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Annual Review 2005 Grant-In-Aid Accounts

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Annual Review 2005 Grant-In-Aid Accounts annual review 2005 grant-in-aid accounts This is part two of four of our annual review. You can download the other parts or text-only versions at www.artscouncil.org.uk Arts Council England grant-in-aid accounts 1 April 2004–31 March 2005 Trustees’ report and foreword Introduction Arts Council England receives grant-in-aid The Arts Council of England, trading as from the Department for Culture, Media Arts Council England, is a registered charity, and Sport (DCMS) and is one of the bodies charity registration number 1036733. designated to distribute funds from the Arts Council England was established by National Lottery by the National Lottery etc Royal Charter on 1 April 1994, taking over Act 1993 (as amended by the National those responsibilities in England previously Lottery Act 1998). discharged by the Arts Council of Great Britain. The objectives of the Arts Council The Arts Council works at arm’s length as stated in the Royal Charter, our governing from Government and has the status of document, are to develop and improve the a non-departmental public body. As such, knowledge, understanding and practice of we are regulated in accordance with a the arts and to increase accessibility of the Financial Memorandum issued by the arts to the public. To this end, we make Secretary of State. We prepare our accounts grants to artists and arts organisations and for grant-in-aid and lottery separately engage in other activities on behalf of the to comply with accounts directions also sector. issued by the Secretary of State. Arts Council England was granted a Our ambitions, as published in Ambitions Supplemental Charter on 31 May 2002. for the arts 2003–2006 in February 2003 Its purpose was ‘to give effect to new and followed up in Ambitions into action, arrangements for regionalisation of its May 2004, are: structure and activities’. There were no • supporting the artist changes to the objects of the Arts Council • enabling organisations to thrive, and the main changes relate to our powers not just survive to establish and to delegate powers and • championing cultural diversity functions to regional councils. The charter • offering opportunities for young people sets out the new composition of the Council, • encouraging growth which includes the chairs of the regional • living up to our values councils. The address of our principal office is 14 Great Peter Street, London SW1P 3NQ. Arts Council England annual review grant-in-aid accounts 2005 41 Foreword continued Internal structure Arts Council England has nine regional offices, matching the Government’s regional boundaries, and a national office. Each region has a council and the 15-strong national Council (details on page 43) includes the chair of each of the regional councils. The national Council met in formal session five times during the year and monitored the work of the chief executive and staff. In addition, a number of advisory panels, while carrying no executive authority, played an important role by providing advice from the arts constituency. The Executive Board is made up of the Chief Executive, Peter Hewitt, the nine regional executive directors and the four executive directors at the national office for arts, development, external relations, and finance and operations. 42 Arts Council England annual review grant-in-aid accounts 2005 Foreword continued Membership of Council Our Council members are the trustees of Arts Council England. The national Council consists of 15 members, nine of whom also take on the role of chair of one of the regional councils as detailed in brackets below: Member Date of appointment Date of resignation/retirement Sir Christopher Frayling (Chair) February 2004 Diran Adebayo October 2004 Sir Norman Adsetts OBE (Yorkshire) May 2002 January 2005 Janet Barnes (Yorkshire) February 2005 Tom Bloxham MBE (North West) May 2002 Deborah Bull CBE May 2002 June 2005 Paul Collard (North East) May 2002 September 2004 Deborah Grubb (South East) May 2002 July 2005 Professor Alan Livingston (South West) May 2002 Stephen Lowe (East Midlands) May 2002 July 2005 Sir Brian McMaster CBE May 2002 Elsie Owusu OBE May 2002 Dr Tom Shakespeare (North East) October 2004 William Sieghart May 2002 Professor Stuart Timperley (East) May 2002 Dorothy Wilson (West Midlands) May 2002 Lady Sue Woodford Hollick (London) May 2002 Dorothy Wilson is chair of the Audit Committee. Sir Norman Adsetts OBE, Paul Collard and Professor Alan Livingston served as members of the committee during the year, with David Brierley CBE and Gill Laver as co-opted members. Sir Brian McMaster CBE and Professor Stuart Timperley joined the Audit Committee in March 2005 following the resignations of Sir Norman Adsetts OBE and Paul Collard. Arts Council England annual review grant-in-aid accounts 2005 43 Foreword continued Chief executive, chair and programme, which has now established Council member appointments phase 2 and 3 partnerships. In addition, we Sir Christopher Frayling took up post as Chair started work on developing a single new IT on 1 February 2004. The Chief Executive, system for finance, grants and management Peter Hewitt, was appointed by the Council information to replace the different systems on 9 March 1998 with the approval of the currently used in each office. Secretary of State for Culture, Media and Sport. His contract expires on 31 January In 2004/05, we delivered a combined lottery 2008. From 4 January to 3 May 2005, and grant-in-aid administrative saving of Peter Hewitt took a strategic time out from £7 million. This compares to the target his role as Chief Executive to step outside of £6 million in our funding agreement his day job, and stand back and take stock. (2003/04 saving £6 million; target £5 million); During that time Kim Evans became acting see note 26 to the accounts. Chief Executive. Research activity Council members are appointed by the Arts Council England’s three-year research Secretary of State for Culture, Media and strategy for 2003–6 is designed to address Sport for up to four years and are eligible our strategic objectives, gather the data for re-appointment for a further term of needed to demonstrate public accountability, up to four years. evaluate the outcomes of our funding, develop a sound evidence base which can Review of the year be used to inform and evaluate policy and DCMS provided grant-in-aid of £369 million planning, and provide research findings to for the year. This included £29 million for the help make the case for the arts. Creative Partnerships programme. The grants that we awarded during the year totalled £316 Grant-making policy million. This total comprised grants to our We award and monitor grants in accordance regularly funded arts organisations, and awards with regulations set out in our Charter and made under the Grants to individuals open Financial Memorandum. Grant-making application programme for individual artists. decisions are based on our objectives as stated in the Charter and the current funding The statement of financial activities funded agreement between Arts Council England from grant-in-aid shows net outgoing resources and DCMS. for the year of £1 million on unrestricted funds. This deficit is due to the planned use Reserves of reserves brought forward from prior years. At 31 March 2005, Arts Council England had unrestricted reserves of £14 million. Our Key developments during the year include policy on reserves is to ensure that we hold the expansion of our Creative Partnerships sufficient funds to maintain liquidity, to cover 44 Arts Council England annual review grant-in-aid accounts 2005 Foreword continued Reserves continued arrangements to support this. The National unforeseen short-term cash requirements Joint Consultative and Negotiating Committee of £1 million to cover planned future (NJCNC) handles all core pay, terms and expenditure and to repay to DCMS grant-in- conditions of employment, and HR policies aid over-committed in previous years, which at and procedures across the whole organisation. 31 March 2005 was £2.8 million. We review The NJCNC is supported by Local Joint this policy and our reserves position annually. Consultative and Negotiating Committees Our use of reserves, however, is restricted in each of the 10 workplaces. Recently by the Government’s end of year flexibility the organisation agreed a new recognition regulations which mean that we are not agreement with Amicus and Unison, which currently allowed to use our reserves brought clarifies the constitution of these bodies and forward from 2001/02 of £10 million. our consultation process under the new information and consultation regulations. Approach to employee development, participation and diversity Arts Council England seeks to ensure that Arts Council England’s training and the requirements of health and safety development programmes are designed to legislation are met in the workplace. Health encourage and support all employees in and safety issues of general concern are improving performance and develop their discussed with Amicus and Unison. skills and competence. Six regional offices have Investors in People recognition and it We are committed to creating a working is hoped the whole organisation will have environment that treats people with fairness achieved the award by early 2006. and respect, and is free from discrimination, harassment and bullying. Policies and We have arrangements to promote effective procedures are geared towards eliminating consultation and communication with all direct and indirect discrimination, and staff. Executive Board and Council activities supporting employees in reaching their are disseminated through a system of team full potential. briefing meetings, our intranet and regularly emailed updates, supplemented from time In recognition of our positive approach to time by office and directorate meetings. For to recruiting and managing staff with the first time, we conducted a staff satisfaction disabilities, we have been awarded the ‘Two survey during early 2005 and will be analysing Ticks’ symbol by The Employment Services.
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