 1 April and 6 July 2021 when we fully reopened the building through the ICA Daily emails which comprised recommendations of reading, viewing, listening and more from the ICA’s curatorial team and a series of guest editors, produced and sent to all of our subscribers during lockdown, and through our online programme on Cinema 3, the digital platform we developed and launched in November 2020.

On 6 July we reopened the ICA with the exhibition War Inna Babylon: Community’s Struggle for Justice and Rights. The exhibition was highlighted by Hyperallergic as one of the top ten exhibitions to see in 2021 globally and was one of the highest attended exhibitions since ICA records began. The presentation shone a light on the actions, processes and culture of policing in Britain and showcased the range of community work and activism undertaken by the London-based community group Tottenham Rights, previously the Broadwater Farm Defence Campaign, since the early 1980s. The exhibition included archival materials from Black Cultural Archives, the George Padmore Institute and the Institute of Race Relations, and an investigation by Forensic Architecture into the 2011 police killing of Mark Duggan.

Following on from War Inna Babylon, in October we launch Channel B by the Black-owned art, music, and creative initiative Nine Nights. The exhibition featured sound and video installations by founding artists Gaika, GLOR1A and Shannen SP and at the heart of the project was the live event series New Syntax, which saw each installation act as staging to host performances by Black artists. Committed to experimental forms of exhibition-making, Nine Nights invited audiences and artists to use the installation space as a site for interaction, dancing and making.

We staged the final showcase of a two-year project, Current Transmissions, which featured a series of commissioning opportunities developed by BBC Arts and Arts Council England for emerging artists aged 16-30 looking to enter the world of broadcast media. From 1-6 February 2021 we presented over 50 new commissioned works in audio, moving image and interactive work from London-based emerging artists under the age of 30. This was the second showcase – the first was in February 2020 – and all the artists were commissioned via two open calls in 2019 as part of New Creatives, a national talent development scheme which was funded by BBC Arts and Arts Council England. ICA commissioned all the works, with mentoring and production support provided by the ICA and production partners: Dazed Media, Chisenhale Gallery, NTS, SPACE, Werkflow and Kingston University. Many of the works from previous rounds have been broadcast on various BBC platforms, including BBC Four, BBC Radio 6 Music, BBC iPlayer and BBC Sounds. The BBC Four presentations have had a projected combined reach of 112m, and some of our top-performing audio works – including DemTimes, 10 Lime Street and New Coal – have been listened to more than 80,000 times each and many of the pieces were available on our digital platform Cinema 3 for a designated period.

Continuing the ICA’s interest in social justice and platforming underrepresented voices, we presented Decriminalised Futures from 15 February – 22 May 2022 across the ICA galleries. Decriminalised Futures was a collaborative project led by members of SWARM (Sex Worker Advocacy and Resistance Movement) and supported by Arika and ICA. The emphasis of the project was on supporting artwork and popular education that speaks to the sex worker experience, intersects with sex worker rights and connects with broader social, labour and movement struggles. Featuring thirteen international artists from the UK, Germany, USA and Spain and comprising ten distinct projects, the exhibition highlights the history of the sex worker rights movement and its links to universal issues such as racial and social justice, migrant, and labour rights, as well as anti-austerity work, and queer and trans liberation. An accompanying programme of events including talks, film screenings, discussions, and workshops, ran alongside the exhibition.

Film

The ICA Cinema focuses on independent films and foregrounding new cinematic languages. Despite the challenging circumstances that the entire international film industry has had to face, the ICA has continued to

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discover and champion emerging voices and new developments in film and artists’ moving image. As well as our daily film programme, presented digitally via Cinema 3 and (in normal times) at the ICA on The Mall, the ICA Cinema also brings ground-breaking films from underrepresented and emerging filmmakers to UK and Irish audiences through our film distribution arm, supporting innovative and boundary-pushing work from international filmmakers.

Between April 2021 and March 2022, in the context of the closure of the ICA building until July, the ICA Cinema:

In 2021, the ICA supported by Dr. Martens launched a new commissioning programme for Image Behaviour – the annual convening dedicated to experiments in artist’s moving image. Image Behaviour is central to the ICA’s decades-long commitment to the development of artist film, from Derek Jarman, Steve McQueen and Matthew Barney to more recent works by the likes of James Richards, Metahaven and Martine Syms; and continues the ICA’s significant interest in supporting artists whose work navigate the space between disciplines.

Through an open call, we received 1,035 applications for emerging artists to submit proposals for new work. Following the closing date, applications were longlisted and reviewed independently by a selection panel with artists Beatrice Dillon, Naeem Mohaiemen and Languid Hands (Rabz Lansiquot and Imani Robinson) along with Amber Henry of Dr. Martens and an ICA curator. Eight production grants were made available, each grant up to £5,000 and a larger grant of £30,000 and for 6 weeks from March 2022, each new commission unfolded in the ICA theatre featuring multi-screen projections, performances, music and encouraged interactive dialogue between the work and the visitors. A series of accompanying events including a symposium also accompanied the project.

Live

Due to the pandemic, the Live programme at the ICA was substantially reduced from April 2021. However, the ICA’s approach to performance has always been either grounded in specific disciplinary enquiries or traverse contemporary classifications. Musicians, performance artists, playwrights, poets and choreographers develop and present work that – ordinarily, in non-pandemic times – often takes over the entire ICA building, from the theatre to the galleries and the cinemas.

From September 2021 to March 2022, we presented:

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Talks & Learning

The ICA’s closure and reduced organisational capacity resulted in fewer public programmes. However, the ICA continues to be a vital site for the development of critical and cultural theory, and for alternative means of producing and advancing diverse forms of knowledge. The Talks and Learning programme are embedded across the artistic programme, through artists talks, symposia and workshops relating to exhibitions, long-term research, often conducted with partners such as higher education institutions; and platforms for knowledge and skillsharing between young people and artists, collectives and higher education partners, forming a social creative network. Under its banner, the ICA organises a broad range of events, for a range of age groups, gathering people at the ICA to discuss ideas around culture, creativity and learning.

From April 2021 to March 2022, the Talks and Learning programme firmly embedded itself within the exhibition programme:

¾ Established a fortnightly listening circle/write-in, and a collaboration between the ICA Bookstore and Worms Magazine – a biannual literary style magazine that celebrates female and non-binary writer culture.

The Talks and Learning Programme also continued to develop relationships with current and future partners at higher education institutions, by:

¾ Featuring the eight edition of the Essay Film Festival organised by Birkbeck Institute for Moving Image

¾ The ICA’s collaboration with university partners Kingston and University of the Arts London continued to develop research programmes and funding opportunities for practice-based doctoral and postdoctoral researchers from Black, Asian, minority ethnic, migrant, and refugee backgrounds.

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Host a four-week reading group where young people from Westminster meet for an-depth learning programme, which, once established, we aim to run twice a year.

ICA beneficiaries and impact

The ICA’s building remained closed for the first three months of the financial year. This, and the impact of the slow return of tourism and greater remote working, meant footfall was much reduced compared to pre-pandemic years. Nevertheless, the ICA continued to reach wide audiences across the UK and internationally through multiple platforms.

Venue

In the 2019–20 financial year, prior to lockdown, the ICA attracted a total of 334,000 visitors. However, the building closure until July 2021, and lower economic and tourist activity in Central London following reopening, meant that visitor numbers in 2021-22 were much reduced at 139,000, just 42% of pre-Covid levels.

Digital

The ICA website at ica.art received 3.7 million page views during the 2021-22 financial year. This compares favourably to 1.0 million the previous year and 2.8 million in pre-lockdown 2019-20. At 440,000 our social media followers have risen by 4% against last year and are 6% higher than 2019/20.

Digital statistics
Average monthly web page views
Average time spent on page
Instagram followers
YouTube subscribers
Twitter followers
Facebook fans		 2018–19
178,543
1m 10s
89,000
10,500
190,000
99,000		 2019–20
232,565
1m 06s
114,000
11,700
190,000
100,000		 2020–21
84,740
1m 12s
122,000
13,200
190,000
100,000		 2021–22
309,344
30s
129,000
14,400
189,000
110,000

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Membership

During the financial year the ICA offered three levels of membership: Red, Green and a concessionary Blue membership.

The COVID-19 pandemic led to the closure of the ICA building and a related lack of opportunity for ICA Members to enjoy the benefits of their membership. Despite the launch of the Cinema 3 digital platform as an alternative programming outlet for Members, who were given free and unlimited access, membership numbers fell by more than half during the pandemic, and have continued to fall.

As of 31 March 2022, the ICA had 2,151 paying members (2021: 2,696), of which, there were 280 Red members, 106 Green members and 1,765 Blue members. (Blue membership is open to individuals under the age of 26, students, disabled people, Jobseekers’ Allowance claimants and pensioners – all important focuses for the ICA Membership scheme.)

The membership scheme has been reviewed following the financial year-end, with the green membership category closed and further changes under consideration.

Organisational update

There were key developments in the senior management team (SMT) during the year. In July 2021, Stefan Kalmar stepped down after five years at the helm. His replacement as the ICA’s new Director is Bengi Ünsal, who started at the beginning of March 2022.

Managing Director Kerry Bishop also departed, in December 2021, with no immediate plans to replace the role.

Subsequent to the year end, in May 2022, the Director of Finance, Lauren Richards, also moved on and a replacement, David Stacey, has since started.

The appointment of Leila Hasham as Chief Producer in September 2021 further evolved the management team.

Bengi Ünsal will lead the organisation to work towards delivering the ICA’s mission and ensuring its long-term sustainability. She is supported by fellow members of the SMT: Director of Finance, the Chief Producer and Director of Operations & Visitor Services, who collectively have robust track records in their areas of specialism.

The ICA’s wider team of 72 staff members, supplemented by freelancers, is our most vital asset. We are proud to be a London Living Wage employer, and with the support of John Lyon’s Charity we offer a Learning Apprenticeship. We want to support talent at every level and will establish career development plans for all staff. We also recognise the vulnerability of freelancers in the sector and will ensure we maximise opportunities for freelance artists and technicians. We want to broaden our team members’ potential, and to contribute to diversifying not only the ICA but the sector as a whole.

We have established a Diversity, Equity & Inclusion Working Group and an Anti-Racism Task Force. We monitor our progress in these areas, identify training and support needs and have a strong dialogue with our Board. The Board takes part in inclusivity and diversity training and continues to develop the ICA’s culture, ensuring that differing viewpoints, backgrounds and economic groups are represented at every level.

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Capital Renovation Project

Since 1968, the ICA has occupied a grade-1 listed historic building on the Mall. During the period the building was mothballed due to Covid-19 we undertook the first stage (“Phase 0”) of a phased renovation project. By the time we reopened in July 2022 we had:

During the 2021-22 financial year we drew down c.£567k of funding awarded by Arts Council England, Fidelity, Foyle Foundation, Cockayne and utilised a £20k contribution of ICA budget to fund Phase 0.

While the completion of Phase 0 has brought substantial benefits for audiences, the building remains in urgent need of further refurbishments to improve accessibility, technical and operational delivery of the programme, visitor experience, and reach our net zero targets. Furthermore, the roof, electrical and mechanical services, safety systems and general fixtures, fittings and decor are aged and in poor condition.

It is the intention of the Trustees and Senior Management Team to review the scope and design scheme for the remaining phases of the Capital Project as a priority in 2022/23. There are no funding pledges remaining, so the Capital Project fundraising campaign also requires a fresh start.

In 2020-21, £130k of capital expenditure was written off. This related to work completed between 2014 and 2019 but subsequently considered to be incompatible with the future direction of the project. Following review in 2021-22, a further £72k of this historical expenditure has been written off, leaving a balance of zero related to fixed assets under construction.

Fundraising

Fundraising is a cornerstone of the running of the ICA. We remain extremely grateful for the generous support of Arts Council England, other government support, corporate partners, trust and foundations and individual donors including Board members. Over the past two years, much-needed additional funding from the Cultural Recovery Fund (£960k in 2021-22 and £999k in 2020-21) and the Coronavirus Job Retention Scheme (£142k and £756k) has proved a lifeline, filling the gap caused by the prolonged closure of the ICA building due to COVID-19.

This funding has been on top of our National Portfolio Organisation (NPO) grant of £896k (2021: £878k). Fundraising from others, such as trusts and foundations and individual donors, netted a further £830k of income in the year (2021: £521k).

Our Development team ensures we follow best practice for charitable fundraising, active participation in fundraising regulation and compliance with the most recent codes of conduct. We continue to regularly review our policies and processes to check they are periodically refreshed, in particular with reference to our ongoing major fundraising campaign for the ICA Capital Renovation Project. In particular, the ICA:

¾ ensures adherence to the Code of Fundraising Practice and pays the annual Fundraising Levy;

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We have received no complaints about our fundraising practices in the last financial year (2020-21: no complaints).

Financial review

The ICA’s building was finally able to reopen on July 6 2021, following prolonged closure due to the COVID-19 pandemic. Since then, footfall has been running at around half pre-pandemic levels. The closure, and the subsequent slow recovery, has meant that non-fundraising income has remained challenging. The ICA has depended upon injections of funding from ACE via the Cultural Recovery Fund, and through the government’s Coronavirus Job Retention Scheme (CJRS) to offset the cost of furloughed staff.

Income

The ICA generated total income of £4,359k in the year to 31 March 2022 (2021: £3,736k), an increase of 17%.

Fundraising through grants and donations contributed 65% of income. At £2,828k, this was £326k below 2021’s £3,154k. £614k of the reduction was due to there being a full 12 months of CJRS funding in the prior year compared to 3 months in 2021-22 (£756k in 2020-21, falling to £142k in 2021-22). A £418k increase in individual donations to £563k (2021: £145k) partly offset the reduced CJRS.

Income from charitable activities was £1.0m, a significant improvement on 2021’s £214k. And commercial trading income was likewise better than the previous year, at £502k versus £360k. Both increases reflect the re-opening of the building for three quarters of the financial year. However, the combined total was £1,091k lower than the comparable pre-pandemic year to the end of March 2020, a result of the lower footfalls being experienced.

Expenditure

Expenditure continued to be controlled in the year. While costs rose 33% on the prior year, from £3,042k to £4,034k, they were still £1,131k lower than the pre-pandemic year to March 2020. Programming costs accounted for the lion’s share of the cost increase in 2021-22, rising by £804k to £2,569k, given the restart of exhibitions and screenings at the cinema.

Overall result

The overall financial result for the year ended 31 March 2022 shows an operational surplus of £397k, prior to the £72k write down of capital assets, as set out in Note 12. The net surplus of £325k has been added to net assets to get a total of £2,136k at the end of the year. These assets comprise £991k fixed assets, £987k of cash and cash equivalents, and net other current assets of £158k.

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Net movement in funds

The operational surplus on the general fund was £397k, less fund transfers totalling £331k from the general fund into designated funds. This resulted in an overall net increase in the general fund during 2021–22 of £66k.

Fixed assets

The value of the ICA’s tangible fixed assets increased by £331k in the year, with new capital expenditure on Phase 0 refurbishment of £587k offset by £72k write-off of historic costs (see page 17) and depreciation of £184k.

Outlook

As with many other cultural institutions, the ICA’s largest risk is currently the continued global political and economic volatility largely caused by COVID-19 and reflected in energy shortages, supply chain holdups, rising prices and the war in Ukraine. This combination of factors has continued to dampen visitor numbers and has adversely impacted almost all income streams. We have mitigated some risk to our income-earning activities by implementing a broad business model with diversified income streams, and have also introduced a digital programme.

Our strong commercial and marketing plans, unique programme and press awareness will ensure that we are able to continue reaching our communities. We aim to strengthen our offering further, for example bringing a broader range of music and live performances, and otherwise attracting more people from diverse backgrounds to come and partake in the life of the ICA.

We will continue to evolve the business model as is necessary to deliver the ICA’s strategic objectives while maintaining a sustainable financial framework and working to rebuild our reserves, managing both risks and financial controls. Changes at both executive and Board level during FY 2021–22 and FY 2022–23 have strengthened the organisation’s leadership, placing an increased emphasis on developing and supporting our key stakeholders – artists, audiences, membership, staff and donors. We remain committed to delivering a challenging programme for diverse audiences. We are determined to take all necessary steps to ensure we can continue to do so for years to come.

Principal risks and uncertainties

The Board maintains an ongoing risk assessment of the significant financial and non-financial risks to which the ICA is exposed. This risk assessment process identifies the strategies that are already in place to minimise risks, along with any further actions that may be required to mitigate them.

As part of its risk management strategy, the Board reviews the risks facing the organisation and the progress made in implementing systems to mitigate these risks, enhancing internal procedures as appropriate to minimise any potential impact on the ICA should any identified risks materialise. The ICA also maintains a risk register, which is reviewed regularly by the Finance & Audit Committee and annually by the full Board. The ICA’s current principal risks are detailed below:

Global economic and political volatility

The economic climate has become increasingly challenging, with supply chain shortages and soaring prices combined with recession. Visitor numbers have been slow to recover post-pandemic and almost all income streams have been negatively impacted. There is a risk that the ICA’s targets for both earned and raised income are not met and/or do not cover costs. The SMT, with the Board acting as critical partners, have plans to strengthen existing income streams and explore new opportunities to seek to maintain the ICA’s reserves. Costs

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and cash flows are also being managed and controlled to achieve financial stability at this difficult time and ensure ongoing financial operations.

Arts Council England funding

From 2023-24 Arts Council England (ACE) has reallocated at least £24m of investment a year from London to areas outside the capital. As part of that process, on 4 November 2022, ACE announced that the ICA would continue to receive a National Portfolio Organisation grant but will have its funding cut by a total of £600k, divided over three years until 2025-26. While we remain grateful for the continued support from ACE, this is a significant reduction, and the impact on the ICA’s ongoing business model is being assessed.

ICA venue

The grade 1 listed ICA building will need to be maintained in a good state of repair to mitigate the risk of it becoming unfit for the purposes of presenting our programme and failing to meet the needs and expectations of visitors, artists, partners, funders and other stakeholders, and also to meet evolving standards.

Reserves policy and going concern

Reserves policy

In summary, the ICA’s funds can be broken down as below:

As at 31 March 2022 2021
£k £k
Total funds 2,136 1,811
Of which:
Restricted funds 0 680
Designated funds
Maintenance fund 200 150
Stability fund 300
Fixed assets fund 991 403
Unrestricted ‘free’ reserves 645 578

Total funds have increased in line with the financial result for the year. Further details on the movement of all the charity’s funds are contained in note 21a to the financial statements.

Our reserves policy dictates that unrestricted general funds (excluding designated funds) must provide adequate working capital to sustain our core programme and other activities, and to manage medium-term risk, for a period of approximately three months in the event of an unanticipated reduction in income, major unforeseen expenditure, or other business and cashflow difficulties. The unrestricted general fund, which can also be described as the ICA’s ‘free’ reserves, is £645k at the end of the year (2021: £578k), and covers around two months’ future operating costs. This reflects continued poor trading conditions following the pandemic, as set out in the financial review above. The SMT and Board continue to assess options to develop the business model with a priority to rebuild reserves.

In the 2022-23 financial year the Board has allocated another £300k to a designated stability fund to provide additional resilience against adverse economic conditions. The ICA also maintains a designated fund that equal to the net book value of fixed assets, which at £991k is £331k higher than 2021’s £660k.

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Additionally, there is a designated maintenance fund of £200k (2021: £150k) to support the regular and substantial maintenance work that is required to maintain 12 Carlton House Terrace, the ICA’s central location and operating base: a Grade I listed building, which requires specific maintenance and capital works under the terms of our lease with The Crown Estate. This maintenance fund has been fully utilised in financial year 2022-23.

Accumulated surplus

The ICA’s accumulated surplus as at 31 March 2022 was £2,136k (2022: £1,811k).

Results of subsidiary companies

ICA Enterprises Limited made an operating profit for the financial year of £173k (2020–21: £58k), with £173k being payable under Gift Aid to the ICA (2020–21: £58k).

Friends of the Institute of Contemporary Arts London, Inc. (FoICAL) was set up as a subsidiary in the USA in November 2017 to support our charitable activities and programme. FoICAL is consolidated as a subsidiary undertaking of the ICA on the basis that its by-laws give the ICA power to appoint and remove members of the Board of FoICAL. In the year to 31 March 2022, FoICAL generated £219k of income (2020-21: £11k) and a loss of £5k (2020-21: profit of £1k). Grants of £154k were awarded to the ICA in the year (2020-21: zero).

Subsequent to the year end, the ICA Board, in agreement with members of the Board of FoICAL, agreed to cease the activities of FoICAL and transfer any residual funds at closure to the ICA.

Going concern

The SMT and the Board recognise the need to prioritise rebuilding the ICA’s reserves and ensuring its financial stability beyond March 2022. While audience numbers are taking longer to recover than hoped, work is continuing to help mitigate the risks facing the organisation, particularly around income generation, and the SMT has utilised the various support mechanisms instigated and offered by the UK government. The Board and the SMT are closely monitoring performance and reviewing operational plans to deliver a resilient business model.

During 2022, a number of artists generously donated works to the ICA as part of its 75[th] anniversary celebrations and in order to help create a legacy for the next 75 years. An auction of these artworks was held at Sotheby’s in October 2022 and more than £2.1m was raised. Given this strengthening of reserves, and its continued commitment to evolve the business model, the Board believe it is appropriate to adopt the going concern basis of accounting in preparing the financial statements.

Structure, governance and management

The ICA is a charitable company limited by guarantee, governed by the Memorandum and Articles of Association, with operational governance vested in the Board.

Board members are subject to re-election every three years, with a maximum term of nine years for a unique contribution. Prospective Board members are identified by existing Board members and through consultations with staff and outside parties. The Nominations & Ethics Committee makes recommendations to the full Board for consideration and approval. The skills, diversity, network and appropriate experience of Board are reviewed regularly by the Nominations & Ethics Committee to achieve the optimum balance of support of the Executive by the Board. A skills table is available to Board members and assists the Nominations & Ethics Committee in ensuring appropriate skills are sought for all new appointments.

17

Institute of Contemporary Arts Limited

Trustees’ annual report

For the year ended 31 March 2022

Prior to their appointment, candidates meet with the Chair, Executive Director and if appropriate, executive staff and other Board members. Upon their appointment, new Board members receive comprehensive induction information and appropriate introductory meetings.

The full Board meets at least four times each year. At the end of each Board meeting, Board members are invited to comment on the content of the meeting in closed session with the Chair and raise suggestions for matters to be discussed at the next meeting. An internal Code of Governance gives clear guidance to Board members and is reviewed annually by the Board.

Board members meet with the Chair each year, individually and informally, for review and discussion of their role. The performance of the Chair is reviewed annually by the Board. The Chair meets regularly with the Executive Director with an agenda to ensure that the Board is apprised of relevant developments within the organisation between meetings.

Wolfgang Tillmans’ vision is to ensure that artistic disciplines and the organisation’s theoretical agenda – for example, film, art, literature, music, performance, philosophy and so on – have equal representation on the ICA Board. The composition of the Board is focused on a constellation of various mindsets – risk-takers, people who are more cautious, technical experts, cultural producers – to drive forward the ICA.

We are thrilled to have recently welcomed three new UK Board members:

Tilda Swinton (joined 1 February 2022) is a British actor and filmmaker. Since 2018 she has sat on the ICA’s Independent Film Council. In 2020, she was awarded a BFI fellowship for her work as a performer and for her contributions to film culture and independent film exhibition.

David Kolbusz (joined 4 November 2021) is Chief Creative Officer for New York-based agency, Orchard. In 2022 he was described by Adweek as “one of the ad industry’s most sought-after creative leaders.” He has worked on numerous global brands, and his successes include the Before Alexa Amazon Super Bowl 2020 commercial, which was nominated for an Emmy.

Steve Wills (joined 27 May 2021) is a former Partner of EY, the global accounting firm. A qualified accountant, he has a background specialising in a range of consulting services, risk management and audit, and is also a member of the Tate Members Advisory Council.

The ICA has several committees to enhance its governance, and ensure closer working between the Board, the SMT and the rest of the organisation. The Finance & Audit Committee (F&A) meets in advance of each Board meeting to review, in detail, the charity’s financial affairs and risk register in order to make recommendations to the full Board. F&A is chaired by Board member, Steve Wills, with Executive and Board members forming the Committee. The Board presents its reports and financial statements each year in accordance with current accounting standards, the Companies Act 2006 and the Statement of Recommended Practice (SORP) – Accounting and Reporting by Charities, applicable to charities preparing their accounts in accordance with Financial Reporting Standard (FRS) 102.

Alongside the Finance & Audit Committee, the ICA has five other committees:

18

Institute of Contemporary Arts Limited

Trustees’ annual report

For the year ended 31 March 2022

New committee members are being actively recruited as part of succession planning for new Board members in order to ensure longer-term stabilisation and resilience.

All Trustees give their time voluntarily and receive no benefits from the charity.

The Board has delegated day-to-day executive management of the organisation to the Director (Bengi Ünsal). The Director is supported by the SMT in all aspects of organisational strategy and management, including programme and curatorial, operations, visitor services, commercial and finance.

The ICA is committed to a continuous programme of governance review and improvement. The Board has started a fresh review of the Charity Governance Code and how it applies to the charity, and has agreed to follow the Code and each of its seven principles, which relate to: organisational purpose; leadership; integrity; decisionmaking, risk and control; board effectiveness; diversity; and openness and accountability.

Remuneration policy for key management personnel and staff

The remuneration procedure for the Directors is led by the Chair alongside the Board and F&A, taking into account performance and benchmarked against salaries paid in comparable organisations. The Directors are responsible for staff remuneration reviews, which occur annually or at transition points within the context of overall budgets approved by the Board. Remuneration for all posts is regularly benchmarked externally.

ICA Apprentices are paid equivalent to the London Living Wage (LLW). The ICA has been a London Living Wage employer since 1 May 2017, receiving formal accreditation as a Living Wage employer in February 2019 and adopting the latest LLW rate increase with effect from 1 April 2021.

Policy for the employment of disabled persons

The ICA is committed to promoting equal opportunities for all of its staff and job applicants, and to upholding the Equality Act 2010. We aim to create an environment that is free from discrimination or harassment, and we promote diversity and equality through our recruitment strategy. We encourage applications from all backgrounds, communities and industries, and we are committed to having a team that is made up of diverse skills, experiences and abilities. We are taking steps to resolve the barriers to access in some of our offices, and in the meantime are continuing to encourage interest from applicants who require reasonable adjustments within the workplace.

ICA policies and salaries are regularly benchmarked with our peers to achieve improvements and greater impacts, not least in line with ACE’s Creative Case for Diversity. The ICA embraces statutory guidelines and regularly consults with Disability representatives to improve our offers and revise our policies.

Equality, diversity and belonging

The ICA seeks to promote an organisational environment that opposes discrimination at all levels, whether on grounds of age, disability, gender reassignment, marriage and civil partnership, pregnancy and maternity, race, religion or belief, sex or sexual orientation, backed up by clear and thorough policy and training.

19

Institute of Contemporary Arts Limited

Trustees’ annual report

For the year ended 31 March 2022

We are committed to building an organisation that is a true representation of our city and our country today by supporting Black, Brown and Asian people, women, LGBTQI+ and people with (dis)abilities, as well as those from disenfranchised socio-economic backgrounds, disadvantaged and underrepresented communities, to participate and provide opportunities to be part of our work. We continue to look inwards at the structures and dynamics within the ICA to make sure that our organisational culture aligns with our inclusive programme. We continually review our policies and processes to respond to and lead on the critical issues of racial inequality and antiBlackness in our society.

Anti-racism strategy

Diversity, equity and inclusion remain incredibly important to the ICA and we consider our audiences’ diversity as an essential benchmark for our success. Compared to other cultural institutions, we are very successful with younger (55% under 35) and ethnically diverse (22% Black, Asian and ethnically diverse) audiences. However, we recognise that there is work to do with the ethnic diversity of our audiences, Board, staff and artistic partners in order to ensure we more accurately reflect our local community in London.

Since March 2022, we have been led by a Female, Turkish Director from a Muslim background. With Bengi Ünsal’s appointment, the whole organisation is aligned around her goal of ensuring the diversity of our Board, workforce and programme.

We have an established an Equity, Diversity and Inclusion (EDI) Working Group who meet weekly, providing our staff with the opportunity to participate in making meaningful changes. Actions that have come out of the group in the past six months include: addressing our language, staff and board recruitment to ensure access, equity and diversity; learning from evaluations to inform 23/24 programming with particular focus on care for the communities we serve.

We have also established an Anti-Racism Task Force which meets monthly and is attended by staff and our Board. The group is dedicated to delivering the actions from the 2020 report by The Monitoring Group which identified a number of areas for the ICA to improve upon following their audit of our organisation. We have written an antiracism strategy and action plan which is in the final stages of completion and which will be published on our website. The Action Plan is reviewed at each Board meeting, and monthly at the Anti-Racism Task Force (ARTF). We are in the process of appointing an Ethnicity Champion from our Board who will lead on the Anti-Racism agenda point at Board meetings and liaise with the ARTF to drive progress and be an ambassador for change.

We continually monitor our progress, identify training and support needs. All of our actions are fully supported and endorsed by our Board. The Board takes an active role in developing the ICA’s culture with the ultimate objective that differing viewpoints, backgrounds and economic groups are represented at every level.

Employee information

The ICA employs full-time and part-time permanent staff, guaranteed-hours contracted and casual workers, freelancers and staff on fixed-term project-based contracts for a variety of roles. The organisation is organised and run within the following departments: Communications & Marketing, Curatorial, Development, the Directors’ Office, Events, Finance, Operations, Sales & Visitor Services, and Technical.

To keep staff abreast of updates to the organisation and its programme, we have weekly staff meetings, weekly heads of department meetings, team meetings, exhibition briefings as appropriate, and 360-degree project meetings and debriefs. The ICA has a recognition agreement in place with BECTU and holds regular meetings with staff representatives.

20

Institute of Contemporary Arts Limited

Trustees’ annual report

For the year ended 31 March 2022

All staff have access to a Handbook that includes policies and information relating to, among others: staff benefits; health and safety; holidays; sickness and absence; IT; maternity, paternity and parental leave; harassment; grievances and disputes; and whistleblowing. Staff are also provided with staff cards that give them access to discounts and ICA benefits; and permanent staff have access to an online HR portal that allows them to update their personal details, access company policies and keep track of their attendance, annual leave and absences.

All staff also have access to a confidential employee assistance programme, provided by Health Assured, that provides free support on employment, financial and personal matters, including health and well-being.

Funds held as custodian trustee on behalf of others

The ICA holds no custodian funds.

Statement of trustees’ responsibilities

The trustees (who are also directors of Institute of Contemporary Arts Limited for the purposes of company law) are responsible for preparing the trustees’ annual report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial year that give a true and fair view of the state of affairs of the charitable company and group and of the incoming resources and application of resources, including the income and expenditure, of the charitable company or group for that period. In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Insofar as the trustees are aware:

21

Institute of Contemporary Arts Limited

Trustees’ annual report

For the year ended 31 March 2022

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

Members of the charity guarantee to contribute an amount not exceeding £1 to the assets of the charity in the event of winding up. The total number of such guarantees at 31 March 2022 was 12 (2021: 13). The trustees are members of the charity, but this entitles them only to voting rights. The trustees have no beneficial interest in the charity.

Auditor

Sayer Vincent LLP was reappointed as the charitable company’s auditor during the year and has expressed its willingness to continue in that capacity.

The trustees’ annual report has been approved by the trustees on 12 December 2022 and signed on their behalf by:

Wolfgang Tillmans Chair

22

Independent auditor’s report

To the members of

Institute of Contemporary Arts Limited

Independent auditor’s report

Opinion

We have audited the financial statements of the Institute of Contemporary Arts Limited (the ‘parent charitable company’) and its subsidiaries (the ‘group’) for the year ended 31 March 2022, which comprise the consolidated statement of financial activities, the group and parent charitable company balance sheets, the consolidated statement of cash flows and the 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, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the group financial statements section of our report. We are independent of the group and parent charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the Financial Reporting Council’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 Institute of Contemporary Arts’ 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 other information comprises the information included in the trustees’ annual report other than the group financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the group 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

23

Independent auditor’s report

To the members of

Institute of Contemporary Arts Limited

assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the group financial statements or our knowledge obtained in the course of 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 group 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.

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

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

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 and Charities Act 2011 requires us to report to you if, in our opinion:

¾ the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies’ exemptions in preparing the trustees’ annual report and from the requirement to prepare a strategic report.

Responsibilities of the trustees

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

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

24

Independent auditor’s report

To the members of

Institute of Contemporary Arts Limited

Auditor’s responsibilities for the audit of the financial statements

We have been appointed auditor under the Companies Act 2006 and section 151 of the Charites Act 2011 and report in accordance with those Acts.

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

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

Capability of the audit in detecting irregularities

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and noncompliance with laws and regulations, our procedures included the following:

¾ In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments, assessed whether the judgements made in making accounting estimates are indicative of a potential bias and tested significant transactions that are unusual or those outside the normal course of business.

25

Independent auditor’s report

To the members of

Institute of Contemporary Arts Limited

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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

Use of our report

This report is made solely to the charitable company's members as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and section 144 of the Charities Act 2011 and regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Judith Miller (Senior statutory auditor) 1 6 December 2022 for and on behalf of Sayer Vincent LLP, Statutory Auditor Invicta House, 108-114 Golden Lane, LONDON, EC1Y 0TL

Sayer Vincent LLP is eligible to act as auditor in terms of section 1212 of the Companies Act 2006

26

Institute of Contemporary Arts Limited

Consolidated statement of financial activities (incorporating income and expenditure account)

For the year ended 31 March 2022

Note
Income from:
Grants, donations and
legacies
3
Charitable activities
Programme activities
4
Other trading activities
5
Investments
Other
Total income
Expenditure on:
Raising funds
6
Charitable activities
Programme activities
6
Associated activities
6
Exceptional item
26
Total expenditure
Net income/
(expenditure)
for the year
7
Transfers between funds
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Total funds
carried forward		 Unrestricted
General
Designated
£
£
2,586,083
–
656,685
–
501,567
–
1,040
–
28,968
–
3,774,343
–
253,068
15,526
2,050,397
117,256
1,073,546
51,336
–
–
3,377,011
184,118
397,332
(184,118)
(331,400)
1,122,340
65,932
938,222
578,464
553,084
644,396
1,491,306		 Restricted
£
241,632
343,070
–
–
–
584,702
71,620
401,675
-
–
473,295
111,407
(790,940)
(679,533)
679,533
–		 2022
Total
£
2,827,715
999,755
501,567
1,040
28,968
4,359,045
340,214
2,569,328
1,124,882
–
4,034,424
324,621
-
324,621
1,811,081
2,135,702		 2021
Total
£
3,154,182
213,797
359,641
3,196
5,112
3,735,928
444,377
1,765,467
832,445
–
3,042,289
693,639
–
693,639
1,117,442
1,811,081

All the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above. Movements in funds are disclosed in Note 21 to the financial statements.

27

Institute of Contemporary Arts Limited

Balance sheet

As at 31 March 2022

Note
Fixed assets:
Tangible assets
12
Debenture loan to subsidiary company
Investments
13
Current assets:
Stock
16
Debtors
17
Current asset investments
13
Cash at bank and in hand
Liabilities:
Creditors: amounts falling due
within one year
18
Net current assets
Total assets less current liabilities
Total net assets
Funds:
21
Restricted income funds
Unrestricted income funds:
Designated funds – other
General funds
Total unrestricted funds
Total funds		 The group
2022
2021
£
£
991,306
659,666
-
-
-
-
991,306
659,666
166,465
179,551
447,894
327,271
18,255
1,023,969
968,443
252,675
1,601,057
1,783,466
(456,661)
(632,051)
1,144,396
1,151,415
2,135,702
1,811,081
2,135,702
1,811,081
-
679,533
1,491,306
553,084
644,396
578,464
2,135,702
1,131,548
2,135,702
1,811,081		 The charity
2022
2021
£
£
991,306
659,666
25,000
25,000
2
2
1,016,308
684,668
166,465
179,551
414,951
256,615
18,255
1,023,969
877,768
212,313
1,477,439
1,672,448
(386,011)
(578,759)
1,091,428
1,093,689
2,107,736
1,778,357
2,107,736
1,778,357
-
679,533
1,491,306
553,084
616,430
545,740
2,107,736
1,098,824
2,107,736
1,778,357		 The charity
2022
2021
£
£
991,306
659,666
25,000
25,000
2
2
1,016,308
684,668
166,465
179,551
414,951
256,615
18,255
1,023,969
877,768
212,313
1,477,439
1,672,448
(386,011)
(578,759)
1,091,428
1,093,689
2,107,736
1,778,357
2,107,736
1,778,357
-
679,533
1,491,306
553,084
616,430
545,740
2,107,736
1,098,824
2,107,736
1,778,357
684,668
179,551
256,615
1,023,969
212,313
1,672,448
(578,759)
1,093,689
1,778,357
1,778,357
679,533
553,084
545,740
1,098,824
1,778,357

!""#$%&' () +& ,$-#' $. /0 1&2&3(&# 0400 -.' 567.&' $. +&6# (&+-89 ():

!"#$%&'% ()##*&'+ ,-&).

28

Institute of Contemporary Arts Limited Consolidated statement of cash flows

For the year ended 31 March 2022

Note
Cash flows from operating activities
22
Net cash provided by/(used in) operating activities
Cash flows from investing activities:
Dividends, interest and rents from investments
Purchase of fixed assets

Net cash used in investing activities

Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the
year

Cash and cash equivalents at the end of the year
23		 2022
£
£
296,392
1,040
(587,378)
(586,338)
(289,946)
1,276,644
986,698		 2021
£
£
1,000,928
3,196
(195,491)
(192,295)
808,633
468,011
1,276,644		 2021
£
£
1,000,928
3,196
(195,491)
(192,295)
808,633
468,011
1,276,644
808,633
468,011
1,276,644

29

Institute of Contemporary Arts Limited Notes to the financial statements

For the year ended 31 March 2022

1 Accounting policies

a) Statutory information

Institute of Contemporary Arts is a charitable company limited by guarantee and is incorporated in England and Wales. The registered office address (and principal place of business) is The Mall, London SW1Y 5AH.

b) Basis of preparation

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), (Charities SORP FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

The accounting policies are unchanged from the previous year, with the addition of a policy on how heritage assets are recognised (m).

Assets and liabilities are initially recognised at historical cost convention as modified by the revaluation of certain fixed assets or transaction value unless otherwise stated in the relevant accounting policy or note.

These financial statements consolidate the results of the charitable company – Institute of Contemporary Arts Limited; its wholly-owned subsidiary registered in England and Wales – ICA Enterprises Limited; and its US subsidiary – Friends of the Institute of Contemporary Arts London, Inc. on a line-by-line basis. Transactions and balances between the ICA and its subsidiaries have been eliminated from the consolidated financial statements. Balances with the subsidiaries are disclosed in the notes of the ICA's balance sheet. A separate statement of financial activities, or income and expenditure account, for the ICA itself is not presented because the ICA has taken advantage of the exemptions afforded by section 408 of the Companies Act 2006.

c) Public benefit entity

The ICA meets the definition of a public benefit entity under FRS 102.

d) Going concern

The Board consider that there are no material uncertainties about the ICA's ability to continue as a going concern.

30

Institute of Contemporary Arts Limited Notes to the financial statements

For the year ended 31 March 2022

1 Accounting policies (continued)

e) Income

Income is recognised when the ICA has entitlement to the funds, any performance conditions attached to the income have been met, it is probable that the income will be received and that the amount can be measured reliably.

Income from government and other grants, whether ‘capital’ grants or ‘revenue’ grants, is recognised when the ICA has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.

The principal source of grant income is Arts Council England.

Income received in advance of the provision of a specified service is deferred until the criteria for income recognition are met.

Other trading activities represents ICA Enterprises Limited’s income derived from sponsorships, the sale of films, the café bar and the private hire of the ICA’s spaces. Incoming resources are accounted for when ICA Enterprises Limited has entitlement to the funds, certainty of receipt and the amount is measurable. Where income is received in advance it is deferred until such a point as ICA Enterprises Limited is entitled to the income.

f) Donations of gifts, services and facilities

Donated professional services and donated facilities are recognised as income when the ICA has control over the item or received the service, any conditions associated with the donation have been met, the receipt of economic benefit from the use by the ICA of the item is probable and that economic benefit can be measured reliably. In accordance with the Charities SORP (FRS 102), volunteer time is not recognised so refer to the Board’s annual report for more information about their contribution.

On receipt, donated gifts, professional services and donated facilities are recognised on the basis of the value of the gift to the ICA which is the amount the ICA would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.

g) Interest receivable

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

31

Institute of Contemporary Arts Limited Notes to the financial statements

For the year ended 31 March 2022

1 Accounting policies (continued)

h) Fund accounting

The ICA maintains the following funds:

Restricted funds

Restricted funds represent grants, donations and legacies received which the donor allocates for specific purposes.

General unrestricted funds

These represent funds which are expendable to use to further any purposes of the ICA. Unrestricted funds are expendable at the discretion of the Board in the furtherance of the objectives of the ICA. Such funds may be held to finance both working capital and capital investment.

Designated funds

Designated funds are unrestricted funds of the ICA which have been set aside by the Board to fund particular future activities of the ICA.

i) Expenditure

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required, and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:

Costs of raising funds relate to the costs incurred by the ICA in inducing third parties to make voluntary contributions to it, as well as the cost of any activities with a fundraising purpose, and costs of commercial trading activities.

Expenditure on charitable activities includes the costs of programme and associated activities undertaken to further the purposes of the ICA and their associated support costs.

32

Institute of Contemporary Arts Limited Notes to the financial statements

For the year ended 31 March 2022

1 Accounting policies (continued)

j) Allocation of support costs

Resources expended are allocated to the particular activity where the cost relates directly to that activity. However, the cost of overall direction and administration of each activity, comprising the salary and overhead costs of the central function, is apportioned on the following basis which are an estimate, based on staff time, of the amount attributable to each activity.

Where information about the aims, objectives and projects of the ICA is provided to potential beneficiaries, the costs associated with this publicity are allocated to charitable expenditure.

Where such information about the aims, objectives and projects of the ICA is also provided to potential donors, activity costs are apportioned between fundraising and charitable activities on the basis of area of literature occupied by each activity.

Raising funds 5%
Programme activities 36%
Associated activities 16%
Support costs 3%
Governance costs 40%

Support and governance costs are re-allocated to each of the activities on the following basis, which is an estimate, based on staff time, of the amount attributable to each activity.

Raising funds 8% Programme activities 64% Associated activities 28%

Governance costs are the costs associated with the governance arrangements of the ICA. These costs are associated with constitutional and statutory requirements and include any costs associated with the strategic management of the ICA’s activities.

k) Operating leases

Rental charges are charged to the statement of financial activities on a straight-line basis over the term of the lease.

33

Institute of Contemporary Arts Limited Notes to the financial statements

For the year ended 31 March 2022

1 Accounting policies (continued)

l) Tangible and intangible fixed assets

Items of equipment are capitalised where the purchase price exceeds £500. Depreciation costs are allocated to activities on the basis of the use of the related assets in those activities. Assets are reviewed for impairment if circumstances indicate their carrying value may exceed their net realisable value and value in use.

Assets in the course of construction are stated at cost. These assets are not depreciated until they are available for use.

Depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life. The cost of long leasehold buildings is depreciated over the unexpired term of the lease. Improvements to leasehold premises and other assets are depreciated as set out below:

Long leasehold buildings
over the length of the lease		 Long leasehold buildings
over the length of the lease
Leasehold improvement 5%
Website 20%
Fixtures and fittings including
soft furnishings and other building innovation 20%
Furniture and equipment including
computer hardware, technical equipment,
office equipment and furniture 20%–33.33%

m) Heritage assets

The ICA maintains heritage assets including documents, press cuttings, and multimedia recordings. There is a lack of records kept on the original purchase costs; these assets also have no readily available market values. For these reasons, the heritage assets are not recognised in the balance sheet.

n) Investments

Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price. Any change in fair value will be recognised in the statement of financial activities and any excess of fair value over the historic cost of the investments will be shown as a fair value reserve in the balance sheet. Investment gains and losses, whether realised or unrealised, are combined and shown in the heading ‘Net gains/(losses) on investments’ in the statement of financial activities. The ICA does not acquire put options, derivatives or other complex financial instruments.

o) Investments in subsidiaries

Investments in subsidiaries are at cost.

34

Institute of Contemporary Arts Limited Notes to the financial statements

For the year ended 31 March 2022

1 Accounting policies (continued)

p) Stocks

Stocks are stated at the lower of cost and net realisable value. In general, cost is determined on a first in first out basis and includes transport and handling costs. Net realisable value is the price at which stocks can be sold in the normal course of business after allowing for the costs of realisation. Provision is made where necessary for obsolete, slow-moving and defective stocks. Donated items of stock, held for distribution or resale, are recognised at fair value which is the amount the charity would have been willing to pay for the items on the open market.

q) Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

r) Cash at bank and in hand

Cash at bank and cash in hand comprises cash that is required for working capital requirements and excludes cash held for investment and other long-term purposes.

s) Creditors and provisions

Creditors and provisions are recognised where the ICA has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

t) Financial instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

u) Pensions

The ICA makes payments to defined contribution pension schemes on behalf of employees. The assets of the schemes are held separately from those of the ICA in independently administered funds. The pension cost charge represents contributions payable to the funds during the year. The ICA has no liability under the schemes other than the payment of those contributions.

35

Institute of Contemporary Arts Limited Notes to the financial statements

For the year ended 31 March 2022

2 Detailed comparative of prior year figures

Income from:
Grants, donations and legacies
Charitable activities
Programme activities
Other trading activities
Investment
Other
Total income
Expenditure on:
Raising funds
Charitable activities
Programme activities
Associated activities
Exceptional item
Total expenditure
Net (expenditure)/
income for the year
Transfers between funds
Net movement in funds
Total funds brought forward


Total funds carried forward		 General
£
2,804,182
41,608
359,641
3,196
5,112
3,213,739
162,899
1,512,107
832,445
-
2,507,451
706,288
(209,837)
496,451
82,013

578,464		 Designated
£
-
-
-
-
-
-
151,530
-
-
-
151,530
(151,530)
209,837
58,307
494,777

553,084		 Restricted
£
350,000
172,189
-
-
-
522,189
129,948
253,360
-
-
383,308
138,881
-
138,881
540,652
679,533		 Total
£
3,154,182
213,797
359,641
3,196
5,112
3,735,928
444,377
1,765,467
832,445
-
3,042,289
693,639
-
693,639
1,117,442
1,811,081

36

Institute of Contemporary Arts Limited Notes to the financial statements

For the year ended 31 March 2022

3a Income from grants, donations and legacies (current year)

3a
Income from grants, donations and legacies (current year)
Unrestricted
£
Arts Council England
1,855,408
Other grants
168,142
Donations
562,533
2,586,083
3b
Income from grants, donations and legacies (prior year)
Unrestricted
£
Arts Council England
1,877,778
Other grants
781,636
Donations
144,768
2,804,182
4a
Income from charitable activities (current year)
Unrestricted
£
Exhibition and Theatre Tax Relief
152,432
Exhibition income
75,847
Box office
253,406
Sponsorship
175,000
Education and Learning
-
Total income from charitable activities
656,685		 Restricted
£
241,632
-
-
241,632
Restricted
£
-
350,000
-
350,000
Restricted
£
-
333,708
-
-
9,362
343,070		 2022
Total
£
2,097,040
168,142
562,533
2,827,715
2021
Total
£
1,877,778
1,131,636
144,768
3,154,182
2022
Total
£
152,432
409,555
253,406
175,000
9,362
999,755

37

Institute of Contemporary Arts Limited Notes to the financial statements

For the year ended 31 March 2022

4b
Income from charitable activities (prior year)
Arts Council England
Exhibition and Theatre Tax Relief
Exhibition income
Box office
Sponsorship
Education and Learning
Total income from charitable activities
5a
Income from other trading activities (current year)
Sales of books, merchandise and Artists’ Editions
Membership schemes
Bar/café income
Hire income
Other
5b
Income from other trading activities (prior year)
Sales of books, merchandise and Artists’ Editions
Membership schemes
Bar/café income
Hire income
Other		 Unrestricted
£
-
-
9,710
1,898
-
30,000
41,608
Unrestricted
£
176,613
79,676
5,311
223,933
16,034
501,567
Unrestricted
£
107,407
84,358
1,595
102,019
64,262
359,641		 Restricted
£
55,000
-
99,104
-
-
18,085
172,189
Restricted
£
–
–
–
–
–
-
Restricted
£
-
-
-
-
-
-		 2021
Total
£
55,000
-
108,814
1,898
-
48,085
213,797
2022
Total
£
176,613
79,676
5,311
223,933
16,034
501,567
2021
Total
£
107,407
84,358
1,595
102,019
64,262
359,641

38

Institute of Contemporary Arts Limited Notes to the financial statements

For the year ended 31 March 2022

6a Analysis of expenditure (current year)

Staff costs (Note 8)
Cinema
Exhibitions
Education, talks and events
Other projects
Marketing and new media
Live and performances
Supporter development
Hire
Legal and professional fees
Audit fees
Premises
Overheads
Trading costs
Depreciation
Support costs
Governance costs
Total expenditure		 Cost of
raising
funds
£
184,963
–
–
–
–
–
–
8,608
–
–
–
–
–
–
184,963		 Charitable activities
Programme
activities
Associated
activities
Governance
costs
Support
costs
2022 Total
£
£
£
£
£
599,825
290,866
35,000
743,533
1,854,187
184,122
–
–
–
184,122
657,513
–
–
–
657,513
–
–
–
–
–
–
–
–
–
–
5,960
163,725
–
–
169,685
–
–
–
–
–
–
–
–
–
8,608
–
43,504
–
–
43,504
–
–
53,096
26,199
79,295
–
–
15,000
–
15,000
–
–
–
242,842
242,842
14,446
–
–
439,177
453,623
–
141,927
–
-
141,927
599,825
–
–
184,118
184,118
1,461,866
640,022
103,096
1,635,869
4,034,424
1,041,805
456,115
–
(1,635,869)
–
65,657
28,745
(103,096)
–
–
2,569,328
1,124,882
–
–
4,034,424		 2021 Total
£
1,842,036
34,292
188,089
–
–
173,031
–
5,005
3,747
66,986
14,800
138,707
355,286
68,782
151,528
193,571
137,949
8,694		 3,042,289
–
–
340,214 3,042,289

39

Institute of Contemporary Arts Limited Notes to the financial statements

For the year ended 31 March 2022

6b Analysis of expenditure (prior year)

Staff costs (Note 8)
Cinema
Exhibitions
Education, talks and events
Other projects
Marketing and new media
Live and performances
Supporter development
Hire
Legal and professional fees
Audit fees
Premises
Overheads
Trading costs
Depreciation
Support costs
Governance costs
Total expenditure		 Cost of
raising funds
£
229,119
-
–
–
–
4,340
–
5,005
3,747
–
–
–
–
–
–		 Charitable activities
Programme
activities
Associated
activities
Governance
costs
Support costs
2021 Total
£
£
£
£
£
730,209
219,003
35,000
628,705
1,842,036
34,292
–
–
–
34,292
188,089
–
–
–
188,089
–
–
–
–
–
–
–
–
–
–
2,745
165,946
–
–
173,031
–
–
–
–
–
–
–
–
–
5,005
–
–
–
–
3,747
–
–
53,200
13,786
66,986
–
–
14,800
–
14,800
–
–
–
138,707
138,707
6,946
–
–
348,340
355,286
–
68,782
–
–
68,782
–
–
–
151,528
151,528
242,211
187,121
15,045		 962,281
453,731
103,000
1,281,066
3,042,289
743,414
350,531
–
(1,281,066)
–
59,772
28,183
(103,000)
–
–
444,377 1,765,467
832,445
–
–
3,042,289

7 Net income/(expenditure) for the year

This is stated after charging:

2022 2021
£ £
Depreciation 184,118 151,528
Loss on disposals of tangible fixed assets – 129,498
Operating lease rentals:
Property 21,014 21,014
Auditors’ remuneration (excluding VAT):
Audit 15,000 14,800

40

Institute of Contemporary Arts Limited Notes to the financial statements

For the year ended 31 March 2022

8 Analysis of staff costs, trustee remuneration and expenses, and the cost of key management personnel

Staff costs were as follows:

Staff costs were as follows:
Salaries and wages
Redundancy and termination costs
Social security costs
Employer’s contribution to defined contribution pension schemes		 2022
£
1,623,938
30,800
160,141
39,308
1,854,187		 2021
£
1,627,695
22,072
150,052
42,217
1,842,036

The following number of employees received employee benefits (excluding employer national insurance and pension costs) during the year between:

pension costs) during the year between:
2022 2021
No. No.
£60,000 – £69,999 2 2
£70,000 – £79,999 - -
£80,000 – £89,999 1 -
£90,000 – £99,999 1 2
£100,000 – £109,999 1 -

The total employee benefits including employer national insurance contributions and pension contributions of the key management personnel were £479,117 (2021: £382,665).

The Members of the Board, the charity’s trustees, were not paid or received any other benefits from employment with the charity in the year (2021: £nil). No Members of the Board received payment for professional or other services supplied to the charity (2021: £nil).

41

Institute of Contemporary Arts Limited Notes to the financial statements

For the year ended 31 March 2022

9 Staff numbers

The average number of employees (head count based on number of staff employed) during the year was as follows:

Raising funds
Programme activities
Associated activities
Support
Governance		 Full time
2022
2021
No.
No.
4
6
11
12
6
3
9
9
-
1
30
31		 Part time
2022
2021
No.
No.
-
–
24
26
7
15
4
5
–
–
35
45		 Part time
2022
2021
No.
No.
-
–
24
26
7
15
4
5
–
–
35
45
45

10 Related party transactions

The following related party transactions occurred during the 2021-22 financial year:

FoICAL made a grant of £153,974 or US$202,692 to the ICA (2021: £nil or US$Nil).

A management charge of £125,000 (2021: £22,000) and a debenture loan interest of £1,250 (2021: £1,250) were charged by the ICA to the trading subsidiary, ICA Enterprises Limited.

ICA Enterprises Limited made a gift aided donation of £173,109 (2021: £58,240) to the ICA.

The ICA received £486,334 of donations from members of the Board during the financial year (2021: £24,858).

There were no other donations from related parties which are outside the normal course of business and no restricted donations from related parties.

11 Taxation

The charity is exempt from corporation tax as all its income is charitable and is applied for charitable purposes. The charity's trading subsidiary ICA Enterprises Limited gift aids available profits to the parent charity.

42

Institute of Contemporary Arts Limited Notes to the financial statements

For the year ended 31 March 2022

12 Tangible fixed assets

The charity and
group
Cost
At the start
of the year
Additions
in year
Disposals
in year
At the end
of the year
Depreciation
At the start
of the year
Charge for
the year
Eliminated
on disposal
At the end
of the year
Net book value
At the end of
the year
At the start
of the year		 Fixed assets in
the course of
construction
Long
leasehold
buildings
Improvements
to leasehold
buildings
Website
Fixtures
and
fittings
Furniture
and
equipment
£
£
£
£
71,620
150,000
217,962
57,892
540,282
161,409
–
–
541,094
–
–
46,284
(71,620)
–
–
–
–
–
–
150,000
759,056
57,892
540,282
207,693
–
49,231
31,500
23,157
313,925
121,686
–
2,235
31,568
11,578
113,806
24,931
–
–
–
–
–
–
–
51,466
63,068
34,735
427,731
146,617
–
98,535
695,988
23,157
112,551
61,076
71,620
100,769
186,462
34,735
226,357
39,723		 Total
£
1,199,165
587,378
(71,620)
1,714,923
539,499
184,118
–
723,617
991,306
659,666

All of the above assets are used for charitable purposes.

£71,620 was written off relating to work already completed but now considered incompatible with future capital plans.

43

Institute of Contemporary Arts Limited Notes to the financial statements

For the year ended 31 March 2022

13 Investments

The group The charity
2022 2021 2022 2021
Fixed asset investments £ £ £ £
Investment in subsidiary – – 2 2

In addition to the above, the ICA holds current asset investments of £18,255 (2021: £1,023,969). This is cash held separately, which is not being used as working capital.

44

Institute of Contemporary Arts Limited Notes to the financial statements

For the year ended 31 March 2022

14 Subsidiary undertaking

The charitable company owns the whole of the issued ordinary share capital of ICA Enterprises Limited, a company with registration number 01461527 in England. The subsidiary is used for non-primary purpose trading activities. Available profits are gift aided to the charitable company.

The charitable company has the power to appoint all members and directors of Friends of the Institute of Contemporary Arts London, Inc. (FoICAL) and the ability to benefit from FoICAL; as such FoICAL is treated as a subsidiary undertaking of the ICA.

All activities of ICA Enterprises Limited and FoICAL have been consolidated on a line by line basis in the statement of financial activities. A summary of the results of the subsidiaries is shown below.

Turnover
Cost of sales
Gross profit
Administrative expenses
Grant awarded to the ICA
Management charge payable to parent undertaking
Operating profit
Interest payable
Profit on ordinary activities before tax
Gift Aid to parent undertaking
Corporation Tax
Profit/(loss) for the financial year after tax
Retained earnings
Retained earnings brought forward
Profit/(loss) for the financial year
Profits distributed to parent under Gift Aid
Retained earnings carried forward
The aggregate of the assets, liabilities and funds was:
Assets
Liabilities
Funds		 FoICAL
2022
2021
£
£
218,932
10,509
-
-
218,932
10,509
(69,716)
(9,076)
(153,974)
-
–
–
(4,758)
1,433
–
–
(4,758)
1,433
–
–
–
–
(4,758)
1,433
7,722
6,289
(4,758)
1,433
-
-
2,964
7,722
65,673
15,358
(62,709)
(7,636)
2,964
7,722		 ICA Enterprises
2022
2021
£
£
404,242
103,614
(41,464)
(3,747)
362,778
99,867
(63,419)
(18,377)
-
-
(125,000)
(22,000)
174,359
59,490
(1,250)
(1,250)
173,109
58,240
–
–
–
–
173,109
58,240
25,002
25,002
173,109
58,240
(173,109)
(58,240)
25,002
25,002
102,142
284,674
(77,140)
(259,672)
25,002
25,002		 ICA Enterprises
2022
2021
£
£
404,242
103,614
(41,464)
(3,747)
362,778
99,867
(63,419)
(18,377)
-
-
(125,000)
(22,000)
174,359
59,490
(1,250)
(1,250)
173,109
58,240
–
–
–
–
173,109
58,240
25,002
25,002
173,109
58,240
(173,109)
(58,240)
25,002
25,002
102,142
284,674
(77,140)
(259,672)
25,002
25,002
99,867
(18,377)
-
(22,000)
59,490
(1,250)
58,240
–
–
58,240
25,002
58,240
(58,240)
2,964
65,673
(62,709)
2,964		 25,002
284,674
(259,672)
25,002

45

Institute of Contemporary Arts Limited Notes to the financial statements

For the year ended 31 March 2022

15 Parent charity

The parent charity’s gross income and the results for the year are disclosed as follows:

Gross income
Result for the year
16
Stock
Bookshop, merchandise and editions		 2022
2021
£
£
4,189,202
3,645,055
329,379
692,215
The group and charity
2022
2021
£
£
166,465
179,551		 2021
£
3,645,055
692,215

17 Debtors

Trade debtors
Amounts owed from group undertakings
Other debtors
Prepayments and accrued income



 The group
2022
2021
£
£
61,599
84,547
-
-
5,301
2,980
380,994
239,744
447,894
327,271		 The charity
2022
2021
£
£
33,957
17,731
60,772
-
6,288
2,980
380,994
235,904
482,011
256,615		 The charity
2022
2021
£
£
33,957
17,731
60,772
-
6,288
2,980
380,994
235,904
482,011
256,615
256,615

18 Creditors

Trade creditors
Amounts owed to group undertakings
Taxation and social security
Other creditors
Accruals
Deferred income



 The group
2022
2021
£
£
116,207
216,000
-
-
46,157
12,921
15,989
13,650
89,259
100,191
189,049
289,289
456,661
632,051		 The charity
2022
2021
£
£
108,511
207,901
49,500
189,016
46,157
12,921
15,989
13,650
71,625
84,982
161,289
70,289
453,071
578,759

46

Institute of Contemporary Arts Limited Notes to the financial statements

For the year ended 31 March 2022

19 Deferred income

The deferred income comprises the advance payments for grants and the hires of the ICA’s venue that are to be delivered in the future.

Balance at the beginning of the year
Amount released to income in the year
Amount deferred in the year
Balance at the end of the year		 The group
2022
2021
£
£
289,289
116,115
(289,289)
(116,115)
189,049
289,289
189,049
289,289		 The charity
2022
2021
£
£
70,289
81,565
(70,289)
(81,565)
161,289
70,289
161,289
70,289		 The charity
2022
2021
£
£
70,289
81,565
(70,289)
(81,565)
161,289
70,289
161,289
70,289
70,289

20a Analysis of group net assets between funds (current year)

General
unrestricted
funds
£
Tangible fixed assets
-
Net current assets
644,396
Net assets at the end of the year
644,396		 Designated
funds
£
991,306
500,000
1,491,306		 Restricted
funds
£
-
-
-		 Total
funds
£
991,306
1,144,396
2,135,702

20b Analysis of group net assets between funds (prior year)

General
unrestricted
funds
£
Tangible fixed assets
-
Net current assets
578,464
Net assets at the end of the year
578,464		 Designated
funds
£
403,084
150,000
553,084		 Restricted
funds
£
256,582
422,951
679,533		 Total
funds
£
659,666
1,151,415
1,811,081

47

Institute of Contemporary Arts Limited Notes to the financial statements

For the year ended 31 March 2022

21a Movements in funds (current year)

Restricted funds:
Cinema
Apprenticeships
BBC New Creatives
ICA Capital Renovation Project
Total restricted funds
Unrestricted funds:
Designated funds:
Maintenance fund
Stability fund
Fixed asset reserve
Total designated funds
General funds
Total unrestricted funds
Total funds		 At the
start of
the year
£
–
–
58,605
620,928

679,533
150,000
-
403,084
553,084
578,464
1,131,548
1,811,081		 Income &
gains
£
125,316
9,362
208,392
241,632

584,702
–
–
–
–
3,774,343
3,774,343
4,359,045		 Expenditure &
losses
£
(125,316)
(9,362)
(266,997)
(71,620)

(473,295)
–
–
(184,118)
(184,118)
(3,377,011)
(3,561,129)
(4,034,424)		 Transfers
£
–
–
–
(790,940)

(790,940)
50,000
300,000
772,340
1,122,340
(331,400)
790,940
–		 At the end
of the year
£
–
–
–
–
–
200,000
300,000
991,306
1,491,306
644,396
2,135,702
2,135,702

Purposes of restricted funds

Cinema

This fund represents the money received from CHASE (Consortium for the Humanities and the Arts South-East England), the British Film Institute, Film London and Europa Cinemas to support the cost of Cinema at the ICA. This was fully spent in 2021-22.

Apprenticeships

This fund represents the money from the John Lyon’s Charity to support the cost of apprenticeships at the ICA from 2019 to 2022.

BBC New Creatives

This fund represents money received from Arts Council England to enable the ICA to deliver the BBC New Creatives programme. The project was completed in 2021-22

48

Institute of Contemporary Arts Limited Notes to the financial statements

For the year ended 31 March 2022

ICA Capital Renovation Project

With Phase 0 of the Capital Renovation Project complete within the 2021-22 financial year, and no current funded plans for additional works, the remaining balance has been transferred to fixed assets and the fund is now closed.

Purposes of designated funds

Maintenance fund

The maintenance fund is used to earmark funds for the cost of the five-yearly redecoration and repairs to the exterior of 12 Carlton House Terrace, London SW1Y 5AH. These works are undertaken by Crown Estates, the freeholder of 12 Carlton House Terrace, and invoiced to the ICA under the terms of the lease of the building.

Stability fund

The stability fund was created in the 2021-22 financial year, and £300,000 designated from general funds, in order to safeguard a minimum level of reserves and provide gate control by the Board.

Fixed asset reserve

The fixed asset reserve has been designated by the Board to represent the unrestricted net book value of fixed assets. This designation reflects the fact that these assets are in use by the charity and are not of the nature where they could be readily disposed of for a substantial consideration.

Transfers between funds

Transfers between funds represent general unrestricted funds which have been designated for specific purposes by the Board. The total transfers from general unrestricted funds for the 2021/22 financial year was £331,400 (2021: £209,837).

49

Institute of Contemporary Arts Limited Notes to the financial statements

For the year ended 31 March 2022

21b Movements in funds (prior year)

Restricted funds:
Cinema
Apprenticeships
BBC New Creatives
ICA Capital Renovation
Project
Total restricted funds
Unrestricted funds:
Designated funds:
Maintenance fund
Fixed asset reserve
ICA Capital Renovation
Project
Total designated funds
General funds
Total unrestricted funds
Total funds		 At the
start of
the year
£
-
-
139,776
400,876
540,652
150,000
344,777
-
494,777
82,013
576,790
1,117,442		 Income &
gains
£
38,749
18,085
115,355
350,000
522,189
-
-
-
-
3,213,739
3,213,739
3,735,928		 Expenditure
& losses
£
(38,749)
(18,085)
(196,526)
(129,948)
(383,308)
-
(151,530)
-
(151,530)
(2,507,451)
(2,658,981)
(3,042,289)		 Transfers
£
-
-
-
-
-
-
209,837
-
209,837
(209,837)
-
-		 Exceptio-
nal item
£
-
-
-
-
-
-
-
-
-
-
-

-
 At the end
of the
year
£
-
-
58,605
620,928
679,533
150,000
403,084
-
553,084
578,464
1,131,548
1,811,081

50

Institute of Contemporary Arts Limited Notes to the financial statements

For the year ended 31 March 2022

22 Reconciliation of net income to net cash flow from operating activities

Net income/(expenditure) for the reporting period
(as per the statement of financial activities)
Depreciation charges
Dividends and interest from investments
Loss on the disposal of fixed assets
(Increase)/decrease in stocks
(Increase)/decrease in debtors
Increase/(decrease) in creditors		 2022
£
324,621
184,118
(3,196)
71,620
(56,437)
(120,623)
(175,390)
296,392		 2021
£
693,639
151,530
(1,040)
129,948
13,086
(116,118)
201,562
1,000,928

23 Analysis of cash and cash equivalents

3
Analysis of cash and cash equivalents
Cash at bank and in hand
Notice deposits (less than 3 months)
Total cash and cash equivalents		 At
1 April
2021
£
252,675
1,023,969

1,276,644		 Cash flows
£
715,768
(1,005,714)
(289,946)		 At
31 March
2022
£
968,443
18,255
986,698

24 Operating lease commitments

The group and charity’s total future minimum lease payments under non-cancellable operating leases is as follows for each of the following periods:

Less than one year
One to five years
Over five years		 Property
2022
2021
£
£
18,402
18,402
76,164
73,608
881,798
902,766
976,364
994,776		 Equipment
2022
2021
£
£
2,612
2,612
1,959
4,571
-
-
4,571
7,183		 Equipment
2022
2021
£
£
2,612
2,612
1,959
4,571
-
-
4,571
7,183
7,183

25 Legal status of the charity

The charity is a company limited by guarantee and has no share capital. The liability of each member in the event of winding up is limited to £1.

51