THE
FOUNDATIO
ANNUAL REPORT &
FINANCIAL STATEMENTS
Year Ended 31st March 2023

CONTENTS
LEGAL AND ADMINISTRATIVE INFORMATION
WHO WE ARE AND WHAT WE DO
ACTIVITIES REPORT
TRUSTEES, REPORT
8-11
INDEPENDENT AUDITOR'S REPORT
12-14
STATEMENT OF FINANCIAL ACTIVITES
15
BALANCE SHEET
16
CASH FLOW STATEMENT
17
NOTES TO THE FINANCIAL STATEMENTS
18-26

## LEGAL AND ADMINISTRATIVE INFORMATION 

Charity Name: The Harley Foundation Charity Registration number: 276611 ����������������������������������������� ��������������������� Worksop Nottinghamshire S80 3LT Trustees: Mr W H M Parente Ms D M A Parente Mr R J Brown Mrs Z Caldecott Mr M Fullerlove (resigned 23 August 2022) Ms P J Glanville (appointed 23 August 2022) Senior Management: Ms Lisa Gee (Director) Curatorial Advisory Group: Mr M Hall Mrs K Hearn (Chair) Ms H Obee Mr H Wyndham Auditors: Dixon Wilson Audit Services LLP 22 Chancery Lane, London WC2A 1LS Bankers: NatWest Bank Plc 69 Bridge Street Worksop, S80 1DJ Solicitors: Wiggin Osborne Fullerlove 52 Jermyn Street London, SW1Y 6LX Investment Managers: CCLA Investment Management Limited Senator House, 85 Queen Victoria Street London, EC4V 4ET Thesis Asset Management Limited Exchange Building, St John’s Street Chichester, PO19 1UP 

3 



WHO WE ARE AND WHAT WE DO
The Harley Foundation was set up in 1978 by the late Duchess of Portland to encourage creativity
and to help maintain traditional craft skills. Today we aim to help more people access and enjoy the
visual arts and to help artists and makers to continue to create.
Vision
To encourage people to enjoy the visual arts and crafts.
To create spaces where the imagination can flourish. and be enjoyed.
To spark creativity by bringing the old and the new face to face through public
exhibitions in the Harley Gallery and the Portland Collection gallery.
To celebrate the handmade through exhibitions, events, and studio spaces.
To offer artists and makers spaces to create and sell their work.
Mission
Activities
Admission to both galleries is free.
At the Harley Studios we provide subsidised workspaces and special schemes of support for individ-
ual artists and makers.
The Harley Gallery has three exhibition spaces. The exhibition spaces show the work of contempo-
rary artists and makers through a varied programme which changes five times annually. The Gallery
has an annual programme of events for 8dult visitors. families, schools and children. The Gallery
Shop sells work from around 250 makers and craftspeople from across the UK.
The Poriland Collection Gallery shows fine and decorative arts from the Portland Collection.
The Harley Foundation receives an annual income from the investment of the gifts made by the late
Duchess of Portland in 1978 and from the late Lady Anne Bentinck in 2010. In addition the Founda-
tion raises income from studio licence fees, grant funding for wrticular projects and via It's trading
subsidiary from the Harley Gallery shop, events and café.

ACTIVITIES REPORT
Our mission to create spaces where creativity can flourish remained in place, as did our commitment lo
engaging with as broad a range of visitors as possible. Both of our gallery spaces remain free admission
and we welcomed 83,000 visitors in the year.
The ERDF funded Art Trail, linking us lo neighbours Creswell Crags. opened10 March 2022. 27.000
visitors used the Irail over the year. The tiail consists of sculptures by Michelle Reader and Martin Smith.
We commissioned a new website for the Harley Foundation which weni live on15th March 2023.
The Portland Collection gallery closed for a re-hang in January 2023. It re-opened 25th March with the
new exhibition 'Unseen Treasures.. 'Unseen Treasures, consists of displays of pre-eminent works of art,
dating from1538- 1870. Items on display include furniture. oil portraits, miniature paintings, silver plate,
Royal jewellery, early Netherlandish paintings.
Works from the Portland Collection are now listed on the website ART UK which attracts 4M visits
annually and promotes 3.400 public art collections.
Harley Gallery
March- June
Harvest Fruit.. Neil Wilkin and Rachel Woodman. handblown glass
Interrupted Views.. Jennie Moncur. woven tapestry.
The displays coincided with the launch of 'Unseen Treasures. and generated over
£35K sales foi the three exhibiting artists.
Jan- March
Well-travelled.. Anne Kelly. eMbr0￿dered textiles
To complement the exhibition we developed a making studio for visitors. This
attracted a committed cohort of visitors, many travelling 60 miles plus to visit.
Jason and the Argonauts.. Jason Wilsher Mills. digiial installation / sculpture
The Harley Open Exhibition.
Oct - Dec
July- September
Over 700 entries from regional artists in a 100m mile radius of the gallery. The
Harley Foundation Prize was shared between Mollie Weburn Cowell and Verity
Pulman. The Peoples Prize went to'oU￿nS Jubes.. a collage created by children
at Child First Nursery and their artist-in-residence. The Welbeck Abbey Brewery
prize was won by Jane Hindmarsh for 'Redhill'.
April - June
Kyra Cane X Vila Nova.. Ceramics and design
Potter Kyra Cane has a studio at the Harley Foundation. This exhibition
showcased her collaboration with internaiional interior design company Vila
Nova.
During the year the gallery shops generated £214k of sales of one-off pieces by artists and designers.

r?nte
We received the following grants duiing the year..
£24.573 from Inspire, N.C.C. to subsidise a programme of adult and family learning in the Harley
Pollery Studio and EdU￿tIOn Studio.
£11,500 from the John Hemingway Trust to develop a community education programme.
Public Benefit
Both the Harley Gallery and the Portland Collection museum are open 6 days a week and are free
admission.
The Harley Pottery Studio ran classes for students of all ages and abilities. We have continued to work
In partne.rship with Nottinghamshire MIND lo offer short courses to their service users.
Arlisi biua105
The Harley Foundation offers 22 artist studios at subsidised costs to practicing artists. The studios were
full throughout the year.
Current occupants this year..
Restoration
The Glass Repository
Goet2e Gwynn - Organ Restoration
Ross Alcock - Clock Restorer
Mark and Diana Roberts - PairTrting Cornservation
Fiona Hutchinson - Ceramic Restoration
Geoff Tinniswood - Keyboard Restoration
Visual Arts
Michelle Reader - Sculptor
Phil Neal Sculptor
Steve Handley - Sculptor
Hilary Bower - Textile Artist
Louise Asher Textile Artist
Louise Presley - Textile Artist
Lauren Geoghegen - £thical fashion designer
Craft and Design
Laura Baxter - Jeweller
Natalie Harris - Jeweller
Janie Withers - Textile Design
Ruth Waller and Lee Hewitt Textile Designers
Richard Hartley Guitar maker
Lynne Stanniland - Potter
Rachel Wood - Potter
Kyra Cane - Potter
Simon Mount - Furniture Maker

Education
A full programme of school workshops was offered throughout the year.
The grant from N.C.C. heltEd fund the Harley Pottery Studio which ran c£)urses for a range of users of
different abilities.
The Portland Collectior) commissioned three different gallery trails which are offered to visitors free of
charge.
Monthly gallery talks were programmed and were fully sdd out. These are offered on a 'pay what you
can afford, basis.
Lift Offl Is a framework for teaching art to children and is offered as a free download from our website.

TRUSTEES, REPORT
The Trustees present their report and audited financial statements for the year ended 31 March 2023.
The financial statements have been prepared in accordance with the accounting policies set out in note
1 to the accounts and comply with the charity's Trust Deed, the Charities Act 2011 and the Charities
SORP IFRS 1021
Goi'i If Ildl Ice and ManagL'I i i I Il
The full name of the unincorporated charity is 'The Harley Foundation, ( Foundation l. The Foundation is
goveined by a Trust Deed dated 11 September1978 and various supplemental deeds. The Foundation's
registered office address and current Trustees are listed on page 3.
The Foundation has a wholly-owned subsidiary, Harley Gallery Trading Limited, a private company lim-
ited by share capital. cornpany number 08083700. The subsidiary carries on trading activities under the
direction of the Trustees and senior management.
Recruitment and Appoinimenl of Trustees
Trustees are appointed by unanimous formal resolution of the 808rd of Trustees. The Trustees have the
Fower lo add, amend. replace or revoke all or any ol the powers conferred on them by the Trust Deeds
provided that no exercise of that power shall affect the objects of the Foundation.
'Iion an(1
Potential Trustees m&1 with the Director and Chair of Trustees for a discussion about the work of the
Harley Foundation and the interaction between staff and Trustees. They are invited lo join us for a full
Trustee Meeting and to meet with other Trustees. Once Trustees have joined, they are given a full infor-
mation pack with Information about current work projects, the mission statement and fuiure plans. They
then spend time with gallery staff, key stakeholders and partners. All new Trustees are given appropriate
Charity Commission documents relating to good practice for Charity Trustees.
The Trustees have examined the major risks to which the Foundation is exposed. Financial sustainability
is the major financial risk for both the Foundation and its subsidiary. A key element In the management
of financial risk is a regular review of available liquid funds to settle debts as they fall due. In particular.
the Foundation's investments are monitored to ensure sufficient funds are generated to provide working
capital for the Foundation and its subsidiary company. There are also non-financial risks arising from
healih and safety of staff. clients and visitors lo the gallery. Procedures are in place to manage these
risks, and these procedures are periodically reviewed lo ensure that they continue to meet the require-
ments of the Foundation.
Curaiorial Advisory Group
The Curatorial Advisory Group considers the display of works from the Portland Collection in the Foun-
dation's galleries. The terms of reference of the group are to offer advice and oversight of proposed ex-
hibitions of the Portland Collection. to propose likely academic links and partnerships and to advise on
best practice with regard to interpretation and display matters. Members to the Group are appointed for
a 3-year term which may be extended. The Curatorial Advisory Group is made up of leading art histori-
ans and curators and the members of the group are listed on page 3.

The Foundation's objects as set out in the Trust Deeds are..
The advancement of public education particularly in arts and crafts and the improvement of pub-
lic taste therein..
The promotion and assistance in the promotion of training, apprenticeship, instruction and edu-
cation of persons in the United Kingdom in the practice and performance of arts and crafts,.
Such other charitable objects for the advancement of education as the Trustees not being less
than three in number shall from time to time by deed or deeds executed with their unanimous
consent declare.
The Foundaiion's principal activities in pursuance of its objectives are..
The maintenance of the Harley Gallery as a premier location in Nottinghamshire for the promo-
tion of exhibitions of art and craft, and as a venue for the holding of courses for schcx)I children
and adult learners,"
The maintenance of the Portland Collection gallery for the display of historic fine and decorative
arts from the Portland Collection. The displays are semi-permanent and change every 33 months."
The provision of subsidised workshops for craftspeople to encourage training and preservation of
art and craft skills. The Foundaiion gives encouragement to artists lo display and sell their work
at the Gallery and elsewhere,
The grant of sponsorship and bursaries in support of the educational role of the Foundation, and,.
The Foundation aims to attract at least 90,000 visitors per annum to the Harley Gallery and max-
imise the occupancy of its craft workshop, as well as maximising the opportunities it can offer to
support and promote arts and crafts.
Information on the Foundation's activities during the year is given on pages 5 to 7.
Public Benefit Statement
The Trustees, having regard to the Public Benefit guidance published by the Charity Commission in ac-
ordance with section17 of the Charities Act 2011, consider that the purpose and activities of the chari-
ty satisfy the requirements of the public benefit test set out in section 4 of the same Act.
The Trustees, having reviewed the future commitments of the Foundation. afe of the opinion that the
funds and investments held at the year end are rTrecessary to produce income and gains to supplement
that generated from its charitable activities in order to maintain the normal operations of the Founda-
tion, to cover ongoing costs of maintaining and operating the gallery and workshops, and to continue
the educational activities of the Foundation.
The Trustees are confident that the Foundation has the financial resources to continue to further its
charitable objectives outlined above.

Finaiicial Rei,.
A summary of the Foundation's results for the ye8r are as set out In the Statement of Financial Activities
on page 15. IOOYo12022.. 1001.1 of the Foundation's expenditure related to its key charitable objectives.
The Foundaiion's total outgoing resources this year were £1.211,92512022.. £1,023,799) which has been
funded through income generated from the Foundation's charitable activities of £121,897 12022..
£89,641), investment income of £394.77912022. £353.9511. donations from Harley Gallery Trading Lim-
ited of £42,34912022.. £nill and other income of £nil (2022.. £89,2771 leaving a deficit for the year of
£596,04812022. £490.930 deficit) There were also net gains arising on the Foundation's fixed and cur-
rent asset investments in the year amounting to £28.42612022 net gains £984,1491, resulting in total
unrestricted funds carried forward of £24.405.32912022. £25.029.8031.
PrinciDal Fundinq Sources
The principal sources of funding for the Foundation are income and gains generated by its investments.
supplemented by Income generated by Harley Gallery Trading Limited, grants from third parties and
license fees paid by the occupants of the craft workshops.
The Trustees have adopted a balanced Investment approach with the view of achieving a long term
total return through a mixture of property and equity investments Details of the Foundation's current
vestments in agricultural land and equities are set out in note 8 of the financial statements.
The Foundation has holdings in two invesimeni funds.. the COIF Charities Investment Fund, managed by
CCLA Investment Management Limited, and The Ord Fund ICVC. managed by Thesis Asset Manage-
ment Limited. Both funds have similar approaches.. The investment objective is to maximise its total re-
turn from a diversified portfolio. mainly of equities, spre8d across glob81 markets principally through se-
curities and shares in collective schemes but also through money market instruments. deposits and
cash or near cash investments. No emphasis is placed on any particular economic. industrial or geo-
graphical sector. The funds have a foGUS on total return rather than high yield and the Trustees plan to
sell units lo provide funds to subsidise the Foundation's charitable activities.
The Foundation's tradeable Investments showed a revaluation loss of £471,01612022. gain of £709,074).
The value of the Foundation's agricultural land increased In the year by £420,00012022. £255,000 in-
crease). Overall, the value of the Foundation's investments increased by 7%12022.. 34Yo increase).
io

I I,)r mAricl(Jriineni
Matters ol slfalegy are agreed by the Trustees whilst day to day management Including decisions
involving the execution of strategy are delegated to the senior management. The pay of key
management personnel is reviewed annually. The review considers pay in the sector. the general
economic environment and personal performance.
Responsibilities of the Trustees
The Trustees are responsible for preparing the Report of the Management Committee and the financial
statements in accordance with applicable law and United Kingdom Accounting Standards (United King-
dom Generally Accepted Accounting Practice).
The law applicable to charities in England & Wales requires the Trustees to prepare financial statements
for each financial year which give a true and fair view of the state of affairs of the charity and of the in-
coming resources and application of resources of Ihe charity for that period. In preparing these finan-
ci31 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 estimates that are reasonable and prudent..
state whether applicable accounting standards have been followed. subject to any material depar-
tures disclosed and explained in the financial statements,.
prepare the financial statements on the going concern bas1s unless it is inappropriate to presume
that the charity will continue in business.
The Trust&s are responsible for keeping accounting records which disclose with reasonable accuracy
the financial position of the Foundation and enable them to ensure that the financial statements comply
with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of
the Trust Deeds. They are also responsible for safeguarding the assets of the Foundation and hence for
taking reasonable steps for the prevention and detection of fraud and other irregularities.
The Trustees are responsible for the Maintenan￿ and integrity of the financial information included on
the Foundation's website. Legislation in the United Kingdom governing the preparation and dissemina-
tion ol financial statements may differ from legislation in other jurisdictions.
So far as each Trustee is aware. there is no relevant Information that has not been disclosed to the
Foundation's auditors and each Trustee believes that all steps neTrssary have been taken that ought to
have been taken to make them aware of any relevant audit information and to establish that the Foun-
dation's auditors have been made aware of that information.
This report has been prepared in accordance with the Charities SORP IFRS102).
Approved by t
rd of Trustees on 7 KXXI£M￿ ￿3and signed on its behalf by..
WHMPa
ente
Trustee
li

INDEPENDENT AUDITOR'S REPORT
nnininn
We have audited the financial slalements of The Harley Foundation (the 'charity'l for the year ended 31
March 2023 which comprise the statement of financial activities, balance sheet, statement of cash flows
and notes to the financial statements, including a summary of significant accounting policies. The finan-
cial reporting Iramework that has been applied in their preparation is applicable law and United Kingdom
Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard ap-
plicable in Ihe UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion, the financial statements-
give a true and fair view of the state of the charity's affairs as at 31 March 2023 and of its incoming
resources and application of resources, for the year the ended,.
have been properly prepared in accordance with United Kingdom Generally AC￿pted Accounting
Practice,.
have been prepared in accordance with the requirements of the Charities Act 2011.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) IISAS IUKII and ap-
plicable law. Our responsibilities under those standards are further described in the Auditor's responsibil-
ities 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 ac-
cordance with these requirements. We believe that the audit eviden￿ we have obtained is sufficient
and appropriate to provide a basis for our opinion.
'.)Iib i. :Ici Ing t￿, going concern
In auditing the financial statements, we have concluded that the trustee's use of the going concern basis
of accounting in the preparation of the financial statements ￿S 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 significani doubt on the charity's ability to
continue as a going concern for a period of at least twelve months from when the financial statements
are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described
in the relevant sections of this report.
12

Other information
The other information comprises the information included in the annual report, other than the financial
statements and our auditor's report thereon. The trustees are reswnsible for the other information. Our
opinion on the financial statements does not cover the other information and we do not express any
form of assurance conclusion thereon.
In connection with our audit of the financial slalements. our responsibility is to read the other infor-
mation and, in doing so. consider whether the other information is materially Inconsislent with the finan-
cial statements or our knowledge obtained in the audit 01 otherwise appears to be materially misstated.
If we identify such material Inconsistencies or apparent material misstatements. we are required to de-
termine whether Ihere is a material misstatement in Ihe financial statements or a material misstatement
of the other information.11. based on the work we have performed, we conclude that there is a material
misstatement of this other information. we are required to rewrt that fact.
We have nothing to rewrt in this regard.
Mailers on which we are required to report by exception
We have nothing to report in respect of the following matters in relation to which the Charities
(Accounts and Reporlsl Regulations 2008 requires us to rewrl lo you if, in our opinion..
the information given in the financial statements is inconsistent in any material respect with the
trustees, annual report.. or
sufficient accounting records have not been kept,. or
the financial statements are not in agreement with the accounting records.. or
we have not received all the information and explanations we require for our audit.
Responsibilities ol trustees
As explained more fully in the trustees. responsibilities statement set out on tkge 11, the trustees are re-
sponsible for the preparation of the financial statements and for being satisfied that they give a true and
fair view, and for such internal control 8S the trustees determine is necessary to enable the preparation
of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the charity's ability to
continue as a going concern, disclosing, as applicable. matters related to going concern and using the
going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease
operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audil ol the financial statements
We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accord-
ance with the Act and relevant regulations made or having effect thereunder.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstaiement. 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 IUKI will always detect a material misstatement when il exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the or in ag-
gregate. they could reasonably be expected to influence the economic decisions of users taken on the
basis of these financial statements.
13

Irregularities. including fraud, are instances of non-compliance with laws and regulations. We design
procedures in line with OLJr responsibilities. outlined above, to detect material misstatements in respect
of irregularities. including fraud. The extent to which our procedures are cap8ble of detecting irregulari-
ties. Including fraud is detailed below..
We gained an understanding of the legal and regulaLory framework applicable to the charity by consid-
ering, among other things, the sector in which it operates and considered the risk of acts by the charity
that were contrary to applicable laws and regu181ions. including fraud. We designed audit procedures to
respond to the assessed level of risk, bui recojnised that the risk of not detecting a material misslaie-
meni due 10 fraud is higher than the risk of not detecting one resulting from error, as fraud may involve
deliberate concealment by. for example, intentional misrepresentations. or through collusion.
We focused on laws and regulations which could give rise to a materi81 misstatement in the financial
statements. including. but not limited lo UK Charity Law, Our tesls included 8greeing the fin8nci81 state-
ment disclosures to underlying supporting documentation, enquiries with management and reviewing
correspondence with the Charity Commission.
As in all our aLJdiis, we also addressed the risk of management override of internal controls, including
testing journals and evaluating whether there was evidence of bias by management that represented a
risk of material misstatemeni due lo fraud.
There are inherent limitations in the audit procedures described above and, the further removed non-
compliance with laws and regulations 15 from the events and transactions reflected in Ihe financial slate-
ments, the less likely we would become aware of it. We did not identify any key audit matters relating to
irregularities, including fraud.
A further description of our responsibilities for the audit of the financial statements is located on the Fi-
nancial Reporiing Council's website at". www.frc.org.uklauditorsresponsibililies. This description foims
part of our auditor's report,
Use of our report
This report is mede solely to the charity's trustees, as a body, in accordance with regulations made un-
der section154 of the Charities Act 2011. Our audit work has been undertaken so that we might state to
the charity's Irustees those matters we are required lo slate 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 any"
one other than the charity and the charity's Iruslees as 8 body. for our audit work. for this report, ar foi
the oplnions we have formed.
Dixon Wilson Audit Services LLP. Statutory Auditor
22 Chancery Lane
London
WC2A 1LS
Date..
Dixon Wilson Audit Service5 LLP is eligible to act as an auditor in terms of section1212 of the Compar)ies
Act 2006.
14

STATEMENT OF FINANCIAL ACTIVITIES
Unrestricted funds
Unrestricted funds
Notes
2023
2022
Income
Donarions and1￿aCIeS
42.349
Investment income
394.779
353,951
Charitable activities
Galleries
60.494
29,266
60.375
- Craft workshops
61.403
Other income
89.277
Total income
559,025
532.869
Expenditure
Raising funds
Investment management fees
2.449
2.25d
Chariiable activities
Galleries
1.151.796
1.007.874
- Crali workshops
Total expenditure
57.680
13.671
11.211.925)
11,023.7991
Nel Ilossesl]gain8 on investments
28.426
984,149
Net income and net
movement in funds
1624.4741
493.219
Reconciliation of funds
Total funds brought forward
25.029.803
24.536,584
Total funds carried forward
24.405.329
25,029.803
15

BALANCE SHEET
Notes
2023
2022
Fixed Assets
Tangible fixed asseis
6.148.953
6.363.4119
Investments
17.861.230
16.557.407
Toial fixed assets
24.010,183
22,920,826
Current assets
Debtors
236.810
231.615
Current asset Investments
10
70.650
70.650
C88h at b8nk and in hand
239.395
2.045.256
Total current assets
546.855
2,347.521
Creditors= Amounts falling due
within one year
1151.7091
1238.5441
Net current assets
395.146
2.108.977
Total assets less current liabilities
24,405.329
25.029,803
Funds of the charity
Unrestricted funds
24,405.329
25.029.803
Approved b
e Boar
of Trustees onlend signed on its behalf by..
HMPare
Trust
The notes on pages 17 to 26 form part of these fin8ncial statements.
16

CASH FLOW STATEMENT
Notes
2023
2022
Cash flows from operations
Net movement in funds
1624,4741
493.219
Less: Investment income
1394.7791
1353.9511
Less.. Net gains on investments
128,4261
1963.5651
Ilricreaselldecrease in debtors
(Decreaselllncrease in creditors
10.932
2.861
186.8351
137.207
Depreciation
Other
214,874
215.427
12001
Net cash used in operatior)s
1908.7081
1469.0021
Cash flows from investment
nvestment income
378.654
353.951
Proceeds from sale of investments
4,634,000
Pur¢h8se of Investments
Purchase ol Fixed assets
11.275.000)
18071
13.225.000)
160,0501
Net cash generated from invest-
ment
1897.1531
1.702,901
Net movement in cash
11.805.861)
1.233.899
Cash at the beginning of the year
Cash al the end of the year
2,045.256
811.357
239.395
2.045.256
17

NOTES TO THE FINANCIAL STATEMENTS
Accounting t)olicies
Ra.qiq nf ar.p.ni Inrinn
The financial statements have been prepared under the historical cost convention. as modified by the
revaluation ol ceri8in assets. and in accordance with applicable accounting standards and AccoLJntirig and
Reporring by Charities.. Statement of Recommended Practice applicable to charities pieparing their
accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland
(Charities SORP IFRS 10211 (effective l January 20191. The financial srarements have been rounded to rhe
nearest £.
The Foundaiion is not required lo produce consolidated accounts because it is within the relevant threshold.
1.2 Fund structure
The Foundation was created by the Mosi Noble Ivy Duche￿ of Portland by Trust Deed dated 26 January 1978
as a single charitable fund with the Trustees having the power to hold the capital 8nd income of the trust
fund in trust 10 apply the same as they shall at their absolute discretior) think fit.
By Deeds ol Variation of the Will of Lady Anne Bentinck dated 27 November 2010 and 26 December 2010,
various paintings and works of art were bequeathed to the Foundation to hold as part of the single charitable
fund on the terms set out atNJve.
Income and expend1ture is recognised on an acciuals basis. The following specific policies are applied to
particular categories of.
Income
Dividend income is recognised when the security is quoted ex-dividend.
Incoming resour￿$ from charitable trading activities are accounted for when earned, rernt81 income Is
accounted for in the period lo which it relates.
Grants and donations are recognised once the charity Is entitled to recèive them and there is suff i-
cient evidence that any attached conditions will be met.
Expenditure
All Costs are allocated between the expenditure c8tegories of the Statement of Financial Activities on
a basis designed to reflect the use ol the resource.
18

1.4 1,. ,Igible fixed a53f l-
Equipment purchased for use In the crafi workshops and gallery office equipment is capit81ised and
depreciated by equal instalments over a five year term.
The Portland Collection building is depreciated by equal insr8lmenis over a 50 year period. while the fixfuies
and fittings are depreciated In equ81 Inst81ments over a 20 year period. The Harley Gallery and the craft
workshops have been fully depreciated.
Capital expenditure incurred on improving leasehold property is capitalised and included as fixed assets. It
is then depFeciated by èqual Instalments over the length of the lease.
Exhibits purchasecl for the Harley Gallery are charged In the year they are purchased ag 8 direct cost in
accordance with the accounting praciice adopted by Museums
..Iiid Inve:-
I'li.Iil Inc.omi:
The Foundation's f[￿hold Interests in farm land and buildings are included as invesrment properties. These
pioperties are revalued annually and are included in the Balance Sheet 8t their open market valuè (fair valuel
In accordance with FRS 102.
Investments listed on a recognised Stock Exchange and other ready fealisable investmenrs are valued at
their mid-rnarkèt price prevailing at the Balance Sheer date. Profits or losses on sales of investments and net
gains on revaluation of investments are credited to the Statement of Financial Activities.
Investmenrs in subsidiaries are Included at cost less provision for impairment.
1.6 Current asset investments
Current asset Investments are held at the Trustees. best estimate of market value. Realised and unrealised
gains andlosses are included in the Siatement of Financial Activities.
1.7 Taxation
As a charity. The Harley Foundation is exempt from tax on Income and gains falling within part 10 ol the
Income Tax Act 2007 or section 256 of the Taxation ol Chargeable Gains Act 1992 to the extent that these
are applied to its charitable objects. No tax charges have arisen In rhe Foundation.
1.8 Key sources of estimation uncertainty
The valuation ol investment property is a source of estimation uncertainty, as It is subiective and liable to
change due to demand and market conditions. The carrying amouni is detailed in noie 8.
1.9 Government grants
Government grants are recognised in other operating income in the period In which the company is entitled
to receive payment.
19

Investment income
2023
2022
Income from tradeab￿ investments
Rent receivable
303.698
91.081
266,829
87,122
394,779
353,951
Investment management fees totslling £2.449 (2022: £2254} re￿te to the Foundation's investment property.
20

Analysis of Charitable income and expenditure
Craft
workshops
Galleries
Grants
Total
Year ended 31 March 2023
Income
Sales arid charges
Grants and donations
29,708
30.786
61,403
91.111
30.786
60.494
61.403
121.897
Expenditure
Direct Costs
1146.5631
1294.2071
1323.3751
1214.8741
1172.7771
1146.5631
1343.6561
1331.6061
1214.8741
1172.7771
Staff costs
149.4491
18.2311
Premises costs
Depreciation
Oiher cosrs
11.151.796)
157.6801
11.209.476)
Net {deficit}1surplus for the year
11,091.3021
3,723
11,087,579)
Year ended 31 March 2022
Income
Sales 8nd charges
Grants and donations
15.385
60.375
75.760
13.881
13,881
29.266
60.375
89.641
Expenditure
Direct costs
194,3411
1292.6201
1259.6731
1215.4271
1145,8131
194.3411
{297.1251
1267.9041
1215.4271
1146.7481
Staff costs
{4.5051
18.2311
Premises costs
Depreciation
Other costs
19351
11,007.8741
113,6711
11.021,5451
Net Ideficitllsurplus for the year
1978.6081
46.704
1931.9041
21

Support and governance costs
Auditor's remuneration
2023
2022
Fee payable lo the auditor for the audit ol the financial statements
Fees payable to the auditor for other services
6.750
6.300
The above costs are the only support and governance costs incurred during the year. The costs have been
allocated to the Galleries. activiiy as the amount allocated to any other 8clivities would be Immateri81.
Staff costs
2023
Number
2022
Number
Full time
Part time
16
15
19
17
2023
2022
Staff costs (for the above persons)..
Wages and salaries
Social security costs
297.878
259.089
25.690
21.043
Pension costs
13.921
12,520
Staff allowances
6.167
4.473
343.656
297.125
Duriro the year. one employee12022.. one) received emoluments of between É80.000 and £90.000 and
the Foundation made pension contributions of £8.020 12022.. £7.6001 In respect of this employee.
The Foundation paid rnanagernenl lees to The Welbeck Estates Company Limited as detailed in note
13.
Key management personnel includes the director. The total emoluments of key management
personnel of the Foundation was £80.180 12022.. E76,0001.
Other income
2023
2022
Government grants
89.277
89,277
22

Tangible fixed assets
Leas&￿Id
Property
WoTkshops
& galleries
Plant and
machinery
Equipment
Total
Cost
At1 April 2022
Additions
Disposals
68.601
10.603,199
171,575
807
18851
75,756
10,919.131
807
18851
At 31 March 2023
68.601
10.603.199
171.497
75.756
10.919.053
Depreciation
At 1 April 2022
Charge for the year
Disposals
8.443
1.055
4.361.509
192.755
148.721
7.177
1486)
37.039
13.887
4,555,712
214.874
14861
At 31 March 2023
9.498
4.554.264
155.412
50.926
4.770,100
Net book value
At 31 March 2023
59.103
6.048,935
16,085
24.830
6,148.953
At 31 March 2022
60.158
6241.6
38.n7
6,363.419
23

Fixed asset investments
2022
Freehold investment properties
4.TA5.000
4,355.000
Tr8deable investments
12886.130
12,072,407
Investment in subsidiary
200.100
130,000
17,861230
16,557.407
Freehold investment properties
Market value at 1 April 2022
4.355.OQX)
4.1CK),000
Revaluation gain in the year
420,OCQ
255,000
Market value at 31 March 2023
4.775.000
4,355,000
Historical cost at 31 March 2023 and 1 April 2022
784,131
784.131
The investment properties were valu￿1 by the trustees in o)nsultation wfch an external real estate servi
provider.
2023
2022
Tradeable investments
Market value at l April 2022
12.072.407
8,138,313
Additions
1284,739
3.225.000
Revaluation Iloss)Igain in the year
1471.0161
709,074
Market value at 31 March 2023
11886,130
12,072,407
Historical cost at 31 March 2023
12.729.984
11,454,984
The Foundation's tradeable investments (x)mptises a hdding of 510.97112022.. 510.4521 units in COIF CFkgritES
Investment Fund Inwme Unf(s and 912.976 (2022: 555.3841 sFk3res in The Ord FurKI ICVC.
24

2023
2022
Investment in subsidiary
Carrying value at l April 2022
130.000
130,000
Reversal of Impairment
70,100
Carrying value at 31 March 2023
200,100
130,000
The Investment in subsidiary represents a 100% holding in Harley Gallery Trading Limited. a company which
carries out tr8ding 8Ctivilies pieviously carried out by the Foundation (see also note121.
Debtors
2023
2022
Trade debtors
Other debtors
Prepayments and accrued income
18.593
68.830
149,387
9.356
72.869
149.390
236.810
231.615
io
Current assei investments
2023
2022
Works of art
Market value at l April 2022
Disposals - revalued amount
70.650
4.704.650
14.634.000)
Market value al 31 March 2023
70.650
70.650
Creditors
2023
2022
Trade creditors
Other creditors
47.578
75.764
29.997
38.083
170.464
The Welbeck Estates Comp8ny Limired
28.367
151,709
238.544
25

12
Tru%toe remuner81ion and related partv transactions
No Trustee received any remuneration or reimbursement for expenses in the period12022.. £nill.
Two of the Trusteès ale directors ol The Welbeck Estates Company Limired I'the companv"). During the
period. the Foundation was charged £19.80512022.. £19.7341 in lent and £85.65212022.. £72.0601 in man-
agement charges and insurance cosis. These transactions were carried out on an aims-length basis. The
company also paid expènditure on behalf of thè Foundation. The balance outstanding al Ihe period end is
shown in note 11.
The Harley Foundation owns 100% of the share capiial of Harley Gallery Trading Limited 1.the company").
During the period. the company paid rent of £15.32212022.. £13.7561 to rhe Foundation The Foundation
advanced loans lo and paid expenses on behalf of the company of £226.04012022. £135.1451 The Foun-
dation received funds on behalf of and repaynienls from the company of £231.90012022.. £167.9751. The
company also made a dor)8tion to the Foundation of £42,34912022.. £nill. At rhe balance sheet date the
amount due from the company was £68,83112022.. £74.6911
13
Financial instruments
2023
2022
Financial assets that are tradeable Investments measured at fail value
through profit or loss
Financial assets that are debt instruments at amortised cost
12.886.130
12.072,407
326.820
2.127.481
Financial assets that 8re equity instruments measured at cost less
impairment
Financial liabilities that are debt Instruments measured at amortised
cost
200.100
130.000
1145.4781
1233.1561
13.267.572
14,096,732
26