annual review 2003 contents

1 welcome 2 chairman’s introduction 4 chief executive’s introduction 6 supporting the artist 12 enabling organisations to thrive, not just survive 17 championing diversity 23 offering opportunities to young people 28 encouraging growth 33 grant-in-aid accounts 83 lottery accounts 126 National Lottery report 151 Council and regional council members, and executive board 153 attendance at arts events

Francesca Beard performs in Chinese Whispers, commissioned and produced by Apples & Snakes, the performance poetry organisation. Chinese Whispers explores how we communicate our cultural identity in the 21st century. See page 26 for more information about Apples & Snakes. Photo: Jason Larkin welcome

Arts Council England is the national body for the arts in England. As an independent, non-political body working at arm’s length from Government, we distribute public money from Government and the National Lottery to artists and arts organisations.

Our vision is to promote the arts at the heart of national life, reflecting England’s rich and diverse cultural identity.

We believe that the arts have the power to transform lives and communities, and create opportunities for people throughout the country.

For 2003 to 2006 our overall aims are: • supporting the artist • enabling organisations to thrive, not just survive • championing diversity • offering opportunities for young people • encouraging growth

This review gives a brief summary of our work in backing the country’s artistic talent and winning further support for the arts. If you would like to find out more, visit our website www.artscouncil.org.uk or phone us on 0845 300 6200.

Arts Council England annual review 2002/03 1 at the heart of national life

When I became Chairman of the Arts Council in 1998 I had two major ambitions – to increase funding for the arts and to make the Arts Council work better in its support of artists and arts organisations.

I’m pleased that over the last five years we’ve successfully made the case to Government for the biggest ever increase in arts funding and set up a reformed Arts Council England that can confidently state its ambition to promote the arts at the heart of our national life.

Gerry Robinson That claim is real. Recent research shows the importance of the Photo: Stephen Gill arts to the economic life of the nation. And, through programmes like Creative Partnerships, we are seeing increasing evidence of the positive role creativity can play in enhancing young people’s education in the broadest sense.

But you also need only look at the excitement generated by the competition to be European Capital of Culture 2008 to see how the arts can galvanise communities, giving people a renewed optimism about their surroundings. Congratulations Liverpool, I am sure that 2008 will be a year worth waiting for, and one that underlines the huge part arts and culture have played in renewing civic pride as well as contributing massively to the economy. All the competing cities have built new partnerships, increased levels of investment, and generated a new sense of optimism and excitement.

This is the last time I shall contribute to the Arts Council’s annual review as its Chairman. I have enjoyed my time in the role enormously and learned an immense amount. The experience has confirmed my thinking that artists and the arts are of fundamental importance to a healthy and vibrant society, and enrich the existence of so many immeasurably.

2 Arts Council England annual review 2002/03 As a businessman, I have come to realise that arts organisations are in most cases very well run, indeed extremely versatile, and just need more investment.

Over the last year or two we have seen exciting new leadership coming to national prominence in some of our major companies – the Royal Shakespeare Company and the Royal Opera House, for instance, both receive substantial public funding through the Arts Council, and have benefited from new leadership and fresh approaches.

An example of this is the success of Nicholas Hytner’s first season as artistic director at the Royal National Theatre, which has both proved popular with audiences as well as being critically acclaimed.

Over the next few years I know we will see tremendous benefits coming through as a result of the Government’s confidence in the arts, and the extra funding now available.

I leave the Arts Council confident that the new Council, appointed in summer 2002, and the committed and professional staff team, are in a strong position to deliver the bold and clearly articulated ambitions Council has set out. I would like to thank Council members old and new for their commitment, energy and dedication; all staff, past and present of the Arts Council, in its regional and national offices, for all they have done to create the new organisation and make these ambitions achievable; and the artists and arts organisations whose ingenuity and talent make a transforming difference to the lives of everyone in the country.

Gerry Robinson Chairman

Arts Council England annual review 2002/03 3 the transforming power of the arts

Last year was another of change and consolidation for the Arts Council, having formed the merged organisation on 1 April 2002. In February 2003, we published our Ambitions for the arts – the five priorities which will guide and underpin our increased investment in the arts until 2006. I am particularly pleased to see a new priority for artists, and we aim to put the arts at the heart of national life – which is where they belong.

Our central belief is in the transforming power of the arts – Peter Hewitt on an individual level, as a community or in society as a whole. Photo: Pete Jones

Our annual review showcases some examples of this, demonstrating both the wealth of creative talent in England and the benefits of increasing investment in the arts. I believe we must build on the confidence shown in the arts by Government, through our significantly increased funding for artists and over 1,200 regularly funded organisations which provide a bedrock of arts activity large and small, in every corner of England. Especially important are initiatives such as Creative Partnerships and decibel, which seeks to raise the profile of culturally diverse arts and embed diversity in the mainstream of our work.

One material advantage of having a single organisation is consistency in the way artists are treated, wherever they live and work.

4 Arts Council England annual review 2002/03 Grants for the arts demonstrates this change. From around 150 schemes previously in operation, we now have three ways in which artists can apply for funding – as individuals, organisations and for touring. We have simplified the application process, asking only for information we genuinely need to assess the application. We are being clear about what we see as our priorities. We believe we have made big strides to creating a 21st century Arts Council.

I couldn’t end my introduction without expressing my gratitude to Gerry Robinson, who steps down as Chairman at the beginning of 2004. Gerry had two ambitions when he came to the Arts Council – to win more money for the arts and make the organisation work better. Under his inspired leadership, we have a renewed sense of mission and purpose, and have never experienced a similar scale of growth in funding. Everyone who works for or cares about the arts in this country owes a great debt to Gerry, and the Arts Council will miss his insight and passion for the arts.

Peter Hewitt Chief Executive

Arts Council England annual review 2002/03 5 supporting the artist

Creative individuals are central to our ambitions and so we are making their needs a priority. Through Grants for the arts we will be making £25 million available to individual artists in England between 2003/04 and 2005/06, doubling past provision.

Artists need support through direct assistance, such as more funding, developing their professional and business skills, or help with finding spaces in which to work or equipment to carry out their work.

We are also working on other ways of supporting the artist, such as training, legislative change or in stimulating the economy for artists. We have started to improve international opportunities and connections for artists living and working in England, through initiatives such as our international artists fellowships programme. We have established 56 fellowships in 25 countries and over 130 artists have taken part since the programme began in 2001.

The arts economy As part of our work supporting individual artists, we want to better understand their involvement with the tax and benefits system, and their patterns of employment. Our research, Artists in figures, found that: • employment in cultural occupations is growing faster than in other types of job. In 2000, almost 760,000 people worked in cultural occupations in the UK, an increase of more than 150,000 since 1993 • the cultural workforce is a highly skilled one, with over half qualified to degree level or above, compared with a quarter of people in non-cultural occupations • cultural workers are entrepreneurial. They are 3.5 times more likely to be self-employed than those in non-cultural occupations (39.1%, compared with 11.5%)

6 Arts Council England annual review 2002/03 Artists workspaces Developing artists workspaces has been a priority for us for the past five years. For example, our capital programme has helped ACAVA Studios in London, East Street Arts in Leeds, Spike Island in Bristol and Yorkshire Artspace in the Persistence Works building in Sheffield to establish exemplary purpose-built studios.

In July 2003 we helped organise Creating Places, a national conference exploring the role of artists studios and workspace provision. This was aimed at people responsible for regeneration, property development, planning and artist workspace development in the UK and will help us plan future work in this area.

Sculptor Cathy Lewis in her studio at Spike Island, Bristol. Photo: Apex News Agency

Arts Council England annual review 2002/03 7 Swimming Fish by Sue Woolhouse. Photo: David Lawson encore Ten leading artists from the north east creatively in 2 and 3D forms. Glass artist received £10,000 each to enable them to Sue Woolhouse experimented with new take the time to develop a new approach to glass making techniques, free for a time from their work. The artists included a poet, a the pressure to accept commissions, and ceramicist, a dancer and a saxophonist. The actor/director Paul Harman used the time to visual artist Tanya Axford used the time to develop his skills as an actor and work with explore new media, experimenting theatre companies in Europe and Korea.

8 Arts Council England annual review 2002/03 4Dance 2003 Professional development Working with Channel 4, we commissioned for Yorkshire artists 11 new films to develop dance on film. This Fifty five Yorkshire artists took part in a was our first creative dance collaboration scheme to develop their artistic practice and with Channel 4. Each film featured original business skills. choreography and some also contained specially composed music. Visual artist Kate Jacobs said: ‘The combination of both supporting the business The films were broadcast in July as part of and the creation of the work has been vital 4Dance 2003, a four part series presented by in encouraging my development as an artist. William Trevitt and Michael Nunn – the Ballet Access to information, events and workshops Boyz – who performed in three of the specially has also been invaluable – it goes a long way commissioned films. Other artists included to breaking the isolation of working as an Tom Sapsford and the Honey Brothers, Alison individual artist. Murray and Jonzi D, and Chris Ho. All the artists were selected for their diverse, ‘For the first time I feel I have access to a innovative and high quality ideas. network that understands and is about working as an artist. I have been continuously The series also included 10 acquired films encouraged and supported to take my work that had not been broadcast before and and my business seriously.’ attracted up to 600,000 viewers.

The Ballet Boyz, presenters of 4 Dance 2003. Photo courtesy of Channel 4

Arts Council England annual review 2002/03 9 Developing new talent One of the theatrical highlights at the 2003 Edinburgh Fringe Festival was the dark comedy Hard sell from Cambridge new writing specialists Menagerie. Hard sell was the subject of a rare five star review in the festival bible Three Weeks. And My Uncle Arly, Hoipolloi Theatre’s collaboration with Norwich-based Tiebreak, was nominated for the Total Theatre Award.

This work was part of East to Edinburgh, an initiative that saw six companies and an artist in residence from the East region take their work to the Fringe. As well as financial help, the companies had the support of a dedicated marketing team and central project management from The Junction in Cambridge and Colchester Arts Centre.

East to Edinburgh was not just about the festival itself – it will have a lasting effect both for the artists and the East region as a whole. Work is underway with regional producers and venue managers to build on the interest generated by the venture and to find further opportunities to promote local work and pursue international contacts.

East to Edinburgh is part of the New Talent initiative run by our office in the East region.

Steve Tiplady and Sally Brown of Indefinite Articles perform Dust. Photo courtesy of The Junction

10 Arts Council England annual review 2002/03 Fatoma, Unrecognised series, ‘Arab Al N’aim by Ahlam Shibli

Lost time – Ahlam Shibli The first UK exhibition by Palestinian artist Ikon is an internationally acclaimed Ahlam Shibli was held at the Ikon Gallery, contemporary art venue situated in a Birmingham in autumn 2003. The exhibition refurbished Victorian school building in consisted of three series of photographs – central Birmingham. As well as its exhibition Self-Portrait, Unrecognised and Goter – programme, Ikon runs extensive education showing the nature of ordinary lives lived by activities and an off-site programme that Palestinians in extraordinary circumstances seeks to place high quality contemporary under the state of Israel. work in new contexts around the region.

The Unrecognised series depicts ‘Arab Al In 2002/03 we gave Ikon over £750,000 N’aim, a village in the Galilee region that in regular funding. does not exist on official maps. The images portray the landscape, the villages, the villagers and their belongings.

Arts Council England annual review 2002/03 11

enabling organisations to thrive, not just survive

Arts organisations provide the foundation for the arts in this country, and a healthy cultural environment needs robust and successful arts organisations. We support a portfolio of regularly funded organisations, capable of the best possible artistic work.

When we announced our three year spending plan in March 2003, we were able, as one organisation covering the whole country, to look at how to apply our money to all of the arts across all of England. The amount we give to regularly funded organisations will rise from £225.3 million in 2003/04 to £300.8 million in 2005/06. Many organisations received a significant increase in their funding to help them realise major ambitions.

We fund some of the country’s major arts organisations, such as the Royal Opera House and the Royal National Theatre. The Royal Opera House, for example, receives an increase of more than 14 per cent over the period to 2005/06 to support its commitment to new work, new artists and new audiences.

We are also helping provide training for people working in arts organisations, and want to see the best possible people working in, and leading, the arts. We will help organisations make the most of their capacity and, in return, expect them to be well managed and to use our investment effectively.

Mark Elder CBE, Music Director of the Hallé Photo courtesy of the Hallé

Arts Council England annual review 2002/03 13 Hallé Orchestra Clare Morrall Even arts organisations that are regularly Photo: Max Grizaard funded may need extra support to help them change how they operate or respond to difficult circumstances. The renowned Hallé Orchestra, based in Manchester, has been supported by our stabilisation programme to enable it to relaunch artistically in a number of ways. Tindal Street Press An important development at home was Tindal Street Press, in the few short years to create the Hallé Youth Orchestra, which since it became a company in 2000, has first performed in December 2002 at the gained itself both a national reputation and Bridgewater Hall. The members are aged Booker Prize finalist recognition. We are also up to 19 and live in and around Greater taking it on as one of our regularly funded Manchester. Being part of the Hallé gives organisations from 2004. them the chance to work with other Hallé players and artists of international standing. The Press had been supported by West Their repertoire spans the 18th to the 21st Midlands Arts, now Arts Council England, century. But as well as studying orchestral West Midlands, since it began publishing works, members also explore other musical in 1996. It also received around £93,000 styles such as jazz and improvisation, and are in project funding through the National encouraged to develop their solo repertoire. Lottery. These funds helped establish it as an independent publisher of excellent Internationally, Music Director Mark Elder, contemporary fiction, with a national pictured on page 12, led the Hallé on a reputation for publishing strong, regional highly successful residency in Vienna in 2002. voices. It is also committed to commissioning and publishing new writers.

One of these writers is Clare Morrall, who was shortlisted for the Man Booker Prize 2003 for her first published work, Astonishing Splashes of Colour.

14 Arts Council England annual review 2002/03 Chichester Festival Theatre Chichester Festival Theatre is one of the £1,200,000 in 2005/06. A new artistic many theatres across England to benefit team has embarked on a radical from our Theatre Review. When an extra programme with a resident ensemble £25 million was awarded to over 200 of actors, musicians and creative artists theatres in 2000, it was the largest ever working in repertoire to put on an increase in public funding for theatre annual, six month festival. in this country. The Theatre Review was supported by our national policy for The festival includes plays from classics theatre, which called on theatres to offer to contemporary writing, promenade more of a range of high quality work performances, cabaret and comedy and to attract more people. We provided nights and many other events such as funding to help them do so. family days and talks. To enhance the 2003 festival themes of Venice and Chichester Festival Theatre constantly water, the Festival Theatre stage was works to bring innovative theatre to flooded for the season, creating a more people. Our regular funding will magnificent installation for staging quadruple from £300,000 in 2002/03 to the shows.

The Brothers Marquez performing I Caught My Death in Venice at Chichester Festival Theatre Photo: Clare Park Yorkshire Sculpture Park Yorkshire Sculpture Park is one of the five major sculpture parks in the world, with exhibitions across 500 acres of 18th century landscaped grounds as well as in galleries.

Over 350,000 visitors a year come to its displays of modern and contemporary work by leading UK and international artists and half/angel performs Spinstren. Photo: Apex News Agency take part in the education and community programmes. To meet these huge numbers, half/angel the park opened a visitor centre in 2002, half/angel was one of the first organisations providing improved access and a range of to be awarded money under Grants for the facilities. This striking £5 million building arts – touring. Grants for the arts is the Arts has been nominated for leading architecture Council’s simplified funding scheme that prizes and has won a RIBA White Rose launched in 2003, standardising funding award. More building development is opportunities across the country. half/angel planned in the park. was awarded £30,000 to tour their 2002 production Spinstren in the south west in Yorkshire Sculpture Park is now home to the 2003. Spinstren spins together the story of Arts Council England sculpture collection, Carla, a girl who lives by the sea and steals a housed in the new Longside gallery. spinning top, and the Spinstren – a breed of magical women. It uses the techniques for Our regular funding has risen from £620,000 which half/angel are renowned, interweaving in 2002/03 to £900,000 in 2005/06. physical, vocal and sonic gestures with rich veins of poetic text, sound and video, to create a magical space. Promenade 1996 by Anthony Caro, Yorkshire Sculpture Park. Courtesy of the artist and Annely Juda Fine Art, London. Photo: Jonty Wilde

16 Arts Council England annual review 2002/03 championing diversity

The celebration of cultural diversity – by which we mean the full range and diversity of the culture of this country – is a central value of our work, running through all our programmes and relationships. In some cases our focus will be on race and ethnic background; in others on disability, for example.

We are working to promote high quality culturally diverse work and will make more funding available for culturally diverse arts. For example, in March 2003 we announced increased regular funding for Luton Carnival Arts from Anjali Dance £25,000 in 2002/03 to nearly £155,000 in 2005/06; and Company performs Mind the Gap, a theatre company working with people WYSIWYG (What You See Is What You Get) with learning disabilities, will see its regular funding rise Photo: Chris Nash from £50,000 in 2002/03 to £100,000 in 2005/06.

Arts Council England annual review 2002/03 17 Deafinitely Theatre performs Motherland. Photo: Mark Wilkinson

Anjali Dance Company Deafinitely Theatre The performance and education work Deafinitely Theatre has produced plays, by Anjali Dance Company continually workshops and other theatre-related projects challenges prejudice and preconception. predominantly for the Deaf community, since All the members of this regularly funded it began in January 2002. The company organisation have a learning disability. They explores the use of British Sign Language in create dance works of the highest standard, theatre. Although they aim to create a new which are then toured to all sections of the style of theatre which is inherently Deaf, they community. combine voice and sign to make theatre accessible to mixed audiences. The company demonstrates the creative potential of people with learning disabilities. A Grants for the arts award of £14,200 They have been funded by The Learning supported their production Motherland, and Skills Council to facilitate an accredited which resulted from a year of research and learning programme for dancers wishing to development. It is set against the backdrop gain professionally recognised qualifications of 1930s Nazi rule, when more than 17,000 in dance and performance studies. Deaf people were forcibly sterilised by government policy.

Motherland was performed at Oval House Theatre in London as part of Xposure disability arts festival in 2003. The Oval House is a regularly funded organisation that benefited from the Theatre Review.

18 Arts Council England annual review 2002/03 Roots Roots dramatically increases the amount Flava, new musical talent was promoted and range of African, Asian, Caribbean and by offering younger listeners to BBC Chinese cultural coverage and participation Southampton the opportunity to be in local broadcast media. Eleven Roots mentored and trained and then compete in coordinators work in their local communities, an on-air musical showcase. discovering talented, previously unknown artists and encouraging new and different Statistics generated between September 2002 audiences to arts events. They research and and August 2003 show that Roots broadcasts produce radio, television and online features, totalled 943 pieces across radio, television support and organise local cultural activities and online. 660 artists and arts organisations and create new opportunities to showcase have been involved with Roots, with 380 local creative talent on air and in arts and local artists profiled through the project. community settings. This collaboration between Arts Council For example, Roots Around London linked England’s national and regional offices writing workshops in different communities and BBC English Regions was piloted in and generated 500 responses with stories the East Midlands and went national in broadcast on BBC Radio London and also September 2002. featured on BBC London Tonight. In Urban

Joanne Hudson-Lett, Roots coordinator for BBC 3 Counties Radio. Photo: Chris Beech

Arts Council England annual review 2002/03 19 Edward Lynch, RJC Dance. Photo: Richard Moran decibel decibel runs from May 2003 to March 2004. It promoters, event programmers, agents and is a project set up by the Arts Council to ‘raise funders the chance to see a wide variety of the voice of culturally diverse arts in Britain’. work that was ready to tour both nationally and internationally. RJC Dance, pictured, decibel lobbies and builds resources to was one of the performers. increase recognition and profile, create stronger networks, and develop managerial Due to the overwhelming success of this skill and artistic talent in the culturally diverse showcase, another has been confirmed arts sector. The Arts Council will study the for 2005. results to affect our future policy and investment in this sector. The visual arts platform, launched in November 2003, is providing six awards for artists and There have been some immediate results. three awards to support career development For example, decibel ran a performing arts in curatorial practice. This begins to tackle showcase in Manchester in May 2003, in historic underrepresentation of Black and association with x.trax. This gave producers, Asian practitioners in England’s major galleries.

20 Arts Council England annual review 2002/03 Royal Opera House The Royal Opera House, home of The Royal Ballet and The Royal Opera, is committed to presenting ballet and opera as vibrant living artforms to a wide range of audiences.

Our funding – over £21 million in 2002/03 – supports work on the main stage and the work of ROH2. ROH2, with Deborah Bull as its artistic director, was established to present new art which promotes and develops new artists and attracts new audiences. It has developed a range of partnerships which The Sangam makeup workshop, part of Contacting can contribute to achieving this. the World at the Contact Theatre Manchester, during Cultureshock. Photo: Matt Squire For example, for Black History Month 2003,

ROH2 presented Union Dance in three Cultureshock programmes of work celebrating the Cultureshock was a five-month multi arts company’s unique mix of cultural styles. programme in Manchester and across the Alongside innovative contemporary dance region, to celebrate and leave a legacy with the edginess of the street, was a from the 2002 Commonwealth Games. programme of work by young people from Union Too and the Royal Ballet’s Chance to It showcased contemporary arts from Dance programme. the Commonwealth and cultural diversity from its region. Some of the many activities

In November 2003, ROH2 held A NITRO at were theatre productions from Taki Tua the Opera with NITRO, Europe’s oldest Black Productions from New Zealand and Legs on theatre company. The day focused on new the Wall from Australia, a Literatures of the work by Black composers and was successful Commonwealth Festival, a groundbreaking in bringing a largely new audience into the Arts South Asia exhibition programme and Opera House. It included performances of ‘Sensurround’, a two-day celebration of five new arias and the world premieres of Manchester’s club culture. three fully staged short operas by Clement Ishmael, Dominique Le Gendre and Errollyn Cultureshock also encouraged critical debate, Wallen. using conferences and seminars to examine the concepts of nationhood, cultural identity and internationalism.

Arts Council England annual review 2002/03 21 Some research findings Our 2003 report Focus on cultural diversity: the arts in England reported that Black and minority ethnic people strongly support the arts in this country. For example, • 86% of Black or British Black respondents agreed that ‘The arts play a valuable role in the life of the country’, as did 75% of Asian or British Asian and 73% of white respondents • 90% of Black or British Black people agreed that arts and cultural projects should receive public funding, as did Asian or British Asian respondents (79%), Chinese and other ethnic groups (75%) or white respondents (74%)

Victor Romero Evans in Moon on a Rainbow Shawl by Errol John, Nottingham Playhouse. Photo: Robert Day

Eclipse Theatre One of the many issues raised in the Arts then Arts Council of England held the Eclipse Council’s Theatre Review, 2000, was a lack conference. The topic – developing strategies of Black theatre touring to middle-scale to combat institutional racism in theatre. In venues. So, supported by the Arts Council’s 2002, as well as the Arts Council publishing Black Regional Initiative in Theatre (BRIT), a conference report of the same name, three regional producing theatres – Eclipse Theatre was formed, through which Nottingham Playhouse, the New Wolsey the plays are toured. Theatre in Ipswich and the Bristol Old Vic – formed a consortium to produce and tour The first production was Moon on a Rainbow one piece of Black work a year. Shawl, pictured, by Nottingham Playhouse. Staged in March 2003, it was one of the In 2001, Nottingham Playhouse, the playhouse’s largest productions of the year Theatrical Management Association and the and toured to critical acclaim.

22 Arts Council England annual review 2002/03 offering opportunities to young people

Young people’s engagement with the arts is fundamental to our desire to see wider access to the arts.

Creative Partnerships is the first ever nationally coordinated programme developing creative learning and teaching through intensive partnership with the cultural sector. Our investment in Creative Partnerships complements our strategies for participation, lifelong learning, and other arts and creative education. Creative Partnerships Slough pupils taking There is a wealth of arts and education activity taking place in part in the Young Arts Alive street festival, schools and other settings up and down the country. The fourth the culmination of round of our Artsmark award scheme for schools was launched a week of school in September 2003. Over 1,700 schools received an Artsmark workshops managed by Zap Art, July 2003 award in the first three rounds, recognising their commitment Photo: Ray Gibson to arts provision for their pupils. Delabole CP School’s Slate Giant, built by sculptor David Kemp as part of the Creative Partnerships Cornwall project On the Shoulders of Giants. Photo: Brenda Bernard

Creative Partnerships Creative Partnerships is an Arts Council learning programme between the initiative that takes a unique approach Department for Culture, Media and Sport to working with schools. It helps schools and the Department for Education and Skills. identify their individual needs and then develop long-term, sustainable partnerships Sculptor David Kemp worked with Delabole with organisations and individuals including CP School to create Slate Giant as part of architects, theatre companies, museums, a project called On the Shoulders of Giants. cinemas, historic buildings, dance studios, North Cornwall primary schools are working recording studios, orchestras, film-makers with nationally renowned artists, sculptors and website designers. and writers in 2003 to create, literally, a Giants’ Trail of giants built in each school’s The first phase of the programme runs from grounds. The aim is to publish a leaflet for April 2002 until March 2004 in 16 pilot this trail with the National Trust, to be areas, with a budget of £40 million. In 2003, distributed throughout Cornwall and Devon. another £70 million was confirmed for The National Trust is promoting this activity 20 new Creative Partnerships areas to be nationwide through their members’ created by 2006. This is the first joint creative magazine.

24 Arts Council England annual review 2002/03 Youth Music Action Zones The Arts Council set up Youth Music in 1999, workshops, rehearsals, performances, with £30 million of lottery funding. We have one-to-one teaching and mentoring. since awarded another £40 million so that Youth Music can continue their work. By Three of these zones exist in the West 2006 they will have reached more than Midlands. One project being run through one million children and young people. the Staffordshire/Stoke-on-Trent Youth Music Action Zone is the Cross Cultural Music One way they reach young people is through Project, working to support young asylum the Youth Music Action Zones. seekers and refugees and help integrate them into their new lives. The project hopes Youth Music has set up 20 action zones to attract around 100 young people, and around the country, in areas of social and will emphasise carnival and street music. economic need, to provide music-making activities to young people who might not The Bristol and Gloucester zone, called Remix, otherwise have the opportunity. Each zone is giving practical opportunities to nursery has a consortium of experienced partners and key stage 1 children to develop singing from public, voluntary and private sectors. and movement, through Kuumba and The music ranges from funk to folk, roots Gloucestershire’s Arts in Education Agency to reggae, jazz to junk, classical to choral working with teachers, carers and parents. and garage to gospel. Activities include

Bristol and Gloucester Youth Music Action Zone. Photo: Apex News Agency

Arts Council England annual review 2002/03 25 Apples & Snakes Charnwood Arts Apples & Snakes is the national poetry Charnwood Arts is one of the leading organisation that believes performance community arts and media organisations poetry should be an immediate, entertaining in the East Midlands, with the mission of and inspiring means of expression and ‘connecting communities through creativity’. communication, an alternative to formal It stimulates and supports local cultural poetry readings and recitals. Our regular development, working with around 500 funding will increase from £169,550 in local groups and encouraging participation 2002/03 to £243,299 in 2005/06. in the area’s cultural life. By enabling and encouraging creative expression and Apples & Snakes presents poetry live and experimentation it helps build community dynamically across England, in new spaces identity. The processes and findings are well and to new audiences. One of these main documented at www.charnwoodarts.com audiences is young people. Apples & Snakes will tailor educational projects as requested, It carries out a lot of work with young sending out their challenging, diverse and people, which has resulted in the creation of dynamic poets to any context. the Charnwood Youth Arts Network (CYAN).

Among their many education and CYAN began life in the summer of 2001 community projects is the Poets in Education through a series of projects funded by the scheme. They send out poets from different Home Office as part of a youth activities cultural backgrounds to give workshops that programme. The 2002 summer programme can be held in any setting – school, park, had activities ranging from circus and skating prison, clinics – and tailored towards the to computer games and music. In 2003, the National Curriculum as necessary. The aim MakeIt! programme at Charnwood Museum is always to enthuse. For example, in their involved over 600 young people creating work with under-fives, they get the children exhibits. interested in language through storytelling and games. Linked to this work, another Home Office funded project, Connecting Communities, was set up in January 2002. This is an arts- led community cohesion initiative including the local youth service, police, the local authority and the Racial Equality Council.

26 Arts Council England annual review 2002/03 Set Step We commissioned two new recordings of studying GCSE and A level dance and dance works by two of the UK’s leading BTEC performing arts. The videos also choreographers, for use as a resource for include interviews with the the academic study of dance. These are choreographers. the first new works to reach the syllabus for many years. This project is made possible by a unique partnership with the Qualifications and The videos are full-length recordings of Curriculum Authority (QCA), where sales Akram Khan’s Rush and Henri Oguike’s income will go towards producing future Frontline, pictured. They are for key recordings. stage 3 and 4 students and those

Henri Oguike Dance Company performing Frontline for Set Step. Photo: Chris Nash encouraging growth

The creative economy is an important part of the wider economy of this country. We are working to maximise the potential of the arts – through raising their profile, and increasing participation and the resources available.

We will maximise effective partnerships with a range of national, regional and local agencies. This includes central government departments, regional development agencies and local authorities. Alphabet Soup, an Art House project We believe Government should build on its investment involving 100 artists on the theme of ‘Alphabet’, in creativity and we are encouraging our partners in both sponsored by Denby the public and private sectors to increase their financial Pottery. Photo courtesy contribution to the arts. of The Art House Being Here skaters’ group flag, Southend-on-Sea Artists: Bob Clayden and Joanna Smith

Local government and the arts The partnership between local government between our offices and local government. and Arts Council England is the bedrock of For example, we’re playing a major part in the arts in England. We are the two biggest Southend’s regeneration plans, as part of funders, investing between us over £800 our Arts Generate initiative in the East million a year in creativity and supporting region. To date, this has three main strands: thousands of jobs. • Public art – an ongoing programme to commission public art, focusing initially on We held the first national summit between a landmark project at Pier Hill, Southend Arts Council England and local government • Design Front 04 – the East’s first ever in November 2002 and produced a national national design fair will take place in vision for partnership in March 2003. In this June 2004, bringing together exhibitors we identified four shared priorities for activity: of international renown and local talent. the creative economy, healthy communities, The plan is to make this an annual event vital neighbourhoods and engaging young • Being Here programme (managed by people. momentum arts) – a mix of arts-led projects and activities designed to involve local The new partnership agreements are young people and tackle social issues such strengthening and developing relationships as teenage pregnancy, drugs and alcohol

Arts Council England annual review 2002/03 29 Embody Yourself ‘Skin/Strip’ © Completely Naked, part of Shooting Live Artists

Shooting Live Artists Working with the business world Shooting Live Artists allows pioneering artists Arts & Business helps business people the space to explore new technological support the arts and the arts inspire business breakthroughs without the pressure of people, because good business and great art commercial constraints. It is also an example enrich society. In 2002/03 we gave Arts & of the dynamic partnerships we are building Business over £5.5 million. with a variety of external agencies. Arts & Business has a dramatic effect on the Shooting Live Artists 2003 consists of six way arts work with business. In Doncaster, artworks commissioned by the BBC and us. for instance, Denby Pottery, designers and The project is co-funded by Studio of the manufacturers of ceramic tableware, are North and b.tv. developing a partnership with The Art House, a local arts organisation helping disabled and Each of the works is centred round the use non-disabled artists have equal access to of new digital media and live art, and has an opportunities in the visual arts. The Art House element of online interactivity. In 2003, with is one of our regularly funded organisations. support from New Audiences, the exhibition of the finished commissions at Site Gallery, Denby Pottery and The Art House jointly Sheffield was connected with Live Culture, planned a touring exhibition of tableware an event at Tate Modern, London. We under the title Alphabet soup, with each are carrying out research to inform the place setting inspired by a letter of the development of the scheme and future models alphabet and each piece within the set for collaborating with broadcasting partners. created by a different artist. The project led to collaboration between 100 participating Shooting Live Artists commissions 2003 were artists, with Denby providing the plain white Daniel Gosling, Hill and Paris, Third Angel, pottery each artist used as the base. Iain Forsyth and Jane Pollard, Ronald Fraser Munroe, and Completely Naked & Denby saw this as an opportunity to help Furtherfield. View the work at them develop perception of their brand www.bbc.co.uk/arts/shootinglive/ as creative and forward looking, through supporting the project itself and by touring it.

30 Arts Council England annual review 2002/03 BALTIC BALTIC, the international centre for Nearly one million people visited BALTIC contemporary art situated on the south in its first year, exceeding all expectations. bank of the River Tyne, opened in July We are also providing regular funding to 2002. It is at the heart of the regeneration support BALTIC’s exhibitions and events, of Gateshead Quays. Money for the and its extensive education programme. conversion of the former flour mill came from Arts Council lottery funds (over £41 million), the Single Regeneration BALTIC, Gateshead/Julian Opie, Escaped Animals Budget and Gateshead council. road signs. Photo: Don Barker Public art awards Local authorities across the south east public spaces, and encourages partnerships nominated their favourite piece of between local authorities, businesses, contemporary public art for Public art in universities and artists. the south east, a publication launching the innovative Awards for Art in Public Places. Public art in the south east celebrates some of the region’s most stimulating public art. We developed the scheme with the regional For example, The History Wall is a gabion development agency, SEEDA. It is open filled with layered salvage materials from annually to organisations and individual demolished buildings in Horsebridge, Kent. artists who are resident in the region during It was funded through a partnership the life of the project. The scheme supports between the Arts Council, Canterbury City artists at all stages of development to move Council and Banbury Developers. beyond the gallery space and transform

The History Wall, Whitstable, 2002 by Andrew Sabin. Photo: Andrew Sabin

32 Arts Council England annual review 2002/03 grant-in-aid accounts

Photo information: The Foundation for FACT is just one example of the innovation Art & Creative Technology, (FACT), based in and drive that have seen Liverpool chosen to Liverpool, is a national home for moving image be the European Capital of Culture for 2008. cultural practice, from cinema to the internet. We have committed an extra £1.8 million Our regular funding of the organisation has in annual funding for arts organisations increased by over one third, from £616,000 on Merseyside by 2006 to support the bid, in 2002/03 to £944,000 in 2005/06, and will continue to support the other supporting its highly ambitious, innovative cities of culture. and strategically important programme of Photo credit: Photec 2003 work. We also contributed nearly £4 million from lottery money towards the building, which opened in February 2003. Arts Council England grant-in-aid accounts 1 April 2002–31 March 2003 Trustees’ report and foreword

Introduction The Arts Council of England, trading as to distribute funds from the National Lottery Arts Council England, is a registered charity, by the National Lottery etc Act 1993 (as charity registration number 1036733. It was amended by the National Lottery Act 1998). established by Royal Charter on 1 April 1994, taking over those responsibilities in England The Council works at arm’s length from previously discharged by the Arts Council of Government and has the status of a non- Great Britain. The objectives of the Council departmental public body. As such it is as stated in the Royal Charter, its governing regulated in accordance with a Financial document, are to develop and improve the Memorandum issued by the Secretary of knowledge, understanding and practice of State. Accounts for grant-in-aid and lottery the arts and to increase accessibility of the are prepared separately in accordance with arts to the public. To this end, it makes Accounts Directions also issued by the grants to arts organisations and engages Secretary of State. in other activities on behalf of the sector. Internal structure Arts Council England was granted a On 1 April 2002, the 11 organisations which Supplemental Charter on 31 May 2002. formerly made up the arts funding system The purpose of this Supplemental Charter in England, consisting of 10 Regional Arts was ‘to give effect to new arrangements for Boards and The Arts Council of England, regionalisation of its structure and activities’. merged to become one legal entity. Arts There were no changes to the objects of the Council England is now the trading name Council and the main changes relate to the of this new organisation. The organisation Council’s powers to establish and to delegate has nine regional offices, matching the powers and functions to regional councils. Government’s regional boundaries, and The charter sets out the new composition a national office. Each region has a council of the Council, which includes the chairs and the 15-strong national Council (details of the regional councils. below) includes the chair of each of the new regional councils. The national Council The address of the principal office is met in formal session five times during the 14 Great Peter Street, London SW1P 3NQ. year and monitored the work of the chief executive and staff. In addition a number of The Council receives grant-in-aid from the advisory panels, while carrying no executive Department for Culture, Media and Sport authority, played an important role by (DCMS) and is one of the bodies designated providing advice from the arts constituency.

34 Arts Council England annual review grant-in-aid accounts 2002/03 Foreword continued

The Executive Board is made up of the Chief Executive, Peter Hewitt, nine regional executive directors and four executive directors at the national office, for arts, development, external relations, and finance and operations respectively.

The key objectives of the new organisation, as published in Ambitions for the arts in February 2003, are to: • prioritise individual artists • work with funded arts organisations to help them thrive rather than just survive • place cultural diversity at the heart of our work • prioritise young people and Creative Partnerships • maximise growth in the arts

Arts Council England annual review grant-in-aid accounts 2002/03 35 Foreword continued

Membership of Council

The members of the Arts Council are its trustees. During the year 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 January 2001 David Brierley CBE November 1997 May 2002 Deborah Bull CBE June 1998 May 2002 Emmanuel Cooper September 2000 May 2002 Anish Kapoor June 1998 May 2002 Joanna MacGregor June 1998 May 2002 Sir 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

36 Arts Council England annual review grant-in-aid accounts 2002/03 Foreword continued

On 27 May 2002 membership of the new national Council for Arts Council England was announced. The new national Council consists of up to 15 members, nine of whom 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 North East Deborah Grubb South East Sue Woodford Hollick London Professor Alan Livingston South West Stephen Lowe East Midlands Joanna MacGregor * Sir Brian McMaster CBE Elsie Owusu OBE William Sieghart Professor Stuart Timperley East Dorothy Wilson West Midlands * Joanna MacGregor resigned from the Council on 14 June 2003.

Dorothy Wilson is chair of the Audit Committee. Sir Norman Adsetts, Paul Collard and Professor Alan Livingston served as members of the committee together with David Brierley as a co-opted member.

Arts Council England annual review grant-in-aid accounts 2002/03 37 Foreword continued

Chief Executive, Chairman and new structure was confirmed. New simplified Council members appointment funding programmes were also developed Gerry Robinson was appointed as Chairman during the year, and announced in February of the Arts Council on 1 May 1998 for an 2003. These came into operation in April initial term of three years, and re-appointed 2003. One of these programmes, Grants for a further three-year term on 23 January for the arts – individuals, is funded through 2001. The Chief Executive, Peter Hewitt, was grant-in-aid. Lead responsibility for managing appointed by the Council on 9 March 1998 the relationship with the vast majority with the approval of the Secretary of State of regularly funded organisations was for Culture, Media and Sport. His contract transferred from the national to regional expires on 31 January 2005. offices by the end of the year.

Council members are appointed by the It is anticipated that the reorganisation will Secretary of State for Culture, Media and deliver significant savings in administration Sport for up to four years, and are eligible costs. These savings will be delivered in for re-appointment for a further term of stages. Most will be achieved in 2003/04, up to four years. following implementation of the new structure. However, some savings cannot be Review of the year realised until transitional issues have been The DCMS provided grant-in-aid of £290.4 worked through, for example, rationalisation million for the year. This includes £9.8 million of IT systems and relocation of offices. for the Creative Partnerships programme. Total grants awarded during the year were Grant making policy £261.3 million. Arts Council England awards and monitors grants in accordance with regulations set out The statement of financial activities in its Charter and Financial Memorandum. funded from grant-in-aid shows a deficit Grant-making decisions are based on the of £3.4 million. This deficit is due to the Council’s objectives as stated in the Charter planned use of reserves brought forward and the current funding agreement between from prior years and the exceptional costs Arts Council England and DCMS. This states incurred in the reorganisation. that the overarching aim is: ‘to promote access, education and excellence in the arts 2002/03 was an interim year, coming through partnership’. between the formal completion of the reorganisation in April 2002 and the Reserves development of a new staff structure and At 31 March 2003 Arts Council England ways of working, which came into effect in had unrestricted reserves of £10.6 million. April 2003. Staff consultation took place The Council’s policy on reserves is to ensure during summer 2002, following which the that it holds sufficient funds to maintain

38 Arts Council England annual review grant-in-aid accounts 2002/03 Foreword continued liquidity, to cover unforeseen short-term cash intranet was launched in February 2003. requirements of £4–5 million and to repay More formally, during 2002/03 the Arts to DCMS grant-in-aid over committed in Council recognised the trade unions Amicus previous years, which at 31 March 2003 was and Unison for consultation and collective £4.9 million. Arts Council England reviews bargaining, and established appropriate this policy and its reserves position annually. consultative machinery to support this.

Employment and training policies and Following the merger on 1 April 2002 a staff participation new national forum for managing issues The Arts Council is committed to creating with the unions has been put in place. The a working environment that treats people National Joint Consultative and Negotiating with fairness and respect, and is free from Committee (NJCNC) has a mandate to discrimination, harassment and bullying. handle all core pay, terms and conditions of Policies and procedures are geared towards employment, and corporate HR policies and eliminating direct and indirect discrimination, procedures across the whole organisation. and supporting employees in reaching their The NJCNC is supported by Local Joint full potential. Consultative and Negotiating Committees based in each of the 10 workplaces. The Arts Council’s training and development programmes are designed to encourage The Arts Council seeks to ensure that the and support all employees in improving requirements of health and safety legislation performance. In recognition of the are met in the workplace. Health and safety organisation’s positive approach to the issues of general concern are discussed with recruitment and management of staff with Amicus and Unison. disabilities, the Arts Council has been awarded the ‘Two Ticks’ symbol by The Other matters Employment Services. From 1 April 2003 the Co-operative Bank of 78–80 Corn Hill, London EC3V 3NJ acted 11.3% of staff classify themselves as Black, as the banker for Arts Council England. Asian or Chinese, and 2.5% of staff classify themselves as disabled. The Comptroller and Auditor General of 157–197 Buckingham Palace Road, Victoria, The Arts Council has put in place arrangements London SW1W 9SP is auditor to the to promote effective consultation and Arts Council. communication with all staff. Executive Board and Council activities are disseminated The Council maintains a register of interests through a system of team briefing, of its members, which is available for public supplemented from time to time by office inspection by appointment at the Council’s and directorate meetings. A new staff Great Peter Street address.

Arts Council England annual review grant-in-aid accounts 2002/03 39 Foreword continued

The Council attempts to abide by the Better • state whether applicable accounting Payment Practice Code, and in particular to standards have been followed, and pay bills in accordance with contract. Invoices disclose and explain any material are normally settled within our suppliers’ departures in the financial statements standard terms, usually 30 days. In 2002/03 • prepare the financial statements on 82.1% of undisputed invoices were paid the going concern basis, unless it is within a 30-day period. inappropriate to presume that the Council will continue in operation Forward funding In July 2002, the DCMS announced future The Accounting Officer for the Department funding for Arts Council England of for Culture, Media and Sport has designated £335.5 million in 2003/04, £365.5 million the Chief Executive as Accounting Officer in 2004/05 and £410.5 million in 2005/06. for the Council. The relevant responsibilities as Accounting Officer, including the Statement of trustees’ and Chief responsibility for the propriety and regularity Executive’s responsibilities of the finances for which the Chief Executive Under the Royal Charter the Council is is answerable and for the keeping of proper required to prepare a statement of accounts records, are set out in the Non-Departmental for the financial period in the form and on Public Bodies’ Accounting Officers’ the basis directed by the Secretary of State Memorandum, issued by HM Treasury. for Culture, Media and Sport, with the consent of HM Treasury. The accounts are Peter Hewitt to be prepared on an accruals basis and to Chief Executive show a true and fair view of the Council’s 25 November 2003 state of affairs at the year end and of its income and expenditure and cash flows for Gerry Robinson the financial year. The Council is required to: Chairman • observe the Accounts Direction* issued 25 November 2003 by the Secretary of State, which sets out accounting and disclosure requirements, *a copy of the Accounts Direction is and apply suitable accounting policies available from the Accounting Officer, on a consistent basis Arts Council England, 14 Great Peter Street, • make judgements and estimates on London SW1P 3NQ. a reasonable basis

40 Arts Council England annual review grant-in-aid accounts 2002/03 Statement on internal control

1 Scope of responsibility 3 Capacity to handle risk, and the risk As Accounting Officer and representative and control framework of the trustees, we acknowledge our 2002/03 was a year of material change for responsibility for ensuring a sound system Arts Council England. The former Arts Council of internal control that: merged with the 10 formerly independent • supports the achievement of Arts Council Regional Arts Boards with effect from 1 April England’s objectives 2002. A Supplemental Charter was granted • safeguards the public funds and assets to allow for the new arrangements. A new for which we are responsible, and in national and nine new regional councils were accordance with the responsibilities appointed, and new terms of reference and assigned to the Accounting Officer in internal frameworks of delegation established. Government Accounting As a result of this a new staffing structure • ensures compliance with the requirements was developed, consulted on and confirmed. This new structure reflected a major delegation of Arts Council England’s Financial of funding decisions and client relationship Memorandum management to a regional level. The staffing structure became effective on 1 April 2003. The system of internal control is designed In addition, several major changes to to manage rather than eliminate the risk operational processes were developed and of failure to achieve these objectives. It can introduced, including the development of therefore only provide reasonable and not internal shared services and the wholesale absolute assurance of effectiveness. simplification of grant programmes.

2 The purpose of the system of As a result of this level of change within the internal control organisation, an interim risk management The system of internal control is based on process, maintained and reviewed by the an ongoing process designed to identify the Change Programme Steering Group (a sub principal risks to the achievement of policies, group of Executive Board), was introduced. aims and objectives, to evaluate the nature This concentrated on the change-related and extent of those risks and to manage risks associated with the merger. The process them efficiently, effectively and economically. included: • a documented risk management approach During 2003/04 we are putting the for all the individual change projects in procedures in place necessary to implement progress during 2002/03, requiring a HM Treasury guidance relating to risk separate risk register to be produced and management. This takes account of the time reviewed regularly needed to fully embed the processes, which • summarising the above in a consolidated Arts Council England has agreed should be change risk register which was regularly established, and improve their robustness. reviewed by the Change Programme Steering Group

Arts Council England annual review grant-in-aid accounts 2002/03 41 Statement on internal control continued

In addition, Arts Council England had a) A national Council, made up of the established before the merger the following: trustees of Arts Council England, which • a risk management policy, which was has defined responsibilities and a code established during 2001/02 of practice which include: • a risk register consisting of general • strategic planning and control including organisation-wide risks which was approval each year of a corporate plan produced in consultation with senior and approval of the overall budget management and has been reviewed allocation on a three year basis regularly by the steering group • delegation of responsibility for specific matters to the regional councils or In order to ensure full compliance during Arts Council England committees 2003/04 in the area of risk management • accountability for public funds, ensuring Arts Council England plans further work, that Arts Council England conducts its as detailed in section 4. operations economically, efficiently and effectively 4 Review of effectiveness • approval of the annual report and accounts As Accounting Officer and representative • ensuring that Arts Council England fulfils of the trustees, we have responsibility for its obligations as an employer and reviewing the effectiveness of the system complies with all relevant legislation of internal control. Our review of the effectiveness of the system of internal b) An Audit Committee with agreed terms control is informed by the work of the of reference which include: internal auditors and the Executive Board, • the review of the Arts Council’s internal who have responsibility for the development financial statements to ensure they reflect and maintenance of the internal control best practice framework, and comments made by the • the review of the Arts Council’s external external auditors in their management letter financial statements and other reports. We have reviewed the • to consider internal and external audit effectiveness of the system of internal control reports and to review the Arts Council’s and plan to address weaknesses and ensure relationship with its internal and external continuous improvement of the system auditors throughout 2003/04. • to review the effectiveness of the Arts Council’s internal control system, The system of internal control is based including the review of its risk on a framework of regular management management policy and risk register information, administrative procedures • to report to the national Council on including the segregation of duties, and the discharge of the above duties a system of delegation and accountability. Arts Council England has established the following processes:

42 Arts Council England annual review grant-in-aid accounts 2002/03 Statement on internal control continued c) An Executive Board and sub group A risk management policy and related structure with defined terms of reference procedures were put in place in January which include: 2001. However, with the creation of the new • to establish the corporate policy on organisation, it was recognised that a full high level issues and to oversee the scale review of risk management procedures implementation of nationally agreed was necessary, given the new organisational policies and plans structure and devolved nature of decision • to receive and monitor financial making. A piece of consultancy work has information relevant to the Arts Council’s been commissioned to advise on this. Revised overall management responsibilities risk management procedures were introduced • to take decisions within delegated powers in October 2003. and to approve further delegation as appropriate A likely additional outcome of the above mentioned review is that the terms of d) An internal audit function which operates reference of the Audit Committee, although to standards defined in the Government compliant with existing guidelines, will be Internal Audit Standards and whose amended to include more specific reference programme of work is agreed and to risk management. monitored by the Audit Committee. The work of the internal auditors is informed A shared finance service was introduced by an analysis of the risk to which the with effect from 1 April 2003. This provides Council is exposed and annual internal a single set of procedures for management audit plans are based on this analysis. accounting, a centralised payroll, a single The analysis of risk and the internal audit financial ledger, and consistent procedures plans are endorsed by the Council’s Audit on authorisation of grant payments and Committee and approved by us. At least purchasing, to ensure consistency of internal annually, the head of internal audit financial control across the organisation. provides a report on internal audit activity in the Council. The report includes the A completely revised monitoring policy head of internal audit’s independent was introduced from September 2003. opinion on the adequacy and effectiveness This will ensure consistency of approach to of the Council’s system of internal control. monitoring regularly funded organisations and early identification of issues. The Arts Council intends to implement the following for the year ended 31 March 2004 Peter Hewitt so it can make a Statement on Internal Control Chief Executive which illustrates that it has established a sound 25 November 2003 system of internal control during 2003/04. Gerry Robinson Chairman 25 November 2003

Arts Council England annual review grant-in-aid accounts 2002/03 43 The Certificate and Report of the Comptroller and Auditor General to the Trustees of Arts Council England

I certify that I have audited the financial them. I also report if, in my opinion, the statements on pages 46 to 69. These financial Foreword is not consistent with the financial statements have been prepared in the statements, if Arts Council England has form directed by the Secretary of State and not kept proper accounting records, or if approved by HM Treasury; they have been I have not received all the information and prepared under the historic cost convention explanations I require for my audit. I read the as modified by the revaluation of certain other information contained in the annual fixed assets at their value to the business by review and consider whether it is consistent reference to current costs and the accounting with the audited financial statements. I policies set out on pages 50 and 51. consider the implications for my certificate if I become aware of any apparent Respective responsibilities of the misstatements or material inconsistencies Trustees, Chief Executive and Auditor with the financial statements. As described on page 40, the Trustees and the Chief Executive of Arts Council England I review whether the statement on pages are responsible for the preparation of the 41 to 43 reflects Arts Council England’s financial statements and for ensuring the compliance with HM Treasury’s guidance, regularity of financial transactions funded ‘Corporate governance: statement on by Parliamentary grant (grant-in-aid). The internal control’. I report if it does not meet Trustees and the Chief Executive are also the requirements specified by HM Treasury, responsible for the preparation of the or if the statement is misleading or other contents of the annual review. My inconsistent with other information I am responsibilities, as independent auditor, are aware of from my audit of the financial established by statute and guided by the statements. Auditing Practices Board and the auditing profession’s ethical guidance. Basis of audit opinion I conducted my audit in accordance with I report my opinion as to whether the United Kingdom Auditing Standards issued financial statements give a true and fair view by the Auditing Practices Board. An audit and are properly prepared in accordance with includes examination, on a test basis, of directions made by the Secretary of State and evidence relevant to the amounts, disclosures applicable requirements of the Charities Act and regularity of financial transactions 1993, and whether in all material respects included in the financial statements. It also the expenditure and income have been includes an assessment of the significant applied to the purposes intended by estimates and judgements made by the Parliament and the financial transactions Trustees and the Chief Executive in the conform to the authorities which govern preparation of the financial statements,

44 Arts Council England annual review grant-in-aid accounts 2002/03 The Certificate and Report of the Comptroller and Auditor General to the Trustees of Arts Council England continued and of whether the accounting policies are • in all material respects the expenditure, appropriate to the Council’s circumstances, income and resources funded by grant- consistently applied and adequately disclosed. in-aid have been applied to the purposes intended by Parliament and the financial I planned and performed my audit so as to transactions conform to the authorities obtain all the information and explanations which govern them. which I considered necessary in order to provide me with sufficient evidence to give John Bourn reasonable assurance that the financial Comptroller and Auditor General statements are free from material 28 November 2003 misstatement, whether caused by error, or by fraud or other irregularity and that, National Audit Office in all material respects, the expenditure and 157–197 Buckingham Palace Road income have been applied to the purposes Victoria, London SW1W 9SP intended by Parliament and the financial transactions conform to the authorities which govern them. In forming my opinion The maintenance and integrity of I have also evaluated the overall adequacy Arts Council England’s website is the of the presentation of information in the responsibility of the Accounting Officer. financial statements. My work does not involve consideration of these matters and accordingly I accept no Opinion responsibility for any changes that may have In my opinion: occurred to the financial statements since • the financial statements give a true and they were initially presented on the website. fair view of the state of affairs of Arts Council England at 31 March 2003 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

Arts Council England annual review grant-in-aid accounts 2002/03 45 Statement of financial activities For the year ended 31 March 2003

As restated Unrestricted Restricted Total total funds funds 2002/03 2001/02 Note £000s £000s £000s £000s Incoming resources Grant-in-aid income 2 279,655 9,750 289,405 251,455 Investment income 848 0 848 1,150 Other incoming resources 3 4,072 3,640 7,712 8,834 Total incoming resources 284,575 13,390 297,965 261,439 Resources expended Charitable expenditure Grant commitments made in the year 4 258,378 2,952 261,330 236,519 Less: lapsed and revoked commitments (650) (1) (651) (1,163) Net grant commitments 257,728 2,951 260,679 235,356 Other arts expenditure 5 10,147 5,021 15,168 7,601 Support costs 6 19,352 2,004 21,356 18,763 Management and administration 6 19,197 0 19,197 15,502 Resources expended before costs apportioned to lottery 306,424 9,976 316,400 277,222 Costs apportioned to lottery accounts 13 (18,058) 0 (18,058) (15,375) Total resources expended 288,366 9,976 298,342 261,847 Net incoming/(outgoing) resources before exceptional items (3,791) 3,414 (377) (408) Exceptional items Cost of fundamental reorganisation 29 (3,019) 0 (3,019) (1,413) Net incoming/(outgoing) resources after exceptional items (6,810) 3,414 (3,396) (1,821) Notional costs Cost of capital 10 (1,196) 0 (1,196) (1,298) Net incoming/(outgoing) resources after notional costs (8,006) 3,414 (4,592) (3,119) Reversal of notional costs 1,196 0 1,196 1,298 Transfers between reserves 119 (119) 0 0 Net incoming/(outgoing) resources for the year 11 (6,691) 3,295 (3,396) (1,821)

(Loss) on sale of tangible fixed assets 000(300) Net movement in funds (6,691) 3,295 (3,396) (2,121)

Balance brought forward at 1 April 2002 20,296 1,343 21,639 23,760 Balance carried forward at 31 March 2003 13,605 4,638 18,243 21,639

46 Arts Council England annual review grant-in-aid accounts 2002/03 Summary of income and expenditure account For the year ended 31 March 2003

2002/03 2001/02 £000s £000s Gross income of continuing operations 297,965 261,439 Gain (loss) on sale of fixed assets 0 (300) Total income of continuing operations 297,965 261,139

Total expenditure of continuing operations 301,361 263,260

Net (expenditure) (3,396) (2,121)

The notes on pages 50 to 69 form part of these accounts.

Arts Council England annual review grant-in-aid accounts 2002/03 47 Balance sheet As at 31 March 2003

As restated Total total Unrestricted Restricted Endowment 31 March 31 March funds funds funds 2003 2002 Note £000s £000s £000s £000s £000s Fixed assets Tangible assets 12 7,692 0 522 8,214 6,796 7,692 0 522 8,214 6,796 Current assets Stocks 14 13 0 0 13 10 Debtors 15 3,682 703 0 4,385 4,443 Grant-in-aid receivable 2 1,000 0 0 1,000 1,000 Due from Arts Council lottery accounts 7,284 0 0 7,284 3,270 Grants paid in advance 8,779 0 0 8,779 10,132 Cash at bank and in hand 8,373 4,110 38 12,521 14,672 29,131 4,813 38 33,982 33,527 Creditors: amounts falling due within one year Grants outstanding 18,673 252 0 18,925 18,180 Creditors 16 8,419 483 0 8,902 5,378 27,092 735 0 27,827 23,558 Net current assets 2,039 4,078 38 6,155 9,969 Grant-in-aid receivable in over one year 2 3,874 0 0 3,874 4,874 Total assets less current liabilities 13,605 4,078 560 18,243 21,639 Represented by income funds 22 Unrestricted fund 10,309 0 0 10,309 17,223 Restricted fund 0 4,078 0 4,078 664 Represented by capital funds 22 Endowment fund 0 0 38 38 38 Designated fund 3,296 3,296 3,073 Donated asset reserve 0 0 522 522 641 13,605 4,078 560 18,243 21,639

The notes on pages 50 to 69 form part of these accounts.

Peter Hewitt, Chief Executive Gerry Robinson, Chairman of Arts Council England

25 November 2003

48 Arts Council England annual review grant-in-aid accounts 2002/03 Cash flow statement For the year ended 31 March 2003

As restated 2002/03 2001/02 Note £000s £000s Operating activities Grant-in-aid received 290,405 252,455 Other cash receipts 8,372 8,723 Grants paid to arts organisations and other bodies (259,153) (234,090) Cash paid to and on behalf of employees (22,841) (19,738) Net cash movements relating to the Arts Council lottery accounts (4,014) 140 Cash payment relating to fundamental reorganisation (3,019) (1,413) Other cash payments (net) (10,654) (5,065) Net cash (outflow)/inflow from operating activities 23 (904) 1,012

Returns on investments and servicing of finance Interest received on short-term cash deposits 848 1,150

Net cash inflow from returns on investments 848 1,150

Capital expenditure and financial investment Purchase of tangible fixed assets (2,095) (1,150) Proceeds from sale of fixed assets 0 17 Net cash outflow from capital expenditure (2,095) (1,133)

(Decrease)/increase in cash 24 (2,151) 1,029

The notes on pages 50 to 69 form part of these accounts.

Arts Council England annual review grant-in-aid accounts 2002/03 49 Notes to the grant-in-aid accounts

1 Accounting policies Arts Board activities, assets and liabilities a) Basis of accounts for 2001/02 as previously published in their The accounts have been prepared in annual accounts. Appropriate accounting accordance with the revised Accounts policy adjustments have been made to bring Direction issued by the Secretary of State for the Regional Arts Board accounts in line with Culture, Media and Sport in May 2002. They Arts Council England policy, as disclosed in meet the requirements of the Companies Acts, note 29 of these accounts. and of the Statements of Standard Accounting Practice/Financial Reporting Standards issued b) Incoming resources and adopted by the Accounting Standards All income is accounted for on a receivable Board, so far as those requirements are basis. Grant-in-aid from the Department for appropriate. The accounts are presented Culture, Media and Sport allocated to general in accordance with the Statement of purposes is taken to the statement of financial Recommended Practice (SORP) issued by the activities in the year in which it is received. Accounting Standards Board in October 2000. c) Expenditure The accounts are prepared on a historic cost Grant expenditure is charged to the basis. The Accounts Direction requires the statement of financial activities in the year inclusion of fixed assets at their value to the in which funded activities take place. Any business by reference to current costs. amounts unpaid from grants at the year However, for 2002/03, the values of fixed end are shown in the balance sheet as assets expressed in current cost terms, with creditors. Any advance payments to funded the exception of freehold land and buildings, organisations in anticipation of grants to be are not materially different to historic costs. charged in the following financial year are Therefore these fixed assets are shown at shown as assets in the balance sheet. historic cost on the balance sheet. Freehold land and buildings were revalued at 31 March Other arts expenditure relates to expenditure 2001 to current market value and are included directly in support of the arts, rather than via at this valuation on the balance sheet. payment of grant. This includes the cost of delivering major arts policies and projects. Separate accounts have been prepared for No staff costs are included in other arts the Council’s lottery activities, in accordance expenditure. with the directions issued by the Secretary of State. Consolidated accounts have not Support costs comprise operational been prepared. expenditure, including staff costs, directly attributable to charitable activities. In accounting for the merger of Arts Council England and the 10 Regional Arts Boards on Management and administration costs 1 April 2002, merger accounting has been used are those incurred in connection with in accordance with FRS6 Acquisitions and the management of the Council’s assets, Mergers. The 2001/02 comparatives have corporate support services, and compliance been restated to consolidate all the Regional with constitutional and statutory requirements.

50 Arts Council England annual review grant-in-aid accounts 2002/03 Notes to the grant-in-aid accounts continued d) Depreciation and fixed assets objectives. The Inland Revenue has granted Depreciation is provided on all tangible fixed this exemption. Accordingly, no taxation has assets (excluding freehold land and works of been provided for in these accounts. art) at rates calculated to write off the cost less estimated residual value of each asset h) Pensions systematically over its expected useful life The Arts Council provides a defined benefit as follows: pension scheme for its employees (the Arts Freehold buildings: 50 years Council Retirement Plan 1994) and is a Leasehold buildings: life of the lease participating employer in the West Yorkshire Equipment, fixtures Pension Fund. However, as multi-employer and fittings: four years schemes, the Council is unable to identify its Motor vehicles: four years share of the underlying assets and liabilities. The schemes have therefore been accounted A full year’s depreciation is provided in the for as if they were defined contribution year of an asset’s acquisition, and none in the schemes, in accordance with FRS17 Retirement year of its disposal. Software costs are written Benefits, with the costs of the schemes off in full in the year of acquisition. Donated charged to the statement of financial activities. fixed assets are capitalised and included as income at market value in the year in which i) Apportioned costs they are received. All individual assets with The Arts Council incurs indirect costs which a value greater than £2,000 are capitalised. are shared between activities funded from the grant-in-aid and activities funded from e) Stocks the National Lottery. It is required to Stocks are stated at the lower of cost and net apportion indirect costs properly between realisable value, which is based on anticipated the two activity areas on a full cost basis in future sales. accordance with good accounting practice. f) Leases The notes to the statement of financial Costs in respect of operating leases are activities are shown before costs apportioned charged to the income and expenditure to the Arts Council lottery accounts. account on a straight line basis over the life of the lease. j) Notional costs In accordance with HM Treasury guidance, g) Taxation the notional cost of capital is charged in the The Arts Council of England is a registered statement of financial activities in arriving at charity (No 1036733) and is eligible under the a net incoming/(outgoing) resources figure. Income and Corporation Taxes Act 1988 to This is then added back in the statement seek from the Inland Revenue exemption from of financial activities, and so no provision taxes on income arising from its charitable is included on the balance sheet.

Arts Council England annual review grant-in-aid accounts 2002/03 51 Notes to the grant-in-aid accounts continued

2 Grant-in-aid income Unrestricted Restricted Total Total funds funds 2002/03 2001/02 £000s £000s £000s £000s Cash grant-in-aid voted by Parliament and paid in full 280,655 0 280,655 252,205 Creative Partnerships 0 9,750 9,750 250 280,655 9,750 290,405 252,455

Less: grant-in-aid receivable at 31 March 2002 5,874 0 5,874 6,874 274,781 9,750 284,531 245,581 Plus: grant-in-aid receivable outstanding as at 31 March 2003 4,874 0 4,874 5,874 Grant-in-aid as shown in the statement of financial activities 279,655 9,750 289,405 251,455

Of the grant-in-aid receivable balance at 31 March 2003, £3,874,000 is receivable in over one year (31 March 2002: £4,874,000).

3 Other income Unrestricted Restricted Total Total funds funds 2002/03 2001/02 £000s £000s £000s £000s Grants, sponsorship and donations received 22 3,567 3,589 3,852 Donated assets: works of art 00052 Conference fees 37 0 37 2 Local authority subscriptions 3,718 6 3,724 3,701 Publications and royalties 16 2 18 42 Profit/(loss) on sale of fixed assets 1015 Film production income 22 55 77 431 Sundry 256 10 266 749 4,072 3,640 7,712 8,834

52 Arts Council England annual review grant-in-aid accounts 2002/03 Notes to the grant-in-aid accounts continued

3 Other income continued Unrestricted Restricted Total Total funds funds 2002/03 2001/02 £000s £000s £000s £000s Grants, sponsorship and donations are analysed as follows: British Film Institute 000450 Crafts Council 00058 Department for Culture, Media and Sport 0 200 200 0 Department for Education and Skills 0 100 100 0 European Regional Development Fund 0696923 European Social Fund 0 403 403 0 Government Office North West 000165 Henry Moore Foundation 0 158 158 142 Manchester City Council 0 256 256 374 National College for School Leadership 05050 0 North West Development Agency 0 113 113 0 One NorthEast 0 370 370 735 Resource 06060 0 Scottish Arts Council 000135 UK Film Council 081811,048 Wellcome Trust 07575 0 Yorkshire Forward 000254 Youth Justice Board England and Wales 0 1,163 1,163 0 Other 22 469 491 468 22 3,567 3,589 3,852

4 Grants Unrestricted Restricted Total Total funds funds 2002/03 2001/02 £000s £000s £000s £000s Grants by office East 7,199 0 7,199 6,960 East Midlands 7,084 22 7,106 6,669 London 33,845 376 34,221 27,590 North East 9,294 682 9,976 10,714 North West 17,027 577 17,604 15,527 South East 12,533 280 12,813 11,888 South West 7,231 161 7,392 6,415 West Midlands 10,645 0 10,645 10,469 Yorkshire 10,491 228 10,719 9,583 National* 143,029 626 143,655 130,704 258,378 2,952 261,330 236,519

* With effect from April 2003, responsibility for the vast majority of national office clients was transferred to regional offices.

Arts Council England annual review grant-in-aid accounts 2002/03 53 Notes to the grant-in-aid accounts continued

5 Other arts expenditure analysed by area of spend

Unrestricted Restricted Total Total funds funds 2002/03 2001/02 £000s £000s £000s £000s Arts 6,120 637 6,757 3,782 Communications 1,433 2 1,435 1,105 Creative Partnerships 0 3,742 3,742 0 Research and Development 2,594 640 3,234 2,714 10,147 5,021 15,168 7,601

Other expenditure directly in support of the arts is distinguished separately from operational costs. In line with the requirements of the Statement of Recommended Practice issued by the Charity Commission, operational costs are then split between support costs, and management and administration (note 6).

6 Support costs, and management and administration

Support Support costs costs Management & Total Total unrestricted restricted administration 2002/03 2001/02 £000s £000s £000s £000s £000s Staff costs 14,923 1,160 6,758 22,841 19,738 Depreciation 124 0 520 644 914 Travelling, subsistence and entertainment 1,212 75 375 1,662 1,508 Rent and rates 517 65 3,616 4,198 3,561 Publicity and promotions 162 9 39 210 236 Agency staff costs 1,003 51 1,231 2,285 2,355 Professional fees 154 73 2,068 2,295 702 Office and sundry 958 453 3,097 4,508 3,440 Irrecoverable Value Added Tax 299 118 1,493 1,910 1,810 19,352 2,004 19,197 40,553 34,264

54 Arts Council England annual review grant-in-aid accounts 2002/03 Notes to the grant-in-aid accounts continued

7 Staff costs 2002/03 2001/02 £000s £000s Salaries and wages 18,851 16,681 Employer’s National Insurance 1,470 1,353 Arts Council Retirement Plan (1994) 2,158 1,657 Payment to former Regional Arts Board pension providers 588 177 23,067 19,868

Staff costs include £226,000 (2001/02: £130,000) which relates to the team working on the reorganisation and has been included as an exceptional item in the accounts.

The payments to former Regional Arts Board pension providers relates to sums due to make good the deficits relating to ex-Regional Arts Board staff.

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 Arts Council England. In 2002/03, the total cost of tickets purchased for this purpose was £9,000 (year ended 31 March 2002: £14,000).

The average number of employees during the year was made up as follows: 2002/03 2001/02 Direct charitable activities 506 486 Management and administration 150 159 656 645

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 in note 8 below. 2002/03 2001/02 Emoluments for the year £50,000–£59,999 17 16 £60,000–£69,999 2 2 £70,000–£79,999 1 0

Arts Council England annual review grant-in-aid accounts 2002/03 55 Notes to the grant-in-aid accounts continued

8 National Council members and executive directors’ remuneration 8a) National Council members’ remuneration The nine members of national Council who are also chairs of regional councils each received remuneration of £4,000 during 2002/03. The Chairman and remaining members of national Council received no remuneration during 2002/03.

8b) Executive directors’ remuneration The remuneration of the executive directors of Arts Council England for the year ended 31 March 2003 was as follows:

Total Total Benefits remuneration remuneration Salary Pension in kind Bonus 2002/03 2001/02 £000s £000s £000s £000s £000s £000s Peter Hewitt (Chief Executive) 121 13 0 12 146 130 Wendy Andrews (Communications) 73 10 0 0 83 86 Nick Capaldi (South West) 50 6 0 0 56 n/a Andy Carver (Yorkshire) 55 8 0 0 63 n/a Andrew Dixon (North East) 64 10 0 6 80 n/a Laura Dyer (East Midlands) 56 8 0 3 67 n/a Michael Eakin (North West) 76 8 0 3 87 n/a Kim Evans (Arts) 125 13 0 7 145 145 Keith Harrison (Finance & Resources) 73 10 0 4 87 1 Felicity Harvest (South East) 61 9 1 7 78 n/a Sally Luton (West Midlands) 56 8 0 3 67 n/a Nigel Pittman (London) 90 7 0 0 97 n/a Andrea Stark (East) 69 10 3 6 88 n/a Pauline Tambling 74 10 0 7 91 68 (Research & Development)

Kim Evans, Keith Harrison, Felicity Harvest and Pauline Tambling are on permanent contracts. Peter Hewitt is on a seven-year contract; Andrew Dixon is on a six-year contract; Laura Dyer, Michael Eakin, Sally Luton and Andrea Stark are on five-year contracts; Nick Capaldi is on a four-year contract; and Andy Carver is on a three-year contract. Keith Harrison took up post in March 2002. Wendy Andrews left the organisation in April 2003. Nigel Pittman was seconded to Arts Council England from the Department for Culture, Media and Sport until April 2003.

56 Arts Council England annual review grant-in-aid accounts 2002/03 Notes to the grant-in-aid accounts continued

8 National Council members and executive directors’ remuneration continued Details of the pension entitlements for the executive directors of Arts Council England for the year ended 31 March 2003 were as follows: Pension increase Pension increase Accrued in the year Accrued in the year Age at pension (net of inflation) pension (net of inflation) 31 March 2003 2002/03 2002/03 2001/02 2001/02 Years £000s £000s £000s £000s Peter Hewitt (Chief Executive) 51 24 5 19 5 Wendy Andrews (Communications) 45 14 4 10 4 Nick Capaldi (South West) 41 3 3 n/a n/a Andy Carver (Yorkshire) 46 5 5 n/a n/a Andrew Dixon (North East) 44 3 3 n/a n/a Laura Dyer (East Midlands) 36 3 3 n/a n/a Michael Eakin (North West) 45 3 3 n/a n/a Kim Evans (Arts) 52 17 5 12 5 Keith Harrison (Finance & Resources) 43 4 4 00 Felicity Harvest (South East) 52 3 3 n/a n/a Sally Luton (West Midlands) 50 4 4 n/a n/a Nigel Pittman (London) n/a n/a n/a n/a n/a Andrea Stark (East) 40 3 3 n/a n/a Pauline Tambling 47 18 4 14 3 (Research & Development)

9 Pensions Arts Council England is a participating employer in the Arts Council Retirement Plan (1994) and the West Yorkshire Pension Fund and also contributes to a group personal pension arrangement as detailed below:

Arts Council Retirement Plan (1994) The scheme is a defined benefit scheme. However, because it is a multi-employer scheme, Arts Council 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 FRS17 Retirement Benefits.

Arts Council England annual review grant-in-aid accounts 2002/03 57 Notes to the grant-in-aid accounts continued

9 Pensions continued The scheme is financed by payments by Arts Council England and employees into a trustee-administered fund independent of Arts Council England’s finances. These contributions are invested by a leading fund management company. The net market value of scheme assets at 31 March 2003 was £21,792,000.

An actuarial valuation of the pension fund takes place every three years. The last valuation was at 1 April 2002. At this date the actuarial value of the assets using the projected unit method was sufficient to cover 87% of the value accrued to members, a deficit of £4,200,000. Following completion of the 2002 valuation, and on the advice of the actuary, the employer’s contribution was increased to 15.2% with effect from 1 April 2003.

The principal long-term assumptions used for the purposes of the actuarial valuation were as follows: Price inflation rate 2.8% Rate of pay increases 4.3% Rate of pension increases 2.8%

Amounts due to the fund at 31 March 2003 were £nil (2002: £68,000).

West Yorkshire Pension Fund Arts Council England is an admitted member of the West Yorkshire Pension Fund. The scheme is a defined benefit scheme. However, because it is a multi-employer scheme, Arts Council 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 FRS17 Retirement Benefits.

The net market value of total scheme assets at 31 March 2003 was £3,709,000,000.

An actuarial valuation of the pension fund takes place every three years. The last valuation was at 31 March 2001. At this date the actuarial value of the assets using the projected unit method was sufficient to cover 107% of the value accrued to members. From 1 April 2003 employer contributions were set at 15%.

58 Arts Council England annual review grant-in-aid accounts 2002/03 Notes to the grant-in-aid accounts continued

The principal long-term assumptions used for the purposes of the actuarial valuation were as follows: Rate of interest 6.5% Rate of pay increases 4.0% Rate of pension increases 2.5%

Amounts due to the fund at 31 March 2003 were £nil.

Axa Sun Life Arts Council England contributes to a group personal pension arrangement in respect of some London office employees. All contributions are charged to the income and expenditure account as they arise.

Legacy Regional Arts Board pension schemes All active Regional Arts Board pension members with the exception of London Arts staff transferred to the West Yorkshire Pension Fund on 1 April 2002. However, their past service remained with the legacy pension provider as detailed below:

East England Arts Cambridgeshire County Council East Midlands Arts Nottingham County Council Northern Arts Tyne & Wear Pension Fund North West Arts Greater Manchester Pension Fund Southern Arts Hampshire Pensions Trust South East Arts Surrey County Council South West Arts Devon County Council West Midlands Arts Staffordshire County Council Yorkshire Arts Remained in West Yorkshire Pension Fund

Arts Council England is responsible for meeting any further liabilities relating to Regional Arts Board employees which arise in respect of these funds. At the date of signing these accounts two liabilities had been settled and negotiations are under way with one other pension scheme. We are still awaiting clarification from the other pension schemes as to whether there is a further liability to pay. Due to the uncertainty of the amounts involved in these potential liabilities it has not been possible to provide for them in these accounts.

Arts Council England annual review grant-in-aid accounts 2002/03 59 Notes to the grant-in-aid accounts continued

10 Notional costs Notional cost of capital is calculated as 6% of the average net assets employed by the Arts Council in the year.

11 Net outgoing resources for the year 2002/03 2001/02 £000s £000s Net outgoing resources are stated after charging: (a) Auditors’ remuneration 51 110 (b) Operating leases 2,548 3,065 (c) Council members’ travel, subsistence and hospitality 45 37 (d) Insurance: trustees and senior officers indemnity 14 4

12 Tangible fixed assets Land Equipment and fixtures Works buildings and fittings Vehicles of art Total £000s £000s £000s £000s £000s Costs at 1 April 2002 4,112 2,029 14 3,318 9,473 Additions 1,184 687 0 223 2,094 Less: disposals (21) (478) 0 (32) (531) Cost at 31 March 2003 5,275 2,238 14 3,509 11,036

Depreciation at 1 April 2002 1,178 1,491 8 0 2,677 Less: Depreciation on disposals (21) (478) 0 0 (499) Provided for 2002/03 210 431 3 0 644 Depreciation at 31 March 2003 1,367 1,444 11 0 2,822

Net book value at 31 March 2003 3,908 794 3 3,509 8,214

Net book value at 31 March 2002 2,934 538 6 3,318 6,796

The net book value of land and buildings comprises: 31 March 31 March 2003 2002 £000s £000s Freehold 1,203 1,179 Short leasehold improvements 2,705 1,755 3,908 2,934

60 Arts Council England annual review grant-in-aid accounts 2002/03 Notes to the grant-in-aid accounts continued

12 Tangible fixed assets continued Art Collection The Arts Council Collection has been valued by the curator at £38,253,000 at 31 March 2003 (2002: £30,835,000).

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 in the balance sheet at cost.

During the year the Arts Council received a donation from the Saatchi collection. The valuation of the Arts Council Collection at 31 March 2003 includes an estimated valuation of this gift at £250,000. At the date of signing the accounts a detailed market valuation had not been obtained.

13 Costs apportioned to Arts Council 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.

14 Stock 31 March 31 March 2003 2002 £000s £000s Publications 13 10 13 10

15 Debtors 31 March 31 March 2003 2002 £000s £000s Trade debtors 918 967 Other debtors 1,979 1,691 Prepayments and accrued income 1,488 1,785 4,385 4,443

Arts Council England annual review grant-in-aid accounts 2002/03 61 Notes to the grant-in-aid accounts continued

16 Creditors: amounts falling due within one year 31 March 31 March 2003 2002 £000s £000s Trade creditors 1,074 2,202 Other creditors including taxes and social security 293 429 Accruals and deferred income 7,535 2,747 8,902 5,378

17 Grant offers 31 March 31 March 2003 2002 £000s £000s Forward funding: 2002/03 n/a 194,870 2003/04 255,331 61,448 2004/05 280,082 0 2005/06 300,797 0 836,210 256,318

Forward funding at 31 March 2003 represents allocations for regularly funded organisations for the three-year funding cycle 2003/04–2005/06 confirmed before the year end. The prior year figures relate to confirmed commitments under the previous three- year funding cycle 2001/02–2003/04.

18 Leases At 31 March 2003 the Arts Council had annual commitments under non-cancellable operating leases as set out below. Land & Land & buildings buildings 31 March 31 March 2003 2002 £000s £000s Operating leases which expire: within one year 606 177 within two and five years inclusive 720 1,283 over five years 2,392 2,171 3,718 3,631

19 Capital commitments There were contracted capital commitments at 31 March 2003 of £702,000 (2001/02: £nil).

62 Arts Council England annual review grant-in-aid accounts 2002/03 Notes to the grant-in-aid accounts continued

20 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.

21 Royal National Theatre lease The Arts Council owns the freehold of the Royal National Theatre, which is leased to 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.

22 Reconciliation of movements in funds At 1 April At 31 March 2002 Income Expenditure Transfers 2003 £000s £000s £000s £000s £000s Income funds Unrestricted fund 17,018 284,575 (291,385) (104) 10,104 Revaluation reserve 205 0 0 0 205 Restricted fund 664 13,390 (9,976) 0 4,078

Capital funds Designated fund 3,073 0 0 223 3,296 Donated asset reserve 641 0 0 (119) 522 Endowment fund 38 0 0 0 38

21,639 297,965 (301,361) 0 18,243

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 grants expenditure and the running costs of the Arts Council.

Arts Council England annual review grant-in-aid accounts 2002/03 63 Notes to the grant-in-aid accounts continued

22 Reconciliation of movements in funds continued b) Revaluation reserve This relates to the unrealised surplus on revalued freehold properties. 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 31 March 2003 2002 £000s £000s Department for Culture, Media and Sport (Creative Partnerships) 3,550 13 Department for Culture, Media and Sport (other) 200 0 Department for Education and Skills 100 0 European Regional Development Fund 169 0 Henry Moore Foundation 0 109 Scottish Arts Council 0 125 Yorkshire Forward 0 105 Other 59 312 4,078 664

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. c) Endowment fund This fund relates to a bequest. Under the terms of the bequest, income is applied to provide prizes or scholarships for artists and sculptors.

64 Arts Council England annual review grant-in-aid accounts 2002/03 Notes to the grant-in-aid accounts continued

23 Cash flow reconciliation 2002/03 2001/02 £000s £000s Reconciliation of operating (deficit)/surplus to net cash inflow from operating activities Operating deficit (3,396) (2,121) Interest receivable (848) (1,150) Depreciation charges 644 914 Loss on disposal of fixed assets 0 300 (Increase)/decrease in stocks (3) 15 (Increase)/decrease in debtors and prepayments (2,351) 112 Decrease/(increase) in grants paid in advance 780 585 Increase/(decrease) in grants outstanding 967 681 Increase/(decrease) in creditors 3,303 1,676 Net cash (outflow)/inflow from operating activities (904) 1,012

24 Reconciliation of net cash flow to movement in funds 2002/03 2001/02 £000s £000s (Decrease)/increase in cash in the year (2,151) 1,029 Funds at 1 April 14,672 13,643

Funds at 31 March 12,521 14,672

25 Analysis of net cash 1 April Cash 31 March 2002 flow 2003 £000s £000s £000s Cash 14,672 (2,151) 12,521

26 Efficiency target performance Ordinarily Arts Council England 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 or 2002/03.

Arts Council England annual review grant-in-aid accounts 2002/03 65 Notes to the grant-in-aid accounts continued

27 Related parties Arts Council England maintains publicly available registers in which Council members declare their interests, including any direct interests in grant applications made to Arts Council England and commercial relationships with Arts Council England. The following interests in grant recipients were declared for the year ended 31 March 2003: Grant for the Balance year ended unpaid at 31/3/03 31/3/03 £000s £000s Organisation Council member Relationship 950 0 Sheffield Theatres Trust Sir Norman Adsetts Chairman OBE 5,778 58 Arts & Business Deborah Bull CBE Honorary vice president 150 22 Foundation for Patron Community Dance 179 0 Random Dance Company Board member 21,121 16 Royal Opera House Employee 16,132 11 South Bank Centre Board member 2,088 24 North Music Trust Paul Collard Wife is employee 219 32 Gardner Arts Centre Deborah Grubb Chair 10Meeting Ground Theatre Stephen Lowe Co-artistic Company director 275 10 Brighton Festival Joanna MacGregor Board member 147 0 Britten Sinfonia Associate artistic director 75 0 Society for the Promotion Artistic director of New Music 120 0 National Opera Studio Sir Brian McMaster CBE Chairman 5,778 58 Arts & Business Gerry Robinson Honorary vice president 5,778 58 Arts & Business William Sieghart Honorary vice president 05Forward Literature Trust Chairman 137 31 Birmingham Arts Marketing Dorothy Wilson Board member 01Birmingham Education Board member Arts Forum 442 6 mac (Midlands Arts Centre) Employee 119 48 Motionhouse Dance Company Board member 216 2 Nitro Sue Woodford Hollick Family member is artistic director 15,982 11 South Bank Centre Husband is chairman

66 Arts Council England annual review grant-in-aid accounts 2002/03 Notes to the grant-in-aid accounts continued

27 Related parties continued Executive directors and senior managers in Arts Council England are also required to declare any direct interests in grant applications made to the Council and commercial relationships with the Council. The following interests in grant recipients were declared for the year ended 31 March 2003. Grant for the Balance year ended unpaid at 31/3/03 31/3/03 £000s £000s Organisation Executive director Relationship 14,332 48 Royal National Theatre Elizabeth Adlington Partner is employee 16 16 Theatrical Management Member Association 368 18 Artangel Trust Marjorie Allthorpe- Patron Guyton 70 70 Royal College of Art Honorary fellow 108 27 Jubilee Arts Laura Dyer Partner is employee 368 18 Artangel Trust Kim Evans Patron 125 0 Arts Catalyst Bronac Feran Partner is board member 65Hastings Council Felicity Harvest Former partner is member 258 18 BALTIC Peter Hewitt Family member is employee 442 6 mac (Midlands Arts Centre) Sally Luton Partner is board member 177 0 SAMPAD Partner is board member 20University of Central England Board member 104 16 Survivor’s Poetry Andrew Pinnock Unpaid advisor 90Flambard Press Mark Robinson Publisher

The Department for Culture, Media and Sport is the sponsoring department for Arts Council England and is regarded as a related party. During the year Arts Council England had material transactions with other government departments and other lottery distributors including the UK Film Council.

Arts Council England annual review grant-in-aid accounts 2002/03 67 Notes to the grant-in-aid accounts continued

28 Financial instruments FRS 13, 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 FRS 13, 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 £12,521,000 at 31 March 2003 was held in instant access variable rate bank accounts which carried an average interest rate of 2.9%. c) Foreign currency risk Arts Council England’s exposure to foreign currency risk is not significant.

29 Merger of the Arts Council of England and the 10 Regional Arts Boards On 1 April 2002, the assets and liabilities of the 10 Regional Arts Boards transferred to Arts Council England as detailed in the table below.

Net assets at Less balances with Adjustment for Adjusted 1 April 2002 Arts Council changes in net assets at per audited accounts England accounting policies 1 April 2002 £000s £000s £000s £000s East England Arts 2,452 (56) (119) 2,277 East Midlands Arts 863 (91) (19) 753 London Arts 959 (1,263) 86 (218) Northern Arts 380 (38) (108) 234 North West Arts 229 (164) 767 832 Southern Arts 885 (97) (67) 721 South East Arts 623 (168) (6) 449 South West Arts 755 (102) (55) 598 West Midlands Arts 400 (82) 639 957 Yorkshire Arts 503 (67) (18) 418 The Arts Council of England 12,491 2,128 0 14,619 20,540 0 1,100 21,640

68 Arts Council England annual review grant-in-aid accounts 2002/03 Notes to the grant-in-aid accounts continued

29 Merger of the Arts Council of England and the 10 Regional Arts Boards continued The adjustments for changes in accounting policies relate to adjustments to Regional Arts Board fixed asset balances to bring them in line with Arts Council England’s capitalisation threshold and depreciation rates, and adjustment to grant commitments and income to bring them in line with Arts Council England’s recognition policy.

Costs relating to the merger as detailed below have been disclosed separately in the statement of financial activities as an exceptional item. 2002/03 2001/02 £000s £000s Professional fees 958 681 Redundancy costs 1,301 0 Other 760 732 3,019 1,413

30 Subsidiary undertaking Arts Council England owns the entire share capital of Artco Trading Limited (formerly South West Arts Trading Company Limited). The following figures have been consolidated into Arts Council England’s accounts in respect of this subsidiary undertaking:

2002/03 2001/02 £000s £000s Fixed assets 0 2

Cash at bank and in hand 225 17 Other debtors 538 118 Current assets 763 135

Other creditors 83 23 Amounts due to Arts Council England 650 100 Current liabilities 733 123

Net assets 30 14

Reserves 30 14

Arts Council England annual review grant-in-aid accounts 2002/03 69 Grants awarded 2002/03 Schedule 1 to the grant-in-aid accounts for the period to 31 March 2003 Multiple grants to the same organisation are combined and the total amount is shown. Only organisations receiving £25,000 and above are listed. £ £ 21 South Street Arts Centre 50,000 Art Asia Trust 70,000 57 Productions 80,400 Art House 55,000 A Art Services Grants 63,401 Acadamy of Ancient Music 30,000 Artangel Trust 367,600 Acme Studios 93,427 Artlandish 34,600 Acta Community Theatre 35,600 Artlink Exchange 30,000 Action Factory 75,080 Artlink West Yorkshire 37,080 Action Space London Events 34,395 Artpoint 85,078 Action Transport Theatre Company 93,869 Arts About Manchester 109,908 Actors Touring Company (London) 162,997 Arts Administration 228,901 ADAPT Trust 43,000 Arts Alive Association 51,562 Adfed 30,000 Arts & Business 5,797,217 Adzido Pan African Dance 981,704 Arts and Humanities Research Board 140,000 Africa Oye 61,214 Arts and Media Training 75,182 African and Caribbean Music Circuit 385,000 Arts Catalyst 125,000 Liz Aggiss 30,640 Arts Culture Harrow 30,000 Akademi 154,068 Arts Inform 50,000 Aldeburgh Productions 328,180 Arts Marketing Hampshire 121,150 All Ways Learning 94,983 Arts Training Central 101,077 Almeida Theatre Company 971,892 Artshape 53,000 Alternative Theatre Company 323,178 Artsites Birmingham 30,500 AN: The Artists Information Artsline 105,750 Company 173,244 Artsreach 30,000 Angel Row Gallery 128,985 Artsway Trust 87,500 Ann Sutton Foundation 25,000 Artswork 135,250 Anvil Press Poetry 76,500 Arvon Foundation 183,220 Anvil, The 25,500 Asian Music Circuit 435,520 Apna Arts 28,464 Aspex Visual Arts Trust 45,085 Apples & Snakes 202,350 Association of Black Photographers 132,000 Arc Publications 37,720 Association of British Calypsonians 33,000 Arcadia Books 64,009 Association of Festival Organisers 60,300 Architecture Centre Network 50,000 Attik Dance 104,500 Architecture Foundation 80,000 Audiences London 178,900 Arcola Theatre 32,490 Audiences Yorkshire 443,500 Arena 38,914 Autograph 50,827 Arnolfini 685,000 Axis 200,183

70 Arts Council England annual review grant-in-aid accounts 2002/03 Grants awarded 2002/03 continued

£ £ B Bolton Octagon 403,300 B3 Media 120,000 Book Trust 117,650 BAC (Battersea Arts Centre) 350,614 Book Works 132,658 Badejo Arts 175,500 Bournemouth Symphony Orchestra 2,015,000 BALTIC 257,500 Bracknell Summer Festival 65,635 Barbican Theatre 74,714 Bradford 2008 100,000 Barking and Dagenham Council 45,000 Bradford International Festival 25,000 Barnsley Council 72,100 Brazilian Contemporary Arts 40,127 Barrow-in-Furness Council 36,359 Brewery Arts Centre, Kendal 131,662 Basingstoke Theatre Trust 180,000 Brewery Arts, Cirencester 45,000 Bath Arts Workshop 121,000 Brewhouse Arts Centre, Bath Festivals Trust 122,000 Burton-on-Trent 30,900 Beaconsfield Gallery 71,656 Brewhouse Theatre and Beaford Arts 73,500 Arts Centre, Taunton 130,500 Belgrade Theatre Coventry 562,754 Bridewell Theatre 30,000 Bette Bourne Company 25,000 Bridport Arts Centre 29,000 Beverley and East Riding Folk Festival 28,375 Brighton and Hove Council 35,000 Bharatiya Vidya Bhavan 80,000 Brighton Festival Society 275,000 Big Brum Tie Company 54,779 Bristol Architecture Centre 35,000 Big Fish Theatre Company 36,788 Bristol Area Dance Agency 28,000 Birmingham Arts Marketing 137,308 Bristol Cultural Development Partner 50,500 Birmingham Contemporary Bristol Old Vic Trust 747,190 Music Group 174,460 British Association of Steelbands 30,000 Birmingham Opera Company 198,381 British Centre for Literary Translation 87,600 Birmingham Repertory Theatre 1,297,238 British Council 42,000 Birmingham Royal Ballet 6,177,993 British Film Institute 70,000 Black Arts Alliance 48,973 British Music Information Centre Trust 75,000 Black Country Touring 91,490 Britten Sinfonia 146,500 Black Umbrella 80,000 Brodsky Quartet 50,000 Blackfriars Arts Centre 84,595 Bromley Council 25,350 Blaize 30,000 Brouhaha 66,285 Blast Theory 110,000 Bucks Dance 30,300 Bloodaxe Books 94,706 Bull, The 51,000 Blue Eyed Soul Dance Company 39,253 Bury Council 25,850 Bluecoat Arts Centre 218,387 Bury St Edmunds Art Gallery 70,953 Bock and Vincenzi 28,619 Business in the Arts North West 62,814 Bode Lawal 30,000 Buxton Festival 50,094 Bolton Council 32,727

Arts Council England annual review grant-in-aid accounts 2002/03 71 Grants awarded 2002/03 continued

£ £ C CIDA (Creative Industries Cafe Gallery 92,250 Development Agency) 119,230 Cambridge Arts Theatre 233,340 Circomedia 25,000 Cambridgeshire Council 46,000 Circus Arts Forum 27,416 Camden Arts Centre 380,305 Circus Space 141,997 CandoCo Dance Company 208,500 Citadel Arts Centre 68,259 Canterbury Festival 38,500 City Gallery 95,540 Cape UK 91,458 City of Birmingham Carcanet Press 146,545 Symphony Orchestra 1,637,700 Cardboard Citizens 81,000 City of London Sinfonia 100,000 Carlisle Council 52,620 Clean Break Theatre Company 201,752 Cartwheel Community Arts 59,327 Cleveland Arts 110,440 Castle Museum and Art Gallery 37,775 Colchester Arts Centre 105,950 Castle, The 25,290 Collar and Tie 44,505 Castlefield Gallery 65,626 Commissions East 254,132 Centerprise Trust 69,542 Commissions North 27,836 Central London Arts 188,449 Common Players 36,000 Centre for the Children’s Book 147,000 Commonword 91,638 Channel 4 Television 120,000 Community Arts North West 63,429 Channel Theatre Company 44,799 Community Music 160,000 Chard Festival of Women in Music 26,700 Como No! 43,000 Charnwood Arts 30,645 Company of Angels 36,738 Cheltenham Arts Festivals 119,000 Compass Theatre Company 137,000 Cherwell Council 26,625 Computer Programming Consortium 40,000 Cheshire Council 50,000 Contact Theatre 543,200 Cheshire Dance 64,820 Contemporary Art Society 70,000 Chester Gateway 250,450 Contemporary Dance Trust 1,208,263 Chichester Festival Theatre 300,000 Continental Drifts 50,000 Children’s Discovery Centre 28,320 Copeland Council 46,350 Chinese Arts Centre 109,392 Coral Fox 42,000 Chinese Cultural Centre 28,662 Corby Community Arts 52,530 Chipping Norton Theatre 41,800 Cornerhouse (Greater Manchester Arts Centre) 626,270 Chisenhale Dance Space 97,344 Corridor Arts 28,400 Chisenhale Gallery 117,394 Corridor/People Show 32,350 Chitraleka and Company 30,131 Courtyard Arts Centre 58,575 Chol International Arts 35,300 Crafts Council 2,694,227 Cholmondeleys and Craftspace Touring 105,001 Featherstonehaughs 265,370

72 Arts Council England annual review grant-in-aid accounts 2002/03 Grants awarded 2002/03 continued

£ £ Craven Council 40,000 darts (Doncaster Community Arts) 51,500 Crawley Council 40,000 Dash (Disability Arts in Shropshire) 30,500 Create – Scarborough 25,000 David Glass New Mime Ensemble 184,000 Creative Advantage Fund 100,000 De La Warr Pavilion 145,000 Creative Arts East 70,792 De Montfort Hall 120,048 Creative Jazz Orchestra 30,000 Deafinitely Theatre 31,120 Credibility 27,895 Dedalus 48,457 Crescent Arts 25,000 Derby Council 54,443 Cross Border Arts 38,874 Derby Dance Centre 99,288 Croydon Clocktower 72,000 Derby Playhouse 500,860 Crying Out Loud London 97,000 Derbyshire Council 39,748 CTC Theatre 125,000 Derwentside Council 25,600 Cubbit Artists 51,050 Design Initiative Liverpool and Manchester 62,076 Cube 33,900 Developing Audiences in the North 73,682 Cultural Co-operation 110,000 Devon Guild of Craftsmen 29,000 Culture Company 25,420 Digital Guild 30,000 Cumbria Council 70,478 Dodgy Clutch 85,000 Customs House 74,723 Donmar Warehouse 267,693 D Doo Cot 95,370 Daily Life 28,662 Dorset Dance Forum 33,000 Dance 4 224,550 Dot to Dot 27,100 Dance Agency Cornwall 65,811 Drake Music Project – West Midlands 57,000 Dance City Trust 265,493 Drum FM 25,000 Dance Consortium 39,500 Drum, The Dance East 293,119 (Newtown Cultural Project) 327,132 Dance Initiative Greater Manchester 51,000 Duckie 55,200 Dance North West 97,179 Dukes Playhouse 340,000 Dance Services 56,306 Durham City Arts 62,585 Dance South West 67,310 Durham Council 50,594 Dance UK 159,176 Durian Publications 34,024 Dance Umbrella 409,300 Dv8 Physical Theatre 297,000 Dance United 69,540 E Dancefest 35,450 Early Music Network 117,199 DanceXchange 174,800 Easington Council 29,741 Darlington Council 116,380 East London and City Dartington Hall Trust 35,000 Mental Health Trust 30,000 Dartington International East London Dance 114,470 Summer School 37,500 East Midlands Afro Caribbean Arts 63,739

Arts Council England annual review grant-in-aid accounts 2002/03 73 Grants awarded 2002/03 continued

£ £ East Riding of Yorkshire Council 95,000 First Site 132,115 Eastern Angles 195,864 Focal Point Gallery 66,500 Eastern Arts Publishing 35,000 Folk Arts Network 25,000 Eastern Orchestral Board 465,124 Folk South West 50,000 Eastern Roots Club 40,500 Folly Gallery 26,256 Eastern Touring Agency 320,213 Forced Entertainment 174,000 Eastside 64,542 Forest Forge Theatre Company 73,100 Eden Arts Trust 26,727 Forkbeard Fantasy Theatre Company 160,000 Education Through Art 83,550 Forma Arts and Media Emergency Exit Arts 56,867 (David Metcalfe Associates) 161,600 Emmedia 43,865 Foundation for Art and Engage 114,800 Creative Technology 665,200 English Heritage 80,000 Foundation for Community Dance 149,758 English National Ballet 5,085,027 Foursight Theatre Company 46,714 English National Opera 14,006,552 Frantic Assembly 55,000 English Stage Company 1,680,414 Full Circle Arts 91,168 English Touring Opera 1,029,493 Future Physical 272,500 English Touring Theatre 647,650 Futuretense 29,902 Enitharmon Press 41,200 G Nicola Epps 89,000 Gardner Arts Centre 218,566 Essexdance 103,127 Gasworks Gallery 82,000 Ex Cathedra 26,780 Gate Theatre 81,090 Exeter Pheonix 33,800 Gateshead Council 64,890 F Generator North East 108,695 Fabrica 69,080 Gig Right UK 40,000 Farnham Maltings Association 38,000 Gloucestershire Dance! 36,838 Faulty Optic, Theatre of Animation 40,000 Gloucestershire Everyman Theatre 376,760 Fecund Theatre 27,100 Glyndebourne Productions 1,047,970 Federation of Worker Writers Golden Jubilee Weekend Trust 30,000 and Community Publishers 39,034 Corrine Gotch 34,754 Fevered Sleep 28,645 Graeae Theatre Company 281,211 Fierce Earth 35,670 Grand Union Music Theatre 35,550 Fillum Screen Agency 37,500 Great Georges Project (The Blackie) 54,075 Film and Video Umbrella 144,500 Green Room 197,756 Film Council 75,000 Greenwich and Docklands Festivals 50,000 Finetake 110,000 Greenwich Dance Agency 126,562 Firebird Trust 46,610 Greenwich Theatre 60,000 First Movement 50,625 Grizedale Arts 101,850

74 Arts Council England annual review grant-in-aid accounts 2002/03 Grants awarded 2002/03 continued

£ £ H Independent Theatre Council 65,000 Hackney Council 30,000 inIVA (Institute of Hackney Empire 182,529 International Visual Arts) 639,051 Half Moon Young People’s Theatre 147,088 Inner City Music 83,981 Hall for Cornwall 50,000 Inpress 70,000 Hallé Concerts Society 1,620,840 Institute of Contemporary Arts 1,067,648 Halton Council 38,000 Institute of Visual Culture 43,225 Hampshire Council 96,000 Interchange Trust 114,122 Hampshire Dance Trust 28,580 International Workshop Festival 89,027 Hampstead Theatre 549,394 Interplay Theatre Trust 65,800 Harlow Council 34,000 IOU 145,000 Harrogate Theatre 340,000 Irie! Dance Theatre 25,000 Hartlepool Council 38,883 Isis/Digitalis 54,250 Matthew Hawkins 30,000 It’s Queer up North 62,787 Healing Arts: Isle of Wight 30,300 J Heart ’n Soul 128,392 Jabadao 52,000 Helix Arts 74,680 Jack Drum Arts 50,649 High Peak Community Arts 30,000 Jacksons Lane Community Centre 141,185 Kazuko Hohki 33,770 Jazz Action 91,359 Hoipolloi Theatre Company 71,218 Jazz Development Trust 40,000 Hope Street 31,290 Jazz Services 250,000 Horse and Bamboo Theatre John Hansard Gallery 211,800 Company (Little World) 77,609 Joyful Noise 30,000 Hoxton Hall 60,000 Jubilee Arts 107,634 Huddersfield Contemporary Junction Arts 58,995 Music Festival 154,200 Junction CDC 368,682 Hull Time Based Arts 155,000 K Hull Truck Theatre Company 300,000 Kadam 39,999 Hyperjam Ltd/club 21st Century 25,000 Kala Sangam 54,000 I Kali Theatre Company 110,500 Ikon Gallery 763,958 Kaos Theatre UK 122,800 Ilkley Literature Festival 26,300 Kazzum Arts Project 55,000 Impressions Gallery 106,380 Kettle’s Yard 131,324 Improbable Theatre 105,000 Suhail Khan 25,000 Improvement and Edward King 62,746 Development Agency 25,944 King’s College London 36,555 Independance 56,200 Kings Lynn Arts Centre 40,943 Independent Dance 34,800 Kingston-upon-Hull Council 36,250

Arts Council England annual review grant-in-aid accounts 2002/03 75 Grants awarded 2002/03 continued

£ £ Kirklees Council 173,150 London Institute 70,000 Kirklees Theatre Trust 55,400 London International Jazz Festival 80,000 Kneehigh Theatre 178,970 London International Mime Festival 106,244 Knowsley Council 35,000 London Magazine 28,300 Komedia Productions 90,000 London Mozart Players 36,750 Kuumba 65,000 London Musicians’ Collective 130,000 L London Philharmonic 1,570,400 Lapidus 29,150 London Print Studio 170,350 Lawrence Batley Theatre 74,000 London Printworks Trust 60,500 LEAP (London Education London Symphony Orchestra 1,610,000 Arts Partnership) 51,000 Lovebytes 75,430 Leeds Council 34,882 Lowry Centre 60,000 Leeds Metropolitan University 57,200 Ludlow Assembly Rooms 54,355 Leicester Theatre Trust 1,270,445 Ludus Dance Agency 198,268 LIFT (London International Luton Carnival and Arts Festival of Theatre) 450,707 Development Trust 60,000 Lighthouse Media Centre 46,325 Luton Council 60,000 Lime 28,197 Lux 165,000 Limpopo Club 30,000 LYAN (London Youth Arts Network) 43,000 Lincoln Council 26,100 Lyric Theatre 634,268 Lincolnshire Council 69,063 M Literary Consultancy 35,000 M6 Theatre Company 89,876 Little Angel Theatre 66,700 mac (Midlands Arts Centre) 442,387 Littoral 28,886 Mactwo Sound 49,000 Live and Local 66,288 Magna Enterprises 35,000 Live Art Development Agency 203,044 Mahogany Community Ventures 48,395 Live Music Now! 42,023 Make 85,068 Live Theatre Company 285,250 Making Music (National Liverpool Biennial of Federation of Music Societies) 313,386 Contemporary Art 83,800 Maltings Arts Centre 50,260 Liverpool Council 47,000 Mama Quillo 30,000 Liverpool Everyman and Playhouse 1,115,000 Manchester Camerata 88,885 Locus+ 161,460 Manchester College Pit Fong Loh 30,000 of Arts and Technology 25,000 London Bubble Theatre Company 365,763 Manchester Council 50,000 London Disability Arts Forum 83,830 Manchester International Arts 42,367 London Fieldworks 41,945 Mannafest 25,000 London Film and Video Margate Theatre Royal 35,000 Development Agency 182,000

76 Arts Council England annual review grant-in-aid accounts 2002/03 Grants awarded 2002/03 continued

£ £ Mark Baldwin Dance Company 30,000 Moving East Centre for Dance 25,000 Marketing: Arts 108,788 Moving Finger 64,190 Bertel Martin 25,000 Multi Asian Arts 36,288 Matthews Millman 45,000 Music in the Round 28,600 Matt’s Gallery 107,700 N MAX (Marketing the Arts Nash Concert Society 42,000 in Oxfordshire) 45,500 Natalie Steed Productions 40,000 Media Arts Projects 31,820 National Artists Association 80,000 Melton Council 27,248 National Association for Greta Mendez 30,000 Literature Development 30,160 Mercury Theatre, Colchester 659,984 National Association of Merlin Theatre 38,500 Writers in Education 57,000 Merseyside Dance Initiative 66,092 National Association of Youth Theatres 34,210 Merseyside Play Action Council 33,726 National Centre for Early Music 30,000 Merseyside Young People’s Theatre Company 75,484 National Disability Arts Forum 96,489 Met Arts Centre 63,595 National Glass Centre 60,983 Metal 50,000 National Opera Studio 120,000 Metamute 32,180 National Rural Touring Forum 29,050 Metier 120,000 National Society for Education in Art and Design 70,000 Metropole Arts Centre 30,000 National Youth Jazz Orchestra 26,265 Mid Pennine Arts 146,395 Network, The 54,635 Middlesbrough Art Galleries 35,000 New Art Gallery Walsall 536,519 Middlesbrough Council 43,303 New Breed 30,463 Midi Music 90,000 New Contemporaries (1988) 58,000 MidNAG 45,176 New Peckham Varieties 79,371 Mid-West 51,134 New Perspectives 244,415 Milap Festival Trust 39,000 New Vic Theatre 696,771 Mill Arts Centre 26,900 New Vic Workshop 26,290 Hazel Miller 66,000 New Wolsey Theatre Co 602,750 Milton Keynes City Orchestra 28,900 New Work Network 54,100 Milton Keynes Gallery 179,100 New Writing North 153,633 Mind the Gap 72,500 Newark and Sherwood Council 28,960 Modern Art Oxford 694,200 Newcastle Council 87,770 Mongrel 30,000 Newcastle Gateshead Initiative 56,305 More Music In Morecambe 35,189 Newcastle Playhouse Trust 42,000 Moti Roti Company 137,585 Newlyn Art Gallery 93,000 Motionhouse Dance Theatre 119,277 Nigel Charnock and Company 30,000

Arts Council England annual review grant-in-aid accounts 2002/03 77 Grants awarded 2002/03 continued

£ £ Nitro 215,723 O NMC Recordings 80,000 Ocean Music Trust 55,000 Norden Farm Centre Trust 162,950 Oily Cart Company 174,783 Norfolk and Norwich Festival 40,314 Oldham Coliseum 343,450 North Country Theatre 25,000 Onedotzero 115,000 North Kesteven Council 40,995 Open Eye Gallery 128,487 North Lincolnshire Council 25,120 Open Theatre Company 31,218 North Music Trust 2,088,141 Opera North 6,815,162 North Tyneside Council 67,080 Orange Tree Theatre 242,353 North West Disability Arts Forum 90,205 Orchestra of St John’s 47,250 North West Playwrights 44,862 Orchestra of the Age of Enlightenment 45,000 North Yorkshire Council 28,500 Out of Joint 454,346 Northampton Theatres Trust 456,440 OVA 25,000 Northamptonshire Council 50,936 Oval House (Christ Church Northcott Theatre 348,360 (Oxford) United Colleges) 209,443 Northern Architecture 37,500 Overtones 210,000 Northern Ballet Theatre 1,685,469 Oxford Contemporary Music 65,800 Northern Broadsides 120,000 Oxford Council 80,000 Northern Cultural Skill Partnership 69,790 Oxford House 51,927 Northern Disability Arts Forum 67,170 Oxford Playhouse 157,950 Northern Film and Media 35,000 Oxford Stage Company 583,625 Northern Gallery for Oxfordshire Touring Contemporary Arts 97,727 Theatre Company 132,300 Northern Print 83,966 P Northern Stage Company 1,169,595 Pacitti Company 55,000 Northumbria, University of 49,000 Paddington Arts 47,636 Norwich Arts Centre 77,055 Paines Plough 202,000 Norwich Gallery 117,027 Palace Theatre, Watford 375,741 Norwich Puppet Theatre 50,923 Pallant House Gallery Trust 25,000 Norwich School of Art and Design 40,500 Pavilion 32,445 Notting Hill Carnival Trust 140,000 Pegasus Theatre 260,600 Nottingham Council 48,103 Pentabus Arts 148,728 Nottingham Theatre Trust 1,088,242 People Show 117,000 Nottingham Trent University 113,300 Performing Arts Labs 25,700 Nottinghamshire Council 57,993 Peterborough Challenge 36,000 Now Festival 71,430 Peterloo Poets 40,000 NTC Touring Theatre Company 177,700 Philharmonia Orchestra 1,572,400 Nuffield Theatre 472,180 Phoenix Arts 48,055

78 Arts Council England annual review grant-in-aid accounts 2002/03 Grants awarded 2002/03 continued

£ £ Phoenix Dance Company 364,100 Queen’s Theatre 179,560 Photofusion 115,498 Quicksilver (Theatre of Thelema) 30,675 Photographers’ Gallery 617,561 Quondam 37,000 Photography Workshop (Edinburgh) 27,000 R Photoworks 199,000 Rambert Dance Company 1,608,319 Picture House Centre for Photography 42,231 Random Dance Company 178,785 Pilot Theatre Company 170,000 Raw Material Music and Place, The Media Education 91,950 (Contemporary Dance Trust) 172,822 Reading Agency 343,492 Platform Gallery 29,750 Reading Council 120,615 Play Train 25,750 Red Ladder Theatre Company 217,606 Plymouth Arts Centre 80,274 Red Room 56,000 Poems on the Underground 25,038 Red Shift Theatre Company 162,616 Poetry Book Society 105,288 Redcar and Cleveland Council 29,876 Poetry Can 25,000 Rejects Revenge 35,024 Poetry School 28,256 Ricochet Dance Company 160,000 Poetry Society 286,156 Riverside Studios 142,695 Point Dance and Arts Centre 37,000 RJC Dance Productions 90,000 Polka Theatre for Children 369,183 Roadmender 103,000 Poole Arts Trust 160,275 Roses Theatre 25,000 Pop-Up Theatre 162,610 Ross-on-Wye International Festival 30,000 Prema Arts Centre 55,100 Royal Academy of Dramatic Art 25,000 Prescap 33,310 Royal College of Art 70,000 Preston Council 40,750 Royal Exchange Theatre Company 1,848,250 Princes Trust 70,000 Royal Liverpool Proper Job Theatre Projects 77,000 Philharmonic Society 1,620,840 Psappha Contemporary Royal National Theatre Board 14,331,685 Music Ensemble 64,666 Royal Opera House Public Art Forum 90,000 (Covent Garden) 21,121,000 Public Art West Midlands 42,436 Royal Philharmonic Orchestra 381,776 Public Arts 86,250 Royal Shakespeare Company 12,800,937 Publishers Consortium 30,317 Ruby Associates 60,000 Push 55,000 Rural Arts East 108,472 PVA 49,500 Rural Arts North Yorkshire 44,300 Q Ryedale Council 50,000 Q Arts 105,500 S Quarks and Chaos Partnership 25,000 Sadler’s Wells Trust 1,357,500 Quay Arts Centre 66,400 Salamanda Tandem 58,855 Queen’s Hall Arts Centre 45,077 Salisbury Arts Centre 81,970

Arts Council England annual review grant-in-aid accounts 2002/03 79 Grants awarded 2002/03 continued

£ £ Salisbury Festival 138,600 Society of Chief Librarians 79,850 Salisbury Playhouse 514,200 Soft Touch 35,581 Same Sky 75,000 Soho Theatre Company 471,479 SAMPAD 177,187 Somerset Dance Connections 28,000 Satellites Community Celebrations Sonic Arts Network 125,000 on behalf of Watershed project 105,000 Sound It Out 56,758 sates.org 72,000 Sound Sense 148,675 Scarlet Theatre Company 55,000 South Bank Board 16,131,886 Scottish Ballet 25,000 South Bedfordshire Council 40,000 Scottish Opera 386,958 South Connections Carnival Seachange 167,696 Costume Band 30,930 Second Wave 38,016 South East Dance 141,750 Sedgefield Council 25,090 South East Music Schemes 47,500 seeing the light 56,732 South Hill Park Arts Centre 175,050 Selby Council 27,000 South Holland Arts Centre 45,760 Serious Events 240,700 South West Arts Marketing 65,000 Serpentine Gallery 591,550 South West Screen 38,867 Shape London 123,650 Southend-on-Sea Council 159,353 Shared Experience 250,000 Southern England Touring Agency 60,000 Sheffield Council 54,200 Southwark Playhouse Sheffield Theatres Trust 950,000 Theatre Company 32,168 Shinkansen 58,584 Spacex Gallery 90,500 Shisha 132,295 Spare Tyre Theatre Company 60,000 Shobana Jeyasingh Dance Company 278,342 Sphinx Theatre Company 170,277 Showhow 182,000 Spike Island 50,500 Showroom Gallery 87,650 Spitalfields Festival 30,000 Side Gallery 45,458 Sponsors Club for Arts and Business 25,000 Sinfonia 21 52,500 Spread The Word 66,820 Sinfonietta Productions 466,200 Square Chapel Centre for the Arts 30,000 Siobhan Davies Dance Company 356,290 St Ives International 30,000 Site Gallery 102,100 Stables, The 72,400 Sixth Sense Theatre Company 36,700 Stagecoach 29,504 Skyscraper Digital Publishing 84,000 Stagetext 48,000 Slough Council 70,181 Stamford Arts Centre 31,825 SMART (Marketing the Arts around Surrey) 76,000 Stans Cafe 30,000 SNAP People’s Theatre 41,723 Statement 30,000 Society for the Promotion Station House Opera 55,000 of New Music 75,000 Stephen Joseph Theatre 551,000

80 Arts Council England annual review grant-in-aid accounts 2002/03 Grants awarded 2002/03 continued

£ £ Gary Stevens 25,584 Theatre Rites 90,000 Stockton-on-Tees Council 62,479 Theatre Royal, Bury St Edmunds 114,045 Stoke-on-Trent Festival 26,522 Theatre Royal, Newcastle 43,260 Stour Valley Art Project 43,500 Theatre Royal, Plymouth 982,920 Strange Cargo Arts Company 32,000 Theatre Royal, Stratford East Stratford Circus (Solway Arts) 30,000 (Pioneer Theatres) 612,181 Streets Alive Theatre Company 45,708 Theatre Royal, York 407,800 Studio 3 Arts 43,542 Théâtre Sans Frontières 147,600 Sulphurculture 25,890 Theatre Venture 28,554 Sunderland Council 101,168 Third Angel 25,000 Sunderland Empire 27,038 Thurrock Council 111,749 Survivors’ Poetry 103,800 Tiata Fahodzi 105,000 Sussex Arts Marketing 40,000 Tiebreak Touring Theatre 62,465 Swindon Dance 193,200 Timebank 40,000 Synergy Theatre Project 34,600 TIPP (Theatre in Prisons T and Probation) 64,597 Tabernacle Trust 60,000 Told By An Idiot 55,000 Take Art 37,500 Tomorrow’s Warriors 55,000 Talawa Theatre Company 351,937 Total Theatre Network 48,000 Talking Birds 30,000 Towner Art Gallery and Museum 57,100 Tamasha Theatre Company 216,925 TrAce 30,900 TAPS (Traditional Arts Projects) 50,400 Trading Faces 60,300 Tara Arts Group 285,024 Travelling Light Theatre 51,802 Team, The 55,196 Trestle Theatre Company 201,374 Technology Colleges Trust 30,500 Triangle Arts Trust 105,500 Teesdale Council 34,656 Tricycle Theatre Company 536,401 Mary Tennant 46,775 Trinity Arts Centre, Gainsborough 49,400 Thames Festival Trust 60,481 Trinity Arts Centre, Tunbridge Wells 41,425 Theatre Absolute 40,000 Turner Centre 50,000 Theatre Alibi 155,500 Turner Sims Concert Hall 25,100 Theatre by the Lake 263,000 Tutti Frutti Productions 31,450 Theatre Centre 339,573 Tyne and Wear Museums 40,000 Theatre Company Blah Blah Blah! 64,290 Tynedale Council/Kielder Partnership 32,100 Theatre Cornwall 26,520 U Theatre de Complicite Education 245,000 UK Arts International 45,000 Theatre Melange 47,500 Unicorn Theatre for Children Theatre of Thelema 184,223 (Caryl Jenner Productions) 550,856 Theatre Resource 62,550 Union Dance 198,521

Arts Council England annual review grant-in-aid accounts 2002/03 81 Grants awarded 2002/03 continued

£ £ Unit for the Arts and Offenders 53,140 Windows Project 65,294 Unity Theatre 120,622 Wingfield Arts and Music 36,730 Unknown Public 39,000 Woking Dance Festival 43,350 Urban Development 30,000 Wolsey Gallery 31,218 Urban Strawberry Lunch 28,941 Wolverhampton Art Gallery 32,136 Usher Gallery 44,610 Wolverhampton Council 26,000 V Worcester Swan Theatre 179,262 Visions 40,500 Wordsworth Trust 65,050 Visiting Arts 222,476 Wren Trust 33,000 Visual Arts and Galleries Association 75,000 Writers in Prison Network 98,100 Viva 125,555 Wysing Arts 55,000 Vivid 60,100 X Vocaleyes 107,990 X.trax Arts 181,049 Voluntary Arts Network 68,110 Y W Yellow Earth Theatre 106,000 Wakefield Theatre Royal Yolande Snaith Theatredance 105,500 and Opera House 36,400 York Early Music Festival 37,000 Warrington Council 34,500 Yorkshire Art Circus 58,200 Warwick Arts Centre 488,182 Yorkshire Artspace Society 60,880 Watermans Arts Centre 263,655 Yorkshire Dance 167,730 Watermill Theatre 115,200 Yorkshire Sculpture Park 620,000 Watershed Media Centre 183,560 Yorkshire Women Theatre 36,085 Waygood Gallery and Studio 44,303 Young Vic Company 800,915 Welfare State Youth Work Unit 31,000 (Galactic Smallholdings) 234,297 Yvonne Arnaud Theatre 238,000 Welsh National Opera 5,360,097 Z West London Literature Zap Art 27,500 Development Organisation 47,632 Zion Arts Centre 40,000 West Midlands Disability Arts Forum 32,445 West Yorkshire Playhouse Grants under £25,000 17,543,809 (Leeds Theatre Trust) 1,107,650 Sub-total 261,173,538 Whitechapel Art Gallery 743,578 Whitewood and Fleming 35,000 Plus: grants already reported Wigmore Hall 280,000 in 2001/02 subject to a change Wilson + Wilson Company 36,400 in accounting policy 156,000 Wiltshire Music Centre Trust 54,100 Wimbledon School of Art 25,000 Total grants awarded 261,329,538 Wimbledon Studio Theatre 30,000

82 Arts Council England annual review grant-in-aid accounts 2002/03 lottery accounts

Photo information: Laban is a world to the cultural, physical and social leader in contemporary dance artist regeneration of the area. It is the largest training. Laban’s building, which opened purpose-built contemporary dance space in February 2003, is the new lottery- in the world, and the first new project funded building for contemporary in Britain to be completely designed by dance in Deptford, south east London. Herzog & de Meuron, best known for This has made a major contribution their acclaimed designs for Tate Modern. The funding included £14 million from us. In October 2003, Laban won the RIBA Stirling Prize, awarded annually for the building that has made the greatest contribution to British architecture in the past year. Photo credit: Merlin Hendy and Martyn Rose Arts Council England lottery distribution accounts 1 April 2002–31 March 2003 Foreword

Introduction The Arts Council of England, trading as to distribute funds from the National Lottery Arts Council England, is a registered charity, by the National Lottery etc Act 1993 (as charity registration number 1036733. It was amended by the National Lottery Act 1998). established by Royal Charter on 1 April 1994, taking over those responsibilities in England The Council works at arm’s length from previously discharged by the Arts Council of Government and has the status of a non- Great Britain. The objectives of the Council departmental public body. As such it is as stated in the Royal Charter, its governing regulated in accordance with a Financial document, are to develop and improve the Memorandum issued by the Secretary of knowledge, understanding and practice of State. Accounts for grant-in-aid and lottery the arts and to increase accessibility of the are prepared separately in accordance with arts to the public. To this end, it makes Accounts Directions also issued by the grants to arts organisations and engages Secretary of State. in other activities on behalf of the sector. Internal structure Arts Council England was granted a On 1 April 2002, the 11 organisations which Supplemental Charter on 31 May 2002. formerly made up the arts funding system The purpose of this Supplemental Charter in England, consisting of 10 Regional Arts was ‘to give effect to new arrangements for Boards and The Arts Council of England, regionalisation of its structure and activities’. merged to become one legal entity. Arts There were no changes to the objects of the Council England is now the trading name Council and the main changes relate to the of this new organisation. The organisation Council’s powers to establish and to delegate has nine regional offices, matching the powers and functions to regional councils. Government’s regional boundaries, and a The charter sets out the new composition national office. Each region has a council of the Council, which includes the chairs and the 15-strong national Council (details of the regional councils. below) includes the chair of each of the new regional councils. The national Council The address of the principal office is met in formal session five times during the 14 Great Peter Street, London SW1P 3NQ. year and monitored the work of the chief executive and staff. In addition a number of The Council receives grant-in-aid from the advisory panels, while carrying no executive Department for Culture, Media and Sport authority, played an important role by (DCMS) and is one of the bodies designated providing advice from the arts constituency.

84 Arts Council England annual review lottery accounts 2002/03 Foreword continued

The Executive Board is made up of the Chief Executive, Peter Hewitt, nine regional executive directors and four executive directors at the national office for arts, development, external relations, and finance and operations respectively.

The key objectives of the new organisation as published in Ambitions for the arts in February 2003 are to: • prioritise individual artists • work with funded arts organisations to help them thrive rather than just survive • place cultural diversity at the heart of our work • prioritise young people and Creative Partnerships • maximise growth in the arts

Arts Council England annual review lottery accounts 2002/03 85 Foreword continued

Membership of Council

The members of the Arts Council are its trustees. During the year 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 January 2001 David Brierley CBE November 1997 May 2002 Deborah Bull CBE June 1998 May 2002 Emmanuel Cooper September 2000 May 2002 Anish Kapoor June 1998 May 2002 Joanna MacGregor June 1998 May 2002 Sir 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

86 Arts Council England annual review lottery accounts 2002/03 Foreword continued

On 27 May 2002 membership of the new national Council for Arts Council England was announced. The new national Council consists of up to 15 members, nine of whom 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 North East Deborah Grubb South East Sue Woodford Hollick London Professor Alan Livingston South West Stephen Lowe East Midlands Joanna MacGregor * Sir Brian McMaster CBE Elsie Owusu OBE William Sieghart Professor Stuart Timperley East Dorothy Wilson West Midlands * Joanna MacGregor resigned from the Council on 14 June 2003.

Dorothy Wilson is chair of the Audit Committee. Sir Norman Adsetts, Paul Collard and Professor Alan Livingston served as members of the committee together with David Brierley as a co-opted member.

Arts Council England annual review lottery accounts 2002/03 87 Foreword continued

Chief Executive, Chairman and Throughout the year Arts Council England Council members appointment awarded grants in support of the arts Gerry Robinson was appointed as Chairman under a number of separate schemes of the Arts Council on 1 May 1998 for an and programmes. These included the initial term of three years, and re-appointed first round of the Arts Capital Programme, for a further three-year term on 23 January the Stabilisation and Recovery Programmes, 2001. The Chief Executive, Peter Hewitt, was the National Touring Programme and the appointed by the Council on 9 March 1998 Regional Arts Lottery Programme. with the approval of the Secretary of State for Culture, Media and Sport. His contract 2002/03 was an interim year, coming expires on 31 January 2005. between the formal completion of the reorganisation in April 2002 and the Council members are appointed by the development of a new staff structure and Secretary of State for Culture, Media and ways of working, which came into effect Sport for up to four years, and are eligible in April 2003. Staff consultation took place for re-appointment for a further term of during summer 2002, following which the up to four years. new structure was confirmed. New simplified funding programmes were also developed Review of the year during the year, and announced in February New grant commitments (offers made and 2003. These came into operation in April accepted) in the year totalled £120.5 million. 2003. Two of these programmes, Grants At year end a total of £186.4 million for the arts – organisations and Grants for accepted grant commitments remained the arts – national touring, are funded outstanding and awaiting payment together through lottery. with £51.4 million commitments offered but not accepted. This compares with a balance It is anticipated that the reorganisation will in the National Lottery Distribution Fund, deliver significant savings in administration plus bank balances, of £254.7 million. costs. These savings will be delivered in The Arts Council monitors levels of lottery stages. Most will be achieved in 2003/04, income closely, and the level of outstanding following implementation of the new grant commitments is considered prudent, structure. However, some savings cannot be based on past and projected income flows. realised until transitional issues have been worked through, for example, rationalisation During 2002/03 the Council incurred costs of IT systems and relocation of offices. of £5.2 million on restructuring costs. £2.2 million of this was charged to lottery Further details of the activities and policies of in these accounts, with the balance the Arts Council are included in the National charged to the grant-in-aid accounts. Lottery Report 2002/03.

88 Arts Council England annual review lottery accounts 2002/03 Foreword continued

Employment and training policies Following the merger on 1 April 2002 and staff participation a new national forum for managing issues The Arts Council is committed to creating with the unions has been put in place. The a working environment that treats people National Joint Consultative and Negotiating with fairness and respect and is free from Committee (NJCNC) has a mandate to discrimination, harassment and bullying. handle all core pay, terms and conditions of Policies and procedures are geared towards employment, and corporate HR policies and eliminating direct and indirect discrimination procedures across the whole organisation. and supporting employees in reaching their The NJCNC is supported by Local Joint full potential. Consultative and Negotiating Committees based in each of the 10 workplaces. The Arts Council’s training and development programmes are designed to encourage The Arts Council seeks to ensure that the and support all employees in improving requirements of health and safety legislation performance. In recognition of the are met in the workplace. Health and safety organisation’s positive approach to the issues of general concern are discussed with recruitment and management of staff Amicus and Unison. with disabilities, the Arts Council has been awarded the ‘Two Ticks’ symbol Other matters by The Employment Services. From 1 April 2003 the Co-operative Bank of 78–80 Corn Hill, London EC3V 3NJ acted 11.3% of staff classify themselves as Black, as the banker for Arts Council England. Asian or Chinese, and 2.5% of staff classify The Comptroller and Auditor General of themselves as disabled. 157–197 Buckingham Palace Road, Victoria, London SW1W 9SP is auditor to the The Arts Council has put in place arrangements Arts Council. to promote effective consultation and communication with all staff. Executive Board The Council maintains a register of interests and Council activities are disseminated through of its members, which is available for public a system of team briefing, supplemented from inspection by appointment at the Council’s time to time by office and directorate meetings. Great Peter Street address. A new staff intranet was launched in February 2003. More formally, during 2002/03 the Arts The Council attempts to abide by the Better Council recognised the trade unions Amicus Payment Practice Code, and in particular to and Unison for consultation and collective pay bills in accordance with contract. Invoices bargaining, and established appropriate are normally settled within our suppliers’ consultative machinery to support this. standard terms, usually 30 days. In 2002/03 74% of undisputed invoices were paid within a 30-day period.

Arts Council England annual review lottery accounts 2002/03 89 Foreword continued

Statement of Council’s and The Accounting Officer for the Department Chief Executive’s responsibilities for Culture, Media and Sport has designated Under the National Lottery etc Act 1993 the Chief Executive as Accounting Officer (as amended by the National Lottery Act for the Council. The relevant responsibilities 1998) the Council is required to prepare as Accounting Officer, including the a statement of accounts for the financial responsibility for the propriety and regularity period in the form and on the basis directed of the finances for which the Chief Executive by the Secretary of State for Culture, Media is answerable and for the keeping of proper and Sport, with the consent of HM Treasury. records, are set out in the Non-Departmental The accounts are to be prepared on an Public Bodies’ Accounting Officers’ accruals basis and to show a true and fair Memorandum, issued by HM Treasury. view of the Council’s state of affairs at the year end and of its income and expenditure Peter Hewitt and cash flows for the financial year. The Chief Executive Council is required to: 25 November 2003 • observe the Accounts Direction* issued by the Secretary of State, which sets out Gerry Robinson accounting and disclosure requirements, Chairman and apply suitable accounting policies 25 November 2003 on a consistent basis • make judgements and estimates on *a copy of the Accounts Direction is a reasonable basis available from the Accounting Officer, • state whether applicable accounting Arts Council England, 14 Great Peter Street, standards have been followed, and London SW1P 3NQ. disclose and explain any material departures in the financial statements • prepare the financial statements on the going concern basis, unless it is inappropriate to presume that the Council will continue in operation

90 Arts Council England annual review lottery accounts 2002/03 Statement on internal control

1 Scope of responsibility 3 Capacity to handle risk, and the risk As Accounting Officer and representative and control framework of the trustees, we acknowledge our 2002/03 was a year of material change for responsibility for ensuring a sound system Arts Council England. The former Arts Council of internal control that: merged with the 10 formerly independent • supports the achievement of Arts Council Regional Arts Boards with effect from 1 April England’s objectives 2002. A Supplemental Charter was granted • safeguards the public funds and assets to allow for the new arrangements. A new for which we are responsible, and in national and nine new regional councils were accordance with the responsibilities appointed, and new terms of reference and assigned to the Accounting Officer in internal frameworks of delegation established. Government Accounting As a result of this a new staffing structure • ensures compliance with the requirements was developed, consulted on and confirmed. This new structure reflected a major delegation of Arts Council England’s Financial of funding decisions and client relationship Memorandum management to a regional level. The staffing structure became effective on 1 April 2003. The system of internal control is designed In addition, several major changes to to manage rather than eliminate the risk operational processes were developed and of failure to achieve these objectives. It can introduced, including the development of therefore only provide reasonable and not internal shared services and the wholesale absolute assurance of effectiveness. simplification of grant programmes.

2 The purpose of the system of As a result of this level of change within the internal control organisation, an interim risk management The system of internal control is based on process, maintained and reviewed by the an ongoing process designed to identify the Change Programme Steering Group (a sub principal risks to the achievement of policies, group of Executive Board), was introduced. aims and objectives, to evaluate the nature This concentrated on the change-related and extent of those risks and to manage risks associated with the merger. The process them efficiently, effectively and economically. included: • a documented risk management approach During 2003/04 we are putting the for all the individual change projects in procedures in place necessary to implement progress during 2002/03, requiring a HM Treasury guidance relating to risk separate risk register to be produced and management. This takes account of the time reviewed regularly needed to fully embed the processes, which • summarising the above in a consolidated Arts Council England has agreed should be change risk register which was regularly established, and improve their robustness. reviewed by the Change Programme Steering Group

Arts Council England annual review lottery accounts 2002/03 91 Statement on internal control continued

In addition, Arts Council England had a) A national Council, made up of the established before the merger the following: trustees of Arts Council England, which • a risk management policy, which was has defined responsibilities and a code established during 2001/02 of practice which include: • a risk register consisting of general • strategic planning and control including organisation-wide risks which was approval each year of a corporate plan produced in consultation with senior and approval of the overall budget management and has been reviewed allocation on a three year basis regularly by the steering group • delegation of responsibility for specific matters to the regional councils or In order to ensure full compliance during Arts Council England committees 2003/04 in the area of risk management • accountability for public funds, ensuring Arts Council England plans further work, that Arts Council England conducts its as detailed in section 4. operations economically, efficiently and effectively 4 Review of effectiveness • approval of the annual report and accounts As Accounting Officer and representative • ensuring that Arts Council England fulfils of the trustees, we have responsibility for its obligations as an employer and reviewing the effectiveness of the system complies with all relevant legislation of internal control. Our review of the effectiveness of the system of internal b) An Audit Committee with agreed terms control is informed by the work of the of reference which include: internal auditors and the Executive Board, • the review of the Arts Council’s internal who have responsibility for the development financial statements to ensure they reflect and maintenance of the internal control best practice framework, and comments made by the • the review of the Arts Council’s external external auditors in their management letter financial statements and other reports. We have reviewed the • to consider internal and external audit effectiveness of the system of internal control reports and to review the Arts Council’s and plan to address weaknesses and ensure relationship with its internal and external continuous improvement of the system auditors throughout 2003/04. • to review the effectiveness of the Arts Council’s internal control system, The system of internal control is based including the review of its risk on a framework of regular management management policy and risk register information, administrative procedures • to report to the national Council on including the segregation of duties, and the discharge of the above duties a system of delegation and accountability. Arts Council England has established the following processes:

92 Arts Council England annual review lottery accounts 2002/03 Statement on internal control continued c) An Executive Board and sub group A risk management policy and related structure with defined terms of reference procedures were put in place in January which include: 2001. However, with the creation of the new • to establish the corporate policy on organisation, it was recognised that a full high level issues and to oversee the scale review of risk management procedures implementation of nationally agreed was necessary, given the new organisational policies and plans structure and devolved nature of decision • to receive and monitor financial making. A piece of consultancy work has information relevant to the Arts Council’s been commissioned to advise on this. Revised overall management responsibilities risk management procedures were introduced • to take decisions within delegated powers in October 2003. and to approve further delegation as appropriate A likely additional outcome of the above mentioned review is that the terms of d) An internal audit function which operates reference of the Audit Committee, although to standards defined in the Government compliant with existing guidelines, will be Internal Audit Standards and whose amended to include more specific reference programme of work is agreed and to risk management. monitored by the Audit Committee. The work of the internal auditors is informed A shared finance service was introduced by an analysis of the risk to which the with effect from 1 April 2003. This provides Council is exposed and annual internal a single set of procedures for management audit plans are based on this analysis. accounting, a centralised payroll, a single The analysis of risk and the internal audit financial ledger, and consistent procedures plans are endorsed by the Council’s Audit on authorisation of grant payments and Committee and approved by us. At least purchasing, to ensure consistency of internal annually, the head of internal audit financial control across the organisation. provides a report on internal audit activity in the Council. The report includes the A completely revised monitoring policy head of internal audit’s independent was introduced from September 2003. opinion on the adequacy and effectiveness This will ensure consistency of approach to of the Council’s system of internal control. monitoring regularly funded organisations and early identification of issues. The Arts Council intends to implement the following for the year ended 31 March 2004 Peter Hewitt so it can make a Statement on Internal Control Chief Executive which illustrates that it has established a sound 25 November 2003 system of internal control during 2003/04. Gerry Robinson Chairman 25 November 2003

Arts Council England annual review lottery accounts 2002/03 93 The Certificate and Report of the Comptroller and Auditor General to the Houses of Parliament

I certify that I have audited the financial which govern them. I also report if, in my statements on pages 96 to 113 under the opinion, the Foreword is not consistent with National Lottery etc Act 1993 (as amended the financial statements, if Arts Council by the National Lottery Act 1998). These England has not kept proper accounting financial statements have been prepared records, or if I have not received all the under the historic cost convention and the information and explanations I require for my accounting policies set out on pages 99 audit. I read the other information contained and 100. in the annual review and consider whether it is consistent with the audited financial Respective responsibilities of the statements. I consider the implications for my Council, Chief Executive and Auditor certificate if I become aware of any apparent As described on page 90, the Council and misstatements or material inconsistencies the Chief Executive of Arts Council England with the financial statements. are responsible for the preparation of the financial statements in accordance with the I review whether the statement on pages National Lottery etc Act 1993 (as amended) 91 to 93 reflects Arts Council England’s and directions made by the Secretary of State compliance with HM Treasury’s guidance thereunder and for ensuring the regularity ‘Corporate governance: statement on of financial transactions. The Council and internal control’. I report if it does not meet the Chief Executive are also responsible for the requirements specified by HM Treasury, the preparation of the other contents of or if the statement is misleading or the annual review. My responsibilities, as inconsistent with other information I am independent auditor, are established by aware of from my audit of the financial statute and guided by the Auditing Practices statements. Board and the auditing profession’s ethical guidance. Basis of audit opinion I conducted my audit in accordance with I report my opinion as to whether the United Kingdom Auditing Standards issued financial statements give a true and fair view by the Auditing Practices Board. An audit and are properly prepared in accordance includes examination, on a test basis, of with the National Lottery etc Act 1993 evidence relevant to the amounts, disclosures (as amended) and directions made by the and regularity of financial transactions Secretary of State thereunder, and whether included in the financial statements. It also in all material respects the expenditure and includes an assessment of the significant income have been applied to the purposes estimates and judgements made by the intended by Parliament and the financial Council and the Chief Executive in the transactions conform to the authorities preparation of the financial statements,

94 Arts Council England annual review lottery accounts 2002/03 The Certificate and Report of the Comptroller and Auditor General to the Houses of Parliament continued and of whether the accounting policies are • in all material respects the expenditure, appropriate to the Council’s circumstances, income and resources have been applied consistently applied and adequately disclosed. to the purposes intended by Parliament and the financial transactions conform I planned and performed my audit so as to to the authorities which govern them. obtain all the information and explanations which I considered necessary in order to I have no observations to make on provide me with sufficient evidence to give these financial statements. reasonable assurance that the financial statements are free from material John Bourn misstatement, whether caused by error, Comptroller and Auditor General or by fraud or other irregularity and that, 28 November 2003 in all material respects, the expenditure and income have been applied to the purposes National Audit Office intended by Parliament and the financial 157–197 Buckingham Palace Road transactions conform to the authorities Victoria, London SW1W 9SP which govern them. In forming my opinion I have also evaluated the overall adequacy of the presentation of information in the The maintenance and integrity of financial statements. Arts Council England’s website is the responsibility of the Accounting Officer. Opinion My work does not involve consideration of In my opinion: these matters and accordingly I accept no • the financial statements give a true and responsibility for any changes that may have fair view of the state of affairs of Arts occurred to the financial statements since Council England’s lottery distribution they were initially presented on the website. activities at 31 March 2003 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

Arts Council England annual review lottery accounts 2002/03 95 Income and expenditure account For the year ended 31 March 2003

As restated 2002/03 2001/02 Note £000s £000s Share of proceeds from the National Lottery Distribution Fund 7 163,147 196,252 Investment returns on the Distribution Fund 7 14,623 13,651 Interest received 552 832 Other income 9 58 Total income 178,331 210,793

Grant commitments made in the year 9 120,455 163,323 Less: Lapsed and revoked commitments 9 (3,133) (8,554) Net grant commitments 117,322 154,769

General expenditure: Staff costs 2 1,737 1,779 Other operating costs 3 5,106 6,313 Costs apportioned from grant-in-aid accounts 18,058 15,375 Total operating costs 24,901 23,467 Total expenditure 142,223 178,236

Net income before exceptional items and notional costs 36,108 32,557

Exceptional items Cost of fundamental reorganisation 21 (2,207) (1,185) Net income after exceptional items before notional costs 33,901 31,372

Notional costs Cost of capital 8 0 (180) Net income after notional costs 33,901 31,192

Reversal of notional costs 0 180 Increase in lottery funds 33,901 31,372

Accumulated funds brought forward 28,181 (3,191) Accumulated funds carried forward 17, 21 62,082 28,181

Arts Council England 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 99 to 113 form part of these accounts.

96 Arts Council England annual review lottery accounts 2002/03 Balance sheet As at 31 March 2003

As restated 31 March 31 March 2003 2002 Note £000s £000s Fixed assets Tangible assets 5 126 198 126 198

Current assets Debtors 6 1,486 2,029 Investments: balance in the National Lottery Distribution Fund 7 245,584 246,347 Cash at bank and in hand 9,103 5,278 256,173 253,654

Creditors: amounts falling due within one year Grant commitments 9 76,191 145,343 Creditors 10 521 1,035 Due to grant-in-aid accounts 7,284 3,270 83,996 149,648

Net current assets 172,177 104,006

Total assets less liabilities 172,303 104,204

Creditors: amounts falling due over one year Grant commitments 9 110,221 76,023 62,082 28,181

Represented by Reserves 17, 21 62,082 28,181 62,082 28,181

The notes on pages 99 to 113 form part of these accounts.

Peter Hewitt, Chief Executive Gerry Robinson, Chairman of Arts Council England 25 November 2003

Arts Council England annual review lottery accounts 2002/03 97 Cash flow statement For the year ended 31 March 2003

As restated 2002/03 2001/02 Note £000s £000s Operating activities Funds received from the National Lottery Distribution Fund 7 178,533 218,287 Other cash receipts 9 58 Grants paid 9 (152,276) (198,563) Cash paid to and on behalf of employees (1,737) (1,790) Other cash payments (18,674) (22,854) Net cash movements relating to exceptional items: (2,207) (1,185) Net cash inflow/(outflow) from operating activities 14 3,648 (6,047)

Returns on investments and servicing of finance Interest received 552 833 Loans repaid by other bodies 6 556 2,600 Loans made to other bodies 6 (931) (1,754) Net cash inflow from returns on investments and servicing of finance 177 1,679

Increase/(decrease) in cash 15 3,825 (4,368)

The notes on pages 99 to 113 form part of these accounts.

98 Arts Council England annual review lottery accounts 2002/03 Notes to the lottery distribution accounts

1 Accounting policies been restated to consolidate all the Regional a) Basis of accounts Arts Board activities, assets and liabilities These accounts have been prepared in for 2001/02 as previously published in their accordance with the revised Accounts annual accounts. Appropriate accounting Direction issued by the Secretary of State policy adjustments have been made to for Culture, Media and Sport in May 2002. bring the Regional Arts Board accounts in They have been prepared in a form directed line with Arts Council England policy, as by the Secretary of State with the consent of disclosed in note 21 of these accounts. HM Treasury in accordance with Section 35(3) of the National Lottery etc Act 1993. They b) Recognition of income and meet the requirements of the Companies expenditure Acts, and of the Statements of Standard All income and expenditure is accounted Accounting Practice/Financial Reporting for on a receivable basis. Standards issued and adopted by the Accounting Standards Board, so far as As required by the Secretary of State, a those requirements are appropriate. distinction is made in respect of lottery grants between ‘hard’ and ‘soft’ commitments. The accounts are prepared on a historic cost A hard commitment exists when the Council basis. The Accounts Direction requires the has made a firm offer of grant which inclusion of fixed assets at their value to (together with appropriate conditions) has the business by reference to current costs. been accepted by the recipient. A soft However, for 2002/03 the values of fixed commitment arises when the Council has assets expressed in current cost terms are agreed in principle to fund a scheme and not materially different to historic costs, made an offer, but the offer and associated and so fixed assets are shown at historic conditions have not been accepted. cost on the balance sheet. Hard commitments are recognised as items Separate accounts have been prepared for of expenditure in the income and expenditure the activities funded from the grant-in-aid, account. Details of soft commitments are in accordance with the directions issued by disclosed in note 9 to the accounts. the Secretary of State. Consolidated accounts have not been prepared. Hard commitments payable within one year of the balance sheet date are recognised In accounting for the merger of Arts Council in the balance sheet as current liabilities. England and the 10 Regional Arts Boards on Those payable more than one year from 1 April 2002, merger accounting has been the balance sheet date are shown as grant used in accordance with FRS6 Acquisitions commitments over one year. and Mergers. The 2001/02 comparatives have

Arts Council England annual review lottery accounts 2002/03 99 Notes to the lottery distribution accounts continued

1 Accounting policies continued f) Pensions c) Depreciation and fixed assets The Arts Council provides a defined benefit Depreciation is provided on all tangible fixed pension scheme for its employees (the Arts assets financed by lottery funds at rates Council Retirement Plan 1994) and is a calculated to write off the cost less estimated participating employer in the West Yorkshire residual value of each asset systematically Pension Fund. However, as multi-employer over its expected useful life as follows: schemes, the Council is unable to identify its • leasehold buildings: the life of the lease share of the underlying assets and liabilities. • equipment, fixtures and fittings: four years The schemes have therefore been accounted • a full year’s depreciation is provided in the for as if they were defined contribution year of an asset’s acquisition, and none schemes, in accordance with FRS17 Retirement in the year of its disposal Benefits, with the costs of the schemes • software costs are written off in full in charged to the statement of financial activities. the year of acquisition g) Apportioned costs d) National Lottery Distribution Fund The Arts Council incurs indirect costs which Balances held in the National Lottery are shared between activities funded from Distribution Fund remain under the grant-in-aid and activities funded from the stewardship of the Secretary of State for National Lottery. The Council is required to Culture, Media and Sport. However, the apportion indirect costs properly between share of these balances attributable to the two activity areas in accordance with Arts Council England is as shown in the good accounting practice. accounts and, at the balance sheet date, has been notified by the Secretary of State for h) Notional costs Culture, Media and Sport as being available The Arts Council is required to calculate a for distribution by Arts Council England in notional cost of capital, which is disclosed respect of current and future commitments. in the Income and Expenditure account. These accounts cover the Lottery Distribution e) Taxation activities of Arts Council England, and only The Arts Council of England is a registered funds from the National Lottery are included charity (No 1036733) and is eligible under the which bear a cost of capital of 0%. In previous Income and Corporation Taxes Act 1988 to years a cost of capital of 6% was charged seek from the Inland Revenue exemption from in the income and expenditure account in taxes on income arising from its charitable arriving at a net incoming/(outgoing) resources objectives. The Inland Revenue has granted figure. This was then added back in the this exemption. Accordingly, no taxation income and expenditure account, and so no has been provided for in these accounts. provision was included on the balance sheet.

100 Arts Council England annual review lottery accounts 2002/03 Notes to the lottery distribution accounts continued

2a) Staff costs and liabilities. The scheme has therefore 2002/03 2001/02 been accounted for as if it were a defined £000s £000s contribution scheme, in accordance with Salaries and wages 1,464 1,481 FRS17 Retirement Benefits. Employer’s national insurance 123 126 Arts Council Retirement Plan The scheme is financed by payments by (1994) 150 172 Arts Council England and employees into 1,737 1,779 a trustee-administered fund independent of Arts Council England’s finances. These Staff costs include £230,000 relating to contributions are invested by a leading fund the ARTIS IT information systems project management company. The net market value (2002: £317,000). of scheme assets at 31 March 2003 was £21,792,000. The average number of employees engaged directly on lottery activities for the year An actuarial valuation of the pension fund ended 31 March 2003 was as follows: takes place every three years. The last valuation was at 1 April 2002. At this date 2002/03 2001/02 the actuarial value of the assets using the Management and operational 41 45 projected unit method was sufficient to cover 87% of the value accrued to members, a deficit of £4,200,000. Following completion 2b) National Council members’ of the 2002 valuation, and on the advice remuneration of the actuary, the employer’s contribution The nine members of national Council who was increased to 15.2% with effect from are also chairs of regional councils each 1 April 2003. received remuneration of £4,000 during 2002/03. The Chairman and remaining The principal long-term assumptions used members of national Council received for the purposes of the actuarial valuation no remuneration during 2002/03. were as follows: Price inflation rate 2.8% 2c) Pensions Rate of pay increases 4.3% Arts Council England is a participating Rate of pension increases 2.8% employer in the Arts Council Retirement Plan (1994) and the West Yorkshire Pension Fund Amounts due to the fund at 31 March 2003 and also contributes to a group personal were £nil (2002: £68,000). pension arrangement as detailed below:

West Yorkshire Pension Fund Arts Council Retirement Plan (1994) Arts Council England is an admitted The scheme is a defined benefit scheme. member of the West Yorkshire Pension Fund. However, because it is a multi-employer The scheme is a defined benefit scheme. scheme, Arts Council England is unable to identify its share of the underlying assets

Arts Council England annual review lottery accounts 2002/03 101 Notes to the lottery distribution accounts continued

2c) Pensions continued Legacy Regional Arts Board pension However, because it is a multi-employer schemes scheme, Arts Council England is unable All active Regional Arts Board pension to identify its share of the underlying assets members with the exception of London Arts and liabilities. The scheme has therefore staff transferred to the West Yorkshire been accounted for as if it were a defined Pension Fund on 1 April 2002. However, contribution scheme, in accordance with their past service remained with the legacy FRS17 Retirement Benefits. pension provider as detailed below:

The net market value of total scheme assets East England Arts Cambridgeshire at 31 March 2003 was £3,709,000,000. County Council East Midlands Arts Nottingham An actuarial valuation of the pension fund County Council takes place every three years. The last Northern Arts Tyne & Wear valuation was at 31 March 2001. At this Pension Fund date the actuarial value of the assets using North West Arts Greater Manchester Pension Fund the projected unit method was sufficient Southern Arts Hampshire to cover 107% of the value accrued to Pensions Trust members. From 1 April 2003 employer South East Arts Surrey County Council contributions were set at 15%. South West Arts Devon County Council The principal long-term assumptions used West Midlands Arts Staffordshire County Council for the purposes of the actuarial valuation Yorkshire Arts Remained in West were as follows: Yorkshire Pension Fund Rate of interest 6.5% Rate of pay increases 4.0% Arts Council England is responsible for Rate of pension increases 2.5% meeting any further liabilities relating to Amounts due to the fund at 31 March 2003 Regional Arts Board employees which arise were £nil. in respect of these funds. At the date of signing these accounts two liabilities had Axa Sun Life been settled and negotiations are under way Arts Council England contributes to a group with one other pension scheme. We are still personal pension arrangement in respect awaiting clarification from the other pension of some London office employees. All schemes as to whether there is a further contributions are charged to the income liability to pay. Due to the uncertainty of the and expenditure account as they arise. amounts involved in these potential liabilities it has not been possible to provide for them in these accounts.

102 Arts Council England annual review lottery accounts 2002/03 Notes to the lottery distribution accounts continued

2d) Executive directors’ remuneration The remuneration of the executive directors of Arts Council England for the year ended 31 March 2003 was as follows:

Total Total Benefits remuneration remuneration Salary Pension in kind Bonus 2002/03 2001/02 £000s £000s £000s £000s £000s £000s Peter Hewitt (Chief Executive) 121 13 0 12 146 130 Wendy Andrews (Communications) 73 10 0 0 83 86 Nick Capaldi (South West) 50 6 0 0 56 n/a Andy Carver (Yorkshire) 55 8 0 0 63 n/a Andrew Dixon (North East) 64 10 0 6 80 n/a Laura Dyer (East Midlands) 56 8 0 3 67 n/a Michael Eakin (North West) 76 8 0 3 87 n/a Kim Evans (Arts) 125 13 0 7 145 145 Keith Harrison (Finance & Resources) 73 10 0 4 87 1 Felicity Harvest (South East) 61 9 1 7 78 n/a Sally Luton (West Midlands) 56 8 0 3 67 n/a Nigel Pittman (London) 90 7 0 0 97 n/a Andrea Stark (East) 69 10 3 6 88 n/a Pauline Tambling 74 10 0 7 91 68 (Research & Development)

Kim Evans, Keith Harrison, Felicity Harvest and Pauline Tambling are on permanent contracts. Peter Hewitt is on a seven-year contract; Andrew Dixon is on a six-year contract; Laura Dyer, Michael Eakin, Sally Luton and Andrea Stark are on five-year contracts; Nick Capaldi is on a four-year contract; and Andy Carver is on a three-year contract. Keith Harrison took up post in March 2002. Wendy Andrews left the organisation in April 2003. Nigel Pittman was seconded to Arts Council England from the Department for Culture, Media and Sport until April 2003.

Arts Council England annual review lottery accounts 2002/03 103 Notes to the lottery distribution accounts continued

2d) Executive directors’ remuneration continued Details of the pension entitlements for the executive directors of Arts Council England for the year ended 31 March 2003 were as follows: Pension increase Pension increase Accrued in the year Accrued in the year Age at pension (net of inflation) pension (net of inflation) 31 March 2003 2002/03 2002/03 2001/02 2001/02 Years £000s £000s £000s £000s Peter Hewitt (Chief Executive) 51 24 5 19 5 Wendy Andrews (Communications) 45 14 4 10 4 Nick Capaldi (South West) 41 3 3 n/a n/a Andy Carver (Yorkshire) 46 5 5 n/a n/a Andrew Dixon (North East) 44 3 3 n/a n/a Laura Dyer (East Midlands) 36 3 3 n/a n/a Michael Eakin (North West) 45 3 3 n/a n/a Kim Evans (Arts) 52 17 5 12 5 Keith Harrison (Finance & Resources) 43 4 4 00 Felicity Harvest (South East) 52 3 3 n/a n/a Sally Luton (West Midlands) 50 4 4 n/a n/a Nigel Pittman (London) n/a n/a n/a n/a n/a Andrea Stark (East) 40 3 3 n/a n/a Pauline Tambling 47 18 4 14 3 (Research & Development)

3 Other operating costs 2002/03 2001/02 £000s £000s Depreciation 67 97 Travelling, subsistence and entertainment 80 75 Publicity and promotions 4 75 Agency staff costs 116 253 Professional fees 661 620 Office and sundry 189 71 Irrecoverable VAT 378 1,464 External assessment costs 2,249 1,861 ARTIS IT information systems project 1,362 1,797 5,106 6,313

104 Arts Council England annual review lottery accounts 2002/03 Notes to the lottery distribution accounts continued

4 Increase in lottery funds 2002/03 2001/02 £000s £000s Stated after charging: (a) Auditors’ remuneration 40 34 (b) Staff travel, subsistence and hospitality 69 83

5 Tangible fixed assets Short Equipment leasehold fixtures improvements and fittings Total £000s £000s £000s Cost at 1 April 2002 284 379 663 Additions 0 0 0 Less disposals (71) (198) (269) Cost at 31 March 2003 213 181 394

Depreciation at 1 April 2002 180 285 465 Less depreciation on disposals (71) (193) (264) Provided for 2002/03 22 45 67 Depreciation at 31 March 2003 131 137 268

Net book value at 31 March 2003 82 44 126

Net book value at 31 March 2002 104 94 198

6 Debtors 31 March 31 March 2003 2002 £000s £000s Prepayments and accrued income 66 976 Other debtors 1,420 1,053 1,486 2,029

Arts Council England annual review lottery accounts 2002/03 105 Notes to the lottery distribution accounts continued

6 Debtors continued Included in other debtors in 2001/02 was an interest free loan to the Lowry Centre of £500,000 which was repaid in full during 2002/03. An interest free loan to Royal Exchange Theatre of £545,000 is included in other debtors in both 2001/02 and 2002/03. This loan is repayable in instalments by 31 March 2011, the first instalment being due by 31 March 2005. An interest free loan for the sum of £131,000 was agreed to Yorkshire Artspace Society in 2002/03, and the sum of £56,000 was repaid during the course of the year. The remaining balance of £75,000 is repayable in equal monthly instalments by 1 May 2013. Also included in other debtors in 2002/03 is an interest free loan to Almeida Theatre Company for the sum of £800,000. Repayment of this loan is due by 7 August 2007. A further loan of up to £700,000 may be requested by Almeida Theatre Company under this agreement.

7 Investments: balance in the National Lottery Distribution Fund 2002/03 2001/02 £000s £000s Balance at 1 April 246,347 254,731 Share of proceeds from the National Lottery Distribution Fund 163,147 196,252 Investment returns on the Distribution Fund 15,894 15,175 Unrealised losses (1,271) (1,524) Cash drawn down (178,533) (218,287) Balance at 31 March 245,584 246,347

The balance in the National Lottery Distribution Fund at 31 March 2003 was unaudited at the date of signing these accounts. The balances at 1 April and 31 March are stated at market value.

8 Notional costs The Arts Council is required to calculate a notional cost of capital, which is disclosed in the income and expenditure account. These accounts cover the lottery distribution activities of Arts Council England, and only funds from the National Lottery are included which bear a cost of capital of 0%. In 2001/02 notional cost of capital is calculated as 6% of the average net assets employed by Arts Council England (Lottery Distribution) in the year, excluding the balance in the Distribution Fund and hard grant commitments.

106 Arts Council England annual review lottery accounts 2002/03 Notes to the lottery distribution accounts continued

9 Soft and hard commitments 31 March 31 March 2003 2002 £000s £000s Soft commitments brought forward 29,887 22,817 Soft commitments transferred to hard commitments (120,455) (163,323) Soft de-commitments (135) (10) Soft commitments made 142,149 170,403 Balance of soft commitments outstanding carried forward 51,446 29,887

Hard commitments brought forward 221,366 265,160 Hard commitments met in the last year (152,276) (198,563) Hard de-commitments (3,133) (8,554) Hard commitments made 120,455 163,323 Balance of hard commitments outstanding carried forward 186,412 221,366

Ageing of hard commitments: 2002/03 n/a 145,343 2003/04 76,191 59,674 2004/05 62,059 8,372 2005/06 30,596 7,977 2006/07 17,566 0 Total hard commitments 186,412 221,366

10 Creditors 31 March 31 March 2003 2002 £000s £000s Trade creditors 26 145 Accruals and deferred income 495 890 521 1,035

11 Leases There were no commitments under non-cancellable operating leases at 31 March 2003 (31 March 2002: £nil).

Arts Council England annual review lottery accounts 2002/03 107 Notes to the lottery distribution accounts continued

12 Capital commitments There were no contracted capital commitments at 31 March 2003 (31 March 2002: £nil).

13 Charges on assets Since November 1997 the standard conditions of grant give Arts Council England an option to take a formal charge on assets for building projects in relation to grants exceeding £250,000.

14 Cash flow reconciliation 2002/03 2001/02 £000s £000s

Reconciliation of operating surplus/(deficit) to net cash flow from operating activities. Operating surplus 33,901 31,372 Interest receivable (552) (832) Unrealised loss on investment 1,271 1,524 Depreciation charges 67 97 Decrease in debtors and prepayments 416 6,110 (Decrease) in creditors (31,455) (44,318) Net cash inflow/(outflow) from operating cashflows 3,648 (6,047)

15 Reconciliation of net cash flow to movement in funds 2002/03 2001/02 £000s £000s Increase/(decrease) in cash in the year 3,825 (4,368) Funds at 1 April 5,278 9,646 Funds at 31 March 9,103 5,278

16 Analysis of net cash 1 April Cash 31 March 2002 flow 2003 £000s £000s £000s Cash 5,278 3,825 9,103 5,278 3,825 9,103

108 Arts Council England annual review lottery accounts 2002/03 Notes to the lottery distribution accounts continued

17 Movement in lottery funds 2002/03 2001/02 £000s £000s Opening lottery reserve at 1 April 28,181 (3,191) Transferred from the income and expenditure account 33,901 31,372 Lottery reserve at 31 March 62,082 28,181

18 Reconciliation of transactions with delegate bodies National Foundation for Youth Music (Youth Music) Youth Music is a delegate body of Arts Council England 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: 2002/03 2001/02 £000s £000s Transactions in Arts Council England accounts: Grant commitments in the year 10,000 10,000 Youth Music creditor balance as at 31 March 13,050 15,302

This reconciles to Youth Music’s accounts for the year ended 31 March as follows: Balance at 1 April 5,071 10,025 Incoming funds: Arts Council England grant 10,000 10,000 Outgoing funds: grant expenditure (11,144) (13,935) other expenditure (752) (1,019) Balance at 31 March 3,175 5,071

Arts Council England debtor balance as at 31 March 13,050 15,302

Arts Council England annual review lottery accounts 2002/03 109 Notes to the lottery distribution accounts continued

19 Related parties Arts Council England maintains publicly available registers in which Council members declare their interests, including any direct interests in grant applications made to Arts Council England and commercial relationships with Arts Council England. The following interests in grant recipients were declared for the year ended 31 March 2003:

Grant for the Balance year ended unpaid at 31/3/03 31/3/03 £000s £000s Organisation Council member Relationship 073Sheffield Theatres Trust Sir Norman Adsetts Chairman OBE 60 60 Arts & Business Deborah Bull CBE Honorary vice president 60 43 Foundation for Patron Community Dance 67 5 Random Dance Company Board member 0 209 Royal Opera House Employee 1,630 2,013 South Bank Centre Board member 30 30 Gardner Arts Centre Deborah Grubb Chair 500 250 Brighton Festival Joanna MacGregor Board member 47 30 Britten Sinfonia Associate artistic director 200 200 National Opera Studio Sir Brian McMaster Chairman CBE 60 60 Arts & Business Gerry Robinson Honorary vice president 60 60 Arts & Business William Sieghart Honorary vice president 82 48 Birmingham Arts Marketing Dorothy Wilson Board member 573 523 mac (Midlands Arts Centre) Employee 124 69 Motionhouse Dance Board member Company 10 0 Nitro Sue Woodford Hollick Family member is artistic director 1,630 2,013 South Bank Centre Husband is chairman

110 Arts Council England annual review lottery accounts 2002/03 Notes to the lottery distribution accounts continued

19 Related parties continued Executive directors and senior managers in Arts Council England are also required to declare any direct interests in grant applications made to the Council and commercial relationships with the Council. The following interests in grant recipients were declared for the year ended 31 March 2003:

Grant for the Balance year ended unpaid at 31/3/03 31/3/03 Executive director/ £000s £000s Organisation senior manager Relationship 77 4 Artangel Trust Marjorie Allthorpe- Patron Guyton 140 105 Africa Centre Hilary Carty Family member is employee 0 4,266 Royal National Theatre Moss Cooper Partner is employee 0 13,458 c/PLEX Laura Dyer Partner is employee 77 4 Artangel Trust Kim Evans Patron 45 45 Arts Catalyst Bronac Ferran Partner is board member 13 3 Public Arts Forum Caroline Foxhall Partner on executive committee 24 24 Hastings Council Felicity Harvest Former partner is member 573 523 mac (Midlands Arts Centre) Sally Luton Partner is board member 26 3 SAMPAD Partner is board member 41 31 University of Central England Board member

The Department for Culture, Media and Sport is the sponsoring department for Arts Council England and is regarded as a related party. The National Foundation for Youth Music is similarly regarded as a related party by virtue of its funding relationship with the Arts Council. During the year Arts Council England had material transactions with other government departments and other lottery distributors including the Community Fund, Heritage Lottery Fund, New Opportunities Fund, Sport England and the UK Film Council.

Arts Council England annual review lottery accounts 2002/03 111 Notes to the lottery distribution accounts continued

20 Financial Instruments Interest rate risk FRS 13, Derivatives and other Financial In accordance with the National Lottery Act Instruments, requires disclosure of the role 1998, National Lottery income receivable which financial instruments have had during by Arts Council England is passed by the the period in creating or changing the risks National Lottery Distribution Fund to the Arts Council England faces in undertaking Commissioners for the Reduction of National its activities. Debt who invest the income in a narrow band of low risk assets such as government Liquidity risk bonds and cash. Arts Council England has In 2002/03 91.5% of Arts Council England’s no control over the investment of funds income derived from the National Lottery. on their behalf. The management of the The remaining income derived from National Lottery Distribution Fund meets investment returns from the balance with representatives of the Commissioners held with the National Lottery Distribution for the Reduction of National Debt on a Fund (8.2%), and from bank interest and regular basis to manage the risks associated other income (0.3%). with the investment of these monies.

At the Balance Sheet date Arts Council At the balance sheet date the market value England had net assets of £62,082,000. of the Arts Council’s shares of the National Lottery Distribution Fund was £245,584,000. Cash flow projections over the next In the year the average return on these financial year investments was 5.9%. Arts Council England does not believe that it is exposed to significant liquidity risks, Cash balances which are drawn down by and is satisfied that it has sufficient current Arts Council England from the National liquid resources to cover its projected Lottery Distribution Fund to pay grant payments over the next financial year. commitments and operating costs are held in instant access variable rate bank accounts, Liquid assets as at 31 March 2003 £000s which carried an average interest rate of Market value of NLDF investments 245,584 3.0% during the year. The cash balance at Cash 9,103 the year end was £9,103,000. Arts Council England considers that it is not exposed to significant interest rate risks on its cash balances.

Foreign currency risk Arts Council England is not exposed to any foreign exchange risks.

112 Arts Council England annual review lottery accounts 2002/03 Notes to the lottery distribution accounts continued

21 Merger of the Arts Council of England and the 10 Regional Arts Boards On 1 April 2002, the assets and liabilities of the 10 Regional Arts Boards transferred to Arts Council England as detailed in the table below. Net assets at Less balances with Adjustment for Adjusted 1 April 2002 Arts Council changes in net assets at per audited accounts England accounting policies 1 April 2002 £000s £000s £000s £000s East England Arts 1,758 (4,156) 279 (2,119) East Midlands Arts 110 (2,630) 777 (1,743) London Arts 2,652 (4,290) 699 (939) Northern Arts 34 (1,551) 90 (1,427) North West Arts 28 (1,820) 108 (1,684) Southern Arts 1,531 (2,543) 0 (1,012) South East Arts 46 (1,374) 321 (1,007) South West Arts 468 (2,165) 237 (1,460) West Midlands Arts 564 (2,442) 604 (1,274) Yorkshire Arts 1,101 (2,951) 354 (1,496) The Arts Council of England 16,420 25,922 0 42,342 24,712 0 3,469 28,181

Accounting policy adjustments have been made in respect of soft commitments previously accounted for as hard commitments in the Regional Arts Board accounts in 2001/02. This adjustment has been made to bring these figures in line with Arts Council England’s Lottery Accounts Direction.

Costs relating to the merger as detailed below have been disclosed separately in the income and expenditure account as an exceptional item. 2002/03 2001/02 £000s £000s Professional fees 399 1,022 Redundancy costs 1,590 0 Other 218 163 2,207 1,185

Arts Council England annual review lottery accounts 2002/03 113 Lottery hard commitments 2002/03 Schedule 1 to the lottery accounts for the period to 31 March 2003

Multiple grants to the same organisation, and £ £ under a single programme, are combined and Keystone Community the total amount is shown in this schedule. Partnership Only organisations receiving £25,000 and Development Trust 138,000 above are listed. Mike Maran Productions 29,907 New Wolsey Theatre 86,833 £ £ Norfolk and Norwich East University Hospital 28,500 Capital Norwich Arts Centre 114,201 Harlow Playhouse 50,000 Norwich School of Luton Carnival Arts 70,000 Art and Design 52,000 Palace Theatre, Peterborough Council 132,899 Watford 4,592,518 Plug Art/Plugfish 26,000 Theatre Resource 50,000 Rural Arts East 99,256 Wysing Arts 25,375 4,787,893 Signals Media Arts 89,346 Regional Arts Lottery Programme SNAP People’s Theatre Trust 29,683 ADeC 104,909 Sound Sense 138,839 Aldeburgh Poetry Trust 27,000 Theatre Resource 194,784 Aldeburgh Productions 244,612 Viva Youth Theatre 29,998 Arts Education Exchange 29,500 Aswad Arts 26,758 Wysing Arts 85,000 Bury St Edmunds Zero Balance 75,000 Art Gallery Trust 194,367 Grants <£25,000 179,690 Cambridge Music 3,185,606 Festival 29,910 Total East 7,973,499 Colchester Arts Centre 100,800 Colchester Mercury East Midlands Theatre 114,034 Capital Commissions East 40,000 Art Exchange, The 70,000 Cross Border Arts 71,738 Belgrave Baheno Dance East 158,800 Peepul Centre 70,000 Escape Artists 30,000 Broadway Cinema 60,000 Fenland Council 63,200 Derby Council 60,000 Forest Enterprise 40,000 Leicester Council 220,000 Half Tone Press 28,500 Lincoln, University of 50,000 Hertfordshire Council 30,000 North East Derbyshire Hoipolloi Theatre 93,147 Music Trust 61,612 Igloo 38,395 Northampton Theatres 91,613 Institute of Visual 683,225 Culture 190,000

114 Arts Council England annual review lottery accounts 2002/03 Lottery hard commitments 2002/03 continued

East Midlands continued £ £ £ £ Regional Arts Lottery Programme Stabilisation and recovery Amber Valley Council 75,600 Roadmender Trust 100,000 Architecture 100,000 East Midlands 127,244 Total East Midlands 2,651,043 Arts and Business 60,000 Bamboozle Theatre London Company 25,847 Capital Belgrave Baheno Peepul Centre 89,550 Arts Administration 2,400,000 Broxtowe Council 37,090 Asian Music Circuit 669,100 Centre for Classical Badejo Arts 70,000 Indian Dance (CICD) 89,947 English National Charnwood Council 28,365 Opera 3,800,000 Dance NK – inIVA (Institute of North Kesteven International Visual Arts) 218,550 Dance Consortium 49,776 Laban Centre for Derby Dance Centre 42,800 Movement and Dance 600,000 Derbyshire Dance 88,500 London Symphony Orchestra 1,887,949 Drake Music Project 52,349 Lyric Theatre Eastern Arts 51,402 Hammersmith 913,988 Engage 25,774 Midi Music 25,397 Fleet Arts 36,570 National Opera Studio 200,000 Leicester Pride 25,282 Ocean 250,000 Leicester Theatre Trust 30,000 Oval House (Christ Nottingham Council 128,575 Church (Oxford) Nottingham Playhouse 48,866 United Clubs) 49,875 Oakham Festival 28,200 Photographers Gallery 80,000 Pearoom Centre for Place, The (Contemporary Contemporary Craft 34,267 Dance Trust) 296,536 Q Arts 26,635 Rich Mix Culture 50,000 Saffron Arts 28,552 Royal Academy of Sambando 28,861 Dramatic Arts 2,400,000 South Northamptonshire Siobhan Davies Council 68,600 Dance Company 518,538 Surtal Asian Arts 88,782 South Bank Board 1,629,900 Sustrans 43,000 Talawa Theatre Trampoline 36,701 Company 50,000 UpBeat 39,840 Young Vic Company 173,460 Grants <£25,000 330,843 Grants <£25,000 15,000 1,867,818 16,298,293

Arts Council England annual review lottery accounts 2002/03 115 Lottery hard commitments 2002/03 continued

London continued £ £ £ £ Regional Arts Lottery Programme Kaleidoscope Project 27,500 198 Gallery 59,182 Kingsgate Workshops Academy Concerts Trust 40,000 Society 25,000 Live Art Development Alternative Arts 29,995 Agency 30,000 Art and Sacred Places 28,825 London Irish Centre 25,082 Artangel Trust 30,000 Mamaloucos 26,390 Artspace 29,008 Mousetrap Foundation for the Arts 59,351 Beat Dis Trust 28,000 National Council for Big Fish Theatre Company 26,785 Drama Training 30,000 Border Crossings National Gallery 100,000 Company 27,254 New Playwrights Trust Bromley Council 30,000 (Writernet) 29,090 Carl Campbell North Kensington Arts 30,000 Dance Company 7 25,450 North Kensington Chicken Shed 25,635 Video/Drama Project 55,000 Cholmondeleys, The 30,000 Oily Cart 34,675 Community Focus 55,000 Pan Centre for Dancers’ Career Intercultural Arts 29,986 Development 26,247 Pegasus Opera Company 27,284 Emergency Exit Arts 30,000 People Show 28,000 English Pocket Opera Premises Music Company 29,510 Education Programme 30,000 Federation of Patidar Prised Open 27,000 Associations 48,320 Pulp.net 59,000 Generating Company 28,300 Rambert Dance Company 45,192 George Piper Dances 29,470 Riverside Trust 30,030 Graeae Theatre Rosemary Butcher Company 134,107 Company 27,590 Green Candle Dance Royal National Theatre 27,305 Company 30,000 Sadlers Wells 25,425 Henry Wood Hall 33,739 SALIDAA 30,566 Hi8us Projects 28,000 Serious Events 30,000 Home 29,622 Shape London 88,321 Immediate Theatre 30,000 Southwark Playhouse 31,018 Independent Spare Tyre Theatre Photography Project 30,000 Company 25,000 Independent Street Spread the Word 35,978 Arts Network 25,520 State of Emergency 29,100 Jewish Book Council 27,700 Studio, Beckenham 25,102 Jumped Up Theatre 25,340 Tam Tam Tales Trust 25,440 116 Arts Council England annual review lottery accounts 2002/03 Lottery hard commitments 2002/03 continued

London continued £ £ £ £ Thames Festival Trust 26,975 Brewery Arts Centre 63,594 Vocaleyes 30,000 Cleveland Arts 28,235 Wally Foster Dance City 35,000 Community Centre 59,520 Derwentside Council 51,316 Grants <£25,000 1,333,066 Developing Audiences 3,649,995 in the North (DAN) 36,454 Stabilisation and recovery Durham Council 36,211 Adzido Pan-African Durham, University of 30,000 Dance 471,230 GemArts 30,000 Africa Centre 100,000 Lawnmowers 55,571 Arc Dance Company 100,000 Making Music (National Blackheath Concert Hall 80,000 Federation of Music CandoCo Dance Societies) 88,300 Company 518,393 Middlesbrough Dance Umbrella 552,000 Music Collective 30,000 London Philharmonic Monster Productions 30,000 Orchestra 2,175,000 National Association Lux Centre 194,500 of Youth Theatres 47,000 Philharmonia 450,000 No Limits Theatre Company 40,000 Rambert Dance Company 458,000 Northern Print Studio 29,104 Riverside Trust 366,000 Northern Roots 40,000 Shape London 90,000 NTC Touring Theatre Company 54,840 South London Gallery 416,000 Pakistan Cultural Society 28,373 Stratford Circus Queen’s Hall Arts Centre 27,000 (Salway Arts ) 150,000 Sightline Initiative 30,000 Theatre Royal Stratford East (Pioneer Theatres) 400,000 Stockton Council 30,000 Grants <£25,000 15,418 Studio, The 48,000 6,536,541 Sustrans 26,000 Total London 26,484,829 Théâtre Sans Frontières 30,717 Tufnell and Rubidge 30,000 North East (Note 1) Voluntary Arts Network 61,500 Capital Waygood Gallery and Studio 43,795 Dance North 1,348,293 Grants <£25,000 638,065 Northern Stage Company 125,880 1,839,075 Waygood Gallery 40,100 Stabilisation and recovery 1,514,273 Arc Trust 250,000 Regional Arts Lottery Programme National Glass Centre 200,000 A19 Film and Video 90,000 450,000 Balletlorent 30,000 Total North East 3,803,348 Arts Council England annual review lottery accounts 2002/03 117 Lottery hard commitments 2002/03 continued

£ £ £ £ North West (Note 1) Green Room 48,068 Capital Halton Touring Network 27,480 Burnley Youth Theatre 365,000 Hope Street 49,365 Chinese Arts Centre 1,241,000 Horse and Bamboo Theatre 55,427 Great Georges Project (The Blackie) 164,000 Kinder Childrens Choir 31,345 Liverpool and Liverpool Biennial of Merseyside Theatre Trust 50,000 Contemporary Art 44,275 Skylight Circus Arts 50,000 Liverpool Yemeni Arabic Club 34,450 Unity Theatre 179,214 Longsight Youth 2,049,214 Arts Project 60,000 Regional Arts Lottery Programme Manchester Action Factory International Arts 56,686 Community Arts 29,240 Manchester Poetry Actual Music 27,290 Festival 49,350 Africa Oye 30,000 Merseyside Dance Allerdale Council 27,450 Initiative 74,668 Black Arts Alliance 33,864 North West Disability Blackpool Council 29,685 Arts Forum 70,301 Bluecoat Arts Centre 40,000 Oakwood Youth Club 32,030 Bolton Octagon Theatre 25,000 Octagon Theatre 29,698 Brewery Arts Centre 43,056 Oldham Coliseum Theatre 65,000 Centre for the Quondam 32,364 Understanding of the Redeye NW Built Environment 36,515 Photographers Network 40,936 Chapter 4 38,500 Sefton Park Palm House Preservation Trust 43,514 Chaturangan 63,764 St Helens Education Cheshire Council Action Zone 26,000 Arts Services 33,000 Stockport NHS Trust 40,691 Cheshire Dance 94,000 Urban Expansions 28,274 Community Arts Yellow House 26,625 North West 52,520 Grants <£25,000 975,862 Cornerhouse (Greater 2,832,033 Manchester Arts Centre) 80,715 Stabilisation and recovery Dance Northwest 29,669 Green Room 49,000 Ellesmere Port and Manchester Camerata 344,981 Neston Council 50,399 Royal Liverpool Fallibroome High School 36,700 Philharmonic Society 2,500,000 Fittings Multi Media 28,457 Wordsworth Trust 37,500 Flux Magazine 29,800 2,931,481 Folly 30,000 Total North West 7,812,728

118 Arts Council England annual review lottery accounts 2002/03 Lottery hard commitments 2002/03 continued

£ £ £ £ South East (Note 2) Hat Fair (Attic Theatre) 29,000 Capital Horsebridge Chichester Festival (Canterbury Council) 35,550 Theatre 139,331 Inter-Action Kent Council 60,000 (Milton Keynes) 25,000 Norden Farm Centre 113,000 Isle of Wight Council 59,100 Rother Council 4,100,000 Ithaca 29,900 Slough Council 70,000 Lighthouse Arts Southampton Council 70,000 and Training 42,000 Winchester Theatre 230,000 LOCMHA 25,400 4,782,331 Making It Work 30,000 Regional Arts Lottery Programme Medway Council 65,000 Adur Festival Steering Metropole Galleries 28,000 Group 26,302 Mill Arts Centre 25,000 Ann Sutton Foundation 28,000 Milton Keynes Council 27,000 Art and Sacred Places 65,725 New Vic Workshop 30,835 Artswork 26,000 Norden Farm Centre 59,600 Basingstoke Theatre Trust 29,724 Orpheus Centre 71,580 Brighton Dome 25,000 Oxford, University of 25,000 Brighton Photo Biennial 44,000 Oxford, University Canterbury Council 30,000 Botanic Garden 26,325 Canterbury Festival 29,754 Pegasus 29,500 Changeling Theatre 26,909 Photoworks 57,499 Chequermead 27,020 Puppeteers UK 28,000 Coral Arts 25,000 Riverhouse 53,210 Dreamthinkspeak 25,000 Roots Around the World 38,464 Expressive Feat Same Sky 75,000 Productions 25,483 Southern Collaborative Fabrica 99,993 Arts Network (SCAN) 28,750 Fireraisers 29,968 Sinfonia 21 29,510 Fosmic 30,000 Slough Council 36,000 Frimley Park Hospital Slough Young Peoples NHS Trust 84,500 Centre 60,000 Gallery GO 30,000 South East Dance 59,900 Gardner Arts Centre 30,000 South Hill Park Arts Centre 30,000 Glyndebourne Productions 27,524 South Oxford Council 47,650 Hampshire Dance Trust 89,700 Surrey Council 30,000 Hand to Eye 30,000 Surrey Institute of Art and Design 28,870 Hanover Band 30,000 Sussex Downs Hastings Museum Conservation Board 53,645 and Art Gallery 28,686

Arts Council England annual review lottery accounts 2002/03 119 Lottery hard commitments 2002/03 continued

South East continued £ £ £ £ Totton College 50,000 art + power Traditional Arts Projects 50,200 (Community Arts Project) 38,516 Watermill Theatre 49,175 Asian Arts Agency 40,000 West Sussex Council 45,000 Aune Head Arts 35,000 Winchester Theatre Fund 60,000 Barbican Theatre 48,000 Worthing Dome and Bash Street Theatre Regeneration Trust 26,751 Company 49,249 Wyards Print and Bath and North East Artworks 26,685 Somerset Council 29,700 Yvonne Arnaud Theatre 35,000 Bath Area Network Zap Art 45,000 for Artists (BANA) 28,085 Grants <£25,000 1,120,246 Bournville Community Arts 30,520 3,772,633 Bristol City Museums Stabilisation and recovery and Art Gallery 28,510 Brighton Festival Cheltenham Arts Festival 28,000 Society 500,000 Circomedia 95,000 Chichester Festival Theatre 2,150,000 Creative Kernow 40,000 Dance Agency Cornwall 26,050 2,650,000 Dartington Hall Trust 30,000 Total South East 11,204,964 Dorset Dance Forum 25,000 Dorset Literature Network 41,542 South West (Note 2) Equata 85,698 Capital Gloucestershire Youth Bristol Council 2,060,000 and Community Service 49,763 Bristol Old Vic Theatre 50,000 Holton Lee 100,000 Devon Guild of Hoodwink 26,943 Craftsmen 25,000 Jakes Ladder 28,516 Kuumba (Arts and Magic Carpet 44,235 Community Resource) 70,000 Making Music Poole Arts Trust 800,000 (National Federation Purbeck Film Festival 50,000 of Music Societies) 25,000 Salisbury Arts Centre 1,561,708 Matrix Consortium 42,889 Stroud Valley Artspace 50,000 North Devon Coast and Theatre Royal, Plymouth 500,000 Countryside Service 60,000 Torridge Council 50,000 Picture This Moving Image 40,000 Watershed Arts Trust 900,000 Poole Arts Trust 30,000 6,116,708 Portishead Town Band 37,425 Regional Arts Lottery Programme Remix 28,000 Acta Community Theatre 51,950 Rondo Trust for the Appledore Arts 66,000 Performing Arts 34,587 Arnolfini 42,890 Salisbury Art Centre 30,000

120 Arts Council England annual review lottery accounts 2002/03 Lottery hard commitments 2002/03 continued

South West continued £ £ £ £ Salisbury Carnival 30,000 Blurton Festival Salisbury Festival 57,520 Committee 26,000 Somerset Film and Video 70,000 Bromsgrove Concerts 32,680 South West Arts Central England, Marketing 37,640 University of 40,591 State of Emergency 62,800 Community Buildings Swindon Arts Centre 49,986 Trial Programme 25,000 Theatre Royal Bath 100,000 Courtyard 30,000 Walford Mill Education 40,977 DanceXchange 30,000 Wiltshire Music Centre 29,500 Engage 43,341 Grants <£25,000 723,110 Foundation for Community Dance 59,806 2,638,601 Full Potential Arts 47,585 Stabilisation and recovery Hi8us Projects 53,750 Bristol Old Vic Theatre 750,000 Light House Media Hall For Cornwall 100,000 Centre 45,935 Watershed Arts Trust 800,000 Manchester Camerata 58,185 1,650,000 Meadow Gallery at Total South West 10,405,309 Burford House 30,000 Metapod 58,410 West Midlands Motionhouse 60,000 Capital North Staffordshire Arvon Foundation 251,449 Healthcare Trust 89,829 Belgrade Theatre Number 8 50,000 Coventry 259,000 Orchestra of the Swan 60,000 Black Voices 51,000 Poetry on Loan 46,000 Kajans Womens SAMPAD/South Asian Arts 25,998 Enterprise and Seeing the Light 68,782 Association 70,000 Shrewsbury Council 132,821 mac (Midlands Shrewsbury Youth Theatre 27,950 Arts Centre) 550,000 Sound It Out 99,952 1,181,449 Staffordshire Library 34,500 Regional Arts Lottery Programme Studley Village Hall 50,290 About Face Theatre Topiary Dance Company 26,220 Company 30,000 UK Arts International 36,106 Anurekha Ghosh and Co 26,225 Urban Music Seminar 29,000 Bilston Craft Gallery 35,000 Walsall Community Birmingham Arts Arts Team 55,000 Marketing 81,964 Warwick Arts Society 45,000 Birmingham Council 242,665 William Brookes School 53,500 Birmingham Jazz 49,275 Grants <£25,000 667,340 Birmingham Libraries 58,000 2,762,700

Arts Council England annual review lottery accounts 2002/03 121 Lottery hard commitments 2002/03 continued

West Midlands continued £ £ £ £ Stabilisation and recovery Culture Company 25,000 Belgrade Theatre Danceworks UK 60,000 Coventry 963,000 Darts 45,000 Newtown Cultural Dearne Valley Brass 29,300 Project (The Drum) 300,000 Doncaster Youth Ross-on-Wye Jazz Action 30,000 International Festival 230,000 Faceless Company 28,000 Royal Shakespeare Get Sorted Academy Company 5,092,020 Of Music 42,000 6,585,020 Heads Together Total West Midlands 10,529,169 Productions 52,400 Higgfield Single Yorkshire Regeneration Budget 27,800 Capital Hull and East Riding Barnsley Council 50,000 Community Health NHS Trust 40,000 Creative Art House 30,000 J Night 31,000 Dearne Community and Miners Welfare Scheme 27,000 Jabadao 39,000 East Street Arts 300,000 Leeds Council 50,000 Hull Time Based Arts 109,400 Northern Aldborough Festival 28,000 Kala Sangam 115,000 Peepal Tree Press 58,500 Kirklees Media Centre 40,000 Primary Colours 49,800 Mind the Gap 40,500 Red Ladder Northern Ballet 2,560,457 Theatre Company 82,300 Grants <£25,000 18,000 Redundant Technology 3,290,357 Initiative 29,800 Regional Arts Lottery Programme Rosetta Life 25,300 Barnsley Design 2001 33,600 Rotherham Council 29,000 Bradford and Northern Sheffield Contemporary Housing Association 36,700 Arts Forum 28,200 Bradford Council 59,400 Sheffield Council 65,000 Bradford International Sheffield Independent Festival 25,000 Film and Television 25,000 Chapeltown and Harehills Small World Cultural Regeneration Trust 37,000 Arts Collective 30,500 Chol Theatre 30,000 Somali Special Needs CIDA (Creative Industries Scheme 25,000 Development Agency) 30,000 South Asian Arts UK 62,000 Courthouse Project Square Chapel Centre (Otley) 50,000 for the Arts 62,000

122 Arts Council England annual review lottery accounts 2002/03 Lottery hard commitments 2002/03 continued

Yorkshire continued £ £ £ £ Swaledale Festival 44,900 Balletlorent 26,171 Theatre In Education Bark Dance Productions 34,377 Company 28,000 Base Chorus Productions 35,000 United Villages Big Picture Company 69,660 Partnership 30,000 Bill Gee Associates 26,700 Unlimited Theatre 26,800 Birmingham Contemporary Word Hoard 30,300 Music Group 45,000 Yorkshire Folk Arts 31,800 Birmingham Zbang Dance Company 45,200 Repertory Theatre 80,000 Grants <£25,000 869,550 Blast Theory 36,455 2,508,150 Border Crossings 27,610 Stabilisation and recovery Bright FX 51,599 Opera North 715,000 British Music Sheffield Media and Information Centre 31,020 Exhibition Centre Britten Sinfonia 46,800 (Showroom) 500,000 Bury St Edmunds 1,215,000 Art Gallery 56,505 Total Yorkshire 7,013,507 Cardboard Citizens 57,040 Carl Rosa Productions 54,061 National grants Carlyl Jenner Productions 27,179 Awards for All 6,804,063 Carnival Collective 29,270 Youth Music (National Chapter (Cardiff) 46,585 Foundation for Youth Music) 10,000,000 Charles Lineham National Touring programme Company 28,577 272 Project 25,000 Clwyd Theatre Cymru 58,976 Academy of Ancient Concert Clinic 40,725 Music 27,000 Contemporary Verney Africa Centre 40,000 House 42,865 Albatross Cornerhouse (Greater Environmental Theatre 50,000 Manchester Arts Centre) 28,250 Almeida Theatre Dance Consortium 208,750 Company 35,325 Dance Umbrella 102,830 Ambache Chamber DanceXchange 74,236 Orchestra 32,207 Desperate Optimists 38,619 Apples & Snakes 87,188 Early Opera Company 42,000 Arnolfini Gallery 62,812 Eastern Angels 40,246 Artangel Trust 47,450 Emergency Exit Arts 37,975 Arts Catalyst 44,937 English Concert 40,000 Ashton Group English Stage Company 107,380 Contemporary Theatre 25,000 Event International David A Bailey 126,210 Company 25,000

Arts Council England annual review lottery accounts 2002/03 123 Lottery hard commitments 2002/03 continued

National grants continued £ £ £ £ Extant 50,000 Miffy Library Tour 65,536 Fabrica 36,645 Mimbre 33,730 Fecund Theatre 39,653 Mind the Gap 67,290 Fierce Earth 27,239 Moby Duck 25,950 Flying Gorrillas 37,000 Motionhouse Future Physical 59,508 Dance Theatre 64,000 George Piper Dances 152,539 Music Theatre Wales 115,000 Giffords Circus 43,548 Nahid Siddiqui Polly Gould and and Company 38,000 Anne Eggebert 29,088 New Acoustic Grizedale Arts 35,000 Music Association 28,000 Group K Theatre 37,351 Nigel Charnock Harrison Parrot 55,533 and Company 25,000 Hay Festival of NoFit State Literature and the Arts 29,000 Community Circus 37,242 Helen Storey Foundation 42,000 Northern Broadside Theatre Company 88,025 Henri Oguike Dance Company 80,000 Northern Print Studio 26,800 Hoipolloi Theatre 39,825 Norwich School of Art and Design 29,200 Horse and Bamboo (Little World) 25,550 Nottingham Theatre Trust 87,371 Imlata Dance Company 49,950 Nu Century Arts 33,309 Indigenous People, African Alternatives 28,525 Nuffield Theatre 39,489 Interplay Theatre Trust 38,101 Nutcracker Tours 265,000 Jade Theatre Company 42,030 Opera Group 61,247 Jasmin Vardimon Out of the Box Dance Company 94,775 Productions 65,912 Kinetika Art Links Deborah Padfield 48,474 International 95,900 Peepolykus 34,402 Kompany Malakhi 100,227 Pegasus Opera Company 68,000 La Ribot – 36 Gazelles 42,280 Poole Arts Trust 35,000 Little Angel Theatre 25,189 Protein Dance 71,170 London Mozart Players 43,800 PVA Medialab 46,375 London Sinfonietta 52,000 Random Dance Lyric Theatre Company 67,000 Hammersmith 86,634 Sadler’s Wells Trust 99,978 Mamaloucas 87,000 Sankalpam 35,000 Manchester Art Gallery 27,259 Scarlet Theatre 33,914 Mavin Khoo Dance 47,000 Shrewsbury Mid Wales Opera 40,640 Museums Service 34,210

124 Arts Council England annual review lottery accounts 2002/03 Lottery hard commitments 2002/03 continued

National grants continued £ £ £ Site Gallery 25,310 Plus: Society of British Grants already disclosed in Theatre Designers 75,000 2001/02 Regional Arts Boards’ Sonia Sabri Company 25,810 accounts but now treated as South East Dance 44,105 hard commitments in 2002/03 South London Gallery 34,000 because of adjustments in Sristi-Nina Rajarani accounting policy. 4,406,852 Dance Company 33,000 State of Emergency 89,420 Less: Swamp Circus Theatre 61,051 Hard commitments included Theatre Melange 26,075 in the above list not previously Third Angel 46,967 disclosed but which are accounted Told by an Idiot 84,636 for as 2001/02 commitments Unlimited Theatre 25,306 following adjustments in Vardy Gallery 32,410 accounting policy. 744,186 Vayu Naidu Company 79,630 Video and Film Total grants as Note 9 Umbrella 350,000 of the income and Vincent Dance Theatre 75,000 expenditure account 120,455,285 Walk the Plank 28,566 Walker Dance Company 64,500 Note 1: During 2002/03 responsibility for Errollyn Wallen 27,725 Cumbria transferred from the North East to Watermill Theatre 76,598 the North West office. As a result, there are Welsh Independent Ballet 56,950 some grants to organisations in Cumbria World Book Day 80,000 recorded in both regional breakdowns for World Famous 60,685 this year. Wrestling School 134,100 Alexa Wright 25,697 Note 2: 2002/03 saw the transition from Zygo Arts 28,538 the three former Regional Arts Boards Grants <£25,000 1,787,687 (Southern, South East and South West) to 9,269,769 the two new regional offices of South East Stabilisation and recovery and South West. The grants in this schedule Drake Music Project 150,000 have been listed according to the new Grants <£25,000 211,087 boundaries regardless of which office 361,087 was initially responsible for the award. Space for Sport and Arts 2,479,304 Total national grants 28,914,223

Total grants 116,792,619

Arts Council England annual review lottery accounts 2002/03 125 National Lottery report

Photo information: The De La Warr to £300,000 in 2005/06. This investment Pavilion is a Grade One listed modernist supports the organisation in developing building of international architectural its work with artists and arts education significance, on the seafront in Bexhill- programmes in the community. We on-Sea. The space incorporates an arts also gave over £4 million towards its and cultural centre, gallery space, theatre refurbishment in 2002, including to and meeting rooms. Our support for this redeveloping the public areas and regularly funded organisation has more technical facilities. than doubled, from £120,000 in 2002/03 Photo credit: MINT Design National Lottery report 2002/03

Introduction 2002/03 saw the implementation of many We maintained our commitment to ensuring of the substantial changes forecast in the last that all our money is used in ways that will review. This began with the Arts Council of make a difference by increasing the quality of England and the Regional Arts Boards joining the arts, and opportunities for access to and together on 1 April 2002 to form a single participation in artistic activity throughout development organisation for the arts in England. In 2002/03 we adopted a new lottery England. This change enabled us to embark strategic plan for the period to 2005. This was on a review of our forward planning, staff necessarily interim pending completion of a structure and grants programmes. corporate plan, integrating lottery and grant- in-aid funding, for the period beyond 2003. We aim to develop integrated policies for the The year was therefore transitional between distribution of both lottery and grant-in-aid the previous plan and the new ones, although funding, and to establish a streamlined set of there was a clear and consistent thread funding programmes for the new organisation. between the priorities identified in each plan. This was identified as a priority and during the year under review we developed a new Our aim is to promote access, education and simplified set of funding programmes. These excellence in the arts. We have five strategic were launched in February 2003 and open priorities for lottery activity: for applications from 1 April 2003. • new work, experimentation and risk, and the centrality of the individual artist, As a result of the organisational change we creator or maker were able, for the first time, to undertake • new art forms and collaborative ways of corporate planning on a consistent and working, often in or with new technology nationwide basis. In February 2003 we • diversity and public inclusion with special published Ambitions for the arts, a statement reference to race, disability and economic of priorities and principles to guide the new class organisation. 2002/03 should therefore be • children, young people and lifelong learning seen as a transitional year – continuing to • touring, and distribution through operate and honour the programmes in broadcasting, recording and electronic existence whilst looking forward and preparing publishing for the new activities. Our priority was to have as smooth a transition as possible, and These objectives are compatible with our to ensure that artists and arts organisations lottery Policy Directions. They have been did not have to suffer considerable change reviewed and refined as part of the recent of direction or procedure. corporate planning process and are discussed further on pages 129 to 132.

Arts Council England annual review National Lottery report 2002/03 127 Introduction continued

The year also saw the publication by the both continued although they have now Department for Culture, Media and Sport been replaced by our new Grants for the (DCMS) of the Lottery Review Discussion arts programmes. We began an extensive Document. This led to significant debate evaluation of RALP in 2002/03 and refer within the Arts Council and with other lottery to the findings later in this report. distributors. We submitted a formal response to this review in October 2002. Preparation As anticipated in the last review, Awards for All of the response coincided with much of the was launched as a formal joint scheme. This planning already mentioned and ensured allowed greater simplicity and transparency that we were able to reflect the most for applicants through an integrated scheme up-to-date thinking in our planning. which did not force artificial boundaries on applicants. The first year of this amended In July 2003 DCMS published a further programme demonstrated real improvements document setting out firm plans and proposals and some results are provided later in this for the future operation of the lottery. We review. are discussing the implications of this with other lottery distributors and the DCMS. During 2002/03 we continued our partnership on the Space for Sport and Arts programme This report now considers our lottery activities with Sport England, the New Opportunities during 2002/03, operated in the context of Fund, DCMS and the Department for our overall strategic objectives. Education and Skills.

2002/03 saw the completion of a number of The National Foundation for Youth Music capital projects awarded funds in earlier years. (Youth Music) is a major power in bringing Amongst the new buildings which opened about change in music provision. It was set during the year were BALTIC in Gateshead, up in 1999 to provide music-making activities providing a major international centre for to those with the least opportunity in life. contemporary arts; and the award-winning Youth Music encourages children and young Laban Centre in south London. Many other people to take up all kinds of musical styles organisations made continuing progress and from rap to classical. It concerns itself with the next few years will see the completion the training and development of enthusiastic of key capital projects throughout the and dedicated music leaders. During 2002/03 country. Planning began for the next round Youth Music developed and implemented of applications for capital projects and the a national strategy to support youth music. admission results will be reported next year. This work is carried out through Youth Music’s own strategic agenda and via four open The Regional Arts Lottery Programme programmes to which organisations can (RALP) and the National Touring Programme apply for funding.

128 Arts Council England annual review National Lottery report 2002/03 Policy Directions

The Recovery Programme continued to This direction is reflected, as appropriate, provide a lifeline to strategically important in application packs and criteria for funding organisations faced with critical financial for all our lottery programmes, including difficulties and assisted them in securing those run by our delegate bodies. This report operational stability in the medium term. Its demonstrates that the direction has been partner Stabilisation Programme, although taken into account, including through projects closed to further admissions, is concerned that received over £5 million. Our programmes with the development of long-term strategies will only fund projects with an element of for change, addressing artistic as well as private gain where any such gain is incidental organisational and financial issues. and subsidiary to wider public benefit.

The responsibilities of a lottery distributor B The need to ensure that it considers continue long after an award is agreed. applications which relate to the complete We still actively monitor hundreds of awards range of activities falling within section made in previous years, often under earlier 22 (3) (a) and in respect of which it has programmes. The activities involved and power to distribute money, taking into results of the monitoring are described account: later in this report. i its assessment of the needs of the arts and its priorities for the time being for Policy Directions addressing them Under the National Lottery etc Act 1993, ii the need to ensure that all parts of the Secretary of State issued Policy Directions England have access to funding in August 1998, which we must take into iii the scope for reducing economic and account in distributing National Lottery social deprivation at the same time as funds. These are set out below, with a short creating benefits for the arts. explanation of how the directions have been met. Our priorities were informed by an assessment of arts needs. The extent to The references given below relate to the which these priorities have been met is National Lottery etc Act 1993 as amended considered in greater detail elsewhere in this by the National Lottery Act 1998. report. The allocation of funds has continued to be influenced by the need to ensure A The need to ensure that money is greater geographical equity. We consider distributed under section 25 (1) for the potential economic and social benefits projects which promote the public good of our programmes both when establishing or charitable purposes and which are the criteria for funding programmes and in not intended primarily for private gain. relation to major awards.

Arts Council England annual review National Lottery report 2002/03 129 Policy Directions continued

C The need to promote access to the arts will provide benefits after the period of the for people from all sections of society. expenditure of grant and, in the case of major capital grants, for a period of up to We consider access benefits for every 25 years. Sustainable development is also application for Arts Council lottery funds. the underlying key objective for both the We have placed increasing importance on Stabilisation and Recovery Programmes. extending the economic and social range of beneficiaries of arts lottery funding. This can F The needs of projects relating to film be seen in the balance of projects supported and the moving image, and in particular under the Arts Capital Programme; through the need to foster the development of participation with other lottery distributors in sustainable structures in the film industry the Awards for All and Space for Sport and by, among other things, supporting the Arts programmes; and through the priorities development, distribution and promotion identified for all other lottery programmes. of films, as well as their production.

D The need to promote knowledge and Formal responsibility for film production appreciation of the arts by children and funding passed to the UK Film Council in young people. 2000. In the year under review, we continued to cooperate with the Film Council about Children and young people are one of our the plans for distribution of the £15 million strategic priorities and this is reflected, as set aside from the Arts Capital Programme. appropriate, through our lottery funding. Since the end of the year, these plans have We have identified this as one of our key been further developed and the Film Council output indicators for lottery funding, which has been appointed as a delegate body for will enable us to monitor our achievements these purposes. The final details of this in relation to this priority. In the year under collaboration will be reported in next year‘s review this is particularly evident in the report. Artists’ work in the moving image support offered under the Arts Capital was supported under Awards for All, RALP Programme and through the Space for and the National Touring Programme. Sport and Arts programme, as well as continued support for Youth Music. The Government has indicated its intention to issue a new policy direction which E The need to further the objectives of recognises changed responsibilities since sustainable development. the establishment of the Film Council. In the meantime we operated in accordance with We consider sustainability in relation to an interim understanding with the DCMS the future plans of all major lottery awards. about the extent of our responsibilities in Applicants are asked to show how projects relation to film activities.

130 Arts Council England annual review National Lottery report 2002/03 Policy Directions continued

G The needs of projects relating to crafts. We assess all lottery applications in terms of financial viability and management. Crafts projects are eligible for funding under Grants are not awarded unless projects can our lottery programmes. In particular, care is show appropriate viability. Business plans taken to ensure that crafts receive appropriate are requested from applicants, and assessed, benefits from ongoing programmes such as where the lottery programme requires this. the National Touring Programme and RALP We assess the future prospects of projects and, in the future, from Grants for the arts beyond the period of the grant where that is programmes. appropriate – for example, for Stabilisation, Recovery and capital awards. H The need for money distributed under section 25 (1) to be distributed to projects J The desirability of supporting the only where they are for a specific time- development of long-term financial and limited purpose. managerial viability of organisations in the arts. In taking this into account the Arts All lottery awards made by us and our Council shall have regard to Direction H. delegate bodies during 2002/03 were for specific and time-limited purposes. Long-term financial and management viability is assessed for larger capital awards I The need: and we monitor this throughout a funded i in all cases, for applicants to demonstrate project’s duration. Our Stabilisation and the financial viability of the project for the Recovery Programmes were established period of the grant with the specific aim of securing the medium ii where capital funding or setting up to long-term financial, management and costs are sought, for a clear business creative viability of arts organisations. plan beyond the period of the grant incorporating provision for associated K The need to require an element of running and maintenance costs partnership funding and/or contributions iii in other cases, for consideration to be in kind from other sources, commensurate given to likely availability of other funding with the reasonable ability of different to meet any continuing costs for a kinds of applicants, or applicants in reasonable period after completion of particular areas to obtain such support. the period of the lottery award, taking into account the size and nature of the Evidence of partnership support, whether project, and for lottery funding to be used in the form of one-off contributions or to assist progress towards viability beyond continuing revenue support, has been required the period of the grant wherever possible. for all projects awarded lottery funds.

Arts Council England annual review National Lottery report 2002/03 131 Monitoring and evaluation

Increasingly, we have introduced flexibility During 2002/03 we and our delegate bodies into the requirements for partnership only used the powers to solicit applications funding, to recognise the applicants’ ability in order to pursue objectives set out in our to obtain such support. For example, the Arts lottery strategic plan. Capital Programme is far more flexible than its predecessor and RALP specifically reduced N Such information as it considers necessary the requirement in the case of applications to make decisions on each application, from geographic or other priority areas. including expert independent advice when required. L The desirability of working with other organisations, including other distributors, Application forms for our lottery programmes where this is an effective means of request the information needed to make delivering elements of its strategy. decisions while continuing to strive for greater simplicity in all requests for information. We During 2002/03 we collaborated with other took advice in considering applications from lottery distributors in the Space for Sport and external advisers, industry bodies and other Arts programme and in the implementation partners. We also took advice from relevant of the Awards for All programme as an advisors, either independent professional integrated joint scheme. We also collaborated advice or through panels and committees. with other distributors in the West Midlands in a trial programme for the support of Monitoring and evaluation community buildings. We have worked with The broad principles underpinning monitoring the Film Council in relation to capital needs. and evaluation activities have not changed in In addition, all lottery distributors have recent years although the practice has been considered how to work together in a more refined in the light of experience gained and efficient way and this is reported in more lessons learned from earlier work. Monitoring detail elsewhere in this report. and evaluation take place at various stages of a lottery-funded project or programme, We continued to work with Youth Music, and with a variety of objectives. the Crafts Council, local authorities, regional development agencies, and government The operation of programmes is monitored departments and offices throughout the to ensure that they are functioning in the country. ways intended. This includes such matters as reaching the expected spread of applicants, M The need to ensure that its powers of achieving the stated or expected processing solicitation under Section 25 (2A) are used times, and ensuring that policy directions in conjunction with the pursuit of strategic governing the distribution and use of lottery objectives. funds are adhered to.

132 Arts Council England annual review National Lottery report 2002/03 Monitoring and evaluation continued

We monitor recipients of awards to ensure organisations to extend the scope of their that the funds awarded are applied to the core activities. A4E Express was formally activities set out in the approved application, closed in the previous year with only A4E and that the activities deliver the promised Main awards still active in 2002/03. public benefit and represent value for money. A4E (Main) offered funding of £5,000 to Post-completion monitoring follows. This £500,000 for projects lasting up to three is designed to ensure that the expected years. It was targeted at more established outcomes of the awards continue to be arts organisations and other bodies with available and delivered. experience of organising larger arts-based projects. Evaluation of a programme may occur at the conclusion of any pilot phase, or during the To release each payment, the applicant course of the operation of a programme and was required to submit monitoring reports after its conclusion. Such evaluation assists providing either artistic or financial information us in measuring the extent to which we have on the performance of the project. In addition, met our own objectives and targets; identifies, a proportion of the award was retained until encourages and nurtures best practice; and, a final report and audited accounts were critically, informs the development of future provided, verifying that the project had lottery plans. been successfully completed.

The scale and scope of each scheme At 31 March 2003, there were 49 active determines the framework through which projects, out of a total of 425 grants awarded, these objectives are pursued. This annual and 34 final reports were still outstanding. report briefly considers each of the During 2002/03, 26 awards were reduced programmes that were active during the year following scrutiny of amended plans or and reports the results of any associated final reports. monitoring and evaluation. We carried out a review of all completed Arts for Everyone final report forms to draw together a picture As noted in previous reports, Arts for Everyone of the outcomes of funded projects. In (A4E) has been closed to new applicants since addition, we held a small number of interviews 1998 and 2002/03 saw the completion of to gather more detailed information about most projects funded under the programme. organisations’ experiences of the A4E programme. The review analysed the levels There were two streams to the scheme: of additional funds achieved by successful A4E (Express), aimed at smaller-scale groups A4E projects, the numbers of activities and projects, and A4E (Main), offering undertaken, the participants or audiences opportunities for more established and the new work supported.

Arts Council England annual review National Lottery report 2002/03 133 Monitoring and evaluation continued

The findings showed that most organisations We continued to monitor capital projects to had been able to secure further funding ensure that projects are completed on time, to continue at least some of the activity within budget and to the highest possible begun with A4E support and had found the quality. There are two aspects to this: experience of the projects beneficial to their monitoring of capital projects in progress organisation. The review confirmed that the and in post-completion – for a specified vast majority of recipient organisations had period following the last payment. met the objectives of the programme. Projects in post-completion are expected to Awards for All complete an annual report form, which is The development of Awards for All as a part of our risk analysis in relation to these formal joint scheme was challenging but completed projects. In addition, we carry out rewarding for all distributors. The objective a programme of post-completion evaluation of increased transparency and simplicity for visits, depending on the size of the project in applicants was achieved and greater equality question. The percentage of projects visited of treatment was ensured. The nine Joint varies with the size of the grant, as shown: Regional Committees make awards using common assessment criteria. Alongside these Size of grant % projects Visits to be visited in 2002/03 improvements the individual distributors had to recognise that they could no longer < £100,000 5 7 directly identify the recipients of their funds £100,000–£1m 15 33 nor ‘control’ the way their funds were to £1m–£5m 50 25 be spent. In 2002/03 Awards for All made £5m and above 100 25 12,166 awards totalling over £45 million; the average award was £3,700. The figures above include a study undertaken to evaluate the performance of those projects 2002/03 coincided with the Queen’s in the first Capital Programme that were Golden Jubilee activities. The Awards for All awarded lottery funding of more than programme provided awards totalling over £100,000 and that, following completion, £5 million to 1,570 groups to help them have now been operational for at least one celebrate the Jubilee. year. We selected 59 projects with the aim of assessing whether and to what extent the Capital Programme projects, now that they are operational, are The Capital Programme was the first lottery delivering the level and range of benefits and programme we operated. As at 31 March outputs that were envisaged in the original 2003, a total of 2,318 awards had been project proposals. made through the programme. These totalled £1,227 million towards projects with The results show that 64 per cent of the an estimated total cost of £3,194 million. projects evaluated were achieving or

134 Arts Council England annual review National Lottery report 2002/03 Monitoring and evaluation continued exceeding all of their originally intended Active awards (as at 31 March 2003) Number artistic, educational, financial and architectural < £100,000 grant 149 benefits. A further 17 per cent were achieving £100,000–£1m grant 121 or exceeding all of their originally intended £1m–£5m grant 62 artistic, educational and architectural benefits £5m and above grant 22 and outputs but not some or all of their Total 354 intended financial benefits. Millennium Festival Fund Most of these visits are randomly selected As reported in previous years the Millennium but in some cases, for example where an Festival Fund large-scale awards were designed annual report form has raised a concern, to fund projects that were centred on or a project may be specifically selected for around the Millennium. However, we did a visit. However, if any concern is of major agree that a number of projects could run significance or of an immediate and high longer than originally anticipated. risk, other mechanisms will be used – a routine evaluation visit is not an Of the 31 projects still active last year, 28 appropriate tool in such circumstances. were closed during the year and of these eight projects had awards reduced after The Committee of Public Accounts reported scrutiny of the final reports and accounts. on the Capital Programme in December 1999, At year-end there were three projects still focusing on 15 of the 28 major capital active, although these have since closed. projects. In 2002/03 the National Audit Office began a follow-up review on what has National Foundation for Youth Music happened to the projects since the Committee (Youth Music) reported. An update will be provided in next Youth Music provides music-making year’s annual review. opportunities in out-of-school hours to children and young people up to the age The breakdown of awards that received of 18, with 83 per cent enjoying a first-time final payment during 2002/03, together with experience. a breakdown of active awards at year-end, is set out as follows. Approximately 13,000 musical instruments, valued at nearly £2.5 million, have been Completed awards brought back into use. This will be extended (final payments made in 2002/03) Number in 2004 with a new strategic programme, < £100,000 grant 69 Endangered Species. £100,000–£1m grant 33 £1m–£5m grant 25 Youth Music has levered in over £8 million £5m and above grant 5 in partnership funding. This includes money Total 132 from the Department for Education and

Arts Council England annual review National Lottery report 2002/03 135 Monitoring and evaluation continued

Skills and Arts Council England for national Overall the evaluations show that the youth music flagship organisations, and a programmes have met Youth Music’s £1.2 million fundraising initiative organised objectives and criteria. For example, the First and supported by the British Phonographic Steps programme reached 26,000 children and Industry and the BRIT Trust. This enabled involved 10,000 adults, offering opportunities Youth Music to extend its open programmes in isolated rural areas, deprived inner city areas to Northern Ireland, Scotland and Wales. and in settings that lack resources to develop creative activity with specialist expertise. Twenty Youth Music Action Zones, which Many nurseries received music workshops for bring together a consortium of experienced the first time and are now building regular music deliverers working with hard-to-reach music sessions into their weekly routine. The young people, have now been established in findings from all evaluations have been used England. £2 million has been secured in extra to refine future programmes. They have also funding so others can be set up in Wales. helped Youth Music to develop policies to fill gaps or overcome shortcomings such as The Song for Youth initiative produced a great the need for training in musical leadership, wave of singing across the UK. Youth Music which is now being tackled by a new specially commissioned Drop in the Ocean programme of skills development. and this was presented with a comprehensive education pack, available free to community- Evaluations have been completed on Singing based groups and schools. This was supported Challenge I and II, Music Maker, Youth Music by a series of professional training workshops Action Zones, Dynamo and First Steps for singing leaders and by awards for unusual programmes. Evaluations on Singing Challenge performances and interpretations of the song. III, Plug into Music and Wider Opportunities will be completed in spring 2004. All projects must monitor and report quarterly on their progress to Youth Music. Youth National Touring Programme Music monitors 10 per cent of awards by As with other programmes, the monitoring visiting projects in action. in relation to the National Touring Programme occurs for individual projects as well as in An Evaluation and Research Group, reporting relation to the programme as a whole. to the trustees, oversees evaluation. Programmes are evaluated by external Monitoring is based on tracking the projects evaluators against Youth Music’s four as they develop and take place – through objectives of access, breadth, coverage and the submission of progress reports and quality and the criteria for the individual assessment visits as appropriate. In addition, programme. Final evaluations are made the final payment of all grants is subject to the public with a summary placed on the submission of a comprehensive end-of-project website, www.youthmusic.org.uk report together with accounts for the tour.

136 Arts Council England annual review National Lottery report 2002/03 Monitoring and evaluation continued

The last awards under the National Touring programme’s objectives. Particular strengths Programme were agreed at the end of of the programme were identified as being 2002/03 as this programme has been its flexibility, the funding criteria, the rolling superseded by the new Grants for the arts programme (ie no fixed deadlines), the local programmes. When all funded activities are delivery of advice and decisions, the levels of completed we will compile information on funding provided and the new partnerships the range and volume of work achieved. which were fostered as a result of the programme. Regional Arts Lottery Programme (RALP) The programme has run for its third and final Alongside this, several areas of weakness were year, offering arts project grants for access, identified and these were considered in some education, production and distribution, and detail in developing our new programmes. investment in artists, as well as small scale These weaknesses included the difficulty capital grants (up to £100,000) and grants for new and inexperienced organisations of for organisational development. coping with the application process and the lack of sustainability for funded activities, All grant recipients must complete a final with a need to give greater attention to exit project report, and between five and 10 strategies. A considerable number of funded per cent of all projects are selected for in-depth organisations acknowledged the inadequacy evaluation. The choice of projects partly results of their marketing in relation to the needs of from a random selection but also involves their project – either due to lack of knowledge projects specifically selected, for example, or resources. because they offer an innovative approach. This is primarily based on self-evaluation but A second strand of this evaluation involved random checks are made by way of visits or a more in-depth review of a selected number access to the basic records of an organisation. of case studies. As well as providing further useful information on areas that should be As reported last year, we commissioned changed for future programmes this also a specific evaluation of the programme. identified aspects which had been successful Although not published until after the end in RALP and that should be preserved and of 2002/03, the main findings of this developed in further programmes. Overall this evaluation were available in time to feed review showed that a small amount of money in to the development of the new Grants can make a huge difference to an organisation for the arts programmes and informed when available at critical development stages some key elements of their design. and provided the funding bodies are prepared to show flexibility and take risks when The evaluation showed that a significant appropriate. These are important messages majority of the funded activities had for future lottery programmes. achieved positive results in relation to the

Arts Council England annual review National Lottery report 2002/03 137 Monitoring and evaluation continued

Space for Sport and Arts The programme uses the same mechanism Last year’s report explained that 301 projects for monitoring as the other stabilisation had received awards totalling just over £121 programmes – quarterly review meetings. million. These projects include facilities which The objectives are to: ensure that the strategy will be only for sports or arts use, with the for change for any participating organisation majority designed for both. Of the 301 primary is fully implemented within the defined schools involved in the programme, 14 had timescales; monitor progress against the opened their new arts and sports facilities strategy’s milestone plan and release the during 2002/03, and most of the remaining agreed funds on their achievement. We have projects were well underway, with their not yet evaluated the Main Stabilisation designs and development plans approved or Programme because all the organisations close to being approved. Initial planning took which have received an award are at an early place for the launch of a new revenue funding stage of implementing their strategies for phase for Space for Sport and Arts. The change. An evaluation of the programme will partnership agreed that the revenue funding be carried out when a significant number should be made available to enable new of the organisations have implemented community activities to take place in the newly a substantial part of their strategies. built and refurbished sport and arts facilities. Recovery Programme Stabilisation and Recovery By the end of 2002/03, 44 organisations had Pilot Stabilisation Programme been admitted to the Recovery Programme. Thirteen organisations’ strategies for change There is no fixed cycle of admission. arising from the 1996 Pilot Stabilisation Organisations can apply at any time and Programme continued to be monitored in therefore they are at different points within the course of the year. For most of these the programme. Of the 44 admitted, 14 were organisations 2002/03 represented the final still in the process of developing a recovery year of implementation. All Pilot Stabilisation plan and 24 were implementing agreed plans. Programme organisations have now completed their strategies for change and The programme uses quarterly review left the programme during 2002/03. meetings to monitor the implementation of recovery plans. The objectives of the Main Stabilisation Programme monitoring programme are to: ensure that Building on the lessons of the pilot the recovery plan is fully implemented within programme, the Arts Council launched a new the defined timescales; monitor progress programme in 1999. By the end of 2002/03, against the milestone plan and release the 20 organisations had been admitted to the agreed funds on their achievement; and programme. Only one is still developing its provide the organisations with the agreed strategy for change while 19 have received technical assistance in support of awards and are implementing their strategies. implementation.

138 Arts Council England annual review National Lottery report 2002/03 Financial Directions

All the organisations implementing their (I) The Arts Council of England (‘the Body’) agreed recovery plans are visited at least shall comply with the requirements four times a year for formal quarterly review contained within the Statement of meetings. Where we have identified concerns Financial Requirements attached as an about the implementation of the recovery Annex to these directions when carrying plan we make additional visits to monitor out its functions under Section 25 of the progress and to consider remedial action. National Lottery etc Act 1993 (‘the Act’) as amended by the National Lottery Act 1998 Six organisations have completed the recovery (‘the 1998 Act’). Wherever specified in that plan process and left the programme. We Annex, the Arts Council of England must expect that up to a further seven organisations obtain the consent of the Secretary of will leave the programme during 2003/04. State before carrying out certain activities.

We have commissioned a review of We confirm that, to the best of our achievements of the strategies for change knowledge, we complied fully with the and recovery plans of those organisations Financial Requirements in 2002/03. We that have: undertook a further update of our previous • left the programmes reviews to ensure that we were complying • progressed sufficiently with the with the requirements. implementation of their plans to allow a meaningful review to take place (II) The Arts Council of England shall devise and abide by a procedure for handling The review will cover between 20 and 30 potential conflicts of interest which may organisations. Its results will be used to arise in the evaluation of applications by prepare an evaluation of the Recovery and the Body or individual members of the Stabilisation Programmes and should be Body. This procedure, together with a available next year. statement confirming the arrangements that have been applied, should be provided Financial Directions to the Secretary of State for Culture, Under the National Lottery etc Act 1993, the Media and Sport (‘the Secretary of State’) Secretary of State issued Financial Directions before the distribution of any funds under to the Arts Council. The Directions are set Section 25 of the Act, and thereafter at out below. We confirm that, to the best of the beginning of each financial year. our knowledge, we complied fully with the Financial Directions in 2002/03. A copy of We have written procedures for dealing with the Statement of Financial Requirements is conflicts of interest. These procedures were available from us. amended with effect from 1 April 2002 to reflect the new organisation and the fact that staff, previously employed by the autonomous

Arts Council England annual review National Lottery report 2002/03 139 Performance against targets for administrative efficiency

Regional Arts Boards, were from that date whether a programme is appropriate for them. employees of the Arts Council. Note 19 As a result, we are receiving fewer ineligible in the lottery distribution accounts gives applications and rejecting a smaller number of information on related parties in 2002/03. applications. Although these applications did not take a lot of time to process and monitor, Performance against targets for the drop in the number of applications administrative efficiency results in an apparent increase in the cost of In accordance with the Financial Directions processing each one. We do not believe this issued by the Secretary of State, we operate is an accurate message and will be reviewing a system of performance measures and targets these performance measures for future years. for analysing our administrative efficiency. For 2002/03 there were only two such We also recognise that year on year formal measures in operation, relating to comparisons have limitations and must be the average processing time for applications viewed with caution. Our lottery programmes and the cost of processing applications. are responsive to needs and changes in patterns of activity, and therefore our As noted in previous years, a number of portfolio of activity has changed considerably recent programmes provide a relatively light- in recent years. touch approach, with a simplified application procedure and a reduced processing time. In particular, the volume of applications in These programmes, with comparatively high 2002/03 cannot be compared with previous levels of applications, can be unpredictable in years because of the change to Awards for All. terms of the number of applications received. In previous years applications to Awards for While the number of applications vary from All were allocated to individual distributing year to year, the costs of administration and bodies but with the start of the formal joint processing are not subject to the same scheme that procedure is no longer necessary fluctuations. or possible. In the review for 2001/02, over 1,500 applications were attributable to Awards We are aware that this is a relatively for All. The figures are amended for the basic performance measure. With recent previous year comparisons to remove this programmes we have tried to provide guidance high number of applications. for potential applicants that makes it clear

Performance measure 2000/01 2001/02 2002/03 2002/03 actual actual target actual

Average cost of processing each application £4,001 £6,636 £7,500 £7,790 Average time to process each application (work days) 63 71 65 59 For reference: Total number of applications processed 6,732 4,145 2,500 2,172

140 Arts Council England annual review National Lottery report 2002/03 Performance against strategic objectives

For the future, we will be introducing further our lottery activities. As part of a corporate performance measures which reflect the planning exercise, we have refined these outcomes that have been achieved using objectives and set specific and measurable lottery funds. As part of the development of targets for the future. The next report will our new corporate plan we sought to identify review how we have ensured a smooth indicators to cover both lottery and grant-in- transition through to the new corporate aid activities, and these will be reflected in objectives in Ambitions for the arts and further future reports. developed in the corporate planning exercise.

Performance against strategic objectives New work, experimentation and risk, and The lottery strategic plan highlighted our the centrality of the individual artist, creator commitment to use our funding to make or maker. a difference in increasing the quality of the This priority was fully reflected in the arts, as well as the opportunities for access guidelines and criteria for RALP and the to and participation in artistic activity National Touring Programme, with assessment throughout England. It explained that the of applications paying particular attention to best way to do this is to concentrate on the role of the artist, creator or maker. For a limited number of deliverable priorities example, the evaluation of RALP (discussed for the next three to five years. above) reveals that 83 per cent of the projects had resulted in the production of new work. The plan outlined how we had considered the needs identified in shaping our future This was also a key priority for the Arts Capital lottery programmes. In particular it identified Programme in terms of the importance of five strategic objectives: spaces allowing for innovative research and • new work, experimentation and risk, development and production for artists and the centrality of the individual artist, working in any art form. The provision of creator or maker training, development and lifelong learning • new art forms and collaborative ways of is a key means of supporting this priority working, often in or with new technology and this was reflected in support through • diversity and public inclusion with special RALP and the Arts Capital Programme. reference to race, disability and economic class New art forms and collaborative ways of • children, young people and lifelong learning working, often in or with new technology. • touring, and distribution through This was specifically identified as a priority in broadcasting, recording and electronic the Arts Capital Programme and over 12 of the publishing supported projects are related to this priority.

This section of the report considers how we The RALP evaluation revealed that a have met each of these priorities through significant number of projects which received

Arts Council England annual review National Lottery report 2002/03 141 Performance against strategic objectives continued support for organisational development Children, young people and lifelong learning. have been helped to establish or strengthen This priority is obviously at the heart of our partnerships and new collaborations. participation in the Spaces for Sport and Arts programme as well as our support for Youth New technology might be involved in Music. This clearly governs all of Youth many of the Youth Music-funded activities Music’s work, especially the Youth Music although one programme – Plug into music Action Zones. – is specifically designed for this area. Six of the organisations receiving support Diversity and public inclusion with special under the Arts Capital Programme are reference to race, disability and economic class. particularly concerned with this priority. The importance of this strategic priority was recognised through all the lottery programmes The importance of engaging young people in 2002/03. In addition, consideration was with the arts was identified as a priority in our given as to how we could best link our vision for partnership with local government. lottery spending with decibel – our initiative We will be considering how we can use our for raising the profile and developing the lottery funds towards this particular priority. infrastructure for culturally diverse arts in England. We tried to use our lottery funding Touring, and distribution through broadcasting, to raise awareness and capacity to assist recording and electronic publishing. organisations to be in a position to contribute Touring and distribution was of course the to decibel and it was agreed that we would fundamental objective of the National set specific targets for decibel-related Touring Programme. The criteria for the spending in 2003/04. programme include scrutiny of the nature of the relationship between the work and the The priority for cultural diversity in admission audience and with the venue – both factors to the Arts Capital Programme was reported which are critical in expanding access. last year. During 2002/03 work has continued with those organisations to assist in the RALP is also concerned with access and development of their capital projects. distribution, and the RALP evaluation endorses the achievements of this programme in During 2002/03 we worked with local relation to each of its objectives. government to develop a shared vision for partnership to guide us over the coming years. Youth Music’s objectives of access, breadth, The priorities identified are underpinned coverage and quality govern all of their by two shared values: social inclusion and funding and obviously relate to this priority, cultural diversity. We will be looking at how as well as those noted above. we can use our lottery funding programmes to reinforce these values.

142 Arts Council England annual review National Lottery report 2002/03 Progress report on major lottery awards over £5 million

Progress report on major lottery awards of the Almeida’s rehearsal and office over £5 million facilities. The theatre reopened in May 2003. This section reports on projects which have £4,305,879 paid (76.8% of the total award). received awards totalling over £5 million, even if involving a number of separate awards. Arnolfini It includes any projects which were active at Award: £7,817,371 1 April 2002 but fully paid during 2002/03 Purchase of the freehold of Bush House in and those with outstanding balances at 31 Bristol (listed Grade II*) and refurbishment March 2003. The totals reflect any changes of an otherwise inaccessible and cramped made to awards since the original decisions. space. The project will provide the Arnolfini Gallery with a fully accessible building with The projects are divided into three sections: new spaces, including education facilities A projects still to be completed at 31 March and new galleries. 2003 B projects opened/completed during 2002/03 £5,291,224 paid (67.7% of the total award). C projects opened/completed in previous years but with final payments still Bournemouth Symphony Orchestra outstanding at 1 April 2002 Award: £6,937,000 Stabilisation award to eliminate accumulated The awards are all for capital projects except deficit and to fund the costs of restructuring for five awards made under the Recovery or the company to reduce operating costs to Stabilisation Programmes – one of each of levels which can be covered by earned the awards to English National Opera and income and revenue grants. Birmingham Repertory Theatre, and the £5,909,891 paid (85.2% of the total award). awards to the Royal Liverpool Philharmonic, the Royal Shakespeare Company and the c/PLEX Bournemouth Symphony Orchestra. Award: £22,373,885 Development of a major landmark building A Projects still to be completed to house innovative, community-focused arts at 31 March 2003 practice with an emphasis on digital Almeida Theatre Company technologies. Based on the 25-year track Award: £5,607,161 record of Jubilee Arts, the building is also seen Refurbishment of the Almeida Theatre, as the central element of the regeneration London to repair the fabric of the theatre and strategy for West Bromwich. Since the end foyer to make it safer and more congenial, of 2002/03 the organisation has changed keep it licensable, and remedy significant its name to The Public Building Limited. features of discomfort and inaccessibility. Part of the award was also for the purchase £10,255,929 paid (45.8% of the total award).

Arts Council England annual review National Lottery report 2002/03 143 Progress report on major lottery awards over £5 million continued

English National Opera Royal Albert Hall Award: £20,167,011 Award: £20,200,000 Capital award to refurbish and develop the Improvements for audience and performers, London Coliseum to improve facilities in front including access provision. This is a joint award and back-of-house and to satisfy licensing with the Heritage Lottery Fund (£20.18m). requirements. Significant self-generated income has been put towards the project by the Royal Albert Hall. £11,766,379 paid (58.3% of the total award). £19,599,888 paid (97% of the total award). Hackney Empire Award: £7,801,337 Royal Liverpool Philharmonic Society The restoration and upgrade of a Grade II* Award: £9,499,000 listed Matcham theatre and its facilities, and Stabilisation award to eliminate accumulated the demolition and rebuild of an adjacent deficit, to reach agreement with Liverpool City building into the complex. Council on the future funding of Philharmonia Hall, to recruit a new chief executive and £6,007,662 paid (77% of the total award). other senior management posts, and to cover transitional operational costs. The Junction CDC Award: £5,229,608 £7,588,807 paid (79.5% of the total award). Amalgamation of Junction music venue with Cambridge Drama Centre to create a single Royal National Theatre multi-artform facility including a new 200-seat Award: £31,590,000 flexible arts auditorium, second auditorium, Refurbishment and redevelopment of the entrance foyer, rehearsal and digital studios, backstage and public areas, investment in new box office and administration offices. equipment and information technology, and refurbishment of the car park. Front-of-house £610,607 paid (11.7% of the total award). work was completed at the end of 1997.

Palace Theatre, Watford £27,323,536 paid (86.5% of the total award). Award: £5,272,568 A major refurbishment of the Palace Theatre, Royal Shakespeare Company Watford. This includes modifications to the Award: £8,608,000 foyers, auditorium, stage and backstage Stabilisation award to eliminate accumulated areas to provide better access, including deficit and to fund the costs of restructuring a lift to all floors and a deeper stage house, the company to reduce operating costs to together with a new flying and lighting levels which can be covered by earned income system and new seating. and revenue grants.

£1,736,545 paid (32.9% of the total award). £7,015,980 paid (81.5% of the total award).

144 Arts Council England annual review National Lottery report 2002/03 Progress report on major lottery awards over £5 million continued

SAGE (Gateshead Metropolitan contemporary visual arts centre. The main Borough Council) construction work started in September 1999 Award: £47,308,500 and BALTIC opened to the general public in A new landmark building on the bank of the July 2002. Significant partnership funding River Tyne which will provide concert and came from the Single Regeneration Budget rehearsal facilities; library and archive services; and Gateshead Metropolitan Borough Council. recording, publishing and communication £37,534,932 paid (90.7% of the total award). facilities; catering, retail and conference areas. It will be the new base for Northern Birmingham Repertory Theatre Sinfonia and Folkworks. Significant sources Award: £6,633,000 of partnership funding include Gateshead Stabilisation award to invest in epic productions Metropolitan Borough Council and the Single creating a niche market to increase audiences, Regeneration Budget. and to promote studio theatre for new writing. £24,407,186 paid (51.6% of the total award). Also to support investment in marketing, fundraising and technology systems, and South Bank Centre to eliminate accumulated deficits. Award: £26,124,733 £6,633,000 paid (100% of the total award). Development of the Royal Festival Hall through improvement to existing foyers and renovation English National Opera of auditorium, access improvements, improved Award: £9,200,000 natural acoustic and improved box office Stabilisation award to eliminate accumulated facilities. Also, extension to frontage of the deficit and invest in planning systems for Hayward Gallery including improved foyer, education, conference and outreach facilities. productions, increasing audiences, new technology, and essential capital work to £4,111,833 paid (15.7% of the total award). stage and front-of-house.

£9,110,207 paid (99% of the total award). B Projects opened/completed during 2002/03 Hampstead Theatre After a project has been completed and opened, the Council retains a percentage of Award: £10,942,478 the award for payment until a full account Development of the new theatre with a for the project has been received and/or final flexible 300-seat auditorium, education and certificates have been issued. workshop space, and cafe. This is a key element of the development of the Swiss BALTIC, The Centre for Contemporary Art Cottage site in north London. Opened in (Gateshead Metropolitan Borough Council) February 2003. Award: £41,385,000 £10,015,735 paid (91.5% of the total award). Conversion of the Baltic Flour Mills into a

Arts Council England annual review National Lottery report 2002/03 145 Progress report on major lottery awards over £5 million continued

Laban Centre for Movement and Dance Poole Arts Centre Award: £14,701,538 Award: £7,300,000 Development of a landmark building as part A major refurbishment and redevelopment of the Creekside area in Deptford, south scheme, including the concert hall and a London. It includes dedicated community new, flexible performance space. The existing facilities, a 300-seat theatre, studios and cinema and gallery were also upgraded. The movement therapy areas, a cafe and scheme had significant practical and financial information resource centre. The centre support from the Borough of Poole. Opened opened in February 2003. to the public in October 2002.

£13,280,725 paid (90.3% of the total award). £7,052,883 paid (96.6% of the total award).

Liverpool Empire Theatre C Projects opened/completed in previous (Empire Theatre (Merseyside) Trust Ltd) years but with final payments still Award: £7,630,000 outstanding at 1 April 2002 Major refurbishment of auditorium, front-of- After a project has been completed and house and backstage areas, with development opened, the Council retains a percentage of of adjoining building to improve access. the award for payment until a full account The theatre reopened after the completion for the project has been received and/or final of Phases I and II at the end of May 2002. certificates have been issued. Significant partnership funding from Apollo Leisure, European Regional Development Fund, The Arc (previously Dovecot Arts Centre) and the Foundation for Sport and the Arts. Award: £7,484,432 Creation of a new arts centre in Stockton- £7,016,233 paid (92% of the total award). on-Tees which opened in January 1999. London Symphony Orchestra (LSO) Significant partnership funding from Award: £5,733,080 Stockton City Challenge, European Regional Rebuilding and conversion of the 17th Development Fund and English Partnerships. century St Luke’s Church in the City of The Arc went into liquidation in November London, to provide a long-term base close to 2001. A new company and registered LSO’s Barbican home venue for its rehearsal charity, Stockton Arts Centre Ltd (SAC), was needs and ‘Discovery’ education programme. formed in January 2003. SAC entered into a Significant partnership funding from the short-term licence to occupy until a full asset Heritage Lottery Fund, Jerwood Foundation transfer is completed. A public relaunch took and commercial banking group UBS. The place in September 2003. building opened in March 2003. £7,428,630 paid (99.2% of the total award). £4,356,274 paid (76% of the total award).

146 Arts Council England annual review National Lottery report 2002/03 Progress report on major lottery awards over £5 million continued

Birmingham Hippodrome The Grand Theatre, Wolverhampton Award: £24,000,000 Award: £6,085,000 Refurbishment and expansion of the Refurbishment of Grade II* listed theatre to Birmingham Hippodrome as a major lyric improve facilities for audiences, performers receiving house and base for Birmingham and for productions. Completed in December Royal Ballet and DanceXchange. Significant 1998. Significant partnership funding came partnership funding from European Regional from the European Regional Development Development Fund and Birmingham City Fund and Wolverhampton Metropolitan Council. Opened in November 2001. Borough Council.

£23,399,998 paid (97.5% of the total award). £6,085,000 paid (100% of the total award). The final payment was made during 2002/03. Birmingham Repertory Theatre Award: £6,609,027 Interchange Studios (Hamden Trust) Towards a range of significant health and safety Award: £5,399,000 works required to keep the theatre open. The purchase and conversion of Hampstead Improved access has been provided but this Town Hall into an arts centre. Relocating will also be the focus of a second phase of Interchange’s activities and those of its tenants the project (non-lottery funded). This work to improved facilities. The scheme was jointly was completed in September 1999. funded by the Arts Council and the Heritage Lottery Fund, and includes an auditorium £6,609,027 paid (100% of the total award). with bleacher seating, two dance studios, an The final payment was made during 2002/03. atrium exhibition space, music room, offices, meeting rooms, a cafe and restaurant space. Brighton Festival Society The centre opened in July 2000. Award: £17,899,898 £5,399,000 paid (100% of the total award). Refurbishment and restoration of the Dome The final payment was made during 2002/03. Concert Hall and Corn Exchange performance venue, and the addition of new facilities such as a cafe and foyer area. Work on the Corn Exchange was completed and the first performance took place in May 2000. The Dome Concert Hall opened in March 2002. Significant partnership funding came from the Single Regeneration Budget and Brighton & Hove Council.

£17,649,897 paid (98.6% of the total award).

Arts Council England annual review National Lottery report 2002/03 147 Progress report on major lottery awards over £5 million continued

London Borough of Newham National Centre for Popular Music Cultural Quarter (Music Heritage Ltd) Award: £13,828,599 Award: £11,354,498 Towards the final phase of the project The National Centre for Popular Music opened including the Stratford Circus Arts Centre in March 1999. Due to operational difficulties, and the refurbishment and expansion of the it undertook a period of redevelopment and Theatre Royal Stratford East, which was the ownership was subsequently transferred completed in 2001. Significant partnership to Yorkshire Forward (the regional funding from the borough itself, English development agency). It is to continue Partnerships and City Challenge. to be used for broadly cultural purposes.

£12,395,648 paid (89.6% of the total award). £11,350,689 paid (99.9% of the total award).

Lowry Centre (Salford City Council) National Glass Centre, Sunderland Award: £50,100,000 Award: £6,947,000 To develop a major performing and visual This new build incorporated innovative use of arts centre as part of the regeneration scheme glass, reflecting Sunderland’s history in expert for Salford Quays. A joint award with the glass making. Exhibition spaces, workshops, Millennium Commission (£15.65m) and the training facilities, equipment and specialist Heritage Lottery Fund (£7.65m). Significant retail outlets have been provided. Significant partnership funding came from European support came from European Regional Regional Development Fund, Salford City Development Fund, English Partnerships and Council and English Partnerships. The centre One NorthEast. Opened in October 1998. was opened in May 2000. £6,947,000 paid (100% of the total award). £49,523,219 paid (98.8% of the total award). The final payment was made during 2002/03.

Milton Keynes Theatre and Art Gallery National Film & TV School (Milton Keynes Council) Award: £5,654,880 Award: £20,171,485 Towards essential works and re-equipping A new centre comprising a 1,330-seat the school at Beaconsfield, and for feasibility auditorium and a mixed media gallery within work on relocating the school to London. a broader city centre development which The work on the school is complete. provides car parking and box office facilities. £5,654,880 paid (100% of the total award). The centre opened in July 1999. Significant The final payment was made during 2002/03. partnership funding from English Partnerships/ Commission for New Towns.

£20,171,485 paid (100% of the total award). The final payment was made during 2002/03.

148 Arts Council England annual review National Lottery report 2002/03 Progress report on major lottery awards over £5 million continued

New Art Gallery Walsall The Place (Contemporary Dance Trust) Award: £15,750,000 Award: £5,690,446 Creation of a major new art gallery to house Expansion and refurbishment of the central the permanent Garman Ryan collection London building. This included new facilities and temporary exhibitions, and to provide for the school, new studio spaces and educational and artist facilities. It forms part improved access throughout, enabling The of a wider regeneration project around the Place to develop its work as a choreographic Town Wharf. The gallery opened in February and performance centre. The project was 2000. Significant partnership funding from completed in October 2001. Significant European Regional Development Fund and partnership funding from the Single Walsall Metropolitan Borough Council. Regeneration Budget.

£15,750,000 paid (100% of the total award). £5,452,040 paid (95.8% of the total award). The final payment was made during 2002/03. Royal Academy of Dramatic Art (RADA) Norden Farm Award: £26,146,851 (Norden Farm Centre Trust Ltd) Renovation and refurbishment of existing Award: £7,160,905 facilities, and purchase of adjoining premises Development of a new arts centre with to provide a modern, well-equipped teaching performance and cinema space, gallery, visual and learning facility. The award also included arts workshops, multimedia facilities and provision for the temporary relocation of bar. Significant partnership funding came RADA during the construction period. from the Royal Borough of Windsor and The building reopened in November 2000. Maidenhead. Opened in autumn 2000. £24,394,501 paid (93.3% of the total award). £7,058,996 paid (98.6% of the total award). Royal Court Theatre Ocean (Ocean Music Trust Ltd) (English Stage Company) Award: £14,493,567 Award: £21,159,031 Conversion of two landmark buildings in Redevelopment and upgrading of the Grade Hackney, London to house three performance II listed 395-seat theatre and 60-seat Theatre spaces, a music training and resource centre, Upstairs, with additional foyer, bar/restaurant rehearsal rooms and cafe/bar. Significant facilities. The award covered relocation costs partnership funding from the Single incurred during construction phase. The Regeneration Budget, the London Borough theatre reopened in January 2000. Significant of Hackney and European Regional partnership funding from Jerwood Foundation Development Fund. Opened in March 2001. and Cadogan Estates Partnerships.

£13,843,567 paid (95.5% of the total award). £20,950,988 paid (99% of the total award).

Arts Council England annual review National Lottery report 2002/03 149 Progress report on major lottery awards over £5 million continued

The Royal Exchange Theatre, Manchester Soho Theatre Company Award: £24,984,168 Award: £7,934,713 Restoration, refurbishment and expansion of Towards the purchase of property and design facilities following bomb damage. Reopened development for a writers’ centre, and for in December 1998. Significant partnership the conversion of the central London building funding from European Regional Development to house a 200-seat theatre, three studio/ Fund, the insurance claim and private sources. rehearsal spaces, workrooms, script library, offices and a restaurant/bar. The building £24,984,168 paid (100% of the total award). opened in February 2000. The final payment was made during 2002/03. £7,896,257 paid (99.5% of the total award). Royal Opera House Award: £78,500,000 Tate Modern (Tate Gallery Projects Limited) Redevelopment, restoration and refurbishment Award: £6,200,000 of Grade I listed building to provide improved Towards the Level 4 galleries and a proportion facilities for audience and performers, of the infrastructure costs of the conversion including a base for the Royal Ballet. The of Bankside power station into a major new award included some funds for relocation contemporary gallery. £50m was contributed costs during the construction period. The by the Millennium Commission towards a development appeal and private funders total estimated cost of £130m. The gallery provided two-thirds of the estimated total was opened with massive international costs of £241m. The Royal Opera House success in May 2000. reopened in December 1999. £6,200,000 paid (100% of the total award). £78,290,884 paid (99.7% of the total award). The final payment was made during 2002/03.

Sadler’s Wells Theatre Victoria Hall and Regent Theatre (New Sadler’s Wells Ltd) (Stoke-on-Trent City Council) Award: £47,275,496 Award: £16,500,000 Redevelopment of the central London theatre Refurbishment of two Grade II listed buildings to give first-class facilities for international within the Hanley Cultural Quarter. The Victoria dance and lyric theatre companies, together Hall reopened for concerts in November 1998 with improved studio, rehearsal and and the Regent Cinema opened as a theatre educational facilities. Opened in autumn 1998. for lyric and drama tours in September 1999. Significant partnership funding came from £46,811,215 paid (99% of the total award). the European Regional Development Fund and Stoke-on-Trent City Council.

£16,441,940 paid (99.6% of the total award).

150 Arts Council England annual review National Lottery report 2002/03 Council and regional council members, and executive board April 2002 – March 2003 Council East Midlands North East regional council Gerry Robinson (Chair) regional council Paul Collard (Chair) Sir Norman Adsetts OBE Stephen Lowe (Chair) Victoria Andrew MBE Tom Bloxham MBE Cllr Colin Bromfield Jonathan Blackie David Brierley CBE* Cllr Bryn Chappell Cllr Alex Cunningham Deborah Bull CBE Phil Cosker Cllr Fionna Davison Paul Collard Mimi Errington Cllr Neil Griffin* Emmanuel Cooper* Tina Glover MBE Cllr Mick Henry Deborah Grubb Cllr Robert Janes Cllr Peter Hillman Sue Woodford Hollick David Johnston Sarah Kemp Anish Kapoor* Norma Pearson Farah Khan Professor Alan Livingston Gavin Stride Cllr John Lauderdale Stephen Lowe Morcea Walker Helen Pickering Joanna MacGregor** Cllr Ernest White William Pym Sir Brian McMaster CBE Mark Scrimshaw Elsie Owusu OBE London regional council Sajjad Shah Dr Janet Ritterman* Sue Woodford Hollick (Chair) Cllr Robert Symonds William Sieghart Jennette Arnold Hilary Strong* *resigned July 2003 Cllr Angie Bray* Professor Stuart Timperley Cllr Lyn Brown Dorothy Wilson North West Emmanuel Cooper regional council *retired May 2002 Anupam Ganguli Tom Bloxham MBE (Chair) **resigned June 2003 Cllr Denise Jones Conrad Atkinson Nicolas Kent Kenneth Baird East regional council Wayne McGregor Keith Black Professor Stuart Timperley Cllr Bob Neill Cllr Warren Bradley (Chair) Kate O’Rourke Cllr Howard Briggs* Cllr Peter Byrne Cllr Joyce Ryan Graham Creelman Ruth Gould Dr Maggie Semple Nicholas Daniel David Knight Nabil Shaban Cllr Andy Graham Howard Raynor Graham Sheffield Trystan Hawkins Cllr Kath Robinson Cllr Laura Willoughby Anne Lavery Dr Abdul K Shakoor MBE Kari O’Nions *resigned March 2003 Cllr Edmund Sheehy Cllr Penny Otten Cllr Andy Shine Yasmin Shariff Professor David Vaughan Cllr Hazel Simmons Cllr Jean Yates Cllr Susan Wigglesworth

*resigned January 2003

Arts Council England annual review 2002/03 151 Council and regional council members, and executive board continued

South East regional council South West Yorkshire regional council Deborah Grubb (Chair) regional council Sir Norman Adsetts OBE Cllr Sajidah Chaudhary* Professor Alan Livingston (Chair) Cllr Maureen Christian (Chair) Janet Barnes Ruth Eastwood** Cllr Doris Ansari OBE Cllr Simon Butterworth* Simon Fanshawe Cllr Robin Bush Margaret Coleman Cllr Charles Findlay Cllr John Cole-Morgan Geraldine Connor Cllr Christina Freeman Sue Davies Susanna Eastburn Judy Panesar Harrison Cllr Stephen Friar Cllr Geraldine Gough Alan Haydon Cllr Jacqueline Harris* Elaine Hirst Darren Henley Moya Harris Cllr Susan Latter Penelope Marcus Ralph Hoyte Cllr Liz Minkin Kate Mosse Cllr Bernard Hughes Rachel Priestman Vayu Naidu-Banfield Dr Simon Olding Jonathan Sands Cllr Susan Prochak John C Struthers Dharambir Singh Katie Tearle Pippa Warin Cllr Martin Winter Elaine Thomas *resigned June 2003 *resigned January 2003 Stephen Turner Cllr Adrian Vinson West Midlands Cllr John Waddington regional council Executive board members Cllr Leslie Wicks Dorothy Wilson (Chair) Peter Hewitt Professor Susan Bassnett *resigned June 2003 (Chief Executive) Professor George Caird **resigned February 2003 Nick Capaldi Cllr Richard Chattaway Andy Carver Dr Michael Cullen Clive Caseley* Deirdre Figueiredo Andrew Dixon Tyrone Huggins Laura Dyer Cllr Ann Lucas* Michael Eakin Cllr Theresa Matthews** Kim Evans Alan McLean Keith Harrison Wanjiku Nyachae Felicity Harvest Cllr Nuala O’Kane*** Sally Luton Cllr Sheila Pittway Andrea Stark Paul Sutton Pauline Tambling Sarah Weir* *resigned June 2003 ** deceased September 2003 *appointed April 2003 ***resigned March 2003

152 Arts Council England annual review 2002/03 attendance at arts events

In 2002/03 the Target Group Index* survey The table shows that 39.1% of adults asked 20,746 adults in England whether questioned said they attend any performance they attend particular artforms ‘these days’. in a theatre – this category includes musicals and pantomime. This compares with 10.2 Percentage and number of adults who million people who said they attend plays and attend each of these artforms ‘these days’ 9.9 million who attend art galleries or art

2002/03 exhibitions. Attendances at the remaining % number five artforms were also high, ranging from in millions 5.3 million adults attending classical music Any performance performances to 2.2 million adults attending in a theatre 39.1 15.9 contemporary dance. Plays 25.0 10.2 Art galleries/art exhibitions 24.2 9.9 More detailed information on people Classical music 13.1 5.3 attending arts events, including breakdowns Ballet 7.2 2.9 by age and socio-economic status, is available Opera 7.0 2.8 in Arts in England: attendance, participation Jazz 6.5 2.6 and attitudes in 2001. This can be found on Contemporary dance 5.3 2.2 our website www.artscouncil.org.uk

© BMRB International – Target Group Index 2003 *This survey is conducted annually by BMRB International. The full survey consists of a representative sample of around 25,000 adults in England, Scotland and Wales.

Arts Council England annual review 2002/03 153 Arts Council England 14 Great Peter Street London SW1P 3NQ

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ISBN 0-7287-1002-1 © Arts Council England, January 2004

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Designed by GDA, Northumberland