OUNCIL I Annual Account~ I F-98 6.87
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OUNCIL I Annual Account~ I f-98 6.87 NT ' Secretary-General's Preface I Finance Director's Notes 3 Foreword 4 Arts Council of Great Britain Accounts 5 Scottish Arts Council Accounts 29 Welsh Arts Council Accounts 47 South Bank Chairman's Foreword 64 South Bank Board Accounts 65 SECRETARY-GENERAL'S PREFAC E Financially 1986/7 was not an easy year for completed for the hand-over of the the arts . Many arts organisations were Wigmore Hall to Westminster City Council staving off financial disaster, not because o f and the Serpentine Gallery to an lack of demand, but because the essentia l independent trust . core funding was no longer enabling them to fulfill that demand. For the Council itself, Last year's Annual Report referred to th e the responsibility of owning and running the very important and encouraging start we South Bank Centre was perhaps the made on The Glory ofW Garden, a strategy greatest challenge to come from abolition o f for a decade. At the end of its second year, the Greater London Council . the Council can be well pleased with many of the successful activities which have The Council has continued to put the resulted in partnership with local strongest possible case for increased authorities . In November 1987 the Council investment in the arts . The subject wa s reviewed the strategy at a two day meetin g keenly debated by delegates at an and has planned the next phase. international conference in March 198 7 when Lord Goodman passionately defende d In spite of many funding difficulties the the arm's length principle, so long the basi s Council tackles its responsibilities wit h of Britain's arts funding structure . enthusiasm and conviction . In spite of much criticism for almost any decision it takes , Following the publication of The Glory of th e the Council can . I believe, be encourage d Garden in 1984 the Council instigated its by the wealth of creativity and excitemen t own organisational review which had as one that permeates the artistic life of Britain . of its major recommendations the ending o f That is what makes it all worthwhile . Arts Council directly provided activities i .e . those areas, like the Hayward an d Serpentine Galleries and the Wigmore Hall hitherto run by the Council . The Hayward Gallery and touring exhibitions have no w moved to the control of the South Bank Board and negotiations have been Life Luke Rittner FINANCE DIRECTOR'S NOTES I S'I'ATEMEN'I' OF SURPLU S b) Education Hie accounts show that with a turnover of For the first time amounts of subsidie s £1313 million, including direct promotions , offered for educational activities are shown the Arts Council ended the year 1986/87 under education in note 6 to the accounts as with a net deficit of £752,269 . The Scottish opposed to the prior year 's practice of Arts Council showed a deficit of £169,224 , including these subsidies within other art the Welsh Arts Council a surplus of £9,65 9 forms. The total grants and guarantees and the South Bank Board achieved a offered for education purposes is £249,044 surplus of £173,648. in 1986187 as opposed to £203,041 in 1985/86. 2 The accumulated surplus disclosed in the c) Regional Arts Asso6ations Balance Sheet now stands at £2 .5m. This is The subsidies stated in note 6 to the required in part to meet the Council's ne t accounts for Regional Arts Associations , operating assets of £0 .49m and mi part to totalling £24,639,399, are the basic annua l provide £1 .0m towards funding clients an d subsidies . A further £3,302,976 was made operations in 1987/88 . Council has yet to available by the Council for a range an d consider how, if at all, the balance of the variety of schemes and activities and i s surplus should be utilised in future years , shown within the relevant category of having due regard to the severe cash activity in Schedule 1 to the accounts . restraints facing the Council . 3 Specific reserves 5 Ownership of the South Bank Estate was of £0.55m are detailed vested in the ACGB on 1st April 1986 unde in note 14 to the accounts of which the ar r t the 1985 Local Government Act . Include equalisation reserve will he transferred to d k the South Bank Board and the Serpentin in the balance sheet of the South Ban e Board under fixed assets is a calculation of Trust in due course. the depreciated replacement cost of th e Estate at £25m. 4 Schedule 1 to the accounts details th e grants and guarantees offered by the Art s Current statutory limitations on the use o f Council in 198fu87. Asterisks are provide d the estate mean, however, that this amount to indicate where the recipient receive d might not be realised in the event of the subsidy noted elsewhere in the schedule . disposal of the assets concerned . a1 Touring The Minister for the Arts has directed tha t The touring section of schedule 1 lists those depreciated replacement cost should be organisations which received subsidy for used in these accounts . touring only. Touring activities which are a part of a total annual programme of many music, dance and drama organisations ar e included in figures shown in those section s of Schedule 1 . FOREWORD 31 MARCH 1987 History and Review of activitie s The Council produces an internal staff The Secretary-General's preface includes a bulletin containing current news of interes t short review of the major events during th e to staff . t year. The Arts Council's Annual Repor A joint Negotiating Committee meet s containing an introduction from the regularly to discuss matters relating t o Chairman, a full preface from the Secretary - terms and conditions of employment an d General, departmental reports, articles on there are frequent informal managemen u current issues and full lists of Panels , union meetings at which similar matters ar e Boards, and Committees is published pursued. Union representatives may attend separately, and is available as a companio n for part of Directors' and Council volume free of charge. discussions on relevant matters and all staff are entitled to sit as observers at Counci l Employee communication s meetings (attendance regulated by ballot) . During; the year, arrangements have been continued to promote effective Employment polic y communications with all staff. All The Arts Council is committed to a policy of departments have regular staff meetings a t equality of opportunity in its employmen t which niatters relating to the Council' s practices. activities are discussed and staff are regularly briefed on the matters discussed In particular the Council aims to ensure that at Directors' meetings and Council . no potential or actual employee receive s Meetings of all staff are held periodically . more or less favourable treatment on th e grounds of race, colour, ethnic or nationa l origins, marital status, sex, sexua l orientation. disability or religious beliefs . The Arts Council of Great Britain INCOME AND EXPENDITURE ACCOUN T FOR THE YEAR ENDED 31 MARCH 1987 1987 I Income Parbarnentan grant iri a 2 135,600.000 Other income Vok 3 21,006 11355.0,0W6 Grants and guarantees accrued in previous year, not now required 223,221 135,844,227 Expenditure Administration of subsidies and services Staff costs Note 4 2,703,427 Depreciation Note 9 163.162 Operational costs Nob-, 5 LM. 1:t, - A 4,W,4% Grants and guarantees Note 6 128,105,w Other activities Note 6 487,067 "'2i 1"+' l Direct promotions - net deficit M* 7 IL 201,841M323 220 1 General expenditure on the arts in Britain 131,440.030 136,035,529 Operating surplu-si(defirit) (191.302) Interest receivable 323,565 Surplus for the financial year 132,263 Transfers (toWroin reserves Note 14 (347,019) Extraordinary item Note 15 (37 ,513) Net surplus/(deficit) Note 8 (252,269) Accumulated surplus brought forward 1713,9186 Accumulated surplus carried forward 2,461,71 7 The arts Council of Great Britain BALANCE SHEET AS AT 31 MARCH 198 7 1987 Y Fixed assets Tan~blea rtti ~rle 9 1'-2 .98 9 investments Note 1 0 3 .72 9 Loans to ciients .Vote 1 1 11j,wi 436,71 8 14 Current assets 5tocks :Gote1 2 417 .094 Debtors and prepayments Grant in aid receivable Note 2 11,874,08 4 Other 1,060,808 Grants and guarantees paid in advanc e 1,517,250 Cash at bank and in hand 237,25 1 15,1116,477 Current liabilities Grants and guarantees outstanding 8,384,730 Creditors : amount falling due within one year 1,647,829 Bank overdraft Scottish Arts Council, Welsh Arts Counci l and South Bank Board 2,467 .1x)0 12,499,559 Net current assets 2,606,91 8 Total assets less current liabilities 3,043,636 Financed by Provisions for iiabilJbes and charges : Indemnity pro%isions Note 13 33,900 Income and expenditure account 2,461,71 7 Reserves ;Vole 1 4 Art Equalisation Reserve 5f11,000 Othe r 47 .019 548,01 9 3 .1)43.636 William Rees-Mogg Chairma n Luke Rittne r Secretary-General 28 March 1988 The Arts Council of Great Britain SOURCE AND APPLICATION OF FUND S FOR THE YEAR ENDED 31 MARCH 198 7 1987 1986 V. Source of funds Surplus on ordinary activities 132,263 Adjustment for items not involving the movement of funds Transfers to provisions 7,650 Depreciation 251,40 9 (Profiull,oss on sale of fixed assets 8,901 Total generated from operations 399,823 Funds from other source s Proceeds of sale of fixed assets 13,580 Proceeds from extraordinary item 90,000 Repayment of loans by clients 10,000 10,W Application of funds Purchase of tangible fixed assets _ (176.603) Increase in working capital (36 .800 769.931 Components of mcrease in working capital Stocks (98,124) Debtors _ 514,836 Creditors (745.724) Movement in net liquid funds Cash at bank and in hand 665,812 336,800 NOTES TO THE ACCOUNTS AS AT 31 MARCH 1987 Y Accounting Policies b) Accruals conventio n c) Depreciation and fixed assets (i)All income and expenditure is taken int o Depreciation is provided on all tangible fixe d a) The financial statements are prepared account in the financial vear to which it assets at rates calculated to write off th e under the historical cost convention .