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2022-03-31-accounts

THE CRAFT CENTRE & DESIGN GALLERY LIMITED

FINANCIAL ACCOUNTS

FOR THE YEAR ENDED 31 MARCH 2022

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 2022.

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 4 management members as at 31 March 2022. There were 4 trustees serving during the year:

Honorary Alderman Bernard P Atha, CBE (Deputy Chair) Councillor Judith Elliot Lucinda Yeadon (Chairperson) Councillor Kayleigh Brooks

Ex-Officio Member of the Board of Management

Vacant

Secretary

Corporate Governance Services, Leeds City Council

Artistic Director

Miss F Hoy, The Craft Centre & Design Gallery Limited.

Independent Examiners

Leeds City Council

Bankers

Virgin Money. 94-96 Briggate, Leeds, LS1 6NP

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:

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 2021 - March 2022 – TO BE ADDED ONCE RECEIVED

Page 6 

THE CRAFT CENTRE & DESIGN GALLERY LIMITED

(Company Limited by Guarantee with Charitable Status)

BOARD OF MANAGEMENT REPORT

FINANCIAL REVIEW

Results for the year

The operation of the charity for the year ended 31 March 2022 has resulted in a deficit of £57,812 before the actuarial gain on defined benefit pension scheme of £14,200 which results in a deficit of £43,612 (2021: deficit of £3,422). The operating reserves, after adding the surplus for the year, are £23,264 (2021: £41,099). Adjusting the accounts for the pension fund liability of £308,000 results in a negative balance of £284,736 (2021: negative balance of £412,000, after a £370,901 pension fund adjustment).

Pension Fund

The International Accounting Standard (IAS) 19 deficit as at 31 March 2022 of £308,000 represents the difference between the value of the Company’s pension fund assets at 31 March 2022 and the estimated present value of the future pension payments to which it was committed at 31 March 2022. 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 and 2021/22 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. In the new post-pandemic environment, the directors recognise that the company’s financial position remains challenging, and that action is needed to modernise and adapt its operating model for the future. The company’s level of operational reserves after discounting the impact of pension liabilities (please see the explanation below) stood at £23.3k. The directors considered the resulting financial position at the end of 2021/22, and are satisfied that, whilst action is needed to secure its long term future, the company had sufficient funds in the meantime to continue in operation, and that therefore a going concern assumption remains appropriate. The company is undertaking a review of its operating model during 2022/23, with support from Leeds City Council and external consultants.

The funds’ deficit of £284,736 is after the deduction of a pension fund liability of £308,000 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 £308,000 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 7 

THE CRAFT CENTRE & DESIGN GALLERY LIMITED

(Company Limited by Guarantee with Charitable Status)

BOARD OF MANAGEMENT REPORT

Events since the end of the year

With the sad passing of a trustee and the retirement of another trustee, the number of current trustees and members of the board has fallen below the minimum recommended levels. The remaining board, with the support of external consultants and the Council, are considering how to replenish the board and assessing how best to achieve the objectives of the charity and benefit the city of Leeds, carrying out a full review of its operating activities in 2022/23.

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 £284,736 is after the deduction of a pension fund liability of £308,000. 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 £23,264.

The Board considers that the reserve of £23,264 is insufficient to meet its policy objectives and is carrying out a business review in 2022/23 as noted above.

POLITICAL AND CHARITABLE DONATIONS

No political or charitable donations were made during the year.

THANKS

The Board wishes to thank the 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 8 

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 2022 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:

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:

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:

Lucinda Yeadon ( Chairperson )

20/12/2022 Date

Registered Office:

The Craft Centre & Design Gallery Limited City Art Gallery The Headrow LEEDS LS1 3AB

Page 9 

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		 Craft Centre & Design Gallery Limited
31stMarch 2022
Charity no
513457
11-22

Respective responsibilities of trustees and examiner

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:

Basis of independent examiner’s statement

My examination was carried out in accordance with general Directions given by the Charity 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.

Independent examiner's statement

In connection with my examination, no matter has come to my attention

  1. which gives me reasonable cause to believe that in, any material respect, the requirements:

  2. to keep accounting records in accordance with section 386 of the Companies Act 2006; and

  3. 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;

  4. have not been met ; or

  5. 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: 14/12/2022
Rosie Boyles - CPFA
CIPFA - Charted Institute of Public Finance and Accountancy
Civic Hall, Leeds, LS1 1UR

Page 10 

THE CRAFT CENTRE & DESIGN GALLERY LIMITED

(Company Limited by Guarantee with Charitable Status)

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2022

Description
Note		 Unrestricted
Total
Total
Funds
Funds
Funds
2022
2022
2021
£
£
£
INCOME
Income and Endowments from:
Investments
3		 26
26
61
Income from charitable activities
4		 138,968
138,968
52,253
Other
5		 23,583
23,583
87,690
Total 162,577
162,577
140,003
EXPENDITURE
Expenditure on:
Charitable activities
6		 (218,312)
(218,312)
(141,403)
Other
7		 (2,077)
(2,077)
(2,022)
Total (220,389)
(220,389)
(143,425)
Net Income / (Expenditure)
14		 (57,812)
(57,812)
(3,422)
OTHER RECOGNISED GAINS/(LOSSES)
Actuarial gains/(losses)on Defined Benefit Pension Scheme
17		 14,200
14,200
(13,700)
Net movement in funds (43,612)
(43,612)
(17,122)
RECONCILIATION OF FUNDS
Total funds brought forward (247,601)
(247,601)
(230,479)
Total funds carried forward (291,213)
(291,213)
(247,601)

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure relates to continuing activities.

Page 11 

THE CRAFT CENTRE & DESIGN GALLERY LIMITED

(Company Limited by Guarantee with Charitable Status)

COMPANY REGISTRATION NUMBER 1685289

BALANCE SHEET AS AT 31 MARCH 2022 BALANCE SHEET AS AT 31 MARCH 2022
Description Note 2022 2021
£ £
FIXED ASSETS
Tangible Assets 9 2,173 24
CURRENT ASSETS
Stocks - Goods for Resale 10 465 257
Debtors 11 0 5,000
Cash at Bank and in Hand 12 78,104 493,455
Total current assets 78,569 498,712
LIABILITIES
Creditors: Amounts Falling Due Within One Year 13 (57,478) (457,637)
Total net current assets or liabilities 21,091 41,075
Net assets or liabilities excluding pension asset or liability 23,264 41,099
Defined benefit scheme liability 17 (308,000) (412,000)
Net assets or liabilities including pension asset or liability (284,736) (370,901)
THE FUNDS OF THE CHARITY
Unrestricted funds (284,736) (370,901)
Total charity funds (284,736) (370,901)

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

Lucinda Yeadon ( Chairperson )

20/12/2022 Date

Page 12 

THE CRAFT CENTRE & DESIGN GALLERY LIMITED

(Company Limited by Guarantee with Charitable Status)

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2022

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:

Fixtures and Fittings 5 -10 years Computer Equipment 5 years

(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 13 

THE CRAFT CENTRE & DESIGN GALLERY LIMITED

(Company Limited by Guarantee with Charitable Status)

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2022 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:

(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:

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
2022
2022		 2021
£
£		 £
Special Interest BearingAccount(SIBA)-Interest inyear 26
26		 61
61
Total 26
26

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 2022 continued

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
(56,408)
-		 (15,469)
(5,548)
(77,425)
(82,904)
IAS 19 Pensions Costs
0
0		 (38,000)
0
(38,000)
(25,000)
Payments to Artists
-
(65,435)		 -
-
(65,435)
(25,301)
(56,408)
(65,435)		 (53,469)
(5,548)
(180,860)
(108,205)
Exhibitions
Operational Costs
(24,311)
-		 (285)
(2,312)
(26,908)
(25,996)
Educational/Advisory Service
Operational Costs (9,157)
-		 -
(1,387)
(10,544)
(7,202)
Total (89,876)
(65,435)		 (53,754)
(9,247)
(218,312)
(141,403)
Unrestricted
Total
Total
Funds
Funds
Funds
2022
2022
2021
£
£
£
(1,667)
(1,667)
(1,667)
(410)
(410)
(355)
(2077)
(2077)
(2,022)
7. OTHER
Independent Examiner’s and Audit fees
IAS 19pension fund valuation fees
Total

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 2022 continued

2022
2022
2021
2021
Manager 1
1
1
1.00 FTE
Assistants 6
6
6
2.88 FTE
Total 7
7
7
3.88 FTE
Fixtures &
Computer
Total
Fittings
£
£
£
51,604
2,826
54,430
527
2,169
2,696
0
0
0
52,131
4,995
57,126
51,604
2,802
54,406
105
442
547
0
0
0
51,709
3,244
54.953
422
1,751
2,173
0
24
24
Damaged
Items
Bags and
Postcards
Total
£
£
£
15
242
257
240
0
240
(15)
(17)
(32)
240
225
465
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 2022
At 31 March 2021
10. STOCK
Balance brought forward
Additions
Stock sold/used/written off
Balance carried forward

Page 16 

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
2022
2021
£
£
Trade debtors 0
5,000
Total 0
5,000
12. CASH AT BANK AND IN HAND
2022
2021
£
£
Bank Account 34,976
450,353
Petty Cash Float 150
150
Special Interest BearingAccount(SIBA) 42,978
42,952
Total 78,104
493,455
13. CREDITORS
2022
2021
£
£
Trade creditors (21,716)
(19,453)
Leeds City Council (33,673)
(438,447)
VAT (2,089)
263
Total (57,478)
(457,637)
14. OTHER NOTABLE ITEMS
The net incoming resources before other recognised gains and losses is arrived at after
charging:
2022
2021
£
£
Independent Examiner and Audit Fees
(1,667)
(1,667)
IAS19 pension fund valuation
(410)
(355)
Depreciation
(547)
(339)

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 (2022 – 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 £33,672 in respect of payments made on its behalf (2021 – £438,447). The charity deposits surplus cash balances with Leeds City Council at a commercial rate of interest (the average rate for the year was 0.06%). The balance of this deposit at 31 March 2022 was £42,979 (£42,952 at 31 March 2021).

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 2022 continued

16. CAPITAL COMMITMENTS

The charity had no capital commitments in the years ending 31 March 2022 and 2021.

17. PENSIONS

IAS 19 Accounting Results Schedule 31 March 2022

----- 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: Aon
Prepared for: City of Bradford Metropolitan District Council
----- 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) 0.013
Duration of liabilities 29.7 years
Key assumptions 31 March 2022 31 March 2021 31 March 2020
% p.a. % p.a. % p.a.
Discount rate 2.70% 2.10% 2.30%
CPI Inflation 2.80% 2.60% 1.80%
Pension increases 2.80% 2.60% 1.80%
Pension accounts revaluation rate 2.80% 2.60% 1.80%
Salary increases 4.05% 3.85% 3.05%
----- 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 2022 31 March 2021
Males
Member aged 65 at accounting date 21.8 21.9
Member aged 45 at accounting date 22.5 22.6
Females
Member aged 65 at accounting date 24.6 24.7
Member aged 45 at accounting date 25.7 25.8
----- End of picture text -----

----- Start of picture text -----
Asset allocation Value at 31 March 2022 Value at
Quoted Unquoted Total 31 March 2021
Equities 67.8% 12.0% 79.8% 79.7%
Property 1.6% 2.4% 4.0% 3.8%
Government bonds 7.4% 0.0% 7.4% 8.3%
Corporate bonds 4.8% 0.0% 4.8% 4.6%
Cash 0.0% 2.9% 2.9% 2.0%
Other 0.0% 1.1% 1.1% 1.6%
Total 81.6% 18.4% 100.0% 100.0%
----- End of picture text -----

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2022 continued

Page 18

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 2022 31 March 2021
(£M) (£M)
Fair value of assets 0.477 0.413
Present value of funded defined benefit obligation 0.785 0.825
Funded status (0.308) (0.412)
Unrecognised asset 0.000 0.000
Asset/(liability) recognised on the balance sheet (0.308) (0.412)
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 2022 31 March 2021
(£M) (£M)
Operating cost
Current service cost 0.042 0.032
Past service cost (inc. curtailments) 0.000 0.000
Settlement cost 0.000 0.000
Financing cost
Interest on net defined benefit liability / (asset) 0.008 0.005
Pension expense recognised in profit and loss 0.050 0.037
Period ending Period ending
Remeasurements in other comprehensive income 31 March 2022 31 March 2021
(£M) (£M)
Return on plan assets (in excess of) / below that recognised in net interest (0.041) (0.070)
Actual (gains)/losses due to changes in financial assumptions (0.101) 0.210
Actual (gains)/losses due to changes in demographic assumptions (0.008) 0.000
Actual (gains)/losses due to liability experience 0.008 (0.003)
Total amount recognised in other comprehensive income (0.142) 0.137
Total amount recognised in profit and loss and other comprehensive income (0.092) 0.174
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 2022 31 March 2021
(£M) (£M)
Opening defined benefit obligation 0.825 0.582
Current service cost 0.042 0.032
Interest expense on defined benefit obligation 0.017 0.013
Contributions by participants 0.005 0.004
Actual (gains)/losses due to changes in financial assumptions (0.101) 0.210
Actual (gains)/losses due to changes in demographic assumptions (0.008) 0.000
Actual (gains)/losses due to liability experience 0.008 (0.003)
Net benefits paid out (0.003) (0.013)
Past service cost (inc. curtailments) 0.000 0.000
Net increase in liabilities from disposals/acquisitions 0.000 0.000
Settlements 0.000 0.000
Closing defined benefit obligation 0.785 0.825
----- End of picture text -----

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2022 continued

Page 19

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 2022 31 March 2021
(£M) (£M)
Opening fair value of assets 0.413 0.332
Interest income on assets 0.009 0.008
Remeasurement (gains)/losses on assets 0.041 0.070
Contributions by the employer 0.012 0.012
Contributions by participants 0.005 0.004
Net benefits paid out (0.003) (0.013)
Net increase in assets from disposals/acquisitions 0.000 0.000
Settlements 0.000 0.000
Closing fair value of assets 0.477 0.413
Period ending Period ending
Actual return on assets 31 March 2022 31 March 2021
(£M) (£M)
Interest income on assets 0.009 0.008
Remeasurement gain/(loss) on assets 0.041 0.070
Actual return on assets 0.050 0.078
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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 2022 set out in Section 1. Comments on these approximate figures are set out in the Covering Report.

Funded Benefits

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Period ending
Analysis of amount charged to profit and loss 31 March 2023
(£M)
Current service cost 0.037
Net interest on net defined benefit liability 0.008
Total estimated pension expense 0.045
Allowance for administration expenses included in Current Service Cost (£M) 0.000
Estimated pensionable payroll over the period (£M) 0.088
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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 2022 and the projected service cost for the period ending 31 March 2023 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

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Discount rate assumption
Adjustment to discount rate +0.1% p.a. Base figure -0.1% p.a.
Present value of total obligation (£M) 0.762 0.785 0.809
% change in present value of total obligation -2.9% 3.0%
Projected service cost (£M) 0.036 0.037 0.038
Approximate % change in projected service cost -3.8% 3.9%
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) 0.791 0.785 0.780
% change in present value of total obligation 0.8% -0.7%
Projected service cost (£M) 0.037 0.037 0.037
Approximate % change in projected service cost 0.0% 0.0%
NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2022 continued
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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

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Adjustment to pension increase rate +0.1% p.a. Base figure -0.1% p.a.
Present value of total obligation (£M) 0.802 0.785 0.768
% change in present value of total obligation 2.2% -2.2%
Projected service cost (£M) 0.038 0.037 0.036
Approximate % change in projected service cost 3.9% -3.8%
Post retirement mortality assumption
Adjustment to mortality age rating assumption * -1 year Base figure +1 year
Present value of total obligation (£M) 0.812 0.785 0.758
% change in present value of total obligation 3.5% -3.4%
Projected service cost (£M) 0.038 0.037 0.036
Approximate % change in projected service cost 3.9% -3.9%
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* 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

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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
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Funded cash-flow data provided

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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 0.005
Employee - Added years contributions 11
Total contributions by participants 0.005
Transfers in 12
Other income 12
Transfers out 12
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 ** 0.003
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
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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 2022 continued

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THE CRAFT CENTRE & DESIGN GALLERY LIMITED

(Company Limited by Guarantee with Charitable Status)

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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 0.006
Annualised pensionable payroll over the accounting period
(£M)
Period ending 31 March 2022 0.084
Period ending 31 March 2021 0.090
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* 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 2022
Unit Price at 31 March 2022
UnitPrice at 31 March 2021
Total known to 31 March 2022
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 2022
Unit Price at 31 March 2022
UnitPrice at 31 March 2021
Total known to 31 March 2022
Total return over the accounting period*
**(£M) ***
AssetValue at 31 March 2022 0.476
Unit Price at 31 March 2022 1.7138
UnitPrice at 31 March 2021 1.5581
Total known to 31 March 2022 10.0%
Total return over the accounting period* 10.9%

*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).

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