Charity registration number 27378S Company reglstratlon number 01310070 IEngland and Wales) NEWLYN ART GALLERY LIMITED ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024
NEWLYN ART GALLERY LIMITED LEGAL AND ADMINISTRATIVE INFORMATION Trustses MRBird N Scott G Buenfeld-murley H Buckingham J Bulman N Williams J Faram A Ghadiali Acosma O Owczarek J Twomlow (Appointed 25 November 20241 (Appointed 25 November 20241 (Appointed 25 November 20241 (Appointed 25 November 20241 (Appointed 25 Novèmkr 20241 Secretary N Scott Charty nurnber 273785 Company number 01310070 Registorad offic The Exchange Princes Street Penzance Cornwall United Kingdom TR182NL Audltor Azels Audit Services Woodlands Court Truro Business Park Truro Cornwall United Kingdom TR4 9NH Gallery Director J Green Observgrs M Jivram, Arts Coun¢il England
NEWLYN ART GALLERY LIMITED CONTENTS Page Trustees, report Stslemenl of trustees. responsibilities Independent auditorfs report Statement of financial activities 14-15 Balance sheet 16 Stslemenl of cash flows Notes lo the financial statements 18-39
NEWLYN ART GALLERY LIMITED TRUSTEES, REPORT (INCLUDING DIRECTORS, REPORT) FOR THE YEAR ENDED 31 MARCH 2024 The trustees present their annual report and financial statements for the year ended 31 March 2024. The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial slalements and comply with the Companies Act 2006 and Accounting and Reporting by Charities.. Statement of Recommended Practice applicable lo charities preparing their accounts in accordance with the Financial Reporting Stsndard applicable in the UK and Republic of Ireland IFRS 1021 (effective 1 January 20191" Objectives and activities ObJgCtlv&s and alms The company is an edu¢alional charity wrth the object of advancing edu¢alion in visual art. This object is mel by the maintenance of Newlyn Art Gallery & The Exchange for the public exhibition of visual art, multi-year education programmes, the provision of lectures, classes, and conferences calculated to advan education in visual art. Slgnlflcanl actlvllles Through a programme of exhibitions and ambitious education projects, exploring the role of arts in social change, Newlyn Art Gallery Ltd promotes the understanding and appreciation of contemporary art. In the course Df the programme the gallery collaborates with other organisalions in the area and nationally to promote visual art. This core activity has not changed during the year. How our main activities deliver public benefit Our main activities are described below. Our charitable activities focus on providing an ambitious programme of exhibitions, le8tning projects and other activities undertaken lo further our charitable purposes for the public benefit.
NEWLYN ART GALLERY LIMITED TRUSTEES, REPORT (INCLUDING DIRECTORS, REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Achievements and perforniance Revlew of the Year The year to 31 March 2024 continued lo reflect a growing ambition in our gallery-based programming. building on important collaborative initiatives, with existing partners such as the Arts Council Collection, as well as wmpletely new ones, for example our partnership with Focal Point Gallery, Southend-on-sea. Our activities in our community remained a priority, with great energy being directed to new school partnerships and fundraising to bring these to fruition. The financial year opened wth the continuing run of We Are Floating in Space, a group exhibi(ion of artists who made work in Cornwall and Devon, using ideas of the coast, or the materials of the shoreline, lo ¢ale their work. However, the exhibition looked beyond the tradition of seascapes to showcase artists who used the Coast as a metsphor or as inspiration to explore issues around grieving. gender idenb'ty, the queer body, childlessness not by choice, the search for one's tribe, or the growing climate crisis. The exhibition also included artists who used and transforrned the materials of the coastline for their work,. an oak stool from the submerged ancient woodland of Mount's Bay, a silver spoon Cast from a rock pool, sculptural hybrids, and chemigrams soaked In seawater, amongst others. The lower gallery al Newlyn hosted an exhibilion-within-the-exhibition, curated by Fran Rowse, expanding on her MaS project and featuring other young female artists who explore the lived experien$ of growing up in small coastal towns. Over the summer we presented I Chose This, a celebration of our knyear outreach project Think, Talk, Make Art. I Chose This brought together more than 50 artworks, which had been loaned lo nine primary schools across Vvesl Cornwall and the Isles of Scilly through Think, T&lk, Make Art, a major schools and teachers, project. The works on display were selected by children al each of the nine participating schools from the Arts Council Collection and Cornwall Council Schools Art Collection lo create in-s¢hool galleries. The children involved in choosing the works made their choices Collaboratively. through ¢areful consideration and lively di$s1on. ArhNorks selected spanned the 20th and 21st centuries and encompassed painting, print and sculpture. Artists featured include Bryan Pearce, Barbara Hepworth, Wilhelmina Barns-Graham, Jeffrey Steele, Alan Lowndes, Victor Passmore, Richard Bell, Georgia Hayes, Laura Godfrey-lsaacs, Estelle Thompson, Des Hughes and Sue Smith alongside many others
NEWLYN ART GALLERY LIMITED TRUSTEES, REPORT (INCLUDING DIRECTORS, REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Of the organisalions who participated, the five mainland schools were Ludgvan, Nancledra, NeYn, Pensans, and St Hilary Primary Schools, and on the Isles of Scilly, Sl Agnes, Sl Martins, Sl Mary's, and Tresco Primary Bases. The satellite in-school galleries were the inspiration for a programme of live and digital CPDL led by artists and lilera¢y experts. Think, Talk, niake Art was a twyear project in partnership with Newlyn Art Gallery & The Exchange ftjnded by the Paul Hamlyn Foundation Teacher Development Fund. After the shows extended run, we presented Storm Waming.. What Does Climate Change Mean for Coastal Communities? Stomi W&ming was a collaboration between Newlyn Art Gallery & The Exchange, and Focal Point Gallery, Soulhend-on-sea, which sought to raise awareness of the impact of the climate crisis on coastal communities in Mount's Bay, and South Essex. 11 includes innovative athorks and engagement projects by Angela Chan, Rebecca Chesney with Lubaina Himid, Joey Holder. Andre Kong, Harun Morrison, Ellie Robinson-carter, Something & Son. Heloise Tunstall- Behrens, and David Vvatkins. New commissions are presented simultaneously at each venue, exploring issues facing the two coastlines, alongside research into nature-based solutions that are relevant locally and resonate more widely. As we moved into 2024, we added a display of A5 artworks by young people from Cape Comwall School and Penwilh College who were invited lo reflect on the question al the heart of this exhibition.. Whal does climate change mean for coast31 communities? Presented alongside their work was a di ital calalo ue of athorks sent lo Focal Point Gallery by students in their Essex community. who were asked the same question. The scale of the climate crisis and the change that needs to happen to counteract its impact often seem overwhelming and out of reach to individuals, so each gallery presented a diverse range of artworks and resources that aim lo Inform and inspire. The two galleries shared the ambition lo discover the local impact of climate change and highlight ways in which we can all take action lo protect our environment. Newlyn Art Gallery & The Exchange and Focal Point Gallery are each located in coastsl towns ¥hrith important marine environments, and with dual economies of tourism and fishing. They each serve communities living through the Cost-of-living Crisis, alongside the pending threat of rising sea levels and unpredictable weather pallems. Part of this initiative was to highlight work already taking place in Cornwall by environmental organisations such as Clean Ocean Sailing, Cornwall Imldlife Trust, Cornwall Climate Care, the Environment Agency, Mounts Bay Marine Group. Plastic Free Penzan, and Surfers Against Sewage. The ambitious project was made possible thanks lo the generous support of the Art Fund through their Reimagine programme. Midway through the year we took the decision to redu our main gallery programme cycle from three to seasons, lo reflect a reduction in available funds, as core costs rose. This shift does not seem lo have had a negative impact on visitor numbers or expectations and has enabled us lo explore more deeply the themes in our shows and opportunities lo make links wth local partner organisations. Through the year we Instigated a drive lo develop new partnerships with trusts and foundations to support our continuing ambitions around offsite programming and our strategic work in schools. That investment of lime is now beginning to bear fruit, wth successful awards from the FoOe Foundation, Headley Trust and a number of smaller funds now having been agreed. These will directly support the retention of staff in learning and digitsl support roles, with positive impacts on our programming expected to result in the year ahead. During the year we attracted 40,998 gallery visits, evenly spread across both our sites. This is a 229 increase on the prior year, and reflects a return lo pre-pandemic attendances, which is a very positive sign. We have seen a positive increase In our social media reach this year (Facebook up by 75.9% and Instagram up by 22.90k compared to the previous yearl. Some of the biggest spikes in reach were due lo announcing a new pop up café business in our gallery garden at Neyn and another high spike was linked lo launching our new Walking Tours event using boosted paid advertising.
NEWLYN ART GALLERY LIMITED TRUSTEES, REPORT (INCLUDING DIRECTORS, REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 We contlnue to seek to reduce our envlronmentsl Impact We remain strongly committed to reducing our carbon footprint, this year, for the first time, using our public programme to support wder discussion and action on the climate emergency, through a new partnership with Focal Point Gallery, Soulhend-on-sea and the Art Fund. Afull description of our exhibition Storm Waming is sel out earlier in this report. Our Green Team, its membership comprising of a diagonal slice through our organisalion, including board and volunteer representslion, has been actively involved in the drive lo include reflections on the climate emergency in our exhibitions programme. They also Continue to set the agenda in this area, regularly reviewing and updating our Carbon Reduction A¢lion Plan and monitoring, challenging and ¢elebraling progress when il is made. Our action plan is a public document, available on our website. We have continued to take action lo reduce the volume of waste produced through our exhibitions programming, and developed innovative new approaches to exhibition design, with materials waste reduction In mind. Whilst a number of exhibitions that look place in 2023124 continued to include loans from the Arts Council Collection, we have seen a modest reduction in energy consumption, compared to the prior year (see the data below). Newlyn Art Gallery & The Exchange combined.. Energy 64 tonnes C02e120131141 Energy 19 lonnes C02e120181191 Energy 39 lonnes C02e120201211 Energy 67 lonne5 C02e120211221 Energy 54 lonnes C02e120221231 Energy 52 Tonnes C02e120231241 The heating system at The Exchange is now at the end of its life. We are currently exploring an electric powered replacement heating solLJtion, which we expect to have in place from October 2024. Infrastructure Much of our work 15 delivered from our two buildings, Newlyn Art Gallery in Newlyn and The Exchange in Penzance. Both are historic buildings dating from 1895 and the 19308 land significantly extended in the 1950sl respectively. Both buildings were substantially altered in 2006, as part of major capitsl works linked lo the organisalion's relaunch in 2007. 16 years on, both buildings now require modest investment to avoid the need for major works in the future, and to ensure we remain able to respond to the changing needs of our aUdienS. Over the coming rnonlhs, we will develop funding bids lo help us address other Priority works to both builds. safeguarding these assets for the future. Health & Safety The gallery regularly reviews Health & Safety issues across our activities. Health & Safety is a standing item al both our weekly stsff meeting and regular Board Meetings. We contract the services of Peninsula, who provide expert advice and conduct an annual site visit to both galleries, developing an action plan of works to be addressed. Stsffing The gallery has a team averaging 26 employees during the year, both full and part-time, and is supported by an expert team of around 45 volunteer5, who are the first point of contact for many of our visitors. In January 2024 we undertook a restructure of the senior management tier of the organisalion, lo reduce our overall payroll Costs. This resulted in a 100h reduction in hours for the Dire¢lor and Deputy Director Commercial & Operations and the post of Deputy Director Programme Curator being made redundant.
NEWLYN ART GALLERY LIMITED TRUSTEES, REPORT (INCLUDING DIRECTORS, REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 In March 2024 we secured funding from the Foyle Foundation to create two part-lime posts lo support digital aclivilies. Xavia Smith has joined as Digitsl Marketing Producer, focusing on social media, managing thè gallery's accounts and creating engaging Content lo promote the gallery's varied activities to a growing online audience. Adam Goodwn has joined as Digitsl Producer, creating new digital content induding short films, podcasts, and interpretslion materials for the gallery's exhibitions and events. Both positions are ftjnded for an initial 12-monlh period. In April 2024 we secured funding from the Headley Trust. This will enable us to retain Rebecca English in her part- time role as Programme Curator. Funding ¥MII cover her salary costs for the next three years. In February 2024, Hall for Comwall gave us notice that they would not be able lo continue to provide contracted senior financial support lo the organisation beyond July 2024. lan Abrahams has provided excellent support to the gallery in this role, helping lo strengthen our financial reporting and intemal systems, improve the frequency of our Museum and Exhibition Tax Relief daims and has provided invaluable mentoring support to Treen Bolton. our in- house Finance Officer. Trustees would like to extend thanks to lan, Julien Boast, Chief Executive & Creative Director, Hall for Cornwall, and the rest of his team for their invaluable Support. A reciuilment process has been undertaken to appoint an experien¢ed Senior Finance Manager and a strong pool of applications was received. This rolè has now been filled. Trustees would like lo thank the staff and volunteers for their eXptIonal work over the period of this report. 11 has been a very difficult year for the gallery, but everyone has responded with energy and creativity. finding solutions al every turn.
NEWLYN ART GALLERY LIMITED TRUSTEES, REPORT (INCLUDING DIRECTORS, REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Financial review Bulldlng a stsble foundatlon to weather challenges ahead Over rent years we have managed lo eliminate our historic deficit and build free reserves. in line wf(h our Reserves Policy. However, as for many organisations, 2023124 has been a challenging year, with increasing costs, a difficult trading environment and greater competition for funding from all grant awarding bodies. Our response was swft and repealed throughout the year. In earfy summer we instigated a reduction in our programme cycle from three seasons lo two seasons each year, with the change being implemented immediately, resulting in in-year savings. Across th& staffing teams, we intrOdUd a greater emphasis on income generating work, extending their involvement in bid writing, and piloting inilialives to generate new earned income streams from events and aclivilies, wilhoul compromising our continuing commitment to removing barriers to engagement for all in our community. We closed our in-house Café operation al Newlyn, and secured a partnership with a successful, independent café operator, 'Pickle On The Prom, lo lake on the service for the remainder of the year. This resulted in the elimination of costs associated wth a loss-making strand of the business, generation of a new stream of income through a lease agreement with the external service provider, whilst also attracting new audiences lo our core business. However, these measures were not sufficient in themselves lo correct our course, so in January 2024 we undertook a restructure lo achieve a reduction in our payroll commitments over the period ahead. This enabled us lo sel an extremely Cautious budget for 24125, that projects a slabilisalion of our position for the year ahead. Whilst we believe our financial position has now stabilised, our free reserves have been eroded, which is likely lo take a number of years to correct. The National Picture The sector view is that in spite of the change in government followng the July General Election, the future economic landscape will remain lesling, wth no increases in funding from govemmenlal sour$ anticipated until well into 2026 al the earliest. Competition for funding from trusts and foundations is likely to remain intense for the foreseeable future, and whilst inflation rates are returning lo more typical levels, real household disposable income IRHDII per person fell 2.2 per cent in 2022-23- the largest year-on-year drop in living standards Sin records began in the 1950s The Office for Budget Responsibility eslimales that RHDI per person grew a modest 0.8 pèr cent in 202>24, but forecast Il lo tske until 2025-26 to regain ils prè-pandemic peak. Arts Council England recognises that the next few years will pose challenges for many arts organisalions, including those in the National Portfolio. They therefore are realisti¢ about the output funded organisalions ¢an be expected to deliver during this period. Helpfully, in January 2024, Arts Council England announced their commitment to extend the current NPO funding agreement for a further fourth year, through a simple application process that will open in Autumn 2024. This will help funded organisations with their medium-lerm financial planning, bringing some certainly around a significant source of income, through to March 2027.
NEWLYN ART GALLERY LIMITED TRUSTEES, REPORT (INCLUDING DIRECTORS, REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Key figures and movement of funds Incoming resources at £776,57612023". £814,744) fell by £38,168. Total expenditure decreased by £220,223 from £1,224,738 12023110 £1,004,515 in the 2024 year. The total decrease is represented by an increase lo unreslricled spending of £38,030 and a decrease lo restricted spending of £258.253. The decrease lo restricted spending refleds the liming of restricted resources that were booked lo income in previous years on an entitlement to receive basis and that were then deployed in accordance with restrictions in the following years. The spending of restricted funds contributed to the in-year deficit of £227,939 and was the key reason for the deficit in the prior year of £409,994. The deficit of £227,939 is split bebNeen an operational lunreslrictedl deficit of £105,619 before fund transfers, while the deficit relating to reslricled expenditure against funds held was £122,320. Reserves policy The gallery had a cumulative surplus al 31 March 2024 of £72,46312023.' £135,497>. This figure is known as free reserves and the calculation is shown al note 29. The calculation lakes the total ftjnds and removes the amount that is either restricted or tied LJP in propety lo arrive al the sum that is freely available tg support the gallery's adivilies. It also shows the movement in free reserves between years- this year a decrease of £63,034 bebNeen March 2023 and March 202412023.. increase of £5,678). Whilst the free reserves decreased by £63,034 in the year ended 31 March 2024, the operational deficit on unrestricted funds was £67,542. Currently the level of free reserves required to ¢over running costs for 3 to 6 months is £202.834 - £405.668, based on unrestrided expenditure within unreslrided funds in the period. The gallery ¢urrenlly holds free reserves below this target level. In order to ensure the organisalion builds sufficient reserves to meet its policy requirements, the Gallery Director and Trustees are developing a recovery plan as part of its future financial planning. This wll include undertaking a review of the target free reserves figure. 11 is anticipated that il may lake 3 to 5 years lo rebuild reserves lo the required levels, so a mulli-yeai plan is needed. The Director and Trustees wll revisit the reserves policy in the coming year. Principal funding sources The gallery's largest single Sour of funding was from Arts Council England, who provided funding In respect of core cost5. Similady, Cornwall Council currently piovides revenue funding of £18,750, under the existing agreement. The other two main sources of income are received from trusts and foundations and from earned income sources, including ticketed entry and lickeled events, cafè and shop revenue, and commercial and private hires of spaces and equipment. As reported above, we have been very successful in securing additional, mulli-year restricted funding from other trusts and foundations. Individual philanthropy remains an important part of the organisalion's income however, the economic impact of the Covid-19 pandemic continues lo make fundraising generally more challenging. Risk management The trustees have a duty lo identify and review the risks to which the charity is exposed and to ensure appropriate controls are In place lo provide reasonable assurance against fraud and error. The trustees have conducted a review of the major risks lo which the charity is exposed and systems have been established lo mitigate those risks. Assessment is reviewed on a regular basis.
NEWLYN ART GALLERY LIMITED TRUSTEES, REPORT (INCLUDING DIRECTORS, REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Plans for future periods FUTURE PLANS The gallery's vision, mission and values. remain rouled in the organisalion's history and the principles of its founder, the philanlhropisl John Passmore Edwards. He saw culture as 'a ladder the poor might climb,, to help them rise out of deprivation and override a prevailing dearth of ambition in a place such as Newlyn at the end of the 19th ntUry. Our intention is lo reactivate these founding principles, contributing to debate among contemporary arts organisalions and curators as lo how art and the art institution can perfomi both a societal and civic function and be relevant lo prevailing social and political issues. The following values. vision and mission emerged from these processes.. Values: Change-making Rooted In place Part of a global art conversation Vlslon.. We believe that art can inspire and drive change. Mission: To connect Cornwall with visual arts internationally, for the benefit of the community and development of artists. The impact of the Covid-19 pandemic on communf(ies across Cornwall and further afield, has been huge. The murder of George Floyd and rise of the Black Lives Maller movement, has also profoundly affected may of thè communities we work with and support. Our sland in supporting our Immediate communities now seems more important than ever. Over the next 12 months our gallery and off-site programmes will continue support four thematic areas of investigation.. Arts Education Well-Being Activism The Hyper-Local and the Inlernalionally Connected Our off-site programme will focus on our continuing work in schools across Cornwall, aiming lo achieve strategic change in the way arts subjects are taught, particularly at primary level. We will present ambitious gallery programmes by artists including Hew Locke, Chantal Joffe and Abigail Reynolds, often lo offer audiences insights into unexpected or hidden facets of Cornwall's landscape, and it's contemporary soaal and cultural life. structure. governance and management Governing document The charity is controlled by ils goveming document, the memorandum and articles of association, and consbtules a limited company, limited by guarantee, as defined by the Companies Act 2006.
NEWLYN ART GALLERY LIMITED TRUSTEES, REPORT (INCLUDING DIRECTORS, REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 The trustees, who are also the directors for the purpose of company law, and who served during the year and up lo thè dale of signature of the financial stslemenls were". MRBird N Scoti M Barrett V Button B Naughton-Rumbo L Tail G Buenfeld-murley H Buckingham J Bulman N Wlliams J Faram A Ghadiali A C05ma O Owczarek J Twomlow (Resigned 25 November 20241 (Resigned 25 November 20241 IResigned 25 November 20241 (Resigned 25 November 20241 (Appointed 25 November 2024} IAppDinted 25 November 2024} (Appointed 25 November 2024} (Appointed 25 November 2024) (Appointed 25 November 2024} Recruitment and appointment of new trustees The Board administers the charity and meets bi-monthly or as required. The Finance Committee meets regularly with the Director and Senior Finan Manager. Other working groups, such as a Public Programme Group meet as required. Their membership is drawn from the board. Members of the Board a elected al the Annual General Mèeting and retire by rotation every three years. Eleded members of the Board are Iruslees and d1ClorS of the charity. Induction and training of new trustees New Iruslees are providèd with a tour of the organisalion's two siles. where they have an opportunty to meet the gallery staff and volunteers. They also meet with the Chair and Gallery Director and are briefed on the history and the future plans ol the organisation. New board members are also required lo sign a Stslemenl of Director's Obligations and Code of Condud, which helps lo clarify their individual and Collective responsibilities to the company. Auditor In accordance with the company's articles, a resolution proposing that Azels Audf( Services be reappointed as auditor of the company will be pul al a General Meeting. Disclosure of infomiation to auditor Each of the trustees has confirmed that there is no information of which they are aware which is relevant lo the audit. bul of which the auditor is unaware. They have further confirmed that they have taken appropriate steps lo identify such relevant information and lo establish that the auditor is aware of such information. The trustees, report was approved by the Board of Trustees. Ll Bird IDec 4, 2024 12..42 GMT) MRBird Trustee Date.. 0411212024
NEWLYN ART GALLERY LIMITED STATEMENT OF TRUSTEES, RESPONSIBILITIES FOR THE YEAR ENDED 31 MARCH 2024 The trustees, who are also the directors of Newlyn Art Gallery Limited for the purpose of company law, are responsible for preparing the Trustees, Report and the financial slalements In accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Praclicel. Company Law requires the Iruslees lo prepare financial statements for each financial year which give a true and fair view of the stsle of affairs of the Charity and of the in¢oming resources and application of resour$, induding the income and expenditure, of the charitable ¢ompany for that year. In preparing these financial statements, the trustees are required to.. select suitable accounting policies and then apply them consistently", observe the methods and principles in the Charities SORP", make judgements and eslimales that are reasonable and prudent., state whether applicable UK Accounting Standards have been followed, subject to any material departures disdosed and explained in the financial statements,. and prepare the financial slalements on the going concern basis unless il is inappropriate lo presume that the charity will continue in operation. The trustees are responsible for keeping adequate accounting records that disdose with reasonable accuracy al any lime the financial position of the charity and enable them lo ensure that the fi'nancial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. 10-
NEWLYN ART GALLERY LIMITED INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF NEWLYN ART GALLERY LIMITED Opinion We have audited the financial stslemenls of Newlyn Art Gallery Limited Ilhe 'charity'l for the year ended 31 March 2024 which comprise the stslemenl of financial activities, the balance sheet. the stslemenl of cash flows and notes 1 to 30 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 Financial Reporting Standard 102 The Financial Reporting Standard applicable the UK and Republic of Iland (United Kingdom Generally Accepted Accounting Praclicel. In our opinion, the financial slatemenls.. give a true and fair view of the state of the charitable company's affairs as at 31 March 2024 and of Its incoming resources and application of resources, including r(s income and expenditure, for the year then ended., have been properly prepared in accordance wth United Kingdom Generally Accepted Accounting Practice., and have been prepared in accordance with the requirements of the Companies Act 2006. Basis for opinion We conducted our audit in accordance with International Stsndards on Auditing IUKI IISAS IUKII and applicable law. Our responsibilities under those standards are further described in the Audilorts spOnsibl11tes for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC'S Ethical standard, and we have fulfilled our other ethical responsibilities in accordance wth these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate lo provide a basis for our opinion. Conclusions relating to going concern In auditing the financial stalemenls, we have concluded that the Iruslees, use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the worf( we have performed, we have not identified any material Ljncertainties relating to events or conditions that. individually Dr collectively, may cast significant doubl on the charity's ability to continue as a going concern for a period of at least bNelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilibes of the ttuslees wth respect lo going concern are described in the relevant sedions of this report. Other inforniation The other information comprises the information included in the annual report other than the financial slalements and our audilorfs report Ihereon. The Iruslees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other infomiation and. except to the extent otherwise explicitly slated in our report, we do not express any fomi of assuran conclusion thereon. Our responsibility is to read the Other information and, in doing so, consider whether the other information is materially inconsislenl wth the finanaal slalements 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 m8leri81 misstslemenls, we are required to determine whether this gives rise to 8 material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misslatemenl of this other information, we are required lo report that fact. We have nothing lo report in this regard. Oplnlons on other matters prescrlbed by the Companles Act 2006 In our opinion, based on the work undertaken in the course of our audit.. the information given in the Iruslees, report for the financial year for which the financial slalements are prepared, which includes the directors, report prepared for the purposes of company law, is consistent with the financial slalements., and the directors. report included within the trustees. report has been prepared in accordance with applicable legal requirements.
NEWLYN ART GALLERY LIMITED INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF NEWLYN ART GALLERY LIMITED Matters on which are required to report by exception In the light of the knowledge and understsnding of the charity and its environment obtained in the course of the audit. we have not identified material misststemenls in the directors, report included wthin the Iruslees, report. We have nothing lo report in respect of the following matters in relation to which the Companies Act 2006 requires us to report lo you if, in our opinion.. adequate accounting records have not been kept, or returns adequate for our audit have not been reiVed from branches not visited by us,. or the financial slalements are not in agreement with the accounting records and returns., or certain disclosures of trustees, remuneration specified by law are not made., or we have not received all the Information and explanations we require for our audit, or the Iruslees were not entitled lo prepare the financial slalements in accordance with the small Companies regime and take advantage of the small companies, exemptions in preparing the trustees, report and from the requirement lo prepare a strategic report. Respon$lbllltles of tru$tee$ As explained more fully in the statement of Iruslees. responsibilities, the trustees, who are also the directors of the charity for the purpose of company law, are responsible for the preparation of the financial slalemenls and for being satisfied that they give a true and fair view, and for such intemal control as the Iruslees determine 15 necessary lo enable the preparation of financial slalemenls that are free from material misslalement, whether due lo fraud or error. In preparing the financial slatemenls, the trustees are responsible for assessing the charity's ability lo continue as a going Concern, disclosing, as applicable, matters related lo going Concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic altemative but to do so. Audltorfs rasponslbllltles for tho audlt of the flnanclal statoments Our objectives are lo obtain reasonable assurance about whether the financial statements as a whole are free from material misslalemenl, whether due to fraud or error, and to issue an audilorfs report that includes our opinion. Reasonable assurance is a high level of assurance bul is not a guarantee that an audit conducted in accordance with ISAS IUKI will always detect a material misstslemenl when il exists. Misslalemenls can arise from fraud or error and are considered material if. individually or in the aggregate, they could reasonably be expected lo influence the e¢onomi¢ decisions of users taken on the basis of these financial slatemenls. A further description of our responsibilities is available on the Financial Reporting Council's website al.. htlps'.11 www.frc.org.uklaudilorsresponsibilities. This description forms part of our auditor's report. 12-
NEWLYN ART GALLERY LIMITED INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF NEWLYN ART GALLERY LIMITED Extent to which the audit was considered capable of detecting irregularities, including fraud Itregularilies, Induding fraud, are Instances of non-compliance with laws and regulations. We design procedures in line wth our responsibilities, outlined above and on the Financial Reporting Council's website, lo delect material misslalements in respect of irregularities, including fraud. We obtain and update our understsnding of the entity. ils aclivilies. ils control environment. and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary lo applicable laws and regulations, in¢luding fraud. In response to the risk of irregularities and non-complian with laws and regulations, including fraud, we designed procedures which induded.. Enquiry of management and those charged with govemance around actual and potential litigation and claims as well as actual, suspected and alleged fraud., Reviewng minutes of meetings of those charged with governance., Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial stslemenls or the operations of the enlily through enquiry and inspection," Reviewing financial stslemenl disclosures and testing lo supporting documentation lo assess compliance with applicable laws and regulations., Performing audit work over the risk of management bias and override of controls, including lesling of journal entries and other adjustments for appropriateness. evaluating the business rationale of signifi¢anl transactions outside the normal course of business and reviewng accounting estimates for indicators of potential bias. Because of the Inherent limitations of an audit, there is a risk that we will not detect all irregularities, including thosè leading to a matèrial missl8temenl in the financi81 slalements or non-compliance wf(h regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflècted in the financial slalements. as we will be less likely lo become aware of instances of non-compliance. The risk of not detecting a material misslatemenl resulting from fraud is higher than for one resulting from error. as fraud may involve collusion, forgery. intentional omissions, misrepresentslions, or the override of internal control. 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. Our audit work has been undertaken so that we might stale to the charitable company's members those matters we are required lo stsle to them in an auditorfs 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. Matthew Ivebb (Dec 10. 2024 16..36 GIITI Matthew Webb Isenior Statutory Auditor) for and on behalf of Azets Audit Services 1011212024 Chartered Accountants Statutory Auditor Woodlands Court Truro Business Park Truro Cornwall United Kingdom TR4 9NH 13-
NEWLYN ART GALLERY LIMITED STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2024 Current financial year Unrestrlcted Endowment Restrlcted funds funds funds deslgnated 2024 Total Totsl 2024 2024 2024 2023 Notes Income from: Donations and legacies Charitable adivities Other trading activities Investments 62,732 455,350 188,962 671 4,343 62,953 3,565 67,075 518.303 190.527 671 67,888 557,275 186.370 3,211 Total income 705,715 70,861 776,576 814,744 Ex endlture on: Raising funds 167,300 13 167,313 164,270 Charitable activities 644,034 193,168 837,202 1,060,468 Total expenditure 811,334 193,181 1,004,515 1,224,738 Net outgolng resources before transfe 1105,6191 1122,3201 1227,939} 1409,9941 Gross transfers between funds 25 38,077 138,0771 Net expenditure for the yearl Net movement in funds {67,5421 1160,3971 1227,939} 1409,9941 Fund balances al 1 April 2023 2,628,444 527,373 931,890 4,087,707 4,497,701 Fund balances at 31 March 2024 2,560,902 527,373 771,493 3,859,768 4,087,707 The ststemenl of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing aclivilie5. The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006. 14-
NEWLYN ART GALLERY LIMITED STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED) INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2024 Prior financial year Unrestrlcted Endowment Re$trlcted funds funds funds deslgnated 2023 Totsl 2023 2023 2023 Notes Income from: Donations and legacies Charitable adivities Other trading activities Investments 66,960 453,760 182,381 3,211 928 103.515 3.989 67,888 557,275 186.370 3,211 Total income 706,312 108,432 814,744 Ex endlture on: Raising funds 163,058 1,212 164,270 Charitable activities 610,246 450,222 1,060,468 Total expenditure 773,304 451,434 1,224,738 Net outgoing resources before transfers 166,9921 1343,002} 1409,9941 Gross transfers beeen ftjnds 2S 123,352 1123,352} Net expenditure for the yearl Net movement in funds 56,360 1466,354) 1409,9941 Fund balances at 1 April 2022 2,572,084 527,373 1,398,244 4,497,701 Fund balances at 31 March 2023 2,628,444 527,373 931.890 4,087,707 15-
NEWLYN ART GALLERY LIMITED BALANCE SHEET ASAT31 MARCH 2024 2024 2023 Notes Flxed assets Tangible assets Heritage assets Investments 3,247,496 527,373 82,117 3,342,765 527,373 82,117 14 3,856,986 3,952,255 Current assets Stocks Debtors Cash at bank and in hand 16 17 26,000 96,367 66,638 32,750 182,163 109,163 189,005 324,076 Credltors: amounts falllng due wlthln one year 18 194,7181 180,6831 Net current assets 94,287 243,393 Total assets leys current liabilities 3,951,273 4,195,648 Creditors- amounts falling due after more than one year 19 191,5051 1107,9411 Net assets 3,859,768 4,087,707 Income funds Restricted funds Endowment funds- designated Unrestrided funds 25 771,493 527,373 2,560.902 931,890 527,373 2.628,444 3,859.768 4,087,707 These financial slalements have been prepared in accordance with the provisions applicable lo companies subject to the small companies regime. The financial statements were approved by the Trustees on 0411212024 ird.IDec 4,2024 12..42 GMT) o 4, 2024 17..26 GMT) MRBird Trustee N Scoti Trustee Company Registration No. 01310070 16-
NEWLYN ART GALLERY LIMITED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2024 2024 2023 Notes Cash flows from operatlng actlvltles Cash absorbed by operalions 21 121,9631 1344,624} Invgstlng actlvltl&s Purchase of tangible fixed assets Interest received {11,1891 671 166,0141 3,211 Net cash used in investing activities {10,5181 162,8031 Financing activities Repayment of bank loans 110,0441 110,0251 Net cash used in financing activities {10,0441 110,0251 Net decrease in cash and cash equivalents {42,5251 1417,452) Cash and cash equivalents at beginning of year 109,163 526,615 Cash and ¢a$h 9qulvalents al ond of yoar 66,638 109.163 17-
NEWLYN ART GALLERY LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Accounting policies Charity inforniation Newlyn Art Gallery Limited is a charitable company limited by guarantee incorporated in England and Wdles. The registered office is The Exchange, Princes Street. Penzance, Cornwall, TR18 2NL, United Kingdom. 1.1 Accounting convention The financial statements have been prepared in accordance with the Companies Act 2006 and 'A¢counting and Reporting by Charities.. Slalement 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 1021 leffeclive 1 January 20191". The charity is a Public Benefit Entity as defined by FRS 102. The finanaal statements are prepared in sterfing, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest pound. The financial statements have been prepared under the historical cost convention, modified to indude investments at fair value and heritage assets al valuation. The prinupal accounting policies adopted are set out below. 1.2 Going concern The financial slalements have been prepared on the going concern basis. The Board has considered a period of twelve months from the dale of approval of the financial slalemenls and has a reasonable expectation that the charitable MpanY has adequate resour$ lo continue in operational existen for the foreseeable future. There are no material uncertainties which may create significant doubl over the Charitable company's ability to continue as a going concern. The Board however recognises that the charity enters a period of some economic uncertainly with a low level of free reserves, and that it is important to increase income and continue to actively manage Costs. 1.3 Charltable funds Unrestricted funds are available for Ljse at the discretion of the trustees in furtherance of their charitable objectives. Reslricled funds are subject to specific conditions by donors as lo how they may be used. The purposes and uses of the restricted funds are sel out in the notes to the financial slatemenls. Endowment ftjnds, Comprising a collection of paintings and artefacts held for the benefit of the charity, are subject to specific conditions by donors that the capital must be maintained by the charity. 1.4 Income Income is recognised when the charty is legally enlilled to il after any performance conditions have been mel, the amounts can be measured reliably. and il is probable that income will be received. Cash donations are recognised on reipt. Other donations are recognised once the charity has been notified of the donation, unless perfomiance conditions require deferral of the amount. Income tax recoverable in relation to donations received under GiftAid or deeds of covenant is recognised at the lime of the donation. Legacies are recognised on receipt or otherwise if the charity has been notified of an impending dislribulion, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a ntingent asset. 18-
NEWLYN ART GALLERY LIMITED NOTES TO THE FINANCIAL STATEMENTS {CONTINUED} FOR THE YEAR ENDED 31 MARCH 2024 Accountlng pollcles Icontlnuedl Income from govemmenl and other grants is recognised when the charity has enlillemenl lo the funds, any perfomiance conditions attached lo the grant have been mel, il is probable that the income will be received and the amount can be measured reliably and is not deferred. Income from other charitable activities is recognised when the goods or services have been provided. Interest income is recognised using the effective interest rale method. Trading income is recognised when the goods have been provided, typically al the point of sale, or as services are performed. Rentsl income is recognised on a straight line basis over the temi of the rentsl agreement. 1.5 Expenditure Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity lo that expendV(ure, il is probable that a transfer of economic benefits will be required in selllemenl and the amount of the obligation can be measured reliably. Expenditure is accounted for on an a¢cruals basis and has been classified under headings that aggregate all cost related to the category. INhere costs cannot be direcuy attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources. Costs of raising funds are the costs of trading for fundraising purposes. Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. 11 includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary lo support them. Support costs comprise the costs of governan including audit fees and finance costs. These are wholly allocated to charitable activities on the basis that they are incurred in support of the charitable company's pursuance of ils charitable activities. 1.6 Tanglble flxed assets Tangible fixed assets are initially measured al Cost and subsequently measured al Cost, nel of depreciation and any impairment losses. Depreciation Is recognised so as lo write off the cost of assets less their residual values over their useful lives on the following bases". Freehold propety Leasehold land and buildings Tools and equipment Computer equipment 20A on cost 2% oncost 100A on cost 25% on cost The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds antl the carrying value of the asset, and is recognised in the statement of financial activities. 19-
NEWLYN ART GALLERY LIMITED NOTES TO THE FINANCIAL STATEMENTS {CONTINUED} FOR THE YEAR ENDED 31 MARCH 2024 Accountlng pollcles Icontlnuedl 1.7 Herltage assets Heritage assets are measured at valuation and comprise the collection of arbNorks held in support of the Gallery's primary Dbjective of increasing knowledge, understanding and appreciation of art. These are primarily paintings and drawings, with some prints and medals. The majority are housed at The Exchange, Princes Street, Penzance TR18 2NL and the remainder al Penlee House Gallery and Museum, Morrab Road, Penzance, TR18 4HE. These works are not for sale and comprise the Pemianenl Collection. Langley Medals and all rtems on loan to Penlee House Gallery and Museum. The trustees consider the Heritage assets to have indetemiinate lives and a high residual value, hence the trustees do not Consider it necessary to charge depreciatlDn. 1.8 Fixed asset investments The Gallery holds two collections of works as investments, the Reuss Collection and Reserve Collection. These are available for sale and held primarily for investment gain or income generation and thus cannot be classified as heritage assets. These investments are measured at fair value. 1.9 Impairment of fixed assets Al each reporting end dale, the charity reviews the carrying amounts of ils tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss lif any). 1.10 Stocks Stocks are slated at the lower of cost and eslimaled selling price less costs to complete and sell. 1.11 Cash and cash equlvalents Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown thin borrowngs in current Iiabililies. 1.12 Financial instruments The charity has elected lo apply the provisions of Section 11 'Basic Financial Instruments, and Sedion 12 'Olher Financial Instruments Issues, of FRS 102 to all of ils finanaal inslrumenls. Financial instruments are recognised in the charity's balan sheet when the Charity becomes party to the contractual provisions of the inslrumenl. Financial assets and liabilities are offset, with the net amounts presented in the financial stalemenls, when there is a legally enforceable right lo sel off the recognised amounts and there is an intention lo settle on a nel basis or to realise the asset and settle the liability simultaneously. BasiTC financial assots Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction pri including Iransa¢lion costs and are subsequently carried al amortised cost using the effective interest method unless the arrangement constilules a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised. -20-
NEWLYN ART GALLERY LIMITED NOTES TO THE FINANCIAL STATEMENTS {CONTINUED} FOR THE YEAR ENDED 31 MARCH 2024 Accountlng pollcles Icontlnuedl Basic financial liabilities Basic finanaal liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured al the present value of the future payments discounted at a market rale of interest. Financial Iiabililies dassilied as payable thin one year are not amortised. Debt instruments are subsequently carried al amortised cost, using the effective interest rale method. Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequenuy measured al amortised cost using the effective interest method. Derecognition of financial liabilities Financial Iiabililies are derecognised when the charity's contractual obligations expire or are discharged or cancelled. 1.13 Taxation The charity is exempt from corporation tax on its charitsble activities. 1.14 Employee beneflts The cost of any Ljnused holiday entitlement is rewgnised in the period in which the employee's services are received. Temiination benefits are recognised immediately as an expense when the charity is demonstrably committed lo lerminale the employment of an employee or to piovide lerminalion benefits. 1.15 Retirement benefits The charitable company operates a defined contribution pension scheme. Contributions payable lo the charitsble company's pension scheme are charged to the Statement of Financial Activities in the period lo which they relate. Differences beeen contributions payable in the year and contributions actually paid are show wthin creditors in the balan sheet. The charitable company also makes payments to a defined benefit scheme, the Pension Scheme for Administralion and Technical Staff in the Arts I'the Scheme"), which has ceased to accrue pension benefits bul which has a deficit in its fund. The charitable company remains liable for ils portion of the deficit in the Scheme funds. The assets of the Scheme are administered by a trustee, in a fund independent from those of the charitable company. The Scheme is a mulli-employer scheme and the charitable company is unable to identify ils share of the undedying assets and liabilities. There is a funding agreement in place lo eliminate that element of the deficit in the Scheme which is relative to the charitsble company. The funding liability is reassessed based on triennial aduarial valuations, with the last one being 2022. A liability has been recognised in the balance sheet equal lo the nel present value of the future deficit reduction payments. The payments are discounted to present value using the rnarket yield on high quality corporate bonds which currently equates lo 4.7°k 12023.. 4.9°hl. The pension costs charged to profit or loss are the finance costs representing the unwinding of the discount. Further details relating to the pension schemes are sel out in note 24. 1.16 Lease5 Rentals payable under operating leases, including any lease incentives received, are charged as an expense on a straight line basis over the term of the relevant lease. 21
NEWLYN ART GALLERY LIMITED NOTES TO THE FINANCIAL STATEMENTS {CONTINUED} FOR THE YEAR ENDED 31 MARCH 2024 Critical accounting estimates and judgements In the application of the charitable Company's accounting policies, the Iruslees are required lo make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The eslimales and associated assumptions are based on historical experience and other factors that are considered lo be relevant. Actual results may differ from these eslimales. The eslimales and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimale is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. The eslimales and assumptions which have a significant risk of causing a material adjustment to the Carrying amount of assets and liabilities include the Inputs and eslimales used in determining the fair value of investments and heritage assets and the estimates used in determining the carrying amount of the defined benefit scheme liability, including discount rate. Donatlons and legacles Unrestricted Restricted funds funds Total Unrestii¢ted Rèstricted funds funds Total 2024 2024 2024 2023 2023 2023 Donations induding admissions Subsciiptions 60,776 1,956 4,343 65,119 1,956 64,534 2,426 928 65,462 2,426 62,732 4,343 67,075 66,960 928 67,888 -22-
NEWLYN ART GALLERY LIMITED NOTES TO THE FINANCIAL STATEMENTS {CONTINUED} FOR THE YEAR ENDED 31 MARCH 2024 Charitable activitie5 Charltsble Charltable Actlvltles Actlvltles 2024 2023 Perf0rrnan related grants Other income 450,593 67,710 496.438 60,837 518,303 557,275 Analysis by fund Unrestricted funds Restricted funds 455,350 62,953 453,760 103,515 518,303 557,275 Perfomiance related grants Arts Council of England Other grant income Cornwall Council Trusts and Foundations Project grants Trusts and Foundations Capital Works grants Trusts and Foundations Revenue Grants Receivable 368,417 19,903 18,750 43,400 368,435 89,827 28,750 4,426 5,000 123 450,593 496,438 Other tradlng actlvltles Unrestrlcted Restrlcted funds funds Total Unrestrl¢ted Restrl¢ted funds funds Total 2024 2024 2024 2023 2023 2023 Fundraising events Shop and café income Rental and other trading income 2,970 154,701 3,565 6,535 154,701 386 161,025 4,020 4,406 161,025 29,291 29,291 20,970 1311 20,939 Other trading activities 186,962 3,565 190.527 182.381 3.989 186,370 -23-
NEWLYN ART GALLERY LIMITED NOTES TO THE FINANCIAL STATEMENTS {CONTINUED} FOR THE YEAR ENDED 31 MARCH 2024 Investments Unrestricted Unrestricted funds funds 2024 2023 Interest receivable 671 3,211 Ral$lng fund$ Unrestrlcted Restrlcted funds funds Total Unrestricted funds Restricted nds Total 2024 2024 2024 2023 2023 2023 Trading costs Purchases stock movement Cleaning Utilities and property maintenance Consumables Equipment hire staff costs 71,465 6,750 14,755 71,478 6,750 14,755 90,185 13,0061 473 1381 90,147 {3,0061 473 776 4,552 3,040 65,962 776 4,552 3,040 65,962 1,466 7,720 1,969 64,251 1,466 8,970 1,969 64,251 1,250 Trading costs 167,300 13 167.313 163.058 1,212 164,270 167,300 167,313 163,058 1,212 164,270 -24-
NEWLYN ART GALLERY LIMITED NOTES TO THE FINANCIAL STATEMENTS {CONTINUED} FOR THE YEAR ENDED 31 MARCH 2024 Charitable activitie5 Charitable Charitable Activities Activities 2024 2023 Stsff costs ' Depreciation and impaimienl Telephone Postage Advertising Utilities and property maintenance Repairs and renewals Event costs, (excluding stsff costs) Education ' lexduding staff costs) Exhibitions ' lexcluding staff costs) Sundry expenditure Travel and subsistence Consultsncy, legal and professional Bank charges Irrecoverable VAT Hire of equipment Insurance Olhei charitable expenditure 477,883 106,456 4,331 3,387 10,017 38,886 23,155 7,299 29,400 39,868 5,620 10,976 5,284 4,236 10,829 4,130 10,039 1,117 512,126 106,091 4,826 2,649 28,063 66,210 52,625 17,089 52,208 107,961 821 11,603 17,035 5.794 20,807 3,904 13,764 240 792,513 1,023,816 Share of support costs (see note 91 Share of governance costs (see note 91 3,035 41,654 2,580 34,072 837,202 1,060,468 Analysis by fund Unrestricted funds Restricted funds 644,034 193,168 610,246 450,222 837,202 1,060,468 Included within staff costs are the following.. Events stsff costs Gallery & exhibition staff and technicians Costs Education staff and technicians costs Other staff costs £26,695 £92.218 £59,287 £299,483 12023. £41,502) 12023.. £123.1481 12023.. £51,8261 12023.. £295.6501 Totsl staff costs £477.683 12023: £512.1261 -25-
NEWLYN ART GALLERY LIMITED NOTES TO THE FINANCIAL STATEMENTS {CONTINUED} FOR THE YEAR ENDED 31 MARCH 2024 Support costs Support Governanco Costs Costs 2024Support costs Govemance costs 2023 Interest payable 3,035 3,035 2,580 2,580 Auditor's remuneration Auditor's remuneration for non-audil work Legal and professional 17,900 17,900 12,750 12,750 5,652 18,102 5,852 18,102 7,324 13.998 7,324 13,998 3,035 41,654 44,689 2,580 34,072 36,652 Analysed between Charitsble activits'es 3,035 41,654 44,889 2,580 34,072 36,652 10 Tru$lg9$ None of the trustees lor any persons connected with them) received any remuneration or benefits from the charity during the year nor for the year ended 31 March 2023. During the year no trustees were reimbursed for expenditure12023.' £nill. 11 Employees The average monthly number of employees during the year was". 2024 Number 2023 Number Employees 26 31 Employment costs 2024 2023 Wages and salaries Social security costs Olhei pènsion costs 477,793 32,071 33,781 475,419 31,142 69,816 543,645 576,377 The pension costs include £nil12023." £46,432) relating lo an increase in the defined benefrt scheme liability following the most recent triennial valuation (see note 231. -26-
NEWLYN ART GALLERY LIMITED NOTES TO THE FINANCIAL STATEMENTS {CONTINUED} FOR THE YEAR ENDED 31 MARCH 2024 11 Employees Icontlnuedl The number of employees whose annual remuneration was more than £60,000 is as follows.. 2024 Number 2023 Number £60,001 to £70,000 12 Taxatlon The charity is exempl from lax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied lo ils charitable objects. 13 Tangible fixed assets Freehold property Leasehold land and buildings Tools and equipment Computer equipment Totsl Cost Al 1 April 2023 Additions 2,738,404 1,961,127 95,255 11,189 88,960 4,883,746 11,189 Al 31 March 2024 2,738,404 1,961,127 106,444 88,960 4,894,935 Depreclatlon and Impalment Al 1 April 2023 Depreciation charged in the year 775,136 54,877 627,322 39,222 65,176 5,665 73,347 6,694 1,540,981 106,458 Al 31 March 2024 830,013 666,544 70,841 80,041 1,647,439 Carrying amount Al 31 March 2024 1,908,391 1,294,583 35,603 8,919 3,247,496 Al 31 March 2023 1,%3,268 1,333,805 30,079 15,613 3,342,765 Contained wthin Freehold Property is The Engine Room. The Engine Room is a redeveloprnenl of educational and hire space with The Exchange gallery allOnn9 a multi-purpose facility with up-to-date IT communications equipment lo further enhance the educational aims of the charity while also generating additional streams of earnèd income from workshops and hires. The Engine Room was funded with generous support from Arts Council England, The Garfield Weston Foundation and the Bernard Sunley Foundation. The lease held on Newlyn Art Gallery was renegolialed in 2006. The revised lease term is 99 years. The freehold of The Exchange Building was purchased in July 2006 with ftjnds secured from a number of grant making bodies. The principal funders were ERDF Objective 1 and Arts Council England. -27-
NEWLYN ART GALLERY LIMITED NOTES TO THE FINANCIAL STATEMENTS {CONTINUED} FOR THE YEAR ENDED 31 MARCH 2024 14 Heritage assets At 1 April 2023 and at 31 March 2024 527,373 In 1979, John Halkes, then Director of Newlyn Art Gallery, initiated the first serious review of Newlyn School painting between 1880 and 1900. By 1985 his work had resulted in a major showng al the Barbican Art Gallery in London, while in Neyn a second survey show dea wth 1900 10 1930. Halkes sel out lo begin a collection, attracting gifts from collectors and heirs and soliciting bequests from the Gallery's supporters. The Gallery was built in 1895 and has been showing work by artists attracted to West Cornwall ever since then.. under Halkes, Directorship il was established as a publicly ftjnded Contemporary art gallery. It has since achieved a high reputation for its programme of exhibitions and education work but the idea of building a collection was IDSt along the way. It proved an impossible task with extremely limited staff and resources, and while a concentration upon current work was a condition of revenue funding. The small group of art works John Halkes acquired are now on loan to the Penlee House Museum & Art Gallery in Penzance, where a specialisalion in Neyn School and related art has developed, and where this work is almost always on view. Other works given or bequeathed over the years have induded works on paper by Charles Breaker and Bryan Wnler. The Gallery's external valLJer, David Lay FRICS, carried out a full valuation of the collection of artworks as at 31 March 2020. The valuation was based on commercial markets, including recent transaction information from auctions where similar types of paintings are regularly being purchased. The trustees are of the opinion that there was no material changè In fair value during the year to 31 March 2024. This valuation represents a significant estimate and the estimation uncertainties inherent in this valuation have a significant risk of resulting in a material adjuslmenl to the carrying amount of these assets in a future period. 16 Flxed asset Investments Other investments Valuatlon Al 1 April 2023 & 31 March 2024 82,117 Carrying amount Al 31 March 2024 82,117 Al 31 March 2023 82,117 16 Stocks 2024 2023 Stock 26,000 32,750 -28-
NEWLYN ART GALLERY LIMITED NOTES TO THE FINANCIAL STATEMENTS {CONTINUED} FOR THE YEAR ENDED 31 MARCH 2024 17 Debtors 2024 2023 Amounts falling due within one year: Trade debtors Other debtors Prepayments and accrued income 2,388 2,964 7,903 171,296 93,979 96,367 182,163 18 Credltors: amounts falllng due wlthln one year 2024 2023 Notes Bank loans Other tsxation and social security Trade creditors Other creditors Accruals and deferred income 20 10,045 9.295 13,562 16,326 45,490 10,025 8,055 33,418 9,393 19,792 94,718 80,683 Included in Other Creditors is the current element of the net present value of the future pension deficit reduction payments £11,14812023.' £9,447) as required by FRS 102. (See note 241. 19 Creditors: amounts falling due after more than one year 2024 2023 Notes Bank loans Other Creditors 20 28,349 63,156 38,413 69,528 91,505 107,941 Other creditors represents the non-current portion of the net present value of future pension deficit reduction payments as required by FRS 102. (See note 241. 20 Loan$ and ovgrdrafts 2024 2023 Bank loans 38,394 48,438 Payable within one year Payable after One year 10.045 28,349 10,025 38,413 -29-
NEWLYN ART GALLERY LIMITED NOTES TO THE FINANCIAL STATEMENTS {CONTINUED} FOR THE YEAR ENDED 31 MARCH 2024 20 Loans and overdrafts Icontlnuedl Lloyds Bank pl¢ holds a first legal charge over the freehold land and buildings at The Exchange, Princes Street, Penzance. In addition to the charge disclosed above, the Arts Council England holds a debenture secLJring £1,200.000 and all other monies due or to become due from the charitable company to the Art Council England. This is secured by a charge over the freehold property in PenZan and the leasehold property in Newlyn. The loan is repayable in 120 consecutive monthly installmenls represenb'ng principal and interest. The rale of interest payable on the loan during the Capped Rate Period, which ran until 3 July 2022, was the lower of.. 813.600h over Base Rate per annum, and bl the Capped Rate. being 4.950h. Following the end of the Capped Rale Period, the rate of interest payable is 3.10% over Base Rale per annum. 21 Cash generated from operations 2024 2023 Deficit for the year 1227,9391 1409,9941 Adjustments for.. Investment income recognised in statement of financial aclivi(ies Depreciation and impairment of tangible fixed assets 16711 106,458 13,2111 106.091 Movements in working capital.. Decreasellincreasel in stocks Decreasellincreasel in debtors Increaselldecreasel in creditors 6,750 85,796 7,643 {3,0051 122,0021 112,5031 Cash absorbed by operatlons 121,9631 1344,6241 22 Analysis of changes in net funds At 1 April 2023 Cash flowsAt 31 MarGh 2024 Cash al bank and in hand 109,163 142,5251 66,638 Loans falling due within one year Loans falling due after more than one year 110,0251 138,4131 1201 10,064 110.0451 128,3491 60,725 132,4811 28,244 30-
NEWLYN ART GALLERY LIMITED NOTES TO THE FINANCIAL STATEMENTS {CONTINUED} FOR THE YEAR ENDED 31 MARCH 2024 23 Retirement benefit schemes Defined contribution schemes The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charty in an independently administered fund. The charge to profil or loss in respect of defined contribution schemes was £25,13412023". 21,9681. Al the end of the year the amount outstanding for pension contributions wa5 £2,98912023". £nill. Defined benefit scheme The charitable company contributed to a defined benefit scheme., the"Pension Scheme for Administration and Technical Staff in the Arts up lo 14 December 2012 when the scheme was closed ID future accrual. The charitable company remains liable for ils portion of the deficit in the scheme funds. The assets of the scheme are administered by a Iruslee, in a fund indèpendent from those of the ¢haril8ble company. The scheme is a mulli-employer scheme and the charitable company is unable to identify ils share of the undedying assets and liabilities. As noted in the Accounting Policies there is a funding agreement in place lo eliminate that element of the deficit in the scheme which is relative to the charitable company. The scheme is classified as a 'last-person standing arrangement.. Therefore, the company is potentially liable for other participating employers, obligations if those employers are unable lo meet their share of the scheme deficit following withdrawal trom the scheme. Participating employers are legally required to meet their share of the scheme deficit on an annuity purchase basis on withdrawal from the Scheme. The triennial valuation as al 31 March 2022 was agreed on 23 June 2023 and eslimaled a funding shortfall of £2.947.000 12019 valuation.. £2.299.0001. An updated recovery plan was approved at the same time lo aOUnt for the updated valuation as well as a decrease in the number of remaining participating employers. Under the updated recovery plan Neyn Art Gallery. as one of several employers responsible for funding this shortfall, has agreed lo pay monthly contributions of £1,220 from 1 July 2023 to 31 March 2031 Iprevious plan.. £779 from 1 July 2017 10 31 May 20271. A liability has been recognised in the balance sheet equal to the nel present value of these future deficit reduction payments. The payments are discounted lo present value using a yield curve dèrived from AA rated bonds in the iBoxx sterling corporate bond index. this gave a rale of 4.70h12023." 4.9%). The nel present value of the sum of the remaining monthly wntributions as at 31 Mar¢h 2024 is £74,304 12023.. £78.9751 and this has been recorded as a liability in the balance sheet with £11,14812023'. £9.4471 in creditors falling due within one year and £83,15612022'. £69,528) in creditors falling due after one year. 31
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NEWLYN ART GALLERY LIMITED NOTES TO THE FINANCIAL STATEMENTS {CONTINUED} FOR THE YEAR ENDED 31 MARCH 2024 28 Operating lease commitments Al the reporting end dale the charity had oulslanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows.. 2024 2023 Ilhin one year Beeen two and five years 4,240 5,503 2,707 4,657 9,743 7,364 37-
NEWLYN ART GALLERY LIMITED NOTES TO THE FINANCIAL STATEMENTS {CONTINUED} FOR THE YEAR ENDED 31 MARCH 2024 29 Free reserves 01 funds held al the year end, £2,560,90212023'. £2,628,444) were unreslricled. Reslri¢led funds comprise £771,493 12023.. £931,890) consisting of the funds disclosed in note 25. Free reserves are that part of the charity's unrestricted funds that are freely available to spend on any of the charity's purposes. At 31 March 2024 the charity's free reserves were in surplus by £72,46312023.' £135,497). Free reserves are calculated as follows.. 2024 2023 Total funds al 31 March 3,859,768 4,087,707 Less. endowment ftjnds Less.. Freehold property Less. Leasehold propety Less.. Tools and equipment Less. Computer equipment Less.. Tea, Cake & Art reslricled fund Less.. Jerwood reslrided fund Less. Arts Council Collection restricted fund Less.. Weston Culture restricted fund Less.. National Portrait Gallery Project Less.. Kickstarter grant Less.. JAFMO Less. Paul Hamlyn Less. Peer lo Peer Less.. ACC Workforce Development Grant 1527,3731 11,908.3911 11,294,583) 135.6031 18,9191 112,4361 1527,3731 {1,963,2681 {1,333,8051 130,0791 115,6131 6,535 112,4561 25,694 {11,0911 110,2921 289 146,1671 13.2931 131,3091 72,463 135,497 As the Arts Council reslricled ftjnds of £759,05712023'. £849,817) relate lo the freehold and leasehold properties that have been deducted in arriving al the free reserves above, this restrided fund has not been separately exduded in the analysis above. Movement in Free Reserves- 2024 2023 Balance at start of year 135,497 129,819 Fixed asset additions Fixed asset depreciation in the year Surplus I (Deficill for the year Less. revaluation of heritage assets Decreasellincreasel in restricted funds lexcl. propetyl 111,1891 106.458 {227,9391 166,0141 106,091 1409,9941 69,636 375,595 Balan at end of year 72,463 135,497 38-
NEWLYN ART GALLERY LIMITED NOTES TO THE FINANCIAL STATEMENTS {CONTINUED} FOR THE YEAR ENDED 31 MARCH 2024 30 Related party transactions Remuneration of key management personnel The remuneration of key management personnel is as follows. 2024 2023 Aggregate compensation 173,637 144,745 39-