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2021-03-31-accounts

BFI Annual Report and Financial Statements 2020-2021

BRITISH FILM INSTITUTE Group and National Lottery Annual Report and Financial Statements for the year ended 31 March 2021

Presented to Parliament pursuant to Section 34(3) and 35(5) of the National Lottery etc. Act 1993 (as amended by the National Lottery Act 1998 and the National Lottery Act 2006).

Ordered by the House of Commons to be Printed on 16 December 2021.

Presented to the Scottish Parliament pursuant to the Scotland Act 1998 Section 88 Charity Registration no: 287780

HC 946 SG/2021/353

© BRITISH FILM INSTITUTE (2021)

The text of this document (this excludes, where present, the Royal Arms and all departmental and agency logos) may be reproduced free of charge in any format or medium providing that it is reproduced accurately and not in a misleading context.

The material must be acknowledged as British Film Institute copyright and the document title specified. Where third party material has been identified, permission from the respective copyright holder must be sought.

Any enquiries regarding this publication should be sent to us at: customerfeedback@bfi.org.uk

ISBN 978-1-5286-3113-6 E02703243

You can download this publication from our website at www.bfi.org.uk.

CONTENTS Purpose. Mission and Values Chief Executive's Report Future Audiences Page 6 Page 7 Page 9 Page 18 Page 25 Pagè 29 Page 33 Page 35 Page 40 Page 42 Page 49 Page 56 Page 57 Page 60 Page 66 Page 69 Page 74 Page 80 Page 91 Audiences around the UK Our moving image heritage Future learning and skills A champion for talent Supporting the future success of UK film On the international stage Leadership and Advocacy Fundraising and Philanthropy Business operations Key Performance Measures Financial Review Public Benefit Environmental Sustainability How the BFI is Governed Remuneration Report Corporate Information Governance Statement Page 92 BFI GROUP AND CHARITY FINANCIAL STATEMENTS Statement of Governors and Accounting Officer's Responsibilities Independent Auditors Report BFI Group and Charity Financial Statements Page 100 Page 103 Page 108 NATIONAL LOThERY FINANCIAL STATEMENTS Statement of Governors and Accounting Officer's Responsibilities Independent Auditors Report National Lottery Financial Statements Page 147 Page 148 Page 153 STATUTORY BACKGROUND Page 185

PURPOSE, MISSION AND VALUES

The BFI is a Royal Charter Charity that was established in 1933.

Purpose

We believe society needs stories. Film, television and the moving image bring them to life, helping us to connect and understand each other better. We share the stories of yesterday, search for the stories of today, and shape the stories of tomorrow.

Mission

The BFI is a cultural charity, a National Lottery distributor, organisation for film and the moving image. Our mission is:

Vision

We will transform access to our programmes, screen culture, and jobs by

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CHIEF EXECUTIVE'S STATEMENT

I write this introduction against a backdrop of the BFI London Film Festival in October 2021 which, although technically out of scope for this 2020/21 annual report, has seen a remarkable return to capacity audiences for film screenings as we all enjoy the wonderful communal experience of cinema once again.

This experience could not have been in sharper contrast to the period covered by this report.

I took up my role as Chief Executive in February 2020, just three weeks before the first lockdown. Cinemas went dark, film and TV production shut down, a significant workforce and community of talented and creative individuals were immediately unable to work or earn a living.

Our first reaction was to work with our funded partners and the wider sector to identify what support was needed: we repurposed £4.6 million in National Lottery funding to support exhibitors, freelancers and producers; we convened a Screen Sector Taskforce with some of the most experienced individuals from across film, TV and video games to develop solutions with Government to help the sector get back on its feet. We were successful in achieving a number of policy interventions working in collaboration with Government, such as the Film and TV Production Restart Scheme, which enabled productions to get back up and running safely and quickly and ensured the financial security of hundreds of cinemas across England which faced a devastating and uncertain period of closure.

It was clear from the start of the pandemic that the Department for Digital, Culture, Media and Sport and HM Treasury were committed to taking far-reaching measures to protect the sector, through support interventions such as the Cultural Recovery Fund and UK Film & TV Production Restart Scheme. The challenges were not insignificant, but many of my colleagues and partners worked at speed to ensure that this Government support reached independent cinemas, productions and individuals within the industry quickly.

It is impossible to underestimate the impact of Government support during this period. hardaudiences and a multi-billion pound contribution to our economy. That these effects were avoided speaks volumes about how highly the industry is valued both economically and culturally, and I am hugely grateful to our Ministers, their advisers and the policy officials for their unwavering support during this period.

I must also express my thanks to my BFI colleagues who adapted so quickly to the circumstances of lockdown and went on to show incredible levels of ingenuity and determination to keep as many of our activities going as possible and to support our sector. I must make particular mention here of the BFI Player team who reacted fast to

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ensure that we could still satisfy the demand of audiences unable to visit the cinema, through providing capacity and access online.

I am also personally very grateful to the support shown by our Board of Governors throughout these turbulent times. 2020 at which point the role of Interim Chair passed to Pat Butler. Both provided extraordinary stewardship throughout a very difficult period. The terms of a number of Governors, including Pat Butler, Pete Czernin, Jonathan Ross and Andrea Wong, also came to an end during this period. We are indebted to them. Moving forward, the continued support of our Board, under new Chair, Tim Richards, will be invaluable .

As an organisation, we are emerging from the pandemic as an infinitely more agile, interconnected organisation. We worked closely with colleagues across the BFI to determine a new vision for the BFI and the culture that will get us there. This is the beginning of a period of transformation of the BFI. Supported by the Board, we are looking forward to focusing on audience diversity, embracing television and games in our work, reframing digital platforms, and working with the industry to develop and deliver long-term strategies for education, skills and net zero.

A first step in delivering this vision, will be a consultation on our priority areas for the broadly with stakeholders, industry and the UK public in establishing shared priorities for the screen sectors, including film, TV and games. There is much to be optimistic about. Film, TV and the screen industries have evolved and we are seeing good signs of the sector bouncing back to pre-pandemic levels. We have learned a great deal and intend to take this forward in our future planning.

Perhaps the greatest learning has been the audience reaction how people have coped with unprecedented change to their lives, to loneliness, to mental and physical stresses. better placed now than ever before to transform access to our screen culture and facilitate the telling of these stories throughout the UK.

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FUTURE AUDIENCES

A rich cultural programme for all

The year had a dramatic impact on our public programme on the big screen, on our preservation and digitisation plans for the national collection of film, television and the moving image, and on our support for research access. However, while the impact of COVID-19 has been considerable, not the least on our income, it has also challenged us to find new routes to audiences and to be innovative in our thinking. Audiences turned to film and television to entertain, inspire, and console during the year, especially through video-on-demand services.

As BFI Southbank and the hundreds of cinemas, arts venues, and film clubs we work with to reach audiences UK-wide were either shut or operating under severe restrictions during the past 12 months, we focused on boosting our online activity across every area of our public programme, with transformational results.

We invested more in new film collections for BFI Player, seeing significant audience growth both for free and paid viewings, and brought our events and discussion programme to bfi.org.uk and the BFI YouTube channel, making our cultural offer fully accessible across the UK for the first time online. Our annual audience increase saw a dramatic rise, with free collections on Player up by 20%, and paid subscription views up by an incredible 278% from the year before. Altogether there were 2.7 million views of the films on offer, and a further five million on BFI social media channels.

Watching films online had not been an element of the festival model for the BFI London Film Festival, but the challenges of 2020 led to the most widely accessible LFF ever, with 141,000 ticket sales for both socially distanced cinema screenings and virtual screenings, across the UK. The events and talks programme was delivered digitally for the first time ever, achieving nearly 175,000 engagements during the 12 days of the festival.

seen annual sales of DVDs drop by 25% over the last decade, the lockdown encouraged audiences to add high quality BFI releases to their film collections. BFI DVD had its most successful year since 2016 17, with the 1987 film having its world premiere in a limited edition digi book pack, and 6,000 people opting to buy it in the first two days of release. Strong releases such as the 50th anniversary celebration of Play for Today Volume One, in partnership with the BBC, contributed to over 200,000 units sold, and an 18% growth in revenue. This, along with 5,000 enquiries to our archive footage sales team, now licensing material as varied as Everest and climate change, and the pioneering work of animator Lotte Reiniger, significantly helped with income streams.

A key element of growing engagement and broader access to a national collection and public programme is offering interpretation and knowledge to support understanding and enjoyment, and creating metadata for audiences to find what they want. The

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Collections Information Database offers online access, with the BFI Reuben Library and Mediatheque both providing in-venue access to hard copy information and associated materials which have yet to be digitised, such as posters, diaries, company papers, conference papers, and designs. Usually around 100,000 researchers and members of the public browse our collections each year. This year our Library team worked hard to safely re-open the Library in September, with 215 researchers immediately booked in, before the second lockdown closed it again.

Editorial online has been in demand. Lockdown shut off Sight & Sound to market on the news stand, but having already demonstrated an ability to adapt to the COVIDBulletin we again modified our approach and we currently have the highest-ever number of digital subscribers and the highest combined print and digital readership for over three years. Our publishing partnership with Bloomsbury has resulted in a refresh of BFI Classics, offering readers a great introduction to a wide range of classic films.

The renewed urgency of the global Black Lives Matters movement in 2020 prompted us to make new commitments to accelerating meaningful change in recruitment and partnerships, and to ensure that our acquisitions to the national collection and our public programme better reflect our nation. We are also acquiring UK online videos that best represent the impact of Black Lives Matter. We are working in partnership with the Black Cultural Archives on preservation solutions for films they have acquired, and to benefit from their skills and knowledge in shaping BFI acquisitions into the national collection.

A powerful highlight of our COVID-19 year was These Are the Hands. Working with the Event and Visual Communication Association (EVCOM), the BFI National Archive coproduced a new short film to help raise funds for the NHS Charities Together appeal. A oquent short film combines a selection of extracts of films about healthcare and the NHS preserved by the BFI National Archive, with new footage of NHS workers currently on the front lines of the COVID-19 crisis. It is a shining example of the power of film.

PROGRAMME HIGHLIGHTS

JAPAN 2020

Our annual blockbuster project was to have been delivered in partnership with venues UK-wide but we worked quickly to offer it exclusively on BFI Player . The full cinematic experience was offered in Autumn 2021. With a landmark collection of over 120 cultures, from influential classics from Kurosawa to Mizoguchi and Naruse, to bizarre cult films, hidden gems from beloved directors, new films by Japanese women filmmakers, and beautifully animated family favourites. This extensive collection proved hugely popular with an incredible 367,000 views.

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Our events strand, BFI at Home, offered a wide range of interviews with Anime viewed 8,000 times. On DVD, Japan 2020 releases were a success with audiences, with strong sales for Flavour of Green Tea Over Rice

units, Funeral Parade of Roses (Toshio Matsumoto, 1969) selling more than 2,200 units, and our Takeshi Kitano box set reaching nearly 3,000 units.

Female desire on screen

This series spotlighting women filmmak

Bound (Lana

Wachowski, Lilly Wachowski, 1996) and The Watermelon Woman (Cheryl Dunye, 1997). The films received over 10,000 views, with audiences averaging much longer times reading the online contextualising notes than we usually see.

Women Make Film

epic celebration of women filmmakers Women Make Film on BFI Player in weekly instalments, and on a four-disc blu-ray box set. Many of the films referenced in the documentary have been neglected and not available to contemporary audiences, and we are presenting work from the great Czech New Wave director Vera Chhytilova, beginning with Something Different (1963), followed by a reappraisal of the work of Márta Mészáros and Larisa Sheptiko.

Black Lives Matter

our existing channels to celebrate Black moving image culture in Who We Are, a series of online events and film programmes designed to spark debate about Black British film. S.O.U.L. FEST screened on BFI Player and YouTube, and in September, with the brief opening of BFI Southbank, our re-opening season, curated by African Odysseys, was Injustice with films and events. Redefining Rebellion curated by writer Kaleem Aftab, contextualised our 25th anniversary re-release of La Haine (Mathieu Kassovitz, 1995). on his own career and on his latest film, Mogul Mowgli. Over 25,000 young people saw the film in cinemas, 4,500 online, and 3,000 bought the DVD. The August issue of Sight & Sound focused on Black filmmaking talent, with features on Michaela Coel, and the Black Film Bulletin.

Wong Kar-Wai

We launched a full retrospective of the iconic and influential Hong Kong director online, making new restorations available for the first time and providing a rare opportunity to explore Wong Karwork on a streaming platform.

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Britain on Film

For Britain on Film, the free element of BFI Player, we created new online collections that responded to the moment we were living through including a selection of films to share with children aged five and under; a focus on films showing the work of key workers from nurses to farm workers to teachers to refuse collectors; and cats v dogs. restorations of late Victorian 68mm films (the IMAX of their day) with new restorations by Eye, Amsterdam, were all made available for free on BFI Player. These joined the 11,000 titles from the BFI National Archive that we already have made free to audiences across the UK, which to date have had 82 million unique views since launching three years ago.

Our restorations of The Epic of Everest (1924) and Shiraz: A Romance of India (1928) with filmed introductions from our curators, were streamed worldwide as part of our contribution to the We Are One Global Film Festival in the Summer. Shiraz had 30,000 unique views and The Epic of Everest 17,150.

Context and interpretation

Giving audiences the chance to explore further, the BFI AT HOME team produced over 100 online events under lockdown, hosted on the BFI YouTube channel, engaging audiences in a national conversation around screen culture, and showcasing filmmaking and acting talent. These included a critical dissection of the Netflix hit Bridgerton with IV crisis drama , and Asif Kapadia paying tribute to Irrfan Khan.

In July Sight & Sound launched a second print title, The Auteurs Series, focussing on the career of Jean-Luc Godard. With editorial drawn exclusively from the Sight & Sound archiv and reviews in a meaningful way, giving the public access to this rich and sometimes forgotten material, while also creating a new revenue stream. Audiences for its online content have never been bigger. Following the relaunch and redesign in 2021 we are ambitious to further increase our readership and engage audiences with great writing.

Contemporary film

In lockdown we have focussed on releases of contemporary films that portray different perspectives on British life and identity, offering exclusive releases on BFI Player: Fyzal Lynn + Lucy (2020) for example opened with 13,500 views and to widespread critical acclaim, and Riz Ahm Mogul Mowgli (2020) was released briefly into cinemas for five days before moving quickly online when the UK was locked down for a second time. In this short period the film did well across 92 cinemas UKwide, and has proven a streami County Lines has been the most successful Premium VOD title BFI Player has hosted to date.

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BFI Festivals

BFI London Film Festival

Although we present new films and previews year round, the festival is our shop window for contemporary filmmaking, not only offering audiences the chance to see films first, but also to see films they will never otherwise have the chance to see in the UK. Even in the 2020 reduced offer, 41 countries were represented in the programme, with around 40% of the features directed or co-directed by women.

Responding to COVID-19 resulted in changes that meant we had the most accessible ever BFI London Film Festival, in partnership with American Express: 58 features received virtual premieres available anywhere in the UK; 45% of the audiences for the virtual screenings and events were from outside London; and 16 films received cinema premieres at BFI Southbank and 12 partner cinemas in London, Glasgow, Sheffield, Manchester, Bristol, Cardiff, Nottingham, and Belfast. This success story was repeated in 2021.

LFF 2020 opened with the international premiere of Mangrove (2020), the first of Steve premiere of Fran Ammonite (2021). There were 56 other feature films, three television projects and 57 short films from established and emerging talent.

The LFF welcomed more than 2,000 delegates to its Industry & Press programme, which this year was exclusively online, with an increase in delegates from outside London from 10% in 2019 to 27% in 2020.

BFI Flare: London LGBT I Q+ Film Festival

With BFI Flare, a showcase for the best new LGBTIQ+ cinema from around the world, we learnt very quickly in the first lockdown in 2020 how to mount our festival online. The 35th edition in 2021 built on this, with a virtual festival of 25 feature films via BFI Player, available for ticket holders UK-wide to watch at any time during the 12 days of the festival, and 35 short films available for free. Five Films For Freedom, in partnership with the British Council, made five LGBTIQ+ themed short films available to watch worldwide for free.

Accessibility

National Lottery investment allowed us to create closed captioning, subtitles, and audio description, and post-festival surveys demonstrated a corresponding increase in audiences who self-assess as having a disability, from 11% to 17%. We are considering how to make this possible more regularly.

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Interactive

In creating programmes across the range of moving image experience, we have experimented in the last three years, both in venue and in public spaces with partners, to present new forms of VR and XR works This year, with National Lottery support, we were able to mount our first immersive programme as part of the BFI London Film Festival LFF Expanded.delivered in partnership with the National Theatre. The programme featured virtual reality, augmented reality, mixed reality and live immersive performance, showcasing

free to access to UK and international audiences for the duration of the festival, and seen by more than 16,000 people from home and at BFI Southbank. We will be seeking to include such works in our year round programme in venue and online.

We also took part in the creation of new interactive works, for example working with the V&A on their new VR exhibition, Alice: Curiouser and Curiouser, which incorporated the earliest film adaptation of Alice in Wonderland from 1903, restored in a tinted version by the BFI National Archive. Audiences were able to join the event as avatars and a VR

International programme

With the rest of the world closed, we had a hugely reduced programme with partners worldwide. Two highlights were:

Japan

With the National Film Archive of Japan we presented a programme drawn from the -out screenings of Picturesque Japan in the Meiji Period took place at NFAJ for UNESCO World Day of Audiovisual Heritage in October 2020, with live music and lectures, and further screenings around Japan in venues such as the Museum of Modern Art in Kyoto.

Wor Kaguya-Hime (1935) for the National Film Archive of Japan, who have no materials themselves. This is the first considered a pioneer in animation. The print will be donated to the NFAJ in 2021.

BFI in Bologna

Able to travel in September, we presented 18 films from our collection, including recent restoration Love, Life, Laughter (George Pearson, 1923) as part of Bologn Ritrovato house Teatro Comunale.

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DIGITAL AND VENTURES

BFI Player

Record-breaking growth on BFI Player saw huge increases in both our audience engagement and income, with revenue doubling from the previous year and viewing figures for feature films reaching 2.7m an increase of 165%. Engagement with our free-to-view archive service remained strong, with over 1.2 million views in the year. BFI Player content is available on our online platform and as a subscription channel on Amazon Prime and Apple TV. The launch of BFI Player Classics on Apple TV in the US in August was followed by the debut of our direct-to-consumer platform in the US, bringing BFI Player Classics to customers on the web, personal devices and smart televisions.

As part of our work in delivering the first-ever hybrid version of the BFI London Film Festival, with the full programme of features and shorts available online alongside a traditional cinema offer, we brought together three platforms BFI Player, bfi.org.uk and YouTube to create a complete at-home festival experience. Free-to-access productions and events were also available on YouTube to maximise audience reach. From its programme launch in September until the end of the festival, the online programme reached 370,000 unique users. On BFI Player, 54 feature films were viewed 25,000 times and the free-to-view shorts had 29,000 plays.

Digital publishing

We developed and relaunched our primary public website bfi.org.uk in August 2020, incorporating new content design standards and readability guidelines to ensure all pages are accessible and inclusive to all. With more than 5 million unique users in the UK and 13 million worldwide, the website is the most commonly used point of access for consumer, industry and education audiences. Top new series on bfi.org.uk during lockdown included:

BFI YouTube

YouTube is an important broadcast medium for BFI content and this year our channel saw subscriber numbers rise by 123,000 to a total of 360,000, with a record 48.8 million views. With many people unable to visit cinemas in lockdown, we reached new 4, Netflix and Sky to produce events enjoyed by thousands of viewers. We also paid tribute to the

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YouTube in which key workers from across the UK talked about the films, TV and games they were watching when not keeping the country running.

Ventures

The impact of COVID-19 made for a difficult trading climate for our Ventures business in the first two quarters. However, the second half of the year saw Ventures strike new partnerships with brands and organisations, expand our skills training, IP and content slate and build on our BFI license offer and wider partnerships with universities across the UK.

These activities have generated £0.6m in revenue and, with our strengthened portfolio, established partners and new expertise in delivering courses and building relationships digitally, we are in a strong position for future growth. Ventures highlights included:

Consultancy: Singapore Media Development Authority

After a successful consultancy period, we delivered two milestone courses addressing the key areas identified for investment; a digital masterclass to upskill marketing/comms successfully delivered online.

Skills & training: World Association of Girl Guides, supported by Dove Skincare We delivered a Filmmaking for Advocacy course which saw 15 young women leaders from 12 different countries with no filmmaking experience learn to use film to communicate and advocate for the issues important to them.

BFI Player: University partners and institutional license

We have developed an institutional license model for BFI Player and are currently partnered with 14 universities including Birmingham City, Manchester, Ravensbourne and the University of Glasgow. The arrangement gives student access to BFI Player and bespoke projects including: BFI lecture series, secondments and work placements, codesigned curriculum and short courses, Sight & Sound magazine, BFI London Film Festival accreditation, BFI publishing projects and funded research opportunities.

Skills & training: Courses in association with the Chartered Institute of Marketing We have a partnership with the Chartered Institute of Marketing to offer two accredited filmmaking and editing courses for marketers.

Consultancy: Google

We delivered an editorial consultancy providing a list of the 50 most rewatchable films from the last 50the Google Pixel 5 in November 2020 users could discover and download the films on Google Maps.

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University

In partnership with London Southbank University, we can now offer a Craft Skills internationally next year.

Film sales

Film sales had a very successful year, with revenues up £60k on last year to £258k. The growth was driven by new partnerships and channels for our content, including a partnership with fashion brand Bottega Veneta and deals with several education platforms.

Publishing

We are now in the third year of our partnership with Bloomsbury with 15 new books in our Film Classics range published this year, and just over £44k in sales income. The focus for next year is broadening our publishing to reflect our output and audiences and to increase the diversity of the voices we publish.

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GROWING AUDIENCES ACROSS THE UK

Supporting the exhibition and distribution sector in the time of crisis

We are committed to giving everyone, regardless of where they live in the UK, the opportunity to enjoy the richest and broadest range of great UK and international filmmaking. Awarding funds from the National Lottery, the BFI Audience Fund supports projects which build larger and more inclusive audiences, onscreen and in the workforce, and a thriving cinema exhibition sector.

With cinemas closed for much of the year, we wanted to provide audiences with great cinema, in a format they could watch, and in spite of the pandemic. We also wanted to support exhibitors to reopen their venues when restrictions allowed, as well as to help our partners find new and innovative ways to reach broader audiences and to get films to them.

In the face of the immediate loss of box office ticket revenue and with large buildings still to maintain, venues which usually received year-round Audience Fund awards could instead request flexible payments to help with short-term stability until the course of the pandemic became clearer and longer-term support became available.

A much bigger intervention which has enabled independent cinemas in England to weather the impact of national closure restrictions and restricted audience capacities to 57bn Culture Recovery Fund for cultural, arts and heritage organisations launched in July 2020. We administered an allocation on behalf of the DCMS with two rounds of funding ensuring £27.6 million of grants were awarded to 209 independent cinemas across the country by the end of the financial year.

Other exhibition organisations we fund also adapted quickly to the new landscape, moving their initiatives online and shifting their focus towards helping venues and film organisations through the crisis. Cinema For All successfully ran its community cinema courses online and helped its member organisations switch to running online screenings. The Independent Cinema Office (ICO), with BFI support, similarly shifted its exhibitor activity online, including its popular Screening Days and training. The ICO not only provided essential and updated information and resources on all aspects of the COVID-19 restrictions relevant to exhibitors, but through regular surveys and research with exhibitors, it built an accurate picture of the impact of the lockdowns on the sector and what was needed to help venues and other organisations begin to recover.

This was the first year we had allocated Audience Fund year-round organisational awards to distributors to help them develop cross-release strategies to reach wider audiences. Because of the pandemic, the awards made to Altitude Film Distribution, Peccadillo Pictures and Dogwoof enabled them to continue releasing much-needed new content for cinemas when they were open as well as greater choices for audiences both in-cinema and at home.

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The Audience Fund also awarded Dogwoof £40,000 to help the theatrical release of the documentary MLK / FBI (Sam Pollard, 2021) reach young and diverse audiences, and especially Black audiences though partnerships. When cinemas shut again in December, we supported the shift to a VOD-only release. We also supported the Kino Klassiki programme when it shifted its proposed UK-wide cinema tour to online-only, bringing rarely seen comedies from Russian, the Caucasus and Central Asia to audiences for free.

Flexible funding arrangements have helped festivals and other audience outreach initiatives to adapt to the new environment. They included the Birmingham-based Flatpack Festival, MASSIVE, the youthReclaim the Frame, who all moved online with expanded offers, screenings and promotions. The London Indian Film Festival received £62,000 to raise the profile of South Asian cinema and engage diverse audiences in its high quality programme via a new online platform across its usual festival dates and a small in-venue programme in September. An award of £40,000 to Berwick Film and Media Arts Festival (BFMAF) supported an online edition of the festival which will now look to develop a new programme of year-round activity. Amplify!, a new online festival created by the coming together of Bath Film Festival, Cambridge Film Festival, Cinecity (Brighton) and Cornwall Film Festival, received £20,000.

New release initiatives supported by the Audience Fund, and increasingly reflecting a new hybrid approach as the COVID-19 restrictions changed, included awards to:

The enforced shift online for many cinema activities has resulted in increased UK-wide access for audiences, additional content and greater accessibility through subtitles and audio description. The changing economics and structures of the exhibition and distribution sector has also led the Audience team to reflect on broader issues of access to remove barriers to inclusion, both for audiences and those working in the sector, as well as the diversity of projects we support, and to make changes in how the Audience Fund is presented, to be more open and to reach organisations and initiatives sharing our aims. The BFI Diversity Standards encourage the organisations we work with to include employment, training and professional development opportunities as part of their projects. We will engage with our applicants to commit to more in their proposals, especially for mid- and senior-level development initiatives. We are proud to support the -representation in the workforce at entry-

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level, and we want to support more projects developing people at the mid-point of their careers.

BFI Film Audience Network

Supported by National Lottery funding, the BFI Film Audience Network (FAN) is a collaboration of eight Film Hubs, managed by leading film organisations and venues across the UK, with an underpinning commitment to equality, inclusivity and accessibility. We now have more than 1,500 members, including cinemas, festivals, multi-arts venues, community cinemas and film archives, who are at the heart of our strategy to build larger and more diverse audiences for UK and international film and a thriving cinema exhibition sector.

This year has been a significant challenge for all film exhibitors. Venue closures and event cancellations have impacted not only the financial security of FAN member organisations, but also the community of audiences they serve. As a network with UKwide coverage, FAN was well placed to deliver a package of support which would speak directly to the needs of their members and their audiences.

Our first key intervention was the BFI FAN COVID-19 Resilience Fund. A total of £1.3 million of National Lottery funding, plus a £150,000 contribution from the Mayor of to those in critical financial need as they continued to face months of closure and uncertainty. The Fund supported 130 FAN members with awards ranging from £415 to £23,000. The administration and delivery of the Fund through FAN underlined the time of crisis. throw us a financial lifeline. It connected us back to the big picture, reminded us we ve us the breathing space, and the confidence, to plan our way

Our second key intervention was to support online film exhibition activity. While the focus of FAN remains the big screen collective experience, there were some immediate benefits to the move online forced by the pandemic, and our funding streams adapted to reflect this. For example, disabled audiences for the annual UK-wide film season Film Feels: Connected increased to a record 12%, from a previous high of 8%, after project lead Film Hub Midlands moved the programme online, clearly demonstrating the benefits afforded by digital access. It also encouraged FAN members to develop new new ideas and has contributed to longFilm Feels: Connected demonstrating the potential of the online space to grow audiences for the big screen experience when venues re-open.

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Our BFI FAN Film Exhibition Fund (which is part of the Audience Fund) was established initially to boost cultural programming and activities which sought to engage diverse audiences as lockdown restrictions eased. The Fund awarded £657,886 to over 140 FAN members, ranging from community cinemas to film festivals, to support both physical and online activity. However due to the ongoing pandemic, we estimate that 73% of these projects will be delayed until the next financial year.

FAN connections strengthened throughout this year of the pandemic as members connected more frequently, offering support and sharing resources particularly as activity moved online. The annual film exhibition conference This Way Up, a FAN-led initiative coordinated by Film Hub Scotland, took place online in December with 700 participants, and 52 speakers and industry leaders presenting over its three days.

Hubs in England also provided vital support to the roll-out of the Culture Recovery Fund promoting it to their members, encouraging them to apply and offering advice to venues less familiar with the funding application process.

BFI FAN selected partner highlights

Film Hub London

Hub Lead Organisation: Film London Cross FAN lead for Young Audiences

Film Hub Midlands

Hub Lead Organisation: Broadway, Nottingham in partnership with Flatpack Projects, Birmingham

Cross FAN lead for Major Programmes

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Film Hub North

Hub Lead Organisations: Showroom Workstation, Sheffield and HOME, Manchester Cross FAN lead for Screen Heritage

Film Hub NI

Hub Lead Organisation: Que

Cross FAN lead for Non-theatrical Exhibition

Film Hub Scotland

Hub Lead Organisation: Glasgow Film Theatre Cross FAN lead for Member Support and Development

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Film Hub South East

Hub Lead Organisation: Independent Cinema Office (ICO) Cross FAN lead for Data & Evaluation

Film Hub South West

Hub Lead Organisation: Watershed, Bristol

Cross FAN lead for Marketing, Communications & Audiences

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Film Hub Wales

Hub Lead Organisation: Chapter Arts Centre, Cardiff Cross FAN lead for Diversity & Inclusion

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EVERYONE, EVERYWHERE IN THE UK CAN ENJOY MORE OF THEIR MOVING IMAGE HERITAGE

BFI COLLECTIONS

The BFI National Archive collects and preserves titles and other material which reflect .

BFI collecting emphasises contemporary works, especially from UK filmmakers from backgrounds currently underrepresented in the collection in particular, women filmmakers, Black filmmakers and people of colour.

We are the statutory collector of terrestrial television output from the commercial terrestrial PSB broadcasters ITV, Channel 4, Channel 5 and we also informally collect selected material from the BBC. We are keen to broaden this now to include key works from Sky and the streaming companies. These companies are not required, as the public service broadcasters are, to provide materials and support to the BFI National and in the coming year we will prioritise acquisitions from them.

Britain On Lockdown

In April 2020 we launched a UK-wide campaign to involve the public in recommending the online videos that best represent how the UK has experienced the impact of the coronavirus. Online video has played a key role in our collective experience of the lockdown in a way never been experienced before: from keep-fit videos for kids by Joe frontline workers and local communities coming together, through to comedy parodies, public health videos about the importance of hand washing, and charity campaign films. This rapid-response collecting ensured our curators could acquire titles that have had extraordinary impact and influence, but are in danger of vanishing. If permissions from filmmakers can be agreed (legally, a signed donor agreement is needed for every online video we acquire), these videos will be preserved for generations to come. The campaign received significant press and TV coverage, including features on major UK TV news programmes.

Inclusive collections

We are acquiring UK online videos that best represented the impact of Black Lives Matter before they disappear, and we have identified a range of contemporary filmmakers whose work we will aim to acquire over the next three years. Archive information staff are augmenting our existing research relating to Black and Asian filmmaking, reviewing and reforming the cataloguing practices and standards used historically, ensuring that all work by filmmakers of colour is findable in our databases.

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Contemporary film collecting

We acquired digital cinema masters of 14 BFI Film Fund features, including Ammonite (Francis Lee, 2020), Saint Maud (Rose Glass, 2019), The Souvenir part 2 (Joanna Hogg, 2020) and Wildfire (Cathy Brady, 2020). With curators on furlough, opportunities to engage with creators of contemporary cinema were limited, but we did acquire a range of short form and online work such as to preserve artist Bill Posters Partly Political Broadcasts -synthesised images of Boris Johnson and Jeremy Corbyn endorsing each other for the premiership.

Television

Television acquisitions continued throughout 2020 and, as the national television archive (by Statute) for the UK PSB broadcasters (ITV, C4 and C5), we capture 500 television broadcasts every day, from 16 channels of free-to-view television, documented at very low quality. The BBC has its own archive, but we also work in partnership to further public access through joint initiatives. We implemented a major reform of our documentation method, and now everyone can easily search the collection. Retrospectively we select programmes that represent the rich diversity of contemporary television, preserving them in high quality broadcast standard files. Among the 240 contemporary titles selected, we preserved Sacha Baronpolitical satire Who is America? (2018), Peng Life (2018), After Grenfell: How Safe Are We? (2018), and the remarkable Letters on Lockdown (2020) series, commissioned, produced and broadcast during the first lockdown.

Retrospective collecting

With the Conservation Centre open on and off for periods under COVID-19 restrictions, we were able to acquire over 100 unique 35mm and 16mm films from British cinema history, including a full print of Adam Bede (Maurice Elvey, 1918) previously only held as an incomplete fragment. Other significant legacy television material brought into the national collection included a three-hour career interview with British cinema pioneer Ivor Montagu, previously known to survive only on VHS copies, and 800 digital video recordings of BFI Southbank events, including interviews with major figures of British film and television no longer with us, such as Ken Adam, and Earl Cameron.

Special Collections

To develop our posters, stills, and paper collections, we have sought to increase representation in front of and behind the camera in terms of diversity of gender and ethnicity. Photographic acquisitions include: Mogul Mowgli (Bassam Tariq, 2020) x14; Tenet (2020) x20; Real (2019) x 8; Steve McQueen portraits x 7; The Stuart Hall Project (John Akomfrah, 2013) x 5; Underdogs (Chino Moya, 2020) x 11; and Lovers Rock the voice of women filmmakers within Special Collections.

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Caring for the collections

Despite COVID-19 disruption and the temporary halting of our Heritage 2022 National Lottery-funded project, we maintained a skeleton team on our two sites in Warwickshire site). The Ofcom-supported ten year digitisation project to preserve heritage legacy television, was substantially interrupted in 2020. However, due to the technological advancements of recent years, the amount of preservation achieved this year was still on target.

Heritage 2022

Funded by the National Lottery, Heritage 2022 is a complex programme of work focused on safeguarding culturally significant collections at risk of loss forever. The mass digital preservation of the 100,000 most significant items, from the BFI national collection and regional and nation of the programme but this and the creation of new 35mm prints of 100 classic British and international films for presentation as originally intended by the filmmaker, have had to be put on hold. The global scale of our work makes us depend on film laboratories remaining operational in 28 countries. We were however able to create a new paper conservation studio at the BFI Conservation Centre, enabling skilled specialists to conserve rare and unique paper materials. This then enables digitisation to make them widely and easily accessible.

Archive technology

Maintaining essential technologies was a priority at the Conservation Centre during inked with technologies and equipment spanning multiple decades, from film inspection equipment to wideranging digitisation capabilities. The archive team continued R&D where possible and also re-commissioned a range of equipment for playback, film printing and processing, etc.

Conservation and collections care

In February our Conservation department was awarded £700,000 from the Arts and fund, which supports renewal and upgrade of research facilities in the sector. This very significant award will enable us to buy high level specialist equipment for the preservation, restoration and remastering of our collections, all critical to public access and research. This award will be an enduring

Organisations (IRO).

Restorations

In other restoration projects, the sound work on (Michael Powell and Emeric Pressburger, 1945) continued in collaboration with Thelma

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Schoonmaker Powell, and inspection of the Stoll Sherlock Holmes series, non-fiction Technicolor shorts and key titles from the Women Documentary Filmmakers project got underway, supported by a generous grant from The Film Foundation.

Digital preservation

Under lockdown, we digitised our paper Donor Agreements, a source of collections information as well as required legal documentation. 500,000 image files were scanned and documented - making them easily accessible for the first time. Using a new archival file format which saves us 50% in data storage we preserved 500 terabytes of digital files created from many years of film scanning.

Leadership and professional development

With our usual courses and consultancies in film archiving on hold due to COVID-19, along with participation in specialist archive panels and discussions, we moved to online video engagements including our Film Conservation Manager, Kieron Webb, The Lodger (Alfred Hitchcock, 1927), he received feedback on his exceptionally high retention rate of 97% which was a record for the

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FUTURE LEARNING AND SKILLS

Opening doors into the world of film through giving everyone the educational opportunity to build a lifelong relationship with film

Education, training and skills are at the heart of our future filmmaking talent. Our ambition is to create opportunities for every young person across the UK to engage and build a relationship with film from an early age. Given the appetite among young people for moving image, this is a prime time to amplify our work and deepen its impact so all young people are encouraged and equipped with the right information, advice and guidance to seriously consider film as a career. We continue to support those already in the industry to grow and advance their careers.

and growing demand for more people to work in every skills area. The strong recovery of our production sector in film and high-end television production in the final quarter of 2020 (with animation TV and video games less affected by pandemic working practices) saw a record spend which was sustained and amplified into the first part of this year, reiterating the opportunities for expanding the UK workforce. This notwithstanding, skills shortages remains one of the most significant challenges that the industry faces.

Into Film

Into Film is a UK-wide education charity, part-funded by the BFI, which puts film at the heart of children and young people's education, and supports teachers and educators to achieve a wide range of effective learning outcomes in their use of film.

With the majority of students learning from home instead of the classroom for much of the last academic year, Into Film moved quickly to support remote teaching and delivering lessons online. They developed more curriculum-linked resources, made a number of member-facing filmmaking activities free to all, offered news and articles on home learning and showed how to adapt their resources, such as Film Clubs, to the lockdown environments.

video-on-demand service and learning platform IntoFilm+ increased the reach and scale of their work across the 5 19 age range. With more than 125,000 resource downloads, this represented an increase of 20% and the number of total beneficiaries also exceeded target by more than 35% at 3.5 million. In-school engagement has remained high with over 3,000 teachers accessing online CPD and new Film Clubs being established.

Beneficiary numbers remain extremely strong with the number of young people coming from BAME and/or Free School Meals backgrounds well above the national average, with 75% from outside London and the South East. The percentage of 16 19 year olds participating through the Get Into Film YouTube channel has risen by 6% to 110,000.

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These figures confirm the appetite of schools and young people to engage with film, both as a source of cultural capital and potential careers path.

BFI schools programme

While in-

expected, deeply impacted, our subsequent move to online courses proved very successful aspects of film and language curricula were supported by newly published resources.

Our swift response to teacher demand for specific GCSE and A-Level support materials proved very popular and was well received by teachers. All the work done by our Schools team to present a digital offering has helped transform the overall schools programme to ensure increased reach and scale, which has been a long-term ambition. UK wide in-venue activity will return, hopefully, in 2021 22.

BFI Families

The Saturday Club programme at BFI Southbank has flourished online during the year, with more than 90 7 15 year olds attending, virtually, each week representing a 40% increase on the previous year.

We received a significant investment in a new UK-wide pilot programme for practical filmmaking clubs funded by the National Lottery and DCMS. Partnering with the National Saturday Club and existing BFI Film Academies, 19 clubs will be delivered for around 500 young people, all from opportunity areas as defined by the Department of Education (DfE). At least four of these clubs will be delivered in universities and colleges.

BFI Film Academy

Now in its ninth year, the BFI Film Academy, backed by DfE, National Lottery, Screen Scotland and Northern Ireland Screen, provides 16 19 year olds from diverse backgrounds across the UK the opportunity to develop the specialist filmmaking skills they will need to be part of the future of the UK film industry.

Nearly 8,000 places have been created on courses since 2012 and the DfE has confirmed a further £1 million funding support in the Film Academy to 2022. Throughout 2020-21, 45 courses were successfully delivered, exceeding ambitious diversity and inclusion targets, through a combination of online and in-venue participation (where and when permitted around the COVID-19 restrictions). Additionally, specialist courses were delivered online covering animation, VFX, documentary, craft skills and screenwriting.

As well as the short and specialist courses, BFI Film Academy teams deliver monthly skillsdirector and opportunities outside London. An Instagram-based quarterly screening

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1,800 live audience members and some 12,000 online views.

Future Skills Trainee Programme

Now in its third year, the Future Skills Trainee Programme supports people from underrepresented groups to build a career in film through extended, fully paid, work placements. This year saw a total of 120 positions placed across UK productions (many of whom came from BFI Film Academies), including a first foray into high-end television, with 51% of the placements being women, 21% people with disabilities, 17% free schools meals and 19% BAME applicants. The scheme has an impressive 80% or more conversion rate into employment or further education and training.

Future Film Festival

The 14th BFI Future Film Festival took place online and as a free event in February. Our festival jury was chaired by producer Elizabeth Karlsen and included Waad Al-Kateab, Daisy Edgar-Jones, Reggie Yates and Malachi Kirby. With more than 1,000 submissions received this year, the winners were announced at a virtual awards ceremony, Loco taking best film, best director went to Gustavo Gamero for Instructions to Let Go and Emmanuel Li winning best new talent for Music for the End of the World.

A full industry programme with special guests including Turner-Prize winning artist Jeremy Deller discussing the use of archive footage in filmmaking, and the art department of award-winning psychological horror Saint Maud (Rose Glass, 2019), discussing how they worked together to design and create a bleak and unnerving world of faith, madness and obsession. The festival attracted 7,216 attendees at our live online events, 8,463 views of our short film programme on BFI Player, 7,834 views of additional events on YouTube and IGTV and an increase of followers on our social media accounts with Twitter up 24% and Instagram up 25%.

The Future Film Skills Action Plan

The Future Film Skills Action Plan is now in its fourth year and delivered by ScreenSkills to create a larger and more inclusive workforce by delivering UK-wide training and support.

mpact of COVID-19 on a largely freelance workforce. Highlights included the delivery of new apprenticeships standards, CPD courses for workers with a disability, a new Skills to Screen programme for professionals transferring into the industry from other sectors, and winning the

Information gathered through the quarterly skills workforce barometer has been particularly useful in providing an informed snapshot of the industry enabling new and relevant programmes of support and advice to be offered, including

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updated insight on current skills trends and changes in the sector to help industry, policy-makers, and education and training providers to develop the talent needed to support the ongoing success of the sector.

Recipients of ScreenSkills training and support included 17,000 new entrants to the sector and 13,000 existing workers. Diversity figures were also strong with 60% of beneficiaries women, 14% disabled, 18% BAME and 14% LGBTQ+, exceeding current industry averages.

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A CHAMPION FOR TALENT

We champion new talent and unfamiliar stories from unfamiliar voices and are passionate about projects that reach new audiences.

As part of our long-term commitment to discovering, developing and championing new and emerging talent, BFI NETWORK offers extensive professional development, networking, funding and editorial support for producers, writers and directors of all ages at the start of their careers. The programme awards National Lottery funds for the production of short films and the development of debut feature film projects. The UKwide BFI NETWORK team of Talent Executives are based in leading cultural venues across England in the five BFI FAN Hubs and with our national partners Ffilm Cymru Wales, Northern Ireland Screen and Short Circuit in Scotland.

In response to COVID-19, all BFI NETWORK activity was moved online so we could continue to provide emerging filmmakers with the core funding and professional development opportunities that we still had at our disposal. This ranged from providing temporary funding uplifts for short film projects to deal with the additional costs associated with COVID-safe production, to offering professional safety specialist advice and support. We are running an online survey to learn how we can better tailor NETWORK content for our filmmakers across our website, social media, and our webinar programme. We also consulted with the UK-wide NETWORK team to evaluate our current working practices, programmes and funds and their effectiveness in supporting filmmakers from underrepresented groups, identifying where and how we can do better to make our work as inclusive as possible.

Funding

The disruption to our operations in 2020 21 gave us an opportunity to rethink how we administer the two cornerstone project funds of NETWORK in England the Short Film Fund and the Early Development Fund, for which we received 1,064 applications in 2020. Highlights in our England hubs to the end of December 2020 were:

SFF (Short Film Fund)

We offered support and resources to help our filmmakers create COVID-secure filming environments and, following a short pause while we set up the guidance, almost two

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dozen shorts have been shot since September. We reviewed the framework and administration of the SFF, changing it from an open rolling fund to having two windows for applications and assessments in Autumn/Winter and Spring/Summer. A total of 564 applications have been received for the SSF.

EDF (Early Development Fund)

After similarly reflecting on and reviewing the EDF, we will replace its rolling applications with one open call a year in Spring/Summer to bring greater structure and focus to the

Talent development highlights

NETWORK Weekender

was focussed on working-class filmmakers at the start of their careers and was scheduled to take place in Liverpool in April 2020 with 22 writers, directors and producers already selected. The programme moved online and was delivered in March 2021 and we hope to include an in-person element later this year whenever it is safe to run events of this scale.

NETWORK@LFF

designed an online experience that would reach more people within our NETWORK audience. This included a networking event for UK-wide filmmakers, webinars with debut filmmakers screening at the festival, articles written by emerging film writers, and social media take-overs with friends of NETWORK.

Insight

emerging producers Insight was swiftly moved online for our 12 selected participants. Four of six scheduled modules have been held to date (focussing on development; business; packaging and finance; and production and post-production) and buddying initiatives have been set up with the Insight and Vision awardees as well Development team). The producers attend ed the online European Film Market in March 2021 and a physical market later in the year.

Partnerships

Key partnerships continued this year, but delivery moved online. Highlights included: BFI Flare mentoring for seven participan masterclasses, talks and networking sessions which this year attracted a record number of applications (from which we selected 450 filmmakers); sponsorship of the short film category at the BIFAs for the fourth year; the British Council producers lab at IFFR;

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Three Minutes a new incubator scheme with partners Crack Magazine for young directors; and #shortitout a lockdown creative challenge for filmmakers to make 90 second short films within the prevailing COVID-safety restrictions in partnership with Encounters, Watershed and Depict.

SUPPORTING THE FUTURE SUCCESS OF UK FILM

BFI National Lottery funding supports powerful and creative filmmaking in five priority areas, ranging from new and emerging filmmakers, strong culturally impactful voices, risk-taking in content, form or platform, those that address underrepresentation and help us to widen the range of voices and audiences for film, and geographically diversity, both in production and content. As a priority we are addressing barriers in the cultural relevance.

Amid the unprecedented challenges brought about this year by the COVID-19 pandemic, our BFI Film Fund team supported a host of critically acclaimed films and multiple new initiatives to provide essential support for the industry.

As the first wave of COVID-19 hit and the country went into lockdown, we provided additional financial resources for interrupted BFI-backed productions to manage crew losses as work stopped. In April we opened the C-19 Continuation Fund, making up to £2 million available to independent UK productions unavoidably interrupted by the Coronavirus. This fund supported six feature films which were faced with unexpected additional production costs arising from the impact of the pandemic.

The team also played a key role in discussions with various working groups of the Screen Sector Taskforce which had been convened by the BFI to address the critical issues facing the sector arising from the pandemic. A key priority was to identify how best to get film production back up and running safely, including around the BFC and related screen industry guidelines endorsed by Government and Public Health, and the ground-breaking Film and TV Production Restart Scheme, set up and supported by the UK Government to help productions which were unable to secure insurance against potential Coronavirus-related delays and interruptions.

Through our Development Fund and Locked Box initiative we agreed the front-loading of fees for both new and pre-existing awards and increased flexibility in the scheduling of payments to help filmmakers continue to develop projects and retain staff. We also supported 25 emerging producers across 20 UK companies through a Vision Award of up to £50,000 a year an in-depth two-year initiative to empower producers to grow distinctive slates and sustainable companies.

In 2020 we established the Short Form Animation Fund as a response to priorities set out in BFI2022 which identified animation as a key focus along with growing the UK sector by backing ambitious and adventurous projects. So far, we have invested more

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than £900,000 in 15 projects which represent a broad range of filmmakers, animation techniques and genres.

The festival landscape looked very different this year with many moving completely online and only Venice, and a small selection of titles at the BFI London Film Festival playing in cinemas. While all festivals offered considerably reduced programmes, some with a shift of focus, many BFI National Lottery funded titles were still screened at multiple virtual festivals.

Ammonite, Francis Lee (2017), was selected for the Cannes Film Festival, a Gala Presentation at the Toronto International Film Festival (TIFF) and was the closing night film of the BFI London Film Festival, in its first in-venue screening. It received an Academy Award nomination for original music score.

Limbo, was also selected for

Cannes, TIFF, LFF, San Sebastian and the Cairo International Film Festival where it won Best Film, and of its four BIFA nominations emerged with a Breakthrough Producer award for Irune Gurtubai.

Herself (2020) and Harry

Supernova (2020), which drew particular praise for performances from Colin Firth and Stanley Tucci.

Saint Maud (2019), set a new record with 17 nominations at the 2020 British Independent Film Awards. Prano BaileyCensor (2021) screened at al festival and has been invited to the Berlin Film Festival.

Stand-out debuts came from directors Cathy Brady and Aleem Khan. After Love (2020) was chosen for Cannes Critics Week, and played at TIFF, LFF and Rome, with the director also shortliste The eventual winner of the IWC award, Brady, impressed with Wildfire (2018) which also screened at TIFF. Summerland, and China Undergods.

BFI National Lottery funded films included Misbehaviour (2020), Lynn + Lucy Make Up Eternal Beauty Circle Film Awards.

Rocks (2020), shaped through a process of workshops with teenage girls from East London, won critical acclaim and a slew of award nominations and wins for its largely female cast and crew, including Best Film at the British Independent Film Rocks went on to find success on streaming platform Netflix.

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-winning documentary The Reason I Jump (2021) also triumphed with critics and audiences alike.

Documentaries

The BFI Doc Society Fund had a highly productive third year which saw ongoing support for features, short films and professional development as well as, in response to COVID-19, targeted support for the documentary sector to help filmmakers and projects through the pandemic. We launched our Production SOS Fund in June to provide emergency funding for documentaries facing additional costs because of COVID-19. This National Lottery fund supported 17 films, some of which are already premiering at festivals thanks to the awards.

First features supported by the fund were Maya (Jamshid Mojaddadi, Anson Hartford, 2020) premiering at Zurich, African Apocalypse (Rob Lemkin, 2020) debuting at the BFI LFF and Locked In: Breaking the Silence (Xavier Alford, 2020) broadcast by the BBC as part of a disability focus that was supported by a wraparound audience and community development strategy.

The fund also supported ten new short film productions in partnership with BFI NETWORK, including its first VR project. Short films supported by the fund which won awards included Country Girl (Ellen Evans, 2019) which won Best Short Documentary at the Grierson Awards and The Nightcrawlers (Alexander A. Mora, 2019) which won an Emmy for Outstanding Short Documentary and was longlisted for an Academy Award. distribution, including three films picked up by the Guardian, one by Vice Media and one by PBS America.

Doc Society delivered their filmmaker support programme virtually this year, with roadshows focused on the South West and the South East, and an online Producers Lab.

YOUNG AUDIENCES CONTENT FUND

The BFI Young Audiences Content Fund (YACF) is in its second year of a three-year DCMS-funded pilot to deliver a more representative and greater range of programming to young audiences on free-to-air television . Set up in response to an Ofcomidentified lack of programmes for older children and teens, as well as live action programmes for all ages, YACF supports programmes that entertain, inform and reflect the experiences of children and young people growing up in the UK today in live action and animation and across all genres.

The YACF team is based in Manchester and is supported by a stakeholder advisory group largely composed of broadcaster representatives, regulatory and trade bodies and a steering group of producers and researchers of content for children and young people.

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Highlights

Engagement with production and broadcast communities is key to the success of the fund, so we continued to develop these relationships with over 400 individual applications received to date. Participating broadcasters included CITV, C4&E4, C5, Sky, TG4, BBC Alba and S4C and funds totalling £18.3 million were allocated for 54 development awards and 22 production awards. These investments are creating more regional jobs, training and upskilling opportunities for under-represented groups in front of and behind the camera, encouraging new and young talent, and offering broader and more inclusive portrayals of different communities, UK-wide settings and locations on screen. The fund is also helping the sector to make a bigger economic contribution through the creation and retention of IP with both a local cultural impact as well as revenue generating possibilities globally.

During the pandemic our YACF team moved to remote working and refocused on practical ways to mitigate the very challenging landscape for the television production and broadcast community. Broadcasters reassessed their situations as the impact of COVID-19 became clear and, while there was a brief hiatus in commissioning activity early on which led to a temporary slowdown in production applications, interest picked up later on, particularly for development support. While most planned productions eventually went ahead in spite of COVID restrictions, a few have been paused due to the complexity of the shoot and/or age of on screen talent, but are expected to restart later this year. Ultimately, more than 60 hours of brand new content for young audiences was greenlit this year.

The strength of our development activity is already improving not only the quality of projects being pitched to broadcasters, as has been noted by commissioners, but also the conversion rate from development to commission that we currently estimate to be at around 10%.

For the shows that continued/resumed production, this year saw a range of Sali Mali for S4C, as well as Sol on BBC Alba, S4C, TG4, CITV, All4, My5 and ITV Hub -commissions have already been confirmed on the back of strong audience figures.

Telling the YACF story

Following lockdown, we focused on a creative competition for young audiences, challenging them to pitch a television programme that they would like to watch during lockdown. The See Yourself On Screen Challenge resulted in 15 short films, created and produced by young people in lockdown that were broadcast to acclaim on CITV, E4, Milkshake!, Channel 5, S4C, and BBC Alba. As well as broadcaster participation, industry organisations PACT, BAFTA, Animation UK and Into Film, and talent such as

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Reggie Yates, Rob Delaney, Jessica Hynes and Konnie Huq all supported the initiative. We are now planning a sequel for year three.

We initiated a pan public service broadcaster co-transmission at the Winter Solstice of Sol, a project conceived and commissioned pregrief and loss was a co-commission by the indigenous language broadcasters BBC ALBA, S4C, and TG4 which was broadcast at solstice and also shared with English language public service platforms.

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ON THE INTERNATIONAL STAGE

Export and co-production

As the COVID-19 crisis intensified and much international activity moved online, our International team quickly adapted to create new ways to support UK producers, distributors and sales companies. Their first National Lottery International Fund award was made in April and supported a digital delegation of UK producers, in partnership with DocSociety, to meet producers, broadcasters and funders at the Visions du Réel documentary film festival in Switzerland after it transferred online.

Providing support for a digital UK presence at virtual markets became one of our biggest tasks this year, particularly for the delayed Marché du Film at Cannes after the festival was finally moved online in June. Our long-established Cannes UK pavilion was transformed into a digital platform, with the help of our marketing team, offering activities and information on UK co-productions and tax relief, online panel discussions and support for the prestigious Producers Network breakfasts, where five UK producers take part in a week-long networking session organised by the Marché du Film.

Other digital markets and events supported by the International Fund included Sheffield DocFest, Annecy, the Russian Key Buyers Event, TIFF, the Production Finance Market at the LFF, the Bridging the Dragon platform (a China/Europe organisation), and Creative XR, a three-day innovation programme and market organised by Digital Catapult, which included meetings, masterclasses, keynotes and a showcase of 20 UK VR projects to an international audience. We further arranged digital delegations or support for the online Tallinn and Baltic Event and the Ventana Sur market, with a focus on co-productions with the Baltic region, Eastern Europe and Latin America respectively, an NZ/UK networking video event for producers in collaboration with the New Zealand Film Commission, and Attagirl, a one year international training programme for female/non-binary teams with an emphasis on distribution.

During the brief window in October when COVID-19 restrictions lifted, we supported a their co-production projects.

As a direct response to COVID-19, we were able to reallocate £500,000 from our National Lottery Film Export Fund to create a one-off relief fund for UK sales agents needing business resilience support as a result of the pandemic. Awards of up to £25,000 were given to help companies maintain their business and to transition to a digital model for film sales and distribution. The Film Export Fund had been markedly under-used following the cancellation of so many physical festivals and markets, making the reallocation not only possible, but essential. Regular fund awards were made for Venice 2020 and to promote UK films at the digital editions of TIFF 2020 and Sundance 2021.

Plans for a new UK Global Screen Fund to boost international development and got underway

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during the year. The BFI and DCMS consulted with industry across the screen sector culminating with the launch of the new £7m pilot fund in April 2021 to support international distribution of UK content in international territories, international business development and co-production.

Inward investment

games and the wider screen industries and with the support of the DCMS policy team) led on a number of key COVID-19 related issues including production, post and VFX protocols, a quarantine exemption for production, and the Film & TV Production Restart Scheme. The work, in particular supporting the British Film Commission to show the UK was back up and running and realising substantial inward investment opportunities, contributed to the rebooting of the production sector that ended the year only 21% year. The recovery in the final quarter of the year, as noted elsewhere, saw production spend reach £1.19 billion, the second highest three-month total on record. To help meet the growing demand for studio space, the BFC was awarded additional DCMS funding to support the development and delivery of additional studio space.

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LEADERSHIP AND ADVOCACY

COVID-19 recovery

The BFI-led Screen Sector Task Force which had been focused on priorities for the ss the impact of COVID-19 on the industry when the pandemic struck. With an increased membership of 122, the Task Force demonstrates the value of pan-industry collaboration through regular engagement with Government and proactive policy design. Four key working groups were established, led by the British Film Commission (BFC), Pact, the BFI and FDA/UKCA, each with a specific focus. With our BFI External Affairs team and Chief Executive providing policy, research and leadership support across the groups, six recommendations were formally made to Government:

. .

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The impact of the Task Force was felt across all areas of the sector, with 209 independent cinemas receiving CRF grant funding and tens of thousands of jobs saved through the Film & TV Production Restart Scheme. Official BFI statistics showed a £1.19 billion uplift in film and TV production spend during the final quarter of 2020 21 and £2.84 billion for the year overall, just 21% down on the previous year despite months of suspended production during the pandemic. These results demonstrate how the continuing joint efforts of the Task Force are an incredibly effective way to communicate, share expertise and deliver fast and positive results for the benefit of the whole sector.

The BFI also provided £4.6 million across a targeted programme of COVID-19 support including a contribution of £0.5m of National Lottery funding to an emergency fund with the Film & TV Charity and industry organisations to support freelancers; £1.3 million resilience funding for BFI Film Audience Network exhibitors; £2 million to cover unexpected additional costs for independent productions interrupted by the pandemic shutdown; £0.8 million for BFI-funded features interrupted during production; and £0.5m for UK sales companies needing business resilience support to develop new models for working internationally. In addition, criteria for our Development Fund and the BFI Locked Box were adjusted to offer greater flexibility for producers, writers and directors.

Kickstart Scheme

Administered by the BFI, the Kickstart Scheme is a government initiative aimed at combatting long-term unemployment for young people, a section of society hit particularly hard by the COVID-19 pandemic. Launched in 2020, the scheme provides funding to create six-month job placements for 16 to 24 year olds on Universal Credit, with over 20,000 in work since the scheme launched.

UK Global Screen Fund

We worked with the Task Force and Government to identify the need for targeted investment to support international growth in the industry. At Autumn Spending Review 2020, the Chancellor announced a £7 million UK Global Screen Fund pilot to support the export and internationalisation of independent UK screen content, in particular for independent film. Delivered by the BFI, the results of the pilot will help inform potential future investment in supporting international export .

Changing relationship with the EU

The BFI continued to lead the screen sector input into the UK-EU relationship. . We worked closely with departments across Government including DCMS, DEXEU and HM Treasury, to understand the impact of exit and to offer practical advice. Our advocacy and leadership has been closely informed by the expertise and guidance of the Screen Sector Task Force which we convened following the 2016 referendum with representation from across the broader screen industries including film, television and video games.

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We maintained an online Q&A on our website, a mailbox helpline, and held presentations at industry outreach events.

The UK and the EU concluded a Trade and Cooperation Agreement (TCA) which took effect following the end of the transition period on 31 December 2020. The TCA has many implications for the screen sector and how we work with international partners, from changes to mobility rules to the temporary movement of goods. We are working closely with the Government and industry as well as our European partners, using the TCA as a basis on which to develop the best possible working relationships for the future. We are also engaging beyond the EU to strengthen our relationships with the rest of the world.

Sector and development projects

National Cluster Growth Fund

long-term growth for the screen industries across the UK, and to create jobs and a more inclusive and diverse workforce. The funding supports ambitious and select cluster organisations who have the potential to become international hubs, supercharging their local sector, and who are able to attract investment for development.

In April we announced a two-year investment of £1 million in Create Central, a new body backed by the West Midlands Combined Authority tasked with championing the local creative content industries. In its first year, Create Central secured public and private sector funding for an £18 million creative content hub to relocate existing regional businesses and attract new companies, with bespoke studio, training and postproduction facilities. It has also partnered

National Centre for Immersive Storytelling, and Coventry City of Culture 2021 to work with SMEs to develop and commission an immersive storytelling prototype supporting youth mental health and wellbeing, with the winning project receiving £120,000 production funding.

Screen Yorkshire continued to use its Growth Fund award to provide valuable leadership for the region, including in May the announcement of a new £200,000 indie television and film development fund in partnership with the Leeds City Region to the growing film and television sectors.

Creative Europe Desk UK

2020 was the final calendar year of the current Creative Europe programme which ran for seven years from 2014. It was also the end of UK participation in MEDIA,

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Due to the pandemic, our Creative Europe Desk UK team delivered their promotional activity online including a variety of application webinars, case studies and pitching -production Club was also held remotely, with 18 UK producers learning from both UK and international experts over a week of training sessions.

The start of 2021 saw the launch of a campaign which looked back over the seven years of the programme. The Impact of Creative Europe in the UK 2014-20 report highlighted the value delivered by the programme in building skills and confidence among the creative, cultural and audiovisual sectors through its funding, network-building and training schemes, while 20 for 20: Stories from Creative Europe in the UK brought own words through written testimonies and video interviews.

Inclusion

BFI Diversity Standards

The BFI Diversity Standards encourage equality of opportunity and address underrepresentation in the screen industries. They offer a flexible framework for feature films, online and broadcast television content and a range of audience-facing activities such as film festivals, distribution releases and ambitious film programmes. They are a contractual requirement for all BFI funding, including fiction and documentary films funded via our partner organisations and have been widely adopted by screen organisations including BAFTA, BIFA, Film4, BBC Films, and Paramount as well as our own Young Audiences Content Fund and the BAFTA Television Awards and Games Awards. Pinewood Studios and the National Film and Television School are strategic partners. In September 2020, the Academy of Motion Picture Arts and Sciences announced their commitment to model their film award (the Oscars ) eligibility criteria on the BFI Diversity Standards, while Screen Scotland adopted the Standards in October.

We are working to strengthen the Standards to drive more engagement with people from underrepresented groups, particularly in creative leadership roles and crews, based on recommendations for improvement within our own BFI Diversity Standards Initial Findings report and other analysis and research. A further external review commissioned by us will be undertaken this year.

Workforce data

We have advocated for the publication of diversity data about the BFI workforce and who we fund to be updated annually, including setting targets, and our performance against them. We have shared this data with the Race Disparity Unit to help them build a data set about racial disparity within the cultural sector.

Currently, there is no comprehensive overview of industry-wide workforce diversity data, which would help illuminate the wider landscape for both workforce diversity and for skills forecasting. We continue to advocate for an industry-wide system and have scoped a proposal for self-certified diversity data collection for cast and crew on all film

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productions to support evidence-based decision-making, and to help track the progress of change.

Preventing bullying, harassment and racism

The BFI Principles and Guidance to prevent bullying and harassment were updated in July with specific commitments to anti-racism. The principles and zero-tolerance guidance were developed with organisations across the film, television and games industries in response to urgent and systemic issues and have now been endorsed by over 40 screen sector organisations, with the Casting Directors Guild the most recent to join in January. Online training, devised with ScreenSkills, is available to support the updated guidance, and there is a 24-hour film and television support line operated by the Film and TV Charity and backed by the Production Guild. The principles are a condition of BFI funding and are embedded in our Diversity Standards.

Representation and portrayal

The Inclusion team has established three Screen Advisory Groups (SAG) to challenge misrepresentation and stereotypes and to champion authenticity. The groups collectively have a reach of around 200 external advisors and cover portrayal of people of Muslim faith, British East Asian actors and creatives, and screen industry professionals who identify as D/deaf and disabled. We work together to proactively engage on the ever-evolving dialogue about representation and portrayal of underrepresented communities.

Our D/deaf and disabled SAG launched a campaign called Press Reset in July, backed by Riz Ahmed, Emma Watson, and Jack Thorne among others, to inspire authority figures in film and TV to reset practices involving people with disabilities and establish a new, more inclusive normal. The campaign is underpinned by a two year Press Reset strategy and included a short film which has had 134,000 views, to date.

The BFI hosted its first BEATS Online Summit focusing on the British East Asian experience in January and supported the launch of the Muslim Faith Advisory Group in conjunction with the Muslim Film Charity in March.

Social mobility

We are working in partnership with the Social Mobility Commission on a new benchmark around fair socio-economic participation across BFI activity, to sit in line with our other targets. This will be integrated within Diversity Standards guidance and more widely adopted by partner organisations including BAFTA. We have been advising the Social Mobility Commission (SMC) on their new toolkit for the creative industries, which was launched in September 2021. We are combining this work with our commitment to Nations and Regions to ensure that we have a comprehensive set of

Research and statistics

The BFI Research and Statistics Unit (RSU) provides an essential resource for the screen sector, publishing data and evidence, reports and insight that provide a unique

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picture of trends in the development, production and consumption of film and other visual formats in the UK and across the world. The RSU team also provides research expertise for our five year strategy BFI2022, delivering insight, monitoring and evaluation of our strategic initiatives.

The impact of the COVID-19 pandemic on the sector was evident immediately from late March 2020, when cinemas closed and virtually all physical film and television production stopped due to the first national lockdown. Throughout the year, in order to inform industry and in particular the work of the BFI-led Screen Sector Task Force, the RSU team provided impact reports demonstrating the effects of the pandemic on the screen industries. These ranged from evidence to show the implications of the pandemic upon a highly self-employed or freelance workforce, to the effects of closure and paused film release schedules on the independent cinema sector.

We also monitored the dramatic loss of investment due to paused and postponed film and high-end television production and the impact on audiences as they turned consumed more streamed content with video-on-demand services and played more video games as their main source of entertainment and cultural value in lockdown.

RSU data and evidence, along with the trends that are regularly reported in the BFI Statistical Yearbook, are an essential resource to inform proposals to Government for support and mitigation of the effects of the pandemic on the sector. In particular, the Culture Recovery Fund for Independent Cinemas and the Film & TV Production Restart Scheme were designed using RSU data and statistics and their effects continue to be

The RSU also published the 2020 Statistical Yearbook, an edition which will in the years to come, represent an important pre-pandemic picture of what was a thriving screen sector.

who continue to advise and help determine its research priorities. Notable projects we undertook this year included the environmental sustainability of the UK screen sectors, an evidence review of the cultural value of film, television and video games, a mapping of the animation sector and a horizon scanning project which will highlight future opportunities and challenges for the screen sectors.

As part of the research and evaluation work that informs the work of BFI2022, we commissioned studies on the impact of the COVID-19 induced digitisation of two BFI festivals, Flare and the London Film Festival. The opportunities created by their new virtual environments demonstrated greater reach for both UK-wide and underrepresented audiences.

A new Head of Academic Partnerships joined the team in February 2020 and in the first 12 months has supported BFI colleagues with seven major research funding bids totalling £1.75 million, as well as five other project partnerships and collaborations with over a dozen universities. We secured our first ever major grant of £700,000 from the

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Manager, and are at full proposal stage with a second bid led by the Senior Curator in Non-Fiction Film and TV. These collaborations are essential in helping us to create a new, sustainable pipeline of research activity and income for the BFI.

Certification

‐ The BFI Certification Unit certifies films, high end television programmes, animation ‐ either under the relevant Cultural Test or (for film and television) as official co ‐ lateral treaties (seven of which allow television co ‐ production) or the European Convention on Transfrontier Television. This enables film and television producers and games developers to access their respective creative sector tax reliefs.

The Certification team promotes and markets these tax reliefs at events, conferences and festivals around the UK and Europe. This work has continued with online events over the last year including but not limited to the London Games Festival and Games Finance Market, AFM and Interactive Futures.

Despite the pandemic and the whole team moving to remote working, we continued to receive and assess a high volume of projects. Even though film and television production stopped in the first lockdown, the number of applications we received over measures early to allow applicants greater flexibility in submitting their applications, and are continually reviewing this process.

The team also provided guidance and support on quarantine measures for film and high-end television cast and crew travelling to and from the UK, as well as advising and supporting DCMS with the Production Restart Scheme.

The Certification team administers the BFI Diversity Standards for all BFI National Lottery-funded projects. Two different film awards BAFTA and BIFA have the Diversity Standards as an entry requirement for their British categories and we administered the Standards for an additional 400+ features and short films during awards season. The Standards have also been adopted by Film4 and BBC Films, so are a requirement for the majority of public funding for film in the UK. Additionally, we helped to pilot the Standards for the BAFTA TV and video game awards, along with developing a Scottish-specific version of the Standards for Screen Scotland and working with AMPAS to develop a version of the Standards for the Oscars.

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FUNDRAISING AND PHILANTHROPY

n ever by the support of corporate partners, charitable trusts and foundations and philanthropic individuals. The level of generosity and commitment has been outstanding, allowing us to raise £3.4m in grants, donations, sponsorship and gifts-in-kind. Our s in our work has helped us to not only continue vital operations, but also to adapt and thrive, creating digital festivals and programmes to connect with audiences around the world. We are deeply grateful to both the long-term partners who have continued their generosity and those new to our family of supporters who have donated this year despite uncertainty and upheaval.

To remain connected with our partners we rapidly took our Development events programme online, offering a bespoke range of digital engagement. These virtual events allowed us to successfully keep in regular touch with donors in the UK, and around the -ranging programme has included Zoom Q&As with the filmmakers Steve McQueen and Francis Lee; special virtual previews of White Tiger (Ramin Bahrani, 2021) and The Dig (Simon Stone, 2021); and an idiosyncratic tour of film locations from BFI Head Curator.

The Julia and Hans Rausing Trust made its first gift to the BFI with a generous grant supporting our aim to reach broader audiences across the UK, and globally, by helping us to transition BFI programmes, including our education work, to digital formats. Their support allowed us to make the 2021 Future Film Festival free to access for the first time, meaning more young filmmakers could take part, and we are grateful that trustees Julia and Hans Rausing also gave a personal gift at the highest level of BFI Patron support. In this tumultuous year their significant grant and generosity are transformative and will support our ongoing response to the pandemic and strengthen our future financial position.

The BFI Future Film Festival also received the support of other new and returning friends. We were delighted to welcome back Blackmagic Design as our Official Partner and Netflix as the Main Sponsor, as well as long-term award supporters Chapman Charitable Trust and the London School of English.

The BFI London Film Festival (LFF) is always a highlight of the year, and in 2020 it was a cultural lifeline made possible with the huge commitment of our valued corporate partners. The continued support and trust of our Principal Partner American Express - ore. This year they were joined by new partners Porsche and Netflix, who shared our vision for a education initiatives. We are grateful for continuing support from American Airlines, IWC Schaffhausen, The May Fair Hotel, Heart of London Business Alliance, and Bloomberg. Consistent support from these organisations created continuity and allowed us to reach audiences across the UK. Complementing their longstanding year-round generosity, Col and Karen Needham also made a personal contribution to support the Debate strand during LFF.

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At the BFI National Archive, funders have rallied to help the team face the challenges of the year. The flexibility of supporters has informed new approaches, as well as allowing us to continue essential cultural work. Continuing their legacy of critical archival funding, the Esmée Fairbairn Foundation maintained their support for making archive content more accessible and have been hugely understanding as the work had to change throughout the year. A new gift from the David Lean Foundation enriched our paper conservation work, and an unrestricted grant from the Charles Skey Charitable Trust helped maintain essential Archive operations. Thanks to ongoing support, work also continued on the world-leading Women in Documentary project, funded by the Film Foundation, and a range of photochemical restorations funded by Christopher Nolan, Emma Thomas and the MORF Foundation. Simon and Harley Hessel and Matt Spick also continued their long-term contributions, which have enriched the Archive in so of our restoration of 35mm film.

Elsewhere, our new corporate partner The Japan National Tourism Organization has helped support BFI Japan 2020, a landmark six month season celebrating great works from over a century of Japanese cinema.

The care and backing of BFI Flare supporters in the early stage of the pandemic when the programme moved to a digital offering has been exceptional. We are thankful for the unwavering support and generosity of the Pureland Foundation, whose leading gift enabled the immediate and significant adaptation of the festival to happen. Other inspiring partners who supported the new format and contributed to the success of the 2020 online BFI Flare: London LGBTIQ+ Film Festival included American Airlines, The May Fair Hotel, Mishcon De Reya, Netflix, Konditor and Interbank LGBT Forum.

BFI Flare is a key part of our commitment to diversity and inclusion, and 2020 saw the BFI build on this with a public commitment to being an actively anti-racist organisation. To support this commitment, we raised funds for a range of initiatives, including support from Facebook, and a new grant from CVC Foundation focusing on immediate COVID19 crisis relief and the expansion of BFI diversity and inclusion work in the coming year.

Jane Stanton and new partner Jaguar have committed to further strengthening the BFI Woman with a Movie Camera strand, a key initiative celebrating and showcasing the work of female filmmakers, aiming for change at the cultural, industry and policy level.

Legacy gifts play a significant role in underpinning our work, and we are grateful to everyone who has chosen to support the BFI with a gift in their Will. This year we have received two legacy gifts and welcomed more new members to the BFI Legacy Circle.

Finally, we hold particular gratitude for the majority of our supporters who made or renewed their annual gift in a year where the experiences we could offer were unavoidably restricted. Major Donors, Film Forever Club members and Patrons have donated for the first time, upgraded their support, renewed early or given additional gifts to streng with particularly generous gifts received from Philippe Camu (towards our cultural programme), Adam Rubinson (recommending a

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major gift through the Friends of the British Film Institute) and Gilberto and Daniela Pozzi (supporting education initiatives being taken online). We have also been motivated and heartened by the support demonstrated by the hundreds of people who have come together to make donations online and by text, donating the value of their cancelled tickets, and by helping us to spread the word of our work and the essential need for charitable support.

YOUR SUPPORT HELPS US SECURE THE FUTURE OF BRITISH FILM

The BFI warmly thanks the following people and organisations for their generous support in 2020 21

GOVERNMENT

The Department for Digital, Culture, Media & Sport The Department for Education

MAJOR DONORS

Philippe & Stephanie Camu The Clothworkers' Foundation Creative Europe - MEDIA Programme of the European Union The David Lean Foundation Greg Dyke & Sue Howes The Esmée Fairbairn Foundation The Film Foundation Friends of the British Film Institute* Simon & Harley Hessel Col & Karen Needham Christopher Nolan & Emma Thomas Gilberto & Daniela Pozzi The Rothschild Foundation Adam S Rubinson Charitable Fund** Matt Spick Jane Stanton

ANNUAL DONORS

Arts Council England BFI Legacy Circle Chapman Charitable Trust The Charles Skey Charitable Trust The John S. Cohen Foundation The Gladys Krieble Delmas Foundation Europa Cinemas The Film Music Foundation Brian & Rene Hollins**

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The London School of English The National Lottery Heritage Fund The Polonsky Foundation Reuben Foundation The Thistle Trust The Thriplow Charitable Trust The Unwin Charitable Trust

FILM FOREVER CLUB

Paul Ashurst Josh Berger, CBE Donald & Corrine Brydon Philippe & Stephanie Camu Caroline & Nick Clarry The Fox Family Keith Haviland John & Jennifer McLellan Ian & Beth Mill Col & Karen Needham Robin Saunders Sir Howard & Lady Stringer

DIRECTORS CUT PATRONS

Eric Abraham Kieran Chalker Hans & Julia Rausing Lisbet Rausing & Peter Baldwin Sabina & Phillip Reeves Peter & Nancy Thompson Kathryn Uhde

EPIC PATRONS

Heather Acton & Peter Williams Enrico & Cristiana Cavallo Ed Cooke Nathalie Esposito Eric Fellner, CBE Amy Gardner & Peter Dubens Brenda Garza Isabelle Georgeaux Agathe Hubert Adrian Kemp Lynn M. Lewis Bill Mumford

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Peter & Maggie Murray-Smith Ocean Outdoor John Reiss Anita Siassios

CLASSIC PATRONS

Adeem Altaf Andrew Arthur Rabbi James Baaden Lady Bacardi Francis Bennett John Birkenhead Michael & Sophie Birshan Nick Blackburn Paul Bowen Felicia Brocklebank The Broughton Family Charitable Trust Simeon Brown Rob Carrington Charles Cecil John Chinegwundoh Sammy Cooper-Smith Cley Crouch Carl Dalby Tabitha Dale Simon & Jane Davis Matthew Dean Jon Dear Paul Dennis Stephan Dilley Bruce & Lindis Dockeray Ealing Studios Jeff & Emily Fergus Michael & Harriet Finney Joachim Fleury Patrick & Anne Foster Peter & Judith Foy Lizie Gower Deo Gratias Claude Green Kathryn Greig Dr Michael J. Hamlyn Drew Hess & Emily Quesada Heather & Greg Hogarth Jay Hunt Raymond Joabar

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Alexandra Joffe Matthew and Jessica Justice Meltem Kamber Ben Kelvin Nicola Kerr The Hon. Miss Julia Kirkham Daan and Maggie Knottenbelt Apostalos Koustalos Steven Larcombe Laura Lonsdale Alison McCarthy Lord Ellen McGuinness Julie Miecamp Assad Moghul Jackie Mountain Laoise Murphy & Family Francesco Nerici Tapi Nyoni Alexandra Oliveira-Jones Si Overson Stephen & Claire Paine Anthony Pozner Matthew Pryor Phillip & Sabina Reeves Lisa Reuben Valk Sue & Tony Rosner Firdaus Ruttonshaw Ruth Saleh Michael & Gail Sandler Lisbeth Savill Joana Schliemann Jim & Linda Scholes Nick Scudamore Angela Seay Lulu & Ed Siskind Andrew M Smith DL Nicola Stanhope Phil & Sarah Stokes Gregory Stone & Annabel Scarfe Sky UK Jan Taylor-Strong David & Jan Thomas Andrew Tseng Sajid Varda Watch Guru Ltd. Louise L. Whitewright The Stuart and Hilary Williams Foundation

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Andrea Wong ** Annette & John Younger

PRINCIPAL PARTNER BFI LONDON FILM FESTIVAL

American Express

CORPORATE PARTNERS

American Airlines Bates Wells Blackmagic Design Bloomberg HOLBA Interbank LGBT+ Forum Iron Mountain Incorporated IWC Schaffhausen Japan National Tourism Organization (JNTO) LaCie The May Fair Hotel Mishcon de Reya Netflix PCP Capital Partners Porsche

IN-KIND SUPPORTERS

Christie Digital Digital Cinema Media Facebook Konditor

With additional thanks to all of our anonymous donors and patrons.

** Donations marked with double asterisk were made to Friends of the British Film Institute.

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BFI OPERATIONS

Finance & Resources

Finance & Resources teams moved swiftly to mitigate the impact of COVID-19 on BFI activity, implementing a business continuity plan (BCP), and managing the complex reopening plans for our venues, offices, and buildings. A grant of £980,000 was allocated to the BFI by DCMS as part of a wider programme of funding, which contributed to essential financial support to offset the considerable COVID-induced operating losses.

Scheme (JRS) with at one stage 65% of our workforce on furlough, and a combination of full/part-time and furloughing arrangements operating throughout the year, according to workforce requirements, personal circumstances and lockdown periods.

In addition to managing the JRS, our HR team focused on extensive COVID-19 staff engagement including a helpline email, information Q&As, advice on physical and mental health well-being, working from home, carer commitments, and shielding and, with the Facilities team, planning for safe return to sites, ensuring COVID-secure working environments for the returning public as well as BFI people, and advice and training on safety protocols. We also won the National ENEI (Employers Network for Equality & Inclusion) award for workforce representation (with the Cabinet Office runners up).

BFI Finance teams undertook a total reforecasting of BFI spending to assess and mitigate the financial impact of the closedown of our business. Alongside this, they helped to manage a review and redirection of National Lottery funds to support the including on the Culture Recovery Fund for Independent Cinemas and the UK Global Screen Fund.

As many BFI people moved to working from home, IT work focused on delivering remote access to everyone, introducing new technologies and deploying existing ones more widely, expanded helpdesk support and maintaining business as usual in exceptional circumstances.

Venue and buildings

The Property and Facilities team supervised extensive and exhaustive work across all four of our sites to manage their safety and security during the pandemic, adapting maintenance, security and cleaning requirements, as well as supporting remote working staff requiring delivery of computers, ergonomic seating and equipment to homes.

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KEY PERFORMANCE MEASURES

BFI2022 detail sets out the measures for how the BFI will assess its contribution to further the economic and cultural success of film. 13 key performance measures will be tracked through to 2022.

By 2022 BFI commits to have:

In 2020-21 performance was as follows:

MEASURE OF SUCCESS 2022 TARGET (WHERE
APPLICABLE)		 2020-21
PERFORMANCE
Increased the diversity of
talent supported across all
BFI activities		 Female
50%
BAME
17%
With a Disability
7%
LGBTQ+ 15%		 Female
53%
BAME
26%
With a Disability
10%
LGBTQ+ - 26%

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MEASURE OF SUCCESS 2022 TARGET (WHERE
APPLICABLE)		 2020-21
PERFORMANCE
Increased the diversity of
audiences across all BFI
activities		 Female
50%
BAME
20%
With a Disability
7%
LGBTQ+ - 15%		 Not collected in
2020/21 due to
COVID-19
Increased engagement with
BFI activities across the UK
and increased the quality
and cultural depth of their
experience		 n/a Theatrical
0.6mm
engagement
Distribution
0.5
million
Online
8.1 million
Education & Skills
4.1 million
Increased participation of
16-30 year olds across all
BFI activities and funded
programmes*		 25% Not collected in
2020/21 due to
COVID-19
Further conserved and
digitised the most at-risk
materials within the BFI
National Film Archive,
notably video and television		 To preserve and digitize
100,000 of the most
at-
risk, British TV
programmes		 30,556 (programme to
date 55,581)
Supported talent to
progress in their filmmaking
careers*		 n/a See below.
Supported British films and
British talent which have
received recognition
domestically and
internationally		 n/a 24 films received a total
of 94 nominations and 18
awards.
Invested in start-up film
businesses outside of
London which have
leveraged
additional investment and
increased levels of
employment		 To have supported 200
film businesses outside
London		 211

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MEASURE OF SUCCESS 2022 TARGET (WHERE
APPLICABLE)		 2020-21
PERFORMANCE
Supported a greater
geographic spread of film
production in the UK		 n/a 22% UK domestic
shoot spend
completely outside
London and the South
East

Independent expertise w as also recruited to develop the evaluation framework, baselines and methodologies for MS4, MS6, MS7 and MS13 and w as reported as part of the mid-term evaluation in 2020-21.

First Time Supported Filmmakers – 2020-21

First time supported by the BFI*

Producers 40% supported for the first time Directors 56% supported for the first time Writers 58% supported for the first time

Previous Release History of Supported Filmmakers

Producers 63% no previous releases Directors 78% no previous releases Writers 78% no previous releases

(* - BFI Film Fund Production/BFI Film Fund Development/NETWORK (not including NETWORK Partners)

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FINANCIAL REVIEW

FUNDING, INCOME and INVESTMENT in CHARITABLE ACTIVITIES

Review of the year

2020-21 was an extraordinary year. The global COVID-19 pandemic and the resultant lockdowns inevitably impacted on the activities and financial position of the BFI. From 17 March 2020 all BFI estates were closed including BFI Southbank and the Archives at Berkhamsted with a consequent cessation of many of the usual income generating activities including the BFI Southbank cinema programmes, the education programme and archive restoration projects, and with the cancellation of major programme events such as BFI Flare festival. Facilitated by existing IT systems, staff were asked where possible to work remotely.

As noted throughout the Annual Report the BFI reacted as proactively as possible - some activities were repurposed and moved substantially online, such as both our Festivals and much of our educational work. Our pre-existing digital presence, including BFI Player flourished. Sadly other major cultural activities, such as the bulk of work at the Archive or the programming of the National Film Theatre were either heavily curtailed or impossible to deliver.

These all presented considerable challenges to income and the BFI is grateful for all the support we received from our members, and many other public and private sources, as well as to DCMS and HMT for the crucial COVID-19 financial support through both the Job Retention Scheme and the Culture Recovery Fund allowing our key functionality and resources to be maintained.

During the year the BFI played an enhanced role as a funding body, not least with our appointment as distributor for the Culture Recovery Fund for Independent Cinemas in England (CRFICE). Announced by the Chancellor in July 2020 this was part of a £1.57 billion support programme for the cultural sector, with parallel strands administered by Arts Council England and the National Heritage Lottery Fund, which continues to be crucial for the survival of independent cinema. Alongside this key new grant in aid supported fund, the BFI was able to refocus its lottery funding programmes to support areas of the sector that were most at risk as a result of the pandemic. Specific action included supporting continuity of work and skills and talent development throughout the period of lockdown with schemes such as production continuity funding, the audience resilience fund with our FAN network partners, a flexing of the criteria for the release of Coupled with ongoing levels of applications, the 5 year lottery programme as outlined in BFI 2022 was maintained (with reduced outcomes for some programmes). This was possible as after a short sharp dip, incoming resources to the National Lottery Distribution Fund recovered speedily with the BFI share of lottery proceeds for the year of £49.1m being a small increase on the £48.3m of 2019-20.

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Throughout the year, the Executive Board, with the guidance of the Finance Committee and the Board of Governors, and the continuing support of DCMS, kept under constant review the financial impact on the charity and the mitigations and actions necessary. This included immediate limitations on spend, a 2 month reduction in working hours and pay (the salaries of lower paid staff were protected) and a review of all planned activities, cancelling, postponing or adapting to a digital offering for many across the year. The BFI furloughed staff where appropriate, and thus maximised cash flows.

Income for the year to 31 March 2021 was £145.6m an increase of £32.1m from the £113.5m received in 2019-20, predominantly due to the additional Grant in Aid (GiA) funding (£29.2m) for our role as distributor of the CRFICE.

Overall expenditure on charitable activities increased to £154.2m (2020: £122.4m) again predominantly due to awards through CRFICE.

Lottery net expenditure, together with other recognised gains and losses, has reduced Lottery reserves by £9.0m to £25.0m. Other restricted reserves increased by £1.2m to £6.0m while as a result of a 50% increase in the value of the pension liability by £32.8m to £94.8m unrestricted reserves were reduced from £20.9m to a negative balance £13.9m.

drive down overhead costs and to increase income from existing charitable activities, as well as seeking to exploit new sources of income, to support the delivery of its core objectives.

Due to the nature of its funding and operations the BFI does not hold large cash balances and continues to manage free reserves of approximately £1m.

Non-Lottery activities

Incoming resources

Incoming resources from non-Lottery activities increased in the year by a net £32.0m. The £29.2m of revenue GiA for the CRFICF was a significant element of this but the BFI was also grateful for the £2.3m CRF funding received for its own activities, together with JRS support of £3.5m as earned income was down by £9.4m. £18.8m in revenue GiA

Fundraising was lower with this being a year without the biennial Luminous Gala and moving the festivals online. £4.0m was raised of which £3.7m (91%) were cash contributions and £0.4m (9%) gifts in kind (2020: £5.4m of which cash contributions £3.7m (69%) and gifts in kind £1.7m (31%)). However, sponsorship was largely maintained at £1.6m (2020: £1.7m).

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Fundraising costs of £1.9m represent the costs of running the BFI Development division in order to raise funds for the BFI (2020: £2.2m included the costs of the biennial Luminous gala held in the year).

Resources Expended

Total non-Lottery expenditure increased to £103.1m (2020: £76.2m) predominantly due to £28.7m of new expenditure in respect of the Culture Recovery Fund and increased expenditure of £19.0m on the Young Audience Content Fund (2020: £13.9m) partially offset by cost savings from COVID-19 related closures.

Gross Transfers between funds

The non-Lottery activities received awards of £3.5m from BFI Lottery in the year to support the reduced London Film Festival £0.25m (2020: £0.9m) and the Heritage 2022 archive preservation project £3.3m (2020: £2.3m).

Actuarial Gains/losses on defined pension scheme

On the FRS 102 basis the total net pension scheme deficit increased by £32.8m from £62.0m to £94.8m (2020: a £2.7m reduction from £64.7m to £62.0m). The increase in the deficit is mainly the assumptions underlying the present value of the scheme liabilities netting a 16% increase in the asset value.

The result of the triennial valuation by the London Pension Fund Authority Trustees as at March 2019, upon which current and future contributions are based, is a deficit of just £2.3m for the whole pension scheme including lottery (2016: £9.6m). The deficit is being funded over up to 5 years under a deficit recovery plan agreed with the pension trustees.

Movement in asset revaluation reserve

The value of the leasehold land and buildings and associated plant and fixtures decreased by £3.7m following revaluation using publicly available indices and depreciation charges (2020: £0.3m reduction).

Lottery activities

Incoming resources

2.7% (2020: 2.7%). This equated to £49.1m (2020: £48.3m) marking an upturn in lottery ticket sales across the year, and reflecting a swift recovery after an initial drop in sales in the initial weeks of lockdown.

In addition the BFI received £4.9m of recoupment from its investments in the year (2020: £6.0m). Of this £0.8m (2020: £1.6m) was surplus recoupment over the original

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investment and was taken to income. The fall in both reflects the closures in cinemas during the pandemic and the consequent hold back (and reduction) in film releases other than through streaming services.

Resources Expended Lottery awards

2020-film right awards in the year totalled £32m (2020: £33.1m). The largely level funding is predominantly due to a number of advance partner awards being committed covering the activities for the period to through to 31 March 2022, as they similarly were in the previous year.

In addition £22.3m (2020: £17m) of awards were taken to Film Rights in the Statement of Financial Position.

Adjustments of £19.4m (2020: £12.7m) against Film Rights were charged to expenditure for the year.

Operating Costs and Administrative Costs targets

Operating costs were £5.5m in the year to March 2021 (2020: £5.8m).

Net incoming resources, on a three year rolling average 2018-21 and after offsetting costs of generating recoupment were £48.2m (2020: £47.9m), reflecting the stabilisation of the levels of income into the National Lottery Distribution Fund since 2017.

DCMS have set Lottery distributors a gross target for award processing and other administrative costs of 8% of incoming resources, this reduced to 7.75% from April 2021. In 2020-21 the gross award processing and other administrative costs stood at 7.4% of net incoming resources (£3.6m) (2020: 7.9%, £3.7m).

Actuarial Gains/losses on defined pension scheme

On the IAS 19 basis the net pension scheme deficit attributed to lottery activities increased by £2.3m from £2.7m to £5.0m (2020: a £0.1m increase from £2.6m liability).

Reserves Policy

The Governors are committed to the management of activities within the available funds. A significant element of income is subject to market conditions and the risks are incorporated into the budgets, with ongoing financial planning and management of expenditure used to meet any unforeseen expenditure or fall in income. Overall, the over time, whilst ensuring adequate cash reserves to manage timing differences and provide financial contingency. The BFI also maintains net free cash reserves of £0.9m (2020: £1.1m) to manage short and medium term working capital requirements and this level is considered adequate, having ranged over the past ten years between £0.4m and £1.7m.

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The impact of the COVID-19 pandemic

Going Concern

The accounts have been prepared on a going concern basis.

As the G government in developing and delivering the strategy for film in the UK. The BFI is a lottery distributor, with a statutory right to receive a share of the National Lottery -Departmental o our future financial stability.

The BFI receives Grant-in-Aid each year from the DCMS for a range of its other activities including in recognition of the cultural impact of film, and the importance of the National Film and Television Archive t

The key consideration for the future viability of BFI is the impact of the COVID-19 pandemic including the latest lockdown and its subsequent easing, the risk of further lockdowns and ongoing social distancing measures and the impact on customers and the economy. As noted above the pandemic has had a significant and immediate effect on BFI trading income and fundraising although lottery income has been much less impacted.

BFI has taken a number of measures to limit the financial impact including:

The cumulative impact of loss of income and compensating cost saving measures (including accessing CJRS) has resulted in a forecast deficit in each of the next 2 years. DCMS have agreed additional support for 2021-22 of up to £2.3m and through the Comprehensive Spending Review in November 2021 BFI GiA is expected to be sufficient to support the organisation through the period covered by the Review. However, with permission from DCMS to draw grant in aid as requir cash balances remain positive across both years.

There remain a number of risks which could worsen the forecast deficit and cash flow including:

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However taking these into consideration the Board considers that the positive forecast cash position over the next two years, the capacity to raise additional funds from supporters and philanthropists along with the opportunity to make a case for support to DCMS provides the Board of Governors with sufficient confidence that the BFI has sufficient resources to continue for at least the next 12 months following signature of the accounts. Accordingly the financial statements for the charity, group and lottery activities have been prepared on a going concern basis.

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PUBLIC BENEFIT

The Board guidance on public benefit, the guidance on public benefit and fee charging being particularly borne in mind while shaping our objectives for the year and planning activities. The Board also continues to be conscious of its responsibilities as the custodian of a National Collection which it holds in trust for the nation.

widest possible range of British Distributor for film, invests National Lottery money and Grant in Aid to help ensure that audiences across the UK have access to a wide range of cinema. The BFI also uses National Lottery and Grant in Aid to support activities including education and lifelong significant public benefit.

The BFI delivers public benefit and covers its operating costs utilising a mix of income drawn from the National Lottery, Grant in Aid from the Government, philanthropic activity and income from ticket and other sales, fees and charges. In setting both the overall strategy for the organisation as the lead body for film and the level of prices, fees and charges, the Governors have given careful consideration to accessibility to the activities funded by the BFI for those on low incomes. A key part of our longer-term development strategy has involved providing free access to a wide range of the services we fund and those we run for example, through the BFI Player, our Mediatheque and our websites, to free public screenings and broadcast partnerships. In addition to meeting our social responsibilities, the BFI also considers its impact on local communities, a diverse range of audiences, provides work experience and employment opportunities and works with schools, local authorities and many other organisations.

The BFI directly supports the distribution and exhibition of film through National Lottery non-commercial film culture from all parts of the world, both these interventions give the public access to a diversity of film culture which would not otherwise be available. Th support and directly make available a wide range of titles on all other platforms.

k, and this range ensures we deliver the maximum public benefit for our charitable resources. The BFI activities which deliver public benefit are described in more detail in the pages of this report.

Complaints

The BFI has in place a procedure for handling complaints and welcomes feedback from members of the public and representatives of other organisations.

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During the year, the BFI received 78 complaints via its customer enquiry service (96 in 2019-20).

No complaints were accepted for investigation by the Parliamentary Ombudsman (0 in 2019-20 also).

In terms of summary:

2020-21 2020-21 2019-20 2019-20
The number of complaints accepted
for investigation by the Parliamentary
Ombudsman in the year;		 0 0
The number of investigations reported
on by the Parliamentary Ombudsman
in the year and the percentage of those
reports where the complaint was
upheld in full, in part; or not upheld		 In full: 0 In full: 0
In part: 0 In part: 0
Not upheld: 0 Not upheld: 0
The number of Ombudsman
recommendations complied with and
not complied with.		 n/a n/a

Complaints and feedback helps the BFI to identify opportunities to make better use of their resources, or to deliver services in a more effective way.

If any customer is dissatisfied with a service that the BFI has provided or feel they have been treated unfairly, they may wish to make a complaint.

provide feedback or to make a complaint and tells customers what they can expect from us if you do.

Depending on the area of activity, feedback and complaints will be handled slightly differently; however the BFI works to a set of standard guiding principles:

  1. Feedback and Complaints are an important way for the BFI to be accountable to the public, as well as providing valuable prompts to review organisational performance and the conduct of people that work within and for it.

  2. If the BFI has got something wrong, it will apologise and take prompt action to put the matter right. If it can resolve your complaint by clarifying its position, or explaining its decision making process it will do so.

  3. Will be open and honest and ensure that customers are not disadvantaged in their future dealings as a result of the complaint.

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  1. Will respect privacy and ensure that complaints are treated confidentially.

The Complaints Procedure was reviewed in 2020-21, taking on board previous customer feedback, case analysis and considering best practice.

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ENVIRONMENTAL SUSTAINABILITY AT THE BFI

Greenhouse Gas Emissions

It is well known that greenhouse gas emissions have a strong correlation to activity. The Pandemic has had a significant impact on our activities both in-venue and at our archive sites with many staff furloughed and both the BFI Southbank venue and head office were closed for half of the year. Our actual Estate KWh consumption reflects this and is down 28% year on year. Correspondingly, carbon emissions are down 32%.

----- Start of picture text -----
BFI Carbon Emissions (Kg CO2e)
4,000,000
3,500,000
3,000,000
2,500,000
2,000,000
1,500,000
1,000,000
500,000
0
17-18 18-19 19-20 20-21
BK GD SS SB IMAX
----- End of picture text -----

Just under half of the BFI Estate serves the purpose of collections Storage and therefore its energy demand is not reduced with activity. All of the BFIs electricity is sourced through EDF on a clean renewable tariff.

In terms of the Estate, we have made several improvements which will yield energy savings next year including LED lighting upgrades at the National Archive in Berkhamsted and at BFI Southbank. Refurbishment work at the National Archive has also seen the introduction of invertor and variable speed drives for our chilled water system.

Travel emissions relating to business travel were drastically reduced (by 91%) due to government imposed travel restrictions and work from home advice. We hope to realise some of this reduction on an ongoing basis with the likely introduction of a hybrid home/office working model.

Waste

Our waste production was reduced by 84% this year. This is a direct result of reduced on-site activity and venue, restaurant and office closures. Both of our waste providers operate a zero to landfill policy.

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Below is a graph of waste production over the last 4 years that also shows recycling to non-recycled ratios. Our average recycling rates are at approximately 70%

----- Start of picture text -----
Recycling Ratio CO2e
15,000
10,000
5,000
-
17-18 18-19 19-20 20-21
Non-recycling Recycling
----- End of picture text -----

Finite Resource Consumption

Paper Consumption was negligible during 2020-2021 period. This reflects the move to a more remote and digital work method. We are currently re-tendering our printed materials contract where we are insisting on high standards of print sustainability. Our in-venue programme notes offer will also become digitally available in 2021-22.

----- Start of picture text -----
Water Use m3
25,000.00
20,000.00
15,000.00
10,000.00
5,000.00
-
17-18 18-19 19-20 20-21
BK GD SS SB IMAX
----- End of picture text -----

Water Consumption across the estate was reduced by 53% due to the muchreduced activity at some sites. The above chart shows the water consumption fluctuation over the BFI estate:

Further Initiatives

2020-21 saw more progress at the BFI in the field of sustainability. This may have been at a slower pace than anticipated due to the diversion of much attention into responding relationship with the living world. As nature regained a precarious bit of ground during

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global lockdowns, BFI staff at the National Archive in Berkhamsted encountered wild deer on the estate, and staff shared photos of the living world in their gardens and on their daily walks via our new daily bulletin.

In September we updated our sustainability policy to reflect our heightened awareness of the climate and ecological emergency, using this moment to announce our ambition to hit net zero carbon emissions by 2025. Advances made towards this goal during the year included the installation of a dual electric vehicle charging station at Berkhamsted, reducing reliance on fossil fuels. The upgrading of internal and external lighting to LED and introduction of invertor technology at BFI Southbank and at the National Archive will

In September 2020, we launched the landmark report A Screen New Deal in partnership with BAFTA albert and leading global engineering and design firm specialist Arup. This report shared innovation and knowledge about what truly sustainable production could look like: new ways of working on set and on location, our approach to materials and resources and the innovation happening in other industries that we can learn from. It sets out a route map for positive action to achieve sustainable practices that support wellbeing, environmental restoration and economic prosperity. A Screen New Deal was launched with a series of impactful online events from BAFTA and is proving a major contribution to developing sustainable production practice in the UK.

We also worked with our partner Doc Society on their Green Documentary Protocol, which provides filmmakers with a new framework to assess, mitigate and improve their environmental impact. BAFTA albert provided training in carbon literacy to 180 BFI staff, out working with environmental content onscreen to the BFI NETWORK Talent Executives across the UK. In November, BFI NETWORK the climate crisis in exciting, unexpected ways. Five microshorts will be made through and much more work on sustainability in the film industry in the year to come.

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TABLE 1 - GREENHOUSE GAS EMISSIONS 2020-21 Measurement
Scope 1 - Direct GHG emissions Non-Financial Indicators (tCO2e) Total gross emissions: Scope 1 566 tCO2e
Emissions from: Gas 522 tCO2e
Oil 0 tCO2e
Fuel (including LPG) 44 tCO2e
Scope 2 - Energy indirect emissions Non-Financial Indicators (tCO2e) Total gross emissions: Scope 2 1,218 tCO2e
Emissions from: Electricity 1,218 tCO2e
Scope 3 - Official travel emissions Non-Financial Indicators (tCO2e) Total gross emissions: Scope 3 5 tCO2e
Emissions from: Domestic business travel 5 tCO2e
Scope 1 & Scope 2 Non-Financial Indicators -
Related Energy Consumption (kWh)		 Total Electricity 5,223,769 kWh
Electricity Renewable 5,223,769 kWh
Non-Renewable 0 kWh
Gas 2,837,796 kWh
LPG 175,591 kWh
Other 0 kWh
Scope 1, Scope 2 & Scope 3 Financial Indicators (£) Expenditure on energy 805,180 £
Expenditure on accredited offsets 0 £
Expenditure on official domestic business travel 9,059 £
TABLE 2 - WASTE 2020-21 Measurement
Non-Financial Indicators (tonnes)
(tonnes)		 Total waste disposed 83.90 tonnes
Hazardous waste disposed 0.00 tonnes
Non-hazardous waste disposed Landfill 0.00 tonnes
Reused/recycled 62.99 tonnes
Composted 0.00 tonnes
Incinerated with energy recovery 20.91 tonnes
Incinerated without energy recovery 0.00 tonnes
Financial Indicators (£) Total waste disposal cost 26,921.00 £
Hazardous waste disposal cost £
Non-hazardous waste disposal cost Landfill £
Reused/recycled £
Composted £
Incinerated with energy recovery £
Incinerated without energy recovery £

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TABLE 3 - FINITE RESOURCE CONSUMPTION 2020-21 Measuremen
t
Non-Financial Indicators (m3)
3)		 Water consumption
(Office estate)		 Supplied 334 m3
Abstracted 0 m3
Collected 0 m3
Water consumption
(Non-office Estate)		 Supplied 9,038 m3
Abstracted 0 m3
Collected 0 m3
Non-Financial Indicators
(Number of reams of paper)		 Paper consumption - A4
Paper consumption - A3		 Supplied 51 Reams of
paper
Supplied 0 Reams of
paper
Financial Indicators (£'000) Water Supply costs (Office estate) 5,323 £
Water Supply costs (Non-office estate) 33,324 £
Paper costs (A4 & A3) 136 £

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HOW THE BFI IS GOVERNED

The BFI is governed Charter. The Governors, who are also the trustees of the Charity, now submit their annual report and the audited financial statements for the year ended 31 March 2021. In preparing the annual report and financial statements of the Charity, the Governors have adopted the Accounting and Reporting by Charities: Statement of Recommended Practice, Charities SORP (FRS 102).

Governors

Governors who were in post for at least part of the financial year 2020 21 or at the date of signing these accounts:

Josh Berger CBE[1] Michael Birshan Pat Butler[2]

Pete Czernin[3] Idris Elba OBE

Gerry Fox[4]

Jay Hunt

J. Timothy Richards[5] Jonathan Ross OBE[6] Robin Saunders Andrew M Smith DL Phil Stokes

Eleanor Whitley

Andrea Wong[7]

2020-21 saw the end of Josh Berger number of longstanding Governors expired. We would like to record our gratitude for dedicated service and contribution while on the Board.

1 Term ended 15 November 2020. 2 Term ended 15 February 2021. 3 Term ended 28 January 2021. 4 Term ended 25 February 2021.

5 Term as a Governor ended 14 May 14 2020. Term as Chair commenced on 16 February 2021 6 Term expired 27 August 2021.

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2021 was also a moment when we welcomed Tim Richards as Chair of the BFI. A - pandemic landscape.

Methods of Appointment

The Chair and Governors of the BFI are appointed by the Secretary of State for Digital, Culture, Media and Sport pursuant a process regulated by the Office of the Commissioner for Public Appointments. Governors are required to comply with the Principles of Public life as described in the Cabinet Office Code of Conduct for Board Members of Public Bodies.

The Board of Governors reserves one place on the Board for a Member Governor. This appointment is subject to approval by the Board of Governors.

Governor may only serve two terms in office. Newly appointed Governors receive a letter of appointment and induction documents which together address, amongst other things, duties, period of appointment, time commitment, remuneration, performance and their responsibilities and duties as Charitable Trustees. Governors have broad experience and expertise in the areas of film, television, the moving image generally, business and strategy and education. All Governors are part-time, unremunerated non -executives. The Board of Governors has corporate responsibility for:

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Board Assessment

The Board undertakes a formal and rigorous evaluation of its own performance and that of its committees and individual Governors on a bi-annual basis.

Organisational Structure

The Board of Governors delegates specific responsibilities to its Committees. Recommendations made by Committees are presented to the Board as a whole for approval.

A brief description of each Committee and its function is given below:

Audit, Risk & Governance This committee reviews the effectiveness of the processes, structures, and controls used to direct, manage and account for the financial and business affairs of the BFI. The Audit, Risk and Governance Committee consider all internal and external audit reports and recommendations.

Finance This Committee is responsible for overseeing the budgetary, assurance and value for money processes within the BFI.

Remuneration This Committee determines and keeps under review the levels of pay, and the terms and conditions of service, for the Chief Executive and other senior managers.

Composition of the Committee during the year was:

Audit, Risk & Governance Phil Stokes (Chair) Andrew M Smith DL Charles Cecil MBE (Non-Governor Member) Sukie Kooner (Non-Governor Member)

Finance Pat Butler (Chair) Michael Birshan Pete Czernin Robin Saunders Remuneration Josh Berger (Chair) Pat Butler

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J. Timothy Richards

Phil Stokes

The Secretary to the Board of Governors and its committees is Iain Thomson.

Board of Governors Attendance 2020-21

The number of BFI Board meetings held in the 2020-21 financial year was 11 and the

%
Josh Berger CBE 8 of 8 100
Michael Birshan 10 of 11 90
Pat Butler 8 of 10 72
Pete Czernin 9 of 10 90
Idris Elba OBE 5 of 11 45
Gerry Fox 9 of 9 100
Jay Hunt 10 of 11 90
J. Timothy Richards 5 of 5 100
Jonathan Ross OBE 2 of 11 18
Robin Saunders 11 of 11 100
Andrew M Smith DL 11 of 11 100
Phil Stokes 11 of 11 100
Eleanor Whitley 10 of 11 90
Andrea Wong 10 of 10 100

All Governors are required to complete a declaration of any potential related party interests and details of any transactions with these related parties is reported in note 30 of the Charity and Group financial statements.

Audit, Risk and Governance Committee Attendance 2020-21

The number of Audit Risk and Governance Committee meetings held in the 2020-21

Phil Stokes (Chair) 4 of 4
Andrew M Smith DL 4 of 4
Sukie Kooner (Non-Governor Member) 4 of 4
Charles Cecil MBE (Non-Governor Member) 4 of 4

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Executive

The Board of Governors employs a Chief Executive.

During the year under review, the Board undertook an extensive recruitment process to replace Amanda Nevill who left the BFI on 13 February 2020. The process culminated in the appointment of Ben Roberts, who had previously held the position of Deputy Chief Executive. Ben leads an executive team that during the year consisted of:

Ben Roberts Chief Executive Ed Humphrey Director of Digital and Ventures Harriet Finney[8] Director of External Affairs David Parkhill[9] Director of Finance and Resources Heather Stewart[10] Creative Director of BFI Francesca Vinti Director of Development

The Executive makes day-to-day management decisions on behalf of the Board of Governors under the Financial Procedures approved by the Board.

Better Payment Practice Code

The BFI attempts to abide by the Better Payment Practice Code and in particular to settle bills in accordance with contract. Invoices are normally settled within our The average payment terms taken were 30 days (2020: 20).

General Data Protection Regulation (GDPR)

During the year to 31 March 2021, the BFI:

8 Appointed Deputy CEO and Director of Corporate and Industry Affairs on 17 May 2021.

9 Retired 31 October 2021.

10 Resigned 30 September 2021.

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considered with the introduction of the Varonis software to assist with Data Subject requests.

Speaking Up Policy and Procedure

Included within the updated Financial Procedures Manual (2018) is a Speaking Up (Whistleblowing) Policy & Procedure the BFI is committed to the highest possible standards of openness, probity and accountability. The purpose of this policy is to encourage reporting of suspected wrongdoing and provide clear guidance on: (i) the steps staff should take if they have concerns; (ii) how staff raising concerns will be supported; and (iii) what will happen after such concerns are raised. This policy also seeks to reassure staff that they should be able to raise genuine concerns without fear of reprisals, even if they turn out to be mistaken.

This policy was consulted upon with our recognised trade unions and is in line with the BFI's legal obligations. It covers all BFI staff plus other workers such as consultants, contractors, and agency workers.

Disclosure of information to the auditors

So far as the Accounting Officer and each person who was a Governor at the date of approving this report is aware, there is no relevant audit information, being information needed by the auditor in connection with preparing its report, of which the auditor is unaware. Having made enquiries of fellow Governors, the Chief Executive and the obliged to take as a Governor/Accounting Officer in order to make himself/herself aware of any relevant information and to establish that the auditor is aware of that information.

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REMUNERATION and PEOPLE REPORT

The Remuneration Committee

The Board of the BFI is responsible for determining the remuneration of the Chief Executive and senior staff. In the year ending 31 March 2021, it discharged this responsibility through the cycle of Board meetings.

In addition the Board is supported by the Remuneration Committee which meets annually (or further if required) to review and set senior salaries, authorised within its terms of reference, to obtain independent professional advice if considered necessary. The meeting for 2020-21 was held on 21 January 2021. The Remuneration Committee comprises of a Chair, who is also Chair of the BFI Governors, and up to 2 other members of the Board or co-opted members, who are each appointed for a period of up to three years.

The members during the year were:

J. Timothy Richards[11] Josh Berger[12] Pat Butler[13] Phil Stokes

Remuneration Framework

Governors are not entitled to draw any remuneration for their time spent working as a Trustee of the BFI, although they are entitled to reimbursement of expenses incurred in discharging their duties.

In determining appropriate levels of remuneration for senior staff, the BFI follows the retain suitably qualified senior staff, and salaries are based on the minimum required to recruit, retain and motivate senior staff of appropriate calibre.

All staff including the Chief Executive, are entitled to membership of the BFI staff pension scheme (either Local Government Pension Scheme (LGPS) operated by the London Pension Fund Authority (LPFA), which is a defined benefit scheme, or a defined contribution scheme operated by Legal and General depending on start date). Further details of the schemes can be found in note 8 to the BFI Group financial statements.

11 Appointed Chair 16 February 2021.

12 Term expired 6 November 2020.

13 Interim Chair of the Remuneration Committee November 2020-February 2021. Term expired 15 February 2021.

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The staff pay bill for each year is subject to review by the Finance Committee, the Board of Governors and the DCMS, under HM Treasury guidelines and limits for public sector pay.

Appointments of Board of Governors

The Chair and Governors of the BFI are appointed by the Secretary of State for Digital, Culture, Med Public Appointments. Governors are appointed for a term of not more than four years, with one Governor being elected by the membership of the BFI. Governors may stand for two successive terms of office. There is no period of notice required for resignation from the Board.

No members of senior management were employed under fixed term contracts as at 31 March 2021. The period of notice required for termination of contract is no greater than six months.

Audited Information

No Governor drew any remuneration in the year. No payments were made in the year for services (2020: £nil). As part of their oversight duties as Trustees, copies of all books and DVD/Blu-Ray releases published by the BFI during the year are made available to all Governors.

Senior Staff Remuneration

benefits and thus should not be equated to take home pay. Because of the

simple reflection of any cost of living award (COLA).

organisational COLA may tip some roles into a higher band.

Senior staff are members of the same pension schemes and on the same terms as staff, and all staff who are members of the defined benefit Local Government Pension Scheme (LPFA) accrue pension benefits on the same basis.

benefits relative to that year and assessing the total value assuming they are paid over a typical twenty years of retirement.

In the year to 31 March 2021, all senior staff except for Harriet Finney were members of the LPFA defined benefit scheme.

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The increase in pension benefits for senior staff who are members of the LPFA arise from three sources:

The pension benefits accrued during the year are calculated by:

Year on year the main distorting factor is CPI as the impact of changes in CPI is greater the longer the period of service and thus the benefit accrued.

Depending on the underlying LPFA assumptions and the age of the individual on a year by year comparison the pension benefits accrued during the year can be an increase or a reduction compared to that of the prior year.

Remuneration (including pension benefits) for the senior staff for the year:

Total
salary for
the year
ended 31
March
2021
(2020)		 Bonuses
attributable
for the year
ended 31
March 2021
(2020)		 Benefits
in Kind
for the
year
ended 31
March
2021
(2020)		 Pension
benefits in
the year
ended 31
March
2021
(2020)		 Total
remunerati
on
for the year
ended 31
March
2021
(2020)
Nearest
£100
Ben Roberts
CEO and
Accounting
Officer		 150-155
(150-155)		 -
(5-10)		 100
(100)		 25-30
(15-20)		 175-180
(175-180)
David Parkhill
Director of
Finance and
Resources		 125-130
(130-135)		 -
(-)		 100
(100)		 40-45
(40-45)		 170-175
(170-175)

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Total
salary for
the year
ended 31
March
2021
(2020)		 Bonuses
attributable
for the year
ended 31
March 2021
(2020)		 Benefits
in Kind
for the
year
ended 31
March
2021
(2020)		 Pension
benefits in
the year
ended 31
March
2021
(2020)		 Total
remunerati
on
for the year
ended 31
March
2021
(2020)
Nearest
£100
Harriet
Finney
Director of
External
Affairs		 115-120
(105-110)		 -
(-)		 100
(100)		 N/A
(N/A)		 115-120
(105-110)
Ed Humphrey
Director of
Digital and
Ventures		 115-120
(120-125)		 10-15
(15-20)		 100
(100)		 20-25
(20-25)		 150-155
(150-155)
Heather
Stewart
Creative
Director		 125-130
(125-130)		 -
(-)		 100
(100)		 35-40
(30-35)		 160-165
(160-165)
Francesca
Vinti
Director of
Development		 105-110
(105-110)		 -
(10-15)		 100
(100)		 35-40
(45-50)		 145-150
(155-160)
Amanda
Nevill
Chief
Executive and
Accounting
Officer14		 10-15
(150-155)		 -
(5
10)		 -
(100)		 5-10
(135-140)		 15-20
(300-305)

Pension contributions during the year were made to defined contribution schemes for:

Contributions paid Contributions paid
2020-21 2019-20
Harriet Finney 8,499 6,713
Director of External Affairs

14 Resigned 14 February 2020. The full year equivalent salary is £150-£155k. The remuneration in 2020-21 reflects the amounts due relating to the three month notice period.

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Included in the above is remuneration for senior staff in the year which is attributable to lottery for the year ending 31 March 2021. This is recharged as part of our lottery funded operations and thus contained within expenditure in the Lottery Financial Statements for the year ending 31 March 2021.

44% of the remuneration Ben Roberts and David Parkhill has been attributed to lottery for the year (2020: 51%) with the proportion of total income attributed to lottery being used as the baseline.

Benefits in kind

All members of BFI staff are entitled to receive: up to £100 contribution towards gym membership per annum; up to 12 free tickets per month at the BFI Southbank cinemas; restaurant and the BFI London IMAX, ranging from 10-70%; and interest free loans for travel season tickets, bicycle and computer purchases and dental treatment. Staff whose contracts transferred from UKFC may opt to receive a contractual payment of £250 for cinema tickets per annum in place of the BFI Southbank ticket entitlement. Staff on BFI contracts receive a monthly copy of Sight and Sound.

Senior staff pension arrangements

The following senior staff were members of the LPFA scheme at 31 March 2021:

Real increase in
accrued pension
benefits 2020-21		 Attributable
pension accrued
at 65 at 31
March 2021 (or
date left the BFI
if earlier)		 Cash
Equivalent
Transfer
Value
(CETV)
as at 31
March
2020		 CETV as
at 31
March
2021 (or
at date
left the
BFI if
earlier)		 Real
increase in
CETV after
adjustment
for inflation
etc. in
2020-21
Ed Humphrey
Director of Digital
and Ventures		 0-2.5
(lump sum: 0-2.5)		 5-10
(lump sum: 0-5)		 95 115 15-20
David Parkhill
Director of Finance
and Resources		 2.5-5
(lump sum 0-2.5)		 15-20
(lump sum: 0-5)		 290 331 35-40
Ben Roberts
DCEO/Chief
Executive and
Accounting Officer		 0-2.5
(lump sum: 0-2.5)		 15-20
(lump sum: 0-5)		 178 211 30-35

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Real increase in
accrued pension
benefits 2020-21		 Attributable
pension accrued
at 65 at 31
March 2021 (or
date left the BFI
if earlier)		 Cash
Equivalent
Transfer
Value
(CETV)
as at 31
March
2020		 CETV as
at 31
March
2021 (or
at date
left the
BFI if
earlier)		 Real
increase in
CETV after
adjustment
for inflation
etc. in
2020-21
Heather Stewart
Creative Director		 2.5-5
(lump sum 0-2.5)		 60-65
(lump sum: 95-
100)		 1,197 1,251 45-50
Francesca Vinti
Director of
Development		 0-2.5
(lump sum: 0-2.5)		 30-35
(lump sum: 15-20)		 418 462 40-45

These staff cover both Lottery and Grant-in-Aid and other funded activities.

The accrued pensions are the amounts eligible at retirement if the staff member left service at the relevant date. The transfer values do not represent a sum paid or payable to the individual, but rather a potential liability of the pension scheme. They have been calculated using assumptions certified by a qualified actuary.

Senior staff numbers and costs

The number of senior staff by number and band (core salary plus any bonus) is:

Chief Executive and other executive staff at 31 March 2021

Salary Banding 2021 (Number) 2020 (Number)
£160,000 - £169,999 - 1
£150,000 - £159,999 1 1
£140,000 - £149,999 - -
£130,000 - £139,999 1 2
£120,000 - £129,999 2 1
£110,000 - £119,999 2 1
£100,000 - £109,999 - 1
£90,000 - £99,999 - -
£80,000 - £89,999 - -

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Other senior staff

Salary Banding 2021 (Number) 2020 (Number)
£100,000-109,999 1 1
£90,000 - £99,999 7 4
£80,000 - £89,999 17 19
£70,000 - £79,999 19 21
£60,000 - £69,999 23 20

Staff number and costs (including on-costs)

2021 2021 2020 2020
Number Number
Average no of permanent staff during
the year		 497 29,716 504 29,754
Average no of other staff engaged on
objectives of the organisation		 7 421 8 442

Off Payroll Consultancy Engagements

During the year ended 31 March 2021 the BFI had 11 off payroll engagements totalling £447,000 (2020:10 £403,000) for more than £245 per day (2020: £245 per day), that lasted longer than 6 months and amounted to £20,000 or more. These have been subject to a risk based assessment as to whether assurance is required that individuals are paying their correct tax and, where necessary, that assurance has been sought.

Termination payments

The termination payments payable to employees were:

Cost of redundancies
redundancy policies)		 Number of
compulsory
redundancies		 Number of
compulsory
redundancies		 Number of
voluntary
redundancies		 Number of
voluntary
redundancies		 Total Total
2021 2020 2021 2020 2021 2020
<£10,000 - - - - - -
£10,000-£25,000 - - - - - -
£25,000-£50,000 - - 1 2 1 2
£50,000-£100,000 - - 2 1 2 1
£150,000-£200,000 - - - - - -

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Cost of redundancies
redundancy policies)		 Number of
compulsory
redundancies		 Number of
compulsory
redundancies		 Number of
voluntary
redundancies		 Number of
voluntary
redundancies		 Total Total
2021 2020 2021 2020 2021 2020
£201,000 > 1 - - - 1 -
No of exit packages 1 - 3 3 4 3
269 - 202 127 471 127

Hutton Review of Fair Pay

The BFI is required to disclose the relationship between the remuneration of the highest-paid member of the Executive team their organisation and the median remuneration of the org

The banded remuneration of the Chief Executive Officer in the financial year was £150,000-£155,000 (2020: £150,000-£155,000). This was 4.3 times (2020: 4.4) the median remuneration of the workforce, which was £35,622 (2020: £35,025). The median remuneration does not include short-term agency staff.

Total remuneration includes salary, non-consolidated performance-related pay and benefits-in-kind. It does not include employer pension contributions and the cash equivalent transfer value of pensions.

The range of remuneration was £23,000-£151,000 (2020: £23,000-£170,000).

Our People (Unaudited Information)

Diversity and Inclusion

The BFI is committed to supporting and promoting diversity and inclusion through all our people activities and approaches du

Our profile and our action plan:

Our range of initiatives are externally published within our gender pay gap action plan on the intersectionality of our people.

Our reported gender pay gaps (in favour of men) are:

MEAN PAY
GAP		 MEDIAN PAY
GAP		 FEMALE % MALE %
31-03-21 3.1% 0% 54.6% 45.4%

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MEAN PAY
GAP		 MEDIAN PAY
GAP		 FEMALE % MALE %
31-03-20 1.9% 0% 52.6% 47.4%
31-03-19 -0.02% 3.9% 53% 47%

Our Profile as at 31 March 2021:

SELF-
IDENTIFIED
(31-03-21)		 SELF-
IDENTIFIED
(31-03-20)		 SELF-
IDENTIFIED
(31-03-19)		 OUR
DATA
GAPS		 OUR
TARGETS
Disability 8.6% 9.0% 8.6% 12.8% 12%
Ethnicity
(Ethnically
diverse)		 16.7% 16.2% 15.5% 0% 40% in
urban
areas;
36%
overall
Gender
(Women)		 54.6% 52.6% 53% 0% 50%
Sexual
Orientation
(LGBTQ+)		 13% 13.6% 11.7% 21.1% 10%

We are working to close our data gaps to ensure that our reporting better reflects who we are and our initiatives both target support for our current people and help us to improve our representation across the BFI. Our targets in our under represented areas are designed to challenge us to find innovative ways to meet them within a low core turnover (unplanned approx. 10% in a non COVID year, 3.6% in 20/21) and an average length of service of 9.6 years, which along with our 0.8% time lost to sickness absence reflect our high level of people engagement.

Our 2020-21 People Initiatives included:

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selection language and access. We work with the following recruitment sites to encourage ethnically diverse candidates: We Are POCC; and SocialFixt.

Health & Wellbeing

89

returning to site were given training on the new working practices and controls as well as COVID Vulnerability Screening. Additional controls or precautions were put in place for any higher risk employees including clinical grade masks, increased segregation or alternative duties.

66 people accessed advice or counselling from our Employee Assistance Programme in 2020-21. Advice and support was sought on a variety of work and personal issues including financial, child care and counselling services.

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CORPORATE INFORMATION

British Film Institute

The British Film Institute is incorporated by Royal Charter and is registered in England and Wales as a charity, number 287780.

Registered Office: 21 Stephen Street, London W1T 1LN www.bfi.org.uk

Auditor

Comptroller and Auditor General National Audit Office 157-197 Buckingham Palace Road, London SW1W 9SP

Bankers

Lloyds Bank plc 113-117 Oxford Street, London W1D 2HW

Internal auditors

BDO 55 Baker Street, London, W1U 7EU

Solicitors

Farrer & Co

Approval of Annual Report

This annual report includes information that the BFI is required to disclose in accordance with the Government Financial Reporting Manual (FReM) and accounts direction in a Strategic Report for the National Lottery activities. A separate report has therefore not been prepared.

The Annual Report, including the Remuneration Report, was approved by the Board of Governors for signature on 25 November 2021.

Phil Stokes Chair, Audit, Risk and Governance Committee BFI Governor

Ben Roberts Chief Executive

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GOVERNANCE STATEMENT

Scope of Responsibility

How the BFI is governed is covered on pages 74 to 79 . The Board of Governors is aware of the requirements of the HM Treasury Corporate Governance Code and work is continuing to ensure compliance.

As Accounting Officer and as Chair of the Board of Governors, we have responsibility for maintaining a sound system of internal control that supports the achievement of policies, aims and objectives set by the Department for Digital, Culture, Media and Sport (DCMS), whilst safeassets for which we are responsible in accordance with the responsibilities assigned to us in Managing Public Money and as Trustees of the Charity. The BFI complies with the HM Treasury Corporate Governance Code to the extent relevant to a Charity and National Lottery distributing body.

Agreement with the DCMS and the Management Statement and Financial Memorandum, for leading and managing the work of the BFI to fulfil its policies, aims and objectives, and upholding its values. The Accounting Officer reports to the Board of Governors of the BFI and we formally meet regularly with DCMS.

The purpose of the system of internal control

The system of internal control is designed to manage to a reasonable level rather than to eliminate the risk of failure to achieve policies, aims and objectives; it can therefore only provide reasonable and not absolute assurance of effectiveness.

The system of internal control is based on an ongoing process designed to identify and prioritise the risks to the achievement of BFI policies, aims and objectives, to evaluate the likelihood of those risks being realised and should they be realised, to manage them efficiently, effectively and economically. The system of internal control includes adequate arrangements for detecting and responding to inefficiency, conflict of interest and fraud, and prioritises those risks associated with the custody of assets and potential loss of Exchequer and National Lottery grants. The system of internal control has been in place for the year ended 31 March 202 1 and up to the date of approval of the annual report and financial statements, and accords with Treasury guidance.

Capacity to handle risk

As Accounting Officer and Chair of the Board of Governors we have overall re supported in its implementation by the Senior Management Team and staff who are trained and equipped to assess and manage risk in a way appropriate to their authority and duties. Attendance at Board of Governors meetings in 2020-21 is detailed at page 77 .

92

The Audit, Risk and Governance Committee, chaired during the year by Phil Stokes, gives independent advice and guidance to us, in our roles as Accounting Officer and Chair, and to the Board of Governors as a whole, on the adequacy of audit arrangements (both internal and external), on the implications of assurances provided in respect of risk and control at the BFI and oversees the work of the internal auditors, as well as providing guidance as to best practice. Attendance at Audit, Risk and Governance Committee meetings in 2020-21 is detailed at page 77 .

The Remuneration Committee provide oversight and approval of remuneration and performance for senior staff members including the Accounting Officer.

Further advice and guidance as to best practice is received from the internal and external auditors (who attend meetings of the Audit, Risk and Governance Committee), the DCMS, and other comparable organisations.

Terms of reference for the Audit, Risk and Governance Committee and the Remuneration Committee are reviewed by the Board of Governors and are held by the Board Secretary.

The risk and control framework

assessment, limitation and mitigation of risk in the achievement of our objectives.

The BFI has incorporated risk management in planning and decision making and maintains an organisation-wide risk register. Policy and operational risks both in the organisation and from external factors are identified through our business planning cycle and the annual operational planning cycle, and are evaluated by the Executive Team. We also consider the risks associated with holding and safeguarding information for operational or financial reporting purposes.

As at the 31 March 2021 the risk register as noted by the Executive Team included 42 corporate risks; these were considered as either time-sensitive or perennial risks.

The most significant are:

93

NATURE OF RISK IMPACT MITIGATION
Due to COVID-19, closure of BFI offices,
venues and activities resulting in programme
and services not being delivered and
subsequent loss of self-generated income		 £1.2m (in 2020-
21 financial
year)		 Business Continuity/DR Plan in operation;
Financial planning undertaken - review of all expenditure and
expenditure; working with Government to minimise financial risk
effectively as planned Reputation Strong Executive Leadership and continued rollout of Diversity
Standards across all BFI National Lottery activities; Workforce
targets have been finalised for each Executive Director to own and
action plan their delivery; regularly monitored and reviewed
The BFI does not secure level of funding and
support to deliver its priorities		 0 -10%
of GIA		 Engaging across Government on the role and activities of the BFI
and how the BFI can deliver against the wider Government priorities
There is a period of uncertainty in 2021/22 in
delivery of BFI2022 and the next Strategic
Plan		 Operational In consultation with DCMS; monitoring and evaluation exercise
underway re review of BFI2022 activities
The BFI is perceived not to be delivering UK-
wide		 Reputational As detailed in BFI2022, the BFI is developing a UK-wide strategy
which will help to identify how film outside London can be better
served. On-going and continued monitoring of activity and
performance

94

Risk management and internal control are embedded in the processes of the organisation and are considered and reviewed on a regular basis by management. For example, the National Lottery Finance Committee (LFC), who ultimately sign off on National Lottery commitments, consisted of representatives of the relevant fund, finance and business affairs and was independently chaired by the Accounting Officer or the Director of Finance and Resources. Any perceived risks arising in making an award were thus discussed at the time the funding decision was made and appropriate mitigating action taken, whilst allowing decision-making, oversight and control to be maintained of the decisions by the respective funds. The committee was updated on the progress of the funded projects to allow timely action to mitigate risks, protect funds and ensure that the ultimate purpose of the award is fulfilled.

For the regularly funded organisations, such as Creative England, Film London and Into Film, alongside regular oversight and monitoring, a series of regular formal governance meetings were held with the recipients throughout the year to discuss progress against key performance and risk indicators incorporated in their business plans and funding agreements.

Stephens), operated to standards set out in the Public Sector Internal Audit Standards

In 2020-21 internal audit reports covered:

Team, the Audit, Governance and Risk Committee and are approved by the Accounting Officer.

In line with Cabinet Office guidance in relation to information risk, the Finance Director is the Senior Information Risk Owner. Working with the Internal Auditor, all the systems and databases operated by the BFI are kept under review and periodic updates provided to the Audit, Governance and Risk Committee.

In addition, the BFI has in place a wide range of policies, for instance relating to corporate governance, conflicts of interest, financial management (including fraud), health and safety, training and development and information technology. These are periodically reviewed and updated.

95

The internal communications process ensures that all staff are informed about key decisions on a timely basis through appropriate means. There is also an external communications strategy that ensures stakeholders, Parliament, press, funded organisations and projects, the industry at large, and members of the general public receive appropriate and reliable information.

Progress in achieving objectives set in the strategic plan is monitored by the Board and Senior Management. The Board receive appropriate regular financial reporting, enabling monitoring against financial targets.

Review of effectiveness

The Board is responsible for considering its performance and reviewing its effectiveness, including assessing the quality of the information it receives on an ongoing basis, and judging that it is of a satisfactory standard. Papers and reports are concise, relevant and timely. Th financial positions, forecasts, risks and performance against strategic goals at their scheduled meetings.

As Accounting Officer and Chair of the Board of Governors, we have responsibility for reviewing the effectiveness of the system of internal control. Our review is informed by the work of the internal auditors and the Senior Management within the BFI who have responsibility for the development and maintenance of the internal control framework, and comment made by the external auditors in their management letters and other reports. We have been advised on the implications of the results of our review of the effectiveness of the system of internal control by the Board and the Audit, Risk and Governance Committee, and a plan to address any weaknesses and ensure continuous improvement is in place.

In respect of risk management the responsibilities of the Executive Team are to:

The Board receives reports from the Chair of the Audit, Risk and Governance Committee, and from the Accounting Officer and managers, on the steps taken to manage risks, including progress reports on key activities and projects, as well as on new risks that may arise both internally within the organisation and due to external factors such as the political and economic environment of both the industry and the public sector.

The Internal Auditor provides audit reports on the areas of activity within the BFI. The reports include the Internal Au

recommendations for improvement.

96

At the Audit, Risk and Governance Committee meeting on 24 November 2021 , the Internal Auditors gave their annual opinion. They concluded that there was an adequate and effective system of governance, risk management and internal control to address the risk that management's objectives are not fully achieved.

We take assurance from assessment of the risk register, from the business and budget planning cycle, from the decision approval and operational procedures and from the reviews of, and assurance received from, delegate bodies that appropriate risk management procedures are in place.

Additionality

National Lottery applications and assessment processes are designed to ensure that awards made will be in line with the achievement of policies, aims and objectives set by the DCMS and the mission and values of the BFI, as well as the requirements of the National Lottery etc. Act 1993 as amended. The BFI considers that National Lottery funding is distinct from government funding and adds value. Although it does not substitute for Exchequer expenditure, where appropriate it complements government and other programmes, policies and funding.

We can confirm that in our opinion:

97

The BFI will continue to strive to improve the systems of internal control in place in relation to its management, and processes to maximise our operational efficiency as a National Lottery Distributor.

Phil Stokes Chair , Audit, Risk and Governance Committee BFI Governor

Ben Roberts, Chief Executive

98

Registered charity no: 287780

BRITISH FILM INSTITUTE GROUP AND NATIONAL LOTTERY ANNUAL REPORT AND FINANCIAL STATEMENTS 2020-21

GROUP FINANCIAL STATEMENTS

For the year ended 31 March 2021

99

BFI GROUP AND CHARITY FINANCIAL STATEMENTS

Under both the Royal Charter and the National Lottery etc Act 1993 (as amended by the National Lottery Act 1998), the BFI is required to prepare a statement of accounts for the financial period in the form and on the basis directed by the Secretary of State for Digital, Culture, Media and Sport, with the consent of HM Treasury.

The accounts are to be prepared on an accruals basis and to show a true and fair view of the BFI's state of affairs at the year end and of our incoming resources, resources expended and cash flows for the financial year.

The Grant-in-Aid accounts are also prepared so as to comply with the Charities SORP 2019, and the Lottery distribution accounts are prepared in line with the Government Financial Reporting Manual.

Both sets of accounts are also expected to:

The Principal Accounting Officer of DCMS has designated the Chief Executive as the -int in chapter three of Managing Public Money. Formally, the Accounting Officer is the person who Parliament calls to account for stewardship of its resources.

The Accounting Officer signing off these accounts has gained assurance in the following ways:

The Accounting Officer confirms that, as far as he is aware, there is no relevant audit

100

taken all the steps that he ought to have taken to make himself aware of any relevant s are aware of that information.

The Accounting Officer confirms that, as far as he is aware, the annual report and accounts as a whole is fair, balanced and understandable and he takes responsibility for the annual report and accounts and the judgement required for determining that it is fair, balanced and understandable.

In approving these accounts, Governors have complied with their duty under section 11 of the Charities Act 2011 to have due regard to guidance published by the Charity Commission.

A copy of the Grant-in-Aid and Lottery distribution accounts directions are available from the Accounting Officer, BFI, 21 Stephen Street, London, W1T 1LN.

The Governors as the trustees of the Charity are responsible for preparing the and the group and charity financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). The Governors delegate power and responsibility to the Chief Executive for the day to day operation of the organisation. As Accounting Officer for government reporting purposes, the Chief Executive is also responsible for reporting to DCMS, one of our main funders.

The law applicable to charities in England and Wales requires the Governors and Chief Executive to prepare accounts for each financial year which give a true and fair view of the state of affairs of the group and charity and of the incoming resources and application of resources, changes in funds, and cash flows for the financial year. In preparing these financial statements, the Governors and Chief Executive are required to:

The Governors and Chief Executive are responsible for keeping proper accounting records which are such as to disclose, with reasonable accuracy, the financial position of the Charity at any time, and to enable them as trustees to ensure that the accounts comply with applicable law. The Governors and Chief Executive are also responsible accordance with the Charities Act 2011; National National Lottery etc. Act 1993, the Royal Charter and Managing Public Money issued by HM Treasury, and hence for taking reasonable steps for the prevention and detection of error, fraud and other

101

irregularities.

The Governors and Chief Executive are responsible for the maintenance and integrity of the charity and financial information included on the charity's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

The Governors and Chief Executive confirm that they have met the responsibilities set out above and complied with the requirements for preparing the accounts. The charity and group financial statements set out on pages 69 to 89, have been compiled from and are in accordance with the financial records maintained by the Governors and Chief Executive.

The Board of Governors has approved a Code of Conduct which reflects the principles laid down in the Code of Best Practice for board members of Public Bodies and maintains a Register of Interests of board members. This Register is available for request to the Board Secretary.

Phil Stokes, Chair , Audit, Risk and Governance Committee BFI Governor

Ben Roberts Chief Executive

102

THE AUDIT REPORT OF THE COMPTROLLER AND AUDITOR GENERAL TO THE GOVERNORS OF THE BRITISH FILM INSTITUTE

Opinion on financial statements

I have audited the financial statements of the British Film Institute for the year ended 31 March 2021 under the Royal Charter and the Secretary of State Directions thereunder. The financial statements comprise: the Consolidated and Charity Statement of Financial Activities, the Consolidated and Charity Balance Sheet, the Consolidated Cash Flow Statement and the related notes, including the significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom accounting standards including FRS 102, the Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

I have also audited the information in the Remuneration Report that is described in that report as having been audited.

In my opinion:

Opinion on regularity

In my opinion, in all material respects the income and expenditure recorded in the financial statements have been applied to the purposes intended by Parliament and the financial transactions recorded in the financial statements conform to the authorities which govern them.

Basis for opinions

I conducted my audit in accordance with International Standards on Auditing (ISAs) (UK), applicable law and . My responsibilities under those standards are statements section of my certificate.

Those standards require me and my staff to comply with the Financial Reporting standards relevant to listed entities. I am independent of the British Film Institute in accordance with the ethical requirements that are relevant to my audit of the financial statements in the UK. My staff and I have fulfilled our other ethical responsibilities in accordance with these requirements.

103

I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion

Conclusions relating to going concern

of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work I have performed, I have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the British Film Institute'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.

My responsibilities and the responsibilities of the Governors and Accounting Officer with respect to going concern are described in the relevant sections of this report.

The going concern basis of accounting for the British Film Institute is adopted in consideration of the requirements set out in the Government Financial Reporting Manual (FReM), which require entities to adopt the going concern basis of accounting in the preparation of the financial statements where it anticipated that the services which they provide will continue into the future.

Other Information

The other information comprises information included in the Annual report but does not Accounting Officer are responsible for the other information. My opinion on the financial statements does not cover the other information and except to the extent otherwise explicitly stated in my report, I do not express any form of assurance conclusion thereon. In connection with my audit of the financial statements, my responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or my knowledge obtained in the audit or otherwise appears to be materially misstated. If I identify such material inconsistencies or apparent material misstatements, I am required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work I have performed, I conclude that there is a material misstatement of this other information, I am required to report that fact.

I have nothing to report in this regard.

Opinion on other matters

In my opinion:

 the parts of the Remuneration Report to be audited have been properly prepared in accordance with Secretary of State directions made under the Royal Charter;

104

Matters on which I report by exception

In the light of the knowledge and understanding of the British Film Institute and its environment obtained in the course of the audit, I have not identified material misstatements in the Annual report.

I have nothing to report in respect of the following matters which I report to you if, in my opinion:

Responsibilities of the Governors and Accounting Officer

Governors and the Accounting Officer are responsible for:

My responsibility is to audit the financial statements in accordance with the Royal Charter.

My objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a certificate that includes my opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the

105

aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

I design procedures in line with my responsibilities, outlined above, to detect material misstatements in respect of non-compliance with laws and regulation, including fraud.

My procedures included the following:

In addition to the above, my procedures to respond to identified risks included the following:

106

I also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members including internal specialists and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

A further description of my responsibilities for the audit of the financial statements is www.frc.org.uk/auditorsresponsibilities. This description forms part of my certificate.

In addition, I am required to obtain evidence sufficient to give reasonable assurance that the income and expenditure reported in the financial statements have been applied to the purposes intended by Parliament and the financial transactions conform to the authorities which govern them.

I communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that I identify during my audit.

Report

I have no observations to make on these financial statements.

Gareth Davies

Date 14 December 2021

Comptroller and Auditor General

National Audit Office 157-197 Buckingham Palace Road Victoria London SW1W 9SP

107

BRITISH FILM INSTITUTE CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES YEAR ENDED 31 MARCH 2021

Note
Income
Income and endowments from charitable
activities (earned income)
Audiences
3
Learning & Skills
3
Talent
3
Leadership
3
Income from donations and legacies
Voluntary Income
Lottery proceeds
3 & 15
Lottery recoupment income
3
Revenue Grant in Aid funding
2
Capital Grant in Aid funding
2
Other grants, legacies and donations
3
Donated services and facilities
4
Investment income
5
Total Income
Expenditure on
Charitable activities
Audiences
6
Learning & Skills
6
Talent
6
Leadership
6
Total charitable activities
Costs of raising funds
6
Total expenditure
Net expenditure
Gross transfers between funds
24
Net expenditure and net movement in
funds before other recognised gains and losses
Other recognised gains / (losses)
Actuarial gains / (losses) on defined benefit pension
scheme
8
Gains / (losses) on the revaluation of fixed assets
10
Net movement in funds
Reconciliation of funds
Total funds brought forward
24
Total funds carried forward
24		 2021 Restated
Non-Lottery
Total
Unrestricted
Restricted
Non-Lottery
£'000
£'000
£'000
13,784
-
13,784
79
-
79
-
-
-
-
-
-
-
-
-
-
-
-
16,649
55,596
72,245
-
1,987
1,987
1,798
5,319
7,117
-
356
356
17
-
17		 Lottery
Restricted
£'000
-
-
-
-
49,073
806
-
-
154
-
10		 2021
Total
£'000
13,784
79
-
-
49,073
806
72,245
1,987
7,271
356
27		 2020
Total
£'000
22,996
230
7
-
48,258
1,576
33,918
1,007
3,767
1,698
65
32,327
63,258
95,585		 50,043 145,628 113,522
(35,174)
(57,106)
(92,280)
(1,829)
(1,200)
(3,029)
(1,329)
(3,992)
(5,321)
(500)
(136)
(636)		 (9,762)
(11,457)
(31,259)
(1,008)		 (102,042)
(14,486)
(36,580)
(1,644)		 (75,998)
(17,860)
(27,273)
(1,318)
(38,832)
(62,434)
(101,266)
(1,859)
-
(1,859)		 (53,486)
-		 (154,752)
(1,859)		 (122,449)
(2,260)
(1,859)
-
(1,859)
(40,691)
(62,434)
(103,125)		 -
(53,486)		 (1,859)
(156,611)		 (2,260)
(124,709)
(8,364)
824
(7,540)
3,128
385
3,513		 (3,443)
(3,513)		 (10,983)
-		 (11,187)
-
(5,236)
1,209
(4,027)
(28,092)
-
(28,092)
(1,415)
-
(1,415)		 (6,956)
(2,052)
-		 (10,983)
(30,144)
(1,415)		 (11,187)
7,148
2,433
(34,743)
1,209
(33,534)
20,864
4,797
25,661		 (9,008)
33,977		 (42,542)
59,638		 (1,606)
61,244
(13,879)
6,006
(7,873)		 24,969 17,096 59,638

All gains and losses recognised in the year are included in this Statement of Financial Activities and all activities are classified as continuing. The accompanying notes 1 to 32 form part of these Accounts.

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BRITISH FILM INSTITUTE STATEMENT OF FINANCIAL ACTIVITIES - CHARITY ONLY YEAR ENDED 31 MARCH 2021

Note
Income
Income and endowments from charitable
activities (earned income)
Audiences
3
Learning & Skills
3
Talent
3
Leadership
3
Income from donations and legacies
Voluntary Income
Lottery proceeds
3 & 15
Lottery recoupment income
3
Revenue Grant in Aid funding
2
Capital Grant in Aid funding
2
Other grants, legacies and donations
3
Donated services and facilities
4
Investment income
5
Total Income
Expenditure on
Charitable activities
Audiences
6
Learning & Skills
6
Talent
6
Leadership
6
Total charitable activities
Costs of raising funds
6
Total expenditure
Net expenditure
Gross transfers between funds
24
Net expenditure and net movement in
funds before other recognised gains and losses
Other recognised gains / (losses)
Actuarial gains / (losses) on defined benefit pension
scheme
8
Gains / (losses) on the revaluation of fixed assets
10
Net movement in funds
Reconciliation of funds
Total funds brought forward
24
Total funds carried forward		 2021 Restated
Non-Lottery
Total
Unrestricted
Restricted
Non-Lottery
£'000
£'000
£'000
10,883
-
10,883
79
-
79
-
-
-
-
-
-
-
-
-
-
-
-
16,649
55,596
72,245
-
1,987
1,987
2,719
5,319
8,038
-
356
356
13
-
13		 Lottery
Restricted
£'000
-
-
-
-
49,073
806
-
-
154
-
10		 2021
Total
£'000
10,883
79
-
-
49,073
806
72,245
1,987
8,192
356
23		 2020
Total
£'000
14,281
230
7
-
48,258
1,576
33,918
1,007
9,414
1,698
52
30,343
63,258
93,601		 50,043 143,644 110,441
(33,031)
(57,106)
(90,137)
(1,829)
(1,200)
(3,029)
(1,329)
(3,992)
(5,321)
(500)
(136)
(636)		 (9,762)
(11,457)
(31,259)
(1,008)		 (99,899)
(14,486)
(36,580)
(1,644)		 (72,760)
(17,860)
(27,273)
(1,318)
(36,689)
(62,434)
(99,123)
(1,859)
-
(1,859)		 (53,486)
-		 (152,609)
(1,859)		 (119,211)
(2,260)
(1,859)
-
(1,859)
(38,548)
(62,434)
(100,982)		 -
(53,486)		 (1,859)
(154,468)		 (2,260)
(121,471)
(8,205)
824
(7,381)
3,128
385
3,513		 (3,443)
(3,513)		 (10,824)
-		 (11,030)
-
(5,077)
1,209
(3,868)
(28,092)
-
(28,092)
(1,415)
-
(1,415)		 (6,956)
(2,052)
-		 (10,824)
(30,144)
(1,415)		 (11,030)
7,148
2,433
(34,584)
1,209
(33,375)
21,008
4,797
25,805		 (9,008)
33,977		 (42,383)
59,782		 (1,449)
61,231
(13,576)
6,006
(7,570)		 24,969 17,399 59,782

All gains and losses recognised in the year are included in this Statement of Financial Activities and all activities are classified as continuing. The accompanying notes 1 to 32 form part of these Accounts.

109

BRITISH FILM INSTITUTE

CONSOLIDATED AND CHARITY BALANCE SHEET As at 31 MARCH 2021

Note
Fixed assets:
Intangible fixed assets
9
Tangible fixed assets
10
Investments
12
Total fixed assets
Non-current assets:
Film Rights
14
Current assets:
Stocks & work in progress
16
Debtors
17
Film Rights
14
National Lottery Distribution Fund
15
Cash at bank and in hand
18
Total current assets
Liabilities:
Creditors: amounts falling due within one year
20
Provisions
22
Net current assets
Total assets less current liabilities
Defined benefit pension scheme net liability
8
Total net assets
The Funds of the Charity:
Restricted income funds
Restricted income funds excluding Lottery and pensions liability
24
Lottery reserve
Lottery share of pension reserve
24
Total restricted funds
Unrestricted income funds
Unrestricted income funds excluding pensions asset/liability
Unrestricted fixed asset revaluation reserve
Pension reserve
Total unrestricted funds
24
Total charity funds
24		 Group
Group
2021
2020
£'000
£'000
40
197
75,057
78,960
-
-		 Charity
Charity
2021
2020
£'000
£'000
-
-
75,057
78,960
1,443
1,443
75,097
79,157		 76,500
80,403
9,228
10,532
572
569
30,737
8,677
2,331
2,805
53,120
53,804
32,557
23,411		 9,228
10,532
383
379
31,425
10,133
2,331
2,805
53,120
53,804
30,734
20,345
119,317
89,266		 117,993
87,466
(88,571)
(53,387)
(3,166)
(3,887)		 (88,347)
(52,689)
(3,166)
(3,887)
27,580
31,992
111,905
121,681
(94,809)
(62,043)		 26,480
30,890
112,208
121,825
(94,809)
(62,043)
17,096
59,638		 17,399
59,782
6,006
4,797
29,919
36,650
(4,950)
(2,673)		 (1,903)
(1,903)
6,006
4,797
29,919
36,650
(4,950)
(2,673)
24,969
33,977		 24,969
33,977
30,975
38,774		 30,975
38,774
33,065
33,659
42,915
46,575		 33,368
33,803
42,915
46,575
75,980
80,234
(89,859)
(59,370)		 76,283
80,378
(89,859)
(59,370)
(13,879)
20,864		 (13,576)
21,008
17,096
59,638		 17,399
59,782

The accompanying notes 1 to 32 form part of these Accounts.

The Governors and Chief Executive Officer of the BFI, registered charity number 287780, approved these financial statements and authorised their signature on 10 December 2021.

Phil Stokes Chair, Audit, Risk and Governance Committee BFI Governor

Ben Roberts Chief Executive

110

BRITISH FILM INSTITUTE

CONSOLIDATED STATEMENT OF CASH FLOWS YEAR ENDED 31 MARCH 2021

BRITISH FILM INSTITUTE
CONSOLIDATED STATEMENT OF CASH FLOWS
YEAR ENDED 31 MARCH 2021
Notes
Net (expenditure) / income
Less interest receivable
5
Depreciation
10
Amortisation of goodwill
9
(Increase) / decrease in film rights - due after one year
14
(Increase) / decrease in film rights - due within one year
14
(Increase) / decrease in stocks
16
(Increase) / decrease in debtors
17
Increase / (decrease) in creditors due within one year
20
Increase / (decrease) in provisions due within one year
22
Non-cash pension movements
8
Cash flows from operating activities
Cash flows from investing activities
National Lottery Distribution Fund income received
15
National Lottery Distribution Fund cash drawn down
15
Interest receivable
5
Purchase of tangible fixed assets
10
Cash flows from investing activities
Change in cash and cash equivalents in the year
Cash and Cash equivalents at the beginning of the year
Cash and Cash equivalents at the end of the year
18 & 24		 2021 Restated
2020
Unrestricted
Restricted
Total
£'000
£'000
£'000
(8,364)
(2,619)
(10,983)
(17)
(10)
(27)
5,616
-
5,616
157
-
157
-
1,304
1,304
-
474
474
(3)
-
(3)
(1,400)
(20,660)
(22,060)
3,736
31,448
35,184
-
(721)
(721)
2,398
225
2,623		 Unrestricted
Restricted
Total
£'000
£'000
£'000
(10,677)
(510)
(11,187)
(33)
(32)
(65)
6,607
-
6,607
157
-
157
-
(2,283)
(2,283)
-
2,954
2,954
(78)
-
(78)
(2,029)
1,293
(736)
1,875
13,153
15,028
-
1,052
1,052
4,069
425
4,494
2,123
9,441
11,564
-
(49,073)
(49,073)
-
49,757
49,757
17
10
27
-
(3,128)
(3,128)		 (109)
16,052
15,943
-
(48,257)
(48,257)
-
47,210
47,210
33
32
65
(43)
(1,379)
(1,422)
17
(2,434)
(2,417)
2,140
7,007
9,147
2,059
21,351
23,410
4,199
28,358
32,557		 (10)
(2,394)
(2,404)
(119)
13,658
13,539
2,178
7,693
9,871
2,059
21,351
23,410

The accompanying notes 1 to 32 form part of these Accounts.

111

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2021

1. ACCOUNTING POLICIES

The principal accounting policies are summarised below. The accounting policies have been applied consistently throughout the year and the preceding year.

Basis of preparation

The financial statements of the BFI are prepared under the historical cost convention, as modified for revaluation of certain categories of fixed assets and in accordance with the Charities Act, Accounting and Reporting by Charities: Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015), the Accounts Direction issued by the Secretary of State for Digital, Culture, Media and Sport effective from April 2018 and applicable accounting standards.

The financial statements have also been prepared in accordance with the Government Financial Reporting Manual (FReM) issued by HM Treasury, to the extent that they clarify or build on the requirements of the Charities SORP (FRS102). The accounting policies contained in the FReM apply International Financial Reporting Standards as adapted or interpreted for the public sector context. Where the FReM permits a choice of accounting policy, the accounting policy which is judged to be most appropriate to the particular circumstances of the BFI for the purpose of giving a true and fair view has been selected. The particular policies adopted by the BFI are described below and they have been applied consistently in dealing with items that are considered material to the accounts.

The Statement of Financial Activities (SOFA) and Balance Sheet consolidate the financial statements of the Charity, including its Lottery distribution activities, and all its subsidiary undertakings (see note 12 for details of subsidiaries and associate or jointly controlled entities). The results of the subsidiaries are consolidated on a line by line basis within the SOFA. A separate SOFA has also been presented for the Charity. The balance sheet and related notes show the assets and liabilities of the Group as well as the Charity. Separate accounts are also prepared for the BFI's Lottery distribution activities as required under the National Lottery etc. Act 1993 and these are attached to the consolidated accounts.

Estimates and judgements

Estimates and judgements have been used in the production of these accounts, notably with regard to the valuation of Fixed Assets, Film Rights and Pensions as at the year end, the allocation of support costs to the charitable activities and the recharge of operating costs to the Lottery activities. Details of the valuation of fixed assets are set out in the accounting policy Tangible fixed assets below and in note 10. Tangible Fixed Assets. Details of the valuation of film rights are set out in the Film Rights accounting policy below and in note 14. Film Rights. Details of the pension schemes are set out in the Pensions accounting policy below and in note 8. Pensions. The allocation of support costs is set out in the accounting policy Expenditure below and detailed in note 6. Expenditure. The recharge of operating costs to the Lottery activities are as set out in the accounting policy Apportioned costs below.

Most of the London Pension Fund’s assets have quoted prices in active markets, but there are unquoted property, infrastructure and private equity assets, with BFI’s share of assets other than equities and cash amounting to an estimated £48.9m (2020 £45.0m). The property and infrastructure assets are subject to valuation by external valuers and despite the ongoing impact of Covid-19 on the market and wider economy, the valuers have advised the pension fund that they are satisfied with the valuation of the assets at 31 March 2021. The actuaries have also given due consideration to the impact of Covid-19 on mortality rates and a prudent approach has been taken, following the guidance of the Institute and Faculty of Actuaries 'Continuous Mortality Investigation' 2020. Details of life expectancy are detailed in note 8 Pensions. The Fund Actuary has changed their standard approach to setting the CPI assumption, to take account of RPI reform. The method for calculating the RPI assumption (on which the CPI assumption is based) has been updated, resulting in a reduction in the Defined Benefit Obligation (DBO) of £9.8m. In addition, the difference between CPI and RPI (the RPI-CPI wedge) has been updated, resulting in an increase in DBO of £18.1m. These changes are linked, and are based on pre-2030 and post-2030 rates.

Going concern

Covid-19 has had a significant impact on the operations of the British Film Institute, with our cinemas and shops required to close from the commencement of lockdown in March 2020 through to July 2020, and then the further lockdown from November 2020 until Spring 2021. The ongoing impact of Covid-19 remains uncertain due to the potential for further lockdowns to be required, as well as the impact on demand. Thanks to the support from government through its Job Retention Scheme, extended to 30 September 2021, and the Culture Recovery Fund, for which the BFI is both a beneficiary and a distributor to the independent cinema sector, the organisation has so far been shielded from the worst of the known financial impacts since the year end. Based on this additional support, our status as a Royal Charter body, Non-Departmental Public Body and National Lottery Distributor and in the light of the 2022 Comprehensive Spending Review, we have reasonable expectations of continuing trading within the funding available to the BFI and that there would continue to be sufficient cash to meet the BFI’s liabilities for at least 12 months from the date of signing the accounts.

112

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2021

1. ACCOUNTING POLICIES (CONTINUED)

Going concern (continued)

Much of the asset value of the BFI is in either restricted and/or long term fixed assets and pressure therefore remains on the underlying Charity. Excluding the restricted activities, the BFI recorded net expenditure (before gross transfers between funds and other recognised gains/losses) in the year of £10.98m (2020: net expenditure of £10.7m), albeit after non-cash transactions including depreciation of £5.6m (2020: £6.6m) and net non-cash pension charges of £2.6m (2020: £4.5m). The FRS102 pension liability has increased to £94.8m (2020: £62.0m) contributing to negative unrestricted reserves of £13.9m (2020: £20.9m). The pension liability is being addressed in the longer term with additional contributions being made to the London Pension Fund Authority, based on the triennial actuarial valuations, and these contributions are factored into our forward plans.

As at 31 March 2019, the latest actuarial valuation date, the deficit to be funded was £2.3m (2016: £9.6m) and this is being addressed over 5 years, subject to future triennial valuations. This is considerably less than the deficit in the accounts of £94.8m (2020: £62.0m) under FRS102 and the governors are satisfied that this approach is appropriate.

At the year end total reserves were £17.1m (2020: £59.6m) which included unrestricted cash balances of £4.2m (2020: £2.1m) and free reserves of £0.9m (2020: £1.1m) (note 24: Statement of Funds).

Charitable activities

The BFI engages in a diverse range of activities in order to meet its objects, which are described in more detail in the Governors' Report and the BFI's strategy BFI 2022. In the financial statements, the BFI categorises its activities across its four strategic priorities to further its charitable aims for the public benefit:

Audiences - great filmmaking for audiences everywhere.

Learning & Skills - giving everyone the educational opportunity to build a lifelong relationship with film. Talent - supporting creative and influential filmmakers whose work is admired throughout the world.

Leadership - to lead on public policy and advocacy for the UK film sector and promote a globally competitive UK film industry.

Accruals convention

Income and expenditure is generally accounted for when receivable/payable on an accruals basis except where accounting standards or other requirements apply, as set out in the following accounting policies.

Income and endowments

All income is included in the SOFA when the Charity is legally entitled to the income, entitlement is probable and the amount can be quantified with reasonable accuracy. The following specific policies apply to categories of income:

Income from charitable activities: includes a wide range of chargeable activities including sales of cinema tickets, DVDs, film and footage and sponsorship income and these are accounted for on an accruals basis.

113

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2021

1. ACCOUNTING POLICIES (CONTINUED)

Income and endowments (continued)

Lottery proceeds are the BFI's share of Lottery income as notified to the BFI by the National Lottery Distribution Fund (NLDF).

Lottery recoupment income is income from film rights in excess of the original value of the right and is taken to the SOFA as film recoupment income. Income is accounted for on a receivable basis. The exception to this is recoupment income because of the inherent difficulties in relating the income to a specific period in time. Recoupment income is therefore accounted for upon notification of amounts received by the BFI.

Donated services and facilities: including gifts in kind, are included in income and expenditure at the value to the Charity where this can be quantified (see note 4).

Grants and deferred income: whilst grants, including Grant-in-Aid, are typically accounted for in full upon receipt, where related to performance and specific deliverables, grants are accounted for as the Charity earns the right to consideration by its performance. Where income is received in advance of its recognition, it is deferred and included in creditors: amounts falling due within one year. Where entitlement occurs before income being received, the income is accrued. Capital grants are accounted for as income as soon as they are receivable. Grant-in-Aid refers to direct grants from the Department for Digital, Culture, Media and Sport for the general use of the BFI and also ring-fenced funding for other appropriate bodies delivering activities in accordance with the BFI's charitable objects.

Gift Aid is receivable from HM Revenue & Customs on certain donations which meet the relevant requirements and these are recognised on an accruals basis.

Film recoupment income

Income received from film rights is offset against the value of the film rights on the Balance Sheet.

Income in excess of the original value of the rights is taken to the SOFA as film recoupment income.

Receivables

Provisions for doubtful debts (provision for impairment) are raised on outstanding debts and rely on estimation methodologies and techniques to calculate the amount of the provision. Any movement in the provision in the year is taken to the SOFA within charitable expenditure.

Expenditure

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category concerned. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with use of the resources (see note 6). Costs of generating funds are fund-raising and publicity costs incurred in seeking voluntary contributions and do not include the cost of disseminating information in support of charitable activities.

114

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2021

1. ACCOUNTING POLICIES (CONTINUED)

Expenditure (continued)

Grant Awards

Grant expenditure is charged to the statement of financial activities in the year that the grants are awarded and, if relevant, in which funding for the grant is received from DCMS. In most circumstances this will be the same as the year in which the funded activities take place. However, in some cases grant expenditure is recognised in the accounts where the funded activity is due to take place in future years. Any amounts unpaid from grants at the year end are shown in the balance sheet as creditors. Grant commitments made in the year relating to future years’ activity as disclosed in note 27: Contingent Liabilities are not charged to the statement of financial activities, as they are contingent on receipt of Grant-in-Aid income, which is not certain until the year in which it is due.

The basis of reporting Lottery award commitments is laid out in the revised Accounts Direction from DCMS and the National Lottery etc. Act 1993, and continues to align with the reporting requirements of the Charities SORP. Where the BFI has made a firm offer of a grant and notified successful applicants, the award is accounted for within other creditors as a grant commitment. Where the BFI has agreed to make an award in respect of investing in a film rights project, these are not grants and are accounted for as set out below under financial instruments and film rights.

In line with our five year Business Plan, BFI 2022 some awards were made including funding for 2020-21. In line with the National Lottery Act etc. 1993 and the BFI Lottery Accounts Direction, which are consistent with the BFI's basis of preparation of accounts as outlined above, these awards were accounted for in full in the Statement of Financial Activities in the year in which the award was notified to the successful applicant.

Commitments payable within one year of the balance sheet date are recognised in the statement within creditors as current liabilities. Those payable more than one year from the balance sheet date are shown as creditors payable over more than one year, however, such commitments are unlikely in the usual course of business.

Awards made under the Lotteries Act Section 27 dispensation

Using the power granted by the Section 27 of the National Lotteries Act etc. 1993, in 2020-21 the Secretary of State did not object to a further award of £3,263,000 (201920: £2,275,000) to the BFI in relation to the Heritage 2022 project, as outlined in the BFI 2022 plan.

Under the same power the Secretary of State did not object to an award of £250,000 in 2020-21 and £900,000 in 2019-2020 to the BFI in relation to the London Film Festival. The awards were both made and fully paid within their respective financial years.

Apportioned costs

The BFI incurred costs which are shared between Lottery and the subsidiaries. The BFI as a charity is required to apportion costs in accordance with the principles of full cost recovery and the government's 'Managing Public Money' guidance. In addition to costs wholly attributable to Lottery activities, an assessment is made of the other costs attributable to Lottery activities incurred by service and other departments. This is based on a combination of head count, office space occupied, activity levels and additional expenditure incurred. These departments include Finance & Resources, External Affairs and the Chief Executive's Office. Direct costs are borne by the active subsidiaries of the BFI and in addition an appropriate share of staff costs and overheads based on BFI staff time spent on those activities.

Charitable expenditure on collections

The BFI has built the National Archive since its establishment in 1933, consisting of film and other related materials dating back to the 19th century. The BFI develops, cares for and interprets a collection that illustrates the art, history and impact of film, to be held in perpetuity for the public, for their use and for use by the BFI in pursuit of its objectives. The collection is one of the largest and most diverse collections in the world. It includes feature films, documentary and factual films, television programmes, artists film, photographic stills, posters, books and other related materials, held primarily for use in the BFI's activities and charitable objectives, as described in more detail in the Annual Report and below. The Collection Policy was most recently updated in November 2011 and can be found at www.bfi.org.uk. It documents our procedures for acquisition and disposal, documentation, conservation and access and describes our role in a national network of organisations that collect or provide access to film.

For the most part this collection has been acquired by donation, often with restricted usage rights, and as a result there is little in the way of purchase cost. There is also a lack of comparable market values, compounded by the diverse nature of the objects and the volume of the items held. In the opinion of the Governors, reliable information on cost or value is not available for the BFI's collection.

In the Governors' opinion, conventional valuation approaches lack sufficient reliability and any valuation is likely to incur significant costs that are likely to be onerous. Even if valuations could be obtained this would not be commensurate with any benefits to the BFI's management, curatorial staff, the public, or other users of the financial statements. For this reason the collections, large proportions of which were gifted to the BFI at nil cost and are incomparable in nature, are not recognised in the BFI's balance sheet.

All expenditure on acquiring, preserving and improving the collection is included in charitable expenditure in the year incurred. In the main, this expenditure is of a curatorial or restoration nature and the Governors are of the opinion that any value attributable to heritage assets or fixed assets would not be material. The collections also comprise donated materials that are not subject to formal valuation.

115

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2021

1. ACCOUNTING POLICIES (CONTINUED)

Heritage assets

Much of the BFI's collection is used, or expected to be used in the future, in its charitable activities. To the extent that the collection comprises heritage assets, there is an absence of reliable cost information, a diverse range of assets held, a lack of comparable market values and a complex mixture of intellectual property rights associated with the assets. As a result the Governors are of the opinion that valuation information cannot be obtained at a cost commensurate with the benefits to users of the financial statements and to the charity. Therefore the BFI has adopted a non-recognition approach.

Tangible fixed assets, depreciation and impairment

Expenditure on tangible fixed assets costing £5,000 or more and with a useful economic life of at least 3 years is capitalised and included at cost. Long leasehold land and buildings, together with some associated plant and fixtures, are included at fair value in accordance with the Charities SORP (FRS 102).

The BFI's long leasehold properties BFI Southbank and BFI London IMAX were revalued as at 31 March 2017 by appropriately qualified valuers, Deloitte LLP, in accordance with FRS 102: Section 17 - Property Plant and Equipment. The values at 31 March 2021 have been estimated using appropriate indexation from an independent expert body, resulting in a net decrease in value in the year of £1.4m (2020: increase of £2.3m).

The BFI's short leasehold properties in London and Berkhamsted have been subject to leasehold improvements. The values as at 31 March 2020 and 2021 have been estimated using appropriate indexation, resulting in a net decrease in value in the year of £0.2 m (2020: increase of £0.1m). The same indexation is applied to acquisitions, starting in the year following the acquisition.

Tangible fixed assets, depreciation and impairment (continued)

Revaluation is not applied to those classes of asset which are made up of low value and/or short useful economic life assets or where the historical cost is considered a reasonable approximation of fair value.

Depreciation is provided on all tangible fixed assets to write off the cost less estimated residual values over their expected useful economic lives. It is calculated on a straight line basis at the following rates from the month after acquisition to the month prior to disposal:

Long leasehold property 1-20% per annum
Short leasehold property improvements 5-20% per annum
Plant & fixtures valued with leasehold property 4-20% per annum
Computer and other IT equipment 5-25% per annum
Furniture, fixtures and fittings 4-20% per annum
Plant and machinery 4-25% per annum
Assets in the course of construction Depreciation commences upon completion of construction

The carrying value of fixed assets and their remaining useful economic life is reviewed at least annually. Where the carrying value is considered to be greater than the value of the asset to the activities of the Charity, an impairment charge will be made in the year to reflect the recoverable value.

Intangible fixed assets

Goodwill arising on consolidation represents the excess of the cost of acquisition over the Group's interest in the carrying value/fair value of the identifiable assets and liabilities of a subsidiary, associate or jointly controlled entity at the date of acquisition. Goodwill on acquisition of subsidiaries is separately disclosed. Goodwill is recognised as an asset and reviewed for impairment annually or on such other occasions that events or changes in circumstances indicate that it might be impaired. Any impairment is recognised immediately in the income statement and is not subsequently reversed. Goodwill is allocated to cash generating units for the purpose of impairment testing. Purchased goodwill arising on consolidation is amortised over the period of its expected useful economic life. This is considered to be a period of ten years from the date of acquisition.

Investments

Investments in subsidiaries, associate or jointly controlled entities are stated at cost less provision for impairment.

Financial instruments

The principal financial instruments are cash and holdings in the NLDF and film rights, under the definitions set out under FRS102. They are accounted for in line with the recognition and measurement criteria of IFRS9: Financial instruments, as set out below.

Other financial instruments include debtors and creditors that arise directly from Lottery and non-Lottery operations. The main risks arising from the financial instruments are interest rate risk, foreign currency risk and other price risk. Short term debtors are measured at transaction price, less any impairment. Foreign currency policy is stated below.

116

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2021

1. ACCOUNTING POLICIES (CONTINUED)

Film rights

Film rights represent investment awards paid and payable to filmmakers which are repayable under certain conditions. All advances to filmmakers are repayable under certain conditions. Where a feature film made with the assistance of the BFI is successfully released, the BFI is entitled to participate in revenues generated by that success. This can lead to repayment of the investment in full, together with a share of the profits generated by the film.

Under FRS102 film rights fall within the definition of Financial Instruments. Within that, they meet the definition of assets measured at fair value with gains and losses being recognised in the SOFA. The fair value, in line with definitions of International Financial Reporting Standard 9: Financial Instruments (IFRS 9), is based upon cash flows and models of future income that may be generated by the film right asset. The calculations behind these models are based upon external factors such as sales agents' estimates, actual sales made, and the recoupment order agreed in the financing contract between investors as well as internal factors such as the skills and expertise of management involved in these calculations and a review of the historic performance of the portfolio.

When an advance is made (satisfying the definition of an award liability) it is taken to the Balance Sheet initially at the full value of the award. An assessment is then made of the likely repayment of the award, if any, over the next seven financial years, with the valuation reduced to the extent that the repayment of the award is considered doubtful. The reduction is calculated either as standard percentage suggested by historic recoupment performance of that particular type of award, or based on the value suggested by future estimated receipts.

In subsequent years, the Film Rights valuations are reviewed to ensure that all revenues due are received and the valuation remains appropriate. The valuations are based on the best available information at the balance sheet date and the valuations will change over time. For instance, on production awards, the actual value of sales made to a territory may exceed or fall below the original sales estimate provided by the sales agent or the box office performance may exceed or fall below the initial projections following the release of a film.

Movements in value shown in the Statement of Financial Activity reflect the net effect of increases and decreases in values against film rights in the year. Any reduction may be reversed in part or in full if the valuation understates the fair value of the film rights. Advances for development and short film awards are fully adjusted to £nil in the year of the award, unless there is a reasonable expectation of repayment in the next seven financial years.

1. ACCOUNTING POLICIES (CONTINUED)

Film rights (continued)

If the valuation of the film rights is in excess of the amount of the award investment based on estimated recoupment over the next seven financial years, this is similarly recognised in the film rights valuation and released to income as the recoupment is received. In the context of the life of a film and its distribution cycle, seven years is felt to be a reasonable period over which a meaningful forecast can be taken, and is consistent with practice across the film industry.

Should the full amount of an award for film rights not be utilised, any unused element of the funding will be decommitted. If such a decommitment exceeds the fair value of the film, then any necessary adjustment will be released back to the SOFA so the remaining fair value reflects the revised investment value.

Stocks & work in progress

Stocks and work in progress are valued at the lower of cost and net realisable value. The former consist of goods held for resale and the latter expenditure on DVD and BluRay development costs carried forward and written off over the expected commercial life of the individual titles.

Rewarding Success Provision

The rewarding success initiative allows for a share of film recoupment income arising from lottery awards to be made available to UK Producers, Writers and Directors for their future film making activity. The funds held on behalf of film-makers ("the locked box") represents the monies held for this initiative at the balance sheet date and not yet drawn down and are included as Provisions on the Balance Sheet.

National Lottery Distribution Fund

Balances held in the National Lottery Distribution Fund (NLDF) remain under the stewardship of the Secretary of State for Digital, Culture, Media and Sport. The share of these balances attributable to the BFI is as shown in the financial statements at an estimate of market value and, at the balance sheet date, has been certified by the Secretary of State for Digital, Culture, Media and Sport as being available for distribution by the BFI in respect of current and future commitments. With the election to adopt the recognition and measurement criteria of IFRS9, funds are held as financial instruments held at amortised cost. As the investments are held with the Debt Management Account and the National Loans Fund, these are exempt from recognising stage 1 and stage 2 impairment so no expected credit losses have been calculated on these instruments.

The share of proceeds and investment returns attributed to the BFI has been treated as income within these financial statements.

117

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2021

1. ACCOUNTING POLICIES (CONTINUED)

Pension costs

For defined benefit pension schemes the amounts charged in expenditure are the service costs, gains and losses on settlements and curtailments, administration costs and net interest on the defined liability. The service costs are included as part of staff costs. Actuarial gains and losses are recognised in the SOFA as other recognised gains / (losses).

Defined benefit schemes are funded, with the assets of the scheme held separately from those of the Charity, in separate trustee-administered funds which are part of the London Pension Fund Authority (LPFA). The LPFA is a local government pension scheme and the BFI is an Admitted Body member. Pension scheme assets are measured at fair value and liabilities are measured on an actuarial basis using the projected unit method and discounted at a rate equivalent to the current rate of return on a highquality corporate bond of equivalent currency and term to the scheme liabilities. The actuarial valuations are obtained every three years and are updated at each balance sheet date. The resulting defined benefit asset or liability is presented separately after other net assets on the face of the balance sheet and in note 8: Pensions.

For defined contribution schemes, the amount charged to the SOFA in respect of pension costs and other post-retirement benefits is the contributions payable in the year. Differences between contributions payable in the year and contributions actually paid are shown as either accruals or prepayments in the balance sheet.

Operating and finance lease transactions

Payments made under operating leases are charged to the SOFA on a straight line basis over the lease term. There were no finance leases.

Fund accounting

Unrestricted funds are funds available for use at the discretion of the Governors in the furtherance of the general objectives of the BFI and which are not subject to externally imposed restrictions.

Restricted funds are funds to be used in accordance with specific restrictions imposed by donors. The aim and use of each restricted fund is set out in the notes to the accounts. Where the conditions have been met, for example to acquire fixed assets without ongoing restrictions, the related reserves are transferred to unrestricted reserves on the face of the Statement of Financial Activities.

Foreign currencies

Transactions in foreign currencies are recorded at the rate ruling on the date of the transaction. Monetary assets and liabilities are retranslated at the rate of exchange ruling at the balance sheet date and gains and losses charged/credited to the Statement of Financial Activities.

Tax Status (Group and Charity)

The BFI is a registered charity and as such is potentially exempt from taxation of its income and gains to the extent that they are applied to its charitable objectives.

Its subsidiaries' total taxable profits are either gifted to the Charity or tax losses have been utilised and therefore no tax is payable.

Deferred taxation follows the treatment of the item to which it is attributable and there are no deferred tax assets or liabilities recognised in these accounts.

Irrecoverable VAT is charged to the cost category to which it relates.

118

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2021

2. OTHER SIGNIFICANT TRANSACTIONS

a) Grant-in-Aid - DCMS

DCMS has been the BFI's largest source of funding, excluding Lottery income. They have therefore been included in this category in order to provide supplementary disclosure. During the year, the BFI had the following material transactions with DCMS:

Revenue Grant in Aid funding
Unrestricted
Revenue Grant in Aid funding
Restricted
DCMS GiA Revenu24001XX10
Capital Grant in Aid funding
DCMS GiA Capital24011XX11		 2021
£'000
16,649
55,596		 2020
£'000
14,736
19,182
72,245 33,918
1,987 1,007

Restricted Revenue Grant in Aid funding includes funds for Northern Ireland of £4.3m (2020: £4m), Education (Film Academies) of £1m (2020: £1m), Young Audience Content Fund of £18.8m (2020: £14.2m), Culture Recovery Fund £29.2m (2020: £Nil) and other funding of £2.2m - see Note 24.

The Reserves balances carried forward at the end of the year are £0.6m (2020: £0.3m) for restricted funds and £nil (2020: £nil) for unrestricted funds.

Grant-in-Aid is spent in accordance with the funding agreement between the BFI and DCMS. The common objectives are to:

b) Governors

The Governors neither received nor waived any emoluments during the year (2020: £nil). Governors expenses amounted to £nil in the year (2020: £nil). No governor claimed expenses during the year (2020: nil). No payments were made in the year for services (2020: £nil).

There were no material related party transactions involving Governors in their personal or business capacities other than Lottery and Grant-in-Aid awards disclosed in note 30: Related Parties.

The Charity has purchased insurance to indemnify the Governors against the consequences of any neglect or default on their part. The cost amounted to £7,950 (2020: £8,904), which includes cover for Governors and Officers of the Charity but also covered management liability, crime and employment practices liability for the organisation as a whole.

c ) BFI Trust

BFI Trust is an independent registered charity with objectives consistent with those of the BFI. During the year, the BFI had the following material transactions with BFI Trust:

2021 2020
£'000 £'000
Income from generated funds - Other grants, legacies and donations includes:
Grants receivable from BFI Trust Restricted 100 634
Unrestricted 1,040 -
Resources expended - Charitable activities includes:
Rental of leasehold premises (1,835) (1,835)

119

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2021

3. INCOME - GROUP

3. INCOME - GROUP
Unrestricted
2021
£'000
Income and endowments from charitable
activities (earned income)
Audiences
13,784
Learning & Skills
79
Talent
-
13,863
Income from Donations and legacies
Voluntary Income
Lottery proceeds
-
Lottery recoupment income
-
Revenue Grant in Aid funding
16,649
Capital Grant in Aid funding
24011XX11
-
Other grants, legacies and donations
1,798
Donated services and facilities
-
18,447
Investment income
17
Total Income
32,327
Unrestricted
2020
£'000
Income and endowments from charitable activities (earned income)
Audiences
22,996
Learning & Skills
230
Talent
7
23,233
Income from Donations and legacies
Voluntary Income
Lottery proceeds
-
Lottery recoupment income
-
Revenue Grant in Aid funding
14,736
Capital Grant in Aid funding
-
Other grants, legacies and donations
1,783
Donated services and facilities
-
16,519
Investment income
33
Total Income
39,785
Sponsorship and other income included in Income from charitable activities (earned income):
Sponsorship income, associated with the costs of generating voluntary income
Other income, associated with the costs of generating voluntary income
Costs of generating funds
Costs of generating voluntary income		 Unrestricted
2021
£'000
13,784
79
-		 Non-Lottery
Restricted
2021
£'000
-
-
-		 Lottery
Restricted
2021
£'000
-
-
-		 Total
2021
£'000
13,784
79
-
13,863
-
-
16,649
-
1,798
-		 -
-
-
55,596
1,987
5,319
356		 -
49,073
806
-
-
154
-		 13,863
49,073
806
72,245
1,987
7,271
356
18,447
17		 63,258
-		 50,033
10		 131,738
27
32,327 63,258 50,043 145,628
Unrestricted
2020
£'000
22,996
230
7		 Non-Lottery
Restricted
2020
£'000
-
-
-		 Lottery
Restricted
2020
£'000
-
-
-		 Total
2020
£'000
22,996
230
7
23,233
-
-
14,736
-
1,783
-		 -
-
-
19,182
1,007
1,912
1,698		 -
48,258
1,576
-
-
72
-		 23,233
48,258
1,576
33,918
1,007
3,767
1,698
16,519
33		 23,799
-		 49,906
32		 90,224
65
39,785 23,799 49,938 113,522
2021
£'000
1,624
-		 2020
£'000
1,685
405
1,624 2,090
(1,859) (2,260)

Costs of generating voluntary income is the staff and other costs of the in-house teams who source funding from individuals, trusts, foundations and corporations. In addition to Voluntary Income, income from charitable activities includes sponsorship income of £1,624,000 (2020: £1,685,000) raised by the teams. This income primarily relates to the corporate sponsorship of the BFI London Film Festival and BFI Flare film festival. In the year, expenditure was lower due mainly to the staging of the "Luminous" fundraising gala with associated income in the previous year.

120

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2021

4. DONATED SERVICES AND FACILITIES

4. DONATED SERVICES AND FACILITIES
Publicity and advertising
Buildings and facilities
Services and equipment hire
Food and drink
Other goods		 2021
£'000
355
-
-
1
-		 2020
£'000
1,022
337
276
20
42
356 1,697

Donated services and facilities are valued using information provided by the suppliers regarding market value.

5. INVESTMENT INCOME - GROUP Lottery 2021 Lottery 2020
Unrestricted Restricted Total Unrestricted Restricted Total
£'000 £'000 £'000 £'000 £'000 £'000
Bank interest receivable 17 10 27 33 32 65

Bank interest receivable was £27,000 (2020: £65,000) of which £17,000 was unrestricted bank interest income (2020: £33,000) and £10,000 was restricted bank interest income (2020: £32,000).

121

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2021

6. EXPENDITURE - GROUP

6. EXPENDITURE - GROUP
Audiences
Learning & Skills
Talent
Leadership
Costs of generating voluntary income
Total resources expended		 Direct
Costs
2021
£'000
(93,109)
(13,904)
(35,782)
(1,265)
(1,859)		 Allocated
Pension charges
2021
£'000
(4,564)
(307)
(652)
(289)
-		 Allocated
Support costs
2021
£'000
(4,369)
(275)
(146)
(90)
-		 Total
2021
£'000
(102,042)
(14,486)
(36,580)
(1,644)
(1,859)
(145,919) (5,812) (4,880) (156,611)
Audiences
Learning & Skills
Talent
Leadership
Costs of generating voluntary income
Total resources expended		 Direct
Costs
2020
£'000
(65,761)
(17,242)
(26,254)
(830)
(2,260)		 Allocated
Pension charges
2020
£'000
(5,655)
(388)
(886)
(386)
-		 Allocated
Support costs
2020
£'000
(4,582)
(230)
(133)
(102)
-		 Total
2020
£'000
(75,998)
(17,860)
(27,273)
(1,318)
(2,260)
(112,347) (7,315) (5,047) (124,709)

Expenditure on charitable activities was £154,753,000 (2020: £122,449,000) of which £38,833,000 was unrestricted (2020: £48,202,000), £62,434,000 was restricted (2020: £25,754,000) and £53,484,000 was Lottery funded restricted expenditure (2020: £48,493,000).

Support services, including staff and other costs which are allocated across the activities of the Charity, are shown in the allocated support costs column. The basis of allocation is as follows:

As part of the Governments support during the pandemic the BFI has been awarded £29.2m (2020: £nil) in aid from the Culture Recovery Fund to support independent cinemas (Audiences), of which £28.7m (2020: £nil) was used to make awards in the year.

Nature of cost
Allocation basis
IT and finance support
Combination of head count and departmental spend
Human resources
Head count
Premises and utilities
Combination of floor area and head count
Communication and marketing
Direct spend and percentage of income generated
Other overheads
Combination of time and department spend
Governance costs
Departmental spend
Total support
Pension cost (note 8)
Net revenue account cost
Governance costs:
Audit fees: Charity (excluding Lottery)
Audit fees: Lottery
Audit: subsidiaries (British Screen group of companies)
Audit: subsidiary (British Film Institute (Big Screen) Limited)
Audit: subsidiary (BFI Enterprise Limited)
Audit of UK Media Desk grant claim
Trustees costs
Corporate policy and planning
Total governance		 2021
£'000
(2,481)
(445)
(710)
(517)
(372)
(354)		 2020
£'000
(2,483)
(425)
(819)
(491)
(468)
(361)
(4,880) (5,047)
(5,812) (7,315)
2021
£'000
(97)
(52)
(6)
(5)
(8)
(4)
(1)
(181)		 2020
£'000
(98)
(52)
(5)
(5)
(5)
(7)
(8)
(181)
(354) (361)

Governance costs are allocated across the activities of the Charity and are included in the allocated support and governance costs column above. The basis of allocation is departmental spend on activities.

122

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2021

6. EXPENDITURE (continued)

Net resources expended before transfers are stated after charging: 2021 2020
£'000 £'000
Auditors' remuneration (analysed above) (172) (172)

Auditors' remuneration for the National Audit Office includes £nil fees for non audit services (2020: £nil). The National Audit Office provided audit services for the Charity and Lottery, with the subsidiary and other audits performed by Brebners LLP.

2021 2020
£'000 £'000
Foreign exchange gains / (losses) 1 (13)
Depreciation (5,616) (6,607)
Amortisation of goodwill 56001FA05 (157) (157)
2021 2020
£'000 £'000
Charges for operating leases:
Land and buildings (1,886) (1,873)
Plant & machinery (41) (41)
2021 2020
£'000 £'000
Film rights adjustments (19,430) (12,736)

The carrying value of the film rights reflects the extent to which full repayment of an advance, through actual receipts and the value of future estimated receipts, is considered doubtful. The valuation is reviewed on a rolling basis to ensure that fair value is maintained.

Grant-in-Aid awards

BFI has responsibility on behalf of DCMS for the administration of Grant-in-Aid awards made to third party and partner organisations in the film sector, and received additional funding for this.

Awards in the year were:
Creative England
Film London
Northern Ireland Screen: Irish Language Fund
Northern Ireland Screen: Ulster Scots Fund
Film Academy awards
Young Audience Content Fund		 2021
£'000
(300)
(1,974)
(3,180)
(1,143)
(713)
(17,909)		 2020
£'000
(300)
(367)
(3,000)
(1,000)
(726)
(13,240)
(25,219) (18,633)

In addition to the above further Grant-in-Aid awards were made to partner organisations on or before 31 March 2021 for funded activity commencing on or after 1 April 2021. These are disclosed in note 27: Contingent Liabilities.

Lottery awards
Full details of all Lottery commitments made in the year are shown in the accompanying Lottery financial statements.
Lottery - non-film rights awards included in the SOFA - Expenditure on Charitable activities
Heritage 2022 - award to the BFI - Gross transfers between funds, note 24: Statement of Funds
Film Festivals - award to BFI LFF - Gross transfers between funds, note 24: Statement of Funds
Lottery - non-film rights awards per Lottery Statement of Comprehensive Net Expenditure		 2021
£'000
(30,017)
(2,888)
(250)		 2020
£'000
(29,980)
(2,275)
(900)
(33,155) (33,155)

123

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2021

7. STAFF COSTS

Staff costs consists of:
Wages & salaries
Social security costs
Pension costs (see note 8)
Agency staff costs included in Wages & salaries above
Staff costs capitalised and not included above
The average number of full-time equivalent employees of the BFI during the year was:
Costs of generating voluntary income
Audiences
Learning & Skills
Talent
Leadership
Costs of generating voluntary income
Audiences
Learning & Skills
Talent
Leadership
Average number of full time equivalent Agency staff at the BFI during the year		 2021
Full Time
13
286
29
34
25		 2021
£'000
(23,154)
(2,313)
(4,249)		 2020
£'000
(22,230)
(2,319)
(5,647)
(29,716) (30,196)
(421) (442)
(89) (36)
2021
Part Time
4
81
8
10
7		 2021
Total
17
367
37
44
32
387 110 497
2020
Full Time
15
327
33
44
27		 2020
Part Time
2
43
4
6
3		 2020
Total
17
370
37
50
30
446 58 504
2021
Number
7		 2020
Number
8

124

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2021

7. STAFF COSTS (continued)

Higher paid employees

Higher paid employees
2021
£'000
Chief Executive - pay for the full year
B. Roberts
150
Executive Team Members (including the Chief Executive)
2021
Number
£160,000 - £169,999
-
£150,000 - £159,999
1
£140,000 - £149,999
-
£130,000 - £139,999
1
£120,000 - £129,999
2
£110,000 - £119,999
2
£100,000 - £109,999
-
£90,000 - £99,999
-
£80,000 - £89,999
-
Cost
£776,000
Other senior staff
£100,000 - £109,999
1
£90,000 - £99,999
7
£80,000 - £89,999
17
£70,000 - £79,999
19
£60,000 - £69,999
23
Cost
£5,093,000
Total Cost
£5,869,000
Including bonuses totalling £NIL (2020: £5,500). Employer's pension contributions for the year amounted to £23,000 (2020: £18,000).		 2021
£'000
150		 2020
£'000
160
2020
Number
1
1
-
2
1
1
1
-
-
£936,000
1
7
17
19
23
£5,093,000		 1
4
19
21
20
£4,934,000
£5,869,000 £5,870,000

Included in the above are 48 (2020: 51) staff who are ordinary members of the LPFA pension scheme. The amount of employer's pension contributions attributable to these staff amounted to £603,000 (2020: £469,000). There were 24 (2020: 18) staff who were members of defined contribution schemes. The amount of employer's pension contributions attributable to these staff amounted to £99,000 (2020: £74,000).

A number of Executive staff and other employees have interests in award applications which have been fully disclosed in note 30: Related Parties.

125

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2021

8. PENSIONS

The BFI is an admitted body to the LPFA, which provides a defined benefit pension scheme for the salaried employees of the Charity. It is a funded scheme and the assets are administered by trustees and are independent of the BFI. The related costs are assessed in accordance with the advice of professionally qualified actuaries. From 1 January 2014 the BFI also operates a defined contribution pension scheme which is available for all employees not already in the defined benefit scheme.

The BFI has accounted in full for pension benefits in the year ended 31 March 2021 under the requirements of FRS102. Therefore, as at 31 March 2021, a pension liability of £94,809,000 (2020: £62,043,000) is included in the BFI balance sheet. BFI’s agreed schedule of contributions was 15.4% of member employees’ salary per year plus a monetary amount of £385,000 (2020: £891,000).

In addition to the amounts payable for current members of the pension scheme, within this scheme the BFI has an unfunded liability to pay pensions to 36 (2020: 36) former employees and their spouses or dependents. The total actuarial valuation for this liability at 31 March 2021 is included in the pension provision.

For FRS 102 disclosure, the full valuation at 31 March 2021 has been updated by the actuaries, Barnett Waddingham, to assess the liabilities of the scheme as at 31 March 2021.

The most significant actuarial assumptions in this recent valuation are:
Rate of increase in prices
RPI
Rate of increase in prices
CPI
Rate of increase in salaries
Rate of increase in pensions in payment
Discount rate
Under the adopted mortality tables, the assumed life expectancy from age 65 are as
Life expectancy at age 65 of female aged 45
Life expectancy at age 65 of female aged 65
Life expectancy at age 65 of male aged 45
Life expectancy at age 65 of male aged 65
BFI share of net pension liability as at 31 March:
2021
£'000
Fair value of employer assets
121,020
Present value of scheme liabilities
(213,418)
Net underfunding in funded plans
(92,398)
Present value of unfunded liabilities
(2,411)
Net pension deficit
(94,809)
Assets - Split of Investments by Category
Assets whole fund
Equities
Target return funds
Infrastructure
Properties
Cash
Total
Analysis of the amount chargeable to expenditure under FRS102
Current service cost
Past service cost
Contributions in respect of defined contribution schemes
Sub-total reflected in Staff costs (note 7)
Administration expenses
Net Interest on the defined liability
Total expenditure		 The most significant actuarial assumptions in this recent valuation are:
Rate of increase in prices
RPI
Rate of increase in prices
CPI
Rate of increase in salaries
Rate of increase in pensions in payment
Discount rate
Under the adopted mortality tables, the assumed life expectancy from age 65 are as
Life expectancy at age 65 of female aged 45
Life expectancy at age 65 of female aged 65
Life expectancy at age 65 of male aged 45
Life expectancy at age 65 of male aged 65
BFI share of net pension liability as at 31 March:
2021
£'000
Fair value of employer assets
121,020
Present value of scheme liabilities
(213,418)
Net underfunding in funded plans
(92,398)
Present value of unfunded liabilities
(2,411)
Net pension deficit
(94,809)
Assets - Split of Investments by Category
Assets whole fund
Equities
Target return funds
Infrastructure
Properties
Cash
Total
Analysis of the amount chargeable to expenditure under FRS102
Current service cost
Past service cost
Contributions in respect of defined contribution schemes
Sub-total reflected in Staff costs (note 7)
Administration expenses
Net Interest on the defined liability
Total expenditure		 follows:
2020
£'000
104,704
(164,675)		 2019
£'000
109,847
(172,316)		 2021
%
Per annum
3.2
2.9
3.9
2.9
2.0
2021
Years
26.1
24.3
23.4
22.0
2018
£'000
101,586
(164,891)		 2020
%
Per annum
2.7
1.9
2.9
1.9
2.4
2020
Years
26.1
24.4
23.7
22.2
2017
£'000
95,809
(164,164)
(92,398)
(2,411)		 (59,971)
(2,072)		 (62,469)
(2,228)		 (63,305)
(2,343)		 (68,355)
(2,480)
(94,809) (62,043) (64,697) (65,648) (70,835)
2021
£'000
67,192
27,770
10,335
10,669
5,054		 Asset
Distribution
%
55%
23%
9%
9%
4%		 2020
£'000
56,511
26,976
7,629
10,393
3,195		 Asset
Distribution
%
54%
26%
7%
10%
3%
121,020 100% 104,704 100%
2021
£'000
(3,716)
-
(533)		 2020
£'000
(4,010)
(1,180)
(457)
(4,249)
(136)
(1,427)		 (5,647)
(143)
(1,525)
(5,812) (7,315)

126

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2021

8. PENSIONS (Continued)

Analysis of amount recognised in the SOFA

Analysis of amount recognised in the SOFA
Return on plan assets in excess of interest
Other actuarial gains/(losses) on assets
Change in demographic assumptions
Experience gains / (losses) arising on the scheme liabilities
Changes in assumptions underlying the present value of the scheme liabilities
Actuarial gain / (loss) recognised in SOFA
Reconciliation of defined benefit obligation
Defined benefit obligation in scheme at beginning of year
Movement in year:
Current service cost
Interest cost
Contributions by members
Unfunded benefits paid
Past service cost
Benefits paid
Change in demographic assumptions
Experience gains / (losses) on defined benefit obligation
Change in financial assumptions
Deficit in scheme at end of the year
Reconciliation of fair value of employer assets
Fair value of employer assets in scheme at beginning of year
Movement in year:
Interest on assets
Other actuarial gains/(losses)
Return on assets less interest
Contributions by members
Administration expenses
Contributions by the employer, including in respect of unfunded benefits
Benefits paid, including unfunded benefits
Fair value of employer assets in scheme at end of year		 2021
£'000
14,783
-
1,769
2,142
(48,838)		 2020
£'000
(3,039)
(4,118)
(2,138)
(1,094)
17,537
(30,144) 7,148
2021
£'000
(166,747)
(3,716)
(3,878)
(872)
151
-
4,160
1,769
2,142
(48,838)		 2020
£'000
(174,544)
(4,010)
(4,156)
(910)
151
(1,180)
3,597
(2,138)
(1,094)
17,537
(215,829) (166,747)
2021
£'000
104,704
2,451
-
14783
872
(136)
2,657
(4,311)		 2020
£'000
109,847
2,631
(4,118)
(3,039)
910
(143)
2,364
(3,748)
121,020 104,704

127

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2021

8. PENSIONS (Continued)

History of experience gains and losses
2021
£'000
Fair value of employer assets
121,020
Present value of defined benefit obligation
(215,829)
Deficit
(94,809)
Experience (losses) / gains on assets
14,783
Experience (losses) / gains on liabilities
2,142
The sensitivity analysis on the major assumptions in the above is:
Adjustment to discount rate
Present value of total obligation
Projected service cost
Adjustment to long term salary increase
Present value of total obligation
Projected service cost
Adjustment to pension increases and deferred valuation
Present value of total obligation
Projected service cost
Adjustment to mortality age rating assumption
Present value of total obligation
Projected service cost
9. INTANGIBLE FIXED ASSETS (Group)
Goodwill
Goodwill on Acquisition
At 1 April 2020 and 31 March 2021
Goodwill Amortisation
At 1 April 2020
Amortisation in the year
At 31 March 2021
Net Book Value
At 31 March 2021
At 1 April 2020		 2021
£'000
121,020
(215,829)		 2020
£'000
104,704
(166,747)		 2019
£'000
109,847
(174,544)		 2018
£'000
101,586
(167,234)		 2017
£'000
95,809
(166,644)
(94,809)
14,783
2,142		 (62,043)
(3,039)
(1,094)		 (64,697)
6,096
-		 (65,648)
3,153
-		 (70,835)
13,137
4,059
£'000
+0.1%
(211,441)
(5,328)
+0.1%
(216,244)
(5,503)
+0.1%
(219,854)
(5,675)
+ 1 Year
(225,647)
(5,751)		 £'000
0.0%
(215,829)
(5,500)
0.0%
(215,829)
(5,500)
0.0%
(215,829)
(5,500)
None
(215,829)
(5,500)		 £'000
-0.1%
(220,312)
(5,677)
-0.1%
(215,416)
(5,497)
-0.1%
(211,885)
(5,329)
- 1 Year
(206,455)
(5,259)
Group
£'000
1,574
(1,377)
(157)
(1,534)
40
197

Goodwill arose on consolidation of British Screen Finance Limited (BSF) and its subsidiary companies, which were acquired on 29 June 2011, and is being amortised over ten years on a straight line basis. This is charged against Audiences.

128

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2021

10. TANGIBLE FIXED ASSETS (Group and Charity)

Cost or valuation
At 1 April 2020
Additions
Disposals
Reclassification
Revaluation
At 31 March 2021
Depreciation
At 1 April 2020
Charge for the year
Disposals
Reclassification
Revaluation
At 31 March 2021
Net Book Value
At 31 March 2021
At 1 April 2020		 Long
leasehold
property
£'000
79,277
53
-
-
(1,404)		 Short
leasehold
property
improvements
£'000
13,064
-
-
-
(245)		 Computer
and other IT
equipment
£'000
7,679
329
(21)
595
-		 Furniture
fixtures and
fittings
£'000
1,931
1,102
(10)
-
-		 Plant and
machinery
£'000
8,033
925
(1,819)
-
-		 Assets in
the course of
construction
£'000
617
719
-
(595)
-		 Total
£'000
110,601
3,128
(1,850)
-
(1,649)
77,926 12,819 8,582 3,023 7,139 741 110,230
(10,149)
(3,568)
-
60		 (7,928)
(957)
-
174		 (5,577)
(386)
21
-		 (1,297)
(100)
10		 (6,690)
(605)
1,819
-		 -
-
-
-		 (31,641)
(5,616)
1,850
234
(13,657) (8,711) (5,942) (1,387) (5,476) - (35,173)
64,269 4,108 2,640 1,636 1,663 741 75,057
69,128 5,136 2,102 634 1,343 617 78,960

The BFI's long leasehold properties BFI Southbank and BFI London IMAX, including associated plant and fixtures, were revalued as at 31 March 2017 by appropriately qualified valuers, Deloitte LLP, in accordance with FRS 102: Section 17 - Property Plant and Equipment. The values at 31 March 2021 have been estimated using appropriate indexation from an independent expert body, resulting in a net decrease in value in the year of £1.4m (2020 increase of £2.3m). Short leasehold property improvements have been revalued using appropriate indices, resulting in a net decrease in value in the year of £0.2m (2020: decrease of £0.1m). Other classes of assets have not been revalued, as they are made up of low value and/or short useful economic life assets or where the historical cost is considered a reasonable approximation of fair value.

Historic Cost Accounting:
Cost
At 1 April 2020
Additions
Disposals
Reclassification
At 31 March 2021
Depreciation
At 1 April 2020
Charge for the year
Disposals
At 31 March 2021
Net Book Value
At 31 March 2021
At 1 April 2020		 Long
leasehold
property
£'000
40,356
53
-		 Short
leasehold
property
improvements
£'000
11,274
-
-		 Computer
and other IT
equipment
£'000
7,680
309
1
595		 Furniture
fixtures and
fittings
£'000
1,931
1,103
(10)
-		 Plant and
machinery
£'000
8,033
925
(1,820)
-		 Assets in
the course of
construction
£'000
615
739
(20)
(595)		 Total
£'000
69,890
3,129
(1,849)
-
40,409 11,274 8,585 3,024 7,138 739 71,170
(17,643)
(1,245)		 (6,298)
(1,035)		 (5,576)
(366)
(1)		 (1,297)
(98)
8		 (6,691)
(529)
1,742		 -
-
-		 (37,505)
(3,273)
1,749
(18,888) (7,333) (5,943) (1,387) (5,478) - (39,029)
21,521 3,941 2,642 1,637 1,660 739 32,141
22,713 4,976 2,104 635 1,342 615 32,385

129

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2021

11. HERITAGE ASSETS (Group and Charity)

The BFI has built the National Archive since its establishment in 1933, consisting of film and other related materials dating back to the 19th century. The BFI develops, cares for and interprets a collection that illustrates the art, history and impact of film, to be held in safe custody in perpetuity for the public, for their use and for use by the BFI in pursuit of its objectives. The collection is one of the largest and most diverse collections in the world. It includes feature films, documentary and factual films, television programmes, artists film, photographic stills, posters, books and other related materials, held primarily for use in the BFI's activities and charitable objectives, as described in more detail in the Annual Report and below. In 2011 BFI adopted its current Collection Policy, which can be found on www.bfi.org.uk. It documents our procedures for acquisition and disposal, documentation, conservation and access and describes our role in a national network of organisations that collect or provide access to film and television. Key measures taken to safeguard the national collections include major investment in physical infrastructure to preserve master materials, developing our extensive database of materials and information and in digitising materials for the dual purposes of alternative storage and improved public access.

In line with the accounting policy, Heritage Assets are not recognised on the balance sheet as there is an absence of reliable cost information and a valuation approach is not practicable at a cost commensurate with the benefit to the users of the accounts and to the charity. In order to give an indication of the physical size and diversity of the collections, the main elements are summarised below.

Fiction film

42,000 titles. The collection includes the original camera negatives of some of the most important feature films in British film history. The BFI also looks after an extensive international collection of films.

Non fiction film

140,000 titles including documentaries, newsreels, government films, sponsored films, advertisements and home movies. It is the world’s most important collection of documentary films.

Television

Around 800,000 television titles including material recorded off-air, as it was seen by the viewer, as well as production and transmission material. The collection includes all BBC output since 1980 including unique live broadcasts and extensive samples of commercial terrestrial television, with emphasis on key British productions. As well as the recorded material, significant collections of transmitted programming donated by broadcasters include the Rediffusion Collection (the earliest ITV contractor) and material preserved on analogue videotape from the 1960s and 1970s donated by the BBC and ITV.

Library

The library holds some 47,000 books including major film, TV and video directories and yearbooks from around the world, all major film and TV festival catalogues, programmes and brochures and all UK based festival catalogues. It also includes major film catalogues from around the world, annual reports from relevant companies and bodies; official publications including copyright, arts policy, and government reports; biographies and autobiographies of UK film/TV personalities.

One of the greatest strengths of the library is its near comprehensive collections of UK trade and academic journals (5,000 titles; 229,000 issues). An extensive collection of newspaper cuttings, publicity and press material are also held as are brochures, leaflets, prospectuses etc. describing the work of organisations that are relevant to film and television.

Special collections

21,000 unpublished scripts, from first drafts to release scripts, relating primarily to British film and TV titles.

28,000 press books, 19,000 film posters and 2,000 items of cinema ephemera such as programmes, tickets, autographed letters, promotional material and personal memorabilia.

700 collections of personal and company papers reflecting the history of British film and television production from the earliest days to the present time. Approximately 1.4 million still images from or related to film and TV, including publicity material, production shots, and portraits. 30,000 film and television advertisements.

Other items include: over 5,500 production and costume designs; 200 boxes of animation cels including artwork by leading animators; and extensive audio collections including oral history recordings and interviews with many key industry figures.

130

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2021

12. INVESTMENTS (Charity)

Trading Account
Income
Expenditure
Expenditure - BFI recharges
Net operating profit
Interest receivable and similar income
Surplus gift aided to the BFI
Net profit
Balance Sheet
Stocks & work in progress
Debtors
Cash at bank and in hand
Current liabilities
Current liabilities - owed to the BFI
Total (BFI interest)
Trading Account
Income
Expenditure
Expenditure - BFI recharges
Net operating profit
Interest receivable and similar income
Surplus gift aided to the BFI
Net profit
Balance Sheet
Stock and work in progress
Debtors
Cash at bank and in hand
Current liabilities
Current liabilities - owed to the BFI
Total (BFI interest)		 2021
BFI Big
Screen
£'000
946
(435)
(39)		 British Screen
Finance Group
£'000
358
(49)
(28)		 BFI
Enterprise
£'000
1,598
-
(1,435)		 2021
Total
£'000
2,902
(484)
(1,502)
472 281 163 916
1
(474)		 2
(283)		 1
(164)		 4
(921)
(1) - - (1)
-
626
186
(137)
(676)		 -
103
1,353
(104)
(340)		 188
9
285
(17)
(372)		 188
738
1,824
(258)
(1,388)
(1) 1,012 93 1,104
2020
BFI Big
Screen
£'000
3,508
(618)
(47)		 British Screen
Finance Group
£'000
552
(25)
(28)		 BFI
Enterprise
£'000
4,655
(50)
(2,313)		 2020
Total
£'000
8,715
(693)
(2,388)
2,843 499 2,292 5,634
4
(2,847)		 8
(507)		 1
(2,293)		 13
(5,647)
- - - -
-
1,741
581
(495)
(1,827)		 -
85
1,489
(52)
(510)		 191
369
999
(147)
(1,319)		 191
2,195
3,069
(694)
(3,656)
- 1,012 93 1,105

131

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2021

12. INVESTMENTS (Charity) (continued)

The BFI holds 100% of the issued share capital of the following undertakings, which are registered in England and Wales:

Company
Registration Number:
British Screen Finance Limited (BSF) 1910848
BFI (Big Screen) Limited (operates the theatrical and commercial activities of the BFI IMAX) 3088677
BFI Enterprise Limited (previously known as Connoisseur Video Limited - inactive) 2463593
Project Rosebud Limited (e-commerce development - dormant with nil assets and investment value) 3946785
BSF, in addition, holds the following investments: Ordinary shares Holding
of £1 each
Subsidiary undertakings
National Film Finance Consortium Limited (NFFC) 1056412 100 100%
European Co-Production Fund Limited (ECF) 2631250 2 100%
British Screen Rights Limited (BSR) 2908542 2 100%
The Greenlight Fund Limited (GLF) 3191007 2 100%
National Film Development Fund (NFDF) 01268342 - Not applicable
Associated undertakings
British Film-Makers Limited (BFM) 0368248 50 50%

NFFC is a dormant company. ECF was a company that made loans to films produced by European co-producers. BSR acquired and sold rights in feature films. GLF managed the investment of some National Lottery proceeds into feature films on behalf of the Arts Council of England and is now dormant. NFDF made loans to producers and writers in the 1990s and is a company limited by guarantee. It is included here because of the its control via the directors. BFM collects and distributes film revenues on behalf of BSF and third parties. Its results are not material to the Group. All group companies are registered in England and Wales.

Trading subsidiaries are involved in activities wholly consistent with the BFI's charitable aims and objectives and remit taxable profits to the BFI under Gift Aid. Their income and expenditure are consolidated into the Group accounts.

The investments held by the Charity are summarised as follows:

Cost
At 1 April 2020 and 31 March 2021
Impairment
At 1 April 2020 and 31 March 2021
Net Book Value
At 1 April 2020 and 31 March 2021		 £'000
2,450
(1,007)
1,443

13. IMPACT OF THE INTRODUCTION OF IFRS 16 (LEASES) - BFI LOTTERY FINANCIAL STATEMENTS

IFRS 16 establishes principles for the recognition, measurement, presentation and disclosure of leases with the objective of ensuring that lessees and lessors provide relevant information that faithfully represents those transactions.

IFRS 16 (Leases) does not apply under FRS102 but for the BFI Lottery accounts appended it applies for periods beginning on or after 1 January 2019, and is thus being applied in those accounts.

Those financial statements include costs of the rental of office space at 21 Stephen Street, London which would fall under the definitions of the standard. BFI Lottery are thus required to reflect the discounted liability of the relevant portion of the lease for its term to 2031 in the Statement of Financial Position, with a matching “right of use” asset. The asset is depreciated over the life of the lease period, whilst the liability is released in line with the lease payments.

Guidance has been received from HM Treasury as to the approach to be adopted in the first year of implementation of this standard, to ensure consistency across Government. This states that these changes be introduced as in year changes with no re-statements of the prior year figures - the approach adopted here.

Previously to this rentals payable under operating leases were charged to the SOCNE on a straight line basis over the lease term.

See Notes 10 and 14 to the BFI Lottery Financial Statements for further information.

132

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2021

14. FILM RIGHTS (Group and Charity)

Film rights fall within the definition of Financial Instruments and are held at fair value. The valuation approach to establish the fair value of the film rights portfolio is set out in note 1: Accounting Policies.

The BFI's primary objective in investing in film rights is to support the future success of British film by backing new voices, new stories, new ideas and skills, enriching and diversifying British film production. Thus whilst the potential commercial success of a project is important in our assessment of an application it is not the only funding criterion.

The fair value of film rights at 31 March is as follows:

The fair value of film rights at 31 March is as follows:
Production Awards
Vision Awards
Development Awards
Distribution Awards
Other Awards
Film Rights valuation		 2020-21
£'000
9,760
1,411
227
161
-		 2019-20
£'000
11,330
1,238
534
235
-		 2018-19
£'000
12,181
1,323
284
220
-		 2017-18
£'000
10,210
1,368
333
489
30		 2016-17
£'000
10,370
1,500
374
329
54
11,559 13,337 14,008 12,430 12,627

Film rights are recognised as split between current and non-current assets, on the basis of a review of the characteristics of the loans across the portfolio and the anticipated cash flows from these:

Film rights - non-current
Film rights - current		 2020-21
£'000
9,228
2,331		 2019-20
£'000
10,532
2,805		 2018-19
£'000
8,249
5,759		 2017-18
£'000
7,492
4,938		 2016-17
£'000
7,627
5,000
11,559 13,337 14,008 12,430 12,627

Production awards are made to producers to co-finance feature film productions and from which we are entitled to recoup our award and take a share of net profits from the film. The value of the productions will be dependent upon many factors which are inherently uncertain; the ability of sales agents to meet sales estimates, how the film will be critically and commercially received (including box office projections and exchange rates) all play a role. Further details are set out in the note below.

Vision Awards are made to production companies to enable them to develop their business and the awards are repayable from any applicable feature film production made by the production company. As we do not expect all recipients to be required to repay the award in full we routinely impair 50% of the award in the year in which it is committed.

Development awards are made to producers to support a film development. In the event that the development project progresses into a feature film production, we would be entitled to be repaid our award and take a share of net profits. Accordingly development awards are fully adjusted to £nil in the year in which the award is made, unless there is a reasonable anticipation of it progressing to production.

Distribution awards are made to distributors to support the release of a film in the UK and repayable dependent upon the performance of the film release.

Other awards include targeted development awards which are awarded to support new talent. These awards are written off in full in the year unless there is a reasonable expectation of recoupment.

133

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2021

14. FILM RIGHTS (Group and Charity) (continued)

Movements in the valuation of film rights

Movements in the valuation of film rights
Film rights valuation at 1 April
New commitments: made in year
Decommitments: new film rights in year
Decommitments: historical portfolio
Repayment of investments: new film rights in
Repayment of investments: historical portfolio
Adjustments: new film rights in year
Adjustments: historical portfolio
Adjustments written back
Film rights valuation at 31 March		 2020-21
£'000
13,337
22,275
(370)
(178)
(1,528)
(2,547)
(17,559)
(5,174)
3,303		 2019-20
£'000
14,008
17,002
-
(461)
(285)
(4,191)
(13,932)
(3,873)
5,069		 2018-19
£'000
12,430
20,840
(3)
(369)
(588)
(3,546)
(16,110)
(2,476)
3,830		 2017-18
£'000
12,627
18,783
(23)
(451)
(508)
(5,024)
(15,530)
(2,315)
4,871		 2016-17
£'000
10,970
23,150
-
(315)
(539)
(4,647)
(19,114)
(1,971)
5,093
11,559 13,337 14,008 12,430 12,627

The value of new commitments made in the year will vary due to timing differences arising from the closure of awards.

The valuation of the Film Rights is based on the anticipated cash receipts over the next seven financial years after the balance sheet date. In relation to recent production awards (that is production awards that were recognised as awards payable this financial year and the last seven financial years), the valuation is based on the cash receipts anticipated from the first cycle of revenues including revenues from cinema, DVD, Video On Demand and television. In relation to older production awards, the valuation is based on the anticipated cash receipts for the next seven years following the balance sheet date calculated from the individual film's historic cash receipts. All such anticipated cash receipts are discounted using the applicable Treasury Rate of 3.7% (2020: 3.7%).

The value of new film rights in the year is always governed by the value of awards made and therefore can vary considerably year to year.

As at 31 March 2021, the Film Rights valuation for production awards is £9.8m (2020: £11.3m) and for all other Film Rights is £1.8m (2020: £2.0m) totalling £11.6m (2020: £13.3m). For production awards, were the recoupment levels and valuation to vary by +/- 5%, the impact of the valuation of Film Rights at 31 March 2021 would be £0.5m for 207 awards (2020: £0.6m for 186 awards).

134

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2021

14. FILM RIGHTS (Group and Charity) (continued)

In relation to older production awards, the Film Rights valuation is calculated on the assumption that the future anticipated receipts will be based on the historic cash receipts for the two years prior to the balance sheet date, subject to a 85% default reduction every three years, except for films in profit which are calculated on the assumption that the future anticipated receipts will be based on the historic cash receipts for the three years prior to the balance sheet date, subject to a 75% default reduction every three years. The total amount of the Film Rights valuation based on this methodology is £4.3m (2020: £5.2m). Were this default reduction percentage to change to +/- 10% the Film Rights valuation would change by :

£'000 £'000 £'000
+10% 0% -10%
2020-21 (400) 4,320 390
2019-20 (560) 5,330 400

In relation to recent production awards (that is production awards that were recognised as awards payable this financial year and the previous three financial years), the Film Rights valuation is based on future anticipated receipts. These cash receipts are principally earned in US dollars and converted to pounds sterling before payment is made to the BFI's bank accounts. The default pound sterling to US dollar exchange rate is calculated using the average daily exchange rate for the two years to the balance sheet date, rounded to the nearest 5 US cents. The default rate as at 31 March 2021 for production awards is US $1.30 (2020: US $1.30).

Had the pound sterling to US dollar exchange rate been $1.40 for the purposes of the Film Rights valuation, then the valuation of the total of these production awards would be reduced by £0.5m. Were the valuation calculated using US $1.20, then these valuations would be increased by £0.6m (and the awards at March 2020 would increase by £0.7m).

Further information on the movement on film rights can be found on the BFI website: http://www.bfi.org.uk/about-bfi/annual-review-management-agreement.

15. NATIONAL LOTTERY DISTRIBUTION FUND (NLDF) (Group and Charity)

The movement in balances held at the NLDF is:
Balance at 1 April
Income received from the Lottery receipts
Investment income earned on NLDF balances
Available for distribution
Cash drawn down
Balance at 31 March		 2021
£'000
53,804
49,044
29		 2020
£'000
52,757
48,025
232
102,877
(49,757)		 101,014
(47,210)
53,120 53,804

The funds are invested on behalf of the NLDF by the National Debt Commissioners. The BFI's distribution is in accordance with Sections 22 and 23 of the National Lottery etc. Act 1993 (as amended by the National Lottery Act 1998). The BFI is required by statute to show on the balance sheet the lower of the market value or the cost of the investment as at the year end. There were no unrealised gains in the year (2020 : £nil).

16. STOCKS AND WORK IN PROGRESS

16. STOCKS AND WORK IN PROGRESS
Work in progress
Finished goods		 Group
2021
£'000
54
518		 Group
2020
£'000
43
526		 Charity
2021
£'000
54
329		 Charity
2020
£'000
43
336
572 569 383 379

135

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2021

17. DEBTORS

17. DEBTORS
Trade debtors
Amount owed by subsidiary undertakings
Other debtors
Prepayments and accrued income
18. CASH AT BANK AND IN HAND
Analysis of cash and cash equivalents
Cash at bank and in hand
Group
Cash at bank and in hand
Charity		 Group
2021
£'000
2,281
-
3,331
25,125		 Group
2020
£'000
2,652
-
1,946
4,079		 Charity
2021
£'000
1,795
1,426
3,256
24,948		 Charity
2020
£'000
1,544
3,654
1,900
3,035
30,737 8,677 31,425 10,133
Unrestricted
£'000
4,199		 Restricted
£'000
28,358		 2021
Total
£'000
32,557		 2020
Total
£'000
23,411
2,376 28,358 30,734 20,345

All cash at bank is held with UK commercial banks.

£3.2m (2020: £3.9m) of cash held in BFI lottery bank accounts is funds recouped by BFI and held on behalf of producers under the "Rewarding Success" recoupment corridor - see note 22: Provisions.

19. FINANCIAL RISKS (Group and Charity)

Financial Reporting Standards require disclosure of the role which financial instruments have had during the period, in creating or changing the risks the BFI faces in undertaking its role.

Film rights

Under International Financial Reporting Standards (IFRS 9) film rights fall within the definition of Financial Instruments. Within that, they meet the definition of assets measured at fair value with gains and losses being recognised in the profit and loss account

Establishing the fair value of film rights is subjective and therefore contains an element of risk. The fair value is based on a review of external evidence such as the sales agents' estimates as to the likely revenues generated by a project, where it is in the life cycle of the project, and upon actual performance of the film to date. This is matched with the knowledge and experience of the staff and management involved in the process of assessing the projects both at application stage and as they come to fruition. Any reduction in fair value is immediately taken to the SOFA in the year.

The valuation of film rights is subject to on-going review to ensure a fair value is maintained, with any adjustments being charged as expenditure.

Film rights - non-current
Film rights - current		 2021
£'000
9,228
2,331		 2020
£'000
10,532
2,805
11,559 13,337

National Lottery Distribution Fund

Under IFRS 9 funds held at the National Lottery Distribution Fund are held as financial instruments held at amortised cost.

Liquidity risks
Income was derived from:
DCMS Grant-in-aid
DCMS Capital provision
Other legacies, grants and donations and investment income
Resources generated from charitable activities
Donated services and facilities
Lottery proceeds and receipts		 2021
£'000
72,245
1,987
7,298
13,863
356
49,879		 %
50%
1%
5%
10%
0%
34%		 2020
£'000
33,918
1,007
3,832
23,233
1,698
49,834		 %
31%
1%
3%
20%
1%
44%
145,628 100% 113,522 100%

136

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2021

19. FINANCIAL RISKS (Group and Charity) (Continued)

The Governors consider that, as the NLDF balance notified by the Secretary of State for Digital, Culture, Media and Sport and the BFI's own Lottery cash holding amount to £61.6m at the balance sheet date (2020: £62.4m), sufficient liquid resources are available to cover all existing commitments totalling £44.1m (2020: £38.9m) and any other payables. The non-Lottery cash holdings are considered sufficient to cover the non-Lottery other payables.

Interest rate risks

The BFI’s largest financial asset is retained in the NLDF, which invests in a narrow band of low risk assets such as Government bonds and cash. Neither the BFI nor its Governors has any control over these investments. The interest rate risks in respect of these financial assets are disclosed in the financial statements of the NLDF. The market value of the BFI’s investment in the NLDF at the year end was £53.1m (2020: £53.8m) and the average investment return for the year was 0.1% (2020: 0.72%).

Cash drawn from the NLDF, DCMS or received from other sources, to pay grant commitments and operating costs are held in variable rate bank accounts and the average interest rate return for the year was 0.13% (2020: 0.4%). The group cash balance at the year end was £8.4m (2020 £6.4m).

Other price risks

Under FRS102 film rights fall within the definition of financial instruments and are therefore shown in the balance sheet at fair value.

Establishing the fair value of film rights is subjective and therefore contains an element of risk. The fair value is based on a review of external evidence such as the sales agents estimates as to the likely revenues generated by a project, and depending on where it is in the life cycle of the project, upon actual performance of the film to date. This is matched with the knowledge and experience of the staff and management involved in the process of assessing the projects both at application stage and as they come to fruition. Any reduction in fair value is immediately taken to the SOFA in the year.

The valuation of film rights is subject to ongoing review to ensure a fair value is maintained, with any adjustments being charged as expenditure. Any increase in the fair value beyond the original investment value is taken to reserves and only released as income on the actual receipt of funds.

Film rights at 31 March 2021 have a valuation of £11.6m (2020: £13.3m). The Governors consider that the BFI is not exposed to significant other price risks.

Foreign currency risks

The BFI’s financial assets are not exposed to material foreign exchange risks as long-term balances are held in sterling, however foreign currency exchange risks are significant in the valuation of the Film Rights as explained in the Lottery financial statements note 14: Financial Instruments and note 6: Film Rights.

20. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Trade creditors
Amount owed to subsidiary undertakings
Other taxes and social security costs
Other creditors
Lottery awards payable (see note 23)
Accruals
Deferred income (see note 21)		 Group
2021
£'000
(4,087)
-
(899)
(40,857)
(35,711)
(4,728)
(2,289)		 Group
2020
£'000
(2,662)
-
(866)
(12,916)
(30,921)
(4,376)
(1,646)		 Charity
2021
£'000
(4,078)
-
(899)
(40,855)
(35,711)
(4,562)
(2,242)		 Charity
2020
£'000
(2,590)
-
(866)
(12,915)
(30,920)
(4,310)
(1,088)
(88,571) (53,387) (88,347) (52,689)

21. DEFERRED INCOME

At 1 April
Amount released to income
Amount deferred in year
At 31 March		 Group
2021
£'000
(1,646)
1,646
(2,289)		 Group
2020
£'000
(1,059)
1,059
(1,646)		 Charity
2021
£'000
(1,088)
1,088
(2,242)		 Charity
2020
£'000
(1,043)
1,043
(1,088)
(2,289) (1,646) (2,242) (1,088)

Mainly relates to restricted grants, advance ticket sales and subscriptions to Sight and Sound magazine.

137

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2021

22. PROVISIONS (Group and Charity)

Rewarding success awards
At 1 April
New provisions in the year
Amounts paid in year
At 31 March		 2021
£'000
(3,887)
(1,252)
1,973		 2020
£'000
(2,835)
(1,911)
859
(3,166) (3,887)

Rewarding Success provision

The rewarding success initiative allows for a share of film recoupment income arising from lottery awards to be made available to UK Producers, Writers and Directors for their future film making activity. The funds held on behalf of film-makers ("the locked box") represents the monies held for this initiative at the balance sheet date and not yet drawn down.

23. LOTTERY AWARDS PAYABLE (Group and Charity)

23. LOTTERY AWARDS PAYABLE (Group and Charity)
At 1 April
New films right commitments in year
Commitments transferred from prior year provision for non-film rights awards
New non-film rights commitments in year
Decommitments
Amounts paid
At 31 March		 2021
£'000
(30,920)
(22,275)
(1,973)
(28,688)
3,686
44,459		 2020
£'000
(30,435)
(17,002)
(859)
(27,571)
1,335
43,612
(30,920)
At 31 March
(35,711)

Decommitments arise when any element of the award is not utilised once contracts are signed and drawdown has commenced.

Reconciliation to Lottery accounts
Creditors: amounts falling due within one year
Lottery awards payable
Provisions
Lottery awards payable
Other payables - Awards Commitments:
Heritage 2022 - eliminated on consolidation
Total Awards Commitments as per Lottery accounts
Lottery accounts - Awards Commitments represented by:
Other payables - Awards Commitments
Provision for award commitments		 2021
£'000
(35,711)
(3,166)
(5,263)		 2020
£'000
(31,405)
(3,887)
(4,085)
(44,140) (39,377)
(18,495)
(25,645)		 (22,083)
(16,809)
(44,140) (38,892)

138

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2021

24. STATEMENT OF FUNDS (Group and Charity)

GROUP
At 1 April
2020
£'000
Unrestricted funds:
Income funds excluding pensions asset/liability
33,659
Pension reserve
(59,370)
Fixed asset revaluation reserve
46,575
Total unrestricted funds
20,864
Donated Services and Facilities
-
Arts and Humanities Research Council
-
DCMS-Northern Ireland
-
DCMS-DFE
DCMS-Production Restart
DCMS - BFC Studio Support
DCMS-Global Screen Fund
DCMS- Culture Recovery Fund
DCMS - Young Audience Content Fund
297
DCMS - Capital GiA
-
BFI Lottery - Heritage 2022
4,050
BFI Lottery - BFI London Film Festival
-
BFI Trust
65
Chaplin Foundation
41
Creative Europe
-
Education, Audio-visual and Culture Executive
Agency
66
Esmee Fairbairn Foundation
-
Film London
-
Friends of the BFI
25
Julia and Hans Rausing Trust
-
LUMA Foundation
30
The Mohamed S Farsi Fund
52
H.M. Government - Job Retention Scheme (JRS)
-
Philippe L. Camu Annual Giving Fund
-
Reuben Foundation
21
Simon Hessel
-
Other up to £50,000
150
Total restricted funds excluding lottery
4,797
Lottery funds:
Lottery reserve
36,650
Donations and other income - Creative Scotland
+ others
-
Lottery share of pension reserve
(2,673)
Total Lottery funds
33,977
Total funds
59,638		 At 1 April
2020
£'000
33,659
(59,370)
46,575		 Income
£'000
32,327
-
-		 Expenditure
£'000
(36,049)
(2,397)
(2,245)		 £'000
-
(28,092)
(1,415)
Other
recognised
gains/(losses)		 Transfers
£'000
3,128
-
-		 At 31 March
2021
£'000
33,065
(89,859)
42,915
20,864
-
-
-
297
-
4,050
-
65
41
-
66
-
-
25
-
30
52
-
-
21
-
150		 32,327
356
652
4,324
1,000
93
1,600
550
29,229
18,800
1,987
-
-
100
-
361
1
94
60
240
60
-
-
3,478
50
-
50
173		 (40,691)
(356)
(43)
(4,324)
(1,000)
(93)
(1,600)
(542)
(28,654)
(19,042)
-
(1,828)
(250)
-
-
(361)
(66)
(94)
(60)
(222)
(60)
-
(52)
(3,478)
(50)
(21)
-
(238)		 (29,507)
-
-
-
-
-
-
-
-
-		 3,128
(601)
-
-
-
-
-
-
(1,987)
2,888
250
(165)		 (13,879)
-
8
-
-
-
-
8
575
55
-
5,110
-
-
41
-
1
-
-
43
-
30
-
-
-
-
50
85
4,797 63,258 (62,434) - 385 6,006
49,889
154
-		 (53,107)
(154)
(225)		 -
-
(2,052)		 (3,513)
-
-		 29,919
-
(4,950)
33,977
59,638		 50,043
145,628		 (53,486)
(156,611)		 (2,052)
(31,559)		 (3,513)
-		 24,969
17,096

139

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2021

24. STATEMENT OF FUNDS (Group and Charity) (Continued)

CHARITY
Unrestricted funds:
Income funds excluding pensions asset/liability
Pension reserve
Fixed asset revaluation reserve
Total unrestricted funds
Donated Services and Facilities
Arts and Humanities Research Council
DCMS-Northern Ireland
DCMS-DFE
DCMS-Production Restart
DCMS - BFC Studio Support
DCMS-Global Screen Fund
DCMS- Culture Recovery Fund
DCMS - Young Audience Content Fund
DCMS - Capital GiA
BFI Lottery - Heritage 2022
BFI Lottery - BFI London Film Festival
BFI Trust
Chaplin Foundation
Creative Europe
Education, Audio-visual and Culture Executive
Agency
Esmee Fairbairn Foundation
Film London
Friends of the BFI
Julia and Hans Rausing Trust
LUMA Foundation
The Mohamed S Farsi Fund
H.M. Government - Job Retention Scheme
Philippe L. Camu Annual Giving Fund
Reuben Foundation
Simon Hessel
Other up to £50,000
Total restricted funds excluding lottery
Lottery funds:
Lottery reserve
Donations and other income
Lottery share of pension reserve
Total Lottery funds
Total funds		 At 1 April
2020
£'000
36,485
(62,052)
46,575		 Income
£'000
30,343
-
-		 Expenditure
£'000
(33,906)
(2,397)
(2,245)		 £'000
-
(28,092)
(1,415)
Other
recognised
gains/(losses)		 Transfers
£'000
3,128
-
-		 At 31 March
2021
£'000
36,050
(92,541)
42,915
21,008
-
-
-
-
-
-
-
-
297
-
4,050
-
65
41
-
66
-
-
25
-
30
52
-
-
21
-
150		 30,343
356
652
4,324
1,000
93
1,600
550
29,229
18,800
1,987
-
-
100
-
361
1
94
60
240
60
-
-
3,478
50
-
50
173		 (38,548)
(356)
(43)
(4,324)
(1,000)
(93)
(1,600)
(542)
(28,654)
(19,042)
-
(1,828)
(250)
-
-
(361)
(66)
(94)
(60)
(222)
(60)
-
(52)
(3,478)
(50)
(21)
-
(238)		 (29,507)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 3,128
-
(601)
-
-
-
-
-
-
-
(1,987)
2,888
250
(165)
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 (13,576)
-
8
-
-
-
-
8
575
55
-
5,110
-
-
41
-
1
-
-
43
-
30
-
-
-
-
50
85
4,797 63,258 (62,434) - 385 6,006
36,650
-
(2,673)		 49,889
154
-		 (53,107)
(154)
(225)		 -
-
(2,052)		 (3,513)
-
-		 29,919
-
(4,950)
33,977
59,782		 50,043
143,644		 (53,486)
(154,468)		 (2,052)
(31,559)		 (3,513)
-		 24,969
17,399

140

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2021

24. STATEMENT OF FUNDS (Group and Charity) (Continued)

Restricted funds: Description: Donated Services and Facilities Various services and facilities provided in support of the BFI London Film Festival and BFI Flare film festival, see note 4: Donated Services and Facilities. Arts and Humanities Research Council Film Conservation, including capital expenditure. DCMS-DFE Funds ring fenced for education projects DCMS-Production Restart Support for UK film production DCMS - BFC Studio Support Supprt for film studios DCMS-Global Screen Fund Support UK film distribution overseas DCMS- Culture Recovery Fund Support for independent cinemas DCMS - Revenue GiA Funds ring fenced for Northern Ireland Screen and Education projects DCMS - Capital GiA Funds for capital expenditure DCMS - Young Audience Content Fund New funding for television content BFI Lottery - Heritage 2022 Supporting UK Film Heritage BFI Lottery - BFI London Film Festival Awarded by the Lottery under Section 27 dispensation towards improving public access to the 2019 BFI London Film Festival.

BFI Trust Support for estates related projects and planning, including capital expenditure. Chaplin Foundation Archive restoration and other work Education, Audio-visual and Culture Executive Film education projects Agency Creative Europe Funding towards the Creative Europe Desk and BFI Flare Live Film London LFF Industry Programme and Virtual Film Screening� Friends of the BFI Various projects including funding the BFI National Archive, including the restoration of I Know Where I’m Going! (Powell and Pressburger, 1945); BFI Southbank cultural programme, including the Woman with a Movie Camera project; and Film Music Foundation support of LFF Education. In addition the Friends of the BFI provided unrestricted funds for our general charitable purposes.

H.M. Government - Job Retention Scheme Support for staff on Furlough Julia and Hans Rausing Trust Online Education and BFI Home, future film festivals LUMA Foundation Anthony Balch project The Mohamed S Farsi Foundation Women With a Movie Camera Philippe L. Camu Annual Giving Fund BFI Southbank Cultural Programme 'Auteurs' Reuben Foundation Lead supporter of BFI Future Film Simon Hessel Support of the BFI National Archive, including restorations of The Small Back Room and Contraband Other up to £50,000 Various grant awards towards education, restoration and programming and other sundry income. Transfers Relate to the receipt of s27 Lottery funding (note 30) and the transfer to unrestricted reserves of capital grants used to acquire fixed assets in the year, where there is no ongoing restriction attaching to the asset created.

Lottery funds:

Creative Scotland Film Academies support Northern Ireland Screen Young people's Filmmaking Programme Transfers Relate to the s27 Lottery awards for other BFI activities (note 30).

Fund balances at 31 March 2021 are represented by:

Fixed assets:
Intangible fixed assets
Tangible fixed assets
Investments
Non-current assets:
Film rights
Film rights
National Lottery Distribution Fund
Stocks and work in progress
Debtors
Cash at bank and in hand
Current assets
Current liabilities
Long term pension liabilities
Total net assets
Income funds excluding pensions net liability		 Group Charity
Unrestricted
£'000
40
75,057
-
-
-
-
572
9,362
4,199		 Restricted
£'000
-
-
-
9,228
2,331
53,120
-
21,375
28,358		 Total
£'000
40
75,057
-
9,228
2,331
53,120
572
30,737
32,557		 Unrestricted
£'000
-
75,057
1,443
-
-
-
383
10,050
2,376		 Restricted
£'000
-
-
-
9,228
2,331
53,120
-
21,375
28,358		 Total
£'000
-
75,057
1,443
9,228
2,331
53,120
383
31,425
30,734
14,133
(13,250)
75,980
(89,859)		 105,184
(78,487)
35,925
(4,950)		 119,317
(91,737)
111,905
(94,809)		 12,809
(13,026)
76,283
(89,859)		 105,184
(78,487)
35,925
(4,950)		 117,993
(91,513)
112,208
(94,809)
(13,879) 30,975 17,096 (13,576) 30,975 17,399

141

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2021

24. STATEMENT OF FUNDS (Group and Charity) (Continued)

Fund balances at 31 March 2020 are represented by:

Fixed assets:
Intangible fixed assets
Tangible fixed assets
Investments
Non-current assets:
Film rights
Film rights
National Lottery Distribution Fund
Stocks and work in progress
Debtors
Cash at bank and in hand
Current assets
Current liabilities
Long term pension liabilities
Total net assets
Income funds excluding pensions net liability		 Group Charity
Unrestricted
£'000
197
78,960
-
-
-
-
569
7,967
2,060		 Restricted
£'000
-
-
-
10,532
2,805
53,804
-
710
21,351		 Total
£'000
197
78,960
-
10,532
2,805
53,804
569
8,677
23,411		 Unrestricted
£'000
-
78,960
1,443
-
-
-
379
9,423
(1,006)		 Restricted
£'000
-
-
-
10,532
2,805
53,804
-
710
21,351		 Total
£'000
-
78,960
1,443
10,532
2,805
53,804
379
10,133
20,345
10,596
(9,514)		 78,670
(47,760)		 89,266
(57,274)		 8,796
(8,816)		 78,670
(47,760)		 87,466
(56,576)
80,239
(59,370)		 41,442
(2,673)		 121,681
(62,043)		 80,383
(59,370)		 41,442
(2,673)		 121,825
(62,043)
20,869 38,769 59,638 21,013 38,769 59,782

Restricted funds are committed as directed by the donors/grantors. Unrestricted funds are available to fund revenue initiatives identified during the year and to provide a reserve against unforeseen costs arising.

Net free reserves
Current assets
Current liabilities
Net free reserves		 Group Group Charity Charity
2021
Unrestricted
£'000
14,133
(13,250)		 2020
Unrestricted
£'000
10,596
(9,514)		 2021
Unrestricted
£'000
12,809
(13,026)		 2020
Unrestricted
£'000
8,796
(8,816)
883 1,082 (217) (20)

Reserves are managed to ensure that restricted funds are not used to fund other activities. Much of the net free reserves are held within British Screen Finance Limited and other subsidiaries, which are wholly owned by the BFI and have distributable reserves of £1,105,000 (2020: £1,105,000) which are available for donation to the Charity if required (note 12).

25. LEASE COMMITMENTS (Group and Charity)

At 31 March 2021, the Charity had commitments in respect of non-cancellable operating leases as set out below:

Leases which expire:
Less than 1 year
Within 2 to 5 years
Over 5 years		 Land and
buildings
2021
£'000
(1,876)
(7,352)
(11,437)		 Land and
buildings
2020
£'000
(1,873)
(5,712)
(10,818)		 Other
2021
£'000
(41)
(7)
-		 Other
2020
£'000
(41)
(48)
-
(20,665) (18,403) (48) (89)

26. CAPITAL COMMITMENTS (Group and Charity)

As at 31 March 2021, the BFI had capital commitments outstanding of £9,000 (2020: £64,000) relating to the property infrastructure and digital upgrade.

142

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2021

27. CONTINGENT LIABILITIES (Group and Charity)

At 31 March 2021 Grant in Aid awards had been made for activity commencing on or after 1 April 2020. As these are contingent upon the receipt of Grant in Aid funding from DCMS in 2021-22 these are not taken to the Statement of Financial Activities in the year but are disclosed here.

Film London
Northern Ireland Screen: Irish Language Fund
Northern Ireland Screen: Ulster Scots Fund		 2021
£'000
(1,974)
(3,930)
(1,893)		 2020
£'000
(374)
(3,055)
(1,018)
(7,797) (4,447)

Other Contingent Liabilities - Rewarding Success projects in Film Rights

The film rights valuation is based on the value of the initial BFI investment as detailed in the Accounting Policies note above. However on a number of these investments, the BFI Locked Box initiative applies and accordingly there is a contingent liability with regard to the element of the valuation which would be made available to UK filmmakers. The BFI Locked Box initiative enables UK film-makers supported through the BFI to benefit from their film’s success. In short, a share of income from supported film productions is put aside (into a BFI Locked Box) and can be used by the filmmakers for the development and/or production of their future projects or towards staff training.

Contingent liability - rewarding success projects in film rights

2021
£'000
(2,975)		 2020
£'000
(3,002)

28. FINANCIAL AND OTHER COMMITMENTS

At the date of the statement of financial position there were financial commitments representing film rights investments made by the BFI where the investment decisions had been taken by the BFI and notified to the applicants but either the contracts had not been signed and/or the conditions precedent not met. Therefore work had not commenced on the assets in which the BFI is investing, so neither the asset nor the matching liability are represented in the balance sheet at that date.

Prior year Lottery awards
Talent Network awards
Production awards
Development awards
In year Lottery awards
Production awards
Distribution awards
Development awards
Network awards
Financial commitments - notified but not yet recognised in the financial statements		 2021
£'000
(191)
(97)
(26)
(3,081)
(624)
(457)
(60)		 2020
£'000
-
(105)
-
(3,742)
(150)
(818)
(302)
(4,536) (5,117)

Other contractual commitments

The BFI has entered into non-cancellable contracts (which are not leases), for a variety of services, including building maintenance, security and software support costs. The total payments to which the BFI is committed are as follows:

Other contractual commitments
Not later than one year
Later than one year and not later than five years
Later than five years
Contracts for delivery of services		 2021
£'000
(1,287)
(880)
-		 2020
£'000
(2,811)
(710)
-
(2,167) (3,521)

143

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2021

29. CONTINGENT ASSETS (Group and Charity)

The National Lottery Distributors are entitled to receive a share of the receipts from the sale of land on Queen Elizabeth Olympic Park in return for their contribution of an additional £675 million to the funding of the London 2012 Olympic and Paralympic Games. This was announced in 2007. The arrangements are set out in a legal agreement between the Secretary of State and the Greater London Authority dated 29 March 2012 which sets out the distribution of funds between the GLA and the lottery distributors (via DCMS). Land sales are likely to take place over a lengthy period, estimated to be from 2016-17 to 2036-37 and DCMS estimates the first payments to the Lottery Distributors to come through around 2020-21.

BFI will be entitled to receive a portion of the receipts from the sale in line with the 2.705% of the funds available to the good causes that the BFI receives as a lottery distributor.

Due to the inherent uncertainties over such a time period of the going rate of such land sales it is not possible to yet quantify the value of this. However assuming that the selling price is at least the amount of the distributors' investment, the BFI could expect to receive in excess of £18m.

30. RELATED PARTIES (Group and Charity)

The BFI maintains a publicly available register of Governors’ interests. Given their broad experience across the film sector, it is inevitable that Governors had connections with or interests in projects and organisations that may from time to time have come to the BFI for funding. All Governors were therefore required to declare any direct interest in and commercial relationships with award applications made to the BFI and that they had no role in the award making process. Similarly, BFI employees were excluded from decision making around any relevant application involving any organisation or company in which they have a declared interest.

Governors receive no payment for their services and all payments to key management personnel have been disclosed in the Remuneration Report.

During the year the BFI entered into transactions, in the ordinary course of business, with related parties. National Lottery awards are included in film rights at the date of the balance sheet or written off to expenditure within the year.

All awards outstanding are payable upon the meeting of conditions precedent within individual contracts.

The following related party transactions occurred during the period:

J. Timothy Richards (Chairman) is a Director of Vue Entertainment Ltd and the UK Cinema Association. The BFI traded with these organisations on an arms' length basis during the year. Transactions with Vue included sales income of £nil (2020 £6,829l) from film bookings and expenditure, primarily cinema hire for the BFI London Film Festival, of £nil (2020: £216,600).

Francesca Vinti (Director of Development) as Chairwoman of the Friends of the BFI, a USA based charity with which there were a number of transactions in the year totalling £282,231 (2020: £562,000).

Simon Bartlett (Head of Grant and Lottery Accounting) as Treasurer of the Friends of the BFI, a USA based charity with which there were a number of transactions in the year totalling £282,231 (2020: £562,000).

Josh Berger was President and Managing Director of Warner Bros. Entertainment UK, Ireland and Spain. The BFI traded with the Warner Bros. group of companies on an arms' length basis during the year, including sales income of £200 (2020: £15,272) and expenditure, including royalties, of £11,272 (2020: £61,829). He is also a member of the British Screen Forum (formerly the British Screen Advisory Council) with which some of the BFI's senior staff have membership costing £10,830 (2020: £6,942). Josh Berger stepped down as Chairman of the Board on 15th November 2020

Andrew Smith (Governor) is a Director of Pinewood Studios with which the BFI has archive and restoration contracts which pre-date his term as Governor. In the year transactions amounted to £nil (2020: £101,760).

Tricia Tuttle (Festivals Director) is partner to the Director of Film at the British Council, which has partnered with the BFI on projects. Grant funding and other income amounting to £42,700 was receivable in the year (2020: £115,434) with grant awards to them and other expenditure amounting to £121,093 (2020: £126,910). The British Council received a lottery award in the year ending 31 March 2021 totalling £nil (2020: £56,500) of which a balance of £10,500 (2020: £61,310) remained payable at that date.

Governors made unrestricted donations totalling £30,000 (2020: £94,267).

Executive directors made unrestricted donations totalling £1,500 (2020: £1,500).

144

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2021

30. RELATED PARTIES (Group and Charity) (continued)

Lottery Awards New Awards
Relationship made Balance
Role with to recipient Year Ended as at
Recipient of funding Name BFI of funding 31 March 2021 31 March 2021
£ £
BFI - London Film Festival Ben Roberts CEO CEO 250,000 -
BFI - Heritage 2022 Ben Roberts CEO CEO 3,263,000 5,110,000
Studio Canal Ltd Idris Elba Governor Film Director 60,000 60,000
Studio Canal Ltd Ben Luxford Head of Partner is
Audience Fund employee of
Studio Canal
Ltd 60,000 60,000

A number of BFI Governors and Staff are members of BAFTA, but with no formal management or governance role there-in. BAFTA received a lottery award in the year ending 31 March 2021 totalling £9,400 (2020: £59,710) of which a balance of £38,911 (2020: £59,710) remained payable at that date. The BFI transacted with the BAFTA on an arms length basis during the year with sales of £nil (2020: £1,418) and purchases of £17,400 (2020: £43,059).

The BFI is a non-departmental public body sponsored by the Department for Digital, Culture, Media and Sport (DCMS). DCMS is regarded as a related party and during the year the BFI, as a recipient of Grant in Aid funding and as a Lottery distributor, had material transactions with DCMS - see note 2: Other Significant Transactions.

Awards made under the Lotteries Act Section 27 dispensation

Using the power granted by the Section 27 of the National Lotteries Act etc. 1993, in 2019-20 the Secretary of State did not object to an award of £3,263,000 (2019-20: £2,275,000) to the BFI in relation to the Heritage 2022 project, as outlined in the BFI 2022 plan. The award was made in the year and the restricted reserves balance at 31 March 2021 of £5,110,000 (2020: £4,050,000) (note 24: Statement of Funds) is expected to be fully utilised and paid within the 2021-22 financial year.

Similarly the Secretary of State did not object to an award to the BFI in relation to the London Film Festival. The award was both made and fully paid within the financial year but as a result of changes to the festival arising form the COVID-19 pandemic the award was reduced from £1,250,000 to £250,000 in line with the reduced scope of the activities and associated expenditure. (2019-20: £900,000).

31. LOSSES AND SPECIAL PAYMENTS (Group and Charity)

There were no losses or special payments in the year (2020: none).

32. POST BALANCE SHEET EVENTS (Group and Charity)

Covid-19 has had a significant impact on the operations of the British Film Institute, with our cinemas and shops required to close from November 2020 to May 2021. The ongoing restrictions since May 2021 such as social distancing and the potential for further lockdowns continues to impact demand on the services provided by the BFI. For further information refer to note 1. Accounting Policies, Going concern and the Annual Report.

At the time of signing the accounts there were no other events after the reporting period, either adjusting or non-adjusting which require recognition or disclosure in the financial statements. The accounts were authorised for issue on the date the Comptroller and Auditor General signed the auditor's report.

145

Registered charity no: 287780

BRITISH FILM INSTITUTE GROUP AND NATIONAL LOTTERY ANNUAL REPORT AND FINANCIAL STATEMENTS 2020-21

NATIONAL LOTTERY FINANCIAL STATEMENTS

For the year ended 31 March 2021

146

STATEMENT OF GOVERNORS AND ACCOUNTING OFFICER'S RESPONSIBILITIES

The Governors and Chief Executive are responsible for preparing the financial statements for the Lottery distribution activities of the BFI for each financial year under section 35(2) and (3) of the National Lottery etc. Act 1993 in the form and on the basis directed by the Secretary of State for Digital, Culture, Media and Sport wih the consent of Treasury. The accounts are prepared on an accruals basis and must show a true and fair view of the state of affairs of the BFI Lottery Fund distribution activities and of its income and expenditure, changes in equity and cash flows for the financial year.

In preparing these financial statements, the Governors and the Chief Executive are required to:

The Governors and Chief Executive confirm that the annual report and accounts as a whole is fair, balanced and understandable and that the Accounting Officer takes personal responsibility for the annual report and accounts and the judgments required for determining that it is fair, balanced and understandable.

The Accounting Officer for the DCMS has designated the Chief Executive of the BFI as the Accounting Officer for the BFI. The relevant responsibitilies of an Accounting Officer, including responsibility for the propriety and regularity of the public finances for which the Accounting Officer is answerable and for keeping of proper records and for safeguarding the BFI's assets are set out in Managing Public Money published by HM Treasury and in the Financial Directions issued by the Secretary of State for Digital, Culture, Media and Sport under section 26(3) of the National Lottery etc. Act 1993.

The Governors and Chief Executive confirm they have met the responsibilities set out above and complied with the requirements for preparing the annual report and accounts on a fair, balanced and understandable basis, and the Chief Executive takes personal responsibility for this. The financial statements for the Lottery distribution activities, have been compiled from and are in accordance with the financial records maintained by the Governors and Chief Executive, and all relevant information has been made available to the auditors.

Phil Stokes Chair, Audit, Risk and Governance Committee BFI Governor

Ben Roberts Chief Executive

147

THE CERTIFICATE AND REPORT OF THE COMPTROLLER AND AUDITOR GENERAL TO THE HOUSES OF PARLIAMENT

Opinion on financial statements

I certify that I have audited the financia Distribution Accounts for the year ended 31 March 2021 under the National Lottery etc Act 1993. The financial statements comprise: Statements of Comprehensive Net Expenditure, Financial Position, Cash Flows,

related notes, including the significant accounting policies. These financial statements have been prepared under the accounting policies set out within them. The financial reporting framework that has been applied in their preparation is applicable law and International Accounting Standards as interpreted by HM Treasury’s Government Financial Reporting Manual.

In my opinion, the financial statements:

Opinion on regularity

In my opinion, in all material respects the income and expenditure recorded in the financial statements have been applied to the purposes intended by Parliament and the financial transactions recorded in the financial statements conform to the authorities which govern them.

Basis for opinions

I conducted my audit in accordance with International Standards on Auditing (ISAs) (UK), applicable law and blic . My responsibilities under those standards are section of my certificate.

Those standards require me and my staff to comply with the Financial Reporting standards relevant to listed entities. I am independent of the British Film Institute in accordance with the ethical requirements that are relevant to my audit of the financial statements in the UK. My staff and I have fulfilled our other ethical responsibilities in accordance with these requirements.

I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion.

148

Conclusions relating to going concern

preparation of the financial statements is appropriate.

Based on the work I have performed, I have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant bility to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

My responsibilities and the responsibilities of the Accounting Officer with respect to going concern are described in the relevant sections of this report.

The going concern basis of accounting for the British Film Institute is adopted in Reporting Manual, which require entities to adopt the going concern basis of accounting in the preparation of the financial statements where it anticipated that the services which they provide will continue into the future.

Other Information

The other information comprises information included in the Annual Report but does not include the parts of the Remuneration Report described in that report as having been audited, the financial statements and my certificate thereon. The Accounting Officer is responsible for the other information. My opinion on the financial statements does not cover the other information and except to the extent otherwise explicitly stated in my report, I do not express any form of assurance conclusion thereon. In connection with my audit of the financial statements, my responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statemen ts or my knowledge obtained in the audit or otherwise appears to be materially misstated. If I identify such material inconsistencies or apparent material misstatements, I am required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work I have performed, I conclude that there is a material misstatement of this other information, I am required to report that fact. I have nothing to report in this regard.

Opinion on other matters

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

149

which the financial statements are prepared is consistent with the financial statements.

Matters on which I report by exception

In the light of the knowledge and understanding of the British Film Institute and its environment obtained in the course of the audit, I have not identified material misstatements in the Annual Report . I have nothing to report in respect of the following matters which I report to you if, in my opinion:

Responsibilities of the Board and Accounting Officer for the financial statements

Responsibilities, the Chief Executive, as Accounting Officer is responsible for:

My responsibility is to audit, certify and report on the financial statements in accordance with the National Lottery etc Act 1993.

My objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a certificate that includes my opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements

150

can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

I design procedures in line with my responsibilities, outlined above, to detect material misstatements in respect of non-compliance with laws and regulation, including fraud.

My procedures included the following: 

  - internal audit and those

In addition to the above, my procedures to respond to identified risks included the following:

151

I also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members including internal specialists and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

A further description of my responsibilities for the audit of the financial statements is bsite at: www.frc.org.uk/auditorsresponsibilities. This description forms part of my certificate.

In addition, I am required to obtain evidence sufficient to give reasonable assurance that the income and expenditure reported in the financial statements have been applied to the purposes intended by Parliament and the financial transactions conform to the authorities which govern them.

I communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that I identify during my audit.

Report

I have no observations to make on these financial statements.

Gareth Davies Comptroller and Auditor General

Date 14 December 2021

National Audit Office 157-197 Buckingham Palace Road Victoria London SW1W 9SP

152

STATEMENT OF COMPREHENSIVE NET EXPENDITURE YEAR ENDED 31 MARCH 2021

Notes
Income
Proceeds from the National Lottery
2
National Lottery Distribution Fund investment income
2
Recoupment income
Arts Council England and UK Film Council portfolio
3
BFI portfolio
3
Other income
Total income
Expenditure
Lottery - non-film rights awards
4
Adjustments against film rights
5
Reversal of adjustments against film rights
5
Operating costs
8
Leasehold improvements
9
Total expenditure
Operating deficit
Bank interest receivable
Deficit on ordinary activities before taxation
Tax on surplus on ordinary activities for the year
Deficit for the year
Other comprehensive income/(expenditure)
Actuarial gain/(loss)
7
Total other comprehensive (expenditure)/income
Total comprehensive expenditure		 2020-21
£'000
49,044
29
275
528
97
49,973
(32,037)
(22,733)
3,303
(5,488)
(362)
(57,317)
(7,344)
10
(7,334)
-
(7,334)
(2,052)
(2,052)
(9,386)
-		 2019-20
£'000
48,025
232
323
1,230
95
49,905
(33,155)
(17,805)
5,069
(5,794)
(369)
(52,054)
(2,149)
32
(2,117)
-
(2,117)
396
396

(1,721)

All activities were on a continuing basis. The accompanying notes on pages 157 to 175 form part of these accounts.

153

STATEMENT OF FINANCIAL POSITION 31 MARCH 2021

Notes
Non-current assets
Right of use asset
10
Film Rights
5
Total non-current assets
Current assets
Film rights
5
National Lottery Distribution Fund
2
Trade and other receivables falling due within one year
11
Cash and cash equivalents
12
Total current assets
Current liabilities
Trade and other payables
14
Other payables - award commitments
15
Provisions
16
Total current liabilities
Total net current assets for the year ended 31 March
Non-current liabilities
Lease payables due > 1 year
14
Pension liability
7
Total non-current liabilities
Assets less liabilities
Capital and reserves
Lottery reserve
Pension reserve
7		 At 31 March
2021
£'000
1,550
9,228
10,778
2,331
53,120
1,120
8,449
65,020
(334)
(18,495)
(25,644)
(44,473)
20,547
(1,437)
(4,950)
(6,387)
24,938
#REF!
#REF!
29,888
(4,950)
24,938
#REF!
#REF!		 At 31 March
2020
£'000
1,705
10,532
12,237
2,805
53,804
974
8,559
66,142
(910)
(22,083)
(16,809)
(39,802)
26,340
(1,581)
(2,672)
(4,253)
34,324
36,996
(2,672)
34,324

The accompanying notes on pages 157 to 175 form part of these accounts.

The financial statements were approved and authorised for signature by the Governors on 10 December 2021.

Phil Stokes Chair, Audit, Risk and Governance Committee BFI Governor

Ben Roberts Chief Executive

154

STATEMENT OF CHANGES IN EQUITY YEAR ENDED 31 MARCH 2021

Notes
Balance at 31 March 2019
(Deficit)/surplus for the year
Re-measurements in the year
7
Balance at 31 March 2020
(Deficit)/surplus for the year
Re-measurements in the year
7
Balance at 31 March 2021		 Lottery
Reserve
£'000
38,689
(1,693)
-
36,996
(7,108)
-
29,888		 Pension
Reserve
£'000
(2,644)
(424)
396
(2,672)
(226)
(2,052)
(4,950)		 Total
Reserve
£'000
36,045
(2,117)
396
34,324
(7,334)
(2,052)
24,938

The accompanying notes on pages 157 to 175 form part of these accounts.

155

STATEMENT OF CASH FLOWS YEAR ENDED 31 MARCH 2021

Notes
Cashflows from operating activities
Operating deficit
Decrease/(Increase) in film rights falling due in excess of one year
5
Decrease in film rights falling due within one year
5
Decrease/(increase) in trade receivables
2,11
(Decrease)/increase in Trade payables
14
(Decrease)/increase in award payables
15
Increase/(Decrease) in other payables - provisions
16
Non cash pension movements
7
Interest received
2
10
10
Net cash from operating activities
Cashflows from investing activities
Interest received
Cash receipts from National Lottery Distribution Fund
2
Cashflows from investing activities
Cashflows from financing activities
Interest payable for lease liabilities
10
Repayment of lease liabilities
10
Cashflows from financing activities
(Decrease)/increase in cash in the year
Cash and cash equivalents at 1 April 2020
12
Cash and cash equivalents at 31 March 2021
Reclassification of receipts from National Lottery Distribution Fund as
cashflows from investing activities
Reclassification of interest payable for lease liabilities to cashflows
from financing activities
Reclassification of rental payments to cashflows from financing
activities		 2020-21
£'000
(7,334)
1,304
474
693
(720)
(3,588)
8,835
226
(10)
(49,757)
141
35
(49,701)
10
49,757
49,767
(35)
(141)
(176)
(110)
8,559
8,449		 2019-20
£'000
(2,117)
(2,283)
2,954
(996)
2,382
4,301
(2,605)
424
(32)
(47,210)
139
37
(45,006)
32
47,210
47,242
(37)
(139)
(176)
2,060
6,499
8,559

The accompanying notes on pages 157 to 175 form part of these accounts.

156

YEAR ENDED 31 MARCH 2021

1. ACCOUNTING POLICIES

Basis of Accounts

These financial statements are prepared on a going concern basis under the historical cost convention, and in accordance with the Accounts Direction issued by the Secretary of State for Digital, Culture, Media and Sport with the consent of Treasury in December 2014. These meet the requirements of section 35(3) of the National Lottery etc Act 1993 (as amended by the National Lottery Act 1998) and applicable Accounting Standards, except certain headings have been amended in order to reflect special circumstances of the charity.

The accounts have been prepared on a going concern basis given the on-going Statutory appointment of the BFI as a lottery distributor, bringing a certainty of future revenues, combined with the year end reserves of £24.9m (2020: £34.3m).

The financial statements have been prepared in accordance with the Government Financial Reporting Manual (FReM) issued by HM Treasury. The accounting policies contained in the FReM apply International Financial Reporting Standards as adapted or interpreted for the public sector context. Where the FReM permits a choice of accounting policy, the accounting policy which is judged to be most appropriate to the particular circumstances of the BFI for the purpose of giving a true and fair view has been selected. The particular policies adopted by the BFI are described below and they have been applied consistently in dealing with items that are considered material to the accounts.

The effect of new accounting standards and interpretations in issue but not yet adopted by the BFI that the directors anticipate will have a material effect on the reported income or net assets is noted below.

In accordance with the Direction issued by the Secretary of State for Digital, Culture, Media and Sport, financial statements have also been prepared for the BFI Group activities as a whole.

A copy of the Accounts Direction is available from the Secretary to the Board of Governors, 21 Stephen Street, London W1T 1LN or is available on line from www.gov.uk.

Accruals convention

Income and expenditure is accounted for on a receivable basis. The exception to this is recoupment income because of the inherent difficulties in relating the income to the period to which it relates. Recoupment income is therefore accounted for upon notification of amounts received by the BFI. Commitments are reported as per the National Lottery etc Act 1993.

As required by the Secretary of State for Digital, Culture, Media and Sport in the Accounts Direction, Lottery awards are accounted for on an accruals basis. Where the BFI has made a firm offer of a grant to a film rights or a non-film rights project, which together with the relevant conditions has been accepted by the recipient and the conditions of the grant have been fully met, the award is recognised as a payable. Where the BFI has agreed in principle to fund a scheme or project and made an offer, but the offer has not been accepted nor the associated conditions precedent met, the award is provided for in full at the year end. However, where the BFI has agreed in principle to fund a project in which it will take rights of recoupment ('film rights'), but the offer has not been accepted nor the associated conditions met, as the associated assets of the project can not yet exist, the award is treated as a financial commitment at the year end. These financial commitments are disclosed by way of a note to the financial statements, whereas the liabilities and provision are recognised in the financial statements.

Award commitments payable within one year of the Statement of Financial Position are recognised in the statement as current liabilities. Those payable more than one year from the date of the statement of financial position are shown as commitments payable over more than one year. Commitments for future years have been entered into which take into account income forecasts provided by the Department for Digital, Culture, Media and Sport (DCMS). These forecasts take a conservative view of future income.

Estimates and judgements

Estimates and judgements have been used in the production of these accounts, notably with regard to the valuation of film rights and pensions as at the year end and in the recharge of operating costs. Details on the judgements and estimation involved in the valuation of the film rights are set out in the Film Rights accounting policy above and note 6: Film Rights. The recharge of operating costs are based on an assessment of the relevant direct costs of the lottery departments and an appropriate proportion of the central support functions such as Facilities, Finance and IT. Further information can be found in note 9: Operating Costs and information on the assumptions underlying the pension valuation can be found in note 8: Pensions.

Most of the London Pension Fund’s assets have quoted prices in active markets, but there are unquoted property, infrastructure and private equity assets, with BFI Lottery’s share of assets other than equities and cash amounting to an estimated £4.2m (2020 £2.9m). The property and infrastructure assets are subject to valuation by external valuers and despite the ongoing impact of Covid-19 on the market and wider economy, the valuers have advised the pension fund that they are satisfied with the valuation of the assets at 31 March 2021. The actuaries have also given due consideration to the impact of Covid-19 on mortality rates and a prudent approach has been taken, following the guidance of the Institute and Faculty of Actuaries 'Continuous Mortality Investigation' 2020. Details of life expectancy are detailed in note 7 Pensions. The Fund Actuary has changed their standard approach to setting the CPI assumption, to take account of RPI reform. The method for calculating the RPI assumption (on which the CPI assumption is based) has been updated, resulting in a reduction in the Defined Benefit Obligation (DBO) of £0.8m. In addition, the difference between CPI and RPI (the RPI-CPI wedge) has been updated, resulting in an increase in DBO of £1.6m. These changes are linked, and are based on pre-2030 and post-2030 rates.

157

YEAR ENDED 31 MARCH 2021

1. ACCOUNTING POLICIES (CONTINUED)

Apportioned costs

The BFI incurred costs which are shared between Lottery and other activities, relating to operating costs for the year, restructuring costs and costs arising from capital spend attributable to Lottery. The BFI is required to apportion costs in accordance with the principles of full cost recovery as outlined in Managing Public Money. In addition to costs wholly attributable to Lottery activities, an assessment is made of the other costs attributable to Lottery activities incurred by service and other departments. This is based on a combination of head count, office space occupied, activity levels and additional expenditure incurred. These departments include Finance & Resources, External Affairs and the Chief Executive's Office.

National Lottery Distribution Fund

Balances held in the National Lottery Distribution Fund (NLDF) remain under the stewardship of the Secretary of State for Digital, Culture, Media and Sport. The share of these balances attributable to the BFI is as shown in the financial statements at an estimate of market value and, at the date of the statement of financial position, has been certified by the Secretary of State for Digital, Culture, Media and Sport as being available for distribution by the BFI in respect of current and future commitments. With the introduction of IFRS 9 funds held at the National Lottery Distribution Fund are held as financial instruments held at amortised cost.

As the investments are held with the Debt Management Account and the National Loans Fund, these are exempt from recognising stage 1 and stage 2 impairment so no expected credit losses have been calculated for these investments.

The share of proceeds and investment returns attributed to the BFI has been treated as income within these financial statements.

Other Financial instruments

Other Lottery financial instruments include trade receivables and payables that arise directly from Lottery operations. The main risks arising from the financial instruments in the Lottery accounts are interest rate risk, foreign currency risk and other price risk. Further detail of this can be found in note 14 below.

Film rights

Film rights represent investment awards paid and payable to filmmakers which are repayable under certain conditions. Where a feature film made with the assistance of the BFI is successfully released, the BFI is entitled to participate in revenues generated by that success. This can lead to repayment of the investment in full, together with a share of the profits generated by the film.

Under International Financial Reporting Standards (IFRS 9) film rights fall within the definition of Financial Instruments. Within that, they meet the definition of assets measured at fair value with gains and losses being recognised in the profit and loss account (FVTPL). The fair value, in line with definitions of IFRS 9, is based upon cash flows and models of future income that may be generated by the film right asset. The calculations behind these models are based upon external factors such as sales agents' estimates, actual sales made, and the recoupment order agreed in the financing contract between investors as well as internal factors such as the skills and expertise of management involved in these calculations and a review of the historic performance of the portfolio.

When an advance is made for an award (satisfying the definition of an award liability as above) the award is taken to the Statement of Financial Position initially at the full value of the award. An assessment is then made of the likely repayment of the award, if any, over the next seven financial years, with the valuation adjusted to the extent that the repayment of the award is considered doubtful. The impairment is calculated either as standard percentage suggested by historic recoupment performance of that particular type of award, or based on the value suggested by future estimated receipts.

In subsequent years, the Film Rights valuations are reviewed to ensure that all revenues due are received and the valuation remains appropriate. The valuations are based on the best available information at the Statement of Financial Position date and the valuations will change over time. For instance, on production awards, the actual value of sales made to a territory may exceed or fall below the original sales estimate provided by the sales agent or the box office performance may exceed or fall below the initial projections following the release of a film.

At 31 March 2020 a further global provision was added in to the detailed review in recognition of the uncertainties arising from the COVID-19 pandemic and the unknown impact on future film sales and audience appetite for cinema attendance as a result of the lockdowns and their easing into the subsequent tier system. In light of the continuing uncertanties arising from the pandemic prevalent at 31st March 2021 the inclusion of such a provision was continued

Movements in adjustments shown in the statement of Comprehensive Net Expenditure reflect the net effect of increases and decreases in adjustments against film rights in the year. Any adjustment may be reversed in part or in full if the valuation understates the fair value of the film rights. Advances for development and short film awards are fully impaired in the year of the award, unless there is a reasonable expectation of repayment in the next seven financial years.

Movements in Film Rights valuations shown in the Statement of Comprehensive Net Expenditure reflect the net effect of increases and decreases in valuations against Film Rights in the year. Awards are fully impaired unless there is a reasonable expectation of repayment in the next seven financial years.

158

YEAR ENDED 31 MARCH 2021

1. ACCOUNTING POLICIES (CONTINUED)

If the valuation of the film rights is in excess of the amount of the award investment based on estimated recoupment over the next seven financial years, this is similarly recognised in the film rights valuation and released to income as the recoupment is received. In the context of the life of a film and its distribution cycle, seven years is felt to be a reasonable period over which a meaningful forecast can be taken, and is consistent with practice across the film industry.

Should the full amount of an award for film rights not be utilised, any unused element of the funding will be decommitted. If such a decommitment exceeds the impaired value of the film, then any necessary impairment will be released back to the Statement of Comprehensive Net Expenditure so the remaining impairment is not greater than the value of the revised investment value.

Film recoupment income

Income received from film rights is offset against the value of the film rights on the Statement of Financial Position.

Income in excess of the original value of the rights is taken to the statement of comprehensive net expenditure as film recoupment income.

Foreign currencies

Monetary assets and liabilities denominated in foreign currencies are retranslated at the rate of exchange ruling at the date of the statement of financial position. Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. All differences are taken to the statement of comprehensive net expenditure.

Lease costs and commitments

BFI Lottery pays rental to the BFI for the proportion of desk space occupied in the Stephen Street offices, in line with the terms of the lease on these premises to March 2031.

In accordance with FReM this lease obligation is recognised on Statement of Financial Position matched to a Right of Use asset. The former of these is reduced by the annual payment of lease liabilities including both rental and interest (finance) charge, whilst the latter is depreciated annually.

This differs from the treatment in the BFI Charity and Group accounts where, under the Charities SORP, rentals payable under operating leases are charged in the group statement of financial activity on a straight-line basis over the lease term.

Pensions

The BFI operates a defined benefit pension scheme for employees joining on or before 31 December 2013, and a defined contribution scheme for subsequent joiners, with an apportionment of the costs and liability being made to Lottery on an assessment of appropriate relative levels of staffing.

A defined benefit pension scheme is a post employment benefit plan. The BFI's net obligation in respect of this is calculated by estimating the amount of future benefits that employees have earned in return for their service in the current and prior periods. That benefit is discounted to determine the present value.

The pension liabilities and assets of the scheme are recorded in accordance with IAS 19. This measures the value of pension assets and liabilities at the statement of financial position date, determines the benefits accrued in the year, and the interest on the scheme's assets and liabilities. The valuation is undertaken by a qualified actuary.

The BFI operates a defined contribution scheme for employees joining on or after 1 January 2014. The amount charged to the Statement of Comprehensive Net Expenditure in respect of pension costs and other post-retirement benefits is the contribution payable in the year.

Provisions for award commitments

Provisions for award commitments arise where the BFI has agreed in principle to fund a scheme or project and made an offer, but where at the date of the statement of financial position either contracts have not been signed and/or the conditions precedent not met. Therefore these transactions are recognised as an award commitment but are not included in awards payable at the date of the statement of financial position but as a provision. Provisions are released in the following accounting periods as the offers of funding are contractually agreed and the associated conditions met. Across the year these criteria for drawdown of these funds had been amended in support of the sector, as part of the BFI Lottery response to the COVID-19 pandemic and resultant lockdown, and the impact of this on the industry.

Reserves

The Lottery reserve primarily represents the carrying value of film investments made by the UK Film Council prior to 31 March 2011 and British Film Institute since 1 April 2011, and uncommitted funds held at the National Lottery Distribution Fund, which are offset by all outstanding award liabilities.

The pension reserve represents the liability arising on the valuation of the BFI pension fund at year end, as notified by the actuaries.

159

YEAR ENDED 31 MARCH 2021

1. ACCOUNTING POLICIES (CONTINUED)

Segmental reporting

The BFI is required under the Lotteries Act to produce statutory accounts which cover its operations as a Lottery distributor to 31 March 2021. These are reported to the Board of Governors and the Chief Executive Officer as a stand-alone entity. Therefore in the context of IFRS8 no additional disclosure of segmental reporting is deemed appropriate.

Analysis of total expenditure between administrative and programme spend

Under the definitions of the Financial Reporting Manual 2020-21 all activities in these accounts are programme spend.

Standards, amendments and interpretations to existing standards not yet effective

The application of any new or amended International Financial Reporting Standards is governed by their adoption into the FReM issued by HM Treasury. Usually such changes are not put into effect by the FReM until the effective date of the related IFRS, although occasionally some changes are adopted early or might be delayed. The following standards have been published but are not effective for the periods presented. The BFI has chosen not to adopt these standards early as they are either not relevant to the circumstances of the BFI Lottery Distribution activities or are not considered to have a significant impact on the financial statements:

IFRS 17: Insurance contracts (Effective The new standard replaces IFRS 4, detailing the required BFI Lottery does not provide and insurance from periods starting on or after 1 policy for the recognition and measurement of insurance contracts in its normal course of business. January 2022) and re-insurance contracts, adding detail on the required approach to valuing insurance contracts.

2. LOTTERY INCOME AND THE NATIONAL LOTTERY DISTRIBUTION FUND

The movement in balances held at the NLDF is as follows:
Opening balance held at the NLDF
Income received from the Lottery
Investment income earned
Available for distribution
Cash drawn down
Balance as at 31 March		 2020-21
£'000
53,804
49,044
29
102,877
(49,757)
53,120		 2019-20
£'000
52,757
48,025
232
101,014
(47,210)
53,804

The funds are invested on behalf of the NLDF by the National Debt Commissioners. The BFI's distribution is in accordance with Sections 22 and 23 of the National Lottery etc. Act 1993 (as amended by the National Lottery Act 1998). The BFI is required by statute to show on the statement of financial position the lower of the market value or the cost of the investment as at the year end. There were no unrealised gains in the year (2020: nil).

Income received from the Lottery

Underlying lottery sales in 2020-21 improved on those of the previous year, despite the drop of in the early weeks of the year resultant from the COVID-19 pandemic and consequent national lockdown. However, the income includes the variable factor of receipts of unclaimed prize money:

Income received from Lottery therefore contains: 2020-21 2019-20
£'000 £'000
Unclaimed prize money 2,744 3,331

160

YEAR ENDED 31 MARCH 2021

3. FILM RIGHTS RECEIPTS AND RECOUPMENT INCOME

The BFI receives income generated from rights in the portfolio of film projects invested in since 1 April 2011. Additionally under the transfer agreement with UK Film Council, the BFI receives all future income generated from rights in the portfolio of films transferred from the UK Film Council and Arts Council England at that date.

Income received from film rights is offset against the value of the film rights on the statement of financial position. Income in excess of the original value of the rights is taken to the statement of comprehensive net expenditure as film recoupment income through the movement in fair value reserve.

Total film receipts taken as income
Billy Eliott
3 films generating < £100,000
Been So Long
Saint Maud
Wild Rose (aka Country Music)
16 films generating < £100,000
Been So Long
Benediction
Boxing Day
Brian and Charles
Earwig
The Fantastic Flitcrofts
Kenuske's Kingdom
Medusa Deluxe
Misbehaviour
Mothering Sunday
The Origin
Pretty Red Dress
Saint Maud
True Things About Me
Wild Rose (aka Country Music)
84 films generating < £100,000
Total film receipts taken against film rights on the statement of financial position
Those film receipts where the revenue is taken as income related to:
Arts Council England and UK Film Council portfolio
BFI portfolio
Total film receipts taken against film rights on the statement of financial position		 2020-21
£'000
803
4,074
4,877		 2019-20
£'000
1,553
4,476
6,029
2020-21
£'000
132
143
275
102
217
128
81
528
803
2020-21
£'000
328
257
122
175
100
121
140
235
278
222
100
130
475
143
223
1,025
4,074

161

YEAR ENDED 31 MARCH 2021

4 NON-FILM RIGHTS AWARDS

Non-film rights awards are made across a number of schemes operated by the BFI. The majority of awards are for single projects which are anticipated to be completed within one year. With the implementation of our 5 year plan, BFI2022, and in comparison to previous years, no significant multi-year awards were made. However, awards were made in the year to March 2021 for activities to March 2022.

The activity support areas itemised below are those areas where it is deemed that activity on behalf of the industry and indeed the public at large, and funded by Lottery monies, are most cost effectively and efficiently carried out by the BFI as the lead body for the film sector.

Analysis of non-film rights awards by strand:

Funding to cover the future years
Film Education awards
Film Skills Fund
Audience fund awards
Film Audience Network fund
Film Heritage fund
Talent Network awards
International awards
National Cluster Growth Fund (production hub awards)
Project or single year funding to cover the period to March 2021
Creative Enterprise
Education fund awards
Rewarding Success
Talent Network awards
Vision awards
Audience Fund
International awards
Research and Statistics awards
Production services award
Film Fund awards (non-film rights)
Film Skills Fund awards
Film Academy awards
Distribution and Exhibition awards
London Film Festival
Film Audience Network fund
Development Fund
Diversity awards
Activity support
Diversity
Research and statistics
Total Lottery non-film rights		 New awards in
the year
Decommit-
ments
Awards net of
fall ins
£'000
£'000
£'000
(4,888)
(4,888)
(4,190)
(4,190)
(3,811)
(3,811)
(3,300)
(3,300)
(3,263)
(3,263)
(1,210)
(1,210)
(575)
(575)
-
-
(21,237)
-
(21,237)
(1,540)
(1,540)
(1,384)
68
(1,316)
(1,252)
(1,252)
(1,211)
12
(1,199)
(1,000)
(1,000)
(979)
8
(971)
(680)
34
(646)
(640)
6
(634)
(550)
(550)
(503)
10
(493)
(400)
(400)
(480)
117
(363)
(295)
(295)
(1,250)
1,000
(250)
(53)
213
160
233
233
-
(12,217)
1,701
(10,516)
-
(284)
-
(284)
(284)
-
(284)
(33,738)
1,701
(32,037)
2020-21*		 2019-20
Awards net of
fall ins
£'000
(4,887)
(5,389)
(3,848)
(3,300)
(2,275)
(977)
-
(1,000)
(21,676)
-
72
(1,911)
(1,456)
-
(1,383)
(1,506)
(476)
-
-
(3,149)
(449)
(21)
(900)
-
7
33
(11,139)
-
(340)
(340)
(33,155)

Rewarding success above represents recoupment received in the year under the producer corridor arrangements and thus held on behalf of filmmakers. Further information is provided in note 19.

162

YEAR ENDED 31 MARCH 2021

5. FILM RIGHTS

Under IFRS 9 the valuation of the films rights assets are determined on the basis of level 3 inputs, with unobservable inputs being used for the asset as there is no market activity for these assets at the balance sheet date. The valuation approach to establish the fair value of the film rights portfolio is set out in Note 1 : Accounting Policies.

The BFI's primary objective in investing in film rights is to support the future success of British film by backing new voices, new stories, new ideas and skills, enriching and diversifying British film production. Thus whilst the potential commercial success of a project is important in our assessment of an application it is not the only funding criteria.

The fair value of film rights at 31 March is as follows:

The fair value of film rights at 31 March is as follows:
Production Awards
Vision Awards
Development Awards
Distribution Awards
Other Awards
Film Rights valuation		 2020-21
2019-20
2018-19
2017-18
2016-17
£'000
£'000
£'000
£'000
£'000
9,760
11,330
12,181
10,210
10,370
1,411
1,238
1,323
1,368
1,500
227
534
284
333
374
162
235
220
489
329
-
-
0
30
54
11,559
13,337
14,008
12,430
12,627

Film rights are recognised as split between current and non-current assets, on the basis of a review of the characteristics of the loans across the portfolio and the anticipated cash flows from these:

Film rights - non-current
Film rights - current		 2020-21
2019-20
2018-19
2017-18
2016-17
£'000
£'000
£'000
£'000
£'000
9,228
10,532
8,249
7,492
7,627
2,331
2,805
5,759
4,938
5,000
11,559
13,337
14,008
12,430
12,627

Production awards are made to producers to co-finance feature film productions and from which we are entitled to recoup our award and take a share of net profits from the film. The value of the productions will be dependent upon many factors which are inherently uncertain; the ability of sales agents to meet sales estimates, how the film will be critically and commercially received (including box office projections and exchange rates) all play a role. Further details are set out below.

Vision Awards are made to production companies to enable them to develop their business and the awards are repayable from any applicable feature film production made by the production company. As we do not expect all recipients to be required to repay the award in full we routinely impair 50% of the recoupable amount of the award in the year in which it is committed.

Development awards are made to producers to support a film development. In the event that the development project progresses into a feature film production, we would be entitled to be repaid our award and take a share of net profits. Accordingly development awards are impaired in full in the year in which the award is made, unless there is a reasonable anticipation of it progressing to production.

Distribution awards are made to distributors to support the release of a film in the UK and repayable dependent upon the performance of the film release.

Other awards include targeted development awards which are awarded to support new talent. These awards are written off in full in the year unless there is a reasonable expectation of recoupment.

Movements in the valuation of film rights

Film rights valuation at 1 April
New commitments: made in year
Decommitments: historical portfolio
Repayment of investments: new film
rights in year
Adjustments: new film rights in year
Adjustments: historical portfolio
Adjustments written back
Repayment of investments: historical portfolio
Decommitments: new film rights in year
Film rights valuation at 31 March		 2020-21
2019-20
2018-19
2017-18
2016-17
£'000
£'000
£'000
£'000
£'000
13,337
14,008
12,430
12,627
10,970
22,275
17,002
20,840
18,783
23,150
(370)
-
(3)
(23)
-
(178)
(461)
(369)
(451)
(315)
(1,528)
(285)
(588)
(508)
(539)
(2,547)
(4,191)
(3,546)
(5,024)
(4,647)
(17,559)
(13,932)
(16,110)
(15,530)
(19,114)
(5,174)
(3,873)
(2,476)
(2,315)
(1,971)
3,303
5,069
3,830
4,871
5,093
11,559
13,337
14,008
12,430
12,627

163

YEAR ENDED 31 MARCH 2021

5. FILM RIGHTS (CONTINUED)

The value of new commitments made in the year will vary due to timing differences arising from the closure of awards.

The valuation of the Film Rights is based on the anticipated cash receipts over the next seven financial years after the Statement of Financial Position date. In relation to recent production awards (that is production awards that were recognised as awards payable this financial year and the last three financial years), the valuation is based on the cash receipts anticipated from the first cycle of revenues including revenues from cinema, DVD, Video On Demand and television. In relation to older production awards, the valuation is based on the anticipated cash receipts for the next seven years following the balance sheet date calculated from the individual film's historic cash receipts. All such anticipated cash receipts are discounted using the applicable Treasury Rate of 3.7% (2020: 3.7%).

The value of adjustments on new film rights in the year is always governed by the value of awards made and therefore can vary considerably year to year.

As at 31 March 2021, the Film Rights valuation for production awards is £9.8m (2020: £11.3m) and for all other Film Rights is £1.8m (2020: £2.0m) totalling £11.6m (2020: £13.3.0m). For production awards, were the recoupment levels and valuation to vary by +/- 5%, the impact of the valuation of Film Rights at 31 March 2021 would be £0.5m for 207 awards (2020: £0.6m for 186 awards).

In relation to older production awards, the Film Rights valuation is calculated on the assumption that the future anticipated receipts will be based on the historic cash receipts for the two years prior to the Statement of Financial Position date, subject to an 85% default reduction every three years, except for films in profit which are calculated on the assumption that the future anticipated receipts will be based on the historic cash receipts for the three years prior to the Statement of Financial Position date, subject to a 75% default reduction every three years. The total amount of the Film Rights valuation based on this methodology is £4.3m (2020: £5.2m). Were this default reduction percentage to change by +/- 10% the Film Right valuation would change by :

£'000 £'000 £'000
+10% 0.00% -10%
2020-21 (400) 4,320 390
2019-20 (560) 5,240 400

In relation to recent production awards (that is production awards that were recognised as awards payable this financial year and the previous three financial years), the Film Rights valuation is based on future anticipated receipts. These cash receipts are principally earned in US dollars and converted to pounds sterling before payment is made to the BFI's bank accounts. The default pound sterling to US dollar exchange rate is calculated using the average daily exchange rate for the two years to the Statement of Financial position date rounded to the nearest 5 US cents. The default rate as at 31 March 2021 for production awards is US $1.30 (2020:US $1.30).

Had the pound sterling to US dollar exchange rate been $1.40, for the purposes of the Film Rights valuation, then the valuation of the total of these production awards would be reduced by £0.5m (and the awards at March 2020 would reduce by £0.4m). Were the valuation calculated using US $1.20, then these valuations would be increased by £0.6m (and the awards at March 2020 would increase by £0.7m).

Further information on the movement on film rights can be found on the BFI website: http://www.bfi.org.uk/about-bfi/annual-review-managementagreement.

6. STAFF COSTS

No member of the Board of Governors received remuneration during the year (2020: none).

The costs of staff working wholly on Lottery activities comprised:
2020-21
£'000
Wages and salaries
1,826
Social Security costs
206
Pension service costs and other pension costs
312
2,344
The average number of staff (full-time equivalents) employed during the year was made up as follows:
2020-21
Number
Management and administration:
Permanent staff
40
40		 2019-20
£'000
1,888
213
283
2,384
2019-20
Number
38
38

Staff costs for the year are contained within the costs apportioned from grant-in-aid on the statement of comprehensive net expenditure.

164

YEAR ENDED 31 MARCH 2021

6. STAFF COSTS (CONTINUED)

The remuneration of the Chief Executive Officer and costs attributable to Lottery during the year are as follows:

Ben Roberts
Salary and benefits
Total
Pension contribution
Amanda Nevill (to 14.2.20)
Salary and benefits
Total
Pension contribution
Ben Roberts (from 14.2.20)
Salary and benefits
Total
Pension contribution		 2020-21
£
%
150,000
150,000
44.0%
23,000
2019-20
£
%
169,058
169,058
51.0%
19,422
20,605
20,605
51.0%
2,370		 Attributable
to Lottery
£
66,001
66,001
10,121
Attributable
to Lottery
£
86,220
86,220
9,915
10,509
10,509
1,209

The percentage of the remuneration of the Chief Executive Officer apportioned to Lottery is reviewed on an annual basis.

7. PENSION BENEFITS

The BFI Is an admitted body of the LPFA. Although membership of the scheme is open to all employees, only those costs relating to staff employed on Lottery activities are disclosed in these accounts. An apportionment of the pension assets and liabilities is calculated on the basis of the numbers of staff employed on Lottery activities and their pensions contributions in year as a percentage of those of the whole organisation.

The pension scheme is (for joiners on or prior to 31 December 2013) a defined benefit scheme and is funded by employees and employers at actuarially determined rates. Employer contributions charged for members of the defined benefit scheme amounted to £0.3m (2020: £0.3m)

Following the advice of the consulting actuaries to the scheme, the BFI’s employer contributions for current service (as a percentage of the pensionable salary) were set at 11.5% throughout the year (2020: 11.5%).

A valuation under IAS19 as at March 2021 was carried out by a qualified independent actuary. The assumptions used by the actuary for the BFI’s scheme were:

2020-21 2019-20
% %
Rate of increase in salaries 3.85 2.9
Rate of increase in pension payments 2.85 1.9
Discount rate 2.0 2.35
Inflation assumption (CPI) 2.85 1.9
Average life expectancy at 65:
Under the adopted mortality tables, the assumed life expectancy from age 65, weighted by liability, are as follows:
2020-21 2020-21 2019-20
(after CMI-2020 update) (before CMI-2020 update) (before CMI-2020 update)
Years Years Years
Life expectancy at age 65 of female aged 45 26.1 26.2 26.1
Life expectancy at age 65 of female aged 65 24.3 24.5 24.4
Life expectancy at age 65 of male aged 45 23.4 23.8 23.7
Life expectancy at age 65 of male aged 65 22 22,3 222

165

YEAR ENDED 31 MARCH 2021

7. PENSION BENEFITS (CONTINUED)

The estimated asset allocation as at 31 March was:

The estimated asset allocation as at 31 March was:
Equities
Target return portfolio
Infrastructure
Property
Cash
Total market value of assets
The net pension liability was:
At 31 March 2021
At
£'000
Present value of funded obligation
(17,117)
Fair value of scheme asset
12,167
Net liability
(4,950)
The amounts recognised in the statement of comprehensive net expenditure are as follows:
Current service cost
Net interest on the defined liability
Administration expenses
Total
Actual return on plan assets
Amounts recognised in statement of changes in equity:
Return on plan assets in excess of interest
Other actuarial gains/(losses) on assets
Change in financial assumption
Experience (loss)/gain of defined benefit obligation
Cumulative remeasurements in statement of changes in equity
Changes in the present value of the defined benefit obligation:
Opening defined benefit obligation
Current service cost
Past service cost
Interest cost
Contributions by members
Change in financial assumptions
Experience gain/(loss) on defined benefit
Benefits paid
Closing defined benefit obligation
Remeasurements recognised in the statement of changes in equity		 2020-21
Long term
rate of return
expected
£'000
6,693
2,798
1,095
1,095
486
12,167
31 March 2020
At
£'000
(13,059)
10,387
(2,672)
2020-21
£'000
(455)
(61)
(17)
(533)
1,709
2020-21
£'000
1,466
-
(3,686)
168
(2,052)
(4,647)
2020-21
£'000
(13,059)
(455)
-
(304)
(107)
(3,686)
168
326
(17,117)		 2019-20
Long term
rate of return
expected
£'000
5,609
2,701
727
1,039
311
10,387
31 March 2019
£'000
(13,347)
10,703
(2,644)
2019-20
£'000
(528)
(61)
(19)
(608)
(40)
2019-20
£'000
(296)
(401)
1,178
(84)
397
(2,595)
2019-20
£'000
(13,347)
(528)
(115)
(318)
(120)
1,178
(84)
275
(13,059)

166

YEAR ENDED 31 MARCH 2021 7. PENSION BENEFITS (CONTINUED)

Changes in the fair value of the scheme assets:
Opening fair value of employer assets
Contributions by members
Contributions by employer
Interest on assets
Return on assets less interest
Other actuarial gains/(losses)
Admin expenses
Benefits paid
Closing fair value of employer assets
The sensitivity analysis on the major assumptions in the above, and based on the whole scheme is:
Adjustment to discount rate
Present value of total obligation
Projected service cost
Adjustment to long term salary increase
Present value of total obligation
Projected service cost
Adjustment to pension increases and deferred valuation
Present value of total obligation
Projected service cost
Adjustment to mortality age rating assumption
Present value of total obligation
Projected service cost
A history of experience gains and losses is shown below:
Fair value of employer assets
Present value of defined benefit obligation
Deficit
Experience gains on assets
Direct Lottery costs
Direct staff costs
Other staff costs (including agency staff, training and recruitment)
Travel and subsistence
Events and other hospitality
Professional fees: Audit - National Audit Office
Professional fees: other
Depreciation re right of use asset
Other
Recharged costs from BFI non-lottery activities re support functions
Total operating costs
Finance costs
Interest re lease on right of use asset
Net return on pension assets
Total financing costs
Total operating costs
8. OPERATING COSTS and OTHER FINANCE COSTS
From 1 January 2014 the BFI also operates a defined contribution pension scheme which is available
benefit scheme.		 2020-21
2019-20
£'000
£'000
10,387
10,703
107
120
307
299
243
256
1,466
(296)
-
(401)
(17)
(19)
(326)
(275)
12,167
10,387
£'000
£'000
£'000
+0.1%
0.0%
-0.1%
16,769 17,117 17,473
674
696
718
+0.1%
0.0%
-0.1%
17,150 17,117 17,084
696
696
696
+0.1%
0.0%
-0.1%
17,436 17,117 16,804
718
696
674
+ 1 year
0.0%
- 1 year
17,896 17,117 16,374
728
696
666
2020-21
2019-20
£'000
£'000
12,167
10,071
(17,117)
(12,771)
(4,950)
(2,700)
1,709
(40)
2020-21
2019-20
£'000
£'000
2,342
2,355
60
71
-
142
2
25
52
52
46
32
155
155
298
(80)
2,956
2,752
2,420
2,810
5,376
5,562
35
37
77
195
112
232
5,488
5,794
for all employees not already in the defined		 2019-20
£'000
10,703
120
299
256
(296)
(401)
(19)
(275)
10,387
(2,700)
(40)
2019-20
£'000
2,355
71
142
25
52
32
155
(80)
the defined
2,752
2,810
5,562
37
195
232
5,794

167

YEAR ENDED 31 MARCH 2021

8. OPERATING COSTS (CONTINUED)

The direct lottery costs are those of the front-line award making departments. These costs are those of the Film Fund (International, Production, Operations, Audience Fund, Deputy CEO Office), Education Directorate, Education Partners, Business Affairs and Production Finance. These costs cover the administration and processing of grants, project development and other costs, the costs of generating recoupment and talent support and development activities.

The remaining costs are those central costs of the BFI attributed to Lottery relating to CEO, External Affairs, and support functionality such as Finance, HR, IT and Digital.

Costs of generating recoupment relate to the costs of generation and management of BFI income from the investments in film rights within Business Affairs, Production Finance and the Film Funds - in 2020-21 these stood at £0.8m (2020: £0.8m).

Other Finance Costs
Net return of assets re pension
Interest on rental of right of use assets
9. LEASEHOLD IMPROVEMENTS
Release of prepayment of capital transfer to BFI		 2020-21
£'000
77
35
112
2020-21
£'000
362
362		 2019-20
£'000
195
37
232
2019-20
£'000
369
369

The above prepayment relates to the contribution made to the capital works undertaken by BFI on the Stephen Street offices in relation to the transfer of staff and activities with the closure of UK Film Council and the appointment of BFI as Lottery Distributor from April 2011. The assets are held in the BFI Charity/Group. The lottery contribution was advanced to match the spend, being treated as a prepayment being released over the period of the Stephen Street lease and thus matching the amortisation of this spend in the Charity/Group accounts.

10. RIGHT OF USE ASSETS and LEASE LIABILITIES

As at 31 March 2021, the BFI had a right of use asset reflecting a non-cancellable operating leases relating to the BFI offices in London running until March 2031. With the introduction of IFRS 16: Lease Accounting, this is now shown in the accounts as a trade receivable split between the amounts falling due within and over one year - these are matched to the lease liability.

Right of use asset at 1 April
Depreciation in year
Right of use asset at 31 March
Right of use asset recognised in the year		 At 31 March
2021
£'000
1,705
-
(155)
1,550		 At 31 March
2020
£'000
-
1,860
(155)
1,705

Consequently a lease liability was recognised in year with the finance cost calculated using the HMT discount rate of 1.99%

Lease liability at 1 April
Lease liability recognised in year
Repayment of lease liabilities
Finance cost in year
Lease liability at 31 March
Trade and other receivables falling due within one year
Prepayments and accrued income
Trade debtors
Other receivables - BFI Exchequer
Other receivables
Total trade and other receivables falling due within one year
11. TRADE AND OTHER RECEIVABLES		 1,721
-
(176)
35
1,580
At 31 March
2021
£'000
-
823
-
297
1,120		 -
1,860
(176)
37
1,721
At 31 March
2020
£'000
362
337
16
259
974

168

YEAR ENDED 31 MARCH 2021

12. CASH AND CASH EQUIVALENTS

Cash and cash equivalents at 1 April
Net change in cash and cash equivalent balances
Cash and cash equivalents at 31 March		 At 31 March
2021
£'000
8,559
(110)
8,449		 At 31 March
2020
£'000
6,499
2,060
8,559

£3.2m (2020: £3.9m) of cash held in BFI lottery bank accounts is funds recouped by BFI and held on behalf of producers under the "Rewarding Success" recoupment corridor. See note 16: Provisions.

All Lottery cash balances are held in commercial bank accounts.

13. FINANCIAL INSTRUMENTS

International Financial Reporting Standards require disclosure of the role which financial instruments have had during the period, in creating or changing the risks the BFI faces in undertaking its role.

Film rights

Under International Financial Reporting Standards (IFRS 9) film rights fall within the definition of Financial Instruments. Within that, they meet the definition of assets measured at fair value with gains and losses being recognised in the profit and loss account (FVTPL).

Establishing the fair value of film rights is subjective and therefore contains an element of risk. The fair value is based on a review of external evidence such as the sales agents' estimates as to the likely revenues generated by a project, where it is in the life cycle of the project, and upon actual performance of the film to date. This is matched with the knowledge and experience of the staff and management involved in the process of assessing the projects both at application stage and as they come to fruition. Any reduction in fair value is immediately taken to the statement of comprehensive net expenditure in the year.

The valuation of film rights is subject to on-going annual review to ensure a fair value is maintained and thus mitigating the risk of a perceived overstatement of the value, with any adjustments being charged as expenditure.

Film rights valuations at 31 March
Film rights falling due in excess of one year
Film rights falling due within one year		 2020-21
£'000
9,228
2,331
11,559		 2019-20
£'000
10,532
2,805
13,337

Liquidity risks

Whilst lottery distributors are permitted to over-commit in awards against the surety of future lottery income, the BFI awards are over a relatively short term. Thus risk of holding insufficient resources to cover liabilties is held under constant review across the year, to ensure that this risk is minimised, by review of current funds held in cash and at the National Lottery Distribution fund versus the levels of commitment.

Lottery cash inflows can be analysed as:
£'000
%
Income received from the National Lottery
49,044
90.7%
Investment returns from the balance held at the NLDF
29
0.1%
Recoupment income from film rights
4,877
9.0%
Other income including legacies, grants and donations
97
0.2%
54,047
100.0%
Lottery awards payable
Under commitment against funds available at 31 March
2020-21
NLDF balance at 31 March as notified by the Secretary of State for Digital, Culture, Media and Sport
Lottery funds held in cash and cash equivalents by the BFI at 31 March
Film rights award allocations noted as contingent liabilities
Provision for non-Lottery film rights awards		 £'000
%
49,044
90.7%
29
0.1%
4,877
9.0%
97
0.2%
2020-21		 £'000
%

48,025
88.3%

232
0.4%

6,029
11.1%

95
0.2%

54,381
100.0%
2020-21
2019-20
£'000
£'000
53,120
53,804
8,449
8,559
61,569
62,363
2020-21
2020-21
£'000
£'000
18,495
22,083
25,644
16,809
4,536
5,117
48,675
44,009
12,894
18,354
2019-20		 £'000
%
48,025
88.3%
232
0.4%
6,029
11.1%
95
0.2%
2019-20		 £'000
%
48,025
88.3%
232
0.4%
6,029
11.1%
95
0.2%
2019-20
54,047
100.0%		 54,381
100.0%
2019-20
£'000
53,804
8,559
62,363
2020-21
£'000
22,083
16,809
5,117
44,009
18,354

169

YEAR ENDED 31 MARCH 2021 13. FINANCIAL INSTRUMENTS (continued) National Lottery Distribution Fund

Under IFRS 9 funds held at the National Lottery Distribution Fund are held as financial instruments held at amortised cost. The funds are invested on behalf of the NLDF by the National Debt Commissioners over which the BFI has no control and therefore has capacity to mtigate any risk here-in.

Interest rate risks

Interest rate risk is deemed low for the BFI as it does not have any interest payable. With the restrictions on how public bodies may hold cash, and in the current climate of nil interest rates on bank current accounts the BFI similarly has little risk of not ensuring it is maximising interest on its own cash holdings.

The BFI’s largest financial asset is retained in the NLDF, which invests in a narrow band of low risk assets such as Government bonds and cash. Neither the BFI nor its Governors has any control over these investments. The interest rate risks in respect of these financial assets are disclosed in the financial statements of the NLDF.

2020-21 2019-20
£'000 £'000
Market value of BFI investment at NLDF at 31 March 53,120 53,804
Average investment return at NLDF 0.10% 0.72%

Cash drawn from the NLDF, or received from other sources, to pay grant commitments and operating costs are held in variable rate bank accounts:

2020-21 2019-20
£000s £000s
Lottery funds held in cash and cash equivalents by the BFI at 31 March 8,449 6,499
Average interest rate on cash held in variable rate bank accounts 0.13% 0.40%

Foreign currency risks

The BFI’s financial assets are not exposed to material foreign exchange risks as long-term balances are held in sterling, however foreign currency exchange risks are significant in the valuation of the Film Rights as explained in note 6: Film Rights

14. TRADE AND OTHER PAYABLES

Other payables (including lease liability)
Other payables due in < 1 year
Other payables: lease liability
Lease payables due in >1 year		 At 31 March
2021
£'000
334
334
At 31 March
2021
£'000
1,437
1,437		 At 31 March
2020
£'000
910
910
At 31 March
2020
£'000
1,581
1,581

As at 31 March 2021, the BFI had total minimum payments under a non-cancellable operating lease relating to the BFI offices in London running until March 2031. With the introduction of IFRS 16: Lease Accounting, this is now shown in the accounts as a lease liability matched to a right of use asset.

The proportion of these costs relating to these leases that form part of the costs apportioned to Lottery are:

Amounts payable within one year
Amounts payable within two to five years
Amounts payable over five years		 At 31 March
2021
£'000
144
607
830
1,581		 At 31 March
2020
£'000
141
595
986
1,722

170

YEAR ENDED 31 MARCH 2021

15. OTHER PAYABLES - AWARDS COMMITMENTS

At 1 April
New film rights commitments in year
Commitments transferred from prior year provision for non-film rights awards
New non-film rights commitments in year
Decommitments
Amounts paid
At 31 March
Award commitments payable at 31 March relate to:
Audience Development Fund - Organisation
Audience Development Fund - Projects
BFI Film Academy
Creative Enterprise
Development Fund
Film Audience Network Fund
Film Heritage
International Fund
Into Film
National Cluster Growth Fund
Other
Production Fund
Research and Statistics Fund
Skills
Talent Development
Vision Awards		 At 31 March
2021
£'000
22,083
24,297
12,915
7,423
(1,679)
(46,544)
18,495
At 31 March
2021
£'000
681
941
882
221
1,201
155
2,226
412
250
1,045
124
4,351
354
3,576
867
1,209
18,495		 At 31 March
2020
£'000
17,782
17,002
16,579
16,914
(466)
(45,728)
22,083
At 31 March
2020
£'000
960
1,072
285
143
1,068
1,019
1,810
984
-
-
114
3,834
303
9,323
1,125
43
22,083

Decommitments arise when any element of the award is not utilised once contracts are signed and drawdown has commenced.

Commitments transferred from the provision for non-film rights awards are as follows:

Film Education Awards
Film Audience Network
Heritage and Regional Archives
Audience Fund
National Cluster Growth Fund
Talent Network
Film Academies
International
Research Fund
Production Services Fund
Creative Enterprise		 At 31 March
2021
£'000
4,887
2,480
2,275
1,590
1,000
537
83
33
30
-
-
12,915		 At 31 March
2020
£'000
4,888
3,310
2,092
2,340
600
1,046
93
665
135
550
860
16,579

171

YEAR ENDED 31 MARCH 2021

15. OTHER PAYABLES - AWARDS COMMITMENTS (continued)

New non-film rights commitments in the year:

New non-film rights commitments in the year:
Project funding to 31 March 2021
Creative Enterprise
Film Education Awards
London Film Festival award
Audience Fund
International
Research Fund
Production Services
Film Academies
Film Audience Network
Talent Network
New commitments in year		 At 31 March
2021
£'000
1,540
1,308
1,250
1,086
676
553
550
247
213
-
7,423		 At 31 March
2020
£'000
-
8,553
900
2,776
1,591
450
-
494
1,710
440
16,914

Reconciliation of new awards in year per the statement of comprehensive net expenditure to new commitments, awards payable on the statement of financial position:

At 31 March
2021
£'000
Non-film rights awards taken to SOCNE in the year
32,037
Less spend on activity support in year
(284)
(23,723)
(607)
New non-film rights commitments taken as awards payable
7,423
Ageing of award commitments, estimated date of payment:
At 31 March
2021
£'000
Estimated payment within one year
18,495
At
Non Film Right
Awards
Rewarding
Success awards
Total
£'000
£'000
£'000
At 1 April
12,922
3,887
16,809
New provisions in the year
29,928
1,252
31,180
Provisions written back in year
(34)
-
(34)
Provisions released in year
-
(1,973)
(1,973)
Transferred to other payables - award
commitments
(20,337)
-
(20,337)
At 31 March
22,478
3,166
25,644
At 31 March 2021
16. PROVISIONS
Add back decommitments of awards from prior years taken as negative spend on
SOCNE
Less new awards in year taken to SOCNE but recorded by way of provision at year
end		 At 31 March
2020
£'000
33,155
(340)
(14,833)
(1,068)
16,914
At 31 March
2020
£'000
22,083
31 March 2020
Total
£'000
19,414
31,757
(10)
(859)
(33,493)
16,809

Provisions for award commitments arise where the BFI has agreed in principle to fund a scheme or project and made an offer, but where at the date of the statement of financial position either contracts have not been signed and/or the conditions precedent not met. Therefore these transactions are recognised as liabilities in the statement of financial position as provisions rather than payables. Provisions are released in the following accounting periods as the offers of funding are contractually agreed and the associated conditions met.

172

YEAR ENDED 31 MARCH 2021

16. PROVISIONS (continued)

The year end provision with regard to non film right awards relates to awards made by the BFI across a number of strands:

Film Education Awards
Audience Fund
Heritage and Regional Archives
Film Audience Network
Talent Network
International
Film Academies
Research Fund
National Cluster Growth Fund		 At 31 March
2021
£'000
9,523
4,437
3,263
3,140
1,210
584
233
87
-
22,478		 At 31 March
2020
£'000
4,892
2,480
2,275
1,590
536
36
83
30
1,000
12,922

A provision written back arises when the conditions of the terms of the award are not met prior to signature of contract.

Rewarding Success provision

The rewarding success initiative allows for a share of film recoupment income arising from lottery awards to be made available to UK Producers, Writers and Directors for their future film making activity. The funds held on behalf of film-makers ("the locked box") represents the monies held for this initiative at the balance sheet date and not yet drawn down.

Ageing of provisions, estimated date of payment
Amounts anticipated as payable within one year		 At 31 March
2021
£'000
25,644		 At 31 March
2020
£'000
16,809

At the date of the statement of financial position the BFI Lottery activities had no further provisions (2020: £nil).

17. CAPITAL COMMITMENTS

As at 31 March 2021, the BFI had no capital commitments outstanding related to Lottery distribution activities, therefore no costs are attributable to Lottery at the date of the statement of financial position (2020: £nil).

18. OTHER FINANCIAL COMMITMENTS and CONTINGENT LIABILITIES

Financial Commitments

At the date of the statement of financial position there were financial commitments representing film rights investments made by the BFI where the investment decisions had been taken by the BFI and notified to the applicants but either the contracts had not been signed and/or the conditions precedent not met. Therefore work had not commenced on the assets in which the BFI is investing, so neither the asset nor the matching liability are represented in the statement of financial position at that date.

Prior year awards
Talent Network awards
Production awards
Development awards
In year awards
Production awards
Development awards
Talent Network awards
Distribution awards
Financial commitments notified but not yet recognised in the financial statements		 At 31 March
2021
£'000
191
97
26
3,081
624
457
60
4,536		 At 31 March
2020
£'000
105
-
3,742
818
302
150
5,117

173

YEAR ENDED 31 MARCH 2021

18. OTHER FINANCIAL COMMITMENTS and CONTINGENT LIABILITIES (continued) Other Contingent Liabilities - Rewarding Success projects in Film Rights

The film rights valuation is based on the value of the initial BFI investment as detailed in the Accounting Policies note above. However on a number of these investments, the BFI Locked Box initiative applies and accordingly there is a potential and contingent liability with regard to the element of the valuation which would be made available to UK-filmmakers. The BFI Locked Box initiative enables UK-filmmakers supported through the BFI to benefit from their film’s success. In short, a share of income from supported film productions is put aside (into a BFI Locked Box) and can be used by the filmmakers for the development and/or production of their future projects or towards staff training. In the year these criteria were expanded to include support of organisational costs as part of the BFI's response to assist the industry as a result of the COVID-19 pandemic and resultant lockdown.

Contingent liability - rewarding success projects in film rights At 31 March
2021
£'000
2,975		 At 31 March
2020
£'000
3,002

19. CONTINGENT ASSETS

The National Lottery Distributors are entitled to receive a share of the receipts from the sale of land on Queen Elizabeth Olympic Park in return for their contribution of an additional £675 million to the funding of the London 2012 Olympic and Paralympic Games. This was announced in 2007. The arrangements are set out in a legal agreement between the Secretary of State and the Greater London Authority dated 29 March 2012 which sets out the distribution of funds between the GLA and the lottery distributors (via DCMS). The GLA has now advised that the land sales on the Olympic Park are now forecast to return less than £200m with payment beginning in 2026-27.

BFI will be entitled to receive a portion of the receipts from the sale in line with the 2.705% of the funds available to the good causes that the BFI receives as a lottery distributor.

Due to the inherent uncertainties over such a time period it is not possible to yet quantify the value of such land sales. However given the information above the BFI could expect to receive in excess of £5m.

20. RELATED PARTIES

The BFI maintains a publicly available register of Governors’ interests. Given their broad experience across the film sector, it is inevitable that Governors have connections with or interests in projects and organisations that may from time to time have come to the BFI for funding. All Governors are therefore required to declare any direct interest in and commercial relationships with award applications made to the BFI and that they had no role in the award-making process. Similarly, BFI employees were excluded from the decision-making around any relevant application involving any organisation or company in which they have a declared interest.

Governors receive no payment for their services and all payments to key management personnel have been disclosed in the Remuneration Report.

During the year the BFI entered into transactions, in the ordinary course of business, with related parties. National Lottery awards are included in film rights at the date of the statement of financial position or written off to expenditure within the year.

All awards outstanding are payable upon the meeting of conditions precedent within individual contracts.

The following related party transactions occurred during the period:

New awards
Relationship made year Balance as at
to recipient of ended 31 31 March
Recipient of funding Name Role with BFI funding March 2021 2021
£ £
BFI - London Film Festival Ben Roberts CEO CEO 1,250,000 -
BFI - Heritage 2022 Ben Roberts CEO CEO 3,263,000 3,263,000
StudioCanal Ltd Idris Elba Governor Film Director 60,000 60,000
Partner is
StudioCanal Ltd Ben Luxford Head of Audience Fund employee of
StudioCanal 60,000 60,000

Further potential updates

A number of BFI Governors and Staff are members of BAFTA, but with no formal management or governance role therein. BAFTA received a lottery award in the year ending 31 March 2021 of £9,400 (2020: £59,710) of which the full balance remained payable at that date.

174

YEAR ENDED 31 MARCH 2021

20. RELATED PARTIES (continued)

The BFI is a non-departmental public body sponsored by the Department for Digital, Culture, Media and Sport (DCMS). DCMS is regarded as a related party and during the year the BFI, as a Lottery distributor, had material transactions with DCMS.

Awards made under the National Lottery etc Act Section 27 dispensation

Using the power granted by the Section 27 of the National Lottery etc Act 1993 the Secretary of State did not object to an award of £3,263,000 to the BFI in relation to Heritage 2022, the BFI's archive strategy as outlined in the BFI 2022 strategic plan, for both the national and regional moving image archives. The award was made in March 2021, under BFI accounting policies this is recorded as a provision in 2020-21 and at 31 March 2021 the full award remained payable.

Similarly the Secretary of State did not object to an award to the BFI in relation to the London Film Festival. The award was both made and fully paid within the financial year but as a result of changes to the festival arising form the COVID-19 pandemic the award was reduced from £1,250,000 to £250,000 in line with the reduced scope of the activities and associated expenditure.

21. COVID-19 AND EVENTS AFTER THE REPORTING PERIOD

The impact across the year of the global COVID-19 pandemic and the resultant UK wide lockdowns was heavily felt across the film sector. In order to assist the recovery of the sector our lottery funded schemes were reviewed to enable us to assist the industry with the challanges it faces.These include the production fund making awards to assist with production continuity after the lockdown period, support of international sales agents as well as an award to the Film and TV Charity to assist those in immediate hardship as a result of the lockdown; similarly the Audience Fund helped establish the Audience Resilience Fund to support independent cinema venues across the UK. After an iniital dip in sales of National Lottery tickets and a consequent reduction in the funds available to the good causes, income recovered rapidly in the year. With a combination of reserves and new income this does not pose any immediate risk to the plans proposed in our five year plan BFI 2022.

The national lockdowns and restrictions continued into the 2021-2 financial year, before legal restrictions were removed in July 2021.

At the time of signing the accounts there were no other events after the reporting period, either adjusting or non-adjusting which require disclosure in the financial statements. The accounts were authorised for issue on the date the Comptroller and Auditor General signed the auditor's certificate and report.

175

Schedule 1: New Lottery commitments (unaudited information) in the year ended 31 March 2021

All awards and delegations approved by the Lottery Finance Committee in the year to 31 March 2021 are listed below. In the financial statements these are represented as Non film right awards on the Statement of Comprehensive Net Expenditure (£19.8m), £29.9 m were taken to the statement of financial position and subsequently impaired, with the remainder (£4.2m) disclosed within Other Financial Commitments in the notes to the accounts.

Producer Project £
011 Productions Ltd. Joy Unbound 25,000
65 Wilding Films Ltd Claude 28,250
65 Wilding Films Ltd Up Yours! 21,000
ACDT Productions Ltd Across The Water 2,000
AL Films Ltd Catch A Fire 14,750
Aml Ameen Productions Ltd. Boxing Day 22,000
Anti-Worlds Film & Television Ltd The Vet's Daughter 30,000
Apparent Films Ltd Glowed Up 11,250
Apropos Productions Ltd. The Land of Many Waters 10,000
Art Sex Music Film Limited Art Sex Music 23,500
Artemisia Films Ltd Chuck Chuck Baby - test filming 32,500
Banging the Drum Ltd Makign Noise (aka Evelyn) 6,250
Bêtes Sauvages Ltd. t/a Wild Beast Productions Sebastian 24,500
Big Rich Films Limited The Unravelling 17,900
Blonde to Black Pictures Ltd Cunning 30,400
Blue Horizon Productions (2010) Ltd With Love 8,000
Bosena Ltd Petrichor 5,500
Boxing Day Ltd Boxing Day 100,000
Bridge + Tunnel Productions Forough: A Lonely Woman 22,300
Bright Pictures Ltd Strikers in Saris 49,500
Candle & Bell Ltd Marwell 20,000
Cannon and Morley Productions Ltd Typist Artist Pirate King 1,250
Cowboy Films Pretty 28,000
Dandelion Films Ltd Repatriation 24,500
Dark Pictures Ltd The Halfway 24,600
DJ Films Ltd The Marina 41,600
DMC Film Ltd Young Skins 27,300
Dorothy St Pictures Ltd I Don't Eat Meat 31,000
Dream & Co Fictions @LOVE 1,000
Duck Soup Films Ltd Bed 15,500
Early Day Films Ltd Trumpet Voluntary 18,500
Elastic Film Entertainment Ltd My Year as Mia (FKA Boat Girl) 21,000
Elation Pictures Ltd Foxfinder 14,000
EMU Films Ltd Medusa Deluxe 176,000
EMU Films Ltd Benediction 116,989
Endor Productions Ltd Gun Dog 34,500
Enlightenment Productions Ltd Arranged 32,500
Erebus Pictures Limited The Warehouse 30,700
Erebus Pictures Limited Echolalic 36,000
Escape Plan Productions Ltd The Origin 100,000
Essential Cinema Ltd The Unlikely Pilgrimage of Harold Fry 41,000
Griffin Pictures Ltd. Starlings 35,550
High Tide Studio Ltd The Wall Dog 10,000
Hipster Films Gardening 10,000
Home Team Content Ltd When Courage Comes 31,375
Hot Property Films Limited Intermission 31,000
Hurricane Films Fell 21,750
Hwyl Films Ltd. Weight of the Wind 19,500
ie ie Productions Limited Madison 28,570
Indefinite Films Ltd Girl Next Door 3,961
Indie Movie Company Ltd Less Than Human 31,500
Jam Tomorrow Productions Limited Hyper Hyper 10,000
Jigsaw Films Limited Kensuke's Kingdom 140,000
KNOCK2BAG Ltd Brian & Charles 100,000
Light Industrial Development Corporation Ltd Ballywalter 40,000
Little By Little Films Limited Breaking Into Heaven (working title) 37,000
Little House Productions Lion and Panther 28,850
Lunapark Pictures Ltd Two Old Maids 24,500
Mantilini Films Limited Bronco Belle 50,155
Mirrorball Films Limited PROM! 35,200
My Accomplice Limited Surviving Earth 19,000
Narrativa Media Limited Princess Bari 24,250
Number 9 Films Ltd Mothering Sunday 221,913
Out of Orbit Limited Harvesting 20,000
Out of Orbit Limited The Wind and the Shadow 10,000
Peach House Ltd Lit 2,000
Pencil Trick Productions CIC I Want Love 23,500
Pinnacle Pictures Limited Flesh and the Mirror 4,000

176

Producer Project £
Poisson Rouge Pictures Limited Black Dust 22,100
Potboiler Productions Ltd At Hawthorn Time 43,000
Primitive Film Limited After London 33,300
Public Display of Affection Films Ltd Braids 17,000
Public Dreams Ltd Dislocate (working title) 27,500
Quiddity Films Ltd. Bone 15,500
Rabbit Track Pictures Ltd Tribal 29,100
RAINDOG FILMS LTD Bare 12,500
Rainy Day Films Limited I (Who have Nothing) 500
Raucous Pictures Ltd Beauty Queen FKA You Get Me? 12,500
Recurring Dreams Ltd Throwing Stones 30,250
Red Breast Productions Ltd English Animals 9,250
Red Rover Film Ltd Red Rover 8,550
Reel Soul Movies Ltd No Destination 10,500
Rollout Pictures Limited King Coo 750
Rollout Pictures Limited The Spy Who Fell To Earth 27,000
Sabina Smitham Ltd Phil & Iain 20,000
Salon Pictures Seaholme 22,500
Sharp House Ltd Untitled Rosemary Kay Project (previously Sundance) 13,750
Silver Salt Films Ltd Blind Ambition 21,000
Slingshot Productions Limited Londonstani 6,950
Snafu Pictures Ltd. The Gigantic Beard That Was Evil 10,000
Starchild Pictures Limited Indgo House Witch 19,500
Sums Film & Media Ltd Phone Book 16,000
Sums Film & Media Ltd Your Time Has Come 1,000
Sweetdoh Ltd Out There 16,500
Tea Shop Productions Ltd Cometh the Friend 12,000
The Other Gemini Pictures Ltd Amrit 14,250
The Other Producer Ltd Cascades Female Factory 29,000
Tigerlily Films Ltd Mr Uterus 20,500
Tigerlily Films Ltd Scattered 20,000
Tilt Films Limited Dunwich 31,900
Two & Two Pictures Kid Fu 33,000
Vibes Productions Limited Vibes and Stuff 100,000
Water & Power Productions Limited The Fantastic Flitcrofts 120,755
Wellington Films Sister Midnight 21,050
Wellington FIlms Limited Has This Been So Before 30,000
Wellington FIlms Limited A House In Jerusalem 17,500
Wild Swim Films Ltd Things We Never Said 38,384
Development and Pre-Production Awards 3,268,952
38 Minutes Ltd 38 Minutes 170,000.00
Afraid of the Dark Films Ltd The Power 41,500.00
After Love Production Limited After Love 18,000.00
Alcove Entertainment A Gaza Weekend 400,000.00
Amphibian Husbandry Ltd Shackle 73,000.00
Animate Projects Limited The Debutante 71,613.00
Anti-Worlds Earwig Ltd Earwig 850,000.00
Boxing Day Ltd Boxing Day 1,200,000.00
Boxing Day Productions Ltd Boxing Day 100,000.00
Brian & Charles Film Ltd Brian & Charles 140,524.00
Bridge Way Limited The Rumour Mill 10,000.00
Censor Productions Ltd Censor 36,800.00
DM Films Ltd Daemon Mind 64,837.00
Doc Society BFI Doc Society Production SOS Fund 259,425.00
Doc Society Documentary Fund Support Programme 2021-22 184,313.00
Doc Society Documentary Fund Delegation 2021-22 1,885,185.00
Empire Street Productions Ltd Ballywalter 860,860.00
EMU Films Ltd Benediction 345,000.00
Fade In Productions Ltd. Phea 85,326.00
Film and TV Charity COVID-19 Film and TV Emergency Relief Fund 500,000.00
First Take Video Ltd 1 in 200 48,500.00
Fruit Tree Media Ltd Ear for Eye 614,333.00
GIF Productions Ltd Red Shoes 77,756.00
Great Yarmouth Film Ltd Provisional Figures 150,000.00
Gritty Realism Productions Limited Inner Polar Bear 72,646.00
Issomour Films Ltd The Forgiven 150,000.00
Jigsaw Films Ltd Kensuke's Kingdom 1,620,000.00
Lilly Marvin CD Ltd Pretty Red Dresss 352,273.00
Loose Moose Productions Ltd No Ordinary Joe 120,000.00
Manoir Productions Ltd Chaplin 24,000.00
Martyr's Lane Ltd Martyrs Lane 65,000.00
Maurice Media Ltd The Fantastic Flitcrofts (fka Maurice: Phantom of the Open) 1,265,000.00
New Year Film Ltd Pirates 440,000.00
Number 9 Films Ltd Mothering Sunday 980,000.00
Number 9 Films Sunday Ltd Mothering Sunday 30,000.00

177

Producer Passion Pictures Animation Ltd Passion Pictures Ltd (trading as Strange Beast) Pearly Oyster Productions Ltd. Score Films Ltd Sulkybunny The Origin Movie Ltd Triangle of Sadness Ltd True Things Films Ltd Tyke Films Ltd UME15 Ltd Various Vibes Productions Ltd We are Anagram Ltd

Producer Project £
Passion Pictures Animation Ltd Martha 99,455.00
Passion Pictures Ltd (trading as Strange Beast) Your Mountain is Waiting 4,973.00
Pearly Oyster Productions Ltd. Beware of Trains 112,100.00
Score Films Ltd The Score 145,851.00
Sulkybunny Wild Summon 103,322.00
The Origin Movie Ltd The Origin 340,000.00
Triangle of Sadness Ltd Triangle of Sadness 430,000.00
True Things Films Ltd True Things About Me 272,902.00
Tyke Films Ltd Diseased & Disorderly 116,514.00
UME15 Ltd Medusa Deluxe 760,000.00
Various SFAF - Animation Consultant for Productions 16,000.00
Vibes Productions Ltd Vibes & Stuff 747,653.00
We are Anagram Ltd Goliath 120,000.00
Production Awards 16,574,661
Allison Davies Mandala Street 1,000
Amelia Clay Crewel 1,200
Andy Berriman Iron John 1,000
Animate Projects Ltd Treasure 15,000
Ash Kotak Jannu 1,000
Barrington Paul Robinson Newcastle / Hold Me 1,500
Ben Price 3 Minutes of Silence 900
Benjamin David Young Breathing Space 2,250
Beyond Productions Ltd True Colours 14,550
BFI NETWORK BFI NETWORK Weekender 35,000
Bigger Picture Productions Ltd Baked Beans 15,160
Blak Wave Productions Ltd Pickney 3,110
Boyandbear Film Ltd Services 8,350
British Independent Film Awards BIFA Best British Short Film Award 2020 18,500
Buglight Limited And Their Music Mingles in the Moonlight 12,135
Candle and Bell Limited There Are Lights 5,730
Carolina Petro Choirs of Blue 1,000
Cats Are Not Peas Ltd Bad News 2,678
Chasing the Sun Film Ltd Floating Pomegranate 13,134
Chi Thai Astronaut 1,500
Chloe Beale Woodland 15,000
Creative England iFeatures Transition Funding 240,000
Creative Scotland BFI Network Scotland 200,000
Creative Scotland BFI NETWORK Scotland - Short Circuit 200,000
Cupholder Films Ltd Pram Snatcher 12,400
Dan Shaw Brethren 2,045
Dana Bruce Tyoe 17,000
Dean Leon Anderson Jasper 1,500
Deivos Limited Egungun (Masquerade) 32,498
Delaval Film LTD Salvation Has No Name 7,000
Diara Diakhoumpa Glaciers 10,000
Dirtthefilm limited Dirt 4,900
Douglas Cox Mermaid X 1,250
Edward Cripps Pellagra 1,500
Eleonora Mignoli Legacy 1,000
Elevator Productions Limited Fist 12,270
EPIK PICTURES LIMITED Tommies 10,000
FAM FILMS PRODUCTIONS LTD Hats 16,400
Ffilm Cymru Wales CBC BFI NETWORK Wales 200,000
Fig Films Ltd Octopus 15,000
Film London BFI NETWORK England - London 150,000
Flumeri Films Limited one like him 15,000
Freya Films Ltd Treacle Town 4,905
Freya Films Ltd Brother Nature 15,487
Gorilla Films Ltd Murmur 10,200
Grasp The Nettle Films Ltd. Seagull 9,185
Grey Moth Ltd. Original Villain 3,150
Griffin Pictures Ltd. A Last Resort 6,150
Griffin Pictures Ltd. The Walk 15,981
Hawkwood Productions Ltd This Little Girl 15,000
Hellmouth Pictures ltd The Leerie 18,890
Hidden Pictures North Ltd A Snapshot 9,700
Hollie Bryan Pickles 8,270
Independent Cinema Office BFI NETWORK England - South East 105,000
Invite Limited Bald 11,000
Jack Benjamin Gill Beef/Rob The Joint 2,500
Jake Cunningham Blue Bottle 6,000
Joi Productions Limited Held 9,000
Jude Goldrei Tipping Point 2,500
Julai Stovell Deadeye 2,230

178

Producer

Project
Producer Project £
Kato Pictures Ltd Lord of the Free Range 15,000
Kenny McCracken The Simulation 2,240
Khona Productions Ltd Glaciers 3,740
Last Conker Ltd Re-Live 14,413
Let There Be Light Productions Limited Tasbeeh 3,000
Long Acre Arts Limited Prey 16,213
Long Acre Arts Limited White Crowe 15,425
Lucy Meer The Ceremony 3,440
Ludovico Zanette Left Over 4,340
Magnified Pictures Limited Incompatible 15,000
Mia Xerri X to X 4,310
Mim Shaikh My Father's Son 1,180
Miss R Wolff Seagull 1,750
Northern Ireland Screen BFI NETWORK Northern Ireland 150,000
Nottingham Media Centre Limited BFI NETWORK England - Midlands 150,000
Paisley Films Ltd Slow Machine 15,000
Paisley Films Ltd Good Night Henry 15,000
Pamela Drameh Reflections 13,628
PaperEpic Productions Canned Laughter 13,000
Paul Holbrook Hungry Joe 1,500
Philippa Wacera Herrmann Crossing Worlds 3,000
Phoebe Collings James Ltd Three Thirds (of A Story) 26,784
Precious HB Ltd Precious Hair & Beauty 7,500
Product One Theatre Co Ltd Reasons 4,864
Public Display of Accetion Films Ltd Coconut 13,550
Rebekah Fortune IVY 2,500
Rock Flower Films Limited Osprey 15,225
Rosie Westhoff The Moon, The Waves & The Money Tree 1,250
Sarah Palmer Salt Water Town 13,685
Sebastian Thiel To live and die in LA 1,750
Six O'Clock Ltd Canvas 5 9,057
Sketchbook Pictures Ltd. The Thing That Ate The Birds 385
SONA Films Ltd. Buffer Zone 17,370
St Maur Pictures Ltd. Odd One Out 8,684
Stella Vision Productions Ltd We're All Black Down Here 23,833
Straightjacketfilms Ltd Expiation 4,850
Sungazer Ltd Know The Grass 15,000
Tannahill Productions Ltd The Last Days 2,285
Tasha Williams Tow-Truck 15,146
The British Academy of Film and Television Arts BAFTA - BFI NETWORK@FLARE Mentorships 2021 9,400
The Grierson Trust Grierson Documentary Industry Support 2020/21 17,280
The Sheffield Media and Exhibition Centre Limited BFI NETWORK England - North 150,000
Theo W Scott Cuties. (Previously Cute Tapestry) 5,600
Tom Stubbs Alchemy 1,410
UP STREAM FILMS LIMITED Dog Years 2,320
Various Insight – Producer Programme 180,000
Various Insight New Producer Programme 30,000
Various NETWORK Shorts - COVID Production Consultant 5,000
Various NETWORK Shorts - COVID Supervisor training 5,000
Watershed Arts Trust Limited (The) BFI NETWORK England - South West 105,000
William Mager Signs 3,000
Wingarm Ltd Baba 23,351
X Industries Ltd About A Video 9,195
Talent Development 2,766,061
606 Distribution Ltd Perfect 10 15,450
Bohemia Club Limited Clenency 6,400
Bohemia Media Limited A Space in Time 35,000
Bulldog Film Distribution Limited Eternal Beauty 13,500
Dartmouth Films Limited One Man and his Shoes 53,453
Dogwoof Ltd MLK/FBI 40,000
Modern Films Entertainment Ltd. White Riot 31,000
Picturehouse Entertainment Limited Herself 30,000
Studiocanal Limited Supernova 60,000
Vertigo Releasing Ltd The Assistant 11,600
Vertigo Releasing Ltd Fanny Lye Deliver'd 10,750
Vertigo Releasing Ltd Saint Frances 10,750
Vertigo Releasing Ltd Sound Of Metal 60,000
We Are Parable Ltd Who We Are 169,592
Audience Fund: Distribution Awards 547,495
Chapter Arts Centre Covid 19 Recovery 36,444
Chapter Arts Centre Cross FAN Diversity & Inclusion 45,000
Chapter Arts Centre Film Hub Wales 210,000

Chapter Arts Centre Chapter Arts Centre Chapter Arts Centre

179

Producer Project £
Film London Film Hub London Covid-19 Recovery 83,386
Film London BFI Film Audience Network - Film Hub London 200,000
Film London Cross- FAN Young Audiences 45,000
Independent Cinema Office Covid 19 Recovery [Film Hub South East] 36,362
Independent Cinema Office Film Hub South East 350,000
Independent Cinema Office Cross FAN Data and Evaluation 60,000
Nottingham Media Centre Limited Film Hub Midlands 365,000
Nottingham Media Centre Limited Cross Fan Major programmes 2021 to 2022 280,000
Queen's University Belfast Film Hub NI 2021-2022 210,000
Queen's University Belfast Cross-FAN Non-Theatrical Exhibition 2021-22 10,000
The Glasgow Film Theatre Cross FAN: Member Support & Development 145,000
The Glasgow Film Theatre Film Hub Scotland 2021_22 225,000
The Sheffield Media and Exhibition Centre Limited Cross FAN Screen Heritage 21/22 Plan 150,000
The Sheffield Media and Exhibition Centre Ltd Film Hub North 2021-22 460,000
The Watershed Arts Trust Limited Covid 19 Recovery Film Hub South West 56,574
Watershed Arts Trust Limited (The) Film Hub South West 280,000
Watershed Arts Trust Limited (The) Marketing, Communication & Audiences (SW) 2021-22 105,000
Audiene Fund - Film Audience Network 3,352,766
Aesthetica Magazine Ltd Aesthetica Short Film Festival 35,000
Altitude Film Distribution Limited Altitude 21/22 Organisational Fund 488,776
Arts Alive In Shropshire And Herefordshire Flicks in the Sticks 2021-22 45,000
Berwick Film & Media Arts Festival Berwick Film & Media Arts Festival (2020 - 2021) 40,000
Birds Eye View Reclaim the Frame 2021-22 150,000
Borderlines Film Festival CIC Borderlines Film Festival 2021 40,000
British Independent Film Awards Back to the Cinemas 250,000
British Independent Film Awards This Is Our Cinema: Always-on marketing campaign 300,000
Carousel Project Oska Bright Film Festival 102,200
Chapter (Cardiff) Limited Chapter 2021-22 60,000
Coventry City Council VR/immersive film exhibition programme for UK City of Culture 30,000
Derby QUAD Limited QUAD 2021-22 60,000
Dogwoof Ltd Regional And Diverse Audience Development for Documentary Film 125,000
Elevenfiftyfive Ltd MASSIVE 239,031
Encounters Festivals Ltd. Encounters 2021 90,000
Film London Young Audiences Generation Scheme 61,600
FilmBath LTD Amplify 20,000
Flatpack Projects Flatpack Projects 2021-22 90,000
Greater Manchester Arts Centre Limited HOME 2021-22 185,000
Hampshire County Council Wessex Film and Sound Archive 2021-22 10,000
Independent Cinema Office Strategic activities to support independent exhibitors 578,016
International Documentary Festival Sheffield Sheffield Doc/Fest 2021 210,000
Kino Klassika Foundation Klassiki 35,700
Leeds City Council Leeds Film 2021-22 130,000
Leicester Arts Centre Ltd (t/a Phoenix) Phoenix 2021/22 100,000
London Indian Film Festival Ltd London Indian Film Festival 97,000
London Short Film Festival Ltd London Short Film Festival 2021 42,125
Manchester Animation Festival Ltd. Manchester Animation Festival 2020 30,000
Manchester Metropolitan University North West Film Archive Organisational Award 2021-22 15,000
Media Archive of Central England Limited Media Archive of Central England Organisational Award 2021-22 85,000
Nottingham Media Centre Limited Broadway 2021-22 Organisational award funding 150,000
Peccadillo Pictures Limited Peccadillo 2021-22 113,500
Plymouth Arts Centre Towards a new film culture in Plymouth 35,000
Plymouth City Council the Box organisational award 2021-22 55,000
Queen's University Belfast Queen's Film Theatre - 2021-2022 60,000
Slapstick Festival Ltd Slapstick Festival 2021 36,000
TEARDUSK LIMITED Bounce Cinema 157,500
The British Federation of Film Societies Cinema For All – Building film communities across the UK 159,992
The Festivals Company Ltd Iris Prize LGBT+ Film Festival 2020 & Iris on the Move 40,000
The Glasgow Film Theatre Glasgow Film Festival 2022 115,000
The Royal African Society Film Africa 2020 30,000
The Sheffield Media and Exhibition Centre Limited Showroom 2021-22 150,000
Tongues On Fire Limited UK Asian Film Festival 2021 40,000
Tyneside Cinema Tyneside Cinema 2021-22 147,000
UK Jewish Film Ltd UK Jewish Film Festival 2020 50,000
University of Brighton Screen Archive South East Organisational Award 2021-22 25,000
University of East Anglia East Anglia Film Archive 2021-22 15,000
Watershed Arts Trust Limited (The) Reimagining Film Exhibition 195,000
Windrush Caribbean Film Festival CIC Windrush Caribbean Film Festival 32,000
Yorkshire Film Archive Organisational award 2021-22 102,100
YourLocalCinema Ltd YourLocalCinema Audience Development 40,000
Zebra Access CIO Deaffest Tour 2021 31,140

Audiene Fund - Other Awards 5,523,680

180

Producer Project £
Bulldozer Films Ltd BFI Film Academy Network 34,000
Cinemagic BFI Film Academy Network 17,000
CTVC Limited Film Academy Specialist Course – Screenwriting 60,000
Glasgow Media Access Centre Limited BFI Film Academy Network 17,000
National Film & Television School Film Academy Specialist Course 233,000
Screen Argyll BFI Film Academy Network 17,000
Screen Education Edinburgh BFI Film Academy Network 17,000
Station House Media Unit BFI Film Academy Network 17,000
TAPE Community Music and Film BFI Film Academy Network 17,000
The Nerve Centre BFI Film Academy Network 51,255
Film Academies 480,255
The British Film Institute Heritage 2022 3,263,000
Heritage 2022 Fund 3,263,000
Barking Lion Productions (UK) Limited Trapper Keeper 123,340
E&E Industries (UK) Ltd Andor 46,700
PLT Productions (UK) Ltd PLT 229,920
Film Skills: Apprenticeships 399,960
Ardimages UK Ltd BFI Vision Awards 2020-2022 100,000
Bêtes Sauvages Ltd. BFI Vision Awards 2020-2022 100,000
Bird Flight Films Limited BFI Vision Awards 2020-2022 100,000
Causeway Pictures Limited BFI Vision Awards 2020-2022 100,000
Early Day Films Limited BFI Vision Awards 2020-2022 100,000
Erebus Pictures Ltd BFI Vision Awards 2020-2022 100,000
Escape Plan Productions Limited BFI Vision Awards 2020-2022 100,000
Fruit Tree Media Limited BFI Vision Awards 2020-2022 100,000
Griffin Pictures Ltd. BFI Vision Awards 2020-2022 100,000
Hot Knife Limited BFI Vision Awards 2020-2022 100,000
Joi Productions Ltd BFI Vision Awards 2020-2022 100,000
Little By Little Films Ltd BFI Vision Awards 2020-2022 100,000
Lunapark Pictures Limited BFI Vision Awards 2020-2022 100,000
Other Productions Ltd BFI Vision Awards 2020-2022 100,000
Pencil Trick Productions CIC BFI Vision Awards 2020-2022 100,000
Rocliffe Limited BFI Vision Awards 2020-2022 100,000
Sarah Brocklehurst Productions Ltd BFI Vision Awards 2020-2022 100,000
Severn Screen Ltd BFI Vision Awards 2020-2022 100,000
The Sixty Six Picture Club Ltd. BFI Vision Awards 2020-2022 100,000
Tyke Films Ltd BFI Vision Awards 2020-2022 100,000
Vision Awards 2,000,000
Creative Industries Federation Ltd Connected isolation (CIF research) 1,500
Hatch Associates Limited Animation Mapping Stage Two 45,000
Informa Telecoms & Media Limited RSU Data and Services Purchase Tranche 3 30,080
Olsberg SPI Ltd Screen Business 2020 109,125
Populus Limited Audience sentiment research additional funds 38,350
Rentrak Limited RSU Data and Services Purchase Tranche 4 159,753
The UK Interactive Entertainment Association UK Games Map Development 70,000
Various RSU Data and Services Purchase Tranche 1 70,000
Various RSU Data and Services Purchase Tranche 5 26,920
Yonder Consulting Limited Audience sentiment research waves 2 & 3 42,400
YouGov PLC RSU data and services purchase Tranche 2 47,120
Research and Statistics Fund 640,248
Creative England Ltd Creative Enterprise Programme 1,540,000
Creative Enterprise Fund 1,540,000
Creative England Ltd Creative England - Production Services. 550,000
Production Services Fund 550,000
Alliance Media Partners International Ltd BFI COVID-19 UK Sales Company Organisational Support Fund 24,000
Bankside Filns Ltd BFI COVID-19 UK Sales Company Organisational Support Fund 16,500
Bankside Filns Ltd Here Before 4,060
Bankside Filns Ltd The Feast 3,510
Bridging Visions e.V. Bridging the Dragon UK-Focus Activity 2020-2021 15,000
Carnaby International Sales & Distribution PLC BFI COVID-19 UK Sales Company Organisational Support Fund 14,000
Celsius Entertainment Ltd BFI COVID-19 UK Sales Company Organisational Support Fund 20,000
Cornerstone Films Ltd BFI COVID-19 UK Sales Company Organisational Support Fund 25,000
Digital Catapult CreativeXR's showcase and market 25,000

181

Producer

Project

Producer
Project
Dogwoof Ltd
BFI COVID-19 UK Sales Company Organisational Support Fund
Embankment Films Ltd
BFI COVID-19 UK Sales Company Organisational Support Fund
Evolutionary Films Ltd
BFI COVID-19 UK Sales Company Organisational Support Fund
Film Constellation Ltd
BFI COVID-19 UK Sales Company Organisational Support Fund
Film Constellation Ltd
Wildfire
Film Export UK Limited
Toronto International Film Festival 2020
Film London
The Production Finance Market
Film London
British Film Commission 2021-22 (Lottery)
Film Republic Sales Ltd
BFI COVID-19 UK Sales Company Organisational Support Fund
FILM SEEKERS LIMITED
BFI COVID-19 UK Sales Company Organisational Support Fund
GFM Films LLP
BFI COVID-19 UK Sales Company Organisational Support Fund
Goalpost Film
BFI COVID-19 UK Sales Company Organisational Support Fund
International Documentary Festival Sheffield
Sheffield Doc/Fest Marketplace and Talent Programme 2021
Kaleidoscope Film Distribution Ltd
BFI COVID-19 UK Sales Company Organisational Support Fund
Legacy Rights Ltd
BFI COVID-19 UK Sales Company Organisational Support Fund
Magnolia PicturesInternational
Listen
Met Film Sales Ltd
BFI COVID-19 UK Sales Company Organisational Support Fund
Met Film Sales Ltd
Misha and the Wolves
Metro International Entertainment Ltd
BFI COVID-19 UK Sales Company Organisational Support Fund
MFH London Limited
BFI COVID-19 UK Sales Company Organisational Support Fund
Mister Smith Entertainment Limited
BFI COVID-19 UK Sales Company Organisational Support Fund
Parkland Pictures Ltd
BFI COVID-19 UK Sales Company Organisational Support Fund
Poly Doc Films
Poly Styrene: I Am A Cliché
Protagonist Pictures Ltd
BFI COVID-19 UK Sales Company Organisational Support Fund
Reason8 Films Ltd
BFI COVID-19 UK Sales Company Organisational Support Fund
Rocket Science Industries Lfd
BFI COVID-19 UK Sales Company Organisational Support Fund
SC Films International Limited
BFI COVID-19 UK Sales Company Organisational Support Fund
Screenbound International Pictures Ltd
BFI COVID-19 UK Sales Company Organisational Support Fund
Various
UK Attendance International Training & Networking Programmes
Various
UK Group Attendance at MIA Market Rome 2020
Various
Intl Co-pron Market & Networking at CPH:DOX Market 2021
Westend Films Limited
BFI COVID-19 UK Sales Company Organisational Support Fund
International Fund Ltd
British Film Institute
64th BFI LONDON FILM FESTIVAL
London Film Festival
104 projects CIC
Film Club
Aunty Social CIC
Film Club
Chapter (Cardiff) Ltd
Venue Education Fund
Creative Media Skills Group Limited
Film Club
Creative Media Skills LTD
Film Club
Creative Nation Ltd
Film Club
Creative Nation Ltd
BFI Film Academy Network
Ffilm Cymru Wales CBC
Ffilm Cymru Wales - Film Education
Film Nation UK
Into Film Delivery Plan
Flipvanmoon Ltd
Film Club
Independent Cinema Office
Venue Education Fund
National Film & Television School
Early Stage Access and Diversity Accelerator Programme
Nottingham Media Centre Ltd
Venue Education Fund
Reel Solutions (film) LLP
Film Club
ScreenSkills Ltd
Film Skills Strategy
Sheffield Media & Exhibition Centre Ltd
Film Club
'Signals' Essex Media Centre Ltd.
Film Club
Somerset Film and Video Ltd
Film Club
The Glasgow Film Theatre
Venue Education Fund
The Nerve Centre
Venue Education Fund
The Nerve Centre
Venue Education Fund
The Saturday Club Trust
Film Club
The Sheffield Media and Exhibition Centre Limited
FHN VEF
The Sheffield Media and Exhibition Centre Ltd
Venue Education Fund
The Watershed Arts Trust Ltd
Venue Education Fund
Education Fund		 £
16,440
25,000
15,464
25,000
5,553
26,000
16,000
575,000
10,000
20,000
15,000
7,500
50,000
20,000
15,000
5,150
15,999
7,776
25,000
10,000
25,000
15,000
2,348
20,000
20,000
25,000
20,000
10,000
27,750
8,250
4,170
25,000
1,255,470
1,250,000
1,250,000
8,375
6,500
55,000
68,000
34,000
8,500
3,400
120,000
4,767,500
8,425
53,777
770,000
55,000
17,000
4,190,044
17,000
8,500
8,408
52,000
3,000
55,000
40,000
3,000
55,000
55,000
10,462,429
53,874,977

182

Schedule 2: New Lottery commitments made by delegate bodies (unaudited information) in the year ended 31 March 2021

The Documentary Society were delegated £1.7m of new lottery funds for activity in 2020-21 Creative Scotland and Ffilm Cymru Wales £0.2m each, and Northern Ireland Screen Commission £0.15m. The awards made to third party organisations by these delegate bodies in the year ending 31

Award Recipient
Project
The Documentary Society
Alleycats Features
The Lost Boys
Apropos Productions Ltd
Pemon
AVBR Climate (2020) Ltd - GBP
A Very British Revolution
Ayiti Limited
Karnival: Haiti
Beyond the Emergency Film Ltd
XR: This is an Emergency
Bofa Productions Ltd
The Story of Looking
Bungalow Town
SUWO
Cosmosquare Films Limited
Hanging On
CY Film Productions Ltd
The Great Schools Robbery
Derryboye Films Limited
Hello Stranger
Doc Hearts
White Nanny, Black Kids
Dorothy Street Pictures
If the Streets were on Fire
Empress Films
The Black Cop
Faction Films Ltd
Off the Rails
Fifty Foot Women Limited
At The Scala
Film Finisher Ltd
Maisie
Funeral Documentary Ltd
The Business of Death
Gallivant Film
Robin
Gif Productions Ltd
Somalinimo
Horsefilm Limited
Horsemen
Hot Property Peru Limited
The Gold Machine
Isla Badenoch/Joe Binks
The Elvermen
Lono Moon Limited
Red Moon
Lono Studio Ltd
Child of Polycritus
Lono Studio Ltd
The Sea Behind Her Head
Misha's Story Ltd
Misha's Story
Missing In Action Films Ltd
Rage in Many Languages
Missing In Action Films Ltd
Red Herring
My Extinction LTD
My Extinction
Nascondino Ltd
Hide & Seek
Nature Hunter Film Limited
Nature Hunter
No SPV yet
Name Me Lawand
No SPV yet
Neurotribes
Northern Filmworks Ltd
All Points North
Northern Heart Films Ltd
Finding Appiness
Northern Heart Films Ltd
Grenfell: Phoenix from the Ashes
Panoptical Limited
BlackBoy Joy/Gone
Panoptical Limited
Ceasefire Baby
Poly Doc Films Ltd
Poly Styrene: I am a Cliche
Primitive Film LTD
Mirror with a Memory
Project Dastaan
Project Dastaan: Child of Empire
Rolling Marble Ltd
Locked In
Rubix Films Ltd
Conspiracy
Satellite Films
Stoke Film
Sava Films Ltd
Sava
Sava Films Ltd
Say Their Names
Sava Films Ltd
Shadow Scholars
She Makes Productions
Skyward
Small Car Big Road Ltd
Your Fat Friend
Solaris2 Media Ltd
8 Minutes, 46 Seconds
Spring Productions Ltd
One More Question
STEPHEN FILM Ltd
Stephen
Tigerlily Two Ltd
We Wear Masks
Tyke Films
Yorkshire Ballers
Until the Tide Ltd
Until the Tide Creeps In
Until the Tide Ltd
Untitled Hydebank
Yanantin World Ltd
Yanantin
Total Doc Society delegated awards 2020-21
Ffilm Cymru Wales
130 Elektra Films Ltd
The Poor Sisters of Clara
73 Degree Films Limited
Robert Corcoran CPD
Alex Mathias
Sleeping Giant
Alexandria Riley
Alexandria Riley CPD
Bethan Marlow
Queer as Folk Dancing
Broadside Films Ltd
Jackdaw (previously Duck)
Bryn Chainey
The Rabbit Trap
Bulldozer Films Ltd
Cardiff Mini Film Festival Networking Parties
Calling The Shots Films Limited
Little Fox
Carys Lewis
Blue Mother
Casi Wyn
Beetroot Hot Chocolate
Charlotte James
Barry Island Will Do
Charlotte James
Light Before Sunrise (previously Barry Island Will Do)
Christopher Buxton
Christopher Buxton CPD		 £
15,000
16,800
15,000
100,000
70,000
15,000
15,000
17,000
9,167
14,000
5,000
12,000
16,600
14,188
50,000
40,415
13,549
7,500
300
25,000
12,000
2,000
22,000
16,675
12,835
15,000
3,500
50,000
75,000
30,000
79,000
80,000
50,000
30,000
16,100
80,000
16,000
50,000
60,000
18,700
15,150
20,000
15,000
1,750
6,050
75,000
70,000
18,100
90,000
16,350
15,000
11,750
90,000
3,330
20,570
45,000
14,285
1,717,664
10,000
5,750
6,845
4,000
10,000
466
2,700
6,000
2,000
5,000
1,000
1,000
21,000
3,869

183

Award Recipient
Project
FireParty Limited
Fireparty lab
Hand-Drawn Pictures Ltd
Night Gardener
ie ie Productions Limited
Forest Coal Pit
Isla Ure
Isla Ure CPD
Joanna Wright
Joanna Wright CPD
Laura Tofarides
Ymenydd
Leyla Pope
Out of Breath
Little Door Productions Ltd
The Hard Road
Mac Nixon
Jackdaw (previously Duck)
Meredydd Barker
Mye & Jennie
Nia Alavezos
Ymenydd
Pauline Williams
Don't Steal my Voice
Penbryn Films Limited
India's 1st Best Trans Model Agency
Pet Ghost Studio LtdRiannon Evans
Cuckooland (previously Clockwork)
Regan Developments Ltd
Leigh-Ann Regan CPD
Rhys Marc Jones
Dead Sheeps Wool
Rondo Media Limited
Organic
Samantha O'Rourke
Ladies of Llangollen
Shwan Nosratpour
Rise of The Hoof
Strike Pictures Ltd
Nant (previously Men I Trust)
The Edinburgh International Film Festival Ltd
EIFF Celtic Screen Showcase
Untamed Stories Limited
Writers Lab UK & Ireland
Wheesht Films Limited
One Stop Doc Shop
Total Ffilm Cmyru Wales delegated awards 2020-21
Northern Ireland Screen Commission
Below the Radar Ltd
If Lions Could Talk
Cathy Brennan Bradley
After
Causeway Pictures Ltd
Copy That
Éanna Mac Cana
Yellowstone
Edel McCormick
Legal Walls
Erica Starling Productions Ltd
The Last Matchmaker in Ireland
Farset Films
Feed
Fine Point Films Ltd
Stanley
Hannah Sullivan
Get Down and Derby
In Awesome Wonder
You Left Your Phone
Italic Pig
Colour
Josh Lynas
Frankie
Kerry Rooney
The Park Bench
Laura Conlon
An Siulach
Niamh McDonagh
P + M
Nightstaff Ltd
The Short Wave Listener
Out of Orbit Ltd
The Performance
Out of Orbit Ltd
Homebird
Poli Productions
Defrost
Poli Productions
Kettle
PRODIGAL FILMS LIMITED
Runners
Relapse Pictures
My Name is Joseph
Ross White
An Irish Goodbye
Sarah Gordon
Rat
Savant Garde Films
Gravet Hit
Spinning Path Ltd
Portaloo
Super Lemon Productions Ltd
Psychic Spoons
Taunt Studios
Soul Office
Tori Clarkson
Puca
Will McConnel
You Are Here
Total Northern Ireland Screen Commission delegated awards 2020-21
Creative Scotland
Bombito Productions
A Good Spell
BP Films
A Birthday Party
Charlotte Scott-Wilson
Crescendo
Digicult LTD
Go Home
Finite Productions Ltd
A90
Lothian Films
Groom
LS Shorts
Folding
MF Bahar Ltd
Bahar
Sarah Grant
Scare
Too Rough Films Ltd
Too Rough
White Stag Films
Mobius Trip
White Stag Films
Funeral Home
Creative Scotland delegated awards 2020-21
Total awards by delegate bodies 2020-21		 £
3,000
10,000
19,000
2,655
5,400
1,000
1,000
8,000
21,000
9,980
22,000
1,000
10,000
15,000
6,000
10,000
22,000
5,000
10,000
24,100
2,000
10,000
3,000
300,765
3,033
1,125
10,000
1,125
1,125
3,750
3,750
3,750
1,125
20,000
20,000
1,125
1,125
1,125
1,125
3,750
3,750
3,750
10,000
3,750
3,750
3,750
1,125
1,125
3,750
1,240
3,750
20,000
1,125
1,125
139,023
5,000
20,000
5,000
20,800
23,825
20,000
20,000
23,050
5,000
20,000
20,000
3,294
185,969
2,343,421

184

STATUTORY BACKGROUND

directions

Financial directions

Under the National Lottery etc. Act 1993, the Secretary of State issued financial directions to the British Film Institute (the BFI). These are as follows:

The BFI shall comply with the requirements contained within the Statement of Financial Requirements, which have the status of directions under section 26 of the National Lottery Act

The BFI has implemented procedures to ensure the provisions of the Statement of Financial Requirements are followed and the BFI confirms that, to the best of its knowledge, it complied fully with the financial requirements in 2020-21.

The BFI shall devise and abide by a procedure for handling potential conflicts of interest which may arise in the evaluation of applications by BFI or individual members of the BFI. This procedure together with a statement confirming the arrangements that have been applied, should be provided to the Secretary of state for Culture, Media and Sport before the distribution of any funds under section 25 of the Act, and thereafter at the beginning of each financial year.

The BFI has in place procedures for dealing with conflicts of interest and, to the best of its knowledge, it abided by this procedure in 2020-21.

Policy directions

Under the National Lottery etc. Act 1993, the Secretary of State for Culture, Media and Sport issued policy directions, which the BFI must take into account in distributing National Lottery funds.

A) The need to involve the public and local communities where reasonably practicable, in making policies and setting priorities.

The BFI consulted widely on its five year strategy which commenced on 1 April 2017 by way of a wide-scale public consultation undertaken in 2016.

During 2020-21, the BFI, and its partners, undertook a limited programme due to COVID - of research, monitoring and evaluation acti programmes.

The results of this work are considered, and where appropriate, adjustments to priorities.

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In addition, along with stakeholders the BFI considers relevant national and regional data, and trends in the sector to ensure that programmes remain appropriate.

B) The need to increase access and participation for those sections of society who do not currently benefit from opportunities available in the United Kingdom.

The BFI aims to ensure that equality and diversity are central to all activities thus allowing sections of society to have access to or benefit from funding, taking into account differences in values, attitudes, cultural perspectives, beliefs, ethnic background, able or disabled, skills, knowledge, geography, age and life experiences.

In 2020as part of the BFI2022 Strategy delivery.

C) The need to inspire children and young people, awakening their interest and involvement in the activities covered by the good cause.

The BFI is fully committed to education and learning and strongly believes that film has the power to transform the way people see and understand the world and as such has committed a significant investment into the delivery of Lottery programmes for young people. The 16-30 age group is identified as a key priority within the BFI2022 five-year strategy and is now an assessment criterion for relevant funding programmes.

Notably the BFI 5-19 education scheme, which is managed by Into Film, was managing approximately 3.5 million young people. Due to the pandemic, activity moved online with greater emphasis on young people and families at home.

In addition, the BFI Film Academy, with additional funding from the Department for Education, enabled approximately 1,000 young people, from all round the UK and from any background, aged 16-19-year-olds the first step to being part of the future film industry.

In addition the BFI manages a number of other programmes, notably the Venue Education Programme and the Film Audience Network, also focused on 16 30 year olds.

D) The need to improve community cohesion and/or social inclusion.

The BFI ensures that the benefits of Lottery funding are spread widely, in both geographical and social terms. Creativity and diversity in the film sector is enriched by encouraging the participation of people from a wide range of communities.

from all backgrounds across the UK, including those from different socioeconomic groups.

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The BFI works to bring film and the moving image to the widest possible range of communities across the UK through the Film Audience Network. Comprising a network each nation and region of the UK, the network funds projects including community and neighbourhood cinemas as well as local film festivals celebrating all aspects of identity.

E) The need to encourage new talent, innovation, and excellence and help people to develop new skills.

The BFI provides opportunities for filmmaking talent to flourish. The freshness and relevance of the films produced have been recognised by the international film industry awards they have won. As well as direct support for filmmaking, the BFI invests in training talent, notably the BFI Film Academy, and in partnership with ScreenSkills, the Sector Skills Council for the audio-visual industry, a revised and refreshed funding programme was delivered during the year for training and skills.

In addition, the UK Talent Network Net.work supported NETWORK film projects, from across the UK.

F) The need to ensure that money is distributed for projects which promote public value and which are not intended primarily for private gain.

It has always been a primary intention of the National Lottery that it should improve the quality of life for people throughout the UK.

All applicants, including private, voluntary or commercial organisations, have to be able to demonstrate the benefit to the public that would result from their proposed project. The BFI applies a range of criteria in order to ascertain that an appropriate level of public benefit is derived from the project. The criteria include the creative and technical quality

G) The need to further the objectives of sustainable development.

The BFI provides leadership and practical support for the wider film industry, including leading the UK-wide sustainability Group. Following the launch of the British Standard (BS 8909), specifically for film, sustainability is an intrinsic element to the new five year plan.

Technological development is supported through encouraging the use of digital production techniques and associated processes.

On location filming of any Lottery-funded films, producers are expected to be sensitive to the needs of the environment and the use of natural resources, returning locations back to their original state in environmental terms, after use.

As of autumn 2021, achieving full albert certification is now required of all awardees of the BFI Production Fund. All productions funded by the Completion Fund, and short films

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funded by the BFI NETWORK short film fund in England, and our delegate partners in Northern Ireland, Scotland and Wales, are required to complete a carbon footprint using albert’s carbon calculator.

The BFI works with other Lottery Distributors and the Department for Culture, Media and Sport in developing proposals for sustainable development.

Following on from the publication in 2019 of the report GREEN MATTERS - an overview of current practices of environmental sustainability and film production continued and in September 2020 the report Screen New Deal was published; a sustainability report proposing a step-change for UK film production, setting out a route map to help film production transition to net zero emissions by 2050.

H) The importance of ensuring equality of opportunity and the desirability of reducing economic and social deprivation and of ensuring that all areas of the United Kingdom have access to the money distributed.

All parts of the country have access to BFI Lottery funding through applications for training, development, production, education, distribution, exhibition and film heritage activity.

I) The desirability of the British Film Institute working jointly with other organisations, including other distributors.

The BFI undertakes partnership working with all the other Lottery distributors, most notably with Arts Council England, National Heritage Lottery Fund and NESTA.

The BFI delegates funding to the Doc Society in relation to documentary filmmaking.

In addition, the BFI works with a number of key partners notably, Creative England in support of its strategic objectives that can be delivered at a local and/or regional level; ScreenSkills; the National Screen agencies of Wales Ffilm Cymru Wales; Northern Ireland Northern Ireland Screen; and, Scotland Creative Scotland; and with partners in the English regions, notably the Film Hub Lead organisations (Film Audience network programme).

J) The need to ensure that all those receiving Lottery money acknowledge it using the common Lottery branding.

The BFI ensures that the Lottery is credited on all projects in receipt of Lottery funding through the use of the credits on films and branding on other materials.

K) The need to require an element of partnership funding, or contributions in kind from other sources, to the extent that this is reasonable to achieve for different kinds of applicants in particular areas.

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The BFI requires all applications to include an element of partnership funding, to demonstrate commitment to the project. The level of partnership funding required depends on each fund and the activity being supported.

L) The need (a) for money distributed to be distributed to projects only where they are for a specific, time-limited, purpose, (b) to ensure that the BFI has the necessary information and expert advice to make decisions on each application and (c) for applicants to demonstrate the financial viability of projects.

Funding is either provided on a specifically time limited basis or will only benefit individuals while they remain within the definition of a particular programme.

The BFI undertakes an appraisal of each application for funding prior to final decision. In 2020-21, to supplement its established counter-fraud approaches, the BFI introduced additional counter-fraud checks for all awarded/successful Lottery applications, including the introduction of the Cabinet Office due diligence tool Spotlight.

The BFI reserves the right to request that applicants provide any additional information that may be required in order to properly assess such application, in addition to the requirements set out in the application guidelines. It also seeks, where necessary, the confidential, independent and objective views of expert advisers. As a publicly accountable body, the BFI has a duty to ensure that National Lottery funds are properly spent and accounted for, that risk is minimised, and that fraud is avoided.

M) Where setting up costs are sought, the need for a clear business plan showing how any running and maintenance costs will be met for a reasonable period.

Financial viability is a key factor in the assessment of BFI Lottery applications and is examined using appropriate criteria for all funded applications in the context of assessing the potential risk of each Lottery award. Each potential recipient of Lottery funding has to demonstrate that its finances are secure and, in respect of larger projects, sufficient to ensure project exploitation after the funding period.

N) The need to ensure that film is central to the lives of UK citizens, and to improve the quality of British film and raise its profile in the marketplace, by:

The allocation of National Lottery funds by the BFI is influenced by the need to strengthen British films; and to support the distribution of specialised film in the analogue and digital environments, helping to ensure UK audiences have access to film in all its variety.

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O) Where awards are made in relation to feature film production or distribution projects the BFI should take into account:

All relevant projects in receipt of this type of funding are required, contractually, to comply with these conditions.

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ISBN 978-1-5286-3113-6 E02703243