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2023-03-31-accounts

THE CRAFT CENTRE & DESIGN GALLERY LIMITED

FINANCIAL ACCOUNTS

FOR THE YEAR ENDED 31 MARCH 2023

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 - 8
Independent Examiner’s Report 9
Statement of Financial Activities 10
Balance Sheet 11
Notes to the Accounts 12 - 21

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 39th Annual Report together with the Financial Statements for the year ended 31 March 2023.

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 2 management members as at 31 March 2023. There were 4 trustees serving during the year:

Councillor Judith Elliot resigned May 2022 Honorary Alderman Bernard P Atha, CBE sadly passed away October 2022 Honorary Alderwoman Lucinda Yeadon (Chairperson) Councillor Kayleigh Brooks (Deputy Chair)

Ex-Officio Member of the Board of Management

Vacant

Honorary Treasurer

Victoria Bradshaw, Chief Officer - Financial Services, Leeds City Council

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 Artistic Director 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 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

FINANCIAL REVIEW

Results for the year

The operation of the charity for the year ended 31 March 2023 has resulted in a deficit of £52,521. This included IAS 19 Pensions costs of £27,000 which have been included within Charitable Activities. Excluding IAS 19 Pensions, the position is a deficit of £25,521 (2022: a total deficit of £57,812; £19,812 excluding IAS19 Pensions costs). The operating reserves, after adding the deficit for the year, are a deficit of £4,234 (2022: reserves of £23,264). Adjusting the accounts for the pension fund asset of £9,000 results in a positive balance of £4,766 (2022: negative balance of £284,736, after a £308,000 pension fund adjustment).

Pension Fund

The International Accounting Standard (IAS) 19 net asset as at 31 March 2023 of £9,000 represents the difference between the value of the Company’s pension fund assets at 31 March 2023 and the estimated present value of the future pension payments to which it was committed at 31 March 2023. These pension assets 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 2023 would also have an impact on the capital value of the pension fund assets.

Disclosure on Going Concern status

The Board has reviewed the charitable company’s financial position and its future outlook, and has concluded that it can no longer be satisfied that the company is a going concern. The financial position is such that, unless there is a significant change in circumstances, the Board is likely to have no realistic alternative but to cease the company’s activities. The accounts have therefore not been prepared on a going concern basis. The Board is currently exploring all options before taking a decision on the future of the charitable company. As no firm decision has yet been taken, the carrying value of assets and liabilities remains in line with the company’s previous accounting policies, which have not been amended.

The company was significantly affected by the impact of the Coronavirus pandemic and, despite being able to access government support, its financial position significantly deteriorated. The 2022/23 financial year has seen no improvement from the 2021/22 financial year. In the new post-pandemic environment, the directors recognise that the company’s financial position is extremely challenging, and that significant action would be needed to modernise and adapt its operating model if it were to continue operating in the future. It is not clear whether the company has the capacity to make such significant changes as would be needed to secure its future.

The company’s level of operational reserves after discounting the impact of pension assets (please see the explanation below) were in deficit at a negative £4,234.

The funds’ surplus of £4,766 is after the addition of a net pension fund asset of £9,000 which represents the extent to which asset held by the West Yorkshire Pension Fund and attributable to the company outweigh the estimated value of its pension liabilities. This net asset is not realisable by the company for any other purpose other than to meet future pension costs. 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 position. If the company ceased to operate, the pension asset of £9,000 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 6 

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. In 2023/24 Councillor Jessica Lennox has been appointed to the board of management. The board of management are exploring all options before taking a decision on the future of the charity / company.

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 of the company of £4,766 is after the addition of a pension fund asset of £9,000. 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 negative reserve of £4,234.

The Board considers that the negative reserve of £4,234 is insufficient to meet its policy objectives and is exploring all options 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.

Page 7 

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 2023 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:

( Councillor Jessica Lennox )

21/12/2023 Date

Registered Office:

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

Page 8 

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 2023 Charity no 513457
10-21

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,

  1. No matter has come to my attention 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. However, in order to enable a proper understanding of the accounts to be reached, attention should be drawn to the fact that the Board has concluded that the accounts should not be prepared on a going concern basis..

Signed:
Name:
Relevant professional
qualification(s) or body:
Address:		 21/12/2023
Suleman Asghar - CPFA
CIPFA - Charted Institute of Public Finance and Accountancy
Civic Hall, Leeds, LS1 1UR

Page 9 

THE CRAFT CENTRE & DESIGN GALLERY LIMITED

(Company Limited by Guarantee with Charitable Status)

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2023

Description Note Unrestricted Total Total
Funds Funds Funds
2023 2023 2022
£ £ £
INCOME
Income and Endowments from:
Investments 3 758 758 26
Income from charitable activities 4 141,875 141,875 138,968
Other 5 640 640 23,583
Total 143,273 143,273 162,577
EXPENDITURE
Expenditure on:
Charitable activities 6 (193,312) (193,312) (218,312)
Other 7 (2,482) (2,482) (2,077)
Total (195,794) (195,794) (220,389)
Net Income / (Expenditure) 14 (52,521) (52,521) (57,812)
OTHER RECOGNISED GAINS/(LOSSES)
Actuarial gains/(losses)on Defined Benefit Pension Scheme 17 348,500 348,500 14,200
Net movement in funds 295,979 295,979 (43,612)
RECONCILIATION OF FUNDS
Total funds brought forward (291,213) (291,213) (247,601)
Total funds carried forward 4,766 4,766 (291,213)
The statement of financial activities includes all gains and losses recognised in the year.
All income expenditure are derived from continuing activities.

Page 10 

THE CRAFT CENTRE & DESIGN GALLERY LIMITED

(Company Limited by Guarantee with Charitable Status)

COMPANY REGISTRATION NUMBER 1685289

BALANCE SHEET AS AT 31 MARCH 2023

BALANCE SHEET AS AT 31 MARCH 2023
Description Note 2023 2022
£ £
FIXED ASSETS
Tangible Assets 9 1,625 2,173
CURRENT ASSETS
Stocks - Goods for Resale 10 405 465
Debtors 11 396 0
Cash at Bank and in Hand 12 85,608 78,104
Total current assets 86,409 78,569
LIABILITIES
Creditors: Amounts Falling Due Within One Year 13 (92,268) (57,478)
Total net current assets or (liabilities) (5,859) 21,091
Net assets or liabilities excluding pension asset or (liability) (4,234) 23,264
Defined benefit scheme asset / (liability) 17 9,000 (308,000)
Net assets or liabilities including pension asset or (liability) 4,766 (284,736)
THE FUNDS OF THE CHARITY
Unrestricted funds 4,766 (284,736)
Total charity funds 4,766 (284,736)

For the year ending 31st March 2023 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

21/12/2023 Date

( Councillor Jessica Lennox )

Page 11 

THE CRAFT CENTRE & DESIGN GALLERY LIMITED

(Company Limited by Guarantee with Charitable Status)

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023

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:

(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 12 

THE CRAFT CENTRE & DESIGN GALLERY LIMITED

(Company Limited by Guarantee with Charitable Status)

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023 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

3. INVESTMENTS
Unrestricted
Funds		 Total Funds Total Funds
2023 2023 2022
£ £ £
Special Interest BearingAccount(SIBA)-Interest in year 758 758 26
Total 758 758 26

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 2023 continued

4. INCOME FROM CHARITABLE ACTIVITIES

Unrestricted
Funds
Total
Funds
Total
Funds
2023
2023
2022
£
£
£
141,875
141,875
138,968
141,875
141,875
138,968
Unrestricted
Funds
Total Funds
Total Funds
2023
2023
2022
£
£
£
640
640
100
0
0
23,383
640
640
23,483
AgencySales - Craft items
Total
5. OTHER
Gift Vouchers expired
Arts Councilgrant and Furlough income
Total
6. CHARITABLE
ACTIVITIES
Direct
Pay
Payments
to Craft
Artists
Direct
Costs
Support costs
Total 2023
Total 2022
£
£
£
£
£
£
Agency Commissions
Operational Costs (53,230)
0
(6,475)
(3,943)
(63,648)
(77,425)
IAS 19 Pensions Costs 0
0
(27,000)
0
(27,000)
(38,000)
Payments to Artists 0
(66,804)
0
0
(66,804)
(65,435)
(53,230)
(66,804)
(33,475)
(3,943)
(157,451)
(180,860)
Exhibitions
Operational Costs (22,179)
0
(265)
(2,508)
(24,952)
(26,908)
Educational/Advisory
Service
Operational Costs (9,404)
0
0
(1,505)
(10,909)
(10,544)
Total (84,813)
(66,804)
(33,740)
(7,956)
(193,312)
(218,312)
Unrestricted
Total
Total
Funds
Funds
Funds
2023
2023
2022
£
£
£
(1,667)
(1,667)
(1,667)
(815)
(815)
(410)
(2,482)
(2,482)
(2,077)
7. OTHER
Independent Examiner’s and Audit fees
IAS 19pension fund valuation fees
Total

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 2023 continued

8. STAFFING
2023 2023 2022
£ £ £
(i)Staff Costs:
Salaries and Wages (78,538) (78,538) (78,772)
Social Security Costs 0 0 3
Pension Costs(see note 17) (10,178) (10,178) (12,025)
Total (88,716) (88,716) (90,794)

No employee earned more than £60,000 per annum.

(ii) The average number of people employed by the Charity during the year was:

(ii)The average number of people employe d by the Chari ty during the year was:
2023
2022
Manager 1
1
Assistants 6
6
Total 7
7
9. FIXED ASSETS
Fixtures & Computer
Total
Fittings
ASSET COST £ £
£
Balance brought forward 52,131 4,995
57,126
Additions 0 0
0
Disposals 0 0
0
Balance carried forward 52,131 4,995
57,126
ACCUMULATED DEPRECIATION
Balance brought forward 51,709 3,244
54,953
Charge for the year 106 442
548
Disposals duringtheyear 0 0
0
Balance carried forward 51,815 3,686
55,501
NET BOOK VALUE
At 31 March 2023 316 1,309
1,625
At 31 March 2022 422 1,751
2,173
10. STOCK
Breakages Bags and
Postcards
Total
£ £
£
Balance brought forward 240 225
465
Additions 135 131
266
Stock sold/used/written off (65) (261)
(326)
Balance carried forward 310 95
405

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 2023 continued

11. DEBTORS 11. DEBTORS
2023 2022
£ £
Trade debtors 396 0
Total 396 0
12. CASH AT BANK AND IN HAND
2023 2022
£ £
Bank Account 85,415 34,976
Credit Cards Holding Account 43 0
Petty Cash Float 150 150
Special Interest BearingAccount (SIBA) 0 42,978
Total 85,608 78,104
13. CREDITORS
2023 2022
£ £
Trade creditors (10,902) (21,716)
Leeds City Council (78,782) (33,673)
VAT (2,584) (2,089)
Total (92,268) (57,478)

14. OTHER NOTABLE ITEMS

The net incoming resources before other recognised gains and losses is arrived at after charging:

The net incoming resources before other recognised gains and losses is arrived at after
charging:
2023
2022
£
£
Independent Examiner and Audit Fees
(1,667)
(1,667)
IAS19 pension fund valuation
(815)
(410)
Depreciation
(547)
(547)

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 (2023 – 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 £78,782 in respect of payments made on its behalf (2022 – £33,672). The charity previously deposited surplus cash balances with Leeds City Council at a commercial rate of interest. The balance of this deposit on 31 March 2023 was £0 (£42,979 at 31 March 2022).

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 2023 continued

16. CAPITAL COMMITMENTS

The charity had no capital commitments in the years ending 31 March 2023 and 2022.

17. PENSIONS

IAS 19 Accounting Results Schedule 31 March 2023

Employer: The Craft Centre and Design Gallery Ltd
Fund: West Yorkshire Pension Fund
FundAdministeringAuthority: City of BradfordMetropolitan District Council
Prepared by: Aon
Preparedfor: City of BradfordMetropolitan District Council

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.

Date of the last full actuarial valuation of the employer's LGPS funded benefits Date of the last full actuarial valuation of the employer's LGPS funded benefits 31 March 2022
Expected employercontributionsnext year(£M) 0.010
Durationof liabilities 26.4years
Key assumptions 31 March 2023
% p.a.		 31 March 2022
% p.a.		 31 March 2021
% p.a.
Discountrate 2.70% 2.70% 2.10%
CPI Inflation 2.80% 2.80% 2.60%
Pension increases 2.80% 2.80% 2.60%
Pension accounts revaluation rate 2.80% 2.80% 2.60%
Salary increases 4.05% 4.05% 3.85%

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.

31 March 2023 31 March 2022
Males
Member aged 65 at accountingdate 21.6 21.8
Member aged 45 at accountingdate 22.9 22.5
Females
Member aged 65 at accountingdate 24.6 24.6
Member aged 45 at accountingdate 25.7 25.7
Asset allocation Value at 31 March 2023 Value at 31 March 2023 Value at
31 March 2022
Quoted Unquoted Total
Equities 66.1% 14.7% 80.8% 79.8%
Property 1.1% 2.2% 3.3% 4.0%
Government bonds 6.9% 0.0% 6.9% 7.4%
Corporate bonds 4.6% 0.0% 4.6% 4.8%
Cash 0.0% 2.3% 2.3% 2.9%
Other 0.0% 2.1% 2.1% 1.1%
Total 78.7% 21.3% 100.0% 100.0%

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 2023 continued

Reconciliation of funded status to balance sheet
Fair value of assets
Present value of funded defined benefit obligation
Funded status
Unrecognised asset
Asset/(liability) recognised on the balance sheet
The split of the liabilities at the last valuation between the various categories of members is
Activemembers
DeferredPensioners
Pensioners
Amounts recognised in profit and loss and other comprehensive income
Operating cost
Current service cost
Past service cost(inc. curtailments)
Settlement cost
Financing cost
Interest on net defined benefit liability/(asset)
Pension expense recognised in profit and loss
Remeasurements in other comprehensive income
Return on plan assets(in excess of)/ below that recognised in net interest
Actual(gains)/losses due to changes in financial assumptions
Actual(gains)/losses due to changes in demographic assumptions
Actual(gains)/losses due to liabilityexperience
Total amount recognised in other comprehensive income
Total amount recognised in profit and loss and other comprehensive income
Allowance for administration expenses included in Current Service Cost(£M)
Changes to the present value of the defined benefit obligation
Opening defined benefit obligation
Current service cost
Interest expense on defined benefit obligation
Contributions byparticipants
Actual(gains)/losses due to changes in financial assumptions
Actual(gains)/losses due to changes in demographic assumptions
Actual(gains)/losses due to liabilityexperience
Net benefits paid out
Past service cost(inc. curtailments)
Net increase in liabilities from disposals/acquisitions
Settlements
Closing defined benefit obligation		 Reconciliation of funded status to balance sheet Value at
31 March 2023
(£M)		 Value at
31 March 2023
(£M)		 Value at
31 March 2022
(£M)
Fair value of assets 0.492 0.477
Present value of funded defined benefit obligation 0.483 0.785
Funded status 0.009 (0.308)
Unrecognised asset 0.000 0.000
Asset/(liability) recognised on the balance sheet 0.009 (0.308)
as follows:
Activemembers 38%
DeferredPensioners 48%
Pensioners 14%
Amounts recognised in profit and loss and other comprehensive income Period ending
31 March 2023
(£M)		 Period ending
31 March 2022
(£M)
Operating cost
Current service cost 0.029 0.042
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 0.008
Pension expense recognised in profit and loss 0.037 0.050
Remeasurements in other comprehensive income Period ending
31 March 2023
(£M)		 Period ending
31 March 2022
(£M)
Return on plan assets(in excess of)/ below that recognised in net interest 0.009 (0.041)
Actual(gains)/losses due to changes in financial assumptions (0.408) (0.101)
Actual(gains)/losses due to changes in demographic assumptions (0.002) (0.008)
Actual(gains)/losses due to liabilityexperience 0.057 0.008
Total amount recognised in other comprehensive income (0.344) (0.142)
Total amount recognised in profit and loss and other comprehensive income (0.307) (0.092)
Allowance for administration expenses included in Current Service Cost(£M) 0.000 0.000
Changes to the present value of the defined benefit obligation Period ending
31 March 2023
(£M)		 Period ending
31 March 2022
(£M)
Opening defined benefit obligation 0.785 0.825
Current service cost 0.029 0.042
Interest expense on defined benefit obligation 0.021 0.017
Contributions byparticipants 0.004 0.005
Actual(gains)/losses due to changes in financial assumptions (0.408) (0.101)
Actual(gains)/losses due to changes in demographic assumptions (0.002) (0.008)
Actual(gains)/losses due to liabilityexperience 0.057 0.008
Net benefits paid out (0.003) (0.003)
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 0.483 0.785

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 2023 continued

Changes to the fair value of assets Period ending
31 March 2023
(£M)		 Period ending
31 March 2022
(£M)
Opening fair value of assets 0.477 0.413
Interest income on assets 0.013 0.009
Remeasurement(gains)/losses on assets (0.009) 0.041
Contributions bythe employer 0.010 0.012
Contributions by participants 0.004 0.005
Net benefitspaid out (0.003) (0.003)
Net increase in assets from disposals/acquisitions 0.000 0.000
Settlements 0.000 0.000
Closing fair value of assets 0.492 0.477
Actual return on assets Period ending
31 March 2023
(£M)		 Period ending
31 March 2022
(£M)
Interest income on assets 0.013 0.009
Remeasurementgain/(loss)on assets (0.009) 0.041
Actual return on assets 0.004 0.050

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 2023 set out in Section 1. Comments on these approximate figures are set out in the Covering Report.

Funded Benefits

unded Benefits
Analysis of amount charged to profit and loss Period ending
31 March 2024
(£M)
Current service cost 0.011
Netinterest on net defined benefitliability (0.001)
Total estimated pension expense 0.010
AllowanceforadministrationexpensesincludedinCurrent Service Cost (£M) 0.000
Estimated pensionable payroll over the period (£M) 0.072

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 2023 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

Discount rate assumption
Adjustment to discount rate		 +0.1% p.a. Base figure -0.1% p.a.
Present value of total obligation (£M) 0.470 0.483 0.496
% changeinpresentvalue oftotalobligation -2.6% 2.7%
Projected service cost (£M) 0.010 0.011 0.012
Approximate % change in projected service cost -5.7% 5.9%
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) 0.484 0.483 0.482
% changeinpresentvalue oftotalobligation 0.2% -0.2%
Projected service cost (£M) 0.011 0.011 0.011
Approximate % change in projected service cost 0.0% 0.0%

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 2023 continued

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023 continued NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023 continued NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023 continued NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023 continued
Rate of increase to pensions in payment and deferred pensions assumption, and rate of revaluation of pension
accounts assumption
Adjustment to pension increase rate +0.1% p.a. Base figure -0.1% p.a.
Present value of total obligation (£M) 0.495 0.483 0.471
% changeinpresentvalue oftotalobligation 2.5% -2.4%
Projected service cost (£M) 0.012 0.011 0.010
Approximate % change in projected service cost 5.9% -5.7%
NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023 continued NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023 continued NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023 continued
Rate of increase to pensions in payment and deferred pensions assumption, and rate of revaluation
accounts assumption		 of pension
Adjustment to pension increase rate +0.1% p.a. Base figure -0.1% p.a.
Present value of total obligation (£M) 0.495 0.483 0.471
% changeinpresentvalue oftotalobligation 2.5% -2.4%
Projected service cost (£M) 0.012 0.011 0.010
Approximate % change in projected service cost 5.9% -5.7%
Post retirement mortality assumption
Adjustment to mortality age rating assumption*		 -1 year Base figure +1 year
Presentvalue oftotalobligation(£M) 0.496 0.483 0.470
% change in present value of total obligation 2.6% -2.6%
Projected service cost (£M) 0.011 0.011 0.011
Approximate % changeinprojected service cost 3.6% -3.6%

* 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 2022

Active members as at 31 March 2022
Number Total Pay (£M)
Total 10 0.087
Pensioner & deferred pensioner members as at 31 March 2022
Type Number Total pension
(£M)
Deferredmembers 3 0.012
Pensioners and dependants 1 0.003

Funded cash-flow data provided

unded cash-flow data provided
Months
Provided		 Amount
Provided (£M)		 Amount Used
(£M)
Employer–Normal contributions 11 0.009
Employer–Additional capital contributions 11
Employer – Earlyretirement strainon fund payments 11
Total contributions by the Employer 0.010
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
Retirement lumpsums 12
Other outgo 12
Death in service lumpsums * 12
Benefitspaid(i.e.pensionpaid) 12 0.003
Net benefitspaid 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' figureincludes anallowanceforexpenses of(£M) 0.000

Any other approximations applied in deriving the "Amount Used" are set out in the Covering Report.

Page 20 

THE CRAFT CENTRE & DESIGN GALLERY LIMITED

(Company Limited by Guarantee with Charitable Status)

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023 continued

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023 continued NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023 continued NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023 continued NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023 continued NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023 continued
National cashflows between employers in the Fund
Amount Provided
(£M)*		 Amount Used
(£M)*
Notional Transfersin 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 2023 0.069
Period ending 31 March 2022 0.084

Calculation of assets at the balance sheet date

Calculation of assets at the balance sheet date
**(£M) ***
Asset Value at 31 March 2023 0.491
Unit Price at 31 March 2023 1.7275
UnitPrice at 31 March 2022 1.7219
Total known to 31 March 2023 0.3%
Total returnsince thevaluationas at31 March 2022* 0.3%

*This return has been used to roll forward the assets notionally allocated to the Employer at the 2022 Valuation.

Information relating to the 2022 triennial valuation of the LGPS scheme
**(£M) ***
Notional assets (£M) 0.480
Notionalassets as a proportionofthewholeFund assets at 31 March 2022(%) 0.00%

Page 21