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Reports and Financial Statements 2013-14 Layout 1 2013/14 Reports and Financial Statements for the year ended 31 March 2014 Charity number 1034245 General Activites Account Contents Annual Report: • Trustees’ Annual Report 03 o Annual Governance Statement 06 • Environmental report 43 • Remuneration report 47 • Statement of Council’s and the Accounting Officer’s responsibilities 49 The Certificate and Report of the Auditor General for Wales to the Arts Council of Wales 50 Financial statements: • Statement of financial activities 52 • Balance sheet 53 • Cash flow statement 54 • Notes forming part of the financial statements 55 Annex to the Annual Report (not forming part of the financial statements): • Grants 80 Arts Council of Wales is committed to making information available in large print, Braille, audio and British Sign Language and will endeavour to provide information in languages other than Welsh or English on request. Arts Council of Wales operates an equal opportunities policy. Front Cover: Theresa Nguyen, Gold Medal for Craft and Design at Y Lle Celf, National Eisteddfod of Wales 2013 (image: Dewi Glyn Jones) BIANCO, NoFit State (image: Richard Davenport) Annual Report for the year ended 31 March 2014 Trustees’ Annual Report Reference and administrative details Trustees Council Members who served since 1 April 2013 were: Attendance at meetings during 2013/14 Audit Capital Remuneration Council Committee Committee Committee1 Number of meetings held: 6550 Professor Dai Smith, (c) 6 Committee Chair Chairman n/a Dr Kate Woodward, (d) 3 Vice-chairman Emma Evans (a) 5 Committee Chair (to 31 March 2014) (to March 2014) 5 Dr John Geraint (a)(c) 4.5 Committee Chair n/a (from April 2014) 1/1 Michael Griffiths OBE (a) 4.5 3.5 Melanie Hawthorne 5 Dr Lesley Hodgson (a) 3.5 0/1 Margaret Jervis MBE DL (c)(v) 4.5 n/a Marian Wyn Jones (i)(iii) 4 Andrew Miller 6 Osi Rhys Osmond (d) 5 Richard Turner (ii)(iv) 5 Alan Watkin (a)(b) 6 (to December 2013) 5 3/4 Professor Gerwyn Wiliams (b) 3 Committee Chair 5 John C Williams (a)(b) 6 (to December 2013) 2 4/4 3 Attendance at meetings during 2013/14 Audit Capital Remuneration Council Committee Committee Committee1 Number of meetings held: 6550 Attendance of independent Committee members: Gareth Jones (a) 5 Phillip Westwood (a) 4 Jonathan Adams (b) 2/3 (to October 2013) Mark Davies (b) 4 Roland Wyn Evans (b) 4 Alan Hewson 1/1 (appointed March 2014) (b) Janet Roberts (b) 1/3 (to October 2013) 1 In the absence of guidance from the Welsh Government in respect of the Chair’s remuneration and Chief Executive’s salary, the Remuneration Committee did not meet during 2013/14. (a) Member of Audit Committee (b) Member of Capital Committee (c) Member of Remuneration Committee (d) Member of Wales at the Venice Biennale of Art Committee For at least part of the period covered by this report Council members (identified by the number in brackets after their name in the above list) also served as Members or senior employees of the following public bodies: (i) Betsi Cadwaladr Health Board (ii) Monmouthshire County Council (iii) S4C (iv) University of Wales (v) Wales Council for Voluntary Action 4 Chief Executive Nicholas Capaldi Offices Mid and West Wales region: North Wales region: South Wales region and national office: The Mount Princes Park II 18 Queen Street Princes Drive Bute Place Carmarthen Colwyn Bay Cardiff SA31 1JT LL29 8PL CF10 5AL Auditor Internal auditors Solicitors Auditor General for Wales Deloitte LLP Geldards LLP Wales Audit Office 5 Callaghan Square Dumfries House 24 Cathedral Road Cardiff Dumfries Place Cardiff CF10 5BT Cardiff CF11 9LJ CF10 3ZF Bankers The Co-operative Bank 16-17 High Street Cardiff CF10 1AX 5 Annual Governance Statement This governance statement is the personal We have to operate within a framework that responsibility of me, Nicholas Capaldi, the Arts sets out the terms and conditions under which Council of Wales’ Accounting Officer and Chief Welsh Ministers provide our grant-in-aid Executive. It sets out the governance funding, and how we are able to use this arrangements of the Arts Council of Wales. funding. It also describes how I have discharged my responsibilities for ensuring that we conduct our Along with other public bodies in Wales, we business, in respect of both exchequer and also have to operate within the guidance lottery activity, in accordance with the law. This contained in Managing Welsh Public Money. includes providing the necessary assurances The activities we carry out in connection with that we are adhering to proper standards and our Collectorplan scheme and Artists Loans establishing the necessary safeguards to protect scheme are subject to the Consumer Credit Act the use of public money. I explain how these and guidance issued by the Financial Conduct funds are properly accounted for, and used Authority. economically, efficiently and effectively to support the delivery of our plans and priorities. We are a distributor of Lottery funds which, under the National Lottery etc. Act 1993 (as About the Arts Council of Wales: amended), means we are accountable to the UK’s Secretary of State for Culture, Media and The Arts Council of Wales – Cyngor Sport. Our financial directions are issued by the Celfyddydau Cymru – was established by Secretary of State, and our policy directions by Royal Charter on 30 March 1994, and exists to the Welsh Ministers. These set out how we must support and develop the arts in Wales. It does operate in respect of Lottery distribution so for the benefit of people throughout Wales, activities. and to support Welsh art internationally. We have to account for lottery distribution We are also a Welsh Government Sponsored activities separately from the rest of our Body, a National Lottery Distributor, and a activities, and have appropriate arrangements registered charity (number 1034245). in place to ensure we produce two sets of published financial statements. Our Lottery Our Royal Charter sets out our objectives. Distribution accounts are audited on behalf of They are to: the Comptroller and Auditor General by the • develop and improve the knowledge, Wales Audit Office. The Wales Audit Office also understanding and practice of the arts; audits our General Activities account on behalf • increase the accessibility of the arts to the of the Auditor General for Wales. public; and, • work through the Welsh and English As a charity we have to ensure that we comply languages. with the requirements of the Charities Acts 1960, 2006 and 2011, and follow guidance We also work with other public bodies in Wales, issued by the Charity Commission. and with the other Arts Councils in the UK, to achieve these aims. You can find a copy of our We have designed our systems and processes to Royal Charter on our website. take account of these various responsibilities. Within these frameworks we make independent We operate within a carefully prescribed and decisions regarding the strategic direction of the regulated environment. Arts Council of organisation, grant funding, and other financial Wales is accountable to the Welsh decisions. Government’s Minister for Culture and Sport. 6 Should the need arise, the Public Services allocation of grants to revenue-funded Ombudsman for Wales, the Parliamentary organisations, and approve all grants of over Commissioner for Administration, the Charity £50,000, or in the case of Lottery funded Commission, the National Audit Office, and the capital projects over £250,000. Decisions on Wales Audit Office are all able to investigate grants below these thresholds have been the Council’s affairs. delegated to authorised staff, and to the Capital Committee respectively. Our Governance arrangements: To help support its work, Council has appointed We are governed by a Board of Trustees – three committees to provide specialist advice. Council – which currently consists of a Chair These are: Audit; Capital; and Remuneration & and thirteen members (fourteen up to 31 March Human Resources Committees. It also has an 2014), one of whom is appointed as Vice- ad hoc advisory committee, to advise on Wales Chair. Since March 2013 the Welsh in Venice, and internal monitoring groups who, Government’s Minister for Culture and Sport via the Senior Management Team, assist has been responsible for appointing our Council in meeting its responsibilities. Trustees, each of whom brings specific expertise and knowledge to the oversight and Each committee includes Council members, one development of our activities. of whom acts as chair, and co-opted individuals, and is required to operate under Appointments are usually for a three year term, specific terms of reference. Independent renewable a maximum of twice. The Chair of committee members are appointed for their Council is a remunerated position; rates are set specialist skills and experience, through an annually by the Welsh Government. All other open selection process. Minutes of each members provide their time and expertise on a committee meeting are provided to the next voluntary basis, but are reimbursed for out-of- available full meeting of Council and each pocket expenses incurred on Council business. committee is also required to submit an annual A summary is contained in note 9b of these report to Council, summarising its work. financial statements. All new members of Council and of each Council is responsible for the strategic direction Committee undergo an induction process and management of our organisation. It is appropriate to their role, and are encouraged responsible for ensuring, through me as the to continue their development during their Chief Executive, that we operate within the period of appointment. policy framework set by the Welsh Government, and that we satisfy the various other During the year, Council reviewed and updated accountabilities required of us. The Chair the terms of reference of each of the maintains regular contact with the Minister, and Committees, and in some cases changed the Chief Executive meets officials quarterly to membership.
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