THE CRAFT CENTRE & DESIGN GALLERY LIMITED
FINANCIAL ACCOUNTS
FOR THE YEAR ENDED 31 MARCH 2021
Victoria Bradshaw, FCCA Treasurer to the Board of Management
Company Registration Number: 1685289 Charity Registration Number: 513457
THE CRAFT CENTRE & DESIGN GALLERY LIMITED
(Company Limited by Guarantee with Charitable Status)
| CONTENTS | PAGE |
|---|---|
| Company Information | 3 |
| Board of Management Report | 4 - 12 |
| Independent Examiner’s Report | 13 |
| Statement of Financial Activities | 14 |
| Balance Sheet | 15 |
| Notes to the Accounts | 16 - 25 |
Page 2
THE CRAFT CENTRE & DESIGN GALLERY LIMITED
(Company Limited by Guarantee with Charitable Status)
COMPANY INFORMATION
The board of management is pleased to present their 38th Annual Report together with the Financial Statements for the year ended 31 March 2021.
The financial statements comply with current statutory requirements, the memorandum and articles of association and the Charities SORP (Statement of Recommended Practice) FRS 102 “Accounting and Reporting by Charities” effective January 2015.
Reference and Administrative Information
Charity name: The Craft Centre and Design Gallery Limited Charity registration number: 513457 Company registration number: 1685289 Registered office and Operational address: The Craft Centre and Design Gallery City Art Gallery The Headrow Leeds LS1 3AB
Board of Management
The charitable company (“the charity”) had a board of 5 management members as at 31 March 2021. There were 5 trustees serving during the year and since the year-end there are 4:
Honorary Alderman Bernard P Atha, CBE (Deputy Chair) Councillor Judith Elliot Lucinda Yeadon (Chairperson) Councillor Kayleigh Brooks The late Honorary Alderman Roderic Wood sadly passed away on the 13[th] April 2021
Ex-Officio Member of the Board of Management
Linda Ribeiro
Secretary
Corporate Governance Services, Leeds City Council
Artistic Director
Mrs H Hudson, (Miss F Hoy May 2021 onwards) The Craft Centre & Design Gallery Limited.
Independent Examiners
Leeds City Council
Bankers
Yorkshire Bank plc. 94 Albion Street, Leeds, LS1 6AG
Shares
The charitable company has no share capital
Page 3
THE CRAFT CENTRE & DESIGN GALLERY LIMITED
(Company Limited by Guarantee with Charitable Status)
BOARD OF MANAGEMENT REPORT
STRUCTURE, GOVERNANCE AND MANAGEMENT
Governing Document
The Craft Centre and Design Gallery is a company limited by guarantee and a registered charity governed by Charity Law and the Charity Commission and its Memorandum and Articles of association dated 15 October 1982. It was established by the Leeds Arts Collection Fund with the support of the Council, the Memorandum of Association being signed by Councillor E Nash and Robert Rowe, Director of Art Galleries. The object of the charity is “to support the public educational purposes of the Leeds City Council Art Galleries by the understanding, appreciation and commission of good design”. In the event of the winding up of the charity each member of the Board of Management has guaranteed to contribute £1.
Appointment of the Board of Management
The directors of the company are also charity trustees for the purposes of charity law and under the company’s Articles are known as members of the Board of Management. The Members appoint the Board of Management, the chair of the board and other officers.
None of the trustees receives remuneration or other benefit from their work with the charity.
Trustee Induction and Training
New trustees are sent information regarding the charity, including a copy of the statement of accounts and a copy of the Charity Commission’s guide on “How to be an effective Trustee”. They meet the chairperson who introduces them to the charity.
In addition, new trustees will be encouraged to visit the Craft Centre & Design Gallery to see how its charitable objectives are achieved.
Risk Management
The main risk the charity faces would be a sudden and sustained decline in income from agency commission sales. The reserves policy takes account of this risk.
Organisational Structure & Day to Day Operations
The Board of Management of the charity is responsible for the strategic direction and policy of the charity.
The manager has the responsibility for the day to day operational management of the charity, individual supervision of the staff and also ensuring that the staff continue to develop their skills and methods of working in line with good practice. These areas of operations are also covered by the assistant manager.
Other staff have the responsibility for maximising the number of visitors to the Craft Centre by ensuring that the Craft Centre’s website is up to date and also by promoting the exhibitions through social media and several websites.
Page 4
THE CRAFT CENTRE & DESIGN GALLERY LIMITED
(Company Limited by Guarantee with Charitable Status)
BOARD OF MANAGEMENT REPORT
OUR AIMS AND OBJECTIVES
Objects of the Charity
The objects of the charity are to stimulate the appreciation of, demand for and production of well-designed objects by commissioning, exhibiting and making available for sale such art and craft objects.
These aims and objectives are achieved by:
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exhibiting a broad range of high quality art and craft objects for the enjoyment, education and inspiration of our city
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providing much needed facilities for craft artists and designers to display and develop their creative powers
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encouraging a diverse range of audience attendance at our exhibitions
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enabling the ownership of original and high quality art and craft objects
The vision that shapes our aims and objectives remains clear: to add to the quality of life of the citizens of our city by expanding their horizons through the provision of exciting, challenging and accessible art and craft works.
Public Benefit
The Craft Centre and Design Gallery provides a unique artistic resource within the Leeds metropolitan area and our critically acclaimed exhibitions have earned a national reputation for exhibiting some of the most interesting and diverse examples of contemporary craft art and design.
Over the years, the gallery has exhibited and promoted the works of hundreds of designers, from the well renowned, to graduates just starting out. Their work has ranged from the traditional in technique, to items that are extremely innovative and even daring.
Our well attended exhibitions and showcases are free to all, with works of art available for purchase in all price ranges. To further support exhibiting artists and to encourage wider ownership of quality art, we also offer interest free loans for purchases under the ‘Own Art’ scheme run by the Arts Council England.
We have knowledgeable and highly skilled staff who are always available to discuss the art works and their production techniques, and who also offer help and useful advice to craft and design artists.
We have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing our aims and objectives and in planning our future activities. In particular, the trustees consider how planned activities will contribute to the aims and objectives of the charity.
Page 5
THE CRAFT CENTRE & DESIGN GALLERY LIMITED
(Company Limited by Guarantee with Charitable Status)
BOARD OF MANAGEMENT REPORT
ACHIEVEMENTS AND PERFORMANCE
Report of the Artistic Director of The Craft Centre and Design Gallery
Review of the Year April 2020 - March 2021
- Covid year 3 lockdowns,
April 2020 – 4th July 2020,
November 2020
January 2021 – April 12[th] 2021
2019/20 although still a year where a deficit would be made there was a general increase in sales and interest until Covid-19 struck, this devastated the back end of that financial year and the exhibitions that ordinarily would have given a boost to sales.
We had just set up Stand by Me (3D) and Set in Stone (Jewellery), Barry Steadman Ceramic Showcase and the Group Collagraph Show (Print)
All exhibitions and educational events had to be postponed and or cancelled due to the pandemic 2020/21 - we were closed entirely from weeks 1-12. Despite years of staff lobbying for an online store, we didn’t have an online selling presence when we went into lockdown (with the exception of Gift Vouchers which were available to purchase through our website) this meant our income for the weeks we were closed was zero.
All staff were fully furloughed until 4[th] July 2020 and no one was overseeing the gallery at all. When we reopened there was a great deal of catching up to do. Staff hours were reduced and two members of staff (out of a team of 6 + 1 on maternity leave) remained fully furloughed. A one way system which encouraged social distancing had been implemented, along with hand sanitiser for customers to use, sneeze screens to protect both staff and customers and we signed up to be part of the track and trace scheme.
All the exhibitions, which were installed prior to the first lockdown, were extended (Stand by Me, Set in Stone, Collagraph, Barry Steadman) and we had to rearrange the rest of the year to accommodate these extensions.
As previously mentioned staff numbers and hours were reduced and we utilised the Governments Job Retention Scheme (and did so until it ceased at the end of September 2021) as a source of funding. Visitor numbers were almost non existent (the Art Gallery at this time was closed and all connecting doors to the Art Gallery and Art Gallery shop were locked; (this was part of the Silver Standard code the gallery were adhering to). The Craft Centre was averaging 5 visitors a day, this is over a 90% drop in footfall.
Due to our unusual placement within a Leeds City Council building, we were not eligible to apply for funding (as funding was awarded based on your business rateable value which we don’t have as we’re located within the Leeds City Council Art Gallery building).
The only funding we were able to secure was the Arts Council England Culture Emergency Fund - we received £50,000 from this.
The online store began to develop so that we would be in a better position when the next lockdown hit (weeks 31-34) we made steady sales from this but it was a struggle to update as we were still on reduced staff and reduced hours. This was around the time that Hayley went on extended sick leave which put further pressure on the staff who were not fully furloughed.
Page 6
THE CRAFT CENTRE & DESIGN GALLERY LIMITED
(Company Limited by Guarantee with Charitable Status)
BOARD OF MANAGEMENT REPORT
Just after Christmas we entered the final lockdown for weeks 40-52. At this point Hayley and Florence were the only members of staff not fully furloughed and working in the gallery one day per week to keep things ticking over.
Around January 2021 Hayley, the Director of 31 years, handed in her notice and left the following June.
Barry Steadman - Ceramic Showcase 14[th] January 2020 - April 2020
Unfortunately Barry made no sales whilst being in the Ceramic Showcase - we currently still have his collection and still no sales have been made. Prior to the Showcase, we’d had Barry’s work in the general display section of the gallery and it hadn’t sold at all. It came as a surprise to all the staff members when Hayley chose to have him in a showcase. The work is very high priced and due to the nature of the techniques Barry uses, it’s difficult for visitors to see the value in the work.
We also can’t ignore the fact that Covid had a huge impact on our visitor numbers and this will have had an impact on all sales.
Katrine Barber Ceramic Showcase 21[st] April 2020 - 31[st] October 2020
£1592.51 Commission
This was a fab Ceramic Showcase. Katrine is a local maker who found her love of ceramics later in life. Her work really appealed to our audience. We were really lucky that her showcase was just coming to an end before lockdown so it wasn’t as badly affected as some shows. We continue to display Katrine’s work and it has never stopped selling.
Collagraph 29[th] February 2020 - 31[st] October 2020
£999.83 Commission
This exhibition was exploring the print technique of Collagraph. There were 4 printmakers featured, all of whom had a different way of utilising the technique. Hester Cox, Suzie MacKenzie, Estella Scholes and Clare Maria Wood took part in the show. This was one which was heavy on the education side of things and we invited makers who would demonstrate the endless applications of Collagraph. The show didn’t do too badly whilst but what we found is we had numerous people getting in touch once the show ended to enquire about the availability of prints. This has been predominantly due to the makers telling potential customers to come to us if they want to buy a print (rather than buying directly from the maker) - it’s that kind of relationship we try to foster with all our makers! Those collagraph ladies obviously understood the vital role we play and we’re more than happy to support us in any way they could.
Stand by Me 20[th] June 2020 - 30[th] October 2021
£1938.91 Commission
The majority of makers made a sale in this show - there were only two who didn’t (out of 10) but these two had much more expensive work. Perhaps the fact they didn’t sell is a reflection of the uncertainty of the economy at that time. The show was fairly strong and had some big names from the ceramic world however I think perhaps the theme of the show was a little convoluted and it limited the makers we could invite. Nevertheless, I feel it would have performed better if more visitors had had the opportunity to view it. We kept a few of the makers following the show and they continued to make sales.
Page 7
THE CRAFT CENTRE & DESIGN GALLERY LIMITED
(Company Limited by Guarantee with Charitable Status)
BOARD OF MANAGEMENT REPORT
Set in Stone 20[th] June 2020 - 30[th] October 2021
£3084.90 Commission
As always the jewellery show brought us in more commission than the 3D. There was a strong theme that linked the 10 makers. They either all set stones using unusual techniques, or used unusual stones. Again 2 makers (out of 10) didn’t make a sale but these were the higher priced jewellers. We kept a couple of the makers after the show and they continue to make sales.
Marina Bauguil - Ceramics Showcase 7[th] November 2020 - 20[th] July 2021
£1537.67 Commission
Marinas Ceramic Showcase was installed just prior to lockdown, we did make a number of sales for her during this time and these were through our Online Store and social media. We also found a number of people enquiring via email. Once we were allowed to reopen to the public the sales continued with people buying multiple pieces together (they’re very small ceramic figures) the show was a huge success given the circumstances and we still continue to display and sell Marina’s work.
Tim Southall/Jeremy James Winter Print Exhibition 7[th] November 2020 - 19[th] June 2021
£627.50 commission Tim Southall
£612.50 commission Jeremy James
This was a joint show with two very well known printmakers, each using screen-printing to achieve very different results. Originally it was supposed to be Jeremy James and Kate Brooks but unfortunately she had to pull out and we managed to persuade Tim to take part. Both makers sold really well and alongside the sales they made during the show, we took numerous orders. So it felt like a really successful print show, we still have collections of both makers work.
At Play 7[th] November 2020 - 19[th] June 2021
£1519.26 commission 3D
£2393.02 commission jewellery
This was our main Christmas show and the theme of ‘At Play’ encompassed both jewellery and 3D work. As always the jewellery sold better (although there was 1 maker who made no sales at all) Straight after Christmas we entered another lockdown which accounts for the shows duration.
We struggled to find makers who were available to take part in this so there were quite a few last minute additions and the show didn’t quite have the impact we hoped it would. For the 3D, we only managed to work with 8 makers as opposed to the usual 10.
All the winter shows were planned, curated and installed by only 3 members of staff (due to furlough and sickness) so that was a huge achievement!
In the Spotlight 7[th] November 2020 - 19[th] June 2021
£457.75 commission
In the spotlight is a show for 5 makers who either use materials in a different and exciting way or who use innovative techniques. It’s a combination of both 3D and jewellery. It’s never a show which performs particularly well. Perhaps this is something which will need addressing in the future.
Page 8
THE CRAFT CENTRE & DESIGN GALLERY LIMITED
(Company Limited by Guarantee with Charitable Status)
BOARD OF MANAGEMENT REPORT
All shows would have performed so much better if it hadn’t been for Covid
FINANCIAL REVIEW
Results for the year
The operation of the charity for the year ended 31 March 2021 has resulted in a deficit of £3,422 before the actuarial loss on defined benefit pension scheme of £13,700 which results in a deficit of £17,122 (2020: deficit of £33,049). The operating reserves, after adding the surplus for the year, are £41,099 (2020: £19,521). Adjusting the accounts for the pension fund liability of £412,000 results in a negative balance of £370,901 (2020: negative balance of £230,479, after a £250,000 pension fund adjustment).
Pension Fund
The International Accounting Standard (IAS) 19 deficit as at 31 March 2021 of £412,000 represents the difference between the value of the Company’s pension fund assets at 31 March 2021 and the estimated present value of the future pension payments to which it was committed at 31 March 2021. These pension liabilities will be paid out over a period of many years during which time the assets will continue to generate returns towards funding them. Any significant changes in global equity markets after 1 April 2021 would also have an impact on the capital value of the pension fund assets.
Going Concern
The company has been significantly affected by the impact of the Coronavirus pandemic from March 2020 onwards, with the gallery being forced to close during national lockdowns and with reduced footfall during those times when opening was permitted. As a result, its income from sales during 2020/21 has significantly reduced. However the company has been able to access government support, furloughing its staff and successfully bidding for a support grant from the Arts Council fund. The directors have considered the resulting financial position, and are satisfied that the company has sufficient funds to continue in operation, and therefore the going concern assumption remains appropriate for its 2021/22 accounts.
The funds’ deficit of £370,901 is after the deduction of a pension fund liability of £412,000 and with regard to this issue the directors have carefully considered the going concern assumption and believe it to be appropriate. Under the terms of the Guarantee Agreement between Leeds City Council and the administering authority of the West Yorkshire Pension Fund dated 22 March 2001, Leeds City Council acts as Guarantor to the company in respect of its pension liabilities. If the company ceased to operate, the pension liability of £412,000 would revert to Leeds City Council.
Investment policy
Under the memorandum and articles of association, the charity has the power to make any investment which the board of management sees fit.
Page 9
THE CRAFT CENTRE & DESIGN GALLERY LIMITED
(Company Limited by Guarantee with Charitable Status)
BOARD OF MANAGEMENT REPORT
Events since the end of the year
As noted above, from late March 2020 the Covid 19 Coronavirus pandemic has had a material impact on the activities and therefore on the financial position of the company. Lockdown from late March 2020 to early July 2020 has had a huge impact on income due to no customers in that period. As restrictions have eased customers have returned but at reduced numbers in comparison to previous years. The Centre has secured a £50k grant from the Arts Council which has provided short term financial stability, and has been able to make use of the Government’s furlough scheme. However a further lockdown in November 2020 and January to March 2021 increased the financial pressures for the Centre. In the 2021/2022 financial year, so far no further lockdowns have taken place and no restrictions are in place, it is hoped in time that visitors and sales will return to something like pre-covid levels. To aid this process a business review is underway in 2021/22.
Reserves Policy
The Board recognise that the company requires appropriate levels of cash reserves and it is the policy of the company to maintain sufficient, unrestricted funds which are the free reserves of the charity, to cover short term running costs and/or to respond to emergencies for a period of approximately 3 months.
The reserves deficit of the company of £370,901 is after the deduction of a pension fund liability of £412,000. However, as the pension fund deficit would revert to Leeds City Council if the company ceased to operate, this in effect means the company has a positive reserve of £41,099.
The Board considers that the reserve of £41,099 meets its policy objectives.
POLITICAL AND CHARITABLE DONATIONS
No political or charitable donations were made during the year.
THANKS
The Board wishes to thank Hayley – The Artistic Director for all of her hard work since 1982 in supporting the Gallery and wishes her well for the future. With thanks to the new Artistic Director Florence, its staff, all the artists, crafters, designers and makers who had been showcased at the Gallery and note the artistic and charitable achievements over the years and long may this continue in the years to come.
Page 10
THE CRAFT CENTRE & DESIGN GALLERY LIMITED
(Company Limited by Guarantee with Charitable Status)
BOARD OF MANAGEMENT REPORT
INDEPENDENT EXAMINATION OF THE ACCOUNTS
For the year ending 31 March 2021 the trustees are satisfied that the charitable company is entitled to exemption from the provisions of the Companies Act 2006 (the Act) relating to the audit of the financial statements for the year by virtue of section 477, and that no member or members have requested an audit pursuant to section 476 of the Act.
The trustees acknowledge their responsibilities for:
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ensuring that the charitable company keeps adequate accounting records which comply with section 386 of the Act; and
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preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of the financial year and of its surplus or deficit for the financial year in accordance with the requirements of sections 394 and 395, and which otherwise comply with the requirements of the Act relating to financial statements, so far as applicable to the charitable company.
Board of Management Responsibility in Relation to Financial Statements
Company and charity law requires the board of management to prepare financial statements that give a true and fair view of the state of affairs of the charity at the end of the financial year and of its surplus or deficit for the financial year. In doing so the board of management are required to:
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select suitable accounting policies and apply them consistently,
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make judgements and estimates that are reasonable and prudent,
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follow applicable accounting standards and
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prepare the financial statements on a going concern basis.
The board of management are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and enables them to ensure that the financial statements comply with the Companies Act 2006. The board of management are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
By order of the board of management:
Registered Office:
The Craft Centre & Design Gallery Limited City Art Gallery The Headrow LEEDS LS1 3AB
Page 11
THE CRAFT CENTRE & DESIGN GALLERY LIMITED
(Company Limited by Guarantee with Charitable Status)
INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES OF THE CRAFT CENTRE & DESIGN GALLERY LIMITED
| Report to the trustees/ members of On accounts for the year ended Set out on pages Respective responsibilities of trustees and examiner |
Craft Centre & Design Gallery Limited |
|---|---|
| 31stMarch 2021 Charity no 513457 |
|
| 13-24 | |
| The trustees (who are also the directors of the company for the purposes of company law) are responsible for the preparation of the accounts. The trustees consider that an audit is not required for this year under section 144(2) of the Charities Act 2011 (the 2011 Act) and that and independent examination is needed. |
Having satisfied myself that the charity is not subject to audit under company law and is eligible for independent examination, it is my responsibility to:
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examine the accounts under section 145 of the 2011 Act,
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to follow the procedures laid down in the general Directions given by the Charity Commission (under section 145(5)(b) of the 2011 Act, and
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to state whether particular matters have come to my attention.
Basis of independent My examination was carried out in accordance with general Directions given by the Charity examiner’s statement Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently no opinion is given as to whether the accounts present a ‘true and fair’ view and the report is limited to those matters set out in the statement below.
In connection with my examination, no matter has come to my attention
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Independent examiner's In connection with my examination, no matter has come to my attention statement 1. which gives me reasonable cause to believe that in, any material respect, the requirements: to keep accounting records in accordance with section 386 of the Companies Act 2006; and to prepare accounts which accord with the accounting records, comply with the accounting requirements of section 396 of the Companies Act 2006 and with the methods and principles of the Statement of Recommended Practice: Accounting and Reporting by Charities;
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have not been met ; or 2. to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.
| Signed: Name: Relevant professional qualification(s) or body: Address: |
Date: | 14/12/2021 |
|---|---|---|
| Steven Neill CPFA | ||
| CIPFA - Charted Institute of Public Finance and Accountancy | ||
| Civic Hall, Leeds, LS1 1UR |
Page 12
THE CRAFT CENTRE & DESIGN GALLERY LIMITED
(Company Limited by Guarantee with Charitable Status)
STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2021
| Description | Note | Unrestricted | Total | Total |
|---|---|---|---|---|
| Funds | Funds | Funds | ||
| 2021 | 2021 | 2020 | ||
| £ | £ | £ | ||
| INCOME | ||||
| Income and Endowments from: | ||||
| Investments | 3 | 61 | 61 | 189 |
| Charitable activities | 4 | 52,252 | 52,252 | 189,477 |
| Other | 5 | 87,690 | 87,690 | 325 |
| Total | 140,003 | 140,003 | 189,991 | |
| EXPENDITURE | ||||
| Expenditure on: | ||||
| Charitable activities | 6 | (141,403) | (141,403) | (233,718) |
| Other | 7 | (2,022) | (2,022) | (2,322) |
| Total | (143,425) | (143,425) | (236,040) | |
| Net income / (Expenditure) | 14 | (3,422) | (3,422) | (46,049) |
| OTHER RECOGNISED GAINS/(LOSSES) | ||||
| Actuarial gains/(losses)on Defined Benefit Pension Scheme | 17 | (13,700) | (13,700) | 13,000 |
| Net movement in funds | (17,122) | (17,122) | (33,049) | |
| RECONCILIATION OF FUNDS | ||||
| Total funds brought forward | (230,479) | (230,479) | (197,430) | |
| Total funds carried forward | (247,601) | (247,601) | (230,479) |
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure are derived from continuing activities.
Page 13
THE CRAFT CENTRE & DESIGN GALLERY LIMITED
(Company Limited by Guarantee with Charitable Status)
COMPANY REGISTRATION NUMBER 1685289
BALANCE SHEET AS AT 31 MARCH 2021
| Description | Note | 2021 | 2020 |
|---|---|---|---|
| £ | £ | ||
| FIXED ASSETS | |||
| Tangible Assets | 9 | 24 | 363 |
| CURRENT ASSETS | |||
| Stocks - Goods for Resale | 10 | 257 | 282 |
| Debtors | 11 | 5,000 | 0 |
| Cash at Bank and in Hand | 12 | 493,455 | 360,928 |
| Total current assets | 498,712 | 361,210 | |
| LIABILITIES | |||
| Creditors: Amounts Falling Due Within One Year | 13 | (457,637) | (342,052) |
| Total net current assets or liabilities | 41,075 | 19,158 | |
| Net assets or liabilities excluding pension asset or liability | 41,099 | 19,521 | |
| Defined benefit scheme liability | 17 | (412,000) | (250,000) |
| Net assets or liabilities including pension asset or liability | (370,901) | (230,479) | |
| THE FUNDS OF THE CHARITY | |||
| Unrestricted funds | (370,901) | (230,479) | |
| Total charity funds | (370,901) | (230,479) |
For the year ending 31st March 2021 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476.
The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.
These accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies’ regime.
SIGNED ON BEHALF OF THE BOARD OF MANAGEMENT
Page 14
THE CRAFT CENTRE & DESIGN GALLERY LIMITED
(Company Limited by Guarantee with Charitable Status)
NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021
1. ACCOUNTING POLICIES
(a) Basis of Accounting
The financial statements have been prepared under the historical cost convention and in accordance with applicable United Kingdom and International accounting standards, the Charities SORP (Statement of Recommended Practice) FRS 102 “Accounting and Reporting by Charities” effective January 2015 and the Companies Act 2006. The principal accounting policies adopted in the preparation of the financial statements are as follows:
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(i) Income from charitable activities represents sales of goods, exclusive of value added tax. The Company’s claim for exemption from taxes under Section 505 (1) Income and Corporation Taxes Act 1988 has been confirmed by the Inland Revenue.
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(ii) Depreciation is provided for in equal instalments calculated to write off the cost of fixed assets over their anticipated useful lives. Useful lives are:
Fixtures and Fittings 5 -10 years Computer Equipment 5 years
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(iii) Stocks are stated at cost net of value added tax.
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(iv) Grant income is recognised in the accounts when the charity becomes unconditionally entitled to the grant, i.e. where entitlement is not conditional on the delivery of a specific performance by the charity.
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(v) The administrative and accounting policies and procedures of the charity are so closely linked to those of the City Council that it has been decided to make no charge for certain administrative expenses incurred by the Council during the year ended 31 March 2021. The decision follows upon that of the Council to maintain the amenity for the benefit of the city of Leeds.
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(vi) The charitable company contributes, in regard to a number of its employees, to the West Yorkshire Superannuation Fund, a funded defined benefit statutory scheme administered by the City of Bradford Metropolitan Council in accordance with the Local Government Superannuation Regulations 1988. The benefits provided to the employees concerned are based on final pensionable pay. Contributions are charged to the Statement of Financial Activities each year so as to spread the cost of pensions over employees’ working lives with the charitable company.
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(vii) The company applies the provisions of FRS 102 in full to account for its financial instruments.
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(viii) The trustees have taken advantage of the exemption in Financial Reporting Standard No 1 (revised) from including a cash flow statement in the financial statements on the grounds that the charitable company is small.
(b) Fund accounting
Unrestricted funds are available for use at the discretion of the trustees in furtherance of the general objectives of the charity. All funds of the charity are considered to be unrestricted.
Page 15
THE CRAFT CENTRE & DESIGN GALLERY LIMITED
(Company Limited by Guarantee with Charitable Status)
NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021 continued
(c) Income
All income received are included in the statement of financial activities when the charity is entitled to the income and the amount can be quantified with reasonable accuracy. The following specific policies are applied to particular categories of income:
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(i) Voluntary income is received by way of grants, donations and gifts and is included in full in the Statement of Financial Activities when receivable. Grants, where entitlement is not conditional on the delivery of a specific performance by the charity, are recognised when the charity becomes unconditionally entitled to the grant.
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(ii) Investment income is included when receivable.
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(iii) Income from charitable trading activity are accounted for when earned.
(d) Expenditure
Expenditure is recognised on an accrual basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is reported as part of the expenditure to which it relates:
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(i) Costs of generating funds comprise the costs associated with trading for fundraising purposes.
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(ii) Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.
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(iii) Governance costs include those costs associated with meeting the constitutional and statutory requirements of the charity and include the audit fees and costs linked to the strategic management of the charity.
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(iv) All costs are allocated to the Statement of Financial Activities on a basis designed to reflect the use of the resources. Costs relating to a particular activity are allocated directly, other support costs are apportioned to a particular activity as a percentage based on estimated staff time involved, as set out in note 6.
2. BOARD OF MANAGEMENT
No emoluments or reimbursement of expenses were paid by the charity to the board of management during the year.
| 3. INVESTMENTS | ||
|---|---|---|
| Unrestricted Funds Total Funds |
Total Funds |
|
| 2021 2021 |
2019 | |
| £ £ |
£ | |
| Special Interest BearingAccount(SIBA)-Interest inyear | 61 61 |
189 189 |
| Total | 61 61 |
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THE CRAFT CENTRE & DESIGN GALLERY LIMITED
(Company Limited by Guarantee with Charitable Status)
NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021 continued
4. INCOME FROM CHARITABLE ACTIVITIES
| 4. INCOME FROM CHARITABLE ACTIVITIES | 4. INCOME FROM CHARITABLE ACTIVITIES | ||
|---|---|---|---|
| AgencySales - Craft items | |||
| Total | |||
| 5. OTHER | |||
| Gift Vouchers expired | |||
| Arts Councilgrant and Furlough income | |||
| Total | |||
| 6. CHARITABLE ACTIVITIES | |||
| Direct Pay Payments to Craft Artists |
|||
| £ £ |
£ £ £ £ |
||
| Agency Commissions | |||
| Operational Costs (51,551) - |
(27,645) (3,708) (82,904) (105,283) |
||
| Payments to Artists - (25,301) |
- - (25,301) (90,219) |
||
| (51,551) (25,301) |
(27,645) (3,708) (108,205) (195,502) |
||
| Exhibitions | |||
| Operational Costs (24,311) - |
(140) (1,545) (25,996) (26,921) |
||
| Educational/Advisory Service | |||
| Operational Costs | (6,275) - |
- (927) (7,202) (11,294) |
|
| Total | (82,137) (25,301) |
(27,785) (6,180) (141,403) (233,718) |
|
| Unrestricted Total Total Funds Funds Funds 2021 2021 2020 £ £ £ (1,667) (1,667) (1,667) (355) (355) (655) (2,022) (2,022) (2,322) |
|||
| 7. OTHER | |||
| Independent Examiner’s and | Audit fees | ||
| IAS 19pension fund valuation fees | |||
| Total |
Page 17
THE CRAFT CENTRE & DESIGN GALLERY LIMITED
(Company Limited by Guarantee with Charitable Status)
NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021 continued
| 8. STAFFING | ||||
|---|---|---|---|---|
| 2021 | 2021 | 2020 | ||
| £ | £ | £ | ||
| (i)Staff Costs: | ||||
| Salaries and Wages | (73,281) | (73,281) | (84,795) | |
| Social Security Costs | (647) | (647) | (1,882) | |
| Pension Costs(see note 17) | (11,991) | (11,991) | (10,571) | |
| Total | (85,919) | (85,919) | (97,248) |
No employee earned more than £60,000 per annum.
| (ii)The average number of people employed by the Charity during the year | (ii)The average number of people employed by the Charity during the year | was: | |
|---|---|---|---|
| 2021 2021 2020 2020 |
|||
| Manager | 1 1.00 FTE 1 1.00 FTE |
||
| Assistants | 6 2.88 FTE 5 2.88 FTE |
||
| Total | 7 3.88 FTE 6 3.88 FTE |
||
| Fixtures & Computer Total Fittings £ £ £ 51,605 2,826 54,431 0 0 00 0 0 0 51,605 2,826 54,431 51,605 2,463 54,068 0 339 339 0 0 0 51,605 2,802 54,407 0 24 24 0 363 363 Damaged Items Bags and Postcards Total £ £ £ 20 262 282 15 22 37 (20) (42) (62) 15 242 257 |
|||
| 9. FIXED ASSETS | |||
| ASSET COST | |||
| Balance brought forward | |||
| Additions | |||
| Disposals | |||
| Balance carried forward | |||
| ACCUMULATED DEPRECIATION | |||
| Balance brought forward | |||
| Charge for the year | |||
| Disposals duringtheyear | |||
| Balance carried forward | |||
| NET BOOK VALUE | |||
| At 31 March 2021 | |||
| At 31 March 2020 | |||
| 10. STOCK | |||
| Balance brought forward | |||
| Additions | |||
| Stock sold/used/written off | |||
| Balance carried forward |
Page 18
THE CRAFT CENTRE & DESIGN GALLERY LIMITED
(Company Limited by Guarantee with Charitable Status)
NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021 continued
| 11. DEBTORS | |
|---|---|
| 2021 2020 |
|
| £ £ |
|
| Trade debtors | 5,000 0 |
| Total | 5,000 0 |
| 12. CASH AT BANK AND IN HAND | |
| 2021 2020 |
|
| £ £ |
|
| Bank Account | 450,353 317,887 |
| Petty Cash Float | 150 150 |
| Special Interest BearingAccount(SIBA) | 42,952 42,891 |
| Total | 493,455 360,928 |
| 13. CREDITORS | |
| 2021 2020 |
|
| £ £ |
|
| Trade creditors | (19,453) (7,771) |
| Leeds City Council | (438,447) (331,354) |
| VAT | 263 (2,927) |
| Total | (457,637) (342,052) |
| 14. OTHER NOTABLE ITEMS | |
| The net incoming resources before other recognised gains and losses is arrived at after charging: |
|
| 2021 2020 |
|
| £ £ |
|
| Independent Examiner and Audit Fees (1,667) (1,667) |
|
| IAS19 pension fund valuation (355) (655) |
|
| Depreciation (339) (472) |
15. TRUSTEE REMUNERATION AND RELATED PARTY TRANSACTIONS
No members of the management committee received any remuneration during the year. No trustee or other person related to the charity had any personal interest in any contract or transaction entered into by the charity during the year (2021 – Nil).
Leeds City Council supports the board of management. The charity occupies premises within the City Art Gallery under licence from Leeds City Council, no charge for rent appears in these accounts. In addition the Council provides support services at no cost. At the year end the charity owed Leeds City Council £438,447 in respect of payments made on its behalf (2020 – £331,354). The charity deposits surplus cash balances with Leeds City Council at a commercial rate of interest (the average rate for the year was 0.14%). The balance of this deposit at 31 March 2021 was £42,952 (£42,891 at 31 March 2020).
Page 19
THE CRAFT CENTRE & DESIGN GALLERY LIMITED
(Company Limited by Guarantee with Charitable Status)
NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021 continued
16. CAPITAL COMMITMENTS
The charity had no capital commitments in the years ending 31 March 2021 and 2020.
17. PENSIONS
IAS 19 Accounting Results Schedule 31 March 2021
----- Start of picture text -----
Employer: The Craft Centre and Design Gallery Ltd
Fund: West Yorkshire Pension Fund
Fund Administering Authority: City of Bradford Metropolitan District Council
Prepared by: Iain Turri FIA
Prepared for: The Craft Centre and Design Gallery Ltd
----- End of picture text -----
1 Results under IAS 19 (LGPS funded benefits)
The figures below relate to the funded liabilities within the fund which is part of the Local Government Pension Scheme. There are additional disclosures under IAS 19 and these have been set out in Section 5 of the Covering Report.
----- Start of picture text -----
Date of the last full actuarial valuation of the employer's LGPS funded benefits 31 March 2019
Expected employer contributions next year (£M) 0.011
Duration of liabilities 29.7 years
Key assumptions 31 March 2021 31 March 2020 31 March 2019
% p.a. % p.a. % p.a.
Discount rate 2.10% 2.30% 2.50%
CPI Inflation 2.60% 1.80% 2.10%
Pension increases 2.60% 1.80% 2.10%
Pension accounts revaluation rate 2.60% 1.80% 2.10%
Salary increases 3.85% 3.05% 3.35%
----- End of picture text -----
Mortality assumption
The mortality assumptions are based on the recent actual mortality experience of members within the Fund based on analysis carried out as part of the 2019 Actuarial Valuation and allow for expected future mortality improvements. Sample life expectancies at age 65 in normal health resulting from these mortality assumptions are shown below.
----- Start of picture text -----
31 March 2021 31 March 2020
Males
Member aged 65 at accounting date 21.9 21.8
Member aged 45 at accounting date 22.6 22.5
Females
Member aged 65 at accounting date 24.7 24.6
Member aged 45 at accounting date 25.8 25.7
----- End of picture text -----
----- Start of picture text -----
Asset allocation Value at 31 March 2021 Value at
Quoted Unquoted Total 31 March 2020
Equities 69.7% 10.0% 79.7% 77.5%
Property 1.6% 2.2% 3.8% 4.5%
Government bonds 8.3% 0.0% 8.3% 9.6%
Corporate bonds 4.6% 0.0% 4.6% 5.1%
Cash 0.0% 2.0% 2.0% 1.9%
Other 0.0% 1.6% 1.6% 1.4%
Total 84.2% 15.8% 100.0% 100.0%
----- End of picture text -----
NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021 continued
Page 20
THE CRAFT CENTRE & DESIGN GALLERY LIMITED
(Company Limited by Guarantee with Charitable Status)
----- Start of picture text -----
Value at Value at
Reconciliation of funded status to balance sheet 31 March 2020 31 March 2020
(£M) (£M)
Fair value of assets 0.413 0.332
Present value of funded defined benefit obligation 0.825 0.582
Funded status (0.412) (0.250)
Unrecognised asset 0.000 0.000
Asset/(liability) recognised on the balance sheet (0.412) (0.250)
The split of the liabilities at the last valuation between the various categories of members is as follows:
Active members 80%
Deferred Pensioners 7%
Pensioners 13%
Period ending Period ending
Amounts recognised in profit and loss and other comprehensive income 31 March 2021 31 March 2020
(£M) (£M)
Operating cost
Current service cost 0.032 0.030
Past service cost (inc. curtailments) 0.000 0.012
Settlement cost 0.000 0.000
Financing cost
Interest on net defined benefit liability / (asset) 0.005 0.005
Pension expense recognised in profit and loss 0.037 0.047
Period ending Period ending
Remeasurements in other comprehensive income 31 March 2021 31 March 2020
(£M) (£M)
Return on plan assets (in excess of) / below that recognised in net interest (0.070) 0.041
Actual (gains)/losses due to changes in financial assumptions 0.210 (0.018)
Actual (gains)/losses due to changes in demographic assumptions 0.000 (0.021)
Actual (gains)/losses due to liability experience (0.003) (0.015)
Total amount recognised in other comprehensive income 0.137 (0.013)
Total amount recognised in profit and loss and other comprehensive income 0.174 0.034
Allowance for administration expenses included in Current Service Cost (£M) 0.000 0.000
Period ending Period ending
Changes to the present value of the defined benefit obligation 31 March 2021 31 March 2020
(£M) (£M)
Opening defined benefit obligation 0.582 0.510
Current service cost 0.032 0.030
Interest expense on defined benefit obligation 0.013 0.014
Contributions by participants 0.004 0.005
Actual (gains)/losses due to changes in financial assumptions 0.210 (0.018)
Actual (gains)/losses due to changes in demographic assumptions 0.000 (0.021)
Actual (gains)/losses due to liability experience (0.003) (0.015)
Net benefits paid out (0.013) (0.003)
Past service cost (inc. curtailments) 0.000 0.012
Net increase in liabilities from disposals/acquisitions 0.000 0.000
Settlements 0.000 0.000
Closing defined benefit obligation 0.825 0.582
----- End of picture text -----
NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021 continued
Page 21
THE CRAFT CENTRE & DESIGN GALLERY LIMITED
(Company Limited by Guarantee with Charitable Status)
----- Start of picture text -----
Period ending Period ending
Changes to the fair value of assets 31 March 2021 31 March 2020
(£M) (£M)
Opening fair value of assets 0.332 0.351
Interest income on assets 0.008 0.009
Remeasurement (gains)/losses on assets 0.070 (0.041)
Contributions by the employer 0.012 0.011
Contributions by participants 0.004 0.005
Net benefits paid out (0.013) (0.003)
Net increase in assets from disposals/acquisitions 0.000 0.000
Settlements 0.000 0.000
Closing fair value of assets 0.413 0.332
Period ending Period ending
Actual return on assets 31 March 2021 31 March 2020
(£M) (£M)
Interest income on assets 0.008 0.009
Remeasurement gain/(loss) on assets 0.070 (0.041)
Actual return on assets 0.078 (0.032)
----- End of picture text -----
2 Estimated pension expense in future periods
We provide an estimate of the charges to the profit and loss account in future periods, based on the assumptions as at 31 March 2021 set out in Section 1. Comments on these approximate figures are set out in the Covering Report.
Funded Benefits
----- Start of picture text -----
Period ending
Analysis of amount charged to profit and loss 31 March 2022
(£M)
Current service cost 0.048
Net interest on net defined benefit liability 0.009
Total estimated pension expense 0.057
Allowance for administration expenses included in Current Service Cost (£M) 0.000
Estimated pensionable payroll over the period (£M) 0.094
----- End of picture text -----
3 Sensitivity Analysis
The approximate impact of changing the key assumptions on the present value of the funded defined benefit obligation as at 31 March 2021 and the projected service cost for the period ending 31 March 2022 is set out below.
In each case only the assumption mentioned is altered; all other assumptions remain the same and are summarised in Section 1. We have not included sensitivity of unfunded benefits (where applicable) on materiality grounds.
Funded LGPS benefits
----- Start of picture text -----
Discount rate assumption
Adjustment to discount rate +0.1% p.a. Base figure -0.1% p.a.
Present value of total obligation (£M) 0.801 0.825 0.850
% change in present value of total obligation -2.9% 3.0%
Projected service cost (£M) 0.046 0.048 0.050
Approximate % change in projected service cost -3.7% 3.8%
Rate of general increase in salaries
Adjustment to salary increase rate +0.1% p.a. Base figure -0.1% p.a.
Present value of total obligation (£M) 0.832 0.825 0.819
% change in present value of total obligation 0.8% -0.7%
Projected service cost (£M) 0.048 0.048 0.048
Approximate % change in projected service cost 0.0% 0.0%
NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021 continued
----- End of picture text -----
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THE CRAFT CENTRE & DESIGN GALLERY LIMITED
(Company Limited by Guarantee with Charitable Status)
Rate of increase to pensions in payment and deferred pensions assumption, and rate of revaluation of pension
accounts assumption
----- Start of picture text -----
Adjustment to pension increase rate +0.1% p.a. Base figure -0.1% p.a.
Present value of total obligation (£M) 0.843 0.825 0.807
% change in present value of total obligation 2.2% -2.2%
Projected service cost (£M) 0.050 0.048 0.046
Approximate % change in projected service cost 3.8% -3.7%
Post retirement mortality assumption
Adjustment to mortality age rating assumption * -1 year Base figure +1 year
Present value of total obligation (£M) 0.855 0.825 0.795
% change in present value of total obligation 3.6% -3.6%
Projected service cost (£M) 0.050 0.048 0.046
Approximate % change in projected service cost 4.0% -3.9%
----- End of picture text -----
* A rating of +1 year means that members are assumed to follow the mortality pattern of the base table for an individual that is 1 year older than them
4 Data summary
Funded benefits
The following data was provided by the Fund Administering Authority and / or the Employer and has been used to produce the results in this report. Details of the split of assets between the various asset classes were also provided by the Fund Administering Authority and are shown in Section 1. We have also shown some of the intermediate calculations used in evaluating the figures in this report.
Active members as at 31 March 2019
----- Start of picture text -----
Number Total Pay (£M)
Total 4 0.070
Pensioner & deferred pensioner members as at 31 March 2016
Type Number Total pension
(£M)
Deferred members 3 0.002
Pensioners and dependants 1 0.003
----- End of picture text -----
Funded cash-flow data provided
----- Start of picture text -----
Months Amount Amount Used
Provided Provided (£M) (£M)
Employer – Normal contributions 11 0.011
Employer – Additional capital contributions 11
Employer – Early retirement strain on fund payments 11
Total contributions by the Employer 0.012
Employee - Normal contributions 11 0.004
Employee - Added years contributions 11
Total contributions by participants 0.004
Transfers in 12
Other income 12
Transfers out 12 0.009
Retirement lump sums 12
Other outgo 12
Death in service lump sums * 12
Benefits paid (i.e. pension paid) 12 0.003
Net benefits paid out ** 0.013
We have calculated the expected death in service lump sums over the year to be (£M) 0.000
The 'Net benefits paid out' figure includes an allowance for expenses of (£M) 0.000
----- End of picture text -----*
Any other approximations applied in deriving the "Amount Used" are set out in the Covering Report.
NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021 continued
Page 23
THE CRAFT CENTRE & DESIGN GALLERY LIMITED
(Company Limited by Guarantee with Charitable Status)
----- Start of picture text -----
National cashflows between employers in the Fund
Amount Provided Amount Used
(£M) * (£M)
Notional Transfers in 12
Notional Transfers out 12
Net notional transfers of assets 0.000
Prior year adjustments
Amount (£M)
Allowance for additional data in relation to the cashflows provided for the prior year 0.000
Annualised pensionable payroll over the accounting period
(£M)
Period ending 31 March 2021 0.090
Period ending 31 March 2020 0.081
----- End of picture text -----*
| * The annualised pensionable payroll has been derived from the contributions paid over the relevant accounting period Calculation of assets at the balance sheet date AssetValue at 31 March 2021 Unit Price at 31 March 2021 UnitPrice at 31 March 2020 Total known to 31 March 2021 Total return over the accounting period* |
* The annualised pensionable payroll has been derived from the contributions paid over the relevant accounting period Calculation of assets at the balance sheet date AssetValue at 31 March 2021 Unit Price at 31 March 2021 UnitPrice at 31 March 2020 Total known to 31 March 2021 Total return over the accounting period* |
|
|---|---|---|
| **(£M) *** | ||
| AssetValue at 31 March 2021 | £0.412M | |
| Unit Price at 31 March 2021 | 1.5450 | |
| UnitPrice at 31 March 2020 | 1.2545 | |
| Total known to 31 March 2021 | 23.2% | |
| Total return over the accounting period* | 23.0% |
*The total return has been adjusted to reflect any differences between the assumed investment returns allowed for in the prior period and the actual returns experienced over the prior period (where applicable).
Page 24