Lakeland Arts Annual Report and Accounts 2016
Charity Information
Charity Number 1153001 Company Number 8162578 Principal Office Abbot Hall, Kendal, Cumbria, LA9 5AL Trustees Martin Ainscough BSc DL Henry C F Bowring MA JP DL Anthea Case CBE BA FRSA Michael Clarke CBE FRSE Anthony R Collinson Charles Crewdson OBE JP Susan Crewe Sarah Dunning OBE Charlie Gere MA PhD Martyn Heighton MA (Cantab) DEd AMA (to 6 November 2016) John Hudson FREng Sara Keegan Elizabeth (Pit) Rink BSc MPhil Bronwen Riley (from 11 November 2016) Nicholas Thompson (from 20 May 2016) Officers Gordon B Watson BA AMA Bankers Barclays Bank plc, 9 Highgate, Kendal, Cumbria, LA9 4DF Solicitors JWK 5/7 Skipton Street, Morecambe, Lancashire, LA4 4AW Investment Advisors Sarasin & Partners LLP Juxon House, 100 St Paul’s Churchyard London, EC4M 8BU Auditors & Accountants Stables Thompson & Briscoe Lowther House, Lowther Street Kendal, Cumbria, LA9 4DX 2
Contents
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Charity Information
4-5 Introduction 6-23
Trustees’ Annual Report (Including Directors’ Report)
24-25 Independent Audit Report 26 Consolidated Statement of Financial Activities for 2016 27 Consolidated Statement of Financial Activities for 2015 28
Consolidated Balance Sheet
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Statement of Cash Flows
30-50
Notes Forming Part of the Financial Statements
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Image credits
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Introduction to the Lakeland Arts 2016 Annual Report and Accounts 2016 was a very significant year for Lakeland Arts as it featured a particularly strong programme of exhibitions at Abbot Hall Art Gallery, construction of Windermere Jetty reached the point where all the building structures were in place and we started the re-instatement and repair of the areas of Abbot Hall that were flooded in December 2015. We began the year with the final six weeks of the tremendously rich and popular exhibition Canaletto: Celebrating Britain, which opened at Abbot Hall in October 2015. The exhibition was in partnership with Compton Verney and included highly significant loans, particularly from the Royal Collection. Abbot Hall was selected as one of three galleries to be part of The National Gallery Masterpiece Tour to show Rembrandt’s Self Portrait at the Age of 63, and we were delighted to welcome Gabriele Finaldi, Director of the National Gallery to open the display. In the spring we showed Laura Ford: Seen and Unseen at Abbot Hall and Blackwell, the Arts & Crafts House. Visitors particularly enjoyed discovering the larger works outside Blackwell, especially the cat-like creatures of Days of Judgement prowling on the lower terrace. The main summer show at Abbot Hall was Winifred Nicholson in Cumberland which was curated by Jovan Nicholson, art historian and the artist’s grandson, who also wrote the very popular catalogue that accompanied the show. A key theme of the year was developing understanding and interpretation of the Lakeland Arts collections and the buildings that we care for. New research and exhibition on the Annie Garnett archive by Professor David Ingram and Dr Rachel Roberts revealed the significance of her textile designs, the way she used dyes and colours from her garden and how she developed The Spinnery in Bowness. Through the Blackwell Project we created new interpretation so that visitors can discover more about the Arts and Crafts Movement, the architecture of Blackwell and how the Holt family used the house as their holiday home and retreat from Manchester. Chris Keenan’s residency, supported by the Craft Potters Association, resulted in new work in response to Blackwell in his exhibition Houseplace and the very personal installation “stuff i live with; stuff i love”. Displaying Christian Barnes’s A Bathymetric Atlas took the form of a series of very memorable performances in which the pages of the huge, hand-made book were turned to show the hidden contours of the lakes in 4
the Lake District. We welcomed an increasingly diverse audience from local communities and visitors to a broad range of activities in 2016. We continued the Enriched by Moments programme with people living with dementia and their carers and with the support of Equal Arts, we were able to extend this from Kendal to start a new group in Bowness. We developed our family offer during the year with an emphasis through programmes such as Art Camp on taking part in creative activities. The Creative Age Challenge brought school children and older people together in making activities that also supported the dementia programme. We particularly want to acknowledge the dedication of the team who kept Abbot Hall open throughout the year, despite the damage caused to parts of Abbot Hall by the unprecedented flooding in December 2015. The team had to deal with disruption and inadequate staff facilities through the whole of 2016, as we had to close the lower ground floor and relocate the café and other facilities outside while the building fabric dried out and we started the essential repairs and flood resilience measures. The support of the Heritage Lottery Fund, Regional Growth Fund and many trusts, foundations and individual donors enabled Lakeland Arts to appoint the main contractor for Windermere Jetty, Museum of Boats, Steam and Stories in 2015. By the end of 2016 it was possible to appreciate the quality and scale of the Museum and how the designs by Carmody Groarke architects will enable visitors to see the internationally important collection of boats in the context of the lake and surrounding Lake District fells. Windermere Jetty is on a stunning site and the building structures both frame the views and create the spaces for visitors to see boats in the Exhibition, the Conservation Workshop and on water in the Boathouse. Construction, though, is taking longer than planned and we look forward to opening Windermere Jetty in 2018 and welcoming new audiences to come and enjoy the Museum and experience going out on the lake in a heritage boat or with Windermere Lake Cruises. As we move towards the sixtieth anniversary of the foundation of Lakeland Arts in 1957 and of the opening of Abbot Hall in 1962, we want to record that so much of the success of the trust is based on the support of our Benefactors, Patrons and Friends and that over the past nearly sixty years many hundreds of individual donors have contributed to Lakeland
Arts. Your support has never been more important than currently as we complete Windermere Jetty at a cost of over ÂŁ16 million and plan investment to restore Abbot Hall and make it more welcoming and better equipped to show major exhibitions and support a wide range of learning and community activities.
Your gift could make a huge contribution to the future of Lakeland Arts and local communities. Thank you for your continuing support for Lakeland Arts
The continuing grants from Arts Council England and South Lakeland District Council, and the support of trusts and foundations, including annual support from the Sir John Fisher Foundation and the Lakeland Arts Support Trust, enables Lakeland Arts to develop and plan future programmes with confidence.
Martin Ainscough Chair of Trustees
One way that you can support us is by remembering Lakeland Arts in your will and leaving a legacy to support the future of Lakeland Arts and continuing care and development of the historic buildings and outstanding collections that are such an important part of the heritage and vitality of Cumbria and the North West.
Gordon Watson Chief Executive
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Trustees’ Annual Report (Including Directors’ Report) The trustees are pleased to present their report together with the audited financial statements of the charitable company for the year ended 31 December 2016. The trustees have adopted the provisions of the Statement of Recommended Practice (SORP) “Accounting and Reporting by Charities” (FRS 102) in preparing the annual report and financial statements of the charitable company and its subsidiaries.
1. Objectives and Activities The principal objects of the charitable company are a. the advancement of the arts, culture, heritage or science and for the conservation of the environment and heritage of Cumbria and North Lancashire, including by: the establishment and maintenance of public art galleries and museums for the benefit of the public to include the care, management and display of the permanent collections of the trust established by declaration of trust dated 9 August 1957 and subsequently amended by multiple deeds of variation and now known as ‘The Lakeland Arts Trust’ and any other collections, groupings, displays or individual items from any other body; b. such other public charitable purposes tending to advance artistic, historical or intellectual interests in the said area which can conveniently be promoted in combination with the purpose aforesaid; and c. such other charitable objects as the company shall from time to time determine. The trustees confirm that they have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the charitable company’s aims and objectives and in planning future activities.
In July 2001 Blackwell, The Arts & Crafts House was opened, a Grade 1 Listed building, in a stunning position above Lake Windermere, looking across to the Coniston Fells. Designed by MH Baillie Scott and completed in 1900, this is one of the most important Arts and Crafts houses in the UK with a national reputation for its programme of exhibiting historic and contemporary crafts. The charitable company is also responsible for Windermere Jetty, Museum of Boats, Steam and Stories which has a collection of steamboats, motor boats, yachts and rowing boats described as “the most important and coherent collection of watercraft generic to one location in existence worldwide”. The charitable company is developing a new world-class museum and tourist attraction designed by Carmody Groarke architects and this is due to open in 2018 as Windermere Jetty, Museum of Boats, Steam and Stories. The charitable company raises funds through retail and catering outlets at Abbot Hall and Blackwell, which are operated through a wholly owned trading subsidiary, Lakeland Arts Enterprises Ltd. Further details of these activities are set out in note 5 of the accounts. All activities were transferred as a going concern from Lakeland Arts Trust and as of 1 August 2013 were carried out by the charitable company, which has a January to December financial reporting year. Lakeland Arts has a Strategic Plan 2014-18 to deliver the charity’s objectives and the charitable company’s five strategic priorities: 1. Deliver excellent artistic, heritage, learning and engagement programmes of national and international significance. 2. Create rewarding experiences for all our visitors and users.
Abbot Hall was opened as an art gallery in September 1962, and has since built up an outstanding art collection and created one of the strongest exhibition programmes outside London.
3. Ensure the resilience and sustainability of Lakeland Arts and support Cumbria’s economy.
In 1971 Museum of Lakeland Life & Industry was opened in the coach house and stable block at Abbot Hall and developed an important and extensive collection relating to the social and industrial history of the Lake District and Kendal.
5. Involve all in arts and heritage in new and inspiring ways and contribute to the development of local communities.
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4. Invest in our staff and develop Lakeland Arts through inspirational leadership and management.
2. Achievements and Performance Exhibitions and Temporary Displays Abbot Hall Art Gallery ••
Canaletto: Celebrating Britain 22 October 2015 - 14 February 2016
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The National Gallery Masterpiece Tour: Rembrandt, Self Portrait at the Age of 63 19 March - 15 May 2016
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The Changing Face of Lady Anne Clifford 19 March - 15 May 2016
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Laura Ford: Seen & Unseen 11 March - 25 June 2016
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London Legacy: Auerbach, Andrews and Freud 25 May - 19 October 2016
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Winifred Nicholson in Cumberland 8 July - 15 October 2016
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People on Paper: Works from the Arts Council Collection 29 October - 17 December 2016
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Paul Jenkins 29 October - 17 December 2016
It was a great privilege to be chosen to take part in the National Gallery Masterpiece Tour to show Rembrandt’s magnificent Self Portrait at the Age of 63. The Masterpiece Tour is part of the National Gallery’s commitment to promote the understanding, knowledge and appreciation of Old Master paintings to as wide an audience as possible. We showed the work in a dedicated gallery and visitors enjoyed the opportunity to spend time with such a wonderful and important painting. At the same time we showed works from our own collection including portraits of Lady Anne Clifford who was alive at the same time as Rembrandt. We showed an extraordinary exhibition of work by sculptor, Laura Ford at Abbot Hall Art Gallery and Blackwell, The Arts & Crafts House where larger works were located on Blackwell’s lawns, with select pieces in the main house. At Abbot Hall, the show comprised Ford’s earlier work together with new sculptures and her drawings.
We started the year by continuing the exhibition of Canaletto’s British paintings of 1746-55. The exhibition was in partnership with Compton Verney and The Holburne Museum and we were very grateful for the support of the Royal Collection and for loans from the British Museum, Compton Verney and Dulwich Picture Gallery and private owners.
Canaletto showcased not just traditional or established views and landmarks but also his (and his patrons’) specific celebration of new British architecture and, by implication, the recent achievements of the British nation. This was the only showing of this new exhibition in the North and it proved to be a very popular show.
Laura Ford’s imaginative creations explore aspects of the human condition. She describes her work as sculptures dressed as people who are dressed as animals as they meld together ideas of childhood memory with a disturbing edge. Five years after the death of Lucian Freud, one of Britain’s greatest figure painters, we showed the display centred on three works acquired from the collection of Freud and presented to Lakeland Arts through HM Government’s Acceptance in Lieu scheme. Two of the works are by Freud’s great friend, Frank Auerbach. These are characteristically energetic drawings of the artist’s wife, Julia, executed with his usual intensity and vigour. Uniquely, one of them is still tacked to the drawing board. Freud liked it this way and had it framed with pins and board intact. A third work acquired from the Freud collection is a beautiful study of a nude, painted by Michael Andrews. The summer exhibition explored the creativity of Winifred Nicholson (1893–1981) viewed through the paintings that she made in Cumbria (or Cumberland as it was until 1972) where she lived for large parts of her life. The show included over 40
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paintings, including many works from private collections and some of her best loved paintings. The exhibition was curated exclusively for Abbot Hall by art historian Jovan Nicholson, the grandson of the artist, and drew on new research, including previously unseen archival material. Lakeland Arts published the full colour catalogue of the exhibition.
Artists have been drawing the figure for centuries, from carefully composed life drawings to people caught unaware at leisure or work. People on Paper brought together some of the finest examples from the Arts Council Collection and had drawings by fifty artists including Charles Avery, Frank Auerbach, Martin Bloch, Peter Blake, John Braby, John Craxton, Peter de Francia, Lucian Freud, Antony Gormley, Alistair Gray, Barbara Hepworth, David Hockney, Howard Hodgkin, Gwen John, Leon Kossoff, Richard Hamilton, L S Lowry, Henry Moore, Eduardo Paolozzi, William Roberts, William Scott, Walter Sickert, Stanley Spencer and Euan Uglow. The exhibition of the internationally acclaimed American artist Paul Jenkins (1923-2012) focused on a specially chosen group of canvases including large-scale works and the compelling and mysterious black and red Oracle triptych. Paul Jenkins is as much identified with the process of controlled paint-pouring and canvas manipulation as with the gemlike veils of transparent and translucent colour which have defined his work since the late 1950s and which gained him prominence in New York and Europe. The exhibition was in association with the Redfern Gallery, London. Blackwell, The Arts & Crafts House ••
John Harden Artist of Leisure 19 September 2015 – 28 February 2016
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The Baillie Scott Folio: House for an Art Lover 23 October 2015 – 11 May 2016
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Fifty Shades of White 15 January - 28 February 2016
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Laura Ford: Seen & Unseen 11 March - 4 September 2016
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Nicola Jarvis Studio Presents: The Art of Embroidery 26 May - 8 September 2016
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Houseplace: Chris Keenan 29 July - 9 October 2016
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Chris Keenan: “stuff i live with; stuff i love 29 July - 4 September 2016
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A Bathymetric Atlas of The English Lake District 10 - 17 September 2016
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Spinning the Colours of Lakeland: Annie Garnett’s Spinnery, Textiles and Garden 24 September 2016 - 29 January 2017
From Japanese Shino glazes to the purest Chinese porcelain, white has always held a peculiarly tricky allure for artists and craft makers. The Fifty Shades of White display brought together a selection of vessels and ceramics from Lakeland Arts’ collections, including modern makers from around the world, such as Taiwanese potter Chun Liao, Danish ceramicists Bodil Manz and Inger Rokkjaer, London-based Japanese maker Nao Matsunaga, and master potter Edmund de Waal. Chris Keenan is a nationally and internationally recognised potter known for his distinctive porcelain pots with their combinations of tenmoku and celadon glazes. Houseplace and “stuff i live with; stuff i love” were the result of Keenan’s residency at Blackwell at the start of 2016.
For this installation, Keenan applied William Morris’s dictum “have nothing in your house that you do not know to be useful, or believe to be beautiful” - and presented a selection of his personal “stuff” which, from being looked at, handled, and used, makes his domestic life better. In a series of ceramic installations, Keenan explored and responded to ‘this extraordinary and mind-consuming house and the man behind its creation.’ The installations were thoughtfully placed by Keenan throughout Blackwell echoing areas of design and landscape which Keenan drew inspiration from. An accompanying trail was produced for visitors.
The ambitious show of Laura Ford’s sculptures was spread across Abbot Hall and Blackwell and expanded on its previous incarnation in Horace Walpole’s fabulously gloomy gothic interiors at Strawberry Hill. Key works from all periods of Ford’s career occupied the period spaces inside, while outside at Blackwell Ford’s cats paced anxiously on the lower lawn, the down-and-out urban cousins of some of Beatrix Potter’s bestloved characters took up residence in the courtyard, and two girls were frozen in the moment of their silent sorrows on the south lawn.
and managed The Spinnery in Windermere, which produced beautiful textiles using traditional methods. This exhibition showcased the treasures of the Annie Garnett Archive, held at Museum of Lakeland Life & Industry, and told Annie’s story through her own possessions and words. Rare autochromes, photographs, diary entries, personal objects and textiles combine to give a real sense of Annie Garnett and The Spinnery. The show was co-curated with Professor David Ingram. Museum of Lakeland Life & Industry ••
Yards of Industry: The Working Life of Kendal’s Yards 13 February - 3 September 2017
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Joseph Hardman: People on Film 17 September - 17 December 2017
The yards of Kendal are a unique part of the town’s history, once bustling patches of life and industry they still shape the distinctive feel of the town today. This display looked at the history of these unique spaces, what it was like to live and work in the yards and how they got their distinctive names. This display showed many objects from the industries that flourished in the yards. Joseph Hardman was a prolific photographer who captured an image of Lakeland life between the 1930s and the 1960s. Museum of Lakeland Life & Industry holds over 5000 of his original glass slides. This show brought together some of these images to examine an aspect of Hardman’s work that is often overlooked, his use of people as subjects. Hardman is more famous for his stunning landscapes or the work of shepherds, but people from all walks of life played an important role in his photographs.
This exhibition was originally conceived by Stephen Feeke, Director of the New Art Centre, Roche Court, for Strawberry Hill House, and was reconfigured with additional content selected by Lakeland Arts in close collaboration with the artist. Conceived and devised by artist Christian Barnes, A Bathymetric Atlas, is a huge and unique hand-made book, revealing the hidden contours of the principal lakes in the Lake District. The work was shown, for the first time in Cumbria at Blackwell. Its pristine white pages were turned by volunteers, three times a day, during the exhibition, creating a performance that revealed the layers and contours. Annie Garnett (1864-1942) was a formidable designer, gardener and entrepreneur whose textiles influenced the revival of hand spinning and weaving in the Lake District. She had a keen sense of colour inspired by the flowers in her garden and landscape of the Lake District. She established
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Collections and Displays Acquisitions Acquisitions in 2016 to the permanent collections held by Lakeland Arts Trust were: Fine Art •• Frank Auerbach, Reclining Head of Julia, 1994 (through the Government’s Acceptance in Lieu Scheme) ••
Bardy Crewdson, Portrait of Mary Burkett
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Nicholas Volley, Jerome Street with Snow, 2005 (gift via the ArtFund)
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Nicholas Volley, Black Jug and Bust of Carl (gift via the ArtFund)
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Nicholas Volley, Tea Time (gift via the ArtFund)
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Paul Jenkins, Phenomena Lasting Glade
Decorative Art •• Chris Keenan, ceramic tile inspired by the Blackwell visitor book. ••
Laura Ford, In Remembrance, 1998
Social History •• Knitted blanket ••
National Service Uniform from the 1950s
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A bristle hand brush
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Ephemera relating to Ibis Engineering
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17 photographs of the Lake District from the 1950s
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Tin trunk from Howards Orphan Home in Kendal
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Paraffin iron
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Two Cumberland wrestling belts
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Herdwick wool skirt and jacket
Windermere Jetty •• Thomas West, A Guide to the Lakes, 5th edition, 1793 ••
Shepherd’s boat builder’s costings notebook, 19161945
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LMS Handbill, Steamer Services, 1941
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Ephemera relating to the Windermere Ferry
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Woodworking tools
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Unpublished letter dating from 1945 from author Arthur Ransome to a local man. In it he describes his love of sailing, and a boat he had built at Arnside in 1934, almost certainly Coch-y-Bonddhu, which will be on display in the new Museum.
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Loans In The following items were generously loaned for display at Blackwell, The Arts and Crafts house: ••
Pilkington’s Tile and Pottery Company, 11 earthenware vases, c.1900. On loan from the Peter Scott Gallery, Lancaster University
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MH Baillie Scott, clock, c.1900. On loan from the Victoria and Albert Museum.
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Morris and Co. original embroidery design, Celandine and Lily. On loan from the William Morris Society
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Morris and Co. original wallpaper design, Grafton. On loan from the William Morris Society
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Morris and Co. daisy tile and diagonal leaf tile. On loan from the William Morris Gallery.
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Embroidered linen coverlet, c.1900-1920. On loan from Gawthorpe Textiles
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Bedspread. On loan from Paul Reeves
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MH Baillie Scott, drop leaf table, c.1900. On loan from Paul Reeves Antiques
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MH Baillie Scott, leather top writing table. On loan from Paul Reeves Antiques
These items were loaned for future display at Windermere Jetty: ••
Wooden model boat building parts. On loan from a private collection.
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3 sailing dinghies (Swallow One and Two, and Amazon) from the 2016 film Swallows and Amazons. On loan from Harbour Pictures Productions.
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Pop up poster from the 2016 Swallows and Amazons film. On loan from a private collection.
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Original shipbuilder’s model of the steam yacht Britannia. On loan from Glasgow Life.
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Painting of the ‘King of the Lake’ Col. Ridehalgh. On loan from the National Trust.
Stanley Spencer: Of Angels and Dirt The Hepworth Wakefield: 25 June to 5 October 2016 •• Stanley Spencer, Portrait of Daphne Charlton, 1941
Collection Loans Out
LGBT History in Cumbria Tullie House Museum & Art Gallery: 10-31 October 2016 •• Percy Kelly, Millom, Cumberland, 1975
We lent works to a number of exhibitions in 2016.
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Spotlight Gallery Exhibition Tullie House Museum and Art Gallery: 7 November 2015 to 7 February 2016 •• Joseph Francis Gilbert, Ullswater Head, Cumberland, 1834.
Winifred Nicholson: Liberation of Colour Middlesbrough Institute of Modern Art: 21 October 2016 to 12 February 2017 •• Winifred Nicholson, Amaryllis, 1967
Barbara Hepworth: Sculpture for a Modern World Tate Britain, London: 24 June 2015 – 25 October 2015 Kröller-Müller Museum, Otterlo: 27 November 2015 – 17 April 2016 Arp Museum, Remagen: 22 May 2016 – 28 August 2016 •• Ben Nicholson, 1932 (crowned head – the queen), 1932 The English Rose Feminine Beauty from Van Dyck to Sargent The Bowes Museum: 14 May to 25 September 2016 •• George Romney, Emma Hart as Miranda
Percy Kelly, Whitehaven Harbour, 1977
Joan Eardley: A Sense of Place Scottish National Gallery of Modern Art: 3 December 2016 to 31 May 2017 •• Joan Eardley, Salmon Nets 1, 1961 ••
Joan Eardley, Children and Chalked Wall 2, 1963
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Joan Eardley, The Cornfield, 1962
Accreditation Abbot Hall Art Gallery, Museum of Lakeland Life & Industry and Blackwell, The Arts & Crafts House are Accredited museums. In August Lakeland Arts submitted Accreditation Returns to renew Accreditation and we are due to know the outcome in 2017.
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Learning and Community Engagement Lakeland Arts provides high quality activities including creative workshops for all ages throughout the year. We ran activities at each half term across all three sites. This included new activities at Blackwell, The Arts & Crafts House for example in May children at Blackwell made stop motion films inspired by the Laura Ford sculpture exhibition. The Education Room was a hive of activity with 40 films made over the course of the week. Art Camp ran from 25 -29 July with 15 local children. Children experienced the sites and art and heritage at Abbot Hall Art Gallery and Blackwell and our Cumbria Museum Consortium Partners at The Wordsworth Trust and Tullie House Museum and Art Gallery. Children engaged in creative activity across four sites and achieved an Arts Award Discover by the end of the week. Three young people (aged between 16-18) volunteered with Lakeland Arts for Art Camp and two of them achieved Arts Award Gold. On day four of Art Camp the children met ceramic artist Chris Keenan who gave a tour of his installation and discussed how Blackwell had inspired him. On the last day of Art Camp, the children mounted an exhibition of their own art work in the Lakeland Arts Barn at Abbot Hall; Chris Keenan opened the exhibition. We staged an ambitious summer holiday programme across Abbot Hall and Blackwell from 18 July – 2 September. It involved a textile artist working with members of the
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community to create two giant rag-rugs. Over 450 people took part in the activity and the textile artist posted regular images and messages on Lakeland Arts’ social media platforms. The finished rugs will go on show at the new Windermere Jetty, Museum of Boats, Steam and Stories. In October, we ran a drawing and colouring competition at Blackwell as part of Big Draw. We received 55 submissions by visitors ranging from ages 3 to 90+. The illustrator, Sophie Martin, selected winners in under and over 16 categories and provided feedback for all entries on our family Facebook page. At Abbot Hall, we commissioned a freelance artist to transform the lower split level gallery into an artist’s studio and learning resource space that links to the exhibition programme. Lakeland Arts worked strategically in 2016 with local teachers and Heritage Learning Lancashire to develop and refine new schools programmes that align with the National Curriculum and support teachers in the delivery of this in schools. Dementia Programme – In the Moment Lakeland Art’s Learning and Engagement team have continued to deliver quality engagement activities in all Lakeland Arts venues and around Kendal to support people living with dementia. In 2016 we expanded this work to include intergenerational activity and fundraising linked to the sustainability of the In the Moment programme. Participants took part in two national Creative Age Challenge fundraising initiatives. The first Creative Age Challenge transformed
Space2Create’s building walls into a garden made of flowers created by participants and local school children; the garden was a visual symbol of the possibility of living well with dementia. Four local schools supported the Creative Age Challenge, with children generating £500 sponsorship for In the Moment participants. The second Creative Age Challenge took place throughout October. The central tenet of activity was to raise awareness about the positive impact that creative activity can have on people living with dementia and to help fundraise to sustain the creative and cultural engagement work of In the Moment. It was very strongly intergenerational. Local people knitted and crocheted sheep and donated them anonymously to the Hand Made Herd of Sheep. Over 450 people were involved in making 700 sheep and raising over £1200 to support people living with dementia and their carers. The initiative featured on BBC North West Tonight. Lakeland Arts’ Learning Officer, Anne-Marie Quinn, who led the initiative received a Fellowship of the Royal Society of Arts for what they describe as her ‘visionary work’ in using the arts to support people living with dementia. In September, the Learning and Engagement team delivered sessions for Lakeland Arts’ staff to raise awareness of the work the organisation delivers to enrich the lives of people living with dementia, how it affects a wide range of people and how they can become advocates for the Enriched by Moments programme. This was part of Lakeland Arts becoming a dementia friendly organisation. Museums at Night Blackwell hosted a dance for families as part of the national Museums at Night initiative in May. The event engaged a new and diverse audience with 40 people in attendance plus a 5-piece folk band that played in the inglenook in the Main Hall. Children ranged from under 3 to 12 years old and the feedback was tremendous - the event was praised for “bringing people from the community together.” Windermere Jetty, Museum of Boats, Steam & Stories
on our plans for family provision at Windermere Jetty. For Heritage Open Day we organised site tours at the Windermere Jetty site. 145 people came to visit the site and were shown the construction work and had a talk in the Conservation Workshop about the boat conservation.
Volunteers Volunteers make an invaluable contribution to Lakeland Arts by giving time and expertise to support the work that we do, from mounting exhibitions to restoring boats. Many people come in regularly to help with caring for the collections, completing tasks such as recording and marking objects and researching them. The research develops understanding of the collections their significance which is then included in new displays and exhibitions. In 2016, this resulted in the exhibition at Blackwell: Spinning the Colours of Lakeland: Annie Garnett’s Spinnery, Textiles and Garden and will result in 2017 in a new publication on Annie Garnett by Professor David Ingram and Dr Rachel Roberts. It is a delight to see the skilled work that volunteers put into the restoration and care of the historic boats that are being prepared for display at Windermere Jetty. This has included drawing and making new engineering parts for the steam boats and completing the restoration of the original engine for the Chris Craft motor boat Jane. Volunteer invigilators contributed well over 3,000 hours at Abbot Hall which enabled us to show exhibitions and works of art of national and international significance. This wouldn’t have been possible without such tremendous support. Another group of volunteers gave talks at the Gallery and led guided tours of Blackwell. Volunteers helped with activity and learning programmes including holiday activities. Volunteers played a major role in making the Creative Age Challenge so successful. Local people knitted and crocheted sheep and donated them anonymously to the Hand Made Herd at Museum of Lakeland Life & Industry.
The Esperance Programme is a range of projects aimed at engaging schools with Windermere Jetty, the collection and the building construction. Each project aimed to have a tangible outcome that can be used or displayed at the Museum when it opens. Each group had the opportunity to work with a partner, whether that was an artist or our own Conservation Boat Building team. During 2016 we worked with six primary and secondary schools across six projects. The Jetty on Tour programme in the school holidays allowed us to engage with families and tell them about the Museum, the family programmes that will be on offer and get feedback
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Development Windermere Jetty, Museum of Boats, Steam and Stories Thomas Armstrong continued with construction throughout 2016 following their formal appointment in October 2015. By the end of the year, the building structures were all in place and work had begun on walls and roofs. A number of construction related issues were raised during the year which resulted in delays to the construction and opening programme. The Learning team continued to develop the learning and engagement programme that will be delivered when the Museum opens. Pilot programmes included the highly successful Esperance Project working with six schools across the area. Conservation work to the collection in preparation for the Museum opening continued throughout 2016 with significant work being undertaken to SL Osprey, SL Branksome and MV Jane in addition to many of the smaller boats that will go on display in the new museum. Eleven of the 23 boats going on static display were cleaned and prepared for exhibition in 2016: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11.
Miss Windermere IV Cookie White Lady II Borwick’s Skiff Canfly Kittiwake Chris Applebee’s Hydroplane 1898 Motorboat Margaret Sunderland Float Dolly
Some objects were sent away for specialist conservation, including the painted glass from the skylight which is the only surviving part of the steam yacht Britannia. Objects returned from conservation, included fragile leather work and the 1960’s diving suit worn by one of Dolly’s salvage team when the boat was lifted from Ullswater. The main areas of work in 2016 on SL Osprey (1902) were varnishing and painting, making the engine and boiler covers, fabricating engineering parts and installing equipment to enable the boat to be operated on the lake after the Museum opens. One set back was finding that the boiler needed repairs and these were started in 2016.
in the bottom and lower parts of the boat. Repairs were completed on the starboard side and progressed on the port side, where the damage was less severe. A new stem was installed and work started on the varnishing of the cabin and other areas, with the aim of keeping the original patina as far as possible. MV Jane, an evocative 1930s motor boat, was repaired and painted. The engine was fully restored by a volunteer. The Blackwell Project: An Arts & Crafts Story The Blackwell Project is generously supported by the Heritage Lottery Fund and a number of trust, foundations and individual donors. In 2016, we completed the Arts and Crafts permanent exhibition telling the story of the Arts and Crafts movement. This was designed by Studio SP, Edinburgh and installed for Easter. The exhibition features beautiful objects on loan from the Victoria and Albert Museum, William Morris Society, William Morris Gallery and private lenders and collectors. Work progressed on the recreation of a Arts and Crafts Master Bedroom, in the room that was originally the Master Bedroom when the Holts occupied the House. Decoration of the room was based on original paint scrapings and featured paint from companies which Baillie Scott had used in his career. The room featured a hand stenciled frieze based on the Rowan tree and berries by Baillie Scott. Two new loans of furniture by Baillie Scott were placed in the room alongside a commissioned recreation of a bed by Baillie Scott in oak. Additions for 2017 include an embroidered bed spread. Other developments included:•• A timeline detailing the history of Blackwell, the Holts and Baillie Scott’s career in the entrance at Blackwell. ••
New learning resources and interpretation to accompany the Arts and Crafts Master Bedroom. The dressing room off the master bedroom now has dressing up costume linked to the clothes and activities that the Holt Family enjoyed when they owned the house.
••
A new orientation map and children’s trail.
••
New drawings of Blackwell in the Tea Room to better illustrate what is in the house to encourage tea room patrons to visit the house.
••
A room dedicated to the period when Blackwell was a school, including oral history recordings of pupils remembering their time at Blackwell and the head teacher Miss Murphy.
SL Branksome will be displayed in the dry dock in the Museum. When the panelling and seats were removed, we observed significant areas of decay and poor historical repairs 15
Commercial Activities Lakeland Arts Enterprises is Lakeland Arts’ wholly owned trading subsidiary and all the net income supports the activities of the charity.
the Museum a better visitor experience. We went for a local theme and sourced all the furniture, crockery and equipment locally within Kendal (many items were kindly donated by Friends of Lakeland Arts) the Tea Room kitchen at Blackwell provided the Fat Cat Café with homebakes, cakes and mini quiches.
Retail We introduced a number of new makers to the Blackwell Craft Shop, which we carefully selected including from the British Craft Trade Fair in Harrogate. New makers in 2016 included Julie Fewster, Elin Isaksson and Penny Withers. Glassware in the Blackwell Shop sold particularly well including many key pieces. Biggest sellers in the Blackwell Shop were the Blackwell Guide Book, Blackwell Mug, Stained Glass Greeting Card and Postcard of Stained Glass in the Dining Room. These helped us maintain healthy sales during 2016. To mark the success and reputation of the Blackwell Craft Shop we were awarded the Hudsons Highly Commended Retail award for 2016. The Art Wall in the Abbot Hall Shop continued to be a great place in 2016 to find original affordable art. The Winfred Nicholson catalogues sold well throughout the exhibition. A small re-print was done towards the end of the exhibition and the catalogue has also been bought by people not being able to come to the exhibition and we sent out over 150 catalogues via mail-order. Online sales of Joseph Hardman’s evocative photographs of the Lake District helped boost sales at Museum of Lakeland Life & Industry shop. We also introduced new books, greetings cards, giftware and fabric makers products. In spring 2016 the visitor route in the Museum was changed and visitors now enter the museum where the shop is and they exit in the glass entrance lobby. We have moved the large printing press from the entrance lobby and replaced it with newly decorated plinths displaying a variety of shop stock to encourage visitors to enter the shop once they have finished their visit. Catering Overall, the Blackwell Tea Room had a steady year throughout 2016 and showed an increase in visitor numbers. The Tea Room has an established group of local customers that come regularly for lunch or afternoon tea. Blackwell Tea Room hosted a number of special celebration events in 2016 including Valentine’s Day lunches on 13 and 14 February, Afternoon Tea for Mothering Sunday, and Christmas lunches. We sold 203 Christmas lunches in 2016, an increase of over 50% on the previous years. At Abbot Hall, flooding in 2015 resulted in the loss of our permanent Coffee Shop throughout 2016. In June, the Fat Cat Café popped up at the Abbot Hall and Museum site. The café was a temporary facility to offer the visitors to Abbot Hall and 16
Marketing and Communication 2016 marked a year of change for Lakeland Arts marketing approach. We reviewed our marketing and communications approach and developed a new Lakeland Arts Marketing Strategy, revised our print and marketing materials, and recruited a new marketing team for 2017. As well as excellent local and regional press and media coverage in 2016, Lakeland Arts received national coverage for Laura Ford in Art Quarterly Spring 2016, Guardian Guide, and I (Independent). Winifred Nicholson was featured in Historic House Magazine Autumn 2016 and Galleries Magazine November 2016. People on Paper received coverage in Art Quarterly Autumn 2016 and Artist and Illustrators October 2016. Other media coverage included on BBC Radio 2 Arts “Bacon to Rego” and Sunday Times “Great British Breaks” including Blackwell, The Arts & Crafts House in September 2016. Lakeland Arts continues to work with Cumbria Life as a Media Partner. Our audience insight grew further as we worked with Audience Finder and received detailed data for 2015-16 for each of the sites. Insight includes demographic data, reason for visit, awareness of the venues, accommodation, visitor experience and membership. This information has been utilised in the development of the Lakeland Arts Marketing Strategy. We invested in organisation wide training in the Customer Relationship Management system in 2016, so all colleagues have access to live data on audience and trends. This supports efficient use of resources, and enables us to communicate with contacts digitally rather than solely by print.
Fundraising Lakeland Arts raises around 40% of its income from a range of voluntary sources. These include public funders, trusts and foundations, individuals and corporate giving. Support from these sources is vital to enable us to undertake all our activities, conserve and care for our Grade 1 listed buildings, develop and care for the permanent collections, promote excellent world-class art and heritage, and offer learning and engagement programmes that benefit and involve local communities.
Benefactors Mr and Mrs T Ambler Mr and Mrs J Campbell Mr and Mrs T J R Harding Dr and Mrs A C I Naylor Mr T P Naylor Mr and Mrs J Rink Dr J P L Welch Patrons
In 2016 Lakeland Arts raised £735,133 of voluntary income through donations, grants and sponsorship. Our Patrons and Benefactors are extremely important to us as key supporters, raising a total of £25,340 in 2016, and our Friends membership continued to grow during 2016 to around 1,800 members. Our core activity was supported by the Sir John Fisher Foundation, South Lakeland District Council, the Lakeland Arts Support Trust, and Kendal Town Council. Together, these funders make up a significant proportion of our voluntary income. Unrestricted core funding was received through Arts Council England’s Major Partner Museum Programme as Lakeland Arts is a member of the Cumbria Museum Consortium, working in partnership with the Wordsworth Trust and Tullie House Museum and Gallery Trust. Lakeland Arts also received core funding as an Arts Council England National Portfolio Organisation. Our 2016 exhibition programme received a good range of support from charitable trusts and corporate supporters. This included Sanlam Private Wealth and Armstrong Watson. Brewin Dolphin continue as significant Corporate Patrons of Lakeland Arts. In 2016, we continued the fundraising campaign to deliver the Windermere Jetty capital project. We continued the Jetty Appeal, offering donors a chance to have their name inscribed on the main jetty. We also completed raising funds for the Windermere Jetty Endowment Fund, with the incentive of matched £1 for £1 funding made possible through the Heritage Lottery Fund’s Catalyst Endowment Initiative. Lakeland Arts was grateful to receive significant legacies in 2016, particularly from the late Mary Burkett’s Scottish Provident Trust and from the estate of the late Ruan Peregrine James Galloway McWilliam for the Blackwell Project. A full list of voluntary income received by Lakeland Arts is included in note 4 to the accounts.
Mr Martin Ainscough Mr and Mrs C H Bagot Mr O Barratt MBE and Mrs V Barratt Mr and Mrs D Case Lord and Lady Cavendish Mr J E Coward Mr C Crewdson OBE and Mrs V Crewdson Sir James Cropper KCVO Mr and Mrs W Dufton Mr J Entwistle Mr A Firth Mrs B A Fletcher Mr and Mrs D Goeritz Mr R Hassell-McCosh Ms J Holland Mr P Kessler MBE and Miss D Rose QC Susan, Lady Kimber Mr and Mrs J Lee Mrs D Matthews JP Mr J S Nicoll and Ms L Colchester Mr T Parker Mr C Sanderson OBE JP Mr and Mrs A Scott Mr and Mrs E Thomas Mrs S Thornely DL Mr J Townson Dr T Tuohy Mr and Mrs G M Wallace Mr and Mrs P M White Ms J Wood Mr C Woodhouse CVO and Mrs M Woodhouse Mr N Woodhouse Corporate Patrons Brewin Dolphin And all those who wish to remain anonymous
Lakeland Arts would like to thank for their ongoing support all of the individuals and organisations mentioned, the Patrons and Benefactors and those who wish to remain anonymous. 17
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3. Structure, Governance and Management Lakeland Arts (the charitable company) is a company limited by guarantee and is also a registered charity. The charitable company was set up as part of an exercise to modernise the constitution of a separate charity, Lakeland Arts Trust, which is an unincorporated trust, constituted under a trust deed dated 19 August 1957 and is a registered charity, number 526980. Lakeland Arts Trust was formed to save Abbot Hall, an important mid eighteenth century Grade 1 Listed house on the banks of the River Kent in Kendal, and to convert it into an Art Gallery. The charitable company is governed by its Memorandum and Articles of Association and has similar objectives to Lakeland Arts Trust. As of 1 August 2013 the charitable company replaced the Trust as the operator of the various venues for use by the public and took over the redevelopment of Windermere Jetty. The funds, assets and liabilities of Lakeland Arts Trust were transferred to the charitable company. Lakeland Arts Trust continues to hold the Blackwell Endowment which is a permanent endowment, and the collections which are loaned to the charitable company. The directors of the charitable company are its trustees for the purposes of charity law. The Board of Trustees of up to fifteen members, but not less than six, meets regularly and administers the charitable company. The trustees are elected by the Board of Trustees at the Annual General Meeting in accordance with the Articles of Association. The trustees who have served during the year and since the year end are shown in the Charity Information on page 2.
Related parties The charitable company has a close relationship with the following: ••
Lakeland Arts Trust. The charitable company is the sole corporate Trustee of Lakeland Arts Trust;
••
Lakeland Arts Enterprises Limited. This is the wholly owned trading subsidiary of the charitable company. These two entities together with Lakeland Arts make up the group for the purposes of these consolidated accounts.
••
Lakeland Arts Support Trust, a charity formed in 1998 for the purpose of generating income to provide financial support for the charitable company at its Abbot Hall site in Kendal;
••
South Lakeland District Council, which owns the Abbot Hall building - SLDC also makes an annual grant towards the charitable company’s costs.
Risk management All significant activities undertaken are subject to a risk review as part of the initial project assessment and implementation. Major risks are identified and ranked in terms of their potential impact and likelihood. Major risks, for this purpose, are those that may have a significant effect on: ••
Operational performance, including risks to staff, volunteers and visitors;
••
Achievement of aims and objectives; or
••
Meeting the expectations of beneficiaries or supporters.
At their meetings, the trustees agree the broad strategy, policy and areas of activity for the charitable company, including consideration of financial policy, reserves and risk management policies and performance. Trustees also decide the level of pay for key management personnel taking into account appropriate benchmarks. A disclosure in relation to remuneration and expenses of key management personnel is included in note 20 to the accounts. The Board of Trustees appoints Investment Managers, currently Sarasin & Partners LLP, who are responsible for implementing the overall investment policy.
The trustees review these risks on an ongoing basis and satisfy themselves that adequate systems and procedures are in place to manage the risks identified. Where appropriate, risks are covered by insurance. The following framework is central to ensuring adequate risk management:
The trustees keep the skill requirements for the trustee body under review. New trustees are appointed only where they have the necessary skills to contribute to the charitable company’s work and development. The induction process for any newly appointed Trustee comprises an initial meeting with the trustees, followed by a series of meetings with the Chairman and senior staff on powers and responsibilities of the trustees, the aims and objectives of the charitable company, the forward programme of work, the staffing and organisation of the charitable company.
••
Regular monitoring of major risks and development of disaster recovery plans;
••
Embedding risk identification and assessment within operating procedures;
••
A clear structure of delegated authority and control; and
••
Maintaining reserves in line with set policies.
In assessing risk the trustees recognise that some areas of work require the acceptance and management of risk if key objectives are to be achieved. The trustees have reviewed the major risks to which the charitable company is exposed and identified control and mitigation procedures, under the headings of: ••
Governance;
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••
Operational;
••
Financial;
••
Environmental; and
••
Compliance.
trustees for the endowment funds is to provide a balanced return from a broad spread of medium risk investments, and for general funds to provide a higher income from a spread of lower risk investments. The investment policy is implemented by professional investment managers Sarasin & Partners LLP.
4. Financial Review
Reserves
Financial Review (including reserves policy)
The balance in the unrestricted reserves of the charitable company at the end of the year was £574,606 before the pension past deficit provision of £477,585 (2015: £631,486).
The Consolidated Statement of Financial Activities shows total income of £7,825,344 an increase of 145% compared with 2015. This included unrestricted funds totalling £1,747,967 (2015 £1,379,548); restricted funds totalling £5,895,372 (2015 £1,684,576) and restricted endowment funds totalling £182,005 (2015 £120,713). There was a 1% decrease in income from admission charges. Both Abbot Hall Art Gallery and Museum of Lakeland Life & Industry had successful years given the challenges presented by the flooding and ticket sales were in line with predicted levels. Blackwell, The Arts & Crafts House unfortunately had fewer visitors than anticipated during the year. Income includes voluntary income of £5,855,552 (2015 £1,632,818) for the Windermere Jetty Project. Details of funding and donations for the project as well as a details of all voluntary income are included in note 4 to the accounts. The trading subsidiary Lakeland Arts Enterprises Ltd contributed £16,806 to the consolidated result, a decrease of 36% compared with 2015. This was primarily because of the impact of flooding which forced the closure of the Coffee House at Abbot Hall until mid-year, when it was replaced by temporary facilities, and the reduction in the number of visitors to Blackwell. Total resources expended were £2,243,163, an increase of £346,234 (18%) compared with 2015. Included is £437,581 of expenditure in relation to the Windermere Jetty Project (2015 £293,677). The market value of portfolio investments rose by £114,953 during the year regaining more than the drop in value of £33,714 last year. The Net Movement of Funds for the year showed an increase £5,657,686 which is essentially attributable to an increase in the amount of restricted funds held for Windermere Jetty, investment losses and an operating loss of £28,263 before pension liability fluctuations for the year. Investments and Investment Policy The charitable company has the power to make investments that it sees fit. The investment policy determined by the 20
The restricted reserves of the charitable company comprise: Windermere Jetty asset in the course of construction: £7,990,615 (2015: £1,612,432) Windermere Jetty capital project funds: £1,185,783 (2015: £2,195,475) Other restricted funds (detailed in note 18 to the accounts): £114,137 (2015 £30,053) The endowment funds of the charitable company comprise: General endowment funds £683,946 (2015 £662,848) Windermere Jetty endowment funds £309,805 (2015 £127,800) Lakeland Arts Trust Blackwell endowment funds (£1,084,949) (2015 £1,015,228) The main features of the charitable company’s reserves policy are as follows: ••
the need for reserves will vary depending on the charitable company’s financial position and continuous assessment of the many risks the charitable company faces at a particular time;
••
the reserves will be assessed as part of the charitable company’s mid-range planning process and the need to build reserves will also be taken into account in the annual planning and budgeting process;
••
reserves exist either to provide short term protection against downward fluctuations in annual revenues or capital receipts – or to provide long term strategic financial support and development;
••
the reserves policy balances the need to build up long term reserves against the need for short term spending on core activities; and
••
the charitable company seeks to ensure that every new acquisition is fully funded through the establishment of a separate endowment or other restricted fund, if necessary, and hence will not need to be supported by the general fund.
5. Plans for Future Periods Lakeland Arts has planned an exciting and wide ranging programme in 2017 of exhibitions, displays, learning and community engagement. We will complete re-instatement works at Abbot Hall to bring the areas of the building back into use that were damaged by unprecedented flooding in December 2015. The contractor is due to complete the buildings for Windermere Jetty Museum of Boats, Steam and Stories in 2017, so we can open the new world-class heritage attraction in 2018. The first exhibition of the year at Abbot Hall Art Gallery will be George Shaw, My Back to Nature. This will celebrate Shaw’s two-year residency as Associate Artist at the National Gallery, London and we are delighted that this will be the first showing of the exhibition outside the National Gallery. At the same time, we will be displaying three important historical works from the National Gallery’s collection. The paintings by Pierro del Pollaiuolo, Nicolas Poussin and John Constable each inspired Shaw’s residency and the work he created over the period. In April, we will open the exhibition at Abbot Hall of work by Julian Cooper: Paintings from 1970-2017. The exhibition will mark Cooper’s 70th birthday. It will comprise of over 30 monumental paintings, acting as powerful distillation of his extensive output from 1970 to the present day. The diversity of scale and subject matter in the show will reflect
the artist’s own travels – from the fells and mountains of the Lake District and Cumbria, to work inspired by his trips to South America, the Alps, the Himalayas, and the quarries of Tasmania and Carrara. Lakeland Arts will publish a catalogue with the exhibition with essays by Andrew Lambirth and Amy Concannon. The exhibition will be supported by Rathbones Investment Management and mounted with the assistance of Art Space Gallery. The summer show at Abbot Hall Art Gallery will be Painting Pop. Focused on the period around 1962, the year Abbot Hall opened, the exhibition will feature works from national collections by artists including Peter Blake, Richard Hamilton, Adrian Henri and Allen Jones. Alongside Painting Pop we will display David Hockney’s: A Rake’s Progress (1961-1963). This will present the entire series of etchings by Hockney, made in response to his first trip to New York in 1961. Lakeland Arts is pleased to be working with The Ingram Collection in preparation for the autumn 2017 exhibition at Abbot Hall Art Gallery. This unique private collection of Modern British and Contemporary Art is the vision of media entrepreneur and philanthropist Chris Ingram who started collecting in 2002. It includes work by the major artists of the twentieth century, and explores the work of emerging artists. Lakeland Arts is planning two new exhibitions at Blackwell in 2017. The first will be Griet Beyaert and Paul Miller The Light Within and bring together fine glass sculpture and
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digital technology. It will include an installation in the Oliver Thompson Gallery with sounds and film of Blackwell created by Miller projected onto Beyaert’s glass. The second exhibition is Women of the Arts & Crafts Movement, which will explore leading designers and makers of the period. Also in 2017, we will complete the Master Bedroom as part of the Blackwell Project to show the room as Baillie Scott would have envisaged it with his designs for the frieze, bed, bedspread and other furniture and furnishings.
6. Trustees’ Responsibilities
Lakeland Arts invested in 2016 in improvements at Museum of Lakeland Life & Industry including enlarging the space for temporary exhibitions. We will show Fun on the Fells from March, looking at the history and stories of walking and climbing in the Lake District.
Company law requires the trustees to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees are required to:
Our Learning and Engagement programmes in 2017 will take inspiration from the collections and historic buildings. They will be planned to support work with local communities and schools and to encourage families and new visitors to participate in a wide range of activities during the year. This will include exploratory light installations at Blackwell during the spring and a celebration of Swallows and Amazons, linking to the newly released film, in the summer.
The trustees (who are also directors of Lakeland Arts for the purposes of company law) are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
••
select suitable accounting policies and then apply them consistently;
••
observe the methods and principles in the Charities SORP 2015 (FRS 102);
••
make judgements and estimates that are reasonable and prudent;
Our partnership with Equal Arts will enable Lakeland Arts to extend to Blackwell the Enriched by Moments programme with people living with dementia, which we started at Abbot Hall in 2014. We will complete the Esperance Project which has involved secondary and primary schools in the development of Windermere Jetty.
••
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
••
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation.
Lakeland Arts employed Cruden Property Services as contractor to do the repair and re-instatement works at Abbot Hall, including measures to make the lower part of the building more flood resilient. The work progressed well in 2016 and we aim to complete the re-instatement by May 2017. It will be a very welcome position to be in when we re-open the café and other visitor facilities that have been closed since the flooding in December 2015.
The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Construction of Windermere Jetty Museum of Boats, Steam and Stories, undertaken by Thomas Armstrong (Construction) Ltd, took longer than planned in 2016 and the revised date for completing the buildings is summer 2017. Lakeland Arts will then manage the fit out including moving the boats into the exhibition space and on the water in the Boathouse and setting up the Conservation Workshop where visitors will see the skilled team of staff and volunteers conserving and maintaining historic vessels. We aim to open the new worldclass Museum in spring 2018.
The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
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7. Disclosure of Information to the Auditors We, the directors of the company who held office at the date of approval of these Financial Statements as set out above each confirm, so far as we are aware, that: ••
there is no relevant audit information of which the company’s auditors are unaware; and
••
we have taken all the steps that we ought to have taken as directors in order to make ourselves aware of any relevant audit information and to establish that the company’s auditors are aware of that information.
In approving the Trustees’ Annual Report, we also approve the Directors’ Report included therein, in our capacity as company directors. On behalf of the board
Charles W N Crewdson Trustee and Hon Treasurer
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Independent Audit Report Independent Auditor’s Report to the members and trustees of Lakeland Arts We have audited the financial statements of Lakeland Arts for the year ended 31 December 2016, which comprise the Consolidated Statements of Financial Activities (including the Income and Expenditure Account), the Consolidated and Parent (Charity) Balance Sheet, the Consolidated Statement of Cashflows and the related notes. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) including FRS 102 ‘‘The Financial Reporting Standard applicable in the UK and Republic of Ireland”. This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and to the charitable company’s trustees, as a body, in accordance with regulations made under section 154 of the Charities Act 2011. Our audit work has been undertaken so that we might state to the charitable company’s members and its trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body and its trustees as a body, for our audit work, for this report, or for the opinions we have formed. Respective responsibilities of trustees and auditors As explained more fully in the Trustees Responsibilities Statement, the trustees (who are also the Directors of the charitable company for the purpose of company law) are responsible for the preparation of financial statements and for being satisfied that they give a true and fair view. We have been appointed auditor under the Companies Act 2006 and section 151 of the Charities Act 2011 and to report in accordance with those Acts. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board’s (APB’s) Ethical Standards for Auditors.
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Scope of the audit of the financial statements An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the group’s and the parent charitable company’s circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the trustees; and the overall presentation of the financial statements. In addition, we read all the financial and nonfinancial information in the Trustees’ Annual Report to identify material inconsistencies with the audited financial statements and to identify any information that is apparently materially incorrect based on, or materially inconsistent with, the knowledge acquired by us in the course of performing the audit. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report. Opinion on financial statements In our opinion the financial statements: ••
give a true and fair view of the state of the group’s and the parent charitable company’s affairs as at 31 December 2016, and of the group’s incoming resources and application of resources, including its income and expenditure, for the year then ended;
••
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice;
••
have been properly prepared in accordance with the Companies Act 2006 and the Charities Act 2011.
••
the parent charitable company has not kept adequate and sufficient accounting records; or
••
the parent charitable company financial statements are not in agreement with the accounting records or returns; or
••
certain disclosures of trustees’ remuneration specified by law are not made; or
••
we have not received all the information and explanations we require for our audit.
••
the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies exemption in preparing the directors’ report and take advantage of the small companies exemption from the requirement to prepare a strategic report.
Helen Holmes FCA, BSc (Senior Statutory Auditor) For and on behalf of Stables Thompson & Briscoe Statutory Auditor and Chartered Accountants Lowther House Lowther Street Kendal LA9 4DX Stables Thompson & Briscoe is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006.
Opinion on other matter prescribed by the Companies Act 2006 In our opinion based on the work undertaken in the course of the audit: ••
the information given in the Trustees’ Annual Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
••
the Trustees Annual Report has been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception We have nothing to report in respect of the following matters where the Companies Act 2006 and the Charities Act 2011 requires us to report to you if, in our opinion:
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Consolidated Statement of Financial Activities (Including Income and Expenditure Account) For the Year Ended 31 December 2016
Notes
Unrestricted Funds
Restricted Funds
Restricted Endowment Funds £
Total Funds
Total Funds 2015
£
£
£
£
735,133
644,150
182,005
5,855,552
1,632,818
400,209
400,209
404,317
10,219
10,219
6,799
Income and endowments from: Donations and legacies
4
Windermere Jetty Capital Project
4
Incoming resources from charitable activities: Admission charges
547,901
187,232 5,673,547
Learning income Income from other trading activities Commercial trading operations
5
359,660
359,660
349,937
Commission on sale or return items
5
36,707
36,707
44,985
Investment income
6
26,159
60,752
66,675
Other income
7
367,112
367,112
35,156
7,825,344
3,184,837
52,988
52,988
49,008
374,761
374,761
368,839
Total
1,747,967
34,593
5,895,372
182,005
8 Expenditure on: Raising funds Fundraising trading; Commercial trading operations Expenditure on charitable activities: Operating Museums & Art Gallery
1,143,150
137,741
1,280,891
1,097,550
Windermere Jetty Capital Project
132,524
305,057
437,581
293,677
96,942
87,855
Other expenditure Total Net income/(expenditure) before investment gains/ (losses) Gains/losses on investment assests Net income/expenditure
96,942 1,800,365
442,798
0
2,243,163
1,896,929
(52,398)
5,452,574
182,005
5,582,181
1,287,908
90,818
114,953
(33,714)
272,823
5,697,134
1,254,194
(39,448)
10,988
24,135 (28,263)
5,452,574
Other recognised gains/(losses) Actuarial gains/(losses) on defined benefit pension schemes
(39,448)
Net movement of funds
(67,711)
5,452,574
272,823
5,657,686
1,265,182
Fund balances as at 1st January 2016 (as restated)
164,732
3,837,961
1,805,876
5,808,569
4,543,387
Net movement in funds as above
(67,711)
5,452,574
272,823
5,657,686
1,265,182
97,021
9,290,535
2,078,699
11,466,255
5,808,569
Reconciliation of funds
Fund balances at 31 December 2016
26
Consolidated Statement of Financial Activities (Including Income and Expenditure Account) For the Period Ended 31 December 2015 Notes
Unrestricted Funds
Restricted Funds
£
£
Restricted Endowment Funds £
Total Funds
£
Income and endowments from: Donations and legacies
5
505,882
138,268
0
644,150
Windermere Jetty Capital Project
5
0
1,512,105
120,713
1,632,818
404,317
0
0
404,317
6,799
0
0
6,799
349,937
0
0
349,937
Incoming resources from charitable activities: Admission charges Learning income Income from other trading activities Commercial trading operations
6 6
44,985
0
0
44,985
Investment income
7
32,472
34,203
0
66,675
Other income
8
35,156
0
0
35,156
1,379,548
1,684,576
120,713
3,184,837
Commission on sale or return items
Total Expenditure on: Raising funds Fundraising trading; Commercial trading operations
9 37,775
11,233
0
49,008
368,839
0
0
368,839
890,458
207,092
0
1,097,550
43,001
250,676
Expenditure on charitable activities: Operating Museums & Art Gallery Windermere Jetty Capital Project Other expenditure Total Net income/(expenditure) before investment gains/(losses) Gains/losses on investment assests Net income/expenditure
87,855
0
293,677
0
87,855
1,427,928
469,001
0
1,896,929
(48,380)
1,215,575
120,713
1,287,908
(3,988)
0
(29,726)
(33,714)
(52,368)
1,215,575
90,987
1,254,194
10,988
0
(41,380)
1,215,575
90,987
Other recognised gains/(losses) Actuarial gains/(losses) on defined benefit pension schemes Net movement of funds
10,988 1,265,182
Reconciliation of funds Fund balances as at 1st January 2015
481,275
1,608,828
692,465
2,782,568
Proir year adjustments reported in 2015
230,429
1,013,558
1,438
1,245,435
(505,592)
0
1,020,986
515,394
Prior year adjustment - consolidation of Lakeland Arts Trust Fund balances as at 1st January 2015 as adjusted
206,112
2,622,386
1,714,889
4,543,387
Net movement in funds as above
(41,380)
1,215,575
90,987
1,265,182
Fund balances at 31st December 2015
164,732
3,837,961
1,805,876
5,808,569
27
Consolidated Balance Sheet As at 31 December 2016
Notes Consolidated 2016
Consolidated 2015
Charity 2016
Charity 2015
£
£
£
£
Fixed assests Tangible assests
10
259,556
238,463
259,556
238,463
Asset under construction
11
7,990,616
1,612,432
7,990,616
1,612,432
Investments
14
2,156,577
2,041,624
1,071,630
1,020,398
10,406,749
3,892,519
9,321,802
2,877,293
Total fixed assets Current assests
36,639
34,329
-
-
1,081,927
747,724
1,109,806
762,560
Cash at bank and in hand
1,507,075
1,872,858
1,484,951
1,862,519
Total current assets
2,625,641
2,654,911
2,594,757
2,625,079
1,088,550
272,107
1,071,668
256,275
1,537,091
2,382,804
1,523,089
2,368,804
11,943,840
6,275,323
10,844,891
5,246,097
(477,585)
(466,754)
-
-
11,466,255
5,808,569
10,844,891
5,246,097
574,606
631,486
560,605
617,488
(477,585)
(466,754)
-
-
Stocks
5
Debtors
15
Liabilities Creditors: Amounts falling due within one year
16
Net current assets Net assets excluding pension liability Pension scheme liability
17
Net assests including pension scheme liability The funds of the charity Unrestricted funds
18
Pension scheme deficit Restricted Funds Endowment Fund
18
2,078,699
1,805,876
993,751
790,648
Other restricted funds
18
9,290,535
3,837,961
9,290,535
3,837,961
19
11,466,255
5,808,569
10,844,891
5,246,097
Total charity funds
Approved by the Trusees and signed on their behalf on 27 September 2017 by Charles W N Crewdson, Trustee and Hon. Treasurer The notes on the following pages form part of these financial statements Registered company number 8162578 Registered charity number 1153001 28
Statement of Cash Flows As at 31 December 2016
Notes
Total Funds 2016
Total Funds 2015
ÂŁ
ÂŁ
5,993,281
717,136
60,752
66,675
Cash flows from operating activities: Net cash provided by (used in) operating activities Cash flows from investing activites: Dividends, interest and rents from investments Proceeds from the sale of property, plant and equipment Purchase of property, plant and equipment
-
-
(6,419,814)
(607,473)
Proceeds from sale of investments
-
-
Purchase of investments
-
-
(6,359,062)
(540,798)
Net cash provided by (used in) investing activities Cash flows from financing activities: Repayments of borrowing
-
-
Cash inflows from new borrowing
-
-
Receipt of endowment
-
-
Net cash provided by (used in) financing activities
-
-
Change in cash and cash equivalents in the reporting period Cash and cash equivalents at the beginning of the reporting period
(365,781)
176,338
1,872,858
1,696,520
-
-
1,507,075
1,872,858
5,582,181
1,287,908
20,537
2,103
Dividends, interest and rents from investments
(60,752)
(66,675)
Release of past pension cost liability
(28,617)
(27,850)
Change in cash and cash equivalents due to exchange rate movements Cash and cash equivalents at the end of the reporting period Reconciliation of net income/(expenditure) to net cash flow from operating activities Net income/(expenditure) for the reporting period (as per the statement of financial activities) Adjustments for: Depreciation charges
(Increase)/decrease in stocks (Increase)/decrease in debtors
(2,310)
576
(334,201)
(495,457)
816,443
16,531
5,993,281
717,136
1,507,075
1,872,858
Notice deposits (less than 3 months)
-
-
Overdraft facility repayable on demand
-
-
1,507,075
1,872,858
Increase in creditors Net cash provided by (used in) operating activities Analysis of cash and cash equivalents Cash in hand
Total cash and cash equivalents
29
Notes Forming Part of the Financial Statements 1. Accounting Policies The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows: a) Basis of accounts preparation Lakeland Arts is a charitable company limited by guarantee incorporated in the United Kingdom. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity. The address of the registered office is given in the charity information page of these financial statements. The nature of the charity’s operations and principal activities are as an arts and heritage organisation caring for and running Abbot Hall Art Gallery and Museum of Lakeland Life & Industry in Kendal, Blackwell, The Arts & Crafts House, and the new Windermere Jetty, Museum of Boats, Steam and Stories in Bownesson-Windermere. The charity constitutes a public benefit entity as defined by FRS 102. The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued on 16 July 2014, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011, the Companies Act 2006 and UK Generally Accepted Practice as it applies from 1 January 2015. The financial statements are prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The financial statements are prepared in sterling which is the functional currency of the charity and rounded to the nearest £. The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated. b) Preparation of the accounts on a going concern basis The charity is delivering a new world-class heritage attraction, Windermere Jetty, Museum of Boats, Steam and Stories. As a result of unforeseen delays in construction work, the Museum is now due to open in Spring 2018, following completion of construction in 2017. This is a substantial capital project, with a total cost of over £16m. Successful fundraising has covered most of the cost, but there is a shortfall which the charity is addressing. The charity’s Capital Completion Fundraising Strategy will build on the fundraising success achieved to date to meet the required target and bridge any funding gap. The charity’s reserves are in line with strategy. On this basis, it is believed that the charity is a going concern. c) Group financial statements The financial statements consolidate the results of the charitable company and its wholly owned subsidiary, Lakeland Arts Enterprises Limited, together with Lakeland Arts Trust for which it acts as sole trustee, on a line by line basis. A separate statement of financial activities, or income and expenditure account are not presented for the charitable company itself following the exemption afforded by section 408 of the Companies Act 2006. The charity itself made an overall surplus in the year of £5,598,794 (2015 - £1,229,102). d) Income Income is shown within 5 main categories in the Consolidated Statement of Financial Activities:
30
Income and endowments Income from donations and grants, including capital grants, is included in incoming resources when these are receivable, except as follows: i.
when donors specify that donations and grants given to the charitable company must be used in future accounting periods the income is deferred until these periods; or
ii.
when donors impose conditions which have to be fulfilled before the charitable company becomes entitled to use such income, the income is deferred and not included in incoming resources until the pre-conditions for use have been met.
When donors specify that donations and grants, including capital grants, are for particular restricted purposes, which do not amount to pre-conditions regarding entitlement, this income is included in incoming resources of restricted funds when receivable. Income from charitable activities Income from Charitable trading activities through Abbot Hall Art Gallery, Blackwell, The Arts & Crafts House and Museum of Lakeland Life & Industry (including admission, learning and Friends of Lakeland Arts memberships), is included in incoming resources in the period for which it is receivable. Income from other trading activities Income from commercial trading activities, including retail and catering and commission on sale or return items through retail outlets. This income is primarily the income of the trading subsidiary Lakeland Arts Enterprises Ltd and is recorded on a receivable basis. Income from investments Income receivable on restricted endowment funds which itself is not restricted. Other income Income from parking, room hires and other sources, including income in anticipation of an insurance claim in 2015. The claim relates to flooding which affected many parts of the locality in December 2015. Lakeland Arts suffered significant business interruption to all venues during December and into 2016 and 2017 due to a reduction in the number of visitors to the area. The catering premises at Abbot Hall flooded and were forced to close, but reopened in temporary facilities mid-year. Costs were also incurred in moving the collections off-site whilst work is undertaken to create a suitable on-site storage facility above the flood level. The total value of the insurance claim is unknown at this stage and only the value of costs incurred up to 31 December 2016 are included in these accounts. Further information on other income is given under note 7 (Other Income). Gifts in kind Gifts in kind donated for resale are included at fair value, being the expected proceeds from sale less the expected costs of sale. Where estimating the fair value is practicable upon receipt it is recognised in stock and ‘Income from other trading activities’. Upon sale, the value of the stock is charged against ‘Income from other trading activities’ and the proceeds are recognised as ‘Income from other trading activities’. Where it is impracticable to fair value the items due to the volume of low value items they are not recognised in the financial statements until they are sold. This income is recognised within ‘Income from other trading activities’. Fixed asset gifts in kind are recognised when receivable and are included at fair value. They are not deferred over the life of the asset. Donated heritage assets are recognised in the Heritage Asset note but are not otherwise recognised in the Statement of Financial Activities (SOFA) in line with the policy on Heritage Assets.
31
e) Expenditure Expenditure is included in the Consolidated Statement of Financial Activities on an accruals basis, inclusive of any VAT which cannot be recovered. All costs are defined in 4 specific categories: ••
Raising funds
••
Fundraising trading
••
Charitable activities
••
Other
f) Support costs allocation Support costs are those that assist the work of the charity but do not directly represent charitable activities and include office costs, governance costs and administrative payroll costs. They are incurred directly in support of expenditure on the objects of the charity and include project management and professional fees. Where support costs cannot be directly attributed to particular headings they have been allocated to cost of raising funds and expenditure on charitable activities on a basis consistent with use of the resources. Fundraising costs are those incurred in seeking voluntary contributions and do not include the costs of disseminating information in support of the charitable activities. The analysis of these costs is included in note 8. g) Tangible fixed assets Tangible fixed assets costing more than £5,000 are capitalised and included at cost including any incidental expenses of acquisition (with the exception of heritage assets see note 2). Depreciation is provided on all tangible fixed assets at rates calculated to write off the cost on a straight line basis over their expected useful economic lives as follows: ••
Plant, equipment and fittings: over 4 years
Lakeland Arts owns the former Kendal Grammar School (constructed 1588) which is part of the Abbot Hall site. The building is currently divided into 2 parts; no 9 Church Walk is a residential property acquired in 2011 and held as part of the investment portfolio and no 11 Church Walk, also residential which has been in the ownership of Lakeland Arts for many years and is currently used as storage. The latter portion was valued last year and included in the accounts as a freehold property. The property is stated in the accounts at market value. Revaluation will take place every 5 years. h) Asset in the course of construction Windermere Jetty, Museum of Boats, Steam and Stories An asset under construction at the former site of the Windermere Steamboat Museum. The Museum, designed by Carmody Groarke Architects, will open in 2018 and will house a nationally important collection of steamboats and other vessels known as the Steamboat Museum Collection (detailed in note 13). Details of progress on the project are included in the Trustees Report. i) Stock Stock consists of purchased goods for resale and is included at the lower of cost or net realisable value. j) Investments Investments are stated at market value at the balance sheet date, except for property which is revalued on a regular basis and includes: ••
18 Peppercorn Lane, valued at £125,000
••
9 Church Walk, valued at £230,000
Revaluation took place during 2015. The Consolidated Statement of Financial Activities includes the net gains and losses arising on revaluations and disposals throughout the period.
32
2. Assets and Liabilities not Recognised in the Financial Statements Lakeland Arts’ primary purpose is to establish a public art gallery and museum for the town of Kendal and surrounding areas, and to advance artistic and historic interests in the area. In this connection the charitable company has a long leasehold interest, at a peppercorn rent, in listed buildings at Abbot Hall, of which the Art Gallery itself is listed at Grade 1. The buildings house a valuable collection of works of art and museum exhibits. The charitable company also has a freehold interest in the Grade 1 Listed Arts and Crafts House at Blackwell – a property of unique historic importance near Bowness-on-Windermere, with a limited collection of archive material, objects and furniture. These historic properties are inalienable heritage assets in the sense that it is a fundamental part of the charitable company’s purpose to hold and preserve them permanently, and Lakeland Arts is effectively prohibited from disposing of them for any other purpose, not only by the terms of its governing documents, but also by external considerations including the terms of leases, conditions applied by funding bodies and planning consents. These properties are not assets in the normal sense of the word, because under the irrevocable terms of their present use they have no market value. To provide a market value based on an impermissible change of use would be misleading. The Trustees consider that the buildings are heritage assets and the charitable company does not, therefore, represent them on the Balance Sheet. Further information on Lakeland Arts’ heritage assets is given under notes 12 (Financial Summary of Heritage Asset Transactions) and 13 (Further Information on the Charitable Company’s Heritage Assets), in accordance with the terms of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) ‘18. Accounting for heritage assets’. 3. Funds Funds held by the charitable company are either: Unrestricted funds – including unrestricted general funds; these funds which can be used in accordance with the charitable objects at the discretion of the Trustees. Restricted funds – these are funds that can only be used for particular restricted purposes within the objects of the charitable company. Restriction arises when specified by the donor or when funds are raised for particular purposes. Restricted endowment funds – these are non-permanent endowment funds, the income from which contributes to the operating expenses of Lakeland Arts. The assets of the funds are represented by Investments (see note 14). Movements on funds during 2016 are given under note 18.
33
4. Voluntary Income During 2015 the charitable company generated voluntary income through grants, donations and sponsorship. Unrestricted core funding and other grants/donations/sponsorship received for specific purposes (restricted) are summarised below: 2016 2016 2016 £ £ £ Unrestricted Restricted Restricted General Endowment Funds Funds Funds Arts Council England MPM
291,714
Arts Council England NPO
120,696
Arts Council Flood Grant Lakeland Arts Support Trust
62,534
38,760 28,155
Benefactors and Patrons
25,340
2015 £ Restricted Funds
2015 £ Total
291,714
290,344
0
0
290,344
120,696
116,754
0
0
116,754
0
0
48,497
48,497
62,534 46,162
46,162
Grants & Donations - Blackwell Project (listed below) The Estate of the late Mary Burkett
2016 2015 2015 £ £ £ Total Unrestricted Restricted General Endowment Funds Funds
38,760
0
0
3,149
3,149
28,155
0
0
0
0
25,340
36,091
0
0
36,091
The Sir John Fisher Foundation
25,000
25,000
0
0
25,000
25,000
Creative Age Project; In the Moment
24,203
24,203
20,000
20,000 7,667
6,333
0
0
6,333
7,500
7,500
0
0
0
0
South Lakeland District Council
20,000
20,000
Cumbria Community Foundation John Ellerman Foundation
7,667
Cumbria County Council Sanlam Private Wealth Other donations including Gift Aid
2,658
0 20,000
0
0
20,000 0
6,000
6,000
0
0
5,500
5,500
1,100
3,758
2,310
0
3,664
5,974
D Tune
2,000
2,000
1,000
0
0
1,000
Estate of Anne Speight
2,000
2,000
0
0
0
0
1,750
0
0
0
0
1,000
1,000
1,000
0
0
1,000
509
509
0
0
3,333
3,333
Armstrong Watson Kendal Town Council Tullie House Museum & Art Gallery
1,750
AH Flood donations
385
385
0
The Estate of the late Eric Michael Bottomley
0
30,000
0
0
30,000
The Estate of the late Gloria Patricia Henrietta Smith
0
0
0
20,000
20,000
Plymouth City Council
0
0
0
7,500
7,500
Rathbone Investment Management
0
0
0
4,167
4,167
The National Gallery
0
0
0
4,000
4,000
Wordsworth Trust
0
0
0
3,333
3,333
The John S Cohen Foundation
0
0
0
3,000
3,000
The Granada Foundation
0
0
0
2,000
2,000
The Westmorland Arts Trust
0
0
0
2,000
2,000
Kendal College (Apprenticeships)
0
0
0
2,000
2,000
Alzheimers Society
0
0
0
1,125
1,125
Kirker Holidays
0
1,050
0
0
1,050
P F Charitable Trust
0
1,000
0
0
1,000
735,133
505,882
0
138,268
644,150
547,901
34
0
187,232
In addition, during 2016 the charitable company raised funds from the following sources for the development of Windermere Jetty:
2016 £ Restricted Endowment Funds
2016 £ Restricted Funds
2016 £ Total
2015 £ Restricted Endowment Funds
2015 £ Restricted Funds
2015 £ Total
Heritage Lottery Fund
0
5,267,259
5,267,259
0
711,900
711,900
Donations to WJ Capital Project (listed below)
0
278,542
278,542
0
282,988
282,988
Regional Growth Fund
0
127,746
127,746
0
517,217
517,217
WJ Endowment
182,005
0
182,005
120,713
0
120,713
182,005
5,673,547
5,855,552
120,713
1,512,105
1,632,818
Donations to the Windermere Jetty Capital project: 2016 £ Total Wolfson Foundation Cumbria Community Foundation
250,000 10,000
Other donations under £1,000
5,925
Interest (bank)
4,543
Turner & Townsend Fundraising
3,298
Gift Aid
2,027
J Hudson
1,500
A Case
1,250 278,542
Donations to the Blackwell Project: 2016 £ Total Heritage Lottery Fund
26,760
Estate of Ruan Peregrine James Galloway McWilliam
10,000
R Leach
2,000 38,760
35
5. Commercial Trading Operations – Lakeland Arts Enterprises Ltd. Lakeland Arts Enterprises (company number 3015175) is wholly owned by the charitable company and trades to raise funds, which are transferable to Lakeland Arts either as gift aid or repayment of loan. The Profit and Loss Account for the year was:
£ Sales of goods Conservation & reproduction services Commission on sale or return items
2016 £
£
344,667
348,400
419
1,537
36,707
44,985 381,793
Less cost of sales Conservation & reproduction services
134,603
589
1,089
Repairs & maintenance
135,692
247,563
259,230
262,137
Total income
Professional fees
134,230
14,574
Business interruption insurance
Employment costs
394,922
133,641
Gross profit on sale of goods
259,230
231,541
215,674
3,590
7,230
931
928
Rent paid to Lakeland Arts
4,800
4,800
Audit fees
2,450
2,350
Publicity
1,001
684
Miscellaneous expenses
176
289
Computer software and security charges
842
1,192 245,331
Net profit Profits transferred to Lakeland Arts Retained profit for the period
36
2015 £
233,147
16,806
26,083
(16,806)
(26,083)
0
0
The Balance Sheet at 31 December was:
£
2016 £
£
2015 £
Current Assets Retail stocks
36,639
Sundry debtors and prepayments
55,104
20
0
1,781
Lakeland Arts current account Cash at bank and in hand
34,328
13,811
10,340 105,554
46,469
Current Liabilities Lakeland Arts current account VAT Sundry creditors
64,748
0
9,198
15,829
17,606
Net assets
16,638 91,552
32,467
14,002
14,002
Represented by:Share capital Profit & loss account
2
2
14,000
14,000 14,002
14,002
6. Investment Income Income received and accrued during the year came from the following sources:
£
2016 £
£
2015 £
Endowment Fund UK Global Balanced Property
48,191
44,553
(588)
4,849 47,603
49,402
Unrestricted funds UK Global Balanced
9,584
Cash
3,565
12,627 4,646 13,149
17,273
60,752
66,675
37
7. Other Income 2016 £ Unrestricted Funds
2016 £ Restricted Funds
2016 £ Total
341,818
0
341,818
9.198
13,454
0
13,454
15,374
Room hire
2,340
0
2,340
3,098
Other
4,198
0
4,198
722
Employment allowance
1,500
0
1,500
0
Commission on exhibition sales
1,442
0
1,442
2,599
Licence of images
In anticipation of insurance claim Parking
2015 £ Total
1,260
0
1,260
804
SLDC community toilet scheme
550
0
550
550
Insurance claim
550
0
550
326
VAT annual adjustment
0
0
2,234
Roundabout Theatre
0
0
250
367,112
0
367,112
35,156
2016 £ Direct Costs
2016 £ Support Costs
2016 £ Total
2015 £ Total
27,740
25,248
52,988
49,008
374,761
0
374,761
368,839
402,501
25,248
427,749
417,847
214,545
41,384
255,929
256,112
8. Resources Expended Resources expended during the year were:
Cost of generating funds Voluntary income Commercial trading operations
Charitable activities Cost of operating Art Gallery, Museums and Arts & Crafts House Exhibition programmes Blackwell project
52,365
52,365
29,295
Collections & conservation of exhibits
43,385
12,280
55,665
161,458
Learning
99,436
44,215
143,651
156,864
Publicity & memberships
122,255
24,053
146,308
122,148
Historic buildings & premises costs
485,279
44,868
530,147
262,559
Visitor operations
Windermere Jetty Project Total charitable activities Governance costs Total resources expended
38
43,165
53,661
96,826
109,114
1,060,430
220,461
1,280,891
1,097,550
422,271
15,310
437,581
293,677
1,482,701
235,771
1,718,472
1,391,227
96,942
0
96,942
87,855
1,982,143
261,019
2,243,163
1,896,929
Allocation of support costs: 2016 £ Fundraising
2016 £ Main Charitable Activities
2016 £ Windermere Jetty Project
2016 £ Total
2015 £ Total
Admin & other
12,391
109,810
0
122,201
105,820
Management
9,022
15,582
10,154
34,758
64,535
Finance
3,835
38,857
5,156
47,848
68,177
IT
26,769
26,769
7,212
HR & Legal
29,443
29,443
15,716
261,019
261,460
2016 £ Total
2015 £ Total
Fees payable to the charity’s auditor for the audit of the charity’s annual accounts
4,228
4,424
Fees payable to the charity's auditor for the audit of the subsidiary accounts
2,450
2,350
964
964
25,248
220,461
15,310
The direct costs of generating voluntary income comprise: 2016 £ Total
2015 £ Total
Salaries & employment costs
17,207
19,870
Other
40,122
8,512
57,329
28,382
2016 £ Total
2015 £ Total
91,898
82,466
Governance costs comprise:
Salaries & employment costs Audit fees
5,044
5,389
96,942
87,855
9. Auditor’s Remuneration
Fees payable to the charity's auditor for the independent examination of the accounts of Lakeland Arts Trust Fees payable to the charity’s auditor for payroll services
3,859
Fees payable to the charity's auditor for the audit of grant funding (Regional Growth Fund)
Total fees payable to the charity’s auditor
1,743 7,273
5,057
11,501
9,481
39
10. Tangible Fixed Assets (assets were transferred fully written down from LAT apart from £100bal) Movements on the fixed assets during 2016 were: Freehold Property £
Steamboat Plant £
Tractors
AH Fixtures & Fittings £
Total
£
Furniture & Equipment £
190,000
173,570
14,950
14,957
50,466
443,943
0
0
0
0
0
173,570
14,950
£
Asset cost, valuation or revalued amount At 1 January 2016 Prior year adjustment Adjusted balance at 1 January 2016
190,000
Additions
14,957
50,466
443,943
11,856
29,774
41,630
Disposals At 31 December 2016
0 190,000
173,570
14,950
26,813
80,240
485,573
0
(173,570)
(14,950)
(14,857)
(2,103)
(205,480)
(1,820)
(18,717)
(20,537)
Accumulated depreciation At 1 January 2016 Disposals
0
Charge for year At 31 December 2016
0
(173,570)
(14,950)
(16,677)
(20,820)
(226,016)
At 1 January 2016
190,000
0
0
100
48,363
238,463
At 31 December 2016
190,000
0
0
10,136
59,420
259,556
Net book value
11. Restricted Asset in the Course of Construction A new development at the site of the former Windermere Steamboat Museum. The new museum, Windermere Jetty, will open in 2017. The development is a restricted asset and is being funded by the Heritage Lottery Fund, The Regional Growth Fund, Trusts and Foundations and individual donors. The asset is valued at cost. Movement on asset cost during the year: Total £ Adjusted value at 1 January 2016
1,612,432
Additions
6,378,184
Value at 31 December 2016
7,990,616
40
12. Financial Summary of Heritage Asset Transactions There were no movements on the heritage assets of Lakeland Arts during the period as the permanent collections are held by Lakeland Arts Trust, acquisitions by Lakeland Arts Trust are detailed below. 2016 £
2015 £
2014 £
2013 £
2,500
-
-
180
-
Ceramics
-
3,780
-
-
-
Ephemera
-
-
-
60
-
Furniture
-
5,000
-
9,000
-
Glass negatives
-
-
-
500
-
Industrial history
-
-
19,000
-
-
Paintings
-
-
-
28,000
-
-
-
-
7,000
-
Purchases and additions Books
2012 £ -
Donations Boat models
-
-
-
-
1,000
Ceramics
2,750
-
-
2,430
-
Costume
700
-
-
-
-
Drawings
-
-
-
16,600
-
Engraving
-
-
-
5,600
-
Ephemera
200
-
-
-
12
-
-
-
-
14,000
Books
Furniture Industrial history Paintings
-
-
300
-
-
148,500
5,000
56,000
5,050
60,000
-
-
-
-
5,000
70
-
-
-
-
Prints
-
-
200
400
36,000
Sculpture
-
-
-
10,000
-
Social history
865
-
-
-
250
Watercolours
-
15,000
6,300
24,080
-
155,585
28,780
81,800
108,900
116,262
Photographic prints Photographs
Total additions
41
13. Further Information on the Charitable Company’s Heritage Assets From 1 August 2013 the charitable company entered into a Loan and Management Agreement with the owner of the collections, Lakeland Arts Trust, under which all responsibilities in relation to the collections including acquisition, disposal, preservation and management, transferred to Lakeland Arts. Lakeland Arts maintains a full inventory of all the collections held. This includes location and movements in and out of works of art and museum objects which, from time to time, may be loaned to/from other museums and galleries. Potential acquisitions, which may be purchased or gifted, must meet the requirements laid out in the charitable company’s Collections Development Policy (November 2012) including relevance, use, condition and provenance. Further detail on acquisitions is given under each section of the collection below. Abbot Hall – Collection of Works of Art and Museum Exhibits Lakeland Arts Trust opened Abbot Hall Art Gallery, which is housed in a Grade 1 listed eighteenth century villa, in 1962. The downstairs rooms were restored in a way sympathetic to the building’s Georgian origins, and the upstairs rooms were converted for the display of exhibitions, including of modern and contemporary art. Lakeland Arts’ principal areas of collecting and display broadly mirror this division: ••
Eighteenth century furniture. This is a relatively small holding but it allows the eighteenth century paintings to be seen in context in the period rooms.
••
Eighteenth century British landscape and portrait paintings, with a particularly strong group of works by George Romney, who grew up and was apprenticed locally.
••
Eighteenth and nineteenth century watercolours, including an exceptional group of works by John Ruskin, JMW Turner and a number of other key works, many of which relate to the Lake District.
••
Twentieth century and contemporary British Art, perhaps the charitable company’s strongest group, with sculpture by figures such as Jean Arp, Barbara Hepworth and Elisabeth Frink, as well as work by many of the leading painters including Samuel Peploe, Ben and Winifred Nicholson, a strong group of St Ives work, Kurt Schwitters, Stanley Spencer, Graham Sutherland, John Piper, Ivon Hitchens, Frank Auerbach, Paula Rego, Bridget Riley and Sean Scully. In addition, there is a strong holding of prints by such names as Henry Moore, David Hockney and Lucien Freud, as well as others previously mentioned.
In addition to the core collections outlined above, there are subsidiary collections, some of which, such as the craft collections of Arts and Craft furniture and ceramics and twentieth century studio pottery, are used in the displays at Blackwell. The collections at Museum of Lakeland Life & Industry are extremely varied, consisting not just of items strongly related to local life and industry, but also objects of more general relevance. The collection is divided broadly into categories as follows; farming; local vernacular furniture; costume (dating from seventeenth to mid twentieth centuries); local urban and light industry tools, machinery and artefacts; rural trades and industry implements; clock-making; photography; the Arts and Crafts Movement in Cumbria; local authors (including Arthur Ransome); domestic objects; sport and leisure; toys, games and dolls; education materials and ephemera. Floods December 2015 Like many residents and businesses close to the River Kent in Kendal, Abbot Hall was affected by the flood waters in December 2015. Flood water was restricted to the ground floor and the Trust was fortunate to be able to get senior and experienced staff to the Gallery and their immediate intervention secured the Gallery and collections. Unfortunately a section of a collections storage area was partly affected. The Trust has moved collections to appropriate off-site storage whilst flood recovery works are undertaken at the Gallery. The cost of the recovery works and temporary storage arrangements will be covered by insurance. The total value of the claim is unknown at present and the claim is expected to be settled mid-2017. Blackwell, The Arts & Crafts House Blackwell, which Lakeland Arts Trust opened in 2001, reflects the development of the Arts and Crafts Movement both in Britain and internationally, with particular emphasis on its architect Mackay Hugh Baillie Scott (1865-1945), and the development of applied art and craft disciplines up to the present day. The charitable company has very limited collections at Blackwell, and these are defined principally by the following:
42
••
material relating to M.H. Baillie Scott including furniture, books and published designs
••
archive material relating to the history of Blackwell
••
Arts and Crafts furniture and a small number of objects by Arts and Crafts designers and/or makers
Lakeland Arts’ displays at Blackwell are principally comprised of objects drawn from the collections and objects on loan from public and private collections. There are two exceptions to this principle: ••
a small number of ceramics which were donated on the opening of Blackwell to enhance its displays and ‘dress’ the period rooms; these may be regarded as constituting a handling collection
••
architectural fittings acquired to complete or enhance the fabric of the house, such as light fittings.
The Steamboat Museum Collection The historic boat collection at the Windermere Steamboat Museum, which was opened in 1977, demonstrates the development of boating on Windermere from around 1780 to 1960. The collection is acknowledged to be one of the most important collections of vessels generic to one location worldwide and to reflect important themes in technical, social and economic history. The museum’s founder Mr G.H. Pattinson (1918-1997) collected most of the boats over a period of 30 or more years. The Pattinson Collection was augmented and added to by the collection of the Windermere Nautical Trust and covers many aspects of boating on Windermere including wooden steam launches, motor boats, yachts and canoes, as well as small objects and printed ephemera. The Pattinson collection was transferred to the Lakeland Arts Trust through H.M. Government’s Acceptance in Lieu Scheme in 2007. Lakeland Arts is now also responsible for the collections of the Windermere Nautical Trust following the merger of Lakeland Arts Trust with Windermere Nautical Trust in 2009. Acquisitions Fine art The following list is indicative of the types of areas where the acquisition of new items could be seen as a priority, but this should not be seen as an insurmountable barrier to exploring other avenues: a. Eighteenth century portraiture, with a particular emphasis on George Romney and his contemporaries, such as Joshua Reynolds, Thomas Gainsborough and Joseph Wright of Derby. Particular priority should be given to acquiring a good self portrait by Romney, as well as obtaining works that broaden further the range of works by the artist in the collection. b. English watercolours from the late-eighteenth and early-nineteenth century, with a particular emphasis on depictions of the Lake District by well- established names, or on high-quality works on paper by key artists from the period, such as JMW Turner or John Constable. c. John Ruskin. Good quality works that strengthen further the charitable company’s already impressive collection of watercolours and drawings by the artist. d. Twentieth century British Modernism. Works should be acquired that both enhance existing strengths (such as the St Ives school, Neo-Romanticism, Kurt Schwitters, the School of London), and fill gaps in the collection (particularly early twentiethcentury British art). e. Contemporary art. Priority should be given to items that fit in with the ethos of the charitable company, and particularly Abbot Hall, or that relate to existing areas of the collection. The charitable company should also consider acquiring examples of work by living artists who exhibit at its venues, thereby retaining a legacy from the show, as well as generating links between the exhibition programme and the permanent collection. Decorative Art and Furniture The priority is to acquire works that relate to Blackwell, MH Baillie Scott, the Arts and Crafts Movement, its earlier influences and legacy in relation to contemporary craft practice. Collecting principally covers the period from around 1840 to the present. The charitable company could acquire a limited number of earlier pieces of furniture for the period rooms at Abbot Hall to raise the quality of the collections shown.
43
Social and Industrial History A priority is to review the existing collections to establish the significance of these and identify where the strengths are and how use of the collections can be developed in the future. In the meantime, acquisitions will be limited to items which the charitable company identifies as of sufficient significance and importance to warrant adding to the existing collection. Steamboats and Historic Vessels Lakeland Arts will acquire a limited amount of material to build on and enhance the existing collection and to provide new and additional ways of interpreting the history and technology of boating on Windermere. The priorities will relate to the themes explored in the new museum; Windermere Jetty, Museum of Boats, Steam and Stories. New acquisitions may be made to fill gaps within the existing collection or in order to enhance the interpretation and understanding of an existing object within the collection. Potential acquisitions must meet the four basic criteria of relevance, use, condition and provenance: Relevance – Abbot Hall Art Gallery aims to inspire, challenge and stimulate people through direct engagement with the work of artists. Blackwell is concerned with engaging people in a dialogue about M.H. Baillie Scott, the Arts and Crafts Movement and its history and legacy, as well as contemporary craft practice. The Windermere Jetty, Museum of Boats, Steam and Stories is concerned with engaging people in a dialogue about the past, present and future of boating on Windermere. Museum of Lakeland Life & Industry aims to engage people with social and industrial history through collections that relate to the life and industry of those who lived and worked in the locality and the Lake District. New acquisitions at all sites will be assessed in terms of their capacity to act as a focus for interpretation, discussion, debate or research with particular audiences. Use – The object must have the capacity now or in the future to tell a story in one of the media used by Abbot Hall Art Gallery, Blackwell, The Arts & Crafts House, Windermere Jetty and Museum of Lakeland Life & Industry including, but not limited to, exhibitions, web products, broadcasts and popular and scholarly publications. To facilitate this as much associated information as possible should be collected at the same time as the object. Condition – The object must be in a reasonable state of completeness and in good condition relative to its rarity or historical importance. It must not require significant resources for conservation and/or storage, nor must it present any unacceptable hazards, either in storage or display. Items in poor condition will only be considered if they are unique or are of sufficient significance to warrant acquisition. Provenance – The object must come with good title, and be properly documented regarding its provenance and authenticity. It should be free from any onerous restoration requirements or special conditions, and ideally, come with its intellectual property rights (for example copyright). Disposal By definition, the Lakeland Arts Trust has a long-term purpose and holds collections in trust for society in relation to its stated objectives. The Trustees therefore accept the principle that sound curatorial reasons for disposal must be established before consideration is given to the disposal of any items in Lakeland Arts collections. The disposal policy is detailed in Lakeland Arts’ Collections Development Policy (November 2012). Disposal preliminaries a. The governing body will ensure that the disposal process is carried out openly and with transparency. b. By definition, Lakeland Arts Trust has a long-term purpose and holds collections in trust for society in relation to its stated objectives. The governing body therefore accepts the principle that sound curatorial reasons for disposal must be established before consideration is given to the disposal of any items in the museum’s collection. c. Lakeland Arts will confirm that it is legally free to dispose of an item and agreements on disposal made with donors will be taken into account. d. When disposal of a museum object is being considered, Lakeland Arts will establish if it was acquired with the aid of an external funding organisation. In such cases, any conditions attached to the original grant will be followed. This may include repayment of the original grant and a proportion of the proceeds if the item is disposed of by sale. Motivation for disposal and method of disposal e. When disposal is motivated by curatorial reasons the procedures outlined in the Collections Policy will be followed and the 44
method of disposal may be by gift, sale or exchange. f.
The charitable company will not undertake disposal motivated principally by financial reasons
The disposal decision-making process g. Whether the disposal is motivated either by curatorial or financial reasons, the decision to dispose of material from the collections will be taken by the governing body only after full consideration of the reasons for disposal. Other factors including the public benefit, the implications for the charitable company’s collections and collections held by museums and other organisations collecting the same material or in related fields will be considered. External expert advice will be obtained and the views of stakeholders such as donors, researchers, local and source communities and others served by the charitable company will also be sought. Responsibility for disposal decision-making h. A decision to dispose of a specimen or object, whether by gift, exchange, sale or destruction (in the case of an item too badly damaged or deteriorated to be of any use for the purposes of the collections or for reasons of health and safety), will be the responsibility of the governing body of Lakeland Arts acting on the advice of professional curatorial staff, if any, and not of the curator of the collection acting alone. Use of proceeds of sale i. Any monies received by Lakeland Arts governing body from the disposal of items will be applied for the benefit of the collections. This normally means the purchase of further acquisitions. In exceptional cases, improvements relating to the care of collections in order to meet or exceed Accreditation requirements relating to the risk of damage to and deterioration of the collections may be justifiable. Any monies received in compensation for the damage, loss or destruction of items will be applied in the same way. Advice on those cases where the monies are intended to be used for the care of collections will be sought from the Arts Council England. j.
The proceeds of a sale will be ring-fenced so it can be demonstrated that they are spent in a manner compatible with the requirements of the Accreditation standard.
Disposal by gift or sale k. Once a decision to dispose of material in the collection has been taken, priority will be given to retaining it within the public domain, unless it is to be destroyed. It will therefore be offered in the first instance, by gift or sale, directly to other Accredited Museums likely to be interested in its acquisition. l.
If the material is not acquired by any Accredited Museums to which it was offered directly as a gift or for sale, then the museum community at large will be advised of the intention to dispose of the material, normally through an announcement in the Museums Association’s Museums Journal, and in other specialist journals where appropriate.
m. The announcement relating to gift or sale will indicate the number and nature of specimens or objects involved, and the basis on which the material will be transferred to another institution. Preference will be given to expressions of interest from other Accredited Museums. A period of at least two months will be allowed for an interest in acquiring the material to be expressed. At the end of this period, if no expressions of interest have been received, the charitable company may consider disposing of the material to other interested individuals and organisations giving priority to organisations in the public domain. Disposal by exchange n. The nature of disposal by exchange means that Lakeland Arts will not necessarily be in a position to exchange the material with another Accredited museum. Lakeland Arts will therefore ensure that issues relating to accountability and impartiality are carefully considered to avoid undue influence on its decision-making process. o. In cases where Lakeland Arts wishes for sound curatorial reasons to exchange material directly with Accredited or unaccredited museums, with other organisations or with individuals, the procedures in paragraphs 13a-13d and 13g-13h of the Collections Policy will be followed as will the procedures in paragraphs 13p-13s. p. If the exchange is proposed to be made with a specific Accredited museum, other Accredited museums which collect in the same or related areas will be directly notified of the proposal and their comments will be requested. q. If the exchange is proposed with a non-accredited museum, with another type of organisation or with an individual, Lakeland Arts will make an announcement in the Museums Journal and in other specialist journals where appropriate. r.
Both the notification and announcement must provide information on the number and nature of the specimens or objects 45
involved both in Lakeland Arts collection and those intended to be acquired in exchange. A period of at least two months must be allowed for comments to be received. At the end of this period, Lakeland Arts must consider the comments before a final decision on the exchange is made. Documenting disposals Full records will be kept of all decisions on disposals and the items involved and proper arrangements made for the preservation and/or transfer, as appropriate, of the documentation relating to the items concerned, including photographic records where practicable in accordance with SPECTRUM Procedure on de-accession and disposal. Preservation and Management Lakeland Arts Trust was first awarded MLA Accreditation status in 2009 and following the award Abbot Hall Art Gallery, Blackwell, The Arts & Crafts House and Museum of Lakeland Life & Industry have entered into a planned timetable of collections preservation, care and management. MLA Accreditation status was reviewed during 2013 and successfully maintained by Lakeland Arts. Windermere Jetty is currently applying for Working towards Accreditation status, with a view to applying for Designation once full Accreditation is achieved. These plans are regularly revisited by the curatorial team led by the Director of Exhibitions & Collections; they are also monitored by the Arts Council England Accreditation Board. The charitable company abides by the Museums Association’s Code of Ethics. In 2010 some of the principal objects in the collection were valued by Sotheby’s. The valuation was carried out specifically to inform a risk management exercise which resulted in a review of the insured values and risks for the collection. For the purpose of reinstatement the value of all of the charitable company’s Heritage assets, including buildings and land, is estimated as £25.4m. 14. Investments
Endowment Fund
General Fund
Total
£
Blackwell Endowment Fund £
£
£
662,846
1,015,228
363,550
2,041,624
Investment Portfolio Market Value as at 1 January 2016 Additions
0
Disposal proceeds
0 0
Movement on cash income account 21,097
69,721
24,135
114,953
683,943
1,084,949
387,685
2,156,577
0
0
0
0
Value of portfolio as at 31 December 2016
683,943
1,084,949
387,685
2,156,577
Historical cost as at 31 December 2016
531,092
870,470
316,964
1,718,526
Net investment gains/(losses) Market Value as at 31 December 2016 Cash held as part of portfolio
Group
Charity
2016 £
2015 £
2016 £
2015 £
1,413,892
1,323,074
328,943
307,846
355,000
355,000
355,000
355,000
0
0
0
0
387,685
363,550
387,685
363,550
2
2
2,156,577
2,041,624
1,071,630
1,026,398
UK Listed investments are represented by: Endowment Fund UK Global Balanced Property Cash General Fund UK Global Balanced Shares in trading subsidiary
46
The Blackwell Endowment Fund is held by Lakeland Arts Trust Investments held by Lakeland Arts also include an additional £2 investment in the subsidiary company, Lakeland Arts Enterprises Ltd at cost (see note 5). 15. Debtors Consolidated 2016 £
Consolidated 2015 £
Charity 2016 £
Charity 2015 £
679
15,627
679
15,156
VAT
160,425
21,217
169,623
37,046
Prepayments
258,891
47,074
204,768
46,552
Grant income due
651,157
650,720
651,208
650,720
10,775
13,086
10,775
13,086
Trade debtors
Lakeland Arts Support Trust
8,055
Lakeland Arts Trust
64,698
Lakeland Arts Enterprises 1,081,927
747,724
1,109,806
762,560
Consolidated 2016 £
Consolidated 2015 £
Charity 2016 £
Charity 2015 £
1,001,157
203,103
987,505
188,425
23,047
17,663
23,047
17,663
0
0
0
198
58,476
42,279
55,246
39,159
5,870
9,062
5,870
9,051
1,088,550
272,107
1,071,668
256,256
16. Creditors
Trade creditors Other taxes and social security Lakeland Arts Enterprises Ltd Lakeland Arts Trust Accruals Other creditors
1,780
17. Pension and other schemes Defined benefit pension schemes Cumbria Local Government Pension Scheme Lakeland Arts Trust was a member of the Cumbria Local Government Pension Scheme before the operations were transferred to Lakeland Arts on 1 August 2013. The Scheme is not currently active although the charity is working with the Council to prevent crystallisation by bringing an employee into the Scheme and paying contributions on a normal basis. The current payments into the scheme relate to past deficit contributions. The date of the most recent comprehensive actuarial valuation was 31 March 2014. No actuarial valuation was available for these accounts due to the fact that the Scheme is not fully active. Where the scheme is in deficit and where the charity has agreed to a funding deficit funding arrangement, the charity has to recognise a liability for this obligation. The amount recognised is the net present value of the deficit reduction contributions payable under the agreement that relates to the deficit. The present value is calculated using the discount rate of 1.45% (2015 - 2.48%) in these accounts. The unwinding of the discount rate is recognised as a finance cost in other expenses. The discount rate used is the equivalent single discount rates which, when used to discount the future recovery plan contributions due, would give the same results as using a full AA corporate bond yield curve to discount the same recovery plan contributions. The amount payable is based on the latest information available which is £31,900pa.
47
Reconciliation of scheme assets and liabilities to assets and liabilities recognised The amounts recognised in the statement of financial position are as follows:
Present value of defined benefit obligation
2016 £
2015 £
477,585
466,754
Defined benefit obligation Changes in the defined benefit obligation are as follows: 2016 £ Present value at start of year
466,754
Past service cost
(28,617)
Actuarial gains and losses Present value at end of year
39,448 477,585
18. Reconciliation of Movement in Consolidated Funds Opening funds at 1 January 2016
Income
Expenditure
£
Transfers/ Investment Gains/ (Losses) £
Closing funds at 31 December 2016 £
£
£
631,486
1,747,967
(1,828,982)
24,135
574,606
28,617
(39,448)
(477,585)
164,732
1,747,967
(1,800,365)
(15,313)
97,021
Windermere Jetty Asset in the course of construction
1,612,432
5,673,547
0
704,636
7,990,615
Windermere Jetty Project capital funds
2,195,475
0
(305,056)
(704,636)
1,185,783
Unrestricted funds: General funds Pension scheme deficit Total unrestricted funds
(466,754)
Restricted funds:
Development funds Boat conservation funds
500
0
0
0
500
2,000
0
0
0
2,000
Blackwell funds
20,094
73,853
(87,458)
0
6,489
Learning funds
2,098
24,203
(12,881)
0
13,420 1,163
Aurelius Trust (Blackwell Library)
1,216
0
(53)
0
Exhibitions & Collections funds
4,000
7,750
(11,750)
0
0
145
116,019
(25,600)
0
90,564
3,837,960
5,895,372
(442,798)
0
9,290,535
662,848
0
0
21,097
683,945
69,721
1,084,949
Abbot Hall funds Total Restricted funds Endowment funds: General Endowment Blackwell Endowment
1,015,228 127,800
182,005
0
0
309,805
Total Endowment funds
1,805,876
182,005
0
90,818
2,078,699
Total
5,808,569
7,825,344
(2,243,163)
75,505
11,466,255
Windermere Jetty Endowment
48
19. Analysis of Group Net Assets Between Funds Unrestricted £
Restricted £
Endowment £
259,556
0
0
259,556
0
7,990,616
0
7,990,616
Investments
77,878
0
2,078,699
2,156,577
Stock
36,639
Tangible fixed assets Asset in the course of construction
Total £
36,639 1,081,927
Debtors
431,207
650,720
Cash at bank and in hand
857,876
649,199
(1,088,550)
0
0
(1,088,550)
9,290,535
2,078,699
11,466,255
Current liabilities Pension deficit
0
1,507,075 (477,585)
(477,585) 97,021
20. Trustees’ and Key Management Personnel Remuneration and Expenses The trustees neither received nor waived any emoluments during the year (2015 £0). The total amount of employee benefits received by key management personnel is £177,562 (2015 £202,453). The charity considers its key management personnel comprise Chief Executive, Chief Operating Officer, Director of Finance & Resources, and Director or Programming. There were 0 trustees (2015 0 trustees) accruing pension arrangements. Out of pocket expenses were reimbursed to trustees as follows:
Travel
2016 £
2015 £
690
1,392
Included in above are £0 (2014 £0) which have been paid directly to third parties. 21. Employees The employees of Lakeland Arts during 2016, expressed as average annual full time equivalent numbers, consisted of: Abbot Hall
Blackwell
Windermere Jetty
Management, curatorial, marketing and learning
9.3
7.3
5.6
Administration
1.3
5.0
0.0
Desk/shop staff
3.4
3.4
0.0
Coffee House & Tea Room
3.7
6.8
0.0
Total
Other
0.8
0.8
0.6
Total
18.5
23.2
6.1
47.8
2016 £
2015 £
Wages and salaries
968,391
900,635
Social security costs
71,690
64,087
22. Staff Costs
Pension Costs
4,857 1,044,938
964,722
49
The number of full time/regular employees whose pay and taxable benefits exceeded £60,000 fell within the following bands:
£60,000 - £69,999
2016
2015
1
1
23. Contingent Liability The charity is currently involved in a substantial construction project which is in delay. The parties to the contract and their advisors are considering the effects of that delay. No firm conclusions are capable of being made at this stage. 24. Capital Commitments Lakeland Arts is committed to the development of a new museum, Windermere Jetty, which is due to open to the public in 2018. The charity has entered into a construction contract with Thomas Armstrong for £9.7m. The total project cost including construction, related professional fees and conservation and activity programmes is £18.5m. Funding has been secured to cover most of the cost and the shortfall will be raised in the coming year. 25. Taxation The income which Lakeland Arts receives from admission charges to the public to view its collections arises, in the opinion of the Trustees, in conjunction with and for the purposes of Lakeland Arts and is applied solely for the purposes of Lakeland Arts. Profits of Lakeland Arts Enterprises Ltd on its trading activities are transferred to Lakeland Arts under gift aid. It is considered that no liability to taxation other than Value Added Tax arises. 26. Related Party Transactions Martin Ainscough, Chair of Trustees, is a Director and Shareholder of Miller Howe Ltd. During 2016 Lakeland Arts paid Miller Howe £511 mainly for booked accommodation for guests in relation to exhibition programming. Anthony Collinson, Trustee, is a Director of JWK Solicitors. During 2016 Lakeland Arts paid £14,137 to JWK Solicitors for legal advice. At 31 December Lakeland Arts owed JWK Solicitors £4,413.
23. Prior Year Adjustment Lakeland Arts Trust was not previously consolidated in the group accounts. The new Charities SORP FRS102 requires charities to be consolidated where they are controlled by another entity, in this case by Lakeland Arts as sole trustee, and so the accounts have been amended to reflect this. The net effect was an uplift of £607,364 to total funds (2015 - £548,474). The full accounts of Lakeland Arts Trust (charity number 526980) are available to view at the Charity Commission.
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Images Front and Back Cover: Paul Jenkins, Detail: Phenomena Gemini Encounter East 2001, acrylic on canvas, 185.9 x 255 cm © 2005 Estate of Paul Jenkins. Courtesy Redfern Gallery, London Contents Page: Alasdair Gray, Marion Oag and the Birth of the Northern Venus, 1977. Arts Council Collection, Southbank Centre, London © the artist (and Sorcha Dallas, Glasgow) Page 5: Rembrandt, Self Portrait at the Age of 63 (detail). © The National Gallery, London Page 7: Canaletto, The Grand Walk Vauxhall Gardens. © Compton Verney, photo by Prudence Cuming Associates Ltd. Page 7: Sculpture from the Laura Ford: Seen and Unseen exhibition at Abbot Hall Art Gallery. © Florence Acland Photography Page 8: Winifred Nicholson, Daffodils and Pewter Jug, 1953 (detail). © Trustees of Winifred Nicholson Page 8: Chris Keenan, Anemone Tea Set (after William de Morgan), 2016. © Lakeland Arts
Page 10: Nicholas Volley, Tea Time. 2005 (detail). © Lakeland Arts Page 11: Ben Nicholson, (1932) crowned head – the queen, 1932 Page 12: In The Moment workshop in 2016. © Florence Acland Photography Page 13: Volunteer helping at Art Camp 2016 at Abbot Hall Art Gallery. © Florence Acland Photography Page 14: Aerial view of Winderemere Jetty in May 2017. Photo by Skylark Photography. © Lakeland Arts Page 18: Henry Moore, Seated Figures (Studies for Sculpture), 1957. © Lakeland Arts Page 21: Ceramic pots from the Craft Shop at Blackwell, The Arts & Crafts House. Photo by Mark Harrison. © Lakeland Arts Page 23: Knox rug at Blackwell, The Arts & Crafts House. Page 24: Bracelet from the Craft Shop at Blackwell, The Arts & Crafts House. Photo by Mark Harrison. © Lakeland Arts
Page 9: Laura Ford, Weeping Girl © Laura Ford. Photograph © Tony West Photography Page 9: Photograph by Joseph Hardman,
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Designed and published by Lakeland Arts Š Lakeland Arts, Abbot Hall, Kendal, Cumbria LA9 5AL Registered charity no. 1153001 lakelandarts.org.uk This document is available in PDF format from our website, or on request from info@lakelandarts.org.uk or telephone 01539 722464.