|
Registered number:
Charity number:
(A Company Limited by Guarantee)
For the Year Ended
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Manchester City Galleries Trust
(A Company Limited by Guarantee)
Contents
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Manchester City Galleries Trust
(A Company Limited by Guarantee)
Reference and Administrative Details of the Charity, its Trustees and Advisers
For the Year Ended 31 March 2025
Page 1
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Manchester City Galleries Trust
(A Company Limited by Guarantee)
Trustees' Report
For the Year Ended 31 March 2025
The Trust presents their annual report together with the audited financial statements of the Charity for the year 1 April 2024 to 31 March 2025. The Annual Report serves the purposes of both a Trustees' report and a directors' report under company law. The Trustees confirm that the Annual Report and financial statements of the charitable company comply with the current statutory requirements, the requirements of the charitable company's governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019).
Since the Trust and the Group qualifies as small under section 383 of the Companies Act 2006, the strategic report required of medium and large companies under the Companies Act 2006 (Strategic Report and Director's Report) Regulations 2013 is not required.
The Trustees who served in the year are listed below.
John Williams (Chair – resigned 6 December 2024)
James Mycock (Vice Chair – resigned 6 December 2024)
Stuart Paul Wood
Andrew Graham Palmer
Helen Jane Taylor O’Brien (Chair - appointed 6 December 2024)
Steven James Lindsay (appointed 6 December 2024)
Roger Francis Stephenson (appointed 17 May 2024)
Zoe Clair Dunbar
Viktoria Barillova
Objectives and activities
a. Policies and objectives
Manchester City Galleries Trust is an independent Trust raising money to support the projects and programmes of Manchester Art Gallery and Platt Hall.
The Trustees measure the success of the Trust by its financial performance, along with the Galleries' civic impact. The latter is reported to Manchester City Council Galleries Committee annually and this report, and feedback from the Committee, is shared with Trustees. Positive performance in turn provides additional resources for the Trust to further its objectives.
The Trustees confirm that they have complied with their duty under section 17 of the Charities Act 2011 to have due regard to the guidance on public benefit published by the Charity Commission. In planning the charity’s activities for the year, the Trustees have considered how those activities will contribute to the charity’s aims and objectives and deliver public benefit.
During the year the Trust had one trading subsidiary: Manchester Art Gallery Trading Company Limited (company number 04465391).
Manchester Art Gallery Trading Company Limited
This company operates the Manchester Art Gallery Café and venue hire business. Profits, when available, are gifted to the Trust. The Directors of this company are:
Amanda Susan Wallace
Robert Moss
Thom Hetherington (resigned 16 April 2025)
Paul Robert Hindle
Andrew Graham Palmer
Stuart Paul Wood
Diane Andrea Charlton
Page 2
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Manchester City Galleries Trust
(A Company Limited by Guarantee)
Objectives and activities (continued)
Robin Hawkes
b. Activities and achievements
∙Deliver capital projects;
∙Mount displays and exhibitions;
∙Preserve and conserve works from the collections of Manchester City Galleries;
∙Acquire works for its collections; and
∙Deliver an education, outreach and public programme of events and activities.
In December 2024 a payment of £149,469 was made from Trading Company profits to the Trust to support specific project activity in the gallery’s programme.
Major projects supported by the Trust in 2024/25 included:
Capital Work
Completion of major repairs at Queen’s Park Collections Stores and Conservation Studios. Improvements to improve the environment for the care of the Manchester Art Gallery’s collection of fine art, decorative arts and fashion and dress, including repairs to the roof and stonework, installation of a new heating system, removal of asbestos and lead paint and redecoration of collection storage spaces.
Completion of capital work at Manchester Art Gallery to create a new collection storage space in the lower ground floor, refurbished public toilet facilities and improvements to staff offices.
Exhibitions
Holly Graham: The Warp/The Weft/The Wake
An exhibition opened in March 2025 following a residency which began in summer 2023 exploring the colonial legacies inherent on Manchester’s textile collections. Funded by the University of the Arts London 20/20 Programme.
Unpicking Couture
Continuation of a display in the Fashion Gallery of Couture Fashion in Manchester’s collection, acquired between 2015-2020 with a Collecting Cultures grant from the National Lottery Heritage Fund.
Collections Development
Taking Stock
Continuation of the Taking Stock project, an open store of Manchester’s collection, decanted to Manchester Art Gallery while capital work was undertaken at Queen’s Park and opened to the public with funding from the National Lottery Heritage Fund. Part of a major 5 year project to reevaluate the collection and how it is used.
Manchester Contemporary Art Fund
Manchester Contemporary Art Fund 2024: a further iteration of the annual fund that brings together local business people to donate towards acquiring works for the Gallery collection from Manchester Contemporary at Manchester Art Fair. In 2024 the Fund raised £34,825.
Women’s Work Campaign
The Gallery acquired an artwork – Women’s Work by Florence Claxton – with funds raised through a fundraising campaign.
Engagement Programmes
The Derek Jarman Pocket Park
Created as a legacy of the Derek Jarman: Protest! Exhibition (which ended in April 2022) the garden, which was designed
Page 3
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Manchester City Galleries Trust
(A Company Limited by Guarantee)
Objectives and activities (continued)
and is maintained with a group of older LGBT+ volunteers in partnership with the LGBT+ Foundation, takes inspiration from Jarman’s garden in Dungeness. Installed as a temporary garden, it has proved popular as one of the few green spaces in our part of the city, and we have continued to maintain it.
Families of the World
A programme of activity sessions aimed at refugee families, many of whom are housed in hotels in the city. This programme of work was launched in response to the Syrian refugee crisis and now welcomes refugees from across the world who find themselves in Manchester. We have extended this work to run sessions both at the Gallery and in a hotel where families are housed.
Platt Hall In-Between
Continued work at Platt Hall, delivering collection-based activities for members of the hyper-local community. This year the focus has been on health & wellbeing and young people. A garden has been developed at Platt Hall, managed and maintained by a group of volunteers under the guidance of a paid Gardener.
Art of Resilience
Continuation of a programme of work with schools to support young people in a trauma-informed way.
Artist Teacher Programme
A programme of work to develop skills and confidence amongst art teachers in the city, using their own creative practice as a catalyst for developing their teaching.
Taking Stock Public Programme
A wide-ranging public programme taking advantage of having an open store situated within Manchester Art Gallery while capital work has been undertaken at Queen’s Park stores. This has included volunteering programmes, tours, specialist talks and activities with students.
Art in Schools
Using a historic loan collection which has been re-evaluated as part of Taking Stock, development of an art loan scheme for schools.
Fundraising
Main activities undertaken to further the Charity's purposes for the public benefit
a. Overview
2024/2025 has been a relatively successful year at a time when there is unprecedented pressure on Gallery budget and funders are reporting a higher than ever demand on their funds.
Onsite Donations
Cash and contactless on-site donations have remained relatively healthy. The addition of paid-for storage lockers has meant an uplift in on-site cash donations.
Page 4
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Manchester City Galleries Trust
(A Company Limited by Guarantee)
Main activities undertaken to further the Charity's purposes for the public benefit (continued)
Online Donations
Online donations, which saw a significant increase during and shortly after the pandemic, are not a significant area of individual giving. However, we have used this facility to accept donations for a campaign (acquisition of Women’s Work).
Friends and Patrons
Membership levels have remained relatively stable, although we have seen an increase in people purchasing an annual membership rather than setting up a Direct Debit so it will be important to monitor retention levels. Anecdotal evidence suggests people are generally moving away from using Direct Debits, perhaps a reflection of the current financial climate or changes in banking habits.
Early work is taking place to plan a re-naming of the Friends to ‘Manchester Art Gallery Members’ following some feedback from visitors that they do not understand the term ’Friends’ and that it feels outdated.
Patron membership increased by a small amount and ongoing work is happening to encourage recruitment and additional benefits added to Patron memberships. The Trustees have again been specifically tasked with introducing potential new Patrons.
Friends and Patrons enjoyed an extensive programme of in-person and online talks, tours, workshops and events. An expanding group of volunteers continue to support the delivery of the online and onsite programme. Plans are in place to launch a student membership.
Gifts from Individuals
The Manchester Contemporary Art Fund is a group of individuals who donate annually to enable the Gallery to acquire works for the collection from the Manchester Contemporary Art Fair. The scheme was set up and is managed by ex-Trustee and Director Thom Hetherington. In 2024/2025 the fund totalled £34,825 which supported the acquisition of a number of artworks from the 2024 Manchester Contemporary.
Legacies
Active promotion of legacies was undertaken during the year, with print produced and distributed. A legacy payment of £59,554 was received in the year.
Business Partners
We have seen a reduction in Business Partners this year with businesses citing a general re-think of charitable giving within the current financial landscape. A full re-assessment of the scheme is still required if membership is to grow, although with the current financial uncertainly amongst businesses, this is currently not a priority. Two in-kind Business Partners have been secured in the year who provide hotel rooms (The Alan) and paint (Little Greene).
Trusts and Foundations
The Development Manager’s time is focused almost entirely on grant-writing to fund planned activity. While Trusts and Foundations remain the most lucrative – and priority - area for fundraising, they are reporting a significant increase in the number of applications they are receiving and the current national success rate is around 10%. In addition, a number of Trusts and Foundations have announced imminent closure.
Page 5
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Manchester City Galleries Trust
(A Company Limited by Guarantee)
Main activities undertaken to further the Charity's purposes for the public benefit (continued)
Staff
The team still has low capacity given the size of the organisation and annual budgets but there is an acceptance that this will not change. In order to address this, the Head of Development and Development Manager continue to have support from members of the Learning and Engagement, Curatorial and Visitor teams in making additional grant applications and encouraging on-site donations. A programme of workshops to support wider gallery staff in grant-writing, budgeting, donor management and on-site donations has begun this year.
The Development Manager (full-time), Friends Coordinator (full-time) and Head of Development (part-time) are employed by Manchester City Council. In addition, a freelance accountant works for the Trust on flexible hours.
b. Priorities for fundraising 2025/2026
Given the cost of living crisis and likely financial situation we continue to face in 2025/2026, the focus will continue to be on stabilisation of existing priority activities, budget-relieving and unrestricted income. In addition to securing public funding and making Trust and Foundation applications, we continue to focus on philanthropy, building on the commitment we have seen from our Friends and Patrons schemes and developing our relationships with individual donors.
Priority will be given to securing funding to support:
∙Capital work at Platt Hall with a focus on improving security, visitor facilities and access. This will ensure that we address long-term neglect of the building and respond to increased anti-social behaviour in the surrounding park.
∙Core costs and delivery of Strategic and Operational Plans. Continuing to make our charitable and educational activity more visible, promoting civic philanthropy and the need for committed Patrons and unrestricted gifts.
∙The ongoing development Platt Hall’s programme. Revenue fundraising to support the hyper-local engagement at Platt Hall and to meet the high demand for activity through increased staffing and programme development.
∙Legacy work from Taking Stock including continuation of volunteering programmes and Art in Schools.
∙All aspects of the Learning and Engagement programme including Families of the World, Derek Jarman Garden volunteer programme, Art of Resilience, work with young people and supplementary schools, exhibition related learning and engagement programmes.
Page 6
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Manchester City Galleries Trust
(A Company Limited by Guarantee)
Financial review
a. Overview
During the year ended 31 March 2025 the Group’s income amounted to £1,582,274 (2024: £1,762,115). The Group's expenditure for the year ended 31 March 2025 amounted to £1,342,607 (2024: £1,451,340). The net surplus for the year amounted to £239,667 (2024: £310,775).
As at 31 March 2025 the Group had total funds of £2,030,785 (2024: £1,791,118), of which £659,009 were restricted funds (2024: £555,747). At the year end the Group held £2,499,696 in liquid assets (2024: £2,293,372).
As at 31 March 2025 the Trust had total funds of £1,952,190 (2024: £1,695,473) and £2,170,548 in liquid assets (2024: £1,836,607).
During the year ended 31 March 2025 Manchester Art Gallery Trading Company Limited reported a profit after tax of £8,622 (2024: £127,100) and as at 31 March 2025 the company had net assets of £39,101 (2024: £56,151).
b. Reserves policy
∙Charitable expenditure
∙Fixed costs
∙Unrestricted income
∙Restricted income
∙Working capital requirement
The Trustees aim to maintain a sufficient level of reserves to ensure continuing operations for the foreseeable future and that the Trust is able to meet its statutory and legal obligations.
Excluding designated funds and restricted reserves, the Trustees have concluded that reserves of £225,000 should be maintained. At year end, the Trust has free reserves of £272,143 over the amount to be maintained.
c. Going concern
d. Investment policy
During the year, the Trust invested a further £332,774 in a Virgin Money deposit account, leaving a total balance invested of £832,774.
Page 7
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Manchester City Galleries Trust
(A Company Limited by Guarantee)
Structure, governance and management
a. Constitution
Manchester City Galleries Trust is registered as a charitable company limited by guarantee and was established and is governed under a Memorandum and Articles of Association. The Articles for Association were updated during the year in line with the Charity Commission guidelines and to address issues around Member recruitment.
The Trust is a registered charity, charity number 1048581, with a registered office of Manchester Art Gallery, Mosley Street, Manchester, M2 3JL.
b. Methods of appointment or election of Trustees
The Directors/Trustees who served during the year are listed on page 2 of the annual report. The Directors/Trustees are elected annually by members in a general meeting.
c. Organisational structure and decision-making policies
The Trustees meet quarterly to review the financial position of the Trust and to guide progress against the Trust’s objectives.
The Directors of Manchester Art Gallery Trading Company Limited meet 6-weekly to review the trading results and monitor and determine the company’s future commercial objectives. The operational management of Manchester Art Gallery Trading Company rests with three key managers; the General Manager, the Trading Company Accountant and the Head of Commercial. These key managers attend and contribute to the Directors’ meetings. The remuneration of the operational management is set by the Board of Directors having regard to performance and the market rate for comparable roles.
d. Policies adopted for the induction and training of Trustees
e. Related party relationships
The Trust holds the entire issued share capital of Manchester Art Gallery Trading Company Limited and cooperates with Manchester City Council in pursuit of its charitable objectives.
Transactions between the Trust and Trading Company are shown in the accounts. Trading profits (when available and net of earlier deficits) of the Manchester Art Gallery Trading Company Limited have been gifted to the Trust.
f. Financial risk management
The Trustees have assessed the major risks to which the Trust and the Group are exposed, in particular those related to the
Page 8
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Manchester City Galleries Trust
(A Company Limited by Guarantee)
Structure, governance and management (continued)
operations and finances of the Trust and the Group, and are satisfied that systems and procedures are in place to mitigate our exposure to the major risks.
The principal risks affecting the Trust and the Group are the dependence on fundraising (grants, donations, memberships and sponsorship) and the popularity of the activities which in turn generates donation box income and retail income for the Manchester Art Gallery Café. The Trustees manage these risks for the Trust and the Group by regularly reviewing past financial performance, future financial projections and the potential opportunities that arise from the programme. In undertaking this review, the Trustees are assisted by professional staff employed by Manchester City Council.
The principal risks facing Manchester Art Gallery Trading Company Limited, which operates the Manchester Art Gallery Café and events business are:
∙Consumer spending. The company’s revenue is dependent on consumer spending which can reduce for a variety of reasons such as uncertainty, the general economic environment, competition and the weather. The company seeks to mitigate this risk by providing exceptional value for money, top quality food and drink and attentive service combined with an excellent location in the heart of Manchester. The main income generator for the Trading Company is events (corporate hire, celebration dinners, weddings, filming).
∙Food safety. Maintaining high food hygiene standards is critical to the company’s business. The directors and senior management take food hygiene very seriously and have implemented best practice operational procedures to ensure this risk is reduced.
∙Reputational risk. The directors and senior managers are conscious that, with the ever increasing use of social media, the reputation of the business can easily be damaged. The company seeks to provide a comprehensive customer experience which exceeds expectations. The directors monitor social media and respond where appropriate.
Other than continued fiscal pressures, the Trustees are not aware of any other factors that will impact the future performance of the Trust and the Group.
g. Funds
The funds held by the Trust are detailed in the notes to the financial statements.
Information on fundraising practices
Section 162a of the Charities Act 2011 requires charities to make a statement regarding fundraising activities. The Trustees confirm that all fundraising is managed internally without the involvement of commission driven external fundraisers or third parties. The routine management of income generation rests with the Gallery’s Head of Development. In general, fundraising activities are directed towards individuals and organisations that are already involved in the work of the galleries or who have expressed an interest in becoming involved.
h. Public benefit
The Trust is established for the advancement of the education of the citizens and other residents of the City of Manchester in particular, and of other citizens and residents of the United Kingdom in general, in British and foreign history of the Arts, and for the benefit of scholars in the Universities and local, national and foreign researchers in history of the Arts.
The Trustees confirm that they have referred to the Charity Commission's guidance on public benefit when reviewing the Trust’s aims and objectives and in planning future activities and services.
The Trust currently achieves its objectives by raising funds to support the Galleries’ programme of exhibitions and educational activities, capital projects, and to fund acquisition of artworks for the collection.
In its support of Manchester City Galleries’ activities, the Trust contributes to the free access of the general public to Manchester Art Gallery regardless of their background. The Trust is of the view that any private benefit gained by the Trustees is incidental.
Page 9
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Manchester City Galleries Trust
(A Company Limited by Guarantee)
Statement of Trustees' responsibilities
Disclosure of information to auditors
Each of the persons who are Trust at the time when this Trustees' Report is approved has confirmed that:
∙so far as that Trustee is aware, there is no relevant audit information of which the charitable group's auditors are unaware, and
∙that Trustee has taken all the steps that ought to have been taken as a Trustee in order to be aware of any relevant audit information and to establish that the charitable group's auditors are aware of that information.
Auditors
The auditors, Hurst Accountants Limited, have indicated their willingness to continue in office. The designated Trust will propose a motion reappointing the auditors at a meeting of the Trust.
Approved by order of the members of the board of Trust and signed on their behalf by:
Page 10
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Manchester City Galleries Trust
(A Company Limited by Guarantee)
Independent Auditors' Report to the Members of Manchester City Galleries Trust
We have audited the financial statements of Manchester City Galleries Trust (the 'parent charitable company') and its subsidiaries (the 'group') for the year ended
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
In auditing the financial statements, we have concluded that the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group's or the parent charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.
Page 11
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Manchester City Galleries Trust
(A Company Limited by Guarantee)
Independent Auditors' Report to the Members of Manchester City Galleries Trust (continued)
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The Trustees are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Trustees' Report including the Strategic Report for the financial year for which the financial statements are prepared is consistent with the financial statements.
∙the Trustees' Report and the Strategic Report have been prepared in accordance with applicable legal requirements.
In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' Report including the Strategic Report.
We have nothing to report in respect of the following matters in relation to which Companies Act 2006 requires us to report to you if, in our opinion:
∙the parent charitable company has not kept adequate and sufficient accounting records, or returns adequate for our audit have not been received from branches not visited by us; or
∙the parent charitable company financial statements are not in agreement with the accounting records and returns; or
∙certain disclosures of Trustees' remuneration specified by law are not made; or
∙we have not received all the information and explanations we require for our audit.
As explained more fully in the Trustees' Responsibilities Statement, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
Page 12
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Manchester City Galleries Trust
(A Company Limited by Guarantee)
Independent Auditors' Report to the Members of Manchester City Galleries Trust (continued)
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Identifying and assessing potential risks related to irregularities
In identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:
∙The nature of the industry and sector in which the company operates; the control environment and business performance including key drivers for directors' remuneration, bonus levels and performance targets.
∙The outcome of enquiries of local management and parent company management, including whether management was aware of any instances of non-compliance with laws and regulations, and whether management had knowledge of any actual, suspected, or alleged fraud.
∙Supporting documentation relating to the Company's policies and procedures for:
- Identifying, evaluating, and complying with laws and regulations
- Detecting and responding to the risks of fraud
∙The internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations.
∙The outcome of discussions amongst the engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.
∙The legal and regulatory framework in which the Company operates, particularly those laws and regulations which have a direct effect on the financial statements, such as the Companies Act 2006, pensions and tax legislation, or which had a fundamental effect on the operations of the Company, including General Data Protection requirements and Anti-bribery and Corruption.
Audit response to risks identified
Our procedures to respond to the risks identified included the following:
∙Reviewing the financial statements disclosures and testing to supporting documentation to assess compliance with the provisions of those relevant laws and regulations which have a direct effect on the financial statements.
∙Discussions with management, including consideration of known or suspected instances of non-compliance with laws and regulations and fraud.
∙Evaluation and testing of the operating effectiveness of management’s controls designed to prevent and detect irregularities.
∙Enquiring of management about any actual and potential litigation and claims.
∙Performing analytical procedures to identify any unusual or unexpected relationships which may indicate risks of material misstatement due to fraud.
Page 13
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Manchester City Galleries Trust
(A Company Limited by Guarantee)
Independent Auditors' Report to the Members of Manchester City Galleries Trust (continued)
We have also considered the risk of fraud through management override of controls by:
∙Testing the appropriateness of journal entries and other adjustments, and identifying accounting transactions which may pose a heightened risk of material misstatement, whether due to fraud or error.
∙Challenging assumptions made by management in their significant accounting estimates, and assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and
∙Evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.
There are inherent limitations in the audit procedures described above, and the further removed non-compliance with laws and regulations are from the events and transactions reflected in the financial statements, the less likely we would become aware of them. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.
This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and its members, as a body, for our audit work, for this report, or for the opinions we have formed.
for and on behalf of
Chartered Accountants & Statutory Auditors
3 Stockport Exchange
Stockport
SK1 3GG
Page 14
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Manchester City Galleries Trust
(A Company Limited by Guarantee)
Consolidated Statement of financial activities (incorporating income and expenditure account)
For the Year Ended 31 March 2025
Page 15
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Manchester City Galleries Trust
(A Company Limited by Guarantee)
Registered number: 03053689
Consolidated Balance Sheet
As at 31 March 2025
The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.
The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:
Page 16
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Manchester City Galleries Trust
(A Company Limited by Guarantee)
Registered number: 03053689
Charity Balance Sheet
As at 31 March 2025
The Charity's net movement in funds for the year was £
The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:
Page 17
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Manchester City Galleries Trust
(A Company Limited by Guarantee)
Consolidated Statement of Cash Flows
For the Year Ended 31 March 2025
Page 18
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Manchester City Galleries Trust
(A Company Limited by Guarantee)
Notes to the Financial Statements
For the Year Ended 31 March 2025
Manchester City Galleries Trust is a company limited by guarantee, registered number 03053689, incorporated in England. It is also a charity, registered number 1048581. The registered address is Manchester Art Gallery, Mosley Street, Manchester, M2 3JL.
The principal activity of the group is raising money to support the projects and programmes of Manchester City Art Gallery. The members of the company are the Trustees names on page 1. In the event of the Charity being wound up, the liability in respect of the guarantees is limited to £1 per member of the Charity
2.Accounting policies
The Consolidated Statement of Financial Activities (SOFA) and Consolidated Balance Sheet consolidate the financial statements of the Charity and its subsidiary undertaking. The results of the subsidiary are consolidated on a line by line basis.
The Charity has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Financial Activities in these financial statements.
The Charity meets the definition of a qualifying entity under FRS102 and therefore taken advantage of the disclosure exemption available to it in respect of its separate financial statements in relation to presentation of a cash flow statement.
In deciding to prepare the financial statements on a going concern basis, the Trustees have considered all
available information regarding the future for a period of at least 12 months from the date of approval of these financial statements. The Trustees are satisfied that the going concern basis adopted in the preparation of these financial statements is appropriate and that the Group can continue in operational existence for at least the next 12 months.
All income is recognised once the Charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.
Page 19
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Manchester City Galleries Trust
(A Company Limited by Guarantee)
Notes to the Financial Statements
For the Year Ended 31 March 2025
2.Accounting policies (continued)
Donated services or facilities are recognised when the Group has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use of the Group of the item is probable and that economic benefit can be measured reliably. In accordance with the Charities SORP (FRS 102), the general volunteer time of the Friends is not recognised. Refer to the Trustees' Report for more information about their contribution.
On receipt, donated professional services and facilities are recognised on the basis of the value of the gift to the Charity which is the amount it would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.
Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at
the time of the donation.
Income tax recoverable in relation to investment income is recognised at the time the investment income is
receivable.
Income from grants and government grants is recognised when the charity has entitlement to the funds, any
performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably.
Other income is recognised in the period in which it is receivable and to the extent the goods have been provided or on completion of the service. Revenue from the sale of food and beverages is recognised at the point of sale. Revenue from a contract to provide services is recognised in the period in which the services are provided in.
Page 20
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Manchester City Galleries Trust
(A Company Limited by Guarantee)
Notes to the Financial Statements
For the Year Ended 31 March 2025
2.Accounting policies (continued)
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Group; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.
Tangible fixed assets costing £NIL or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.
Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives.
Depreciation is provided on the following bases:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Consolidated Statement of Financial Activities.
Investments in subsidiaries are valued at cost less provision for impairment.
Current asset investments comprise term deposits maturing within twelve months of the balance sheet date. They are stated at cost, which approximates to fair value. Interest income is recognised on an accruals basis. At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in the statement of financial activities.
Page 21
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Manchester City Galleries Trust
(A Company Limited by Guarantee)
Notes to the Financial Statements
For the Year Ended 31 March 2025
2.Accounting policies (continued)
The Group operates a defined contribution pension scheme and the pension charge represents the amounts payable by the Group to the fund in respect of the year.
Page 22
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Manchester City Galleries Trust
(A Company Limited by Guarantee)
Notes to the Financial Statements
For the Year Ended 31 March 2025
2.Accounting policies (continued)
Income is stated net of VAT where applicable. Expenditure is stated net of any recoverable VAT. Any irrecoverable VAT is recognised as a cost against the activity for which the expenditure is incurred.
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Critical accounting estimates and assumptions:
The Charity makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. There are no estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.
Page 23
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Manchester City Galleries Trust
(A Company Limited by Guarantee)
Notes to the Financial Statements
For the Year Ended 31 March 2025
Page 24
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Manchester City Galleries Trust
(A Company Limited by Guarantee)
Notes to the Financial Statements
For the Year Ended 31 March 2025
Page 25
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Manchester City Galleries Trust
(A Company Limited by Guarantee)
Notes to the Financial Statements
For the Year Ended 31 March 2025
Page 26
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Manchester City Galleries Trust
(A Company Limited by Guarantee)
Notes to the Financial Statements
For the Year Ended 31 March 2025
Page 27
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Manchester City Galleries Trust
(A Company Limited by Guarantee)
Notes to the Financial Statements
For the Year Ended 31 March 2025
Page 28
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Manchester City Galleries Trust
(A Company Limited by Guarantee)
Notes to the Financial Statements
For the Year Ended 31 March 2025
Page 29
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Manchester City Galleries Trust
(A Company Limited by Guarantee)
Notes to the Financial Statements
For the Year Ended 31 March 2025
Page 30
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Manchester City Galleries Trust
(A Company Limited by Guarantee)
Notes to the Financial Statements
For the Year Ended 31 March 2025
Page 31
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Manchester City Galleries Trust
(A Company Limited by Guarantee)
Notes to the Financial Statements
For the Year Ended 31 March 2025
Page 32
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Manchester City Galleries Trust
(A Company Limited by Guarantee)
Notes to the Financial Statements
For the Year Ended 31 March 2025
Page 33
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Manchester City Galleries Trust
(A Company Limited by Guarantee)
Notes to the Financial Statements
For the Year Ended 31 March 2025
Page 34
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Manchester City Galleries Trust
(A Company Limited by Guarantee)
Notes to the Financial Statements
For the Year Ended 31 March 2025
Page 35
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Manchester City Galleries Trust
(A Company Limited by Guarantee)
Notes to the Financial Statements
For the Year Ended 31 March 2025
Page 36
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Manchester City Galleries Trust
(A Company Limited by Guarantee)
Notes to the Financial Statements
For the Year Ended 31 March 2025
21.Analysis of net assets between funds (continued)
Page 37
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Manchester City Galleries Trust
(A Company Limited by Guarantee)
Notes to the Financial Statements
For the Year Ended 31 March 2025
The group operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the group in an independently administered fund. The pension cost charge represents contributions payable by the group to the fund and amounted to £9,822 (2024: £6,244). Contributions totalling £1,732 (2024: £1,689) were payable to the fund at the balance sheet date and are included in creditors.
The following was a subsidiary undertaking of the Charity:
The financial results of the subsidiary for the year were:
Page 38
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||