The Arts Council of England annual review 2002 The arts matter Arts Council of England annual review 2002
The arts matter Arts Council of England Arts Council of England annual review 2002 14 Great Peter Street London SW1P 3NQ
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Cover image: a detail from ‘Astral Dance’, the safety curtain at Birmingham Hippodrome. Balraj Khanna was commissioned to create this, the largest piece of public art in a UK theatre. The Hippodrome re-opened in November 2001 following a £30 million redevelopment, £24 million of which came from Arts Council lottery funds. Photographer: Harry Rhodes Arts Council of England regional offices
East England Arts North West Arts South West Arts Eden House Manchester House Bradninch Place 48–49 Bateman Street 22 Bridge Street Gandy Street welcome to the Cambridge Manchester M3 3AB Exeter CB2 1LR T 0161 834 6644 Devon T 01223 454400 F 0161 834 6969 EX4 3LS F 0870 242 1271 Textphone 0161 834 9131 T 01392 218188 Arts Council of England’s Textphone 01223 306893 F 01392 229229 Southern & South East Arts Textphone 01392 433503 East Midlands Arts (Tunbridge Wells office) Mountfields House Union House West Midlands Arts annual review 2002 Epinal Way Eridge Road 82 Granville Street Loughborough Tunbridge Wells Birmingham Leicestershire Kent B1 2LH LE11 0QE TN4 8HF T 0121 631 3121 The Arts Council is the national body for the T 01509 218292 T 01892 507200 F 0121 643 7239 arts in England. As an independent, non- F 01509 262214 F 0870 242 1259 Textphone 0121 643 2815 political body working at arm’s length from Textphone 01892 525831 Government, we distribute public money from London Arts Yorkshire Arts Government and the National Lottery to artists 2 Pear Tree Court (Winchester office) 21 Bond Street and arts organisations. London 13 St Clement Street Dewsbury EC1R 0DS Winchester West Yorkshire On 1 April 2002, the Arts Council and the 10 T 020 7608 6100 Hampshire WF13 1AX Regional Arts Boards joined together to form F 020 7608 4100 SO23 9DQ T 01924 455555 a single development organisation for the arts. Textphone 020 7608 4101 T 01962 855099 F 01924 466522 The new organisation is responsible for F 0870 242 1257 Textphone 01924 438585 developing and promoting the arts in England. Northern Arts We aim to be a national force for the arts, Central Square delivering a higher profile, more funding and Forth Street more support to artists and arts organisations. Newcastle upon Tyne NE1 3PJ The arts matter for so many reasons. In this T 0191 255 8500 annual review, we focus on some strands of F 0191 230 1020 our work that show how the arts matter in a Textphone 0191 255 8500 range of social and educational settings.
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01 Chairman’s introduction 02 Chief Executive’s introduction Charity registration number 1036733 • ISBN 0–7287–0894–9 • ©The Arts Council of England October 2002 03–07 A taste of our work 08–45 Grant-in-aid accounts Designed and produced by Merchant with navyblue. Printed by Perivan White Dove. 46–73 Lottery accounts The Arts Council of England is committed to being open and accessible. We welcome all comments on our work. 74 –95 National Lottery Report Please send these to Wendy Andrews, Executive Director of Communications. 96 Membership of the Arts Council advisory panels 97 Arts Council of England regional offices This publication is also available on our website: www.artscouncil.org.uk/review2002/ If you require any publication in another format, including translation, contact the Information Department: 020 7973 6453, [email protected] a year of change and achievement
This has been a year of major change and awarded in 2000: £25 million is being invested achievement in the arts. The lottery-funded in theatre, £40 million is being used to establish Baltic Centre for Contemporary Art opened the 16 Creative Partnership programmes and to international acclaim in Gateshead. We £35 million is being invested in core funding for launched our new Creative Partnerships arts organisations. Over the coming months programme in 16 areas throughout England, the Council will decide how to make best use giving young people and their teachers the of the very welcome further new investment chance to work directly with artists and cultural in the arts. and creative organisations. Gerry Robinson Courtesy of UPPA On 1 April 2002, the Arts Council and the When I became Chairman of the Arts Council Regional Arts Boards merged to form a single in 1998, my priority was to achieve a step organisation for the arts in England. This will change in arts funding in this country. I am bring a number of benefits: greater decision- therefore delighted to report that the arts have making at regional level; stronger national again benefited from a substantial increase leadership; less bureaucracy for artists to deal in the Government’s recent spending review. with; and a powerful national organisation that Together with continued lottery funding for the will be able to make an even stronger case for arts, this reflects Government recognition of proper funding in the future. the vital part the arts play in all our lives. I would like to thank everyone for what has By 2005/06, an additional £75 million a year been achieved this year – especially Council will be directed to the arts. This comes on top members and staff – and welcome those now of the extra £100 million a year awarded to joining us in the new organisation. Together the arts in the 2000 spending review. In I am sure we can exceed even our previous 1998/99 revenue funding for the arts stood achievements. at £189.6 million. By 2005/06 it will have risen to £412.3 million – an extra £222.7 million, an increase of 117%.
We have already announced how we will Gerry Robinson spend the additional £100 million we were Chairman
The Arts Council of England annual review and accounts 01 beyond boundaries
In March 2002, Peter Hewitt, Chief Executive It thrives in open spaces where it has room to of the Arts Council, delivered a speech entitled breathe, where people are free to explore. ‘Beyond boundaries: the arts after the events It is by nature resistant to instruction or of 2001.’ The speech was stimulated by the targetting. The whole point of creativity, events of September 11th and in it Peter set as with all forms of innovation, is that it is out his aspirations for the arts. Some extracts impossible to know the outcome in advance. from the speech follow. Read the full text at This can at times run counter to the instinct www.artscouncil.org.uk/news/ of policy makers in Government and in publicationsindex.html funding bodies like ours, who, in their keenness to uphold accountability, are A world with fewer borders in trade and inclined to detailed targets, leading inevitably commerce has thrown into relief those to micro management and, at its worst, borders and boundaries that still matter. the stifling of initiative and innovation. The important remaining boundaries in our globalised world are increasingly about We must establish a cultural ‘right to roam’, culture, tradition, belief, religion and identity. to taste, experiment, learn from the many different cultures that make up these islands, I think it is essential to encourage modern let alone what is beyond. This must be art to explore and transgress the borders available to all of us from children in schools and boundaries of our society, in culture to mature adulthood. and in science. Borders can be obstacles but they can also be interfaces of exchange We need artistic capacity, spread throughout Peter Hewitt and creativity. our society and its many communities, to Photographer: Pete Jones provide us with the depth and diversity of That is where we need to see art, trading imaginative capital to make sense of, and between different cultures, disciplines and the most of, the complex world we live in. ways of viewing the world. Our new, single organisation will build on We at the Arts Council are in what you the best regionally and nationally. We will: might call ‘the platform business’: it’s our job to help create the platform for a • promote the value of the arts socially, the multiplicity of artistic expression in this value of the artist, and the value of art country, to reflect the multiplicity of cultural itself – all in equal measure experiences in society and the richness of • respect regional identity and difference the environment in which we live. but encourage a richer, more complex definition of what ‘we’ means in this And I believe that in an increasingly secular country today Western world, art has a vital role to play to • sweep aside some of the bureaucratic connect us to that sense of deeper meaning. clutter which impedes artists from Poems are a modern form of prayer. Art focussing on production and innovation provides the setting for modern communion. • create the capacity to respond to artistic It is no cliché to see Tate Modern, the Lowry aspiration and to take bold action when and the Baltic as the new cathedrals. needed • find a new, confident voice in public Art can live under pressure, in repressive dialogue about the importance of the societies, but it cannot be prescribed. artist and the arts in society.
02 The Arts Council of England annual review and accounts creativity is fundamentally important
Now in its third year, Artsmark goes from strength to strength. In the first round in 2000, 376 schools received an award, followed in 2001 by another 566 schools. Artsmark raises the profile of arts education across the country, and promotes links with the professional arts sector.
It is awarded to schools that have made a strong commitment to the arts and have developed a nationally recognised range of arts provision for their pupils. Kelsall Community Primary School is an excellent example. A small, village school, they received an Artsmark Gold award in 2002 for the Kelsall Community amount of curriculum time devoted to the Primary School arts, the strong links between school and Photographer: Lee Mawdsley the community, and their commitment to developing their arts staff.
See www.artsmark.co.uk for details.
The Arts Council of England annual review and accounts A taste of our work 03 Hip hop artist Ty leads a workshop for BA.d Photographer: Josh Cole
Shabnam Shabazi, creative producer of BA.d ‘Our work is about developing new theatre makers and artists for tomorrow.’ Photographer: Lee Mawdsley
art shocks, surprises and enchants us Institutional racism exists within the theatre sector, Association. The conference was attended by and the theatre industry is now implementing representatives from producing and presenting a strategy to tackle it. theatres across England. The Eclipse Report is available from www.artscouncil.org.uk/news/ The strategy was published in April 2002 as publicationsindex.html The Eclipse Report. It addresses issues of governance, artistic programming, employment Derby Playhouse is one of the theatres which opportunities and professional development, receives money from the Arts Council’s Black and audience development. Theatrical Regional Initiative in Theatre. Its Black and trade unions and industry lead bodies are Asian development (BA.d) project is very working together with theatres’ boards and much in line with Eclipse recommendations. management to address the issues raised BA.d encourages the active participation of in the report. The result should be a major local Black and Asian people in the arts, as improvement in the opportunities available audiences and participants, by providing a to Black, Asian and Chinese artists and arts wide range of activities. professionals working in English theatres. BA.d initiatives, led by creative producer Shabnam The Eclipse Report evolved from a conference Shabazi, include programming up and coming held in summer 2001, organised by the Arts Black and Asian theatre, and providing training Council, East Midlands Arts, Nottingham and professional development for local young Playhouse and the Theatrical Management people from Black and Asian communities.
The Arts Council of England annual review and accounts 04 A taste of our work Nick Crowe, screen New Audiences’ Regional Challenge was shot from ‘Artist’s profile’ Courtesy of Maverick for projects that addressed regional issues. Television and Channel 4 London Arts has worked to develop greater awareness of the arts and culture of refugee ‘Channel 4 were delighted to work with the Arts Council communities, as well as supporting their artists to give some unusual artistic and setting up a partnership with refugee talents a wider exposure.’ agencies. One strand of this work – Senses Janet Lee, Commissioning Editor, Arts, Channel 4 of the City – funded work demonstrating the different cultural and artistic contribution that refugee communities make to London. Sixteen projects were supported, many of which were profiled during Refugee Week 2002.
As a result of London Arts’ refugee work, now into its fourth year, the Arts Council is contributing to the post of Refugee Week coordinator to develop cultural activity across the country.
In the East Midlands, Roots – a partnership with BBC East Midlands – supported four Exiled Writers Ink! coordinators to produce radio programmes perform ‘Peeling the Skin of Time’ as part of Senses on air and within local arts and community of the City settings to bring new audiences to culturally Copyright Leticia Valverdes, diverse arts. The Roots project was so successful photograph courtesy of London Arts that the Arts Council and the BBC are supporting 11 coordinator posts around the country, starting in Autumn 2002. The coordinators will produce programmes profiling Asian, African, New art to audiences and new audiences to Chinese and Caribbean arts and culture. the arts – that’s the aim of our £20 million New Audiences Programme. Launched in 1998, During 2001/02, New Audiences money the programme: was used to set up various arts and media partnerships. Operatunity is an English National • develops new approaches to arts Opera/Channel 4 project to give people with programming little or no experience of classical music the chance • tackles the barriers which stop people to realise their potential as an opera singer. engaging with the arts The winner will appear on stage with the ENO • creates new opportunities for people to chorus during a televised performance in 2003. be involved in the arts in different spaces and places SlotArt is an Arts Council/Channel 4 initiative • allows organisations to share experiences commissioning film-makers and artists to of running audience development projects produce three minute programmes to fill The Slot – the three minutes that follow Channel 4 Over eight million people will have attended News. SlotArt(2): identinet is a collection of or taken part in a New Audiences event by web-based works by contemporary artists March 2003. Most of these are people who exploring the theme of identity. Identinet was would not otherwise have attended an arts commissioned by Film and Video Umbrella event. The programme has been successful and artist profiles commissioned by Channel 4 in reaching culturally diverse communities were broadcast in April 2002. View the work at and disabled audiences, as well as young www.identinet.net people and rural communities.
The Arts Council of England annual review and accounts A taste of our work 05 exploring a complex world
The Arts Council has formed a new partnership with the Youth Justice Board (YJB). Following the success of YJB’s Summer Splash schemes for young people in 2000 and 2001, and the resultant drop in crime figures during those periods, they commissioned the Arts Council to coordinate arts activities for the 2002 scheme.
We provided activities for Splash Extra, which offered young people a range of activities from drama and dance projects to graffiti art, carnival workshops and making video documentaries. The YJB receives funding from the New Opportunities Fund, and assigned £1.5 million to the Arts Council for these activities.
Summer arts activities took place in the ten police force areas where 82% of the country’s street crime occurs. The increase in funding and new approach resulting from the partnership meant that the programme was expanded greatly. From the previous focus on 13–17 year olds, it was extended to include children from the age of nine. The number of young people who took part in the activities grew seven-fold, from 6,500 to around 50,000.
Lord Norman Warner, chairman of the YJB, Working on a banner made said about Splash Extra: ‘Targeted prevention by 11-year-olds at a Splash work with the most at risk youngsters in high Extra project with artists in Lancashire crime estates cuts youth crime and disorder Photographer: Lee Mawdsley substantially, improves school attendance and raises the quality of life for those communities. It costs so little money to run schemes like this, but their impact can be immense.’
The Arts Council of England annual review and accounts 06 A taste of our work Youth Music funded ‘Music making is as normal as eating or on the seven issues of diversity, transition from Spinovation – a woman- only djing session run breathing and we want it to be available to primary to secondary school, new ensembles, by ShivaNova every young person.’ disability, youth services, the youth justice system, Photographer: Lionel Heap and instrument provision. This is the message from Youth Music, champions of music-making for the under 18s. Youth Music Action Zones are generating opportunities for over 100,000 ‘hard to reach’ In less than three years, Youth Music has children and young people, in 20 locations awarded over £23 million from the Arts Council’s across the UK. National Lottery funds, giving one million young people, their families and communities At the Cornwall action zone, local music and the chance to enjoy high quality and culturally youth organisations and the Cornwall diverse music-making. Of the participants, Education Advisory Service are together 88% tried something entirely new to them. delivering a £500,000 programme, aiming to reach 3,000 young people. The programme’s Youth Music’s programmes are concentrated five strands range from developing the music in recognised areas of social and economic and movement skills of pre-school children in deprivation, offering music-making to those the rural Lizard area, to rock and pop who would not otherwise get the chance. Their workshops for 8–13 year olds. open programmes – First Steps, Music Maker, Plug into Music and Singing Challenge – and See www.youthmusic.org.uk for details. their research and development fund, focus
The Arts Council of England annual review and accounts A taste of our work 07 The Arts Council of England grant-in-aid accounts 1 April 2001–31 March 2002
Trustees’ report and foreword
Introduction during the year and monitored the work of The Arts Council of England is a registered the Chief Executive and staff. A number of charity, Charity Registration Number 1036733. advisory panels, while carrying no executive It was established by Royal Charter on 1 April authority, played an important role by 1994, taking over those responsibilities in providing advice from the arts constituency. England previously discharged by the Arts The Arts Council’s staff was led by the Chief Council of Great Britain. The objectives of the Executive and the other members of the Council as stated in the Royal Charter, its Executive Team. governing document, are to develop and improve the knowledge, understanding The Executive Team consisted of the Chief and practice of the arts and to increase Executive and four Executive Directors. The accessibility of the arts to the public. To this organisation’s structure was based on the end, during 2001/02 it made grants to arts following four directorates, each led and organisations and Regional Arts Boards, managed by an Executive Director: and engaged in other activities on behalf of the sector. •Arts •Communications The address of the principal office is 14 Great •Planning and Resources Peter Street, London SW1P 3NQ. The Council •Research and Development receives grant-in-aid from the Department for Culture, Media and Sport (DCMS) and is one In March 2002, the structure was amended of the bodies designated to distribute funds slightly, and the Planning and Resources from the National Lottery by the National directorate was replaced by Finance and Lottery etc. Act 1993 (as amended by the Resources. National Lottery Act 1998). Regional Arts Boards Grant-in-aid is distributed by the Council in Throughout 2001/02, the Regional Arts Boards support of the arts in accordance with the were independent companies, and grants objectives set out in the Royal Charter. to them from the Arts Council were subject to conditions set by the Council. The Council The Council works at arm’s length from made operating grants of £108 million to Government and has the status of a the Regional Arts Boards during the year, as Non-Departmental Public Body. As such it detailed in Note 4 of the accounts. In addition, is regulated in accordance with a Financial a number of specific grants were administered Memorandum issued by the Secretary of via the Regional Arts Boards. Details of these State. Accounts for grant-in-aid and lottery are disclosed in Schedule 1 to the accounts. are prepared separately in accordance with Accounts Directions also issued by the Merger of the Arts Council of England and Secretary of State. the Regional Arts Boards On 1 April 2002 the 1 1 organisations in the Internal structure during 2001/02 arts funding system in England, consisting During the year the governing body of the of the 10 Regional Arts Boards and the Arts Arts Council of England was the Council, which Council of England, merged to become one consisted of a Chairman and 1 1 members. legal entity. This entity is currently named the The Council met in formal session nine times Arts Council of England. The new body has
The Arts Council of England annual review and accounts 08 Grant-in-aid accounts Trustees’ report and foreword continued
nine regional offices, matching the During 2001/02 the Council incurred costs of Government’s regional boundaries, and a £2.15 million on the restructuring process. Of national office. Each region will have a council this, £0.86 million was charged to grant-in-aid with significant levels of delegated powers, in these accounts, the balance being charged and the 15-strong National Council, as detailed to the lottery accounts. Further costs will be below, includes the chair of each of the new incurred in 2002/03. Regional Councils. Executive Board membership The Arts Council was granted a Supplemental The Executive Board of the new organisation Charter on 31 May 2002. The purpose of this will be made up of the Chief Executive, Peter Supplemental Charter was ‘to give effect to Hewitt, the nine existing Regional Executive new arrangements for regionalisation of its Directors and the Executive Directors of the structure and activities’. There were no National Office: changes to the objects of the Council and the main changes relate to the Council’s powers Peter Hewitt, Chief Executive to establish and dissolve, and to delegate powers and functions to Regional Councils. Andrea Stark, Regional Executive Director, The Charter explains the new composition East England of the Council, which includes the chairs of Laura Dyer, Regional Executive Director, the Regional Councils and allows for the East Midlands possibility of remunerating these individuals Nigel Pittman, Interim Regional Executive in recognition of the additional work involved Director, London in those positions. Any such remuneration is Andrew Dixon, Regional Executive Director, subject to the specific approval of the Charity Northern Commission. The new Charter also specifies Michael Eakin, Regional Executive Director, regulations in relation to any Council member North West benefiting from any Arts Council funds and Felicity Harvest, Regional Executive Director, such cases are also subject to approval by Southern & South East the Charity Commission. Nick Capaldi, Regional Executive Director, South West The single organisation has been formed to Sally Luton, Regional Executive Director, deliver a number of benefits: West Midlands Andy Carver, Regional Executive Director, •greater leadership for the arts Yorkshire •greater financial flexibility and capacity to Kim Evans, Executive Director of Arts* respond to artistic ambition Wendy Andrews, Executive Director of •less red tape and greater simplicity for artists Communications* •a strengthened voice in making the case for Keith Harrison, Acting Executive Director the arts of Finance and Resources* •a reduction in administration costs, enabling Pauline Tambling, Executive Director of increased resources for the arts Research and Development*
Work to develop the internal structure of the *Interim members of Executive Board pending new organisation has been underway since announcements about future structures. 31 March 2002.
The Arts Council of England annual review and accounts Grant-in-aid accounts 09 Trustees’ report and foreword continued
Membership of Council
The members of the Arts Council are its Trustees. During the year and up to the date of the announcement of the new National Council the members were:
Member Date of appointment Date of resignation/retirement Gerry Robinson (Chair) January 1998 Renewed March 2001
Derrick Anderson June 1998 June 2001
David Brierley CBE November 1997 Renewed June 2000 May 2002
Deborah Bull CBE June 1998 May 2002
Emmanuel Cooper September 2000 May 2002
Antony Gormley OBE June 1998 June 2001
Anish Kapoor June 1998 May 2002
Joanna MacGregor June 1998 May 2002
Brian McMaster CBE June 2000 May 2002
Dr Janet Ritterman June 2000 May 2002
William Sieghart June 2000 May 2002
Hilary Strong June 1998 May 2002
David Brierley served as Chairman of the Audit and Remuneration Committees throughout 2001/02. Dr Janet Ritterman and Hilary Strong served as members of both committees throughout 2001/02.
The Arts Council of England annual review and accounts 10 Grant-in-aid accounts Trustees’ report and foreword continued
Membership of Council
On 1 June 2002 the new National Council of the Arts Council of England came into being. The Council consists of 15 members, nine of whom will also take on the role of chair of one of the Regional Councils as detailed below:
Member Regional Council Chair (if applicable) Gerry Robinson (Chair)
Sir Norman Adsetts OBE Yorkshire
Tom Bloxham MBE North West
Deborah Bull CBE
Paul Collard Northern
Deborah Grubb Southern & South East
Sue Woodford Hollick London
Professor Alan Livingston South West
Stephen Lowe East Midlands
Joanna MacGregor
Brian McMaster CBE
Elsie Owusu
William Sieghart
Professor Stuart Timperley East England
Dorothy Wilson West Midlands
Sir Norman Adsetts, Professor Alan Livingston and Dorothy Wilson have been appointed to serve on the Audit Committee during 2002/03 together with David Brierley and Ian Armitage as co-opted members.
The Arts Council of England annual review and accounts Grant-in-aid accounts 11 Trustees’ report and foreword continued
Chief Executive, Chairman and Council Reserves members appointment At 31 March 2002, the Arts Council had Gerry Robinson was appointed as Chairman unrestricted reserves of £8.9 million. The of the Arts Council on 1 May 1998 for an initial Council’s policy in relation to reserves is to term of three years, and re-appointed for a ensure that it holds sufficient funds to maintain further three year term on 20 March 2001. The liquidity, to cover unforeseen short-term Chief Executive, Peter Hewitt, was appointed emergency cash requirements of £2–3 million by the Council on 9 March 1998 for a period and to repay to DCMS grant-in-aid over of five years with the approval of the Secretary committed in previous years, which at of State for Culture, Media and Sport. 31 March 2002 was £6 million. The Council reviews this policy and its reserves position Council members are appointed by the annually during the budget-setting process. Secretary of State for Culture, Media and Sport for up to four years and are eligible for re- Employment and training policies and appointment for a further term of up to four years. staff participation The Arts Council is an organisation which is Review of the year committed to creating a working environment The DCMS provided grant-in-aid of that treats people with fairness and respect £252.5 million for the year. This includes and is free from discrimination, harassment £0.25 million towards the setting up of the and bullying. Policies and procedures are Creative Partnerships programme. geared towards eliminating direct and indirect discrimination and supporting employees in Creative Partnerships is a £40 million initiative reaching their full potential. that will develop long-term partnerships between schools, cultural and creative organisations and The Arts Council’s training and development artists. Activity will be focused in 16 areas of the programmes are designed to encourage and country over a period of two years, commencing support all employees in improving performance. in 2002/03. In recognition of the organisation’s positive approach to the recruitment and management The statement of financial activities funded from of staff with disabilities, the Arts Council has grant-in-aid shows a surplus of £1.4 million. This been awarded the ‘Two Ticks’ symbol by The surplus arose because some commitments were Employment Services. delayed from 2001/02 to 2002/03. Total grants awarded during the year were £239 million. 18.2% of staff classify themselves as Black, Asian or Chinese, and 4.1% of staff classify Grant-making policy themselves as disabled. The Arts Council awards and monitors grants in accordance with regulations set out in its The Arts Council has put in place arrangements Charter and Financial Memorandum. Grant- to promote effective consultation and making decisions are based on the Council’s communications with all staff. Executive Team objectives as stated in the Charter and the and Council activities are disseminated through current funding agreement between the Arts a system of team-briefing, supplemented Council of England and DCMS: ‘to promote from time to time by all staff meetings with the access, education and excellence in the arts Chief Executive and all staff communications through partnership’. bulletins. More formally, during 2001/02, the
The Arts Council of England annual review and accounts 12 Grant-in-aid accounts Trustees’ report and foreword continued
Arts Council recognised the trade union standard terms, usually 30 days. In 2001/02, Amicus for consultation and collective 81% of undisputed invoices were paid within bargaining, and established appropriate a 30 day period (2000/01: 76%). consultative machinery to support this. Forward funding/post balance sheet events Following the merger on 1 April 2002, a new In July 2000 the Arts Council was informed of national forum for managing issues with the the level of its grant-in-aid funding for 2002/03 unions has been put in place. The National and 2003/04. The Arts Council’s grant-in-aid Joint Consultative Negotiating Committee funding from the Department for Culture, (NJCNC) has a mandate to handle all core Media and Sport will be £295.4 million in pay, terms and conditions of employment, 2002/03 and £335.5 million in 2003/04. and corporate HR policies and procedures across the whole organisation. The new In July 2002, the DCMS announced future national forum replaces the 1 1 different funding for the arts of £378 million in 2004/05 arrangements that previously existed in the and £412 million in 2005/06. workplaces of the Arts Council of England and the 10 Regional Arts Boards for handling Statement of Trustees’ and Chief Executive’s management/union affairs. responsibilities Under the Royal Charter the Council is The Arts Council seeks to ensure that the required to prepare a statement of accounts requirements of health and safety legislation for the financial period in the form and on the are met in the workplace. Health and safety basis directed by the Secretary of State for issues of general concern are discussed Culture, Media and Sport, with the consent of with Amicus. HM Treasury. The accounts are to be prepared on an accruals basis and to show a true and Other matters fair view of the Council’s state of affairs at the The Co-operative Bank of 78–80 Corn Hill, year end and of its income and expenditure London EC3V 3NJ acts as the banker for the and cash flows for the financial year. The Arts Council of England. The Comptroller and Council is required to: Auditor General of 157–197 Buckingham Palace Road, Victoria, London SW1W 9SP is •observe the Accounts Direction issued by auditor to the Arts Council. Hewitt Bacon & the Secretary of State*, which sets out Woodrow of Parkside House, Ashley Road, accounting and disclosure requirements, Epsom, Surrey KT18 5BT act as actuaries for and apply suitable accounting policies on the Council’s pension scheme. a consistent basis •make judgements and estimates on a The Council maintains a register of interests reasonable basis of its members, which is available for public •state whether applicable accounting inspection by appointment at the Arts standards have been followed, and disclose Council’s Great Peter Street address. and explain any material departures in the financial statements The Council attempts to abide by the Better •prepare the financial statements on a going Payment Practice Code, and in particular to concern basis, unless it is inappropriate pay bills in accordance with contract. Invoices to presume that the Council will continue are normally settled within our suppliers’ in operation.
The Arts Council of England annual review and accounts Grant-in-aid accounts 13 Trustees’ report and foreword continued
The Accounting Officer for the Department for Culture, Media and Sport has designated the Chief Executive as Accounting Officer for the Council. The relevant responsibilities as Accounting Officer, including the responsibility for the propriety and regularity of the finances for which the Chief Executive is answerable and for the keeping of proper records, are set out in the Non-Departmental Public Bodies’ Accounting Officers’ Memorandum, issued by HM Treasury.
Peter Hewitt Chief Executive 7 October 2002
Gerry Robinson Chairman 7 October 2002
*A copy of the Accounts Direction is available from the Accounting Officer, Arts Council of England, 14 Great Peter Street, London SW1P 3NQ.
The Arts Council of England annual review and accounts 14 Grant-in-aid accounts Statement on internal control
As Accounting Officer and representative by an analysis of the risk to which the Council of the trustees, we acknowledge our is exposed and annual internal audit plans are responsibility for ensuring a sound system based on this analysis. The analysis of risk and of internal control that: the internal audit plans are endorsed by the Council’s Audit Committee and approved by •supports the achievement of the Arts Council us. At least annually, the Head of Internal Audit of England’s objectives while (HIA) provides us with a report on internal audit •safeguarding the public funds and assets activity in the Council. The report includes the for which we are responsible and in HIA’s independent opinion on the adequacy accordance with the responsibilities and effectiveness of the Council’s system of assigned to the Accounting Officer in internal control. Government Accounting, and •ensuring compliance with the requirements Our review of the effectiveness of the system of of the Arts Council of England’s Financial internal control is informed by: the work of the Memorandum. internal auditors; the Audit Committee, which oversees the work of the internal auditors; the The system can provide only reasonable executive managers within the body who and not absolute assurance that assets are have responsibility for the development and safeguarded, transactions authorised and maintenance of the control framework; and properly recorded, and that material errors comments made by the external auditors in or irregularities are either prevented or would their management letter and other reports. be detected within a timely period. The system of internal control is based on an The system of internal control is designed ongoing process designed to: identify the to manage rather than eliminate the risk of principal risks to the achievement of policies, failure to achieve these objectives; it can aims and objectives; evaluate the nature and therefore only provide reasonable and not extent of those risks; and manage them absolute assurance of effectiveness. efficiently, effectively and economically. We expect to have the procedures in place A risk management policy was approved in March 2003 necessary to implement by the Executive Team of the Arts Council of HM Treasury guidance. This takes account of England in January 2001. In accordance with the time needed to fully embed the processes this policy a risk register was developed in which the Arts Council of England has agreed consultation with senior management, and should be established, and improve their was discussed by the Executive Team and the robustness. Audit Committee during the year. Peter Hewitt Work is now in progress to address the agreed Chief Executive actions arising from the review of the risk 7 October 2002 register, and to update it on a regular basis. Gerry Robinson The Arts Council of England has internal Chairman auditors who operate to standards defined 7 October 2002 in the Government Internal Audit Manual. The work of the internal auditors is informed
The Arts Council of England annual review and accounts Grant-in-aid accounts 15 The Certificate of the Comptroller and Auditor General to the Trustees and to the Houses of Parliament
I certify that I have audited the financial financial statements. I consider the statements on pages 18 to 34. These financial implications for my certificate if I become statements have been prepared in the form aware of any apparent misstatements or directed by the Secretary of State and material inconsistencies with the financial approved by HM Treasury; they have been statements. prepared under the historic cost convention as modified by the revaluation of certain I review whether the statement on page 15 fixed assets at their value to the business by reflects the Arts Council of England’s reference to current costs and the accounting compliance with HM Treasury’s guidance, policies set out on pages 21 and 22. ‘Corporate governance: statement on the system of internal control’. I report if it does Respective responsibilities of the Trustees, not meet the requirements specified by Chief Executive and Auditor HM Treasury, or if the statement is misleading As described on pages 13 and 14, the Trustees or inconsistent with other information I am and the Chief Executive of the Arts Council of aware of from my audit of the financial England are responsible for the preparation statements. of the financial statements and for ensuring the regularity of financial transactions funded Basis of audit opinion by Parliamentary grant (grant-in-aid). The I conducted my audit in accordance with Trustees and the Chief Executive are also United Kingdom Auditing Standards issued by responsible for the preparation of the other the Auditing Practices Board. An audit includes contents of the annual review. My examination, on a test basis, of evidence responsibilities, as independent auditor, relevant to the amounts, disclosures and are established by statute and guided by the regularity of financial transactions included Auditing Practices Board and the auditing in the financial statements. It also includes profession’s ethical guidance. an assessment of the significant estimates and judgements made by the Council and I report my opinion as to whether the financial the Chief Executive in the preparation of the statements give a true and fair view and financial statements, and of whether the are properly prepared in accordance with accounting policies are appropriate to the directions made by the Secretary of State and Council’s circumstances, consistently applied applicable requirements of the Charities Act and adequately disclosed. 1993, and whether in all material respects the expenditure and income have been applied I planned and performed my audit so as to to the purposes intended by Parliament and obtain all the information and explanations the financial transactions conform to the which I considered necessary in order to authorities which govern them. I also report if, provide me with sufficient evidence to give in my opinion, the Foreword is not consistent reasonable assurance that the financial with the financial statements, if the Arts statements are free from material Council of England has not kept proper misstatement, whether caused by error, or accounting records, or if I have not received by fraud or other irregularity and that, in all all the information and explanations I require material respects, the expenditure and for my audit. I read the other information income have been applied to the purposes contained in the annual review and consider intended by Parliament and the financial whether it is consistent with the audited transactions conform to the authorities which
The Arts Council of England annual review and accounts 16 Grant-in-aid accounts The Certificate of the Comptroller and Auditor General to the Trustees and to the Houses of Parliament continued
govern them. In forming my opinion I have also evaluated the overall adequacy of the presentation of information in the financial statements.
Opinion In my opinion: •the financial statements give a true and fair view of the state of affairs of the Arts Council of England at 31 March 2002 and of its incoming resources and application of resources including its income and expenditure, and cash flows for the year then ended and have been properly prepared in accordance with the Directions made by the Secretary of State for Culture, Media and Sport, and the applicable requirements of the Charities Act 1993; and •in all material respects the expenditure, income and resources funded by grant-in- aid have been applied to the purposes intended by Parliament and the financial transactions conform to the authorities which govern them.
John Bourn Comptroller and Auditor General 15 October 2002
National Audit Office 157–197 Buckingham Palace Road Victoria, London SW1W 9SP
The Arts Council of England annual review and accounts Grant-in-aid accounts 17 Statement of financial activities For the year ended 31 March 2002
Note Unrestricted Restricted Total Total funds funds 2001/02 2000/01 As restated £000s £000s £000s £000s Incoming resources Activities in furtherance of the Arts Council of England’s objectives: Grant-in-aid income 2 251,205 250 251,455 237,155 Investment income 336 – 336 410 Other incoming resources 3 290 634 924 496 Total incoming resources 251,831 884 252,715 238,061 Resources expended Charitable expenditure Grant commitments made in the year 4 238,839 568 239,407 232,955 Less: lapsed and revoked commitments (336) – (336) (657) Net grant commitments 238,503 568 239,071 232,298 Other arts expenditure 5 4,707 433 5,140 3,91 7 Support costs 6 5,419 – 5,419 4,927 Management and administration 6 9,672 – 9,672 9,030 Resources expended before costs apportioned to lottery 258,301 1,001 259,302 250,1 72 Costs apportioned to Arts Council of England lottery accounts 13 (8,866) – (8,866) (9,109) Total resources expended 249,435 1,001 250,436 241,063 Net incoming/(outgoing) resources before exceptional items 2,396 (1 1 7) 2,279 (3,002) Exceptional items Cost of fundamental reorganisation 30 (861) – (861) – Net incoming/(outgoing) resources after exceptional items 1,535 (1 1 7) 1,418 (3,002) Notional costs Cost of capital 10 (707) – (707) (749) Net incoming/(outgoing) resources after notional costs 828 (1 1 7) 71 1 (3,751) Reversal of notional costs 707 – 707 749 Transfers between reserves (128) 128 – – Net incoming/(outgoing) resources for the year 11 1,407 1 1 1,418 (3,002) Gain/(loss) on investment assets –––7 Gain on revaluation of tangible fixed assets –––161 Net movement in funds 1,407 1 1 1,418 (2,834) Balance brought forward at 1 April 2001 7,516 3,557 1 1,073 13,907 Balance carried forward at 31 March 2002 8,923 3,568 12,491 1 1,073
Summary of income and expenditure account For the year ended 31 March 2002 2001/02 2000/01 £000s £000s Gross income of continuing operations 252,710 238,054 Gain on sale of fixed assets 5 7 Total income of continuing operations 252,715 238,061 Total expenditure of continuing operations 251,297 241,063 Net income/(expenditure) before investment asset and revaluation gains 1,418 (3,002)
The notes on pages 21 to 34 form part of these accounts.
The Arts Council of England annual review and accounts 18 Grant-in-aid accounts Balance sheet As of 31 March 2002
Note Unrestricted Restricted Endowment Total Total funds funds funds 31 March 31 March 2002 2001 £000s £000s £000s £000s £000s Fixed assets Tangible assets 12 4,407 – 213 4,620 4,515 Investments 14 ––––– 4,407 – 213 4,620 4,515
Current assets Stocks 15 10––1025 Debtors 16 1,283 234 – 1,51 7 924 Grant-in-aid debtor 2 1,000 – – 1,000 1,000 Due from Arts Council lottery accounts 1,927 – – 1,927 2,066 Grants paid in advance 5,926 – – 5,926 5,455 Cash at bank and in hand 3,021 155 – 3,1 76 3,826 13,167 389 – 13,556 13,296
Creditors: amounts falling due within one year Grants outstanding 7,281 – – 7,281 10,960 Creditors 1 7 3,278 – – 3,278 1,652 10,559 – – 10,559 12,612 Net current assets 2,608 389 – 2,997 684 Grant-in-aid receivable in more than one year 2 4,874 – – 4,874 5,874 Total assets less current liabilities 1 1,889 389 213 12,491 1 1,073
Represented by income funds 23 Unrestricted fund 8,923 – – 8,923 7,516 Restricted fund – 389 – 389 558
Represented by capital funds 23 Designated fund 2,966 – – 2,966 2,838 Donated asset reserve – – 213 213 161 1 1,889 389 213 12,491 1 1,073
The notes on pages 21 to 34 form part of these accounts.
Peter Hewitt Chief Executive 7 October 2002
Gerry Robinson Chairman 7 October 2002
The Arts Council of England annual review and accounts Grant-in-aid accounts 19 Cash flow statement For the year ended 31 March 2002
Note 2001/02 2000/01 £000s £000s Operating activities Grant-in-aid received 252,455 238,1 79 Other cash receipts 867 587 Grants paid to arts organisations and other bodies (243,222) (230,912) Cash paid to and on behalf of employees (6,995) (6,366) Net cash movements relating to the Arts Council lottery accounts 140 (282) Other cash payments (net) (3,162) (1,389) Net cash movements relating to exceptional items: cost of a fundamental reorganisation (861) – Net cash (outflow) from operating activities 24 (778) (183) Returns on investments and servicing of finance Interest received on short-term cash deposits 357 429 Net cash inflow from returns on investments 357 429 Capital expenditure and financial investment Proceeds from sale of investment – 65 Purchase of tangible fixed assets (234) (384) Proceeds from sale of fixed assets 5 7 Net cash outflow from capital expenditure (229) (312) (Decrease) in cash 25 (650) (66)
The notes on pages 21 to 34 form part of these accounts.
The Arts Council of England annual review and accounts 20 Grant-in-aid accounts Notes to the grant-in-aid accounts
1 Accounting policies c) Expenditure a) Basis of accounts Grant expenditure is charged to the statement The accounts have been prepared in accordance of financial activities in the year in which funded with the revised Accounts Direction issued by the activities take place. Any amounts unpaid from Secretary of State for Culture, Media and Sport in grants at the year end are shown in the balance May 2002. They meet the requirements of the sheet as creditors, and any advance payments Companies Acts, and of the Statements of Standard to funded organisations in anticipation of grants Accounting Practice/Financial Reporting Standards to be charged in the following financial year are issued and adopted by the Accounting Standards shown as assets in the balance sheet. Board, so far as those requirements are appropriate. The accounts are presented in accordance with Other arts expenditure relates to expenditure the Statement of Recommended Practice (SORP) directly in support of the arts which is incurred issued by The Charity Commission in October directly, rather than via payment of grant. This 2000. In order to comply with this statement, includes the cost of delivering major arts policies changes have been made to the presentation and projects. No staff costs are included in other of the statement of financial activities and the arts expenditure. comparatives have been amended accordingly. Support costs comprise operational expenditure, The accounts are prepared on a historic cost basis. including staff costs, directly attributable to The Accounts Direction requires the inclusion of charitable activities. fixed assets at their value to the business by reference to current costs. However, for 2001/02 Management and administration costs are those the values of fixed assets expressed in current incurred in connection with the management of cost terms, with the exception of freehold land the Council’s assets, corporate support services and buildings, are not materially different to and compliance with constitutional and statutory historic costs. Therefore, these fixed assets are requirements. shown at historic cost on the balance sheet. Freehold land and buildings were revalued at d) Depreciation and fixed assets 31 March 2001 to current market value and are Depreciation is provided on all tangible fixed included at this valuation on the balance sheet. assets (excluding freehold land and works of art) at rates calculated to write off the cost Separate accounts have been prepared for the less estimated residual value of each asset Council’s lottery activities, in accordance with the systematically over its expected useful life directions issued by the Secretary of State. as follows: Consolidated accounts have not been prepared. Freehold buildings 50 years b) Incoming resources Leasehold buildings life of the lease All income is accounted for on a receivable basis. Equipment, fixtures and fittings four years Grant-in-aid from the Department for Culture, Motor vehicles four years Media and Sport allocated to general purposes is taken to the statement of financial activities in A full year’s depreciation is provided in the year of the year to which it is received. an asset’s acquisition, and none in the year of its disposal. Software costs are written off in full in the year of acquisition.
The Arts Council of England annual review and accounts Grant-in-aid accounts 21 Notes to the grant-in-aid accounts continued
All individual assets with a value greater than The notes to the statement of financial activities £2,000 are capitalised. are shown before costs apportioned to the Arts Council lottery accounts. Donated fixed assets are capitalised and included as income at market value in the year j) Notional costs in which they were received. In accordance with HM Treasury guidance, the notional cost of capital is charged in the e) Stocks statement of financial activities in arriving at a Stocks are stated at the lower of cost and net net incoming/(outgoing) resources figure. This realisable value, which is based on anticipated is then added back in the statement of financial future sales. activities, and so no provision is included on the balance sheet. f) Leases Costs in respect of operating leases are charged to the income and expenditure account on a straight line basis over the life of the lease. g) Taxation The Arts Council of England is a registered charity (No. 1036733) and is eligible under Income and Corporation Taxes Act 1988 to seek from the Inland Revenue exemption from taxes on income arising from its charitable objectives. The Inland Revenue has granted this exemption. Accordingly, no taxation has been provided for in these accounts. h) Pensions The Arts Council provides a defined benefit pension scheme for its employees. However, as a multi-employer scheme, the Council is unable to identify its share of the underlying assets and liabilities. The scheme has therefore been accounted for as if it were a defined contribution scheme, in accordance with FRS1 7 ‘Retirement Benefits’, with the costs of the scheme charged to the statement of financial activities. i) Apportioned costs The Arts Council incurs indirect costs which are shared between activities funded from the grant-in-aid and activities funded from the National Lottery. It is required to apportion indirect costs properly between the two activity areas on a full cost basis in accordance with good accounting practice.
The Arts Council of England annual review and accounts 22 Grant-in-aid accounts Notes to the grant-in-aid accounts continued
2 Grant-in-aid income Unrestricted Restricted Total Total funds funds 2001/02 2000/01 £000s £000s £000s £000s Cash grant-in-aid voted by Parliament and paid in full 252,205 – 252,205 237,229 Creative Partnerships – 250 250 – 252,205 250 252,455 237,229
Department for Education and Skills –––950
Less: grant-in-aid receivable at 31 March 2001 6,874 – 6,874 7,898 245,331 250 245,581 230,281 Plus: grant-in-aid receivable outstanding as at 31 March 2002* 5,874 – 5,874 6,874 Grant-in-aid as shown in the statement of financial activities 251,205 250 251,455 237,155
*Of the grant-in-aid receivable balance at 31 March 2002 £4,874,000 is receivable in over one year.
3 Other incoming resources Unrestricted Restricted Total Total funds funds 2001/02 2000/01 £000s £000s £000s £000s Grants, sponsorship and donations received –507507216 Donated assets: works of art –5252 – Conference fees 2–2 1 Publications and royalties 42 – 42 54 Profit on sale of fixed assets 5–57 Film production income 26 75 101 89 Sundry 215 – 215 129 290 634 924 496
Grants, sponsorship and donations are analysed as follows:
£000s £000s £000s £000s Arts 2000 –1515 – Arts Council of Wales –33– Arts Council of Northern Ireland –33– BBC –2525 – British Council –303030 Calouste Gulbenkian Foundation –464625 David Cohen Trust –151515 Henry Moore Foundation –142142 – Mackintosh Foundation –––100 Paul Hamlyn –1515 – Regional Arts Boards –776 Scottish Arts Council –135135 5 Various theatres –191920 Youth Justice Board England & Wales –1515 – Others –3737 15 –507507216
The Arts Council of England annual review and accounts Grant-in-aid accounts 23 Notes to the grant-in-aid accounts continued
4 Grants Unrestricted Restricted Total Total funds funds 2001/02 2000/01 Grants by area of activity £000s £000s £000s £000s Audience Development 1,054 208 1,262 5,151 Collaborative Arts 390 46 436 458 Cross-Artform 41,275 – 41,275 41,634 Dance 1 7,634 – 1 7,634 1 7,982 Drama 30,273 16 30,289 29,947 Literature 1,469 – 1,469 1,498 Music 29,91 1 – 29,91 1 29,924 Research and Development 1,551 – 1,551 790 Touring 2,1 1 7 – 2,1 1 7 972 Visual Arts 5,185 298 5,483 6,067 See Schedule 1 for detail 130,859 568 131,427 134,423
Core grants to Regional Arts Boards East England Arts 6,552 – 6,552 5,876 East Midlands Arts 7,290 – 7,290 6,543 London Arts 28,456 – 28,456 25,780 Northern Arts 9,726 – 9,726 8,939 North West Arts 14,931 – 14,931 13,715 Southern Arts 8,677 – 8,677 7,567 South East Arts 4,423 – 4,423 3,737 South West Arts 7,258 – 7,258 6,379 West Midlands Arts 10,857 – 10,857 10,050 Yorkshire Arts 9,810 – 9,810 8,996 107,980 – 107,980 97,582
Included in the above is £526,000 granted to the Regional Arts Boards to cover costs relating to the reorganisation of the arts funding system.
Interim funding scheme Dance and Drama –––950
Total grants 238,839 568 239,407 232,955
5 Other arts expenditure analysed by Arts Council directorates Unrestricted Restricted Total Total funds funds 2001/02 2000/01 £000s £000s £000s £000s Arts 2,432 122 2,554 2,424 Research and Development 1,488 31 1 1,799 783 Communications 787 – 787 710 4,707 433 5,140 3,91 7
The Arts Council of England annual review and accounts 24 Grant-in-aid accounts Notes to the grant-in-aid accounts continued
6 Support costs and management and administration Support Management Total Total costs and 2001/02 2000/01 administration £000s £000s £000s £000s Staff costs 4,209 2,650 6,859 6,282 Depreciation –181 181 463 Travelling, subsistence and entertainment 368 168 536 569 Rent and rates – 2,452 2,452 2,093 Publicity and promotions 7 26 33 294 Agency staff costs 285 1,573 1,858 1,036 Professional fees 92 339 431 584 Office and sundry 226 967 1,193 1,416 Irrecoverable Value Added Tax 232 1,316 1,548 1,220 5,419 9,672 15,091 13,957
7 Staff costs 2001/02 2000/01 £000s £000s Salaries and wages 5,779 5,225 Employer’s National Insurance 474 436 Arts Council Retirement Plan (1994) 735 621 6,988 6,282
Staff costs include the sum of £130,000 which relates directly to the team working on the fundamental reorganisation. The Chairman, Council and Panel Members were not paid for their services. In the course of discharging their duties Council members assess artistic work. This assessment involves attending music, dance, drama and other performances, as well as attending poetry readings, films, exhibitions and galleries etc. The cost of tickets for these performances and events is met by the Arts Council of England. In 2001/02, the total cost of tickets purchased for this purpose was £14,000 (year ended 31 March 2001: £13,000).
The average number of employees during the year was made up as follows:
2001/02 2000/01 Management and administration 40 47 Direct charitable activities 141 116 181 163
The number of employees whose emoluments exceed £50,000 for the year are detailed below. These figures do not include Executive Directors who are listed separately in Note 8 below.
2001/02 Emoluments for the year Number of staff £50,000 to £59,999 11 £60,000 to £69,999 1
All the above employees have retirement benefits accruing under a defined benefit scheme.
The Arts Council of England annual review and accounts Grant-in-aid accounts 25 Notes to the grant-in-aid accounts continued
8 Executive Directors’ remuneration The remuneration of the Executive Directors of the Arts Council of England for the year ended 31 March 2002 was as follows:
Salary Pension Benefits Bonus Total Total in kind remuneration remuneration 2001/02 2000/01 £000s £000s £000s £000s £000s £000s Peter Hewitt (Chief Executive)* 105 13 1 1 1 130 141 Wendy Andrews (Communications) 72 10 – 4 86 84 Kim Evans (Arts) 125 13 – 7 145 145 Graham Long (Planning and Resources) 72 10 1 6 89 86 Pauline Tambling (Research and Development) 54 7 – 7 68 84 Ann Bridgwood (Research and Development) 15 2 – – 17 – Keith Harrison (Finance and Resources) 1 – – – 1 – 444 55 2 35 536 540
*Peter Hewitt’s 2000/01 remuneration includes £13,000 of back-dated salary together with £2,000 pension contributions relating to 1999/2000 which was awarded in October 2000.
Peter Hewitt, Wendy Andrews and Pauline Tambling are on five year service contracts. Kim Evans is on a permanent contract.
Keith Harrison became Acting Executive Director of Finance and Resources on 25 March 2002. Ann Bridgwood became Acting Executive Director of Research and Development on 1 January 2002, following Pauline Tambling’s secondment to the team working on the restructuring of the organisation.
Details of the pension entitlements for the Executive Directors of the Arts Council of England for the year ended 31 March 2002 (period ending 31 December 2001 in the case of Pauline Tambling) were as follows:
Age Accrued Pension Accrued Pension pension increase in pension increase in the year 2000/01 the year (net of inflation) (net of inflation) 2000/01 Years £000s £000s £000s £000s Peter Hewitt (Chief Executive) 50 19 5 14 6 Wendy Andrews (Communications) 44 10 4 63 Kim Evans (Arts) 51 12 5 75 Graham Long (Planning and Resources) 44 13 4 93 Pauline Tambling (Research and Development) 46 14 3 11 4 Ann Bridgwood (Research and Development) 52 1 1 –– Keith Harrison (Finance and Resources) 42–––– 69 22 47 21
No retirement benefits are payable to scheme members who retire before completing two years pensionable employment.
The Arts Council of England annual review and accounts 26 Grant-in-aid accounts Notes to the grant-in-aid accounts continued
9 Pensions The scheme is a defined benefit scheme. However, as a multi-employer scheme, the Arts Council of England is unable to identify its share of the underlying assets and liabilities. The scheme has therefore been accounted for as if it were a defined contribution scheme, in accordance with FRS1 7 ‘Retirement Benefits’.
The scheme is financed by payments by the Arts Council of England and employees into a trustee-administered fund independent of the Arts Council of England’s finances. These contributions are invested by a leading fund management company. The net market value of scheme assets at 31 March 2002 was £27,773,000.
An actuarial valuation of the Pension Fund takes place every three years. The last valuation was at 1 April 1999. At this date the actuarial value of the assets using the projected unit method was sufficient to cover 91% of the value accrued to members (a deficit of £2,100,000). Following completion of the 1999 valuation, and on the advice of the actuary, the employer’s contribution was increased to 13.5% with effect from 1 April 2000 for a period of 15 years in order to meet the Minimum Funding Requirement of the Pensions Act 1995. An actuarial valuation is currently being undertaken and any identified shortfall will be met by future contributions.
The principal long-term assumptions used for the purposes of the actuarial valuation were as follows:
Rate of return on assets 8.0% Rate of pay increases 5.5% Rate of pension increases 4.0%
The amount due to the Fund at 31 March 2002 was £68,000 ( 2001: £70,000), which represented the employer’s contribution for March.
10 Notional costs Notional cost of capital is calculated as 6% of the average net assets employed by the Arts Council in the year.
1 1 Net outgoing resources for the year 2001/02 2000/01 £000s £000s Net outgoing resources are stated after charging: (a) Auditors’ remuneration 42 39 (b) Operating leases 2,083 1,996 (c) Council members’ travel, subsistence and hospitality 14 23 (d) Insurance: trustees and senior officers indemnity 4 4
The Arts Council of England annual review and accounts Grant-in-aid accounts 27 Notes to the grant-in-aid accounts continued
12 Tangible fixed assets Land and Equipment Vehicles Works Total buildings fixtures of art and fittings £000s £000s £000s £000s £000s Costs at 1 April 2001 2,168 1,158 14 2,999 6,339 Additions – 106 – 180 286 Less: disposals – (600) – – (600) Cost at 31 March 2002 2,168 664 14 3,1 79 6,025
Depreciation at 1 April 2001 795 1,025 4 – 1,824 Less: depreciation on disposals – (600) – – (600) Provided for 2001/02 77 100 4 – 181 Depreciation at 31 March 2002 872 525 8 – 1,405
Net book value at 31 March 2002 1,296 139 6 3,1 79 4,620
Net book value at 31 March 2001 1,373 133 10 2,999 4,515
Freehold land and buildings were professionally valued by George Trollope Chartered Surveyors as at 31 March 2001 at open market value of £435,000. On a historic cost basis the net book value of these assets at 31 March 2002 would have been £273,000. The Arts Council of England is not aware of any material change in the value of freehold land and buildings during the year.
The net book value of land and buildings comprises:
31 March 2002 31 March 2001 £000s £000s Freehold 427 435 Short leasehold improvements 869 938 1,296 1,373
Art Collection The Arts Council Collection has been valued by the curator at £30,835,000 at 31 March 2002 (2001: £28,928,000).
The purpose of the Collection is to increase the understanding and appreciation of contemporary art and to widen the audience for contemporary art through loans to other galleries, public institutions and exhibitions. It is not held for investment or resale, and is shown on the balance sheet at cost.
13 Costs apportioned to Arts Council of England lottery accounts Directions issued by the Secretary of State require that costs incurred which relate to both grant-in-aid and lottery activities should be apportioned between the two in accordance with good accounting practice. Such costs are apportioned between the Arts Council’s grant-in-aid and lottery accounts, based on an assessment of time spent on each activity.
The Arts Council of England annual review and accounts 28 Grant-in-aid accounts Notes to the grant-in-aid accounts continued
14 Investments The movement on the investment in the Equities Investment Fund for Charities was as follows:
2001/02 2000/01 £000s £000s Market value brought forward at 1 April – 58 Loss due to change in market value – – Disposed of in year – (58) Market value carried forward at 31 March – –
On 31 March 1994 the Arts Council of Great Britain transferred ownership to the Arts Council of England of 5,870 Charifund Units valued at £41,000 on that date. The historical cost transferred was £3,000.
On 28 March 2001 all 5,870 units were disposed of for proceeds totalling £65,000.
15 Stock 31 March 2002 31 March 2001 £000s £000s Publications 10 25
16 Debtors 31 March 2002 31 March 2001 £000s £000s Trade debtors 232 228 Other debtors 63 38 Prepayments and accrued income 1,222 658 1,517 924
1 7 Creditors: amounts falling due within one year 31 March 2002 31 March 2001 £000s £000s Trade creditors 1,460 330 Other creditors including taxes and social security 40 186 Accruals and deferred income 1,778 1,136 3,278 1,652
18 Grant offers 31 March 2002 31 March 2001 £000s £000s Forward funding: 2001/02 – 224,901 2002/03 191,488 – 2003/04 61,448 – 252,936 224,901
These figures represent the total value of the grants offered for the years indicated at 31 March 2002.
The Arts Council of England annual review and accounts Grant-in-aid accounts 29 Notes to the grant-in-aid accounts continued
19 Leases At 31 March 2002 the Arts Council had annual commitments under non-cancellable operating leases as set out below.
Land and Land and buildings buildings 31 March 2002 31 March 2001 £000s £000s Operating leases which expire: within one year 177 389 within two and five years inclusive 1,153 20 over five years 1,314 1,676 2,644 2,085
20 Capital commitments There were no contracted capital commitments at 31 March 2002 (2001: £nil).
21 South Bank Centre lease The Arts Council owns the freeholds of the National Film Theatre, the Museum of the Moving Image, the Hayward Gallery, the Queen Elizabeth Hall, the Purcell Room and the Royal Festival Hall, which are leased to the South Bank Centre. The lease is long-term and requires no rental payments. Since none of the risks and rewards of ownership rest with the Arts Council no value has been placed on these assets in these accounts.
22 Royal National Theatre lease The Arts Council owns the freehold of the Royal National Theatre, which is leased and occupied by the Royal National Theatre Board Limited. The lease is long-term and requires no rental payments. Since none of the risks and rewards of ownership rest with the Arts Council no value has been placed on these assets in these accounts.
23 Reconciliation of movements in funds At 1 April Income Expenditure Other Transfers At 31 March 2001 movements 2002 £000s £000s £000s £000s £000s £000s Income funds Unrestricted fund 7,355 251,831 (250,296) – (128) 8,762 Revaluation reserve 161 ––––161 Restricted fund 558 832 (1,001) – – 389
Capital funds Designated fund 2,838 – – – 128 2,966 Donated asset reserve 161 52–––213 1 1,073 252,715 (251,297) – – 12,491
The Arts Council of England annual review and accounts 30 Grant-in-aid accounts Notes to the grant-in-aid accounts continued
23 Reconciliation of movements in funds continued Description of funds Income funds a) Unrestricted fund Grant-in-aid is received from the Department for Culture, Media and Sport. This is the Arts Council’s main source of income, and is supplemented by other income. This fund is applied to arts expenditure and the running costs of the Arts Council. b) Revaluation reserve This fund relates to the revaluation of freehold property. See note 12. c) Restricted fund The Arts Council receives grants, sponsorship and donations from various sources for specific activities. Any such income and associated expenditure is identified separately. The balance is represented as follows:
31 March 2002 31 March 2001 £000s £000s British Council 5 37 Department for Culture, Media and Sport 13 506 David Cohen Trust 26 15 Scottish Arts Council 125 – Calouste Gulbenkian Foundation 39 – Henry Moore Foundation 109 – Other 72 – 389 558
Capital funds a) Designated fund This fund relates to capital expenditure on works of art allocated from the unrestricted fund. b) Donated asset reserve This fund relates to donations received by the Arts Council for the purpose of obtaining works of art for its collection.
24 Cash flow reconciliation Reconciliation of operating surplus/(deficit) to net cash outflow from operating activities.
2001/02 2000/01 £000s £000s Operating surplus/(deficit) 1,418 (2,834) Interest receivable (336) (410) Depreciation charges 181 463 (Profit) on disposal of fixed assets (5) (7) (Profit) on disposal of investment – (7) (Gain) on revaluation of fixed assets – (161) Donated assets: works of art (52) – Decrease in stocks 15 5 Decrease in debtors and prepayments 526 876 (Increase)/decrease in grants paid in advance (472) 2,460 (Decrease) in grants outstanding (3,679) (1,074) Increase in creditors 1,626 506 Net cash (outflow) from operating activities (778) (183)
The Arts Council of England annual review and accounts Grant-in-aid accounts 31 Notes to the grant-in-aid accounts continued
25 Reconciliation of net cash flow to movement in funds 2001/02 2000/01 £000s £000s (Decrease) in cash in the year (650) (66) Funds at 1 April 3,826 3,892 Funds at 31 March 3,1 76 3,826
26 Analysis of net cash 1 April 2001 Cash flow 31 March 2002 £000s £000s £000s Cash 3,826 (650) 3,1 76
27 Efficiency target performance Ordinarily, the Arts Council is set an efficiency target performance indicator by the Department for Culture, Media and Sport (DCMS). In view of the ongoing reorganisation of the arts funding system, no efficiency target performance indicator was set by DCMS for 2001/02.
28 Related parties The Arts Council of England maintains publicly available registers in which Council members declare their interests, including any direct interests in grant applications made to the Arts Council and commercial relationships with the Arts Council. The following interests in grant recipients were declared for the year ended 31 March 2002:
Grant Balance Organisation Council Member Relationship awarded for outstanding at the year ended 31 March 2002 31 March 2002 £000s £000s 10,271 181 Royal Shakespeare Company David Brierley CBE Advisory director – 10 St Ives International Trustee 20,500 10 The Royal Opera House Deborah Bull CBE Employee 15,695 20 The South Bank Centre Board member 79 15 Random Dance Company Board member 165 41 Foundation for Community Dance Patron 23 3 Nottingham Theatre Trust Ltd Anish Kapoor Public art commission 16 6 COMA Joanna MacGregor Board member 70 4 Society for the Promotion of New Music Director 1 10 1 National Opera Studio Brian McMaster CBE Chairman 13,31 7 1 1 English National Opera Dr Janet Ritterman Board member 50 5 Forward Literature Trust William Sieghart Chairman
The Arts Council of England annual review and accounts 32 Grant-in-aid accounts Notes to the grant-in-aid accounts continued
28 Related parties continued Executive Directors and senior managers in the Arts Council are also required to declare any direct interests in grant applications made to the Arts Council of England and commercial relationships with the Arts Council. The following interests in grant recipients were declared for the year ended 31 March 2002:
Grant Balance Organisation Executive Director/ Relationship awarded for outstanding at senior manager the year ended 31 March 2002 31 March 2002 £000s £000s 64 8 Royal College of Art Marjorie Allthorpe-Guyton Honorary Fellow – 2 Africa Centre Hilary Carty Family member is employee 13,31 7 1 1 English National Opera Graham Long Became Operations Director of ENO in April 2002
The Department for Culture, Media and Sport is the sponsoring department for the Arts Council of England and is regarded as a related party. Regional Arts Boards and the National Foundation for Youth Music are similarly regarded as related parties by virtue of their funding relationship with the Arts Council of England. During the year the Arts Council of England had material transactions with other Government departments and other UK lottery distributors including the Scottish Arts Council and the Arts Council of Wales. The Arts Council of England also had various transactions with the British Film Institute, the Crafts Council and the London Film and Video Development Agency for which the Department for Culture, Media and Sport is considered the sponsoring department.
29 Financial instruments FRS13, derivatives and other financial instruments, requires disclosure of the role which financial instruments have had during the period, in creating or changing the risks the entity faces in undertaking its activities.
As permitted by FRS13, debtors and creditors which mature or become payable within 12 months of the balance sheet date have been omitted from this note. a) Liquidity risk All the Arts Council’s liabilities are covered by current assets. As a result the Arts Council is not exposed to significant liquidity risks. b) Interest rate risk The cash balance of £3,1 76,000 at 31 March 2002 was held in an instant access variable rate bank account which carries an interest rate of 0.25% below the base rate. c) Foreign currency risk The Arts Council of England’s exposure to foreign currency risk is not significant.
The Arts Council of England annual review and accounts Grant-in-aid accounts 33 Notes to the grant-in-aid accounts continued
30 Post balance sheet event On 1 April 2002, the arts funding system in England underwent a major reorganisation. The 10 Regional Arts Boards transferred their assets and liabilities as detailed in the table below to the Arts Council of England.
All Regional Arts Boards will be wound up once all residual matters have been resolved. Costs relating to the merger totalling £2,152,000 have been apportioned as follows: £861,000 to the grant-in-aid accounts and £1,291,000 to the lottery distribution accounts. The sum of £861,000 has been disclosed separately in the statement of financial activities as an exceptional item. The majority of these costs relate to professional fees.
Net Net Lottery grant-in-aid Net assets at assets at assets at 31 March 2002 31 March 2002 31 March 2002 £000s £000s £000s East England Arts 4,189 (1,760) 2,429 East Midlands Arts 973 (1 1 1) 862 London Arts 3,610 (2,651) 959 Northern Arts 414 (34) 380 North West Arts 229 – 229 Southern Arts 2,459 (2,005) 454 South East Arts 668 (43) 625 South West Arts 1,237 (355) 882 West Midlands Arts 964 (526) 438 Yorkshire Arts 1,603 (1,101) 502 16,346 (8,586) 7,760
31 Contingent liability As detailed in note 30 above costs relating to the merger of the Arts Council of England and the 10 Regional Arts Boards of £861,000 have been included in the accounts. Further costs will be incurred in 2002/03. Due to their uncertain nature, no provision has been included for these additional costs in these accounts.
The Arts Council of England annual review and accounts 34 Grant-in-aid accounts Grants awarded 2001/02 Schedule 1 to the grant-in-aid accounts for the period to 31 March 2002
££ ££ Audience Development New audiences: regional Development projects East England Arts 32,552 Developing Arts in the North 1 1,000 East Midlands Arts 25,183 East Midlands Arts 20,000 London Arts 42,623 LAMP 10,000 Northern Arts 21,141 Northern Arts 10,000 North West Arts 39,664 Southern Arts 20,000 Southern Arts 28,470 Stagetext 20,000 South East Arts 24,064 West Midlands Arts 3,000 South West Arts 24,679 94,000 West Midlands Arts 31,967 New audiences: national Yorkshire Arts 31,286 Action Factory Community Arts 2,000 301,629 Aldeburgh Productions 40,000 Artsworks-mk 35,000 Total flexible funds 1,262,451 BBC Pebblemill 241,000 Bloomin’ Arts 2,000 Total Audience Development 1,262,451 Bournemouth Centre for Community Arts 2,000 Collaborative Arts Braunarts 50,000 Funded organisations Cardboard Citizens 14,314 onedotzero 15,300 Coalfield Community Arts 2,000 Community Music East 2,000 Total funded organisations 15,300 Diverse 25,000 Doncaster Community Arts 2,000 Audience Development Eastern Touring Agency 42,000 Ben Coode-Adam 3,000 Film and Video Umbrella 40,000 Helen Storey Foundation 6,000 Forward Literature Trust 50,000 9,000 Heart ‘n’ Soul 69,755 Development projects HMP Channings Wood 2,000 Arts Catalyst 20,000 Horn Reflections Theatre Company 2,000 b consultants 15,000 Hyphen-21 10,000 Chris Dorley-Brown 3,500 Jubilee Arts 2,000 Graham Harwood 5,000 King’s College London 45,000 Kettle’s Yard 5,000 Littoral 25,000 Lucy Kimbell 900 Mantle Community Arts 2,000 Proboscis 15,000 Mid Pennine Arts 2,000 64,400 Multiple Store 45,753 Publications and recordings Nottingham Partnership Council 2,000 Artangel Trust 20,000 Pied Piper 2,000 Braunarts 63,376 Same Sky 2,000 London Musicians’ Collective 15,000 Seachange Trust 2,000 Skyscraper Digital Publishing 10,000 Soft Touch Community Arts 2,000 Underwood Arts 30,000 Timebank 30,000 138,376 Vocaleyes 70,000 Year of the Artist Wild Women 2,000 Arts 2000 75,000 866,822 75,000
The Arts Council of England annual review and accounts Grant-in-aid accounts 35 Grants awarded 2001/02 continued Schedule 1 to the grant-in-aid accounts for the period to 31 March 2002
££ ££ Sci-Art Cholmondeleys and Arts Catalyst 10,000 Featherstonehaughs 230,370 Bobby Baker’s Daily Life 10,000 Contemporary Dance Trust 870,968 Camden Arts Centre 13,125 Dance UK 92,882 Gandini Juggling 10,000 Dance Umbrella 371,500 Goldschied Trust 10,000 Dancers’ Career Development 12,000 Input 6,250 Dv8 Physical Theatre 181,900 Kilmartin House Trust 10,000 English National Ballet 4,485,027 Northern Stage 10,000 Foundation for Community Dance 97,603 STANZA 13,125 Green Candle Dance Company 1 71,691 John Tchalenko 10,000 National Youth Dance Company 12,996 University of Hertfordshire 10,000 Northern Ballet Theatre 1,422,035 University of Newcastle 5,000 Rambert Dance Company 1,41 1,319 Jane Wildgoose 6,250 Random Dance Company 79,125 Wimbledon School of Art 10,000 Ricochet Dance Company 79,125 133,750 Shobana Jeyasingh Dance Company 267,642 Total flexible funds 420,526 Siobhan Davies Dance Company 342,490 Union Dance Trust 105,500 Total Collaborative Arts 435,826 V-Tol 12,139 Yolande Snaith Theatredance 97,799 Cross Art-form Funded organisations Total funded organisations 1 7,129,260 South Bank Board 15,695,410 Royal Opera House African peoples’ dance strategy (Covent Garden) 20,500,000 ADAD 15,000 Institute of Contemporary Arts 5,000 Dance Northwest 5,000 Arts & Business 5,050,000 Greenwich Dance Agency 3,500 H Patten 2,631 Total funded organisations 41,250,410 26,131 Dance training Board development programme Dance UK 10,400 Arts & Business 25,000 Dance 4 5,000 DanceXchange 5,000 Total flexible funds 25,000 20,400 Independent dance artist Total Cross Art-form 41,275,410 fellowships Jonathan Burrows Group 40,000 Dance Rosemary Butcher 40,000 Funded organisations Jonzi D 30,000 Adzido Pan African Dance Javier De Frutos 40,000 Ensemble 766,956 Wendy Houstoun 30,000 Badejo Arts 105,500 Rosemary Lee Projects 40,000 Birmingham Royal Ballet 5,791,250 Russell Maliphant 30,000 CandoCo Dance Company 121,443 Anthony Peppiatt 30,000
The Arts Council of England annual review and accounts 36 Grant-in-aid accounts Grants awarded 2001/02 continued Schedule 1 to the grant-in-aid accounts for the period to 31 March 2002
££ ££ Gwen Van Spijk 10,000 Nitro 151,373 Suzanne Walker 30,000 Northern Broadsides Theatre 320,000 Company 100,000 South Asian dance development Oily Cart Company 144,886 Akademi 42,000 Out of Joint 438,200 Kadam 21,000 Oxford Stage Company 566,626 SAMPAD 37,000 Paines Plough 1 78,274 100,000 People Show 1 13,465 Taped dance and media/ Pop-Up Theatre 157,874 technology Red Ladder Theatre Company 192,045 Paul Bush 1,995 Red Shift Theatre Company 157,880 Gina Czarnecki and Iona Kewney 2,746 Royal National Theatre Board 13,284,91 1 Essexdance 2,000 Royal Shakespeare Company 10,271,047 Thomas Gray and Hanna Gillgren 500 Shared Experience 236,694 Sophia Lycouris 496 Sphinx Theatre Company 135,477 Bruno Martelli and Ruth Gibson 3,500 Tamasha Theatre Company 147,840 Daniel O’Neill 500 Tara Arts Group 243,013 Miranda Pennell 2,000 Theatre Centre 329,683 Shinkansen 6,500 Theatre De Complicite Education 1 76,1 1 1 Touchdown Dance 1,965 Theatre of Thelema 1 78,857 Video Place 3,500 Total Theatre Network 33,000 25,702 Trestle Theatre Company 143,891 Venture/partnerships fund Yellow Earth Theatre 40,000 DanceXchange 10,000 Foundation for Community Dance 2,500 Total funded organisations 29,351,1 75 12,500 Black regional initiative in theatre Total flexible funds 504,733 Christ Church (Oxford) United Clubs 7,500 Dana Fainaru 4,000 Total Dance 1 7,633,993 Derby Playhouse 15,000 Green Room 7,000 Drama Kirklees Theatre Trust 14,000 Funded organisations Leicester Theatre Trust 37,500 Actors Touring Company (London) 155,406 Nottingham Theatre Trust 22,000 Bath Arts Workshop 1 1 7,832 St Paul’s Area Community Clean Break Theatre Company 50,000 Enterprises 30,000 Compass Theatre Company 128,886 137,000 David Glass New Mime Ensemble 155,952 Carnival, circus and street arts English Touring Theatre 642,650 Independent Street Arts Network 20,300 Forced Entertainment 1 16,699 Theatre Museum 4,71 1 Forkbeard Fantasy Theatre Total Theatre Network 20,300 Company 121,128 45,31 1 Graeae Theatre Company 169,050 Drama training International Workshop Festival 50,000 Malika Andress 14,000 IOU 142,425 Georgia Bance 10,000 London International Mime Festival 80,000
The Arts Council of England annual review and accounts Grant-in-aid accounts 37 Grants awarded 2001/02 continued Schedule 1 to the grant-in-aid accounts for the period to 31 March 2002
££ ££ Creative Industries Development Barrie Keeffe 5,500 Agency 20,000 Kingston Theatre Trust – Phil Willmott 2,500 Killian Gideon 12,000 Deborah Levy 5,500 Iqbal Khan 5,000 LLT/Productions – Karen Brown 2,750 Nazli Tabatabai 9,000 Linda Marshall-Griffths 5,500 Theatre Investment Fund 20,000 Muzikansky 2,600 Matthew Wilde 5,000 New Century Arts 2,750 95,000 New Perspectives Theatre Company 2,200 New writing Northern Broadsides Theatre Action Transport Theatre Company 3,694 Company – Louise Page 5,275 Actors of Dionysus 5,430 Out of Joint – Mark Ravenhill 12,000 Actors Touring Company (London) 3,800 Oxfordshire Touring Theatre Judith Adams 5,500 Company 2,850 Arcola Theatre – David Farr 2,770 Paines Plough 2,100 Ashton Group Contemporary Theatre Pentabus Arts – Paul Miller 2,770 – Des Dillion 3,500 Pentabus Arts – Phil Porter 2,770 Barbican Theatre – Simon Turley 1,847 Pilot Theatre Company 2,654 Blaize – Maureen Lawrence 2,770 Winsome Pinnock 5,500 Jim Burke 5,500 Playbox Theatre – Ron Hutchinson 2,500 Carib Theatre Company 2,750 Pop-Up Theatre – Rhiannon Tise 1,810 Classworks Theatre – Nick Warburton 1,847 Pursued By A Bear – Craig Baxter 1,846 Cleveland Independent Theatre Quondam Arts Trust – Julia Darling 3,000 Company 1,000 Red Ladder Theatre Company Concentric Circles 1,000 – Brendan Murray 2,500 Dolly Dhingra 5,500 Red Room – Anthony Neilson 5,495 East Midlands Theatres 1,500 Red Shift Theatre Company 2,716 Eastern Angles 5,540 John Retallack 5,500 Egg Factory – Esther Davis 3,212 Scarlet Theatre – Kate Eaton 5,853 Ed Emery 5,500 Shadow Factory – Nick Drake 1,847 Diane Esguerra 5,500 Sixth Sense Theatre Company 1,810 Nicholas Field 1,500 Snap People’s Theatre Trust 2,500 Rosy Fordham 1,500 Southwark Playhouse Theatre Co Forest Forge Theatre Company – Claire Luckham 2,770 – Philip Goulding 2,851 Sphinx Theatre Company 2,875 Graeae Theatre Company 1,500 Swan Playwrights – Lance Woodman 2,293 Tony Green 1,500 Theatre Absolute – Chris O’Connell 2,770 Greenwich Young People’s Theatre Theatre Alibi – Daniel Jamieson 2,770 – Sara Clifford 2,500 Theatre Melange 14,770 Half Moon Young People’s Theatre Three Legged Theatre Company 2,850 – Adrian Page 1,850 Tiata Fahodzi – Paul Sharma 2,700 Highly Sprung Performance Company 1,874 Tiebreak Theatre Co – Andrea Earl 1,810 Christopher W Hill 5,500 Unity Theatre 4,580 Independent Theatre Council 2,500 West Sussex County Youth Theatre 2,322 Jade Theatre Company 2,250 Mick Yates 5,500 Kaos Theatre UK 2,770 246,861
The Arts Council of England annual review and accounts 38 Grant-in-aid accounts Grants awarded 2001/02 continued Schedule 1 to the grant-in-aid accounts for the period to 31 March 2002
££ ££ Other drama Literature London Arts 12,500 Funded organisations National Association of Youth Theatres 20,000 Ambit 1 1,200 Young Vic Company 30,000 Anvil Press Poetry 74,300 62,500 Apples and Snakes 16,000 Small venues Arvon Foundation 127,300 Battersea Community Arts Centre 15,000 Book Trust 71,600 Black Country Touring 7,500 British Centre for Literary Christ Church (Oxford) United Clubs 1 1,000 Translation 64,600 Cornwall Promoters’ Consortium 7,500 Carcanet Press 96,300 Dorset Theatre Promoters’ Consortium 7,500 Federation of Worker Writers 25,600 Hawth Theatre 12,500 Interzone 6,800 Junction CDC 15,000 Lapidus 16,000 Komedia Productions 10,000 London Magazine 27,500 Leeds Metropolitan University 15,000 London Review of Books 14,050 North East Theatre Trust 13,500 National Association of Writers Sheringham Little Theatre Society 5,500 in Education 16,000 Southampton Community Arts Performing Arts Labs 10,600 Centre 15,000 Poetry Book Society 63,700 Unity Theatre 15,000 Poetry Society 165,800 150,000 Reading Partnership 16,000 Young people’s theatre initiative Signature Book Representation 60,372 Action Transport Theatre Company 10,000 Wasafiri 20,400 Cleveland Independent Theatre Company 5,000 Total funded organisations 904,122 Cornelius and Jones Productions 10,000 Pentabus Arts 10,000 Community publishing prize Pilot Theatre Company 30,000 Bradford Heritage Recording Unit 3,000 Sixth Sense Theatre Company 5,000 Redbeck Press 2,000 Take Off Festival 10,000 5,000 Theatre Rites 30,000 Education – lifelong learning Theatre Sans Frontieres 20,000 ClearVision Books 1,000 Tiebreak Theatre Co 10,000 National Association for Literature Travelling Light Theatre Company 10,000 Development 3,000 150,000 National Association of Writers Youth arts in Education 6,000 National Association of Youth Survivors’ Poetry 10,000 Theatres 24,000 20,000 National Student Drama Festival 12,000 Literature publications National Youth Theatre of Great and recordings Britain 15,000 Cypher Group 120,000 51,000 Poetry Library 90,000 210,000 Total flexible funds 937,672 Live literature initiatives Apples and Snakes 12,000 Total Drama 30,288,847 Institute of Contemporary Arts 5,000
The Arts Council of England annual review and accounts Grant-in-aid accounts 39 Grants awarded 2001/02 continued Schedule 1 to the grant-in-aid accounts for the period to 31 March 2002
££ ££ Mslexia Publications 18,000 Serpent’s Tail 1 7,821 Writernet 1,200 Society of Authors 4,600 36,200 Tagore Centre UK 2,000 Other literature 85,288 National Association for Literature Total flexible funds 564,523 Development 18,000 18,000 Total Literature 1,468,645 Publishing Allison & Busby 8,300 Music Arcadia Books 9,925 Funded organisations Arete 5,000 African & Caribbean Music Circuit 275,000 Banipal 4,000 Almeida Theatre Company 105,063 Bloodaxe Books 3,560 Asian Music Circuit 275,000 Book Works (UK) 10,000 Birmingham Opera Company 1 74,188 Calder Publication 9,000 British Federation of Brass Bands 15,375 Carcanet Press 1,600 British Music Information Centre 70,000 Dedalus 8,592 City of London Sinfonia 70,000 Dewi Lewis Publishing 8,000 COMA 16,144 Enitharmon Press 20,000 Continental Drifts 20,000 Five Leaves Publications 3,000 Drake Music Project 15,759 Independent Publishers Guild 30,000 Early Music Network 109,532 Iron Press 4,278 English National Opera 13,31 7,212 Mslexia Publications 5,000 English Touring Opera 979,493 Poems on the Underground 3,500 Folk Arts Network 15,759 Poetry London 5,000 Generator North East 30,000 Publishing Training Centre 15,000 Gig Right UK 15,000 Pulp Faction 4,000 Glyndebourne Productions 943,241 Reater 2,000 Heart ’n’ Soul 38,450 Rialto 2,400 Jazz Services 168,000 Smiths Knoll 2,000 London Mozart Players 35,000 Society of Authors 7,000 Making Music 31,519 The North 3,000 Sound Sense 61,500 Third Alternative 4,800 National Opera Studio 1 10,316 Two Rivers Press 4,080 National Youth Jazz Orchestra 25,500 University of East Anglia 5,000 Opera North 6,316,821 University of Liverpool 2,000 Orchestra of St John’s 45,000 190,035 Philharmonia 126,075 Translations Royal Philharmonic Orchestra 353,496 Arc Publications 7,500 Sinfonia 21 50,000 Arcadia Books 20,028 Society for the Promotion of BlackAmber Books 3,574 New Music 70,037 Dedalus 1 7,381 Sonic Arts Network 120,192 Flambard Press 2,300 Welsh National Opera 4,91 7,520 Glas Publishers UK 2,698 Women in Music 30,000 Granta Publications 2,386 King’s College London 5,000 Total funded organisations 28,946,192
The Arts Council of England annual review and accounts 40 Grant-in-aid accounts Grants awarded 2001/02 continued Schedule 1 to the grant-in-aid accounts for the period to 31 March 2002
££ ££ Contemporary Music Network Covent Garden Festival 1 1,000 ahum 83,500 Grand Union Music Theatre 15,000 Askonas Holt 24,000 Huddersfield Contemporary Brighton Dome 33,535 Music Festival 10,000 Brodsky Quartet 28,000 Lyric Theatre Hammersmith 5,000 Concert Clinic 35,000 Pegasus Opera Company 12,000 David Metcalfe Associates 35,123 Pimlico Opera 20,000 Folkworks 31,000 Natalie Steed Productions 10,000 Joyful Noise 80,000 Tete a Tete Productions 10,000 Serious Events 69,000 160,000 Sue Lubbock Artists Management 43,000 Strategic research and projects 462,158 Asian Music Circuit 12,500 Firestarting Battersea Arts Centre 7,500 Artswork 10,000 City of London Sinfonia 7,000 Continental Drifts 30,000 Ebony Steelband Trust 5,000 Gig Right UK 46,000 Essequibo Music 8,000 London Arts Training Consortium 7,500 Tomorrow’s Warriors 10,000 Music Industry Connections 1 1,000 50,000 Music Producers Guild 20,000 Prince’s Trust 20,000 Total flexible funds 965,158 144,500 General disability fund Total Music 29,91 1,350 Artsline 20,500 20,500 Research and Development Music commissions Arts and education interface Almeida Theatre Company Bannerman Road Primary School 1,250 – Simon Holt 20,000 Bristol Education Action Zone 1 7,000 Glyndebourne Productions Bristol Gateway School 1,825 – John Lunn 1 7,000 East Midlands Arts 37,065 New London Chamber Choir Millpond Primary School 1,500 – David Sawer 5,000 Rockingham Primary School 3,500 North Music Trust – Deirdre Gribbin 14,000 Sefton Park Infant School 3,575 Serious Events – Andy Sheppard South West Arts 32,786 and Colin Towns 10,000 Springwoods Nursery School 1,200 Yolande Snaith Theatredance St James and St Agnes Nursery – David Coulter 4,000 School 1,325 70,000 St Werburgh’s Park Nursery School 1,200 Music publications and recordings University of the West of England 30,000 Coral Fox 8,000 Unknown Public 50,000 Total arts and education interface 132,226 58,000 Opera and music theatre Education Base Chorus Productions 10,000 Funded organisations Battersea Arts Centre 21,500 Youth Arts Network 15,914 Buxton Festival 25,500 Classical Opera Company 10,000 Total funded organisations 15,914
The Arts Council of England annual review and accounts Grant-in-aid accounts 41 Grants awarded 2001/02 continued Schedule 1 to the grant-in-aid accounts for the period to 31 March 2002
££ ££ General projects Employment training National Association of Writers Akademi 20,000 in Education 2,000 20,000 2,000 Fellowships Artsmark Rasheeqa Ahmad 13,000 East Midland Arts 1,000 Jacklin Brown 13,000 London Arts 1,500 Christopher Burton 13,000 Northern Arts 1,000 Christine Chijiutomi 13,000 North West Arts 1,500 Josephine Forrest-Tennant 13,000 Southern Arts 1,000 Ngozi Ikoku 13,000 South East Arts 1,000 Leiza McLeod 13,000 South West Arts 1,875 Hafiza Mohamed 13,000 8,875 Yee Ling Tang 13,000 Education research and Stephen Wright 13,000 development initiative 130,000 Commissions East 3,500 Professional development English Folk Dance & Song Society 5,000 and training Madmac Productions 19,882 All Ways Learning 54,438 National Association of Youth Crafts Council 65,325 Theatres 2,500 Foundation for Community Dance 65,325 National Society for Education in Independent Theatre Council 9,300 Art & Design 6,000 K:Knowledge Services for Arts Nick Randell Associates 5,000 Management 54,438 South West Arts 5,000 London Arts 90,650 Tandem 2,200 Matrix 65,325 West Midlands Arts 5,000 National Association of Writers 54,082 in Education 65,325 Northern Cultural Skills Partnership 65,326 Total flexible funds 64,957 Sound Sense 65,325 600,777 Total Education 80,871 Total flexible funds 801,527 Employment Funded organisations Total Employment 959,527 Arts Metier 120,000 Independent Theatre Council 38,000 Social and Economic Contexts Funded organisations Total funded organisations 158,000 National Disability Arts Forum 90,1 77 Voluntary Arts Network 245,000 Apprenticeships Adapt Trust 43,000 Art Shape 10,150 CandoCo Dance Company 3,100 Total Social and Economic Contexts 378,1 77 Equata 1 7,500 Writernet 20,000 Total Research and Development 1,550,801 50,750
The Arts Council of England annual review and accounts 42 Grant-in-aid accounts Grants awarded 2001/02 continued Schedule 1 to the grant-in-aid accounts for the period to 31 March 2002
££ ££ Touring Other touring Cross border touring British Council 6,500 Birmingham Royal Ballet 95,000 Push 38,000 Glyndebourne Productions 100,000 Theatrical Management Association 1 1,555 Northern Ballet Theatre 30,000 Vocaleyes 35,000 Royal National Theatre Board 100,000 91,055 Scottish Ballet 90,000 Scottish Opera 194,340 Total flexible funds 2,1 1 7,743 609,340 Drama projects Total Touring 2,1 1 7,743 (Barclays Stage Partners) B & R Productions 18,381 Visual Arts Frantic Assembly 31,107 Funded organisations Kneehigh Theatre Company 84,328 Acme Studios 5,000 Shared Experience 44,209 AN: The Artists Information Company 57,000 Soho Theatre Company 35,082 Architecture Centre Network 1 1,000 Tara Arts Group 50,000 Art Monthly 24,000 Touring Consortium 47,500 Association for Contemporary Touring Partnership 58,000 Jewellery 10,000 Young Vic Company 50,469 Association of Black Photographers 92,000 419,076 Audio Arts 18,000 National promoter development Axis 1 10,000 Arts About Manchester 15,000 Blast Theory 25,000 Artsline 25,000 Book Works (UK) 25,000 Asian Music Circuit 10,000 Building Exploratory 15,000 Association of NDAs 38,150 CC Publishing (DPICT) 54,000 Birmingham Arts Marketing 31,778 Contemporary Art Society 45,000 Bracknell Summer Festival 39,270 Contemporary Glass Society 10,000 Brighton Gardner Arts 1 10,000 Cornerhouse Publications 45,000 Dance 4 Nottingham 40,000 Creative Art House 10,000 Dance Agency Cornwall 30,520 Durian Publications 19,000 Dance Consortium 3,600 East International 20,000 Diverse Cultural Promotions 70,500 Education Through Art 10,000 Eastern Touring Agency 120,000 Engage 55,000 Generator North East 39,600 Everything Magazine 10,000 Jazz Services 10,500 Film and Video Umbrella 89,000 Large Scale Venues Consortium 120,048 Filmwaves 7,500 Modal 10,150 Foundation for Art and Creative Nu-Notes 165,316 Technology 30,000 Oxford Contemporary Music 1 7,400 Institute of International Visual Arts 457,000 Oxford Playhouse 30,000 National Artists Association 60,000 Stagetext 20,000 New Contemporaries (1988) 28,000 The Stables 6,500 New Work Network 22,100 Vocaleyes 44,940 Photography Workshop (Edinburgh) 10,000 998,272 Public Art Forum 53,000 Public Arts 14,000
The Arts Council of England annual review and accounts Grant-in-aid accounts 43 Grants awarded 2001/02 continued Schedule 1 to the grant-in-aid accounts for the period to 31 March 2002
££ ££ Royal College of Art 60,000 North West Arts 10,000 Skyscraper Digital Publishing 12,000 Oldham Metropolitan Borough 40,000 Station House Opera 27,500 One Tree 12,750 Third Text 40,000 Royal College of Art 4,000 Triangle Arts Trust 43,000 Royal Society of Arts 5,000 Untitled Magazine 10,000 Matthew Shaul 2,500 Vertigo Publications 10,000 Shisha 32,000 Visiting Arts 181,045 Surrey Institute of Art & Design 7,750 Visual Arts and Galleries Association 50,000 Tullie House Museum and Art Gallery 5,000 Women’s Art Library 21,000 University of Northumbria 10,000 255,240 Total funded organisations 1,895,145 International artist fellowships Ann Sutton Foundation 20,000 Architecture and built environment Banff Centre for the Arts 23,363 initiatives Braziers International Artists Architecture Foundation 3,000 Workshop 15,000 Art and Architecture 4,000 British School at Rome 1 7,500 Art and Christian Enquiry 3,000 Business Design Centre 5,000 Ahrends Burton & Koralek 5,000 Cittadellarte Fondazione Pistolleto 12,633 Canterbury City Council 2,000 Cyfuniad International Artists Cube 15,000 Workshop 5,000 New Art Gallery Walsall 5,000 Photoworks 10,000 Serpentine Gallery 2,000 The Lab 6,300 University of Westminster 4,000 Triangle Arts Trust 9,000 43,000 123,796 Artists liaison scheme Live art initiatives AN: The Artists Information Company 5,000 Arnolfini 3,000 5,000 K3 Media 3,000 Crafts education Live Art Development Agency 3,000 National Society for Education in Push 3,000 Art & Design 5,000 Whitechapel Art Gallery 3,000 Wei Meng 3,000 15,000 Wolverhampton City Council 15,000 New media publishing 23,000 atavar.com 14,555 Crafts projects and exhibitions AudioRom 15,000 AN: The Artists Information Company 10,000 D-Fuse 14,070 Bilston Craft Gallery 2,500 emote 7,500 Brewery Arts Centre 3,600 Film and Video Umbrella 15,700 Bury St Edmunds Art Gallery Trust 2,500 Grizedale Arts 10,434 Cockpit Arts 5,000 Rosemary Heather & Platform Gallery 7,491 Crafts Council 64,890 Kirklees Media Centre 10,950 Devon Guild of Craftsmen 2,500 Locus Plus 13,450 Education Through Art 10,250 Signals Essex Media Centre 10,347 Fabrica 2,500 Ronnie Simpson 9,936 Modus Operandi 20,000 129,433 National Glass Centre 2,500
The Arts Council of England annual review and accounts 44 Grant-in-aid accounts Grants awarded 2001/02 continued Schedule 1 to the grant-in-aid accounts for the period to 31 March 2002
££ ££ Photography and new media RDF Wallace Collection 1,500 Brighton Photo Biennial 2003 10,000 Wallflower Press 8,600 East England Arts 14,000 105,500 East Midlands Arts 14,000 Crafts Council Northern Arts 19,000 Crafts Council 2,495,661 Southern Arts 14,000 2,495,661 South East Arts 10,000 South West Arts 10,000 Total flexible funds 3,587,622 Yorkshire Arts 19,000 1 10,000 Total Visual Arts 5,482,767 Visual Arts education development Gallery of the Future 6,000 Haringey Arts Council 15,000 TOTAL GRANTS AWARDED 131,427,833 Live Art Development Agency 6,000 London Borough of Newham 6,000 National Society for Education in Art & Design 40,000 Somewhere 8,500 TAG Learning 30,000 Triangle Arts Trust 5,292 University of Central England 6,200 122,992 Visual Arts publications and recording Book Works (UK) 90,000 Association of Black Photographers 60,000 Eastern Arts Publishing 9,000 159,000 Visual Arts publishing Black Dog Publishing 4,940 Camden Arts Centre 5,000 Curatorial Services 9,000 David Metcalfe Associates 7,000 Dewi Lewis Publishing 5,000 Film and Video Umbrella 7,000 Anna Harding and Bettina Wilhelm Exley 7,460 Impressions Gallery 6,000 Liz Kent 5,100 Locus Plus 6,000 Matt’s Gallery 7,250 Milch 7,850 Photographers’ Gallery 5,000 Undercut Magazine 8,800 University of Central England 4,000
The Arts Council of England annual review and accounts Grant-in-aid accounts 45 The Arts Council of England lottery distribution accounts 1 April 2001–31 March 2002
Foreword
Introduction The Executive Team consisted of the Chief The Arts Council of England is a registered Executive and four Executive Directors. The charity, Charity Registration Number 1036733. organisation’s structure was based on the It was established by Royal Charter on 1 April following four directorates, each led and 1994, taking over those responsibilities in managed by an Executive Director: England previously discharged by the Arts Council of Great Britain. The objectives of the •Arts Council as stated in the Royal Charter, its •Communications governing document, are to develop and •Planning and Resources improve the knowledge, understanding and •Research and Development practice of the arts and to increase accessibility of the arts to the public. In March 2002, the structure was amended slightly, and the Planning and Resources The Council receives grant-in-aid from the directorate was replaced by Finance and Department for Culture, Media and Sport Resources. (DCMS) and is one of the bodies designated to distribute funds from the National Lottery by the Merger of the Arts Council of England and National Lottery etc. Act 1993 (as amended by the Regional Arts Boards the National Lottery Act 1998). On 1 April 2002 the 1 1 organisations in the arts funding system in England, consisting of the The address of the principal office is 14 Great 10 Regional Arts Boards and the Arts Council of Peter Street, London SW1P 3NQ. England, merged to become one legal entity. This entity is currently named the Arts Council The Council works at arm’s length from of England. The new body has nine regional Government and has the status of a Non- offices, matching the Government’s regional Departmental Public Body. As such it is boundaries, and a national office. Each region regulated in accordance with a Financial will have a council with significant levels of Memorandum issued by the Secretary of State. delegated powers, and the 15-strong National Accounts for grant-in-aid and lottery are Council, as detailed below, includes the chair prepared separately in accordance with Accounts of each of the new Regional Councils. Directions also issued by the Secretary of State. The Arts Council was granted a Supplemental Internal structure during 2001/02 Charter on 31 May 2002. The purpose of this During the year the governing body of the Supplemental Charter was ‘to give effect to Arts Council of England was the Council, which new arrangements for regionalisation of its consisted of a Chairman and 1 1 members. structure and activities’. There were no changes The Council met in formal session nine times to the objects of the Council and the main during the year and monitored the work of changes relate to the Council’s powers to the Chief Executive and staff. A number of establish and dissolve, and to delegate powers advisory panels, while carrying no executive and functions to Regional Councils. The Charter authority, played an important role by explains the new composition of the Council, providing advice from the arts constituency. which includes the chairs of the Regional The Arts Council’s staff was led by the Chief Councils and allows for the possibility of Executive and the other members of the remunerating these individuals in recognition Executive Team. of the additional work involved in those
The Arts Council of England annual review and accounts 46 Lottery accounts Foreword continued
positions. Any such remuneration is subject to Executive Board membership the specific approval of the Charity Commission. The Executive Board of the new organisation The new Charter also specifies regulations in will be made up of the Chief Executive, Peter relation to any Council member benefiting from Hewitt, the nine existing Regional Executive any Arts Council funds and such cases are also Directors and the Executive Directors of the subject to approval by the Charity Commission. National Office.
The single organisation has been formed to Peter Hewitt, Chief Executive deliver a number of benefits: Andrea Stark, Regional Executive Director, •greater leadership for the arts East England •greater financial flexibility and capacity Laura Dyer, Regional Executive Director, to respond to artistic ambition East Midlands •less red tape and greater simplicity for artists Nigel Pittman, Interim Regional Executive •a strengthened voice in making the case for Director, London the arts Andrew Dixon, Regional Executive Director, •a reduction in administration costs enabling Northern increased resources for the arts Michael Eakin, Regional Executive Director, North West During 2001/02 the Council incurred costs Felicity Harvest, Regional Executive Director, of £2.15 million on the restructuring process. Southern & South East Of this, £1.29 million was charged to lottery in Nick Capaldi, Regional Executive Director, these accounts, the balance being charged South West to the grant-in-aid accounts. Further costs will Sally Luton, Regional Executive Director, be incurred in 2002/03. West Midlands Andy Carver, Regional Executive Director, Work to develop the internal structure of the Yorkshire new organisation has been underway since Kim Evans, Executive Director of Arts* 31 March 2002. Wendy Andrews, Executive Director of Communications* Keith Harrison, Acting Executive Director of Finance and Resources* Pauline Tambling, Executive Director of Research and Development*
*Interim members of Executive Board pending announcements about future structures.
The Arts Council of England annual review and accounts Lottery accounts 47 Foreword continued
Membership of Council
The members of the Arts Council are its Trustees. During the year and up to the date of the announcement of the new National Council the members were:
Member Date of appointment Date of resignation/retirement Gerry Robinson (Chair) January 1998 Renewed March 2001
Derrick Anderson June 1998 June 2001
David Brierley CBE November 1997 Renewed June 2000 May 2002
Deborah Bull CBE June 1998 May 2002
Emmanuel Cooper September 2000 May 2002
Antony Gormley OBE June 1998 June 2001
Anish Kapoor June 1998 May 2002
Joanna MacGregor June 1998 May 2002
Brian McMaster CBE June 2000 May 2002
Dr Janet Ritterman June 2000 May 2002
William Sieghart June 2000 May 2002
Hilary Strong June 1998 May 2002
David Brierley served as Chairman of the Audit Committee throughout 2001/02. Dr Janet Ritterman and Hilary Strong served as Committee members throughout 2001/02.
The Arts Council of England annual review and accounts 48 Lottery accounts Foreword continued
Membership of Council
On 1 June 2002 the new National Council for the Arts Council of England came into being. The Council consists of 15 members, nine of whom will also take on the role of Chair of one of the Regional Councils as detailed below:
Member Regional Council Chair (if applicable) Gerry Robinson (Chair)
Sir Norman Adsetts OBE Yorkshire
Tom Bloxham MBE North West
Deborah Bull CBE
Paul Collard Northern
Deborah Grubb Southern & South East
Sue Woodford Hollick London
Professor Alan Livingston South West
Stephen Lowe East Midlands
Joanna MacGregor
Brian McMaster CBE
Elsie Owusu
William Sieghart
Professor Stuart Timperley East England
Dorothy Wilson West Midlands
Sir Norman Adsetts, Professor Alan Livingston and Dorothy Wilson have been appointed to serve on the Audit Committee during 2002/03 together with David Brierley and Ian Armitage as co-opted members.
The Arts Council of England annual review and accounts Lottery accounts 49 Foreword continued
Chief Executive, Chairman and Council round resulted in 61 projects being admitted to members appointment the programme. These projects are now being Gerry Robinson was appointed as Chairman asked to develop full applications for funding. of the Arts Council on 1 May 1998 for an initial The emphasis is on successful and sustainable term of three years, and re-appointed for a projects and in order to achieve this funds are further three year term on 20 March 2001. The available for technical assistance and capacity Chief Executive, Peter Hewitt, was appointed building. The second round of the Arts Capital by the Council on 9 March 1998 for a period Programme is planned for 2003. of five years with the approval of the Secretary of State for Culture, Media and Sport. The Arts Council was pleased to join with DCMS, Sport England and the New Council members are appointed by the Opportunities Fund in the development of the Secretary of State for Culture, Media and Space for Sport and Arts programme, resulting Sport for up to four years and are eligible for in a £130 million scheme for primary schools. re-appointment for a further term of up to This programme, the first grants under which four years. were made in the year, also involved the Arts Council and Sport England forming the first Review of the year formal joint scheme under the terms of the New grant commitments (ie offers made and 1998 Lottery Act. Accounts for the Space for accepted) in the year totalled £163 million. Sport and Arts programme are prepared At year end a total of £229 million grant separately by Sport England. commitments remained outstanding and awaiting payment, compared with a balance The other existing lottery programmes in the National Lottery Distribution Fund plus continued throughout the year. These bank balances of £247 million. The Arts included the National Touring Programme, Council monitors levels of lottery income Recovery and Stabilisation Programmes closely, and the level of outstanding grant managed directly by the Arts Council, as commitments is considered prudent, based well as delegated programmes run by the on past and projected income flows. Regional Arts Boards and Youth Music.
Throughout the year the Arts Council awarded The Artis IT project went live at the start of grants in support of the arts under a number the year. Financial systems and some grant of separate schemes and programmes. programmes for the Arts Council were transferred to Artis with effect from 1 April The first round of the Arts Capital Programme 2001. The remaining grant programmes were took place early in 2001. This programme is transferred across to Artis during the course of designed to support arts capital projects 2001/02. Costs incurred relating to the project, which increase access to the arts, are in areas which include software development and of the country where provision for the arts has hardware costs, are disclosed separately in been low in the past, or aim to develop under- the notes to the accounts (see notes 3a and 4). served areas of the arts. From the total of £88 million for the first round a minimum spending target of £20 million was set aside to support culturally diverse projects. The first
The Arts Council of England annual review and accounts 50 Lottery accounts Foreword continued
Employment and training policies and staff corporate HR policies and procedures across participation the whole organisation. The new national The Arts Council is an organisation which is forum replaces the 1 1 different arrangements committed to creating a working environment that previously existed in the workplaces of the that treats people with fairness and respect Arts Council of England and the 10 Regional and is free from discrimination, harassment Arts Boards for handling management/ and bullying. Policies and procedures are union affairs. geared towards eliminating direct and indirect discrimination and supporting employees in The Arts Council seeks to ensure that the reaching their full potential. requirements of health and safety legislation are met in the workplace. Health and safety The Arts Council’s training and development issues of general concern are discussed programmes are designed to encourage with Amicus. and support all employees in improving performance. In recognition of the organisation’s Other matters positive approach to the recruitment and The Co-operative Bank of 78–80 Corn Hill, management of staff with disabilities, the Arts London EC3V 3NJ acts as the banker for the Council has been awarded the ‘Two Ticks’ Arts Council of England. The Comptroller and symbol by The Employment Services. Auditor General of 157–197 Buckingham Palace Road, Victoria, London SW1W 9SP is 18.2% of staff classify themselves as Black, auditor to the Arts Council. Hewitt Bacon & Asian or Chinese, and 4.1% of staff classify Woodrow of Parkside House, Ashley Road, themselves as disabled. Epsom, Surrey KT18 5BT act as actuaries for the Council’s pension scheme. The Arts Council has put in place arrangements to promote effective consultation and The Council maintains a register of interests communications with all staff. Executive Team of its members, which is available for public and Council activities are disseminated inspection by appointment at the Arts through a system of team-briefing, Council’s Great Peter Street address. supplemented from time to time by all staff meetings with the Chief Executive and all The Council attempts to abide by the Better staff communications bulletins. More formally, Payment Practice Code, and in particular to during 2001/02 the Arts Council recognised pay bills in accordance with contract. Invoices the trade union Amicus for consultation and are normally settled within our suppliers’ collective bargaining, and established standard terms, usually 30 days. In 2001/02, appropriate consultative machinery to 86% of undisputed invoices were paid within support this. a 30 day period (2000/01: 75%).
Following the merger on 1 April 2002, a new Statement of Council’s and Chief Executive’s national forum for managing issues with the responsibilities unions has been put in place. The National Under the Royal Charter the Council is Joint Consultative and Negotiating Committee required to prepare a statement of accounts (NJCNC) has a mandate to handle all core pay, for the financial period in the form and on the terms and conditions of employment, and basis directed by the Secretary of State for
The Arts Council of England annual review and accounts Lottery accounts 51 Foreword continued
Culture, Media and Sport, with the consent *A copy of the Accounts Direction is available of HM Treasury. The accounts are to be from the Accounting Officer, Arts Council prepared on an accruals basis and to show of England, 14 Great Peter Street, London a true and fair view of the Council’s state of SW1P 3NQ. affairs at the year end and of its income and expenditure and cash flows for the financial year. The Council is required to:
•observe the Accounts Direction issued by the Secretary of State*, which sets out accounting and disclosure requirements, and apply suitable accounting policies on a consistent basis •make judgements and estimates on a reasonable basis •state whether applicable accounting standards have been followed, and disclose and explain any material departures in the financial statements •prepare the financial statements on a going concern basis, unless it is inappropriate to presume that the Council will continue in operation.
The Accounting Officer for the Department for Culture, Media and Sport has designated the Chief Executive as Accounting Officer for the Council. The relevant responsibilities as Accounting Officer, including the responsibility for the propriety and regularity of the finances for which the Chief Executive is answerable and for the keeping of proper records, are set out in the Non-Departmental Public Bodies’ Accounting Officers’ Memorandum, issued by HM Treasury.
Peter Hewitt Chief Executive 7 October 2002
Gerry Robinson Chairman 7 October 2002
The Arts Council of England annual review and accounts 52 Lottery accounts Statement on internal control
As Accounting Officer and representative by an analysis of the risk to which the Council of the Council, we acknowledge our is exposed and annual internal audit plans are responsibility for ensuring a sound system based on this analysis. The analysis of risk and of internal control that: the internal audit plans are endorsed by the Council’s Audit Committee and approved by •supports the achievement of the Arts Council us. At least annually, the Head of Internal Audit of England’s objectives while (HIA) provides us with a report on internal audit •safeguarding the public funds and assets activity in the Council. The report includes the for which we are responsible, and in HIA’s independent opinion on the adequacy accordance with the responsibilities and effectiveness of the Council’s system of assigned to the Accounting Officer in internal control. Government Accounting, and •ensuring compliance with the requirements Our review of the effectiveness of the system of of the Arts Council of England’s Financial internal control is informed by: the work of the Memorandum. internal auditors; the Audit Committee, which oversees the work of the internal auditors; the The system can provide only reasonable executive managers within the body who and not absolute assurance that assets are have responsibility for the development and safeguarded, transactions authorised and maintenance of the control framework; and properly recorded, and that material errors comments made by the external auditors in or irregularities are either prevented or their management letter and other reports. would be detected within a timely period. The system of internal control is based on The system of internal control is designed an ongoing process designed to: identify the to manage rather than eliminate the risk principal risks to the achievement of policies, of failure to achieve these objectives; it can aims and objectives; evaluate the nature therefore only provide reasonable and not and extent of those risks; and manage them absolute assurance of effectiveness. efficiently, effectively and economically. We expect to have the procedures in place A risk management policy was approved in March 2003 necessary to implement by the Executive Team of the Arts Council of HM Treasury guidance. This takes account England in January 2001. In accordance with of the time needed to fully embed the this policy a risk register was developed in processes which the Arts Council of England consultation with senior management, and has agreed should be established, and was discussed by the Executive Team and improve their robustness. the Audit Committee during the year. Peter Hewitt Work is now in progress to address the agreed Chief Executive actions arising from the review of the risk 7 October 2002 register, and to update it on a regular basis.
The Arts Council of England has internal Gerry Robinson auditors who operate to standards defined Chairman in the Government Internal Audit Manual. 7 October 2002 The work of the internal auditors is informed
The Arts Council of England annual review and accounts Lottery accounts 53 The Certificate and Report of the Comptroller and Auditor General to the Houses of Parliament
I certify that I have audited the financial misstatements or material inconsistencies statements on pages 56 to 69 under the with the financial statements. National Lottery etc. Act 1993 (as amended by the National Lottery Act 1998). These financial I review whether the statement on page 53 statements have been prepared under the reflects the Arts Council of England’s historic cost convention and the accounting compliance with HM Treasury’s guidance policies set out on pages 59 and 60. ‘Corporate governance: statement on the system of internal control’. I report if it does Respective responsibilities of the Council, not meet the requirements specified by HM Chief Executive and Auditor Treasury, or if the statement is misleading or As described on pages 51 and 52, the Council inconsistent with other information I am aware and the Chief Executive of the Arts Council of of from my audit of the financial statements. England are responsible for the preparation of the financial statements in accordance with Basis of audit opinion the National Lottery etc. Act 1993 (as amended) I conducted my audit in accordance with United and directions made by the Secretary of State Kingdom Auditing Standards issued by the thereunder and for ensuring the regularity of Auditing Practices Board. An audit includes financial transactions. The Council and the examination, on a test basis, of evidence Chief Executive are also responsible for the relevant to the amounts, disclosures and preparation of the other contents of the annual regularity of financial transactions included review. My responsibilities, as independent in the financial statements. It also includes an auditor, are established by statute and guided assessment of the significant estimates and by the Auditing Practices Board and the judgements made by the Council and the auditing profession’s ethical guidance. Chief Executive in the preparation of the financial statements, and of whether the I report my opinion as to whether the financial accounting policies are appropriate to the statements give a true and fair view and are Council’s circumstances, consistently applied properly prepared in accordance with the and adequately disclosed. National Lottery etc. Act 1993 (as amended) and directions made by the Secretary of State I planned and performed my audit so as to thereunder, and whether in all material respects obtain all the information and explanations the expenditure and income have been applied which I considered necessary in order to to the purposes intended by Parliament and provide me with sufficient evidence to give the financial transactions conform to the reasonable assurance that the financial authorities which govern them. I also report if, statements are free from material in my opinion, the Foreword is not consistent misstatement, whether caused by error, with the financial statements, if the Arts Council or by fraud or other irregularity and that, of England has not kept proper accounting in all material respects, the expenditure and records, or if I have not received all the income have been applied to the purposes information and explanations I require for my intended by Parliament and the financial audit. I read the other information contained transactions conform to the authorities which in the annual review and consider whether it govern them. In forming my opinion I have is consistent with the audited financial also evaluated the overall adequacy of the statements. I consider the implications for my presentation of information in the financial certificate if I become aware of any apparent statements.
The Arts Council of England annual review and accounts 54 Lottery accounts The Certificate and Report of the Comptroller and Auditor General to the Houses of Parliament continued
Opinion In my opinion:
•the financial statements give a true and fair view of the state of affairs of the Arts Council of England’s lottery distribution activities at 31 March 2002 and of the movement in funds available, total recognised gains and losses and cash flows for the year then ended and have been properly prepared in accordance with the National Lottery etc. Act 1993 (as amended) and directions made thereunder by the Secretary of State for Culture, Media and Sport; and •in all material respects the expenditure income and resources have been applied to the purposes intended by Parliament and the financial transactions conform to the authorities which govern them.
I have no observations to make on these financial statements.
John Bourn Comptroller and Auditor General 15 October 2002
National Audit Office 157–197 Buckingham Palace Road Victoria, London SW1W 9SP
The Arts Council of England annual review and accounts Lottery accounts 55 Income and expenditure account For the year ended 31 March 2002
Note 2001/02 2000/01 £000s £000s As restated Share of proceeds from the National Lottery Distribution Fund 8 196,252 183,429 Investment returns on the Distribution Fund 8 13,651 15,203 Interest received 727 637 Other income 2 58 268 Total income 210,688 199,537
Grant commitments made in the year 10 162,833 131,282 Less: lapsed and revoked commitments 10 (8,544) (5,337) Net grant commitments 154,289 125,945
General expenditure: Staff costs 3 1,779 1,646 Other operating costs 4 12,518 13,117 Costs apportioned from Arts Council grant-in-aid accounts 8,866 9,109 Total operating costs 23,163 23,872 Total expenditure 1 77,452 149,81 7
Net income before exceptional items and notional costs 33,236 49,720
Exceptional items Cost of fundamental reorganisation 22 (1,291) –
Net income after exceptional items before notional costs 31,945 49,720
Notional costs Cost of capital 9 (193) (300)
Net income after notional costs 31,752 49,420
Reversal of notional costs 193 300
Increase in lottery funds 31,945 49,720
Accumulated funds brought forward (15,525) (40,295) Transfer to the Film Council – (24,950) Accumulated funds carried forward 18 16,420 (15,525)
The Arts Council has no recognised gains or losses other than those disclosed in the above income and expenditure account. Consequently, no separate statement of recognised gains and losses has been prepared. There are no discontinued activities.
The notes on pages 59 to 69 form part of these accounts.
The Arts Council of England annual review and accounts 56 Lottery accounts Balance sheet As at 31 March 2002
Note 31 March 2002 31 March 2001 £000s £000s As restated Fixed assets Tangible assets 6 197 294 197 294 Current assets Debtors 7 2,029 2,125 Investments: balance in the National Lottery Distribution Fund 8 246,347 254,731 Cash at bank and in hand 340 7,983 248,716 264,839 Creditors: amounts falling due within one year Grant commitments 10 141,866 151,594 Creditors 11 1,159 1,385 Due to grant-in-aid accounts 1,927 2,066 144,952 155,045 Net current assets 103,764 109,794 Total assets less current liabilities 103,961 1 10,088
Creditors: amounts falling due over one year Grant commitments 10 87,541 125,613 16,420 (15,525)
Represented by Reserves 18 16,420 (15,525) 16,420 (15,525)
The notes on pages 59 to 69 form part of these accounts.
Peter Hewitt Chief Executive 7 October 2002
Gerry Robinson Chairman 7 October 2002
The Arts Council of England annual review and accounts Lottery accounts 57 Cash flow statement For the year ended 31 March 2002
Note 2001/02 2000/01 £000s £000s Operating activities Funds received from the National Lottery Distribution Fund 218,287 21 7,834 Other cash receipts 58 1,485 Grants paid 10 (202,089) (154,363) Cash paid to and on behalf of employees (1,790) (1,743) Other cash payments (22,397) (22,335) Net cash movements relating to exceptional items: (1,291) – Net cash (outflow)/inflow from operating activities 15 (9,222) 40,878 Returns on investments and servicing of finance Interest received 733 652 Loans repaid by other bodies 7 2,600 – Loans made to other bodies 7 (1,754) (1,891) Net cash inflow from returns on investments and servicing of finance 1,579 (1,239) Capital expenditure Purchase of tangible fixed assets – (1 74) Net cash (outflow) from capital expenditure – (1 74) Acquisitions and disposals Payments to the Film Council – (35,414) Net cash (outflow) from acquisitions and disposals – (35,414) (Decrease)/increase in cash 16 (7,643) 4,051
The notes on pages 59 to 69 form part of these accounts.
The Arts Council of England annual review and accounts 58 Lottery accounts Notes to the lottery distribution accounts
1 Accounting policies Hard commitments are recognised as items of a) Basis of accounts expenditure in the income and expenditure These accounts have been prepared in account. Details of soft commitments are accordance with the revised Accounts Direction disclosed in note 10 to the accounts. issued by the Secretary of State for Culture, Media and Sport in May 2002. In order to comply with Hard commitments payable within one year this statement changes have been made to the of the balance sheet date are recognised in presentation of lapsed and revoked commitments the balance sheet as current liabilities. Those in the income and expenditure account and payable more than one year from the balance grant commitments falling due over one year sheet date are shown as grant commitments in the balance sheet. The comparatives have over one year. been amended accordingly. They meet the requirements of the Companies Acts, and of c) Depreciation and fixed assets the Statements of Standard Accounting Practice/ Depreciation is provided on all tangible fixed Financial Reporting Standards issued and assets financed by lottery funds at rates adopted by the Accounting Standards Board, calculated to write off the cost less estimated so far as those requirements are appropriate. residual value of each asset systematically over its expected useful life as follows: The accounts are prepared on a historic cost basis. The Accounts Direction requires the Leasehold buildings the life of the lease inclusion of fixed assets at their value to the Equipment, fixtures business by reference to current costs. However, and fittings four years for 2001/02 the values of fixed assets expressed in current cost terms are not materially different A full year’s depreciation is provided in the year to historic costs, and so fixed assets are shown of an asset’s acquisition, and none in the year at historic cost on the balance sheet. of its disposal.
Separate accounts have been prepared for the Software costs are written off in full in the year activities funded from the grant-in-aid, in of acquisition. accordance with the directions issued by the Secretary of State. Consolidated accounts have d) National Lottery Distribution Fund not been prepared. Balances held in the National Lottery Distribution Fund remain under the b) Recognition of income and expenditure stewardship of the Secretary of State for All income and expenditure is accounted for on Culture, Media and Sport. However, the a receivable basis. share of these balances attributable to the Arts Council of England is as shown in the As required by the Secretary of State, a accounts and, at the balance sheet date, has distinction is made in respect of lottery grants been notified by the Secretary of State for between ‘hard’ and ‘soft’ commitments. A hard Culture, Media and Sport as being available commitment exists when the Council has made for distribution by the Arts Council of England a firm offer of grant which (together with in respect of current and future appropriate conditions) has been accepted by commitments. the recipient. A soft commitment arises when the Council has agreed in principle to fund a scheme and made an offer, but the offer and associated conditions have not been accepted.
The Arts Council of England annual review and accounts Lottery accounts 59 Notes to the lottery distribution accounts continued
e) Taxation The Arts Council of England is a registered charity (No. 1036733) and is eligible under Income and Corporation Taxes Act 1988 to seek from the Inland Revenue exemption from taxes on income arising from its charitable objectives. The Inland Revenue has granted this exemption. Accordingly, no taxation has been provided for in these accounts. f) Pensions The Arts Council provides a defined benefit pension scheme for its employees. However, as a multi-employer scheme the Council is unable to identify its share of the underlying assets and liabilities. The scheme has therefore been accounted for as if it were a defined contribution scheme, in accordance with FRS1 7 ‘Retirement Benefits’, with the costs of the scheme charged to the income and expenditure account. g) Apportioned costs The Arts Council incurs indirect costs which are shared between activities funded from grant-in-aid and activities funded from the National Lottery. The Council is required to apportion indirect costs properly between the two activity areas on a full cost basis in accordance with good accounting practice, based on an assessment of time spent on each activity. h) Notional costs In accordance with HM Treasury guidance, the notional cost of capital is charged in the income and expenditure account in arriving at a net incoming/(outgoing) resources figure. This is then added back in the income and expenditure account, and so no provision is included on the balance sheet.
2 Other income 2001/02 2000/01 £000s £000s Sundry income 58 168 Services to the Film Council – 100 58 268
Services to the Film Council relate to income received for services provided in the period 1 April 2000 to 1 1 August 2000.
3a) Staff costs 2001/02 2000/01 £000s £000s Salaries and wages 1,481 1,390 Employer’s national insurance 126 118 Arts Council Retirement Plan (1994) 172 138 1,779 1,646
Staff costs include £31 7,000 relating to the Artis IT information systems project (2001: £307,000).
The Chairman, Council and Advisory Panel Members were not paid for their services.
The average number of employees engaged directly on lottery activities for the year ended 31 March 2002 was as follows:
2001/02 2000/01 Management and operational 45 37
The Arts Council of England annual review and accounts 60 Lottery accounts Notes to the lottery distribution accounts continued
3b) Pensions The scheme is a defined benefit scheme. However, as a multi-employer scheme the Arts Council of England is unable to identify its share of the underlying assets and liabilities.The scheme has therefore been accounted for as if it were a defined contribution scheme, in accordance with FRS1 7 ‘Retirement Benefits’.
The scheme is financed by payments by the Arts Council of England and employees into a trustee-administered fund independent of the Arts Council of Englands’ finances. These contributions are invested by a leading fund management company. The net market value of scheme assets at 31 March 2002 was £27,773,000.
An actuarial valuation of the Pension Fund takes place every three years. The last valuation was at 1 April 1999. At this date the actuarial value of the assets using the projected unit method was sufficient to cover 91% of the value accrued to members (a deficit of £2,100,000). Following completion of the 1999 valuation, and on the advice of the actuary, the employer’s contribution was increased to 13.5% with effect from 1 April 2000 for a period of 15 years in order to meet the Minimum Funding Requirement of the Pensions Act 1995. An actuarial valuation is currently being undertaken and any shortfall will be met by future contributions.
The principal long-term assumptions used for the purposes of the actuarial valuation were as follows:
Rate of return on assets 8.0% Rate of pay increases 5.5% Rate of pension increases 4.0%
Amounts due to the fund at 31 March 2002 are disclosed in Note 9 of the Arts Council of England’s grant-in-aid account.
3c) Executive Directors’ remuneration The remuneration of the Executive Directors of the Arts Council of England for the year ended 31 March 2002 is detailed in the table below. These costs were charged to the Arts Council of England’s grant-in-aid accounts and therefore comprise part of the costs apportioned in the income and expenditure account (see note 1g).
Salary Pension Benefits Bonus Total Total in kind remuneration remuneration 2001/02 2000/01 £000s £000s £000s £000s £000s £000s Peter Hewitt (Chief Executive)* 105 13 1 1 1 130 141 Wendy Andrews (Communications) 72 10 – 4 86 84 Kim Evans (Arts) 125 13 – 7 145 145 Graham Long (Planning and Resources) 72 10 1 6 89 86 Pauline Tambling (Research and Development) 54 7 – 7 68 84 Ann Bridgwood (Research and Development) 15 2 – – 17 – Keith Harrison (Finance and Resources) 1 – – – 1 – 444 55 2 35 536 540
*Peter Hewitt’s 2000/01 remuneration includes £13,000 of back-dated salary together with £2,000 pension contributions relating to 1999/2000 which was awarded in October 2000.
Peter Hewitt, Wendy Andrews and Pauline Tambling are on five year service contracts. Kim Evans is on a permanent contract.
The Arts Council of England annual review and accounts Lottery accounts 61 Notes to the lottery distribution accounts continued
3c) Executive Directors’ remuneration continued Keith Harrison became Acting Executive Director of Finance and Resources on 25 March 2002. Ann Bridgwood became Acting Executive Director of Research and Development on 1 January 2002, following Pauline Tambling’s secondment to the team working on the restructuring of the organisation.
Details of the pension entitlements for the Executive Directors of the Arts Council of England for the year ended 31 March 2002 (period ending 31 December 2001 in the case of Pauline Tambling) were as follows:
Age Accrued Pension Accrued Pension pension increase in pension increase in the year 2000/01 the year (net of inflation) (net of inflation) 2000/01 Years £000s £000s £000s £000s Peter Hewitt (Chief Executive) 50 19 5 14 6 Wendy Andrews (Communications) 44 10 4 63 Kim Evans (Arts) 51 12 5 75 Graham Long (Planning and Resources) 44 13 4 93 Pauline Tambling (Research and Development) 46 14 3 11 4 Ann Bridgwood (Research and Development) 52 1 1 –– Keith Harrison (Finance and Resources) 42–––– 69 22 47 21
No retirement benefits are payable to scheme members who retire before completing two years pensionable employment.
4 Other operating costs 2001/02 2000/01 £000s £000s Depreciation 97 234 Travelling, subsistence and entertainment 75 64 Publicity and promotions 75 85 Agency staff costs 253 468 Professional fees 620 655 Office and sundry 71 127 Irrecoverable VAT 1,464 1,496 External assessment costs 8,066 7,694 Artis IT information systems project 1,797 2,294 12,518 13,117
5 Increase in lottery funds 2001/02 2000/01 £000s £000s Stated after charging: (a) Auditors’ remuneration 34 31 (b) Staff travel, subsistence and hospitality 83 157
The Arts Council of England annual review and accounts 62 Lottery accounts Notes to the lottery distribution accounts continued
6 Tangible fixed assets Short Equipment Total leasehold fixtures improvements and fittings £000s £000s £000s Cost at 1 April 2001 284 656 940 Additions ––– Less disposals – (237) (237) Cost at 31 March 2002 284 419 703
Depreciation at 1 April 2001 151 495 646 Less depreciation on disposals – (237) (237) Provided for 2001/02 30 67 97 Depreciation at 31 March 2002 181 325 506
Net book value at 31 March 2002 103 94 197
Net book value at 31 March 2001 133 161 294
7 Debtors 31 March 2002 31 March 2001 £000s £000s Prepayments 54 92 Accrued income 922 109 Other debtors 1,053 1,924 2,029 2,125
Included in other debtors in 2000/01 was an interest free loan to the Royal Academy of Dramatic Art of £1,891,000, and during 2001/02 a further loan payment of £709,000 was made. The total loan of £2,600,000 was repaid in full during 2001/02. Included in other debtors in 2001/02 is an interest free loan to the Royal Exchange Theatre of £545,000. This loan is repayable in instalments by 31 March 201 1, the first instalment being due by 31 March 2005. Also included in other debtors in 2001/02 is an interest free loan to the Lowry Centre Trust of £500,000 which is repayable on demand.
8 Investments: balance in the National Lottery Distribution Fund 2001/02 2000/01 £000s £000s Balance at 1 April 254,731 273,933 Share of proceeds from the National Lottery Distribution Fund 196,252 183,429 Investment returns on the Distribution Fund 15,175 15,203 Investment returns transferred to the Film Council – 1,078 Unrealised losses (1,524) – Cash drawn down (218,287) (218,912) Balance at 31 March 246,347 254,731
The balance in the National Lottery Distribution Fund at 31 March 2002 was unaudited at the date of signing these accounts.
The Arts Council of England annual review and accounts Lottery accounts 63 Notes to the lottery distribution accounts continued
9 Notional costs Notional cost of capital is calculated as 6% of the average net assets employed by the Arts Council (Lottery Distribution) in the year, excluding the balance in the Distribution Fund and hard grant commitments.
10 Soft and hard commitments 31 March 2002 31 March 2001 £000s £000s Soft commitments brought forward 22,81 7 90,635 Soft commitments transferred to the Film Council – (1 1,360) Film franchise soft commitments novated to the Film Council – (59,350) Soft commitments transferred to hard commitments (162,833) (131,282) Soft de-commitments (10) (219) Soft commitments made 165,506 134,393 Balance of soft commitments outstanding carried forward 25,480 22,81 7
Hard commitments brought forward 277,207 31 7,270 Hard commitments transferred to the Film Council – (1 1,645) Hard commitments met in the last year (202,089) (154,363) Hard de-commitments (8,544) (5,337) Hard commitments made 162,833 131,282 Balance of hard commitments outstanding carried forward 229,407 277,207
Ageing of hard commitments: 2001/02 – 151,594 2002/03 141,866 77,020 2003/04 65,549 29,927 2004/05 14,015 18,666 2005/06 7,977 – Total hard commitments 229,407 277,207
1 1 Creditors 31 March 2002 31 March 2001 £000s £000s Trade creditors 145 230 Accruals and deferred income 1,014 1,155 1,159 1,385
12 Leases There were no commitments under non-cancellable operating leases at 31 March 2002 (2001: nil).
13 Capital commitments There were no contracted capital commitments at 31 March 2002 (2001: £nil).
14 Charges on assets Since November 1997 the standard conditions of grant give the Arts Council an option to take a formal charge on assets for building projects in relation to grants exceeding £250,000. This option is exercised in all appropriate circumstances.
The Arts Council of England annual review and accounts 64 Lottery accounts Notes to the lottery distribution accounts continued
15 Cash flow reconciliation Reconciliation of operating surplus/(deficit) to net cash flow from operating activities.
2001/02 2000/01 £000s £000s Operating surplus 31,945 49,720 Interest receivable (733) (653) Depreciation charges 97 234 Decrease in debtors and prepayments 7,634 18,355 (Decrease) in creditors (48,165) (28,669) Net cash (outflow)/inflow from operating cash flows (9,222) 38,987
16 Reconciliation of net cash flow to movement in funds 2001/02 2000/01 £000s £000s (Decrease)/increase in cash in the year (7,643) 4,051 Funds at 1 April 7,983 3,932 Funds at 31 March 340 7,983
1 7 Analysis of net cash 1 April 2001 Cash flow 31 March 2002 £000s £000s £000s Cash 7,983 (7,643) 340
18 Movement in lottery funds 2001/02 2000/01 £000s £000s Opening lottery reserve at 1 April (15,525) (40,295) Transferred from the Income and Expenditure Account 31,945 49,720 Transferred to Film Council – (24,950) Lottery reserve at 31 March 16,420 (15,525)
The Arts Council of England annual review and accounts Lottery accounts 65 Notes to the lottery distribution accounts continued
19 Reconciliation of transactions with delegate bodies a) National Foundation for Youth Music The National Foundation for Youth Music (Youth Music) is a delegate body of the Arts Council for the purpose of distribution of lottery funds. Transactions in these accounts relating to this delegation reconcile to transactions in the accounts of Youth Music as follows:
2001/02 2000/01 £000s £000s Transactions in Arts Council accounts: Grant commitments in the year 10,000 10,000 Youth Music creditor balance as at 31 March 15,302 16,636
This reconciles to Youth Music’s accounts for the year ended 31 March as follows: Balance at 1 April 10,025 8,965 Incoming funds: Arts Council grant 10,000 10,000 Outgoing funds: Grant expenditure (13,935) (7,51 1) Other expenditure (1,019) (1,429) Balance at 31 March 5,071 10,025
Arts Council debtor balance as at 31 March 15,302 16,636 b) Regional Arts Boards During 2001/02, the 10 Regional Arts Boards operated as delegate bodies of the Arts Council for the purpose of distribution of lottery funds. Transactions in these accounts relating to these delegations reconcile to transactions in the accounts of the 10 Regional Arts Boards as follows:
Transactions in the Arts Council accounts:
Grant Delegate body Grant Delegate body commitments creditor at commitments creditor at in 2001/02 31 March 2002 in 2000/01 31 March 2001 £000s £000s £000s £000s East England Arts 2,805 4,156 2,461 2,325 East Midlands Arts 2,232 2,630 1,920 1,721 London Arts 3,882 4,290 3,220 2,850 Northern Arts 2,005 1,551 1,600 1,151 North West Arts Board 4,71 1 1,820 2,959 2,190 Southern Arts 2,398 2,543 2,275 1,722 South East Arts 2,155 1,374 2,1 15 1,544 South West Arts 2,121 2,165 1,887 1,731 West Midlands Arts 3,008 2,442 2,382 1,933 Yorkshire Arts 2,697 2,951 2,395 2,073 28,014 25,922 23,214 19,240
The Arts Council of England annual review and accounts 66 Lottery accounts Notes to the lottery distribution accounts continued
19 Reconciliation of transactions with delegate bodies continued b) Regional Arts Boards continued This reconciles to the Regional Arts Boards’ restricted funds note in the 2001/02 accounts as follows:
Reserves at Incoming funds: Incoming funds: Outgoing Reserves at 31 March 2001 Arts Council Bank interest 31 March 2002 grant £000s £000s £000s £000s £000s East England Arts 2,260 2,805 – (3,305) 1,760 East Midlands Arts 854 2,232 2 (2,977) 1 1 1 London Arts 2,281 3,882 27 (3,539) 2,651 Northern Arts 599 2,005 – (2,570) 34 North West Arts – 4,71 1 29 (4,740) – Southern Arts 1,344 2,398 5 (1,742) 2,005 South East Arts 1,384 2,155 26 (3,522) 43 South West Arts 874 2,121 9 (2,649) 355 West Midlands Arts 727 3,008 – (3,209) 526 Yorkshire Arts 1,182 2,697 8 (2,786) 1,101 1 1,505 28,014 106 (31,039) 8,586
20 Related parties The Arts Council of England maintains publicly available registers in which Council members declare their interests, including any direct interests in grant applications made to the Arts Council and commercial relationships with the Arts Council. The following interests in grant recipients were declared for the year ended 31 March 2002:
Grant Balance Organisation Council member Relationship awarded for outstanding at the year ended 31 March 2002 31 March 2002 £000s £000s – 120 The Hall for Cornwall Trust David Brierley CBE Trustee – 819 Royal Shakespeare Theatre Advisory director – 20 St Ives International Trustee – 698 The Theatre Royal (Plymouth) Ltd Director 65 2 Random Dance Company Deborah Bull CBE Board member – 209 Royal Opera House Employee – 297 South Bank Centre Board member – 133 Nottingham Theatre Trust Ltd Anish Kapoor Public art commission – 5 COMA Joanna MacGregor Board member 9,196 10,075 English National Opera Dr Janet Ritterman Board member
Executive Directors and senior managers in the Arts Council of England are also required to declare any direct interests in grant applications made to the Arts Council and commercial relationships with the Arts Council. The following interests in grant recipients were declared for the year ended 31 March 2002.
The Arts Council of England annual review and accounts Lottery accounts 67 Notes to the lottery distribution accounts continued
20 Related parties continued
Grant Balance Organisation Executive Director/ Relationship awarded for outstanding at senior manager the year ended 31 March 2002 31 March 2002 £000s £000s 28 66 Africa Centre Hilary Carty Family member is employee 0 6,180 Royal National Theatre Moss Cooper Spouse is employee 9,196 10,075 English National Opera Graham Long Became Operations Director of ENO in April 2002
The Department for Culture, Media and Sport is the sponsoring department for the Arts Council of England and is regarded as a related party. Regional Arts Boards and the National Foundation for Youth Music are similarly regarded as related parties by virtue of their funding relationship with the Arts Council. During the year the Arts Council of England had material transactions with other government departments and other UK lottery distributors including the Scottish Arts Council and the Arts Council of Wales. The Arts Council of England also had various transactions with the British Film Institute, the Crafts Council and the London Film and Video Development Agency for which the Department for Culture, Media and Sport is also considered the sponsoring department.
21 Financial instruments FRS13, Derivatives and other Financial Instruments, requires disclosure of the role which financial instruments have had during the period, in creating or changing the risks the Arts Council of England faces in undertaking its activities.
Liquidity risk In 2001/02 93% of the Arts Council of England’s income derived from the National Lottery. The remaining income derived from investment returns from the balance held with the National Lottery Distribution Fund (6%), and from bank interest and other income (1%).
At the balance sheet date the Arts Council of England had net assets of £16,420,000.
Cash flow projections over the next financial year The Arts Council of England does not believe that it is exposed to significant liquidity risks, and is satisfied that it has sufficient current liquid resources to cover its projected payments over the next financial year.
Liquid assets as at 31 March 2002 £000s Market Value of NLDF investments 246,347 Cash 340
Interest rate risk In accordance with the National Lottery etc. Act 1993 (as amended), National Lottery income receivable by the Arts Council of England is passed by the National Lottery Distribution Fund to the Commissioners for the Reduction of National Debt who invest the income in a narrow band of low risk assets such as government bonds and cash. The Arts Council of England has no control over the investment of funds on their behalf. The management of the National Lottery Distribution Fund meets with representatives of the Commissioners for the Reduction of National Debt on a regular basis to manage the risks associated with the investment of these monies.
At the balance sheet date the market value of the Arts Council’s shares of the National Lottery Distribution Fund was £246,347,000. In the year the average return on these investments was 4.7%.
The Arts Council of England annual review and accounts 68 Lottery accounts Notes to the lottery distribution accounts continued
21 Financial instruments continued Cash balances which are drawn down by the Arts Council of England from the NLDF to pay grant commitments and operating costs are held in an instant access variable rate bank account, which carries an interest rate of 0.25% below the base rate. The cash balance at the year end was £340,000. The Arts Council of England considers that it is not exposed to significant interest rate risks on its cash balances.
Foreign currency risk The Arts Council of England is not exposed to any foreign exchange risks.
22 Post balance sheet event On 1 April 2002, the arts funding system in England underwent a major reorganisation. The 10 Regional Arts Boards transferred their assets and liabilities as detailed in the table below to the Arts Council of England. All Regional Arts Boards will be wound up once all residual matters have been resolved. Costs relating to the merger totalling £2,152,000 have been apportioned as follows: £861,000 to the grant-in-aid accounts and £1,291,000 to the lottery distribution accounts. The sum of £1,291,000 has been disclosed separately in the income and expenditure account as an exceptional item. The majority of these costs relate to professional fees.
Net assets at 31 March 2002 £000s East England Arts 1,760 East Midlands Arts 111 London Arts 2,651 Northern Arts 34 North West Arts – Southern Arts 2,005 South East Arts 43 South West Arts 355 West Midlands Arts 526 Yorkshire Arts 1,101 8,586
23 Write offs During the year the Arts for Everyone (Express) programme was closed. All clients with outstanding balances were notified that these balances had been withdrawn. As part of the close down procedure, the status of all active grants within the programme was reviewed. Amounts already paid out on grants were deemed to be recoverable. In a small number of cases, where legal and financial advice was that it would not be appropriate or possible for these balances to be recovered, the balances have been written off. The total balance written off in accordance with this procedure was £265,000.
24 Contingent liability As detailed in note 22 above, costs relating to the merger of the Arts Council of England and the 10 Regional Arts Boards of £1,291,000 have been included in the accounts. Further costs will be incurred in 2002/03. Due to their uncertain nature, no provision has been included for these additional costs in these accounts.
The Arts Council of England annual review and accounts Lottery accounts 69 Lottery hard commitments 2001/02 Schedule 1 to the lottery accounts for the period to 31 March 2002
££ ££ East England Arts region London Arts region Arts Capital Programme Arts Capital Programme Colchester Borough Council Arts Admin 160,000 (Firstsight Art Gallery) 120,000 Asian Music Circuit 120,000 Wysing Arts 100,000 Association of Black Grants <£100,000 145,000 Photographers 120,000 365,000 Bernie Grant Centre 220,000 Awards for All Lyric Theatre Hammersmith 307,512 Grants <£100,000 826,386 Photographers’ Gallery 1 10,000 826,386 Roundhouse Trust 1 10,000 Capital Stephen Lawrence Charitable Trust 209,680 Junction (CDC) 4,804,000 Talawa Theatre Company 1 70,000 Palace Theatre Watford 392,688 Unicorn Children’s Centre 4,610,000 Grants <£100,000 87,956 Yaa Asantewaa Arts and 5,284,644 Community Centre 120,000 Regional Arts Lottery Young Vic Company 1 76,540 Programme 1 Grants <£100,000 385,000 Grants <£100,000 29,706 6,818,732 29,706 Awards for All Regional Arts Lottery Grants <£100,000 820,891 Programme 2 820,891 Grants <£100,000 2,804,777 Capital 2,804,777 Almeida Theatre Company 1,800,000 Camden Arts Centre 2,464,783 Total East England Arts region 9,310,513 English National Opera 9,195,500 English Stage Company 1,008,41 1 East Midlands Arts region Hackney Empire 4,000,000 Arts Capital Programme Ocean Music Trust 400,000 Grants <£100,000 200,000 Sadler’s Wells Trust 5,275,500 200,000 24,144,194 Awards for All Recovery Programme Grants <£100,000 529,302 Africa Centre 135,000 529,302 Lux Centre 165,000 Capital Royal Philharmonic Orchestra 1,250,000 Derby Playhouse 104,345 Grants <£100,000 95,000 104,345 1,645,000 Regional Arts Lottery Regional Arts Lottery Programme 2 Programme 2 Grants <£100,000 2,231,720 Grants <£100,000 3,882,129 2,231,720 3,882,129 Stabilisation London International Festival Total East Midlands Arts region 3,065,367 of Theatre 500,000 Lyric Theatre Hammersmith 1,185,000
The Arts Council of England annual review and accounts 70 Lottery accounts Lottery hard commitments 2001/02 continued Schedule 1 to the lottery accounts for the period to 31 March 2002
££ ££ Philharmonia Orchestra 2,262,000 Recovery Programme Grants <£100,000 131,000 Manchester Camerata 185,000 4,078,000 185,000 Regional Arts Lottery Total London Arts region 41,388,946 Programme 2 Grants <£100,000 4,710,719 Northern Arts region 4,710,719 Arts Capital Programme Stabilisation Centre for the Children’s Book 185,000 Halle Concerts Society 3,840,000 Dance North 1 1 1,707 Wordsworth Trust 600,000 Northern Stage 368,667 Grants <£100,000 40,000 665,374 4,480,000 Awards for All Grants <£100,000 318,950 Total North West Arts region 1 7,161,209 318,950 Capital Southern Arts region Middlesbrough Borough Arts Capital Programme Council (visual arts gallery) 350,000 Art Asia Trust 127,500 University of Northumbria 1 70,000 Grants <£100,000 100,000 520,000 227,500 Recovery Programme Awards for All Arc Trust 100,000 Grants <£100,000 556,326 100,000 556,326 Regional Arts Lottery Capital Programme 2 Salisbury Arts Centre 426,442 426,442 Grants <£100,000 2,005,402 2,005,402 Recovery Programme Bournemouth Symphony Orchestra 2,200,000 Total Northern Arts region 3,609,726 2,200,000 Regional Arts Lottery North West Arts region Programme 2 Arts Capital Programme Grants <£100,000 2,397,674 Bluecoat Arts Centre 1 10,000 2,397,674 Chinese Arts Centre 31 1,015 Greater Manchester Arts Centre Total Southern Arts region 5,807,942 (Cornerhouse) 1 10,000 Grants <£100,000 150,000 South East Arts region 681,015 Arts Capital Programme Awards for All Eastbourne Borough Council Grants <£100,000 604,475 (Towner Art Gallery) 1 10,000 604,475 Grants <£100,000 150,000 Capital 260,000 Lowry Centre Trust 5,500,000 Awards for All Royal Exchange 1,000,000 Grants <£100,000 423,051 6,500,000 423,051
The Arts Council of England annual review and accounts Lottery accounts 71 Lottery hard commitments 2001/02 continued Schedule 1 to the lottery accounts for the period to 31 March 2002
££ ££ Capital Grants <£100,000 105,000 Brighton Festival Society 2,000,000 335,000 2,000,000 Awards for All Recovery Programme Grants <£100,000 661,931 Chichester Festival Theatre 1,710,000 661,931 Fabrica 233,318 Capital 1,943,318 Arvon Foundation 522,500 Regional Arts Lottery c/Plex 1 7,974,867 Programme 2 18,497,367 Grants <£100,000 2,154,854 Recovery Programme 2,154,854 Birmingham Repertory Theatre 300,000 The Drum 325,000 Total South East Arts region 6,781,223 Grants <£100,000 20,000 645,000 South West Arts region Regional Arts Lottery Arts Capital Programme Programme 2 Spike Island Artspace 100,000 Grants <£100,000 3,008,200 Watershed Arts Trust 100,000 3,008,200 Grants <£100,000 200,000 Stabilisation 400,000 City of Birmingham Symphony Awards for All Orchestra 4,750,000 Grants <£100,000 746,808 Royal Shakespeare Company 2,200,000 746,808 Grants <£100,000 70,000 Capital 7,020,000 Arnolfini Gallery 7,500,000 7,500,000 Total West Midlands Arts region 30,167,498 Recovery Programme Bristol Old Vic Trust 180,000 Yorkshire Arts region Forkbeard Fantasy 125,000 Arts Capital Programme 305,000 Creative Art House 1 10,000 Regional Arts Lottery Doncaster Metropolitan Borough Programme 2 Council (performing arts facility) 1 10,000 Grants <£100,000 2,121,067 Kala Sangam 120,000 2,121,067 Kirklees Metropolitan Council Stabilisation (Deighton Centre) 120,000 Watershed Arts Trust 746,000 Grants <£100,000 189,500 746,000 649,500 Awards for All Total South West Arts region 1 1,818,875 Grants <£100,000 685,396 685,396 West Midlands Arts region Capital Arts Capital Programme Grants <£100,000 99,955 Belgrade Theatre Trust (Coventry) 1 10,000 99,955 Black Voices 120,000
The Arts Council of England annual review and accounts 72 Lottery accounts Lottery hard commitments 2001/02 continued Schedule 1 to the lottery accounts for the period to 31 March 2002
££ ££ Recovery Programme Stabilisation Axis 300,000 Welsh National Opera 2,560,000 Opera North 2,563,000 Grants <£100,000 46,054 Phoenix Dance Company 618,1 76 2,606,054 Grants <£100,000 25,000 3,506,1 76 Total national grants 24,384,201 Regional Arts Lottery Programme 2 Grants <£100,000 2,696,750 TOTAL GRANTS 162,833,277 2,696,750 Stabilisation Sheffield Theatres 1,700,000 1,700,000
Total Yorkshire Arts region 9,337,777
National grants National Foundation for Youth Music 10,000,000
National Touring Programme Almeida Theatre Company 167,872 Arc Dance Company 120,000 Bury St Edmunds Theatre 134,279 Circus Space 100,000 Crafts Council 1 75,000 Dance Umbrella 401,570 Film and Video Umbrella 150,000 Kaos Theatre UK 1 70,909 London International Festival of Theatre 1 19,983 Motionhouse Dance Theatre 1 1 1,300 Oxford Playhouse 1 12,932 Theatre Royal Stratford East 126,834 Touring Consortium 1 10,000 UK Arts International 213,202 Watermill Theatre 120,099 Yvonne Arnaud Theatre 120,386 Grants <£100,000 7,092,876 9,547,242
Space for Sport and Arts 2,230,905
The Arts Council of England annual review and accounts Lottery accounts 73 National Lottery Report 2001/02
Introduction and government departments, and evidence The year under review began a period of of such activity is included in this review. considerable change for the Arts Council of England, with proposals in March 2001 for a The year under review has seen a range of major restructuring of the arts funding system. lottery initiatives, operated in the context of On 1 April 2002, the Arts Council and the the Arts Council’s overall strategic objectives. English Regional Arts Boards joined together to form a single development organisation As reported last year the Arts Capital for the arts in England. Programme, successor to the original capital programme, received applications early in The Arts Council aims to develop integrated 2001. This new programme was designed policies for the distribution of both lottery and to be more streamlined and transparent than grant-in-aid funding, and to establish a its predecessor and to give applicants an streamlined set of funding programmes for indication of whether or not they had been the new organisation. Both of these objectives admitted to the programme as quickly as will be reflected in the corporate planning possible. The results of this first admission work being undertaken during 2002/03, and round were announced in July 2001, and this will provide opportunities to review and 61 projects were subsequently admitted to expand on lottery strategic planning in a new the programme with a total of £88 million consolidated corporate plan. allocated between them.
In the year under review the Council In March 2002, the Arts Council published maintained its commitment to ensuring that ‘Pride of Place’, a book celebrating the all its funds are utilised in ways that will make first capital programme and demonstrating a difference by increasing the quality of the its impact on the cultural landscape arts, and opportunities for access to and in England. participation in artistic activity throughout England. In particular, the needs identified in This was also the first full year of the the 1999/2002 lottery strategic plan remained delegated Regional Arts Lottery Programme our guiding principles, namely: (RALP). The regions were able to adopt a strategic and integrated approach to lottery •the need to expand access through applications with the scope offered by this improved touring and distribution programme for the support of arts projects, •the need for more training and better small scale capital and organisational information provision development projects. •greater flexibility on partnership funding •the need to find ways of reaching particular During the year under review the Arts Council communities who have not been benefiting furthered its partnership with Sport England, from lottery funds, and the New Opportunities Fund, the Department •ensuring greater geographical equity. for Culture, Media and Sport and the Department for Education and Skills in the Since the preparation of the 1999/2002 implementation of the Space for Sport and plan, the Arts Council has responded to Arts programme. A total of 65 local authorities encouragement from the Government to work have benefited from these awards which more extensively with other lottery distributors will see 301 primary schools with improved
The Arts Council of England annual review and accounts 74 National Lottery Report National Lottery Report 2001/02 continued
facilities for sports and arts use by both the The responsibilities of a lottery distributor schools and the community. continue long after an award is agreed. The Arts Council is still actively monitoring many The Awards for All programme was enhanced hundreds of awards made in previous years, by the addition of the New Opportunities Fund, often under earlier programmes. The activities which has increased the range of activities involved and results of the monitoring are that can benefit from this programme. During described in this report. the year considerable effort was devoted to the development of a formal joint scheme for Policy Directions Awards for All – made possible under the Under the National Lottery etc. Act 1993, the terms of the 1998 Lottery Act. This scheme will Secretary of State issued Policy Directions in enable a real integration of support under this August 1998, which the Arts Council must take programme and greater simplicity and into account in distributing National Lottery transparency for applicants. funds. These are set out below, with a short explanation of how the directions have The National Touring Programme continued been met. to support a range of activities designed to encourage dynamic relationships between The references given below relate to the artists/producers, venues/promoters and National Lottery etc. Act 1993 as amended audiences. The programme recognises the by the National Lottery Act 1998. needs of existing networks of venues and promoters but also seeks to encourage new A The need to ensure that money is networks, commission new works and distributed under section 25 (1) for projects explore new ways of presenting work from a which promote the public good or diversity of sources and cultural backgrounds. charitable purposes and which are not intended primarily for private gain. The National Foundation for Youth Music (Youth Music) approached the end of its first This direction is reflected, as appropriate, in three years with optimism and enthusiasm application packs and criteria for funding for for further development of its work. The Arts all lottery programmes run by the Arts Council Council was pleased to confirm a further or any of its delegate bodies. This report tranche of funding, ensuring the continuation demonstrates that the direction has been of these vital areas of activity. taken into account, including through projects that received over £5 million from Arts Council The Recovery Programme continued to lottery funds. Arts Council programmes will provide a lifeline to organisations faced only fund projects with an element of private with critical financial difficulties and assisted gain where any such gain is incidental and them in securing operational stability in the subsidiary to wider public benefit. medium term. Its partner Stabilisation Programme is concerned with the development B The need to ensure that it considers of long-term strategies for change, addressing applications which relate to the complete artistic as well as organisational and range of activities falling within section financial issues. 22(3)(a) and in respect of which it has power to distribute money, taking into account:
The Arts Council of England annual review and accounts National Lottery Report 75 National Lottery Report 2001/02 continued
i its assessment of the needs of the arts priority is reflected as appropriate through the and its priorities for the time being for Arts Council’s lottery funding. The Arts Council addressing them has identified this as one of its key output indicators for lottery funding which will enable ii the need to ensure that all parts of us to monitor our achievements in relation England have access to funding to this priority. In the year under review this is particularly evident in the admissions to the iii the scope for reducing economic and Arts Capital Programme and through the social deprivation at the same time as Space for Sport and Arts programme, as well creating benefits for the arts. as continued support for Youth Music.
As already noted, the Arts Council’s lottery E The need to further the objectives of strategic plan for 1999/2002 set out the Arts sustainable development. Council’s priorities for the period, which were informed by an assessment of arts needs. The Arts Council considers sustainability in The extent to which these priorities have been relation to the future plans of all major lottery met is considered in greater detail elsewhere awards. Applicants are asked to show how in this report. The allocation of funds has projects will provide benefits after the period continued to be influenced by the need to of the expenditure of grant, and in the case ensure greater geographical equity. The of major capital grants for a period of up to potential economic and social benefits of 25 years. Sustainable development is also Arts Council programmes are considered both the underlying key objective for both the when the criteria for funding programmes are Stabilisation and Recovery Programmes. established and in relation to major awards. F The needs of projects relating to film and C The need to promote access to the arts for the moving image, and in particular the people from all sections of society. need to foster the development of sustainable structures in the film industry Access benefits are assessed for every by, among other things, supporting the application for Arts Council lottery funds. The development, distribution and promotion Arts Council has placed increasing importance of films, as well as their production. on extending the economic and social range of beneficiaries of arts lottery funding. This can Formal responsibility for film production funding be seen in the balance of admissions to the passed to the Film Council in 2000. The Council Arts Capital Programme; through participation wished to provide for film exhibition under the with other lottery distributors in the Awards for terms of the Arts Capital Programme. A All and Space for Sport and Arts programmes; budget of £15 million was set aside for this and through the priorities identified for all purpose and, in collaboration with the Film other lottery programmes. Council, plans for the allocation of these funds are under development. Artists’ film and video D The need to promote knowledge and activities are supported under Awards for All, appreciation of the arts by children and RALP and the National Touring Programme. young people. The Government has indicated its intention Children and young people are one of the to issue a new policy direction in recognition Arts Council’s five strategic priorities. This of the changed responsibilities since the
The Arts Council of England annual review and accounts 76 National Lottery Report National Lottery Report 2001/02 continued
advent of the Film Council. In the meantime towards viability beyond the period of the Arts Council has operated in accordance the grant wherever possible. with an interim understanding with the Department for Culture, Media and Sport as All lottery applications to the Arts Council are to the extent of its responsibilities in relation assessed in terms of financial viability and to film activities. management. Grants are not awarded unless projects can show appropriate viability. G The needs of projects relating to crafts. Business plans are requested from applicants, and assessed, where the lottery programme Crafts projects are eligible for funding under requires this. The Arts Council assesses the the Arts Council’s lottery programmes. In future prospects of projects beyond the period particular, care is taken to ensure that crafts of the grant where that is appropriate – for receive appropriate benefits from ongoing example, for Stabilisation, Recovery and programmes such as the National Touring capital awards. Programme and RALP. J The desirability of supporting the H The need for money distributed under development of long-term financial and section 25 (1) to be distributed to projects managerial viability of organisations in the only where they are for a specific time- arts. In taking this into account the Arts limited purpose. Council shall have regard to Direction H.
All lottery awards made by the Arts Council Long-term financial and management viability and its delegate bodies during 2001/02 were is assessed for larger capital awards and is for specific and time-limited purposes. monitored by the Arts Council throughout a funded project’s duration. The Arts Council’s I The need: Stabilisation and Recovery programmes were established with the specific aim of securing i in all cases, for applicants to the medium to long-term financial, demonstrate the financial viability of management and creative viability of arts the project for the period of the grant organisations.
ii where capital funding or setting up K The need to require an element of costs are sought, for a clear business partnership funding and/or contributions plan beyond the period of the grant in kind from other sources, commensurate incorporating provision for associated with the reasonable ability of different kinds running and maintenance costs of applicants, or applicants in particular areas to obtain such support. iii in other cases, for consideration to be given to likely availability of other Evidence of partnership support, whether in funding to meet any continuing costs the form of one-off contributions or continuing for a reasonable period after revenue support, has been required for all completion of the period of the lottery projects awarded Arts Council lottery funds. award, taking into account the size and Increasingly, the Arts Council has introduced nature of the project, and for lottery flexibility into the requirements for funding to be used to assist progress partnership funding so as to recognise the
The Arts Council of England annual review and accounts National Lottery Report 77 National Lottery Report 2001/02 continued
applicants’ ability to obtain such support. For either independent professional advice or example, the Arts Capital Programme is far through panels and committees. more flexible than its predecessor and RALP specifically reduces the requirement in the Monitoring and evaluation case of applications from geographic or other The broad principles underpinning monitoring priority areas. and evaluation activities have not changed in recent years although the practice has been L The desirability of working with other refined in the light of experience gained and organisations, including other distributors, lessons learned from earlier work. where this is an effective means of delivering elements of its strategy. Monitoring and evaluation take place at various stages of a lottery-funded project or The Arts Council worked very closely programme, and with a variety of objectives. throughout 2001/02 with the Regional Arts Boards and with Youth Music, and also with The operation of programmes is monitored to the Crafts Council, Film Council and other ensure that they are functioning in the ways national organisations. The Arts Council intended. This includes such matters as collaborated with other lottery distributors in reaching the expected spread of applicants, the Space for Sport and Arts programme and achieving the stated or expected processing in the further development of the Awards for times, and ensuring that policy directions All programme as an integrated joint scheme. governing the distribution and use of lottery funds are adhered to. M The need to ensure that its powers of solicitation under Section 25 (2A) are used Recipients of awards are monitored to ensure in conjunction with the pursuit of strategic that the funds awarded are applied to the objectives. activities as set out in the approved application and that the activities deliver the promised During 2001/02 the Arts Council and its public benefit and represent value for money. delegate bodies only used the powers to solicit applications in order to pursue Post-completion monitoring follows. This objectives set out in its lottery strategic plan. is designed to ensure that the expected outcomes of the awards continue to be N Such information as it considers necessary available and delivered. to make decisions on each application, including expert independent advice Evaluation of a programme may occur at the when required. conclusion of any pilot phase, or during the course of the operation of a programme and Application forms for all Arts Council lottery after its conclusion. Such evaluation assists the programmes request such information as is Arts Council in measuring the extent to which necessary to make decisions. The Arts Council it has met its own objectives and targets; took advice in considering applications from identifies, encourages and nurtures best external advisers, industry bodies, Regional practice; and, critically, informs the Arts Boards and other partners. The Arts development of future lottery plans. Council also took advice from relevant advisors,
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The scale and scope of each scheme in arts and creative activities. The Express determines the framework through which these scheme was designed to target grass-roots objectives are pursued. This annual report arts projects and help them start quickly, with briefly considers each of the programmes that minimum bureaucracy and maximum effect. were active during the year and reports the results of any associated monitoring and Due to the size of the funds involved and the evaluation. type of group targeted, a simple light-touch monitoring framework was adopted. Emphasis Arts for Everyone was placed on the initial assessment of the Launched in 1996, Arts for Everyone (A4E) application, which included seeking the opinions was a unique major lottery-funded revenue of two referees as to the ability of the applicant scheme, designed to open up new to deliver the project. If references were opportunities – opportunities to create new satisfactory and the application was approved, work, reach new audiences, encourage and the organisation received 75% of the award develop participation in the arts and enable on acceptance of the offer. The release of the young people to realise their creative potential. remaining 25% of the award was conditional It offered one-off revenue grants to small on submission of a simple final report and groups and established organisations for a evidence that the project took place. range of new creative projects. Almost 90% of all grant recipients submitted The scheme was divided into two streams: A4E final reports on their projects for monitoring. (Express), aimed at smaller-scale groups and On scrutiny of these reports, 745 (representing projects, and A4E (Main), offering opportunities 13.9% of the total) awards were reduced. for more established organisations to extend Reductions to an award were made for the scope of their core activities. various reasons including projects completing with a surplus, recipient groups not being The A4E scheme has been closed to new able to meet all conditions of the award, or applicants since 1998 and most projects funded failing to comply with standard conditions of by the scheme are now drawing to a close. lottery funding.
A4E (Express) The benefit to the arts across the country from During 2001/02, the A4E Express scheme the Express scheme has been significant and was formally closed. In total, £21,691,886 was far-reaching. A4E Express succeeded in awarded to 5,361 projects from across all regions reaching diverse audiences and participatory and all art forms. Awards of between £500 groups across all regions and art forms. It and £5,000 were granted to small community, gave the opportunity for more young people voluntary or amateur groups that had not to be actively involved in the arts and cultural received much or any public funding before. activity, supporting and developing talents and skills. The body of new work and valuable As the smaller scale forerunner to the A4E experience in the arts activity it helped to Main scheme, the Express scheme shared create and promote is vast, and remains a the same aims and objectives of encouraging lasting legacy of the scheme. participation in the arts, creating new work and encouraging young people to take part
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A4E (Main) agreed for some projects to allow successful The Main strand of the scheme offered completion. Delays to project completion funding of £5,000 to £500,000 for projects continued to occur due to various factors lasting up to three years, and was targeted that affected rural projects across the funding at more established arts organisations and streams, such as the winter flooding in other bodies with experience of organising autumn 2000, and the foot and mouth larger arts-based projects. epidemic of 2000/01. Knock-on effects from earlier delays in planning and difficulty in To release each payment, the applicant was raising partnership funding continue to required to submit monitoring reports providing impinge on original project completion dates. either artistic or financial information on the performance of the project. In addition, a At present, all projects are scheduled to finish proportion of the award was retained until before March 2003, with formal closure of the a final report and audited accounts were scheme in the first half of the following year. provided, verifying that the project had been successfully completed. A detailed plan and procedure guide is being prepared to enable much of the closure of the During the year, the original monitoring A4E Main scheme to take place by the end of procedures were reviewed and simplified to 2002/03. Involving ongoing communication reduce the administrative burden on grantee with recipient organisations and regular organisations and the Arts Council’s reporting between regional and national resources. Grant recipients were no longer offices, the closure procedure plan will assist required to make submissions on a quarterly both staff involved in monitoring A4E Main basis, but every six months. Monitoring could awards and grant recipients to meet final also be tailored to meet the needs of the conditions of the award. individual project; ie pre-term payments for school-based projects, or payments twice Awards for All a year for festivals where most activity was The past year has been a period of major concentrated in short periods of time. development for Awards for All. The involvement of the New Opportunities Fund provided an The requirement for partnership funding important and welcome expansion to the was also reviewed and more flexibility was scheme’s remit. The commitment of the employed to review individual cases, taking programme to maintaining its light-touch into account the applicant’s ability and approach, with simple and transparent opportunity to raise other funds. assessment and fast processing time, has received praise from many sources including At 31 March 2002, there were 216 active applicants, other funding bodies and the projects, out of a total of 425 grants awarded, Government. Awards for All was pleased and 202 final reports had been received and to provide a specific opportunity for Golden reviewed. During 2001/02,eight awards were Jubilee related activities, and as interest in the reduced following scrutiny of these reports. celebrations increased so did the avalanche of applications for funding. The staff and Projects in receipt of A4E Main funding were regional committee members all worked designed to take place within three years. As together to deal with such a time-critical reported last year, extensions have been surge in applications.
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The results of the impact study – forecast in Size of grant % projects Visits the Arts Council’s Annual Review 2000/01 – to be visited in 2001/02 has demonstrated the extent to which the < £100,000 5 6 strategic objectives of the programme have £100,000–£1m 15 5 been met. However the participating £1m–£5m 50 4 distributors were quick to recognise the £5m and above 100 1 messages for potential improvements and devoted much effort in the latter part of the The breakdown of awards that received final year to plans for the development of a formal payment during 2001/02, together with a joint scheme. Until now all applications to breakdown of active projects at year-end, is Awards for All, although using a common set out below. applications form and standard criteria, were in reality assigned to an individual Completed awards (final payments made in 2001/02) Number distributor and the grant was offered by that < £100,000 grant 157 distributor. With the introduction of the new £100,000–£1m grant 64 arrangements there will be a single budget, £1m–£5m grant 19 and successful applications will be jointly £5m and above grant 3 funded by all the participating distributors. Total 243
Capital Programme Active projects The Capital Programme was the first lottery (as at 31 March 2002) Number programme launched by the Arts Council. < £100,000 grant 180 As at 31 March 2002, a total of 2,278 awards £100,000–£1m grant 125 totalling £1,182 million towards projects with £1m–£5m grant 75 an estimated total cost of £2,923 million had £5m and above grant 27 been made through the programme. Total 407
The monitoring of capital projects has Most of these visits are randomly selected but continued, in order to ensure that projects in some cases, for example, where an annual are completed on time, within budget and to report form has raised a concern, a project the highest possible quality. The Arts Council may be specifically selected for a visit. However, continues to monitor capital projects in two if any concern is of major significance or of an ways; monitoring of capital projects in immediate and high risk, other mechanisms progress and in post-completion – for a will be used – a routine evaluation visit is not specified period following the last payment. an appropriate tool in such circumstances. Projects in post-completion are expected to complete an annual report form, which is part Millennium Festival Fund of the Arts Council’s risk analysis in relation to Launched in 1998, the Millennium Festival these completed projects. In addition, a Fund large-scale awards were a key element programme of post-completion evaluation of the Arts Council’s contribution to celebrating visits is undertaken, depending on the size the Millennium. Operated in conjunction with of the project in question. The percentage of other lottery distributors, the funds provided projects visited varies with the size of the awards in the region of £30,000 to 306 grant, as shown: successful applicants.
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The design of the monitoring framework was National Foundation for Youth Music informed by the results of the evaluation of (Youth Music) the Arts for Everyone scheme. More extensive Youth Music has been running for three years, use of pro forma reports was introduced for during which time it has forged a distinctive simplicity and to increase the consistency of role for itself in relation to music-making for returns. Awards were released in three young people. stages: 50% at the start of the project, a further 40% on receipt of an interim financial and The projects funded by Youth Music have project status report; and the release of the involved over 400,000 direct participants with remaining 10% was conditional on receipt of projects concentrated in recognised areas of a final report and accounts, as well as some social and economic deprivation. promotional/publicity material or evidence of community involvement in the project. The range of programmes and activities funded by Youth Music includes: The Millennium Festival Fund was designed to fund projects that were centred on or around •Youth Music Action Zones – creating the Millennium and the majority of projects opportunities for hard-to-reach children have now completed. It was previously and young people envisaged that the scheme would be closed •First Steps – designed to introduce children by year-end. However, throughout the year under the age of five to music, and involving delays to project completion continued to 27,000 young children occur due to various factors that affected •Plug into Music – directed towards older rural projects across the funding streams, children and teenagers, this has introduced as previously reported, such as the winter over 10,000 youngsters into areas of music flooding in autumn 2000 and the foot and technology mouth epidemic of 2000/01. •Music Maker – introducing children and young people to a wide range of music In the year, 90% of all scheduled monitoring making reports were received and 263 final reports •Singing Challenge – encourages thousands were received from recipient organisations by of 5–18 year olds to take up singing. The past 31 March 2002. On scrutiny of these reports, year saw Youth Music commission a special five projects had reductions made to their song for inclusion in singing activities as part awards. In addition, five awards were of the Golden Jubilee celebrations. withdrawn in the year due to projects not being able to take place. Evaluation is overseen by an evaluation group reporting to the Board of Trustees. All individual At year-end there were 31 projects still active. programmes are evaluated by external The remaining projects are all scheduled to evaluators against Youth Music’s four objectives complete in the coming year and it is planned of access, breadth, coverage and quality, and to close the Millennium Festival Fund scheme the criteria for the programme. by the end of 2002/03. Overall the evaluations show that the programmes have met the objectives and the criteria. The findings have been used to refine
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future programmes and have helped Youth tour. These final reports will be the prime Music to develop policies to fill gaps or tackle source of data for compiling statistics and shortcomings. These include the need for evaluating the work achieved with support training in musical leadership, which is now from this programme. Since the end of being tackled by a new programme of the year, plans have been developed for continuing professional development. Other commissioning an overview study and findings were noted and in some instances evaluation report on the programme to changes have been made or guidance given. date, the results of which will inform any These include: future developments of the programme.
•allowing some funds towards the costs of Recovery Programme musical instruments By the end of 2001/02, 37 organisations had •including other art forms such as dance been admitted to the Recovery Programme. •extending the age limit There is no fixed cycle of admission. •highlighting a lack of project management Organisations can apply at any time and skills in areas such as planning, recruitment, therefore they are at different points within monitoring and evaluation the programme. Of the 37 admitted, 12 are •noting large differences in rates of pay still in the process of developing a recovery for musicians plan and 25 are implementing agreed plans. •highlighting that the planning of the training elements were weak The programme monitors the implementation •clarifying what data needs to be collected. of recovery plans by means of quarterly review meetings. The objectives of the monitoring Evaluations have been completed on Singing programme are to: ensure that the recovery Challenge, Music Maker, Youth Music Action plan is fully implemented within the defined Zones with Dynamo and First Steps to be timescales; monitor progress against the completed in Spring 2003. plan’s milestone plan and release the agreed funds on their achievement; and provide the National Touring Programme organisations with the agreed technical As with other programmes, the monitoring in assistance in support of implementation. relation to the National Touring Programme occurs for individual projects as well as in All organisations on the Recovery Programme relation to the programme as a whole. which are implementing their agreed recovery Periodic reviews are undertaken to ensure plans are visited at least four times a year for that it is fulfilling the strategic objectives of formal quarterly review meetings. Where the the programme. Arts Council has identified concerns about the implementation of the recovery plan additional Monitoring is based on tracking the projects visits take place to monitor progress and to as they develop and take place – through consider remedial action. Six organisations the submission of progress reports and have had additional visits during 2001/02. assessment visits as appropriate. In addition, the final payment of all grants is subject to One organisation, Mercury Theatre the submission of a comprehensive end-of- Colchester, has successfully completed the project report together with accounts for the implementation of its recovery plan, and has
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left the programme. It is anticipated that up compliance monitoring during the building to a further four organisations will leave the stage, there will be a long-term study on the programme during 2002/03. impact of the scheme and the benefits which accrue. This is seen as critical in informing Regional Arts Lottery Programme (RALP) future policy on such mixed use facilities. The programme has run for a third year, offering arts project grants for access, Stabilisation education, production and distribution, and Pilot Stabilisation Programme investment in artists, as well as small scale Thirteen organisations’ strategies for change capital grants (up to £100,000) and grants arising from the 1996 Pilot Stabilisation for organisational development. Programme continued to be monitored in the course of the year. For most of these All grant recipients must complete a final organisations the year under review represented project report, and these will provide the prime the final year of implementation. All Pilot source of overall data on the achievements Stabilisation Programme organisations are of the programme. In addition, between 5% likely to complete their strategies for change and 10% of all projects are selected for in- and leave the programme during 2002/03. depth evaluation. The choice of projects will partly result from a random selection but will The programme uses the same mechanism also involve projects specifically selected, for for monitoring as the other stabilisation example, because they offer an innovative programmes – quarterly review meetings. approach. The focus of this evaluation is to The objectives are to: ensure that the strategy judge the extent to which RALP’s specific for change for any participating organisation criteria have been met. This is primarily based is fully implemented within the defined on a self-evaluation approach but random timescales; monitor progress against the checks are made by way of visits or access strategy’s milestone plan and release the to the basic records of an organisation. agreed funds on their achievement.
A specific evaluation of the programme has During 1999/2000 the Arts Council recently been commissioned and will be reported commissioned an independent appraisal on next year. This will involve consideration of of the Pilot Stabilisation Programme from the achievements of the programme as a Annabel Jackson Associates. The first part of whole across the country, as well as in relation the project concentrated on refining a series of to individual regional priorities and the impact performance measures, which could be used on participants and communities. in the long-term evaluation of programmes of this kind. The second part focused on Space for Sport and Arts evaluation of the delivery. A further evaluation The Space for Sport and Arts programme of the Pilot Stabilisation Programme was announced in last year’s report moved to carried out during 2001/02, which highlighted the crucial stage of awarding grants; 301 a number of areas where improvements to the projects received awards totalling just over stabilisation process could usefully be adopted. £121 million. These projects include facilities The results of this evaluation are being used which will be only for sports or arts use, with the in both the Recovery and Main Stabilisation majority designed for both. Alongside normal Programmes.
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Main Stabilisation Programme stations, 6 newspapers, 5 town centres, Building on the lessons of the pilot 5 factories, 5 based on the internet, 4 hair programme, the Arts Council launched a new salons, 4 pubs, 4 swimming pools and 4 old programme in 1999. By the end of 2001/02, people’s homes. A total of 26,579 pieces of a total of 20 organisations had been admitted new work were produced and 81% of artists to the programme. Seven were developing had the opportunity to work in a new setting, appropriate strategies for change and 13 had 71% entered into a new collaboration with received awards and were implementing other artists and 69% had the opportunity to their strategies. use new or different facilities.
The programme uses the same mechanism Financial Directions to the Arts Council for monitoring as the other stabilisation of England programmes – quarterly review meetings. Under the National Lottery etc. Act 1993, the The objectives are to: ensure that the strategy Secretary of State issued Financial Directions for change for any participating organisation is to the Arts Council. The Directions are set out fully implemented within the defined timescales; below. The Arts Council confirms that, to the monitor progress against the strategy’s best of its knowledge, it complied fully with the milestone plan and release the agreed funds on Financial Directions in 2001/02. A copy of the their achievement. It has not been considered Statement of Financial Requirements is appropriate to carry out an evaluation of the available from the Arts Council. Main Stabilisation Programme to date because all organisations which have received an award (I) The Arts Council of England (‘the Body’) are at an early stage of implementing their shall comply with the requirements strategies for change. An evaluation of the contained within the Statement of Financial programme will be carried out when a significant Requirements attached as an Annex to number of the applicants have implemented these directions when carrying out its a substantial part of their strategies. functions under Section 25 of the National Lottery etc. Act 1993(‘the Act’) as amended Year of the Artist by the National Lottery Act 1998 (‘the 1998 The Year of the Artist was completed in 2000/01 Act’). Wherever specified in that Annex, the but, as mentioned in last year’s report, an Arts Council of England must obtain the evaluation of the year was commissioned. This consent of the Secretary of State before was completed in the year under review. The carrying out certain activities. original objective of the year, for 1,000 artists in 1,000 places, was exceeded and evidence The Arts Council confirms that, to the best of its shows that 2,397 artists worked in 1,500 places. knowledge, it complied fully with the Financial Over 15,500 public presentations or exhibition Requirements in 2001/02. The Arts Council days took place, more than 7,500 participatory undertook a further update of its previous sessions and 1,400 educational sessions. review to ensure that it was complying with Residencies took place in (among others): the requirements. 40 schools, 1 7 museums, 14 hospitals or hospices, 1 1 sea fronts, 10 churches, 10 libraries, (II) The Arts Council of England shall devise 9 castles, 9 prisons, 7 cafes, 7 forests, and abide by a procedure for handling 6 shopping centres, 6 motorways or service potential conflicts of interest which may
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arise in the evaluation of applications by terms of the numbers of applications received. the Body or individual members of the For example, the year under review saw a Body. This procedure, together with a drop in the total number of applications, largely statement confirming the arrangement as a result in the drop in numbers of applications that have been applied, should be to Awards for All. While the number of provided to the Secretary of State for applications vary throughout the year, the Culture, Media and Sport (‘the Secretary costs of administration and processing are of State’) before the distribution of any funds not subject to the same fluctuations. under Section 25 of the Act, and thereafter at the beginning of each financial year. The Arts Council attaches importance to such measures but also recognises that year on The Arts Council has in place written year comparisons have particular limitations procedures for dealing with conflicts of interest. and must be viewed with caution. The Arts The lottery distribution accounts include a note Council’s lottery programmes are responsive on related party transactions for 2001/02. to needs and changes in patterns of activity, and therefore its portfolio of activity has Performance against targets for changed considerably in recent years. administrative efficiency In accordance with the Financial Directions For the future, the Arts Council will be issued by the Secretary of State, the Arts introducing further performance measures Council operates a system of performance which reflect the outcomes that have been measures and targets for analysing its own achieved using lottery funds. As part of the administrative efficiency. For the year now development of our new corporate plan we under review there were only two such will be seeking to identify indicators which measures in operation, relating to the average cover both lottery and grant-in-aid activities. processing time for applications and the cost of processing applications. Performance against strategic objectives The lottery strategic plan highlighted the Arts As noted in previous years, a number of recent Council of England’s commitment to use its programmes have been developed to provide funding to make a difference in increasing the a relatively light-touch approach, with a simplified quality of the arts, as well as the opportunities application procedure with a reduced processing for access to and participation in artistic activity time. These programmes, with comparatively throughout England. It explained that the best high levels of applications, can be volatile in way to do this is to concentrate on a limited
Performance Measure 1999/2000 2000/01 2001/02 2001/02 actual actual target actual Average cost of processing each application £9,168 £3,120 £4,300 £4,754 Average time to process each application (work days) 76 63 70 71 For reference: Total number of applications processed 4,793 8,667 6,500 5,81 1
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number of deliverable priorities for the next •in the North West there is a priority for three to five years. proposals to develop disabled artists and disability arts and to increase access to the The plan outlined how in shaping its lottery arts for disabled people. Also for creation programmes for the future, the Arts Council and presentation of high quality work, had considered the needs identified. In particularly in under-served geographic particular it identified five strategic objectives: areas or of under-represented artforms •in the South East there is a commitment to •the need to expand access through prioritise proposals concerned with touring improved touring and distribution and networking, particularly in rural areas. •the need for more training and better information provision The results of the Year of the Artist evaluation •greater flexibility on partnership funding reveal that the national audience figure •the need to find ways of reaching particular reported by artists was just over 14 million. communities who have not been benefiting Over 80% of this relates to two projects. The from lottery funds first, with an estimated audience of almost •ensuring greater geographical equity. seven million, involved placing art work in and on public transport and the second, with an This section of the report considers how the Arts audience of four million, involved artwork Council has met each of these priorities through broadcast on screens in a shopping centre. its lottery activities during the year under review. As part of the corporate planning exercise, to be The need for more training and better undertaken in 2002/03, the Council intends to information provision set specific and measurable targets for the future. Every attempt has been made to ensure that all new programmes are clearly explained The need to expand access through improved and that the processes are transparent to touring and distribution applicants or potential applicants. Likewise, This was the fundamental objective of the the opportunity to seek advice before making National Touring Programme. There continues any application has been considerably to be an increase in the touring work supported expanded. The availability of lottery funds is through this programme. The criteria for the now fully incorporated on the Arts Council’s programme include scrutiny of the nature of website and application forms and guidance the relationship between the work and the notes can be downloaded. audience and with the venue – both factors which are critical in expanding access. Several programmes now recognise the need for training provision within the sector and RALP is also concerned with access and allow training costs to be included within the distribution, and the evaluation currently eligible costs of an application. Particular underway is intended to provide evidence examples include: of the impact of this programme in relation to each of its objectives. A number of the •within RALP, the organisational development specific regional priorities are concerned strand specifically highlights training costs with access including, for example: as being eligible for funding under the programme
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•the Recovery and Stabilisation Programmes The Arts Council has taken an increasingly both recognise the importance of flexible approach to the provision of appropriate training. Admitted organisations partnership funding in kind, which might be are encouraged to identify particular training the provision of goods but could also be time needs within their recovery plans or strategies or expertise. for change •the Arts Capital Programme offers specific Both the Stabilisation and Recovery training provision and capacity building for programmes are concerned with the long- admitted organisations term sustainability of organisations. In the •also under the Arts Capital Programme, case of these programmes there is no the Arts Council has put in place a series requirement for partnership funding during of workshops to update entrants on the the immediate programme support. Both programme, and to provide support and programmes expect stakeholders to advice in relation to capital projects including commit to revenue support for the recipient improving disabled access, cultural diversity, organisations for a continuing period in order project planning and procurement, scheme for the organisation’s strategies for change design and public art. to be fulfilled.
Greater flexibility on partnership funding The need to find ways of reaching particular The Arts Council continues to recognise the communities who have not been benefiting importance of partnership funding. It is not from lottery funds only a means of maximising the benefit In the context of this objective, particular achieved with the use of lottery funds but also communities can apply to both geographic an important indicator of the value attached definitions or communities of interest. Means to a project by other bodies. Nevertheless, of reaching the former are discussed in the the Council has also recognised that there following objective. This section focuses on are times when it is important to be able to a narrower meaning of communities. be flexible in the requirements for partnership funding if other strategic objectives are to RALP and Awards for All each include a facility be fulfilled. for the formulation of regionally focussed priorities. This has enabled specific priorities In the case of RALP, the guidelines make clear to be set, such as: that the ability of applicants to raise partnership funding will be considered, and might be •under Awards for All, several regions waived in cases where regional or other specifically encouraged applications for priorities are being met. This is particularly projects to Black and minority ethnic likely to come into account where funds are communities. Likewise, several regions being targeted at communities which have identified the wish to encourage applications previously not benefited from lottery funds. to benefit isolated rural areas where access to facilities and services is limited Partnership funding continues to be an •under RALP, one of Northern Arts’ priorities important part of Arts Council funded capital was for arts projects which tackle social projects. However within this context further exclusion in areas of high deprivation, flexibility has been introduced about how isolated rural communities affected by partnership funding is defined. the foot and mouth crisis, and the former
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coalfields of Durham and South East Progress report on major lottery awards Northumberland. over £5 million This section reports on projects which have In the Arts Capital Programme, £31 million received awards totalling over £5 million, has been allocated towards Black, Asian and even if involving a number of separate Chinese arts organisations. These communities awards. It includes any projects which were were known to be disadvantaged under the active at 1 April 2001 but fully paid during the previous capital programme and a specific year under review and those with outstanding sum of money was set aside for them. balances at 31 March 2002. The totals reflect Following this allocation of funds, all entrants any changes made to awards since the into the Arts Capital Programme have received original decisions. support in the form of organisational needs analysis, technical assistance funds and The projects are divided into three sections: capacity building funds. In addition, culturally diverse organisations will receive short-term A projects still to be completed revenue funding to support their capital B projects opened/completed during development work. 2001/02 C projects opened/completed in previous Ensuring greater geographical equity years but with final payments still There is a very close link between this objective outstanding at 1 April 2001 and the previous one. However, specific issues of geographical equity are reflected in the The awards are all for capital projects except Arts Council’s distribution of funds for several for four awards made under the Recovery or programmes. Both RALP and Awards for All Stabilisation Programmes – one of each of operate on a regional allocation of funds which the awards to English National Opera and is based on a combination of factors including Birmingham Repertory Theatre and the population, area and levels of deprivation. The awards to the Royal Liverpool Philharmonic Arts Council also made a specific commitment and the Bournemouth Symphony Orchestra. to rectify the historic imbalance between the metropolitan and non-metropolitan regions of A Projects still to be completed the country and this factor was also reflected Arnolfini in the allocation of funding between regions. Award: £7,81 7,371 Other programmes, whilst not bound by such Purchase of the freehold of Bush House (listed a strict formula, always give due consideration Grade II*) and refurbishment of an otherwise to the past and present geographical spread inaccessible and cramped space. The project of lottery funding and will give a higher priority will provide the Arnolfini Gallery with a fully to areas which have had least benefit from accessible building with new spaces, including arts lottery funding thus far. education facilities and new galleries.
£5,291,224 paid being 67.7% of the total award.
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Baltic, The Centre for Contemporary Art Hackney Empire (Gateshead Metropolitan Borough Council) Award: £6,601,337 Award: £41,385,000 The restoration and upgrade of a Grade II* Conversion of the Baltic Flour Mills into a listed Matcham theatre and its facilities, and contemporary visual arts centre. The main the demolition and rebuild of an adjacent construction work started in September 1999 building into the complex. Estimated and the Baltic opened to the general public completion date late 2002. in July 2002. Significant partnership funding from the Single Regeneration Budget and £3,598,395 paid being 54.5% of the total award. Gateshead Metropolitan Borough Council. Hampstead Theatre £30,977,154 paid being 74.8% of the total award. Award: £10,942,478 Development of the new theatre with a flexible Bournemouth Symphony Orchestra 300-seat auditorium, education and workshop Award: £6,937,000 space, and cafe. A key element of the development Stabilisation award to eliminate accumulated of the Swiss Cottage site in north London. deficit and to fund the costs of restructuring the Estimated completion date late 2002. company to reduce operating costs to levels which can be covered by earned income and £5,447,062 paid being 49.8% of the total award. revenue grants. The Junction CDC £5,834,516 paid being 84.1% of the total award. Award: £5,229,608 Amalgamation of Junction music venue with c/PLEX Cambridge Drama Centre to create a single Award: £22,391,635 multi-artform facility including a new 200 seat Development of a major landmark building to flexible arts auditorium, second auditorium, house innovative, community-focused arts entrance foyer, rehearsal and digital studios, practice with an emphasis on digital technologies. box office and administration offices. Based on the 25-year track record of Jubilee Arts, c/PLEX is also seen as the central element of £489,300 paid being 9.4% of the total award. the regeneration strategy for West Bromwich. Laban Centre for Movement and Dance £5,988,634 paid being 26.7% of the total award. Award: £12,701,538 Development of a landmark building as part of English National Opera the Creekside area in Deptford, south London. Award: £16,367,01 1 It will include dedicated community facilities, Capital award to refurbish and develop the a 300-seat theatre, studios and movement London Coliseum to improve facilities in front therapy areas, a cafe and information resource and back-of-house and to satisfy licensing centre. Estimated completion date late 2002. requirements. Estimated completion date September 2004. £8,703,621 paid being 68.5% of the total award.
£6,380,719 paid being 39% of the total award.
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Liverpool Empire Theatre Poole Arts Centre (Empire Theatre (Merseyside) Trust Ltd) Award: £6,500,000 Award: £7,630,000 A major refurbishment and redevelopment Major refurbishment of auditorium, front- scheme including the concert hall and a new, of-house and backstage areas, with flexible performance space. The existing development of adjoining building to improve cinema and gallery are also being upgraded. access. The theatre is now re-open after the The scheme has significant practical and completion of Phases I and II at the end of financial support from the Borough of Poole. May 2002. Significant partnership funding Estimated completion date is late 2002. from Apollo Leisure, European Regional Development Fund and the Foundation for £3,143,1 72 paid being 48.4% of the total award. Sport and the Arts. Royal Albert Hall £7,016,233 paid being 92% of the total award. Award: £20,200,000 Improvements for audience and performers Music Centre Gateshead including access provision. This is a joint (Gateshead Metropolitan Borough Council) award with the Heritage Lottery Fund Award: £47,308,500 (£20,180,000). It is dependent on significant A new landmark building on the bank of self-generated income being put towards the the River Tyne which will provide concert capital project by the Royal Albert Hall. The and rehearsal facilities; library and archive estimated completion date is December 2003. services; recording, publishing and communication facilities; catering, retail £19,283,613 paid being 95.5% of the total award. and conference areas. It will be the new base for Northern Sinfonia and Folkworks. The Royal Liverpool Philharmonic Society estimated completion date is 2003/04. Award: £6,572,000 Significant sources of partnership funding Stabilisation award to eliminate accumulated include Gateshead Metropolitan Borough deficit, to reach agreement with Liverpool City Council and the Single Regeneration Budget. Council on the future funding of Philharmonia Hall, to recruit a new chief executive and other £10,927,004 paid being 23.1% of the total award. senior management posts, and to cover transitional operational costs. Palace Theatre Watford Award: £5,022,568 £6,364,548 paid being 96.8% of the total award. A major refurbishment of the Palace Theatre Watford including modifications to the foyers, Royal National Theatre auditorium, stage and back-stage areas to Award: £31,590,000 provide better access, including a lift to all Refurbishment and redevelopment of the floors and a deeper stage house, together backstage and public areas, investment in with a new flying and lighting system and new equipment and information technology, new seating. and refurbishment of the car park. Front-of- house work was completed at the end of £642,485 paid being 12.8% of the total award. 1997. The estimated completion date for the whole project is now 2005.
£25,409,536 paid being 80.4% of the total award.
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B Projects opened/completed during 2001/02 deficit and invest in planning systems for After a project has been completed and productions, increasing audiences, new opened, the Council retains a percentage technology and essential capital work to of the award for payment until a full account stage and front-of-house. for the project has been received and/or final certificates have been issued. £9,1 10,207 paid being 99% of the total award.
Birmingham Hippodrome London Borough of Newham Cultural Quarter Award: £24,000,000 Award: £13,828,599 Refurbishment and expansion of the Birmingham Towards the final phase of the project including Hippodrome as a major lyric receiving house the new Stratford Circus Arts Centre and the and base for Birmingham Royal Ballet and refurbishment and expansion of the Theatre Royal DanceXchange. Significant partnership funding Stratford East. Stratford Circus opened in June from European Regional Development Fund and 2001 and the Theatre Royal in December Birmingham City Council. Opened November 2001. 2001. Significant partnership funding from the borough itself, English Partnerships and City £23,399,998 paid being 97.5% of the total award. Challenge.
Birmingham Repertory Theatre £12,395,648 paid being 89.6% of the total award. Award: £6,633,000 Stabilisation award to invest in epic productions The Place (Contemporary Dance Trust) creating a niche market to increase audiences Award: £5,393,910 and to promote studio theatre for new writing. Expansion and refurbishment of the building Also to support investment in marketing, fund- including new facilities for the school, raising and technology systems and to eliminate new studio spaces and improved access accumulated deficits. throughout enabling The Place to develop its work as a choreographic and performance £6,61 1,164 paid being 99.7% of the total award. centre. The project completed in October 2001. Significant partnership funding from Brighton Festival Society the Single Regeneration Budget. Award: £1 7,899,898 Refurbishment and restoration of the Dome £5,313,910 paid being 98.5% of the total award. Concert Hall and Corn Exchange performance venue, and the addition of new facilities such C Projects opened/completed in previous as a cafe and foyer area. Work on the Corn years but with final payments still Exchange has been completed and the first outstanding at 1 April 2001 performance took place in May 2000. The Dome After a project has been completed and Concert Hall opened in March 2002. Significant opened, the Council retains a percentage of partnership funding from the Single Regeneration the award for payment until a full account for Budget and Brighton & Hove Council. the project has been received and/or final certificates have been issued. £1 7,443,21 1 paid being 97.4% of total award. The Arc (previously Dovecot Arts Centre) English National Opera Award: £7,484,432 Award: £9,200,000 Creation of a new arts centre in Stockton-on-Tees. Stabilisation award to eliminate accumulated Opened in January 1999. Significant partnership
The Arts Council of England annual review and accounts 92 National Lottery Report National Lottery Report 2001/02 continued
funding from Stockton City Challenge, European MAX (British Film Institute) Regional Development Fund and English Award: £14,579,639 Partnerships. The Arc went into liquidation in Creation of a new 400-seat IMAX cinema as November 2001. The Arts Council is currently part of the regeneration of London’s South working with other stakeholders to develop a Bank. Opened in June 1999. recovery plan for the facilities. £14,579,639 paid being 100% of the total £7,428,630 paid being 99.2% of the total award. award. The final payment was made during the year under review. Birmingham Repertory Theatre Award: £6,609,027 Interchange Studios (Hamden Trust) Towards a range of significant health and Award: £5,399,000 safety works required to keep the theatre The purchase and conversion of Hampstead open. Improvement in access has been Town Hall into an arts centre. Relocating provided but this will also be the focus of a Interchange’s activities and those of its tenants to second phase of the project (non-lottery funded). improved facilities. The scheme is jointly funded The theatre re-opened in September 1999. by the Arts Council and Heritage Lottery Fund and includes an auditorium with bleacher seating, £6,487,402 paid being 98.2% of the total award. two dance studios, an atrium exhibition space, music room, offices, meeting rooms, a cafe and The Globe Theatre (The Shakespeare Globe Trust) restaurant space. The centre opened July 2000. Award: £12,400,000 Reconstruction of theatre as part of Shakespeare £5,394,000 paid being 99.9% of the total award. Globe Centre which also includes exhibition, education and research facilities. Significant Lowry Centre (Salford City Council) partnership funding from private donations and Award: £50,100,000 English Partnerships. The main theatre opened To develop a major performing and visual in 1998 and the exhibition centre in February 2000. arts centre as part of the regeneration scheme for Salford Quays. A joint award with the £12,400,000 paid being 100% of the total Millennium Commission (£15.65m) and the award. The final payment was made during Heritage Lottery Fund (£7.65m). Significant the year under review. partnership funding from European Regional Development Fund, Salford City Council and The Grand Theatre, Wolverhampton English Partnerships. The centre was opened Award: £6,085,000 in May 2000. Refurbishment of Grade II* listed theatre to improve facilities for audiences, performers £47,500,000 paid being 94.8% of the total award. and for productions. Completed in December 1998. Significant partnership funding from Milton Keynes Theatre and Art Gallery European Regional Development Fund and (Milton Keynes Council) Wolverhampton Metropolitan Borough Council. Award: £20,1 71,485 A new centre comprising a 1,330 seat auditorium £6,026,596 paid being 99% of the total award. and a mixed media gallery within a broader city
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centre development which provides car parking arts workshops, multi-media facilities and bar. and box office facilities. The centre opened in Significant partnership funding from the Royal July 1999. Significant partnership funding from Borough of Windsor and Maidenhead. English Partnerships/Commission for New Towns. Opened in Autumn 2000.
£20,090,331 paid being 99.6% of the total award. £6,909,561 paid being 98% of the total award.
National Centre for Popular Music The Ocean (Ocean Music Trust Limited) (Music Heritage Ltd) Award: £13,593,567 Award: £1 1,354,498 Conversion of two landmark buildings in Hackney The National Centre for Popular Music opened to house three performance spaces, a music in March 1999. Due to operational difficulties, training and resource centre, rehearsal rooms it is now undergoing a period of and cafe/bar. Significant partnership funding redevelopment as a multi-faceted music and from the Single Regeneration Budget, the London popular media facility with a number of public Borough of Hackney and European Regional and private sector stakeholders. Development Fund. Opened in March 2001.
£1 1,350,689 paid being 99.9% of the total award. £13,540,432 paid being 99.6% of the total award.
National Glass Centre, Sunderland Royal Academy of Dramatic Art (RADA) Award: £6,947,000 Award: £23,746,851 Reflecting Sunderland’s history in expert Renovation and refurbishment of existing glass making, this new build incorporated facilities and purchase of adjoining premises innovative use of glass. Exhibition spaces, to provide a modern, well-equipped teaching workshops, training facilities, equipment and and learning facility. The award also included specialist retail outlets have been provided. provision for the temporary relocation of RADA Significant support from European Regional during the construction period. Development Fund, English Partnerships and One NorthEast. Opened in October 1998. £23,746,851 paid being 100% of the total award. The final payment was made during £6,901,000 paid being 99.3% of the total award. the year under review.
National Film & TV School Royal Court Theatre (English Stage Company) Award: £5,654,880 Award: £21,159,031 Towards essential works and re-equipping the Redevelopment and upgrading of the Grade II school at Beaconsfield, and for feasibility work listed 395-seat theatre and 60-seat Theatre on relocating the school to London. The work Upstairs, with additional foyer, bar/restaurant on the school is complete. facilities. The award covered relocation costs incurred during construction phase. The £5,650,502 paid being 99.9% of the total award. theatre re-opened in January 2000. Significant partnership funding from Jerwood Foundation Norden Farm (Norden Farm Centre Trust Ltd) and Cadogan Estates Partnerships. Award: £7,047,905 Development of a new arts centre with £20,526,755 paid being 97.1% of the total award. performance and cinema space, gallery, visual
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The Royal Exchange Theatre, Manchester Tate Modern (Tate Gallery Projects Limited) Award: £24,984,168 Award: £6,200,000 Restoration, refurbishment and expansion of Towards the Level 4 galleries and a proportion facilities following bomb damage. Re-opened of the infrastructure costs of the conversion in December 1998. Significant partnership of Bankside power station into a major new funding from European Regional Development contemporary gallery. £50m was contributed Fund, the insurance claim and private sources. by the Millennium Commission to a total estimated cost of £130m. The gallery was £24,973,098 paid being 99.9% of the total award. opened with massive international success in May 2000. Royal Opera House Award: £78,500,000 £6,155,599 paid being 99.3% of the total award. Redevelopment, restoration and refurbishment of Grade I listed building to provide improved Victoria Hall and Regent Theatre facilities for audience and performers including (Stoke on Trent City Council) a base for the Royal Ballet. The award included Award: £16,500,000 some funds for relocation costs during the Refurbishment of two Grade II listed buildings construction period. The development appeal within the Hanley Cultural Quarter. The Victoria and private funders provided two-thirds of the Hall re-opened for concerts in November 1998 estimated total costs of £234 million. The Royal and the Regent Cinema opened as a theatre for Opera House re-opened in December 1999. lyric and drama tours in September 1999. Significant partnership funding from European £78,290,884 paid being 99.7% of the total award. Regional Development Fund and Stoke on Trent City Council. Sadler’s Wells Theatre (New Sadler’s Wells Ltd) Award: £47,275,496 £15,835,000 paid being 96% of the total Redevelopment of the theatre to give first- award. class facilities for international dance and lyric theatre companies, together with improved New Art Gallery Walsall studio, rehearsal and educational facilities. Award: £15,750,000 Opened in Autumn 1998. Creation of a major new art gallery to both house the permanent Garman Ryan collection £45,810,895 paid being 96.9% of the total award. and temporary exhibitions, and to provide educational and artist facilities. It forms part of Soho Theatre Company a wider regeneration project around the Town Award: £7,934,713 Wharf. The gallery opened in February 2000. Towards the purchase of property and design Significant partnership funding from European development for a writers’ centre, and for the Regional Development Fund and Walsall conversion of the building to house a 200-seat Metropolitan Borough Council. theatre, three studio/rehearsal spaces, workrooms, script library, offices and a restaurant/ £15,666,503 paid being 99.5% of the total bar. The building opened in February 2000. award.
£7,896,257 paid being 99.5% of the total award.
The Arts Council of England annual review and accounts National Lottery Report 95 Advisory Panels Membership of the Arts Council advisory panels as at 30 June 2002
Arts & Disability Development Music Joe Bidder (Chair) Vivien Freakley (Chair) Gavin Henderson (Chair) Clarence Addoo Adrian Chappell Ian Croal Denis Casling Vic Ecclestone Paul Daniel Pino Frumentio Tony Fegan Jonathan Dove Christine Hammond Celia Greenwood Dominique LeGendre Maria Oshodi Philip Hedley David Richardson Zoe Partingon-Sollinger Chris McIntyre Ros Rigby Monica Rene Anouk Mishti Kit Wells Dipak Mistry Stabilisation Maggie Woolley Ann Pointon David Brierley CBE (Chair) Fahmida Shah Alex Beard Capital Gilane Tawadros Peter Finch William Sieghart (Chair) Deborah Grubb Ian Armitage Drama Richard Lazarus David Brierley CBE Grahame Morris (Chair) Janis Susskind David Bryan Michael Attenborough Mike Tooby Deirdre Figueiredo David Benedict Keith Harris Gwenda Hughes Touring Katherine Heron Ewan Marshall John Stalker (Chair) Ronald Spinney Martin McCallum Christopher Barron Rosemary Squire Nancy Meckler Stephen Cashman Jo Verrent Indhu Rubasingham Robert Cogo-Fawcett Mandy Stewart Felix Cross Cultural Diversity Kully Thiarai Tony Dudley-Evans Deirdre Figueiredo (Chair) Adrian Vinken Ruth Eastwood Garfield Allen Dorothy Wilson Mark Foley Peter Badejo Andrew Jowett Pauline Catlin-Reid Literature Paddy Masefield OBE Sarah Champion Andrew Motion (Chair) Tony Travers Choman Hardi Liz Attenborough Lynne Williams Philip Hedley Joe Bidder Sukhy Johal Alain de Botton Visual Arts Piali Ray Tom Forrest Katherine Heron (Chair) Susan Pui San Lok Tom Kuhn Karen Alexander Deborah Williams Tony Lacey Norman Binch Lee Langley Brian Catling Dance Hermione Lee Clive Gillman Christopher Bannerman (Chair) Dotti Irving Martin Kemp Pushkala Gopal Honor Wilson-Fletcher Tim Marlow Jane Hackett David Mellor Marie McCluskey MBE Eric Parry Margaret Morris Richard Shaw Alistair Spalding
96 The Arts Council of England annual review and accounts Arts Council of England regional offices
East England Arts North West Arts South West Arts Eden House Manchester House Bradninch Place 48–49 Bateman Street 22 Bridge Street Gandy Street welcome to the Cambridge Manchester M3 3AB Exeter CB2 1LR T 0161 834 6644 Devon T 01223 454400 F 0161 834 6969 EX4 3LS F 0870 242 1271 Textphone 0161 834 9131 T 01392 218188 Arts Council of England’s Textphone 01223 306893 F 01392 229229 Southern & South East Arts Textphone 01392 433503 East Midlands Arts (Tunbridge Wells office) Mountfields House Union House West Midlands Arts annual review 2002 Epinal Way Eridge Road 82 Granville Street Loughborough Tunbridge Wells Birmingham Leicestershire Kent B1 2LH LE11 0QE TN4 8HF T 0121 631 3121 The Arts Council is the national body for the T 01509 218292 T 01892 507200 F 0121 643 7239 arts in England. As an independent, non- F 01509 262214 F 0870 242 1259 Textphone 0121 643 2815 political body working at arm’s length from Textphone 01892 525831 Government, we distribute public money from London Arts Yorkshire Arts Government and the National Lottery to artists 2 Pear Tree Court (Winchester office) 21 Bond Street and arts organisations. London 13 St Clement Street Dewsbury EC1R 0DS Winchester West Yorkshire On 1 April 2002, the Arts Council and the 10 T 020 7608 6100 Hampshire WF13 1AX Regional Arts Boards joined together to form F 020 7608 4100 SO23 9DQ T 01924 455555 a single development organisation for the arts. Textphone 020 7608 4101 T 01962 855099 F 01924 466522 The new organisation is responsible for F 0870 242 1257 Textphone 01924 438585 developing and promoting the arts in England. Northern Arts We aim to be a national force for the arts, Central Square delivering a higher profile, more funding and Forth Street more support to artists and arts organisations. Newcastle upon Tyne NE1 3PJ The arts matter for so many reasons. In this T 0191 255 8500 annual review, we focus on some strands of F 0191 230 1020 our work that show how the arts matter in a Textphone 0191 255 8500 range of social and educational settings.
contents
01 Chairman’s introduction 02 Chief Executive’s introduction Charity registration number 1036733 • ISBN 0–7287–0894–9 • ©The Arts Council of England October 2002 03–07 A taste of our work 08–45 Grant-in-aid accounts Designed and produced by Merchant with navyblue. Printed by Perivan White Dove. 46–73 Lottery accounts The Arts Council of England is committed to being open and accessible. We welcome all comments on our work. 74 –95 National Lottery Report Please send these to Wendy Andrews, Executive Director of Communications. 96 Membership of the Arts Council advisory panels 97 Arts Council of England regional offices This publication is also available on our website: www.artscouncil.org.uk/review2002/ If you require any publication in another format, including translation, contact the Information Department: 020 7973 6453, [email protected] The arts matter Arts Council of England annual review 2002
The arts matter Arts Council of England Arts Council of England annual review 2002 14 Great Peter Street London SW1P 3NQ
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Cover image: a detail from ‘Astral Dance’, the safety curtain at Birmingham Hippodrome. Balraj Khanna was commissioned to create this, the largest piece of public art in a UK theatre. The Hippodrome re-opened in November 2001 following a £30 million redevelopment, £24 million of which came from Arts Council lottery funds. Photographer: Harry Rhodes