Lakeland ArtsAnnual Reportand Accounts 2016

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Charity Number

1153001

Company Number

8162578

Principal Office

Abbot Hall, Kendal, Cumbria, LA9 5AL

Trustees

Martin Ainscough BSc DL

Henry C F Bowring MA JP DL

Anthea Case CBE BA FRSA

Michael Clarke CBE FRSE

Anthony R Collinson

Charles Crewdson OBE JP

Susan Crewe

Sarah Dunning OBE

Charlie Gere MA PhD

Martyn Heighton MA (Cantab) DEd AMA (to 6 November 2016)

John Hudson FREng

Sara Keegan

Elizabeth (Pit) Rink BSc MPhil

Bronwen Riley (from 11 November 2016)

Nicholas Thompson (from 20 May 2016)

Officers

Gordon B Watson BA AMA

Bankers

Barclays Bank plc,

9 Highgate, Kendal, Cumbria, LA9 4DF

Solicitors

JWK

5/7 Skipton Street, Morecambe, Lancashire, LA4 4AW

Investment Advisors

Sarasin & Partners LLP

Juxon House, 100 St Paul’s Churchyard

London, EC4M 8BU

Auditors & Accountants

Stables Thompson & Briscoe

Lowther House, Lowther Street

Kendal, Cumbria, LA9 4DX

Charity Information

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Contents

2 Charity Information

4-5 Introduction

6-23 Trustees’ Annual Report

(Including Directors’ Report)

24-25 Independent Audit Report

26 Consolidated Statement of Financial Activities for

2016

27 Consolidated Statement of Financial Activities for

2015

28 Consolidated Balance Sheet

29 Statement of Cash Flows

30-50 Notes Forming Part of the Financial Statements

51 Image credits

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Introduction to the Lakeland Arts 2016 Annual Report and Accounts

2016 was a very significant year for Lakeland Arts as it

featured a particularly strong programme of exhibitions at

Abbot Hall Art Gallery, construction of Windermere Jetty

reached the point where all the building structures were in

place and we started the re-instatement and repair of the

areas of Abbot Hall that were flooded in December 2015.

We began the year with the final six weeks of the

tremendously rich and popular exhibition Canaletto:

Celebrating Britain, which opened at Abbot Hall in October

2015. The exhibition was in partnership with Compton Verney

and included highly significant loans, particularly from the

Royal Collection. Abbot Hall was selected as one of three

galleries to be part of The National Gallery Masterpiece Tour to

show Rembrandt’s Self Portrait at the Age of 63, and we were

delighted to welcome Gabriele Finaldi, Director of the National

Gallery to open the display.

In the spring we showed Laura Ford: Seen and Unseen at

Abbot Hall and Blackwell, the Arts & Crafts House. Visitors

particularly enjoyed discovering the larger works outside

Blackwell, especially the cat-like creatures of Days of

Judgement prowling on the lower terrace.

The main summer show at Abbot Hall was Winifred Nicholson

in Cumberland which was curated by Jovan Nicholson, art

historian and the artist’s grandson, who also wrote the very

popular catalogue that accompanied the show.

A key theme of the year was developing understanding and

interpretation of the Lakeland Arts collections and the buildings

that we care for. New research and exhibition on the Annie

Garnett archive by Professor David Ingram and Dr Rachel

Roberts revealed the significance of her textile designs, the

way she used dyes and colours from her garden and how she

developed The Spinnery in Bowness. Through the Blackwell

Project we created new interpretation so that visitors can

discover more about the Arts and Crafts Movement, the

architecture of Blackwell and how the Holt family used the

house as their holiday home and retreat from Manchester.

Chris Keenan’s residency, supported by the Craft Potters

Association, resulted in new work in response to Blackwell in

his exhibition Houseplace and the very personal installation

“stuff i live with; stuff i love”. Displaying Christian Barnes’s A

Bathymetric Atlas took the form of a series of very memorable

performances in which the pages of the huge, hand-made

book were turned to show the hidden contours of the lakes in

the Lake District.

We welcomed an increasingly diverse audience from local

communities and visitors to a broad range of activities in

2016. We continued the Enriched by Moments programme

with people living with dementia and their carers and with the

support of Equal Arts, we were able to extend this from Kendal

to start a new group in Bowness. We developed our family

offer during the year with an emphasis through programmes

such as Art Camp on taking part in creative activities. The

Creative Age Challenge brought school children and older

people together in making activities that also supported the

dementia programme.

We particularly want to acknowledge the dedication of

the team who kept Abbot Hall open throughout the year,

despite the damage caused to parts of Abbot Hall by the

unprecedented flooding in December 2015. The team had to

deal with disruption and inadequate staff facilities through the

whole of 2016, as we had to close the lower ground floor and

relocate the café and other facilities outside while the building

fabric dried out and we started the essential repairs and flood

resilience measures.

The support of the Heritage Lottery Fund, Regional Growth

Fund and many trusts, foundations and individual donors

enabled Lakeland Arts to appoint the main contractor for

Windermere Jetty, Museum of Boats, Steam and Stories in

2015. By the end of 2016 it was possible to appreciate the

quality and scale of the Museum and how the designs by

Carmody Groarke architects will enable visitors to see the

internationally important collection of boats in the context of

the lake and surrounding Lake District fells. Windermere Jetty

is on a stunning site and the building structures both frame

the views and create the spaces for visitors to see boats in

the Exhibition, the Conservation Workshop and on water in

the Boathouse. Construction, though, is taking longer than

planned and we look forward to opening Windermere Jetty in

2018 and welcoming new audiences to come and enjoy the

Museum and experience going out on the lake in a heritage

boat or with Windermere Lake Cruises.

As we move towards the sixtieth anniversary of the foundation

of Lakeland Arts in 1957 and of the opening of Abbot Hall

in 1962, we want to record that so much of the success of

the trust is based on the support of our Benefactors, Patrons

and Friends and that over the past nearly sixty years many

hundreds of individual donors have contributed to Lakeland

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Arts. Your support has never been more important than

currently as we complete Windermere Jetty at a cost of

over £16 million and plan investment to restore Abbot Hall

and make it more welcoming and better equipped to show

major exhibitions and support a wide range of learning and

community activities.

The continuing grants from Arts Council England and South

Lakeland District Council, and the support of trusts and

foundations, including annual support from the Sir John Fisher

Foundation and the Lakeland Arts Support Trust, enables

Lakeland Arts to develop and plan future programmes with

confidence.

One way that you can support us is by remembering Lakeland

Arts in your will and leaving a legacy to support the future of

Lakeland Arts and continuing care and development of the

historic buildings and outstanding collections that are such an

important part of the heritage and vitality of Cumbria and the

North West.

Your gift could make a huge contribution to the future of

Lakeland Arts and local communities.

Thank you for your continuing support for Lakeland Arts

Martin Ainscough

Chair of Trustees

Gordon Watson

Chief Executive

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Trustees’ Annual Report (Including Directors’ Report)

The trustees are pleased to present their report together with

the audited financial statements of the charitable company for

the year ended 31 December 2016.

The trustees have adopted the provisions of the Statement of

Recommended Practice (SORP) “Accounting and Reporting

by Charities” (FRS 102) in preparing the annual report and

financial statements of the charitable company and its

subsidiaries.

1. Objectives and Activities

The principal objects of the charitable company are -

a. the advancement of the arts, culture, heritage or science

and for the conservation of the environment and heritage

of Cumbria and North Lancashire, including by: the

establishment and maintenance of public art galleries and

museums for the benefit of the public to include the care,

management and display of the permanent collections

of the trust established by declaration of trust dated 9

August 1957 and subsequently amended by multiple

deeds of variation and now known as ‘The Lakeland Arts

Trust’ and any other collections, groupings, displays or

individual items from any other body;

b. such other public charitable purposes tending to advance

artistic, historical or intellectual interests in the said area

which can conveniently be promoted in combination with

the purpose aforesaid; and

c. such other charitable objects as the company shall from

time to time determine.

The trustees confirm that they have referred to the guidance

contained in the Charity Commission’s general guidance on

public benefit when reviewing the charitable company’s aims

and objectives and in planning future activities.

Abbot Hall was opened as an art gallery in September 1962,

and has since built up an outstanding art collection and

created one of the strongest exhibition programmes outside

London.

In 1971 Museum of Lakeland Life & Industry was opened

in the coach house and stable block at Abbot Hall and

developed an important and extensive collection relating to the

social and industrial history of the Lake District and Kendal.

In July 2001 Blackwell, The Arts & Crafts House was opened,

a Grade 1 Listed building, in a stunning position above Lake

Windermere, looking across to the Coniston Fells. Designed

by MH Baillie Scott and completed in 1900, this is one of

the most important Arts and Crafts houses in the UK with a

national reputation for its programme of exhibiting historic and

contemporary crafts.

The charitable company is also responsible for Windermere

Jetty, Museum of Boats, Steam and Stories which has a

collection of steamboats, motor boats, yachts and rowing

boats described as “the most important and coherent

collection of watercraft generic to one location in existence

worldwide”. The charitable company is developing a new

world-class museum and tourist attraction designed by

Carmody Groarke architects and this is due to open in 2018

as Windermere Jetty, Museum of Boats, Steam and Stories.

The charitable company raises funds through retail and

catering outlets at Abbot Hall and Blackwell, which are

operated through a wholly owned trading subsidiary, Lakeland

Arts Enterprises Ltd. Further details of these activities are set

out in note 5 of the accounts.

All activities were transferred as a going concern from

Lakeland Arts Trust and as of 1 August 2013 were carried out

by the charitable company, which has a January to December

financial reporting year.

Lakeland Arts has a Strategic Plan 2014-18 to deliver the

charity’s objectives and the charitable company’s five strategic

priorities:

1. Deliver excellent artistic, heritage, learning and

engagement programmes of national and international

significance.

2. Create rewarding experiences for all our visitors and

users.

3. Ensure the resilience and sustainability of Lakeland Arts

and support Cumbria’s economy.

4. Invest in our staff and develop Lakeland Arts through

inspirational leadership and management.

5. Involve all in arts and heritage in new and inspiring ways

and contribute to the development of local communities.

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It was a great privilege to be chosen to take part in the

National Gallery Masterpiece Tour to show Rembrandt’s

magnificent Self Portrait at the Age of 63. The Masterpiece

Tour is part of the National Gallery’s commitment to promote

the understanding, knowledge and appreciation of Old Master

paintings to as wide an audience as possible. We showed

the work in a dedicated gallery and visitors enjoyed the

opportunity to spend time with such a wonderful and important

painting. At the same time we showed works from our own

collection including portraits of Lady Anne Clifford who was

alive at the same time as Rembrandt.

We showed an extraordinary exhibition of work by sculptor,

Laura Ford at Abbot Hall Art Gallery and Blackwell, The Arts &

Crafts House where larger works were located on Blackwell’s

lawns, with select pieces in the main house. At Abbot Hall,

the show comprised Ford’s earlier work together with new

sculptures and her drawings.

Laura Ford’s imaginative creations explore aspects of the

human condition. She describes her work as sculptures

dressed as people who are dressed as animals as they meld

together ideas of childhood memory with a disturbing edge.

Five years after the death of Lucian Freud, one of Britain’s

greatest figure painters, we showed the display centred

on three works acquired from the collection of Freud and

presented to Lakeland Arts through HM Government’s

Acceptance in Lieu scheme. Two of the works are by Freud’s

great friend, Frank Auerbach. These are characteristically

energetic drawings of the artist’s wife, Julia, executed with

his usual intensity and vigour. Uniquely, one of them is still

tacked to the drawing board. Freud liked it this way and had it

framed with pins and board intact. A third work acquired from

the Freud collection is a beautiful study of a nude, painted by

Michael Andrews.

The summer exhibition explored the creativity of Winifred

Nicholson (1893–1981) viewed through the paintings that she

made in Cumbria (or Cumberland as it was until 1972) where

she lived for large parts of her life. The show included over 40

2. Achievements and Performance

Exhibitions and Temporary Displays

Abbot Hall Art Gallery

• Canaletto: Celebrating Britain 22 October 2015 - 14 February 2016

• The National Gallery Masterpiece Tour: Rembrandt, Self Portrait at the Age of 63 19 March - 15 May 2016

• The Changing Face of Lady Anne Clifford 19 March - 15 May 2016

• Laura Ford: Seen & Unseen 11 March - 25 June 2016

• London Legacy: Auerbach, Andrews and Freud 25 May - 19 October 2016

• Winifred Nicholson in Cumberland 8 July - 15 October 2016

• People on Paper: Works from the Arts Council Collection 29 October - 17 December 2016

• Paul Jenkins 29 October - 17 December 2016

We started the year by continuing the exhibition of Canaletto’s

British paintings of 1746-55. The exhibition was in partnership

with Compton Verney and The Holburne Museum and we

were very grateful for the support of the Royal Collection and

for loans from the British Museum, Compton Verney and

Dulwich Picture Gallery and private owners.

Canaletto showcased not just traditional or established

views and landmarks but also his (and his patrons’) specific

celebration of new British architecture and, by implication, the

recent achievements of the British nation. This was the only

showing of this new exhibition in the North and it proved to be

a very popular show.

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• Laura Ford: Seen & Unseen 11 March - 4 September 2016

• Nicola Jarvis Studio Presents: The Art of Embroidery 26 May - 8 September 2016

• Houseplace: Chris Keenan 29 July - 9 October 2016

• Chris Keenan: “stuff i live with; stuff i love 29 July - 4 September 2016

• A Bathymetric Atlas of The English Lake District 10 - 17 September 2016

• Spinning the Colours of Lakeland: Annie Garnett’s Spinnery, Textiles and Garden 24 September 2016 - 29 January 2017

From Japanese Shino glazes to the purest Chinese porcelain,

white has always held a peculiarly tricky allure for artists and

craft makers. The Fifty Shades of White display brought

together a selection of vessels and ceramics from Lakeland

Arts’ collections, including modern makers from around

the world, such as Taiwanese potter Chun Liao, Danish

ceramicists Bodil Manz and Inger Rokkjaer, London-based

Japanese maker Nao Matsunaga, and master potter Edmund

de Waal.

Chris Keenan is a nationally and internationally recognised

potter known for his distinctive porcelain pots with their

combinations of tenmoku and celadon glazes. Houseplace

and “stuff i live with; stuff i love” were the result of Keenan’s

residency at Blackwell at the start of 2016.

For this installation, Keenan applied William Morris’s dictum -

“have nothing in your house that you do not know to be useful,

or believe to be beautiful” - and presented a selection of his

personal “stuff” which, from being looked at, handled, and

used, makes his domestic life better.

In a series of ceramic installations, Keenan explored and

responded to ‘this extraordinary and mind-consuming house

and the man behind its creation.’ The installations were

thoughtfully placed by Keenan throughout Blackwell echoing

areas of design and landscape which Keenan drew inspiration

from. An accompanying trail was produced for visitors.

paintings, including many works from private collections and

some of her best loved paintings. The exhibition was curated

exclusively for Abbot Hall by art historian Jovan Nicholson, the

grandson of the artist, and drew on new research, including

previously unseen archival material. Lakeland Arts published

the full colour catalogue of the exhibition.

Artists have been drawing the figure for centuries, from

carefully composed life drawings to people caught unaware

at leisure or work. People on Paper brought together some

of the finest examples from the Arts Council Collection and

had drawings by fifty artists including Charles Avery, Frank

Auerbach, Martin Bloch, Peter Blake, John Braby, John

Craxton, Peter de Francia, Lucian Freud, Antony Gormley,

Alistair Gray, Barbara Hepworth, David Hockney, Howard

Hodgkin, Gwen John, Leon Kossoff, Richard Hamilton, L

S Lowry, Henry Moore, Eduardo Paolozzi, William Roberts,

William Scott, Walter Sickert, Stanley Spencer and Euan

Uglow.

The exhibition of the internationally acclaimed American artist

Paul Jenkins (1923-2012) focused on a specially chosen

group of canvases including large-scale works and the

compelling and mysterious black and red Oracle triptych. Paul

Jenkins is as much identified with the process of controlled

paint-pouring and canvas manipulation as with the gem-

like veils of transparent and translucent colour which have

defined his work since the late 1950s and which gained him

prominence in New York and Europe. The exhibition was in

association with the Redfern Gallery, London.

Blackwell, The Arts & Crafts House

• John Harden Artist of Leisure 19 September 2015 – 28 February 2016

• The Baillie Scott Folio: House for an Art Lover 23 October 2015 – 11 May 2016

• Fifty Shades of White 15 January - 28 February 2016

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The ambitious show of Laura Ford’s sculptures was spread

across Abbot Hall and Blackwell and expanded on its previous

incarnation in Horace Walpole’s fabulously gloomy gothic

interiors at Strawberry Hill. Key works from all periods of Ford’s

career occupied the period spaces inside, while outside at

Blackwell Ford’s cats paced anxiously on the lower lawn, the

down-and-out urban cousins of some of Beatrix Potter’s best-

loved characters took up residence in the courtyard, and two

girls were frozen in the moment of their silent sorrows on the

south lawn.

This exhibition was originally conceived by Stephen Feeke,

Director of the New Art Centre, Roche Court, for Strawberry

Hill House, and was reconfigured with additional content

selected by Lakeland Arts in close collaboration with the artist.

Conceived and devised by artist Christian Barnes, A

Bathymetric Atlas, is a huge and unique hand-made book,

revealing the hidden contours of the principal lakes in the

Lake District. The work was shown, for the first time in

Cumbria at Blackwell. Its pristine white pages were turned by

volunteers, three times a day, during the exhibition, creating a

performance that revealed the layers and contours.

Annie Garnett (1864-1942) was a formidable designer,

gardener and entrepreneur whose textiles influenced the

revival of hand spinning and weaving in the Lake District. She

had a keen sense of colour inspired by the flowers in her

garden and landscape of the Lake District. She established

and managed The Spinnery in Windermere, which produced

beautiful textiles using traditional methods. This exhibition

showcased the treasures of the Annie Garnett Archive, held

at Museum of Lakeland Life & Industry, and told Annie’s story

through her own possessions and words. Rare autochromes,

photographs, diary entries, personal objects and textiles

combine to give a real sense of Annie Garnett and The

Spinnery. The show was co-curated with Professor David

Ingram.

Museum of Lakeland Life & Industry

• Yards of Industry: The Working Life of Kendal’s Yards 13 February - 3 September 2017

• Joseph Hardman: People on Film 17 September - 17 December 2017

The yards of Kendal are a unique part of the town’s history,

once bustling patches of life and industry they still shape the

distinctive feel of the town today. This display looked at the

history of these unique spaces, what it was like to live and

work in the yards and how they got their distinctive names.

This display showed many objects from the industries that

flourished in the yards.

Joseph Hardman was a prolific photographer who captured

an image of Lakeland life between the 1930s and the 1960s.

Museum of Lakeland Life & Industry holds over 5000 of his

original glass slides. This show brought together some of

these images to examine an aspect of Hardman’s work that

is often overlooked, his use of people as subjects. Hardman

is more famous for his stunning landscapes or the work

of shepherds, but people from all walks of life played an

important role in his photographs.

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Collections and Displays

Acquisitions

Acquisitions in 2016 to the permanent collections held by

Lakeland Arts Trust were:

Fine Art • Frank Auerbach, Reclining Head of Julia, 1994

(through the Government’s Acceptance in Lieu Scheme)

• Bardy Crewdson, Portrait of Mary Burkett

• Nicholas Volley, Jerome Street with Snow, 2005 (gift via the ArtFund)

• Nicholas Volley, Black Jug and Bust of Carl (gift via the ArtFund)

• Nicholas Volley, Tea Time (gift via the ArtFund)

• Paul Jenkins, Phenomena Lasting Glade

Decorative Art • Chris Keenan, ceramic tile inspired by the Blackwell

visitor book.

• Laura Ford, In Remembrance, 1998

Social History • Knitted blanket

• National Service Uniform from the 1950s

• A bristle hand brush

• Ephemera relating to Ibis Engineering

• 17 photographs of the Lake District from the 1950s

• Tin trunk from Howards Orphan Home in Kendal

• Paraffin iron

• Two Cumberland wrestling belts

• Herdwick wool skirt and jacket

Windermere Jetty • Thomas West, A Guide to the Lakes, 5th edition,

1793

• Shepherd’s boat builder’s costings notebook, 1916-1945

• LMS Handbill, Steamer Services, 1941

• Ephemera relating to the Windermere Ferry

• Woodworking tools

• Unpublished letter dating from 1945 from author Arthur Ransome to a local man. In it he describes his love of sailing, and a boat he had built at Arnside in 1934, almost certainly Coch-y-Bonddhu, which will be on display in the new Museum.

Loans In

The following items were generously loaned for display at

Blackwell, The Arts and Crafts house:

• Pilkington’s Tile and Pottery Company, 11 earthenware vases, c.1900. On loan from the Peter Scott Gallery, Lancaster University

• MH Baillie Scott, clock, c.1900. On loan from the Victoria and Albert Museum.

• Morris and Co. original embroidery design, Celandine and Lily. On loan from the William Morris Society

• Morris and Co. original wallpaper design, Grafton. On loan from the William Morris Society

• Morris and Co. daisy tile and diagonal leaf tile. On loan from the William Morris Gallery.

• Embroidered linen coverlet, c.1900-1920. On loan from Gawthorpe Textiles

• Bedspread. On loan from Paul Reeves

• MH Baillie Scott, drop leaf table, c.1900. On loan from Paul Reeves Antiques

• MH Baillie Scott, leather top writing table. On loan from Paul Reeves Antiques

These items were loaned for future display at Windermere

Jetty:

• Wooden model boat building parts. On loan from a private collection.

• 3 sailing dinghies (Swallow One and Two, and Amazon) from the 2016 film Swallows and Amazons. On loan from Harbour Pictures Productions.

• Pop up poster from the 2016 Swallows and Amazons film. On loan from a private collection.

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• Original shipbuilder’s model of the steam yacht Britannia. On loan from Glasgow Life.

• Painting of the ‘King of the Lake’ Col. Ridehalgh. On loan from the National Trust.

Collection Loans Out

We lent works to a number of exhibitions in 2016.

Spotlight Gallery ExhibitionTullie House Museum and Art Gallery: 7 November 2015 to 7 February 2016 • Joseph Francis Gilbert, Ullswater Head, Cumberland,

1834.

Barbara Hepworth: Sculpture for a Modern WorldTate Britain, London: 24 June 2015 – 25 October 2015Kröller-Müller Museum, Otterlo: 27 November 2015 – 17 April 2016Arp Museum, Remagen: 22 May 2016 – 28 August 2016 • Ben Nicholson, 1932 (crowned head – the queen),

1932

The English Rose Feminine Beauty from Van Dyck to Sargent The Bowes Museum: 14 May to 25 September 2016 • George Romney, Emma Hart as Miranda

Stanley Spencer: Of Angels and DirtThe Hepworth Wakefield: 25 June to 5 October 2016 • Stanley Spencer, Portrait of Daphne Charlton, 1941

LGBT History in CumbriaTullie House Museum & Art Gallery: 10-31 October 2016 • Percy Kelly, Millom, Cumberland, 1975

• Percy Kelly, Whitehaven Harbour, 1977

Winifred Nicholson: Liberation of ColourMiddlesbrough Institute of Modern Art: 21 October 2016 to 12 February 2017 • Winifred Nicholson, Amaryllis, 1967

Joan Eardley: A Sense of PlaceScottish National Gallery of Modern Art: 3 December 2016 to 31 May 2017 • Joan Eardley, Salmon Nets 1, 1961

• Joan Eardley, Children and Chalked Wall 2, 1963

• Joan Eardley, The Cornfield, 1962

Accreditation

Abbot Hall Art Gallery, Museum of Lakeland Life & Industry and

Blackwell, The Arts & Crafts House are Accredited museums.

In August Lakeland Arts submitted Accreditation Returns to

renew Accreditation and we are due to know the outcome in

2017.

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Learning and Community Engagement

Lakeland Arts provides high quality activities including creative

workshops for all ages throughout the year.

We ran activities at each half term across all three sites. This

included new activities at Blackwell, The Arts & Crafts House

for example in May children at Blackwell made stop motion

films inspired by the Laura Ford sculpture exhibition. The

Education Room was a hive of activity with 40 films made over

the course of the week.

Art Camp ran from 25 -29 July with 15 local children. Children

experienced the sites and art and heritage at Abbot Hall Art

Gallery and Blackwell and our Cumbria Museum Consortium

Partners at The Wordsworth Trust and Tullie House Museum

and Art Gallery. Children engaged in creative activity across

four sites and achieved an Arts Award Discover by the end

of the week. Three young people (aged between 16-18)

volunteered with Lakeland Arts for Art Camp and two of them

achieved Arts Award Gold. On day four of Art Camp the

children met ceramic artist Chris Keenan who gave a tour

of his installation and discussed how Blackwell had inspired

him. On the last day of Art Camp, the children mounted an

exhibition of their own art work in the Lakeland Arts Barn at

Abbot Hall; Chris Keenan opened the exhibition.

We staged an ambitious summer holiday programme across

Abbot Hall and Blackwell from 18 July – 2 September.

It involved a textile artist working with members of the

community to create two giant rag-rugs. Over 450 people took

part in the activity and the textile artist posted regular images

and messages on Lakeland Arts’ social media platforms. The

finished rugs will go on show at the new Windermere Jetty,

Museum of Boats, Steam and Stories.

In October, we ran a drawing and colouring competition at

Blackwell as part of Big Draw. We received 55 submissions

by visitors ranging from ages 3 to 90+. The illustrator, Sophie

Martin, selected winners in under and over 16 categories and

provided feedback for all entries on our family Facebook page.

At Abbot Hall, we commissioned a freelance artist to transform

the lower split level gallery into an artist’s studio and learning

resource space that links to the exhibition programme.

Lakeland Arts worked strategically in 2016 with local teachers

and Heritage Learning Lancashire to develop and refine new

schools programmes that align with the National Curriculum

and support teachers in the delivery of this in schools.

Dementia Programme – In the Moment

Lakeland Art’s Learning and Engagement team have

continued to deliver quality engagement activities in all

Lakeland Arts venues and around Kendal to support people

living with dementia. In 2016 we expanded this work to

include intergenerational activity and fundraising linked to the

sustainability of the In the Moment programme. Participants

took part in two national Creative Age Challenge fundraising

initiatives. The first Creative Age Challenge transformed

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Space2Create’s building walls into a garden made of flowers

created by participants and local school children; the garden

was a visual symbol of the possibility of living well with

dementia. Four local schools supported the Creative Age

Challenge, with children generating £500 sponsorship for In

the Moment participants.

The second Creative Age Challenge took place throughout

October. The central tenet of activity was to raise awareness

about the positive impact that creative activity can have on

people living with dementia and to help fundraise to sustain

the creative and cultural engagement work of In the Moment.

It was very strongly intergenerational. Local people knitted

and crocheted sheep and donated them anonymously to the

Hand Made Herd of Sheep. Over 450 people were involved in

making 700 sheep and raising over £1200 to support people

living with dementia and their carers. The initiative featured on

BBC North West Tonight.

Lakeland Arts’ Learning Officer, Anne-Marie Quinn, who led

the initiative received a Fellowship of the Royal Society of Arts

for what they describe as her ‘visionary work’ in using the arts

to support people living with dementia.

In September, the Learning and Engagement team delivered

sessions for Lakeland Arts’ staff to raise awareness of the

work the organisation delivers to enrich the lives of people

living with dementia, how it affects a wide range of people

and how they can become advocates for the Enriched

by Moments programme. This was part of Lakeland Arts

becoming a dementia friendly organisation.

Museums at Night

Blackwell hosted a dance for families as part of the national

Museums at Night initiative in May. The event engaged a

new and diverse audience with 40 people in attendance

plus a 5-piece folk band that played in the inglenook in the

Main Hall. Children ranged from under 3 to 12 years old and

the feedback was tremendous - the event was praised for

“bringing people from the community together.”

Windermere Jetty, Museum of Boats, Steam & Stories

The Esperance Programme is a range of projects aimed

at engaging schools with Windermere Jetty, the collection

and the building construction. Each project aimed to have

a tangible outcome that can be used or displayed at the

Museum when it opens. Each group had the opportunity to

work with a partner, whether that was an artist or our own

Conservation Boat Building team. During 2016 we worked

with six primary and secondary schools across six projects.

The Jetty on Tour programme in the school holidays allowed

us to engage with families and tell them about the Museum,

the family programmes that will be on offer and get feedback

on our plans for family provision at Windermere Jetty. For

Heritage Open Day we organised site tours at the Windermere

Jetty site. 145 people came to visit the site and were shown

the construction work and had a talk in the Conservation

Workshop about the boat conservation.

Volunteers

Volunteers make an invaluable contribution to Lakeland Arts by

giving time and expertise to support the work that we do, from

mounting exhibitions to restoring boats.

Many people come in regularly to help with caring for the

collections, completing tasks such as recording and marking

objects and researching them. The research develops

understanding of the collections their significance which is

then included in new displays and exhibitions. In 2016, this

resulted in the exhibition at Blackwell: Spinning the Colours of

Lakeland: Annie Garnett’s Spinnery, Textiles and Garden and

will result in 2017 in a new publication on Annie Garnett by

Professor David Ingram and Dr Rachel Roberts.

It is a delight to see the skilled work that volunteers put into

the restoration and care of the historic boats that are being

prepared for display at Windermere Jetty. This has included

drawing and making new engineering parts for the steam

boats and completing the restoration of the original engine for

the Chris Craft motor boat Jane.

Volunteer invigilators contributed well over 3,000 hours at

Abbot Hall which enabled us to show exhibitions and works of

art of national and international significance. This wouldn’t have

been possible without such tremendous support. Another

group of volunteers gave talks at the Gallery and led guided

tours of Blackwell.

Volunteers helped with activity and learning programmes

including holiday activities. Volunteers played a major role

in making the Creative Age Challenge so successful. Local

people knitted and crocheted sheep and donated them

anonymously to the Hand Made Herd at Museum of Lakeland

Life & Industry.

14 15

14 15

Development

Windermere Jetty, Museum of Boats, Steam and Stories

Thomas Armstrong continued with construction throughout

2016 following their formal appointment in October 2015.

By the end of the year, the building structures were all in

place and work had begun on walls and roofs. A number

of construction related issues were raised during the year

which resulted in delays to the construction and opening

programme.

The Learning team continued to develop the learning and

engagement programme that will be delivered when the

Museum opens. Pilot programmes included the highly

successful Esperance Project working with six schools across

the area.

Conservation work to the collection in preparation for the

Museum opening continued throughout 2016 with significant

work being undertaken to SL Osprey, SL Branksome and MV

Jane in addition to many of the smaller boats that will go on

display in the new museum.

Eleven of the 23 boats going on static display were cleaned

and prepared for exhibition in 2016:

1. Miss Windermere IV

2. Cookie

3. White Lady II

4. Borwick’s Skiff

5. Canfly

6. Kittiwake

7. Chris Applebee’s Hydroplane

8. 1898 Motorboat

9. Margaret

10. Sunderland Float

11. Dolly

Some objects were sent away for specialist conservation,

including the painted glass from the skylight which is the only

surviving part of the steam yacht Britannia. Objects returned

from conservation, included fragile leather work and the

1960’s diving suit worn by one of Dolly’s salvage team when

the boat was lifted from Ullswater.

The main areas of work in 2016 on SL Osprey (1902) were

varnishing and painting, making the engine and boiler covers,

fabricating engineering parts and installing equipment to

enable the boat to be operated on the lake after the Museum

opens. One set back was finding that the boiler needed

repairs and these were started in 2016.

SL Branksome will be displayed in the dry dock in the

Museum. When the panelling and seats were removed, we

observed significant areas of decay and poor historical repairs

in the bottom and lower parts of the boat. Repairs were

completed on the starboard side and progressed on the port

side, where the damage was less severe. A new stem was

installed and work started on the varnishing of the cabin and

other areas, with the aim of keeping the original patina as far

as possible.

MV Jane, an evocative 1930s motor boat, was repaired and

painted. The engine was fully restored by a volunteer.

The Blackwell Project: An Arts & Crafts Story

The Blackwell Project is generously supported by the Heritage

Lottery Fund and a number of trust, foundations and individual

donors.

In 2016, we completed the Arts and Crafts permanent

exhibition telling the story of the Arts and Crafts movement.

This was designed by Studio SP, Edinburgh and installed for

Easter. The exhibition features beautiful objects on loan from

the Victoria and Albert Museum, William Morris Society, William

Morris Gallery and private lenders and collectors.

Work progressed on the recreation of a Arts and Crafts

Master Bedroom, in the room that was originally the Master

Bedroom when the Holts occupied the House. Decoration of

the room was based on original paint scrapings and featured

paint from companies which Baillie Scott had used in his

career. The room featured a hand stenciled frieze based on

the Rowan tree and berries by Baillie Scott. Two new loans

of furniture by Baillie Scott were placed in the room alongside

a commissioned recreation of a bed by Baillie Scott in oak.

Additions for 2017 include an embroidered bed spread.

Other developments included:-

• A timeline detailing the history of Blackwell, the Holts and

Baillie Scott’s career in the entrance at Blackwell.

• New learning resources and interpretation to accompany

the Arts and Crafts Master Bedroom. The dressing room

off the master bedroom now has dressing up costume

linked to the clothes and activities that the Holt Family

enjoyed when they owned the house.

• A new orientation map and children’s trail.

• New drawings of Blackwell in the Tea Room to better

illustrate what is in the house to encourage tea room

patrons to visit the house.

• A room dedicated to the period when Blackwell was

a school, including oral history recordings of pupils

remembering their time at Blackwell and the head teacher

Miss Murphy.

16 17

Commercial Activities

Lakeland Arts Enterprises is Lakeland Arts’ wholly owned

trading subsidiary and all the net income supports the activities

of the charity.

Retail We introduced a number of new makers to the Blackwell Craft

Shop, which we carefully selected including from the British

Craft Trade Fair in Harrogate. New makers in 2016 included

Julie Fewster, Elin Isaksson and Penny Withers. Glassware

in the Blackwell Shop sold particularly well including many

key pieces. Biggest sellers in the Blackwell Shop were the

Blackwell Guide Book, Blackwell Mug, Stained Glass Greeting

Card and Postcard of Stained Glass in the Dining Room.

These helped us maintain healthy sales during 2016.

To mark the success and reputation of the Blackwell Craft

Shop we were awarded the Hudsons Highly Commended

Retail award for 2016.

The Art Wall in the Abbot Hall Shop continued to be a great

place in 2016 to find original affordable art. The Winfred

Nicholson catalogues sold well throughout the exhibition. A

small re-print was done towards the end of the exhibition and

the catalogue has also been bought by people not being

able to come to the exhibition and we sent out over 150

catalogues via mail-order.

Online sales of Joseph Hardman’s evocative photographs of

the Lake District helped boost sales at Museum of Lakeland

Life & Industry shop. We also introduced new books,

greetings cards, giftware and fabric makers products. In

spring 2016 the visitor route in the Museum was changed and

visitors now enter the museum where the shop is and they

exit in the glass entrance lobby. We have moved the large

printing press from the entrance lobby and replaced it with

newly decorated plinths displaying a variety of shop stock to

encourage visitors to enter the shop once they have finished

their visit.

CateringOverall, the Blackwell Tea Room had a steady year throughout

2016 and showed an increase in visitor numbers. The Tea

Room has an established group of local customers that come

regularly for lunch or afternoon tea.

Blackwell Tea Room hosted a number of special celebration

events in 2016 including Valentine’s Day lunches on 13

and 14 February, Afternoon Tea for Mothering Sunday, and

Christmas lunches. We sold 203 Christmas lunches in 2016,

an increase of over 50% on the previous years.

At Abbot Hall, flooding in 2015 resulted in the loss of our

permanent Coffee Shop throughout 2016. In June, the Fat Cat

Café popped up at the Abbot Hall and Museum site. The café

was a temporary facility to offer the visitors to Abbot Hall and

the Museum a better visitor experience. We went for a local

theme and sourced all the furniture, crockery and equipment

locally within Kendal (many items were kindly donated by

Friends of Lakeland Arts) the Tea Room kitchen at Blackwell

provided the Fat Cat Café with homebakes, cakes and mini

quiches.

Marketing and Communication

2016 marked a year of change for Lakeland Arts marketing

approach. We reviewed our marketing and communications

approach and developed a new Lakeland Arts Marketing

Strategy, revised our print and marketing materials, and

recruited a new marketing team for 2017.

As well as excellent local and regional press and media

coverage in 2016, Lakeland Arts received national coverage

for Laura Ford in Art Quarterly Spring 2016, Guardian Guide,

and I (Independent). Winifred Nicholson was featured in

Historic House Magazine Autumn 2016 and Galleries

Magazine November 2016. People on Paper received

coverage in Art Quarterly Autumn 2016 and Artist and

Illustrators October 2016. Other media coverage included on

BBC Radio 2 Arts “Bacon to Rego” and Sunday Times “Great

British Breaks” including Blackwell, The Arts & Crafts House

in September 2016. Lakeland Arts continues to work with

Cumbria Life as a Media Partner.

Our audience insight grew further as we worked with Audience

Finder and received detailed data for 2015-16 for each of

the sites. Insight includes demographic data, reason for visit,

awareness of the venues, accommodation, visitor experience

and membership. This information has been utilised in the

development of the Lakeland Arts Marketing Strategy.

We invested in organisation wide training in the Customer

Relationship Management system in 2016, so all colleagues

have access to live data on audience and trends. This

supports efficient use of resources, and enables us to

communicate with contacts digitally rather than solely by print.

16 17

Fundraising

Lakeland Arts raises around 40% of its income from a range

of voluntary sources. These include public funders, trusts

and foundations, individuals and corporate giving. Support

from these sources is vital to enable us to undertake all our

activities, conserve and care for our Grade 1 listed buildings,

develop and care for the permanent collections, promote

excellent world-class art and heritage, and offer learning

and engagement programmes that benefit and involve local

communities.

In 2016 Lakeland Arts raised £735,133 of voluntary income

through donations, grants and sponsorship. Our Patrons

and Benefactors are extremely important to us as key

supporters, raising a total of £25,340 in 2016, and our

Friends membership continued to grow during 2016 to around

1,800 members. Our core activity was supported by the Sir

John Fisher Foundation, South Lakeland District Council,

the Lakeland Arts Support Trust, and Kendal Town Council.

Together, these funders make up a significant proportion of our

voluntary income.

Unrestricted core funding was received through Arts Council

England’s Major Partner Museum Programme as Lakeland

Arts is a member of the Cumbria Museum Consortium,

working in partnership with the Wordsworth Trust and Tullie

House Museum and Gallery Trust. Lakeland Arts also received

core funding as an Arts Council England National Portfolio

Organisation.

Our 2016 exhibition programme received a good range of

support from charitable trusts and corporate supporters.

This included Sanlam Private Wealth and Armstrong Watson.

Brewin Dolphin continue as significant Corporate Patrons of

Lakeland Arts.

In 2016, we continued the fundraising campaign to deliver

the Windermere Jetty capital project. We continued the

Jetty Appeal, offering donors a chance to have their name

inscribed on the main jetty. We also completed raising funds

for the Windermere Jetty Endowment Fund, with the incentive

of matched £1 for £1 funding made possible through the

Heritage Lottery Fund’s Catalyst Endowment Initiative.

Lakeland Arts was grateful to receive significant legacies

in 2016, particularly from the late Mary Burkett’s Scottish

Provident Trust and from the estate of the late Ruan Peregrine

James Galloway McWilliam for the Blackwell Project.

A full list of voluntary income received by Lakeland Arts is

included in note 4 to the accounts.

Lakeland Arts would like to thank for their ongoing support all

of the individuals and organisations mentioned, the Patrons

and Benefactors and those who wish to remain anonymous.

Benefactors

Mr and Mrs T Ambler

Mr and Mrs J Campbell

Mr and Mrs T J R Harding

Dr and Mrs A C I Naylor

Mr T P Naylor

Mr and Mrs J Rink

Dr J P L Welch

Patrons

Mr Martin Ainscough

Mr and Mrs C H Bagot

Mr O Barratt MBE and Mrs V Barratt

Mr and Mrs D Case

Lord and Lady Cavendish

Mr J E Coward

Mr C Crewdson OBE and Mrs V Crewdson

Sir James Cropper KCVO

Mr and Mrs W Dufton

Mr J Entwistle

Mr A Firth

Mrs B A Fletcher

Mr and Mrs D Goeritz

Mr R Hassell-McCosh

Ms J Holland

Mr P Kessler MBE and Miss D Rose QC

Susan, Lady Kimber

Mr and Mrs J Lee

Mrs D Matthews JP

Mr J S Nicoll and Ms L Colchester

Mr T Parker

Mr C Sanderson OBE JP

Mr and Mrs A Scott

Mr and Mrs E Thomas

Mrs S Thornely DL

Mr J Townson

Dr T Tuohy

Mr and Mrs G M Wallace

Mr and Mrs P M White

Ms J Wood

Mr C Woodhouse CVO and Mrs M Woodhouse

Mr N Woodhouse

Corporate Patrons

Brewin Dolphin

And all those who wish to remain anonymous

18 19

18 19

3. Structure, Governance and Management

Lakeland Arts (the charitable company) is a company limited

by guarantee and is also a registered charity. The charitable

company was set up as part of an exercise to modernise the

constitution of a separate charity, Lakeland Arts Trust, which

is an unincorporated trust, constituted under a trust deed

dated 19 August 1957 and is a registered charity, number

526980. Lakeland Arts Trust was formed to save Abbot Hall,

an important mid eighteenth century Grade 1 Listed house on

the banks of the River Kent in Kendal, and to convert it into an

Art Gallery.

The charitable company is governed by its Memorandum

and Articles of Association and has similar objectives to

Lakeland Arts Trust. As of 1 August 2013 the charitable

company replaced the Trust as the operator of the various

venues for use by the public and took over the redevelopment

of Windermere Jetty. The funds, assets and liabilities of

Lakeland Arts Trust were transferred to the charitable

company. Lakeland Arts Trust continues to hold the Blackwell

Endowment which is a permanent endowment, and the

collections which are loaned to the charitable company.

The directors of the charitable company are its trustees for

the purposes of charity law. The Board of Trustees of up to

fifteen members, but not less than six, meets regularly and

administers the charitable company. The trustees are elected

by the Board of Trustees at the Annual General Meeting in

accordance with the Articles of Association. The trustees who

have served during the year and since the year end are shown

in the Charity Information on page 2.

At their meetings, the trustees agree the broad strategy,

policy and areas of activity for the charitable company,

including consideration of financial policy, reserves and risk

management policies and performance. Trustees also decide

the level of pay for key management personnel taking into

account appropriate benchmarks. A disclosure in relation to

remuneration and expenses of key management personnel is

included in note 20 to the accounts. The Board of Trustees

appoints Investment Managers, currently Sarasin & Partners

LLP, who are responsible for implementing the overall

investment policy.

The trustees keep the skill requirements for the trustee body

under review. New trustees are appointed only where they

have the necessary skills to contribute to the charitable

company’s work and development. The induction process

for any newly appointed Trustee comprises an initial meeting

with the trustees, followed by a series of meetings with the

Chairman and senior staff on powers and responsibilities

of the trustees, the aims and objectives of the charitable

company, the forward programme of work, the staffing and

organisation of the charitable company.

Related parties

The charitable company has a close relationship with the

following:

• Lakeland Arts Trust. The charitable company is the sole

corporate Trustee of Lakeland Arts Trust;

• Lakeland Arts Enterprises Limited. This is the wholly

owned trading subsidiary of the charitable company.

These two entities together with Lakeland Arts make

up the group for the purposes of these consolidated

accounts.

• Lakeland Arts Support Trust, a charity formed in 1998

for the purpose of generating income to provide financial

support for the charitable company at its Abbot Hall site

in Kendal;

• South Lakeland District Council, which owns the Abbot

Hall building - SLDC also makes an annual grant towards

the charitable company’s costs.

Risk management

All significant activities undertaken are subject to a risk review

as part of the initial project assessment and implementation.

Major risks are identified and ranked in terms of their potential

impact and likelihood. Major risks, for this purpose, are those

that may have a significant effect on:

• Operational performance, including risks to staff,

volunteers and visitors;

• Achievement of aims and objectives; or

• Meeting the expectations of beneficiaries or supporters.

The trustees review these risks on an ongoing basis and

satisfy themselves that adequate systems and procedures

are in place to manage the risks identified. Where appropriate,

risks are covered by insurance. The following framework is

central to ensuring adequate risk management:

• Regular monitoring of major risks and development of

disaster recovery plans;

• Embedding risk identification and assessment within

operating procedures;

• A clear structure of delegated authority and control; and

• Maintaining reserves in line with set policies.

In assessing risk the trustees recognise that some areas of

work require the acceptance and management of risk if key

objectives are to be achieved. The trustees have reviewed

the major risks to which the charitable company is exposed

and identified control and mitigation procedures, under the

headings of:

• Governance;

20 21

• Operational;

• Financial;

• Environmental; and

• Compliance.

4. Financial Review

Financial Review (including reserves policy)

The Consolidated Statement of Financial Activities shows total

income of £7,825,344 an increase of 145% compared with

2015. This included unrestricted funds totalling £1,747,967

(2015 £1,379,548); restricted funds totalling £5,895,372

(2015 £1,684,576) and restricted endowment funds totalling

£182,005 (2015 £120,713).

There was a 1% decrease in income from admission charges.

Both Abbot Hall Art Gallery and Museum of Lakeland Life &

Industry had successful years given the challenges presented

by the flooding and ticket sales were in line with predicted

levels. Blackwell, The Arts & Crafts House unfortunately had

fewer visitors than anticipated during the year.

Income includes voluntary income of £5,855,552 (2015

£1,632,818) for the Windermere Jetty Project. Details of

funding and donations for the project as well as a details of all

voluntary income are included in note 4 to the accounts.

The trading subsidiary Lakeland Arts Enterprises Ltd

contributed £16,806 to the consolidated result, a decrease

of 36% compared with 2015. This was primarily because of

the impact of flooding which forced the closure of the Coffee

House at Abbot Hall until mid-year, when it was replaced by

temporary facilities, and the reduction in the number of visitors

to Blackwell.

Total resources expended were £2,243,163, an increase of

£346,234 (18%) compared with 2015. Included is £437,581

of expenditure in relation to the Windermere Jetty Project

(2015 £293,677).

The market value of portfolio investments rose by £114,953

during the year regaining more than the drop in value of

£33,714 last year.

The Net Movement of Funds for the year showed an increase

£5,657,686 which is essentially attributable to an increase

in the amount of restricted funds held for Windermere Jetty,

investment losses and an operating loss of £28,263 before

pension liability fluctuations for the year.

Investments and Investment Policy

The charitable company has the power to make investments

that it sees fit. The investment policy determined by the

trustees for the endowment funds is to provide a balanced

return from a broad spread of medium risk investments, and

for general funds to provide a higher income from a spread of

lower risk investments. The investment policy is implemented

by professional investment managers Sarasin & Partners LLP.

Reserves

The balance in the unrestricted reserves of the charitable

company at the end of the year was £574,606 before the

pension past deficit provision of £477,585 (2015: £631,486).

The restricted reserves of the charitable company comprise:

Windermere Jetty asset in the course of construction:

£7,990,615 (2015: £1,612,432)

Windermere Jetty capital project funds: £1,185,783 (2015:

£2,195,475)

Other restricted funds (detailed in note 18 to the accounts):

£114,137 (2015 £30,053)

The endowment funds of the charitable company comprise:

General endowment funds £683,946 (2015 £662,848)

Windermere Jetty endowment funds £309,805 (2015

£127,800)

Lakeland Arts Trust Blackwell endowment funds (£1,084,949)

(2015 £1,015,228)

The main features of the charitable company’s reserves policy

are as follows:

• the need for reserves will vary depending on the

charitable company’s financial position and continuous

assessment of the many risks the charitable company

faces at a particular time;

• the reserves will be assessed as part of the charitable

company’s mid-range planning process and the need

to build reserves will also be taken into account in the

annual planning and budgeting process;

• reserves exist either to provide short term protection

against downward fluctuations in annual revenues

or capital receipts – or to provide long term strategic

financial support and development;

• the reserves policy balances the need to build up long

term reserves against the need for short term spending

on core activities; and

• the charitable company seeks to ensure that every new

acquisition is fully funded through the establishment

of a separate endowment or other restricted fund, if

necessary, and hence will not need to be supported by

the general fund.

20 21

5. Plans for Future Periods

Lakeland Arts has planned an exciting and wide ranging

programme in 2017 of exhibitions, displays, learning and

community engagement. We will complete re-instatement

works at Abbot Hall to bring the areas of the building back

into use that were damaged by unprecedented flooding in

December 2015. The contractor is due to complete the

buildings for Windermere Jetty Museum of Boats, Steam and

Stories in 2017, so we can open the new world-class heritage

attraction in 2018.

The first exhibition of the year at Abbot Hall Art Gallery will be

George Shaw, My Back to Nature. This will celebrate Shaw’s

two-year residency as Associate Artist at the National Gallery,

London and we are delighted that this will be the first showing

of the exhibition outside the National Gallery. At the same time,

we will be displaying three important historical works from

the National Gallery’s collection. The paintings by Pierro del

Pollaiuolo, Nicolas Poussin and John Constable each inspired

Shaw’s residency and the work he created over the period.

In April, we will open the exhibition at Abbot Hall of work by

Julian Cooper: Paintings from 1970-2017. The exhibition

will mark Cooper’s 70th birthday. It will comprise of over

30 monumental paintings, acting as powerful distillation

of his extensive output from 1970 to the present day. The

diversity of scale and subject matter in the show will reflect

the artist’s own travels – from the fells and mountains of the

Lake District and Cumbria, to work inspired by his trips to

South America, the Alps, the Himalayas, and the quarries of

Tasmania and Carrara. Lakeland Arts will publish a catalogue

with the exhibition with essays by Andrew Lambirth and Amy

Concannon. The exhibition will be supported by Rathbones

Investment Management and mounted with the assistance of

Art Space Gallery.

The summer show at Abbot Hall Art Gallery will be Painting

Pop. Focused on the period around 1962, the year Abbot

Hall opened, the exhibition will feature works from national

collections by artists including Peter Blake, Richard Hamilton,

Adrian Henri and Allen Jones. Alongside Painting Pop we will

display David Hockney’s: A Rake’s Progress (1961-1963). This

will present the entire series of etchings by Hockney, made in

response to his first trip to New York in 1961.

Lakeland Arts is pleased to be working with The Ingram

Collection in preparation for the autumn 2017 exhibition

at Abbot Hall Art Gallery. This unique private collection of

Modern British and Contemporary Art is the vision of media

entrepreneur and philanthropist Chris Ingram who started

collecting in 2002. It includes work by the major artists of the

twentieth century, and explores the work of emerging artists.

Lakeland Arts is planning two new exhibitions at Blackwell

in 2017. The first will be Griet Beyaert and Paul Miller The

Light Within and bring together fine glass sculpture and

22 23

digital technology. It will include an installation in the Oliver

Thompson Gallery with sounds and film of Blackwell created

by Miller projected onto Beyaert’s glass. The second exhibition

is Women of the Arts & Crafts Movement, which will explore

leading designers and makers of the period. Also in 2017,

we will complete the Master Bedroom as part of the Blackwell

Project to show the room as Baillie Scott would have

envisaged it with his designs for the frieze, bed, bedspread

and other furniture and furnishings.

Lakeland Arts invested in 2016 in improvements at Museum

of Lakeland Life & Industry including enlarging the space for

temporary exhibitions. We will show Fun on the Fells from

March, looking at the history and stories of walking and

climbing in the Lake District.

Our Learning and Engagement programmes in 2017 will

take inspiration from the collections and historic buildings.

They will be planned to support work with local communities

and schools and to encourage families and new visitors to

participate in a wide range of activities during the year. This

will include exploratory light installations at Blackwell during the

spring and a celebration of Swallows and Amazons, linking to

the newly released film, in the summer.

Our partnership with Equal Arts will enable Lakeland Arts to

extend to Blackwell the Enriched by Moments programme with

people living with dementia, which we started at Abbot Hall

in 2014. We will complete the Esperance Project which has

involved secondary and primary schools in the development of

Windermere Jetty.

Lakeland Arts employed Cruden Property Services as

contractor to do the repair and re-instatement works at Abbot

Hall, including measures to make the lower part of the building

more flood resilient. The work progressed well in 2016 and we

aim to complete the re-instatement by May 2017. It will be a

very welcome position to be in when we re-open the café and

other visitor facilities that have been closed since the flooding

in December 2015.

Construction of Windermere Jetty Museum of Boats, Steam

and Stories, undertaken by Thomas Armstrong (Construction)

Ltd, took longer than planned in 2016 and the revised date

for completing the buildings is summer 2017. Lakeland Arts

will then manage the fit out including moving the boats into

the exhibition space and on the water in the Boathouse and

setting up the Conservation Workshop where visitors will

see the skilled team of staff and volunteers conserving and

maintaining historic vessels. We aim to open the new world-

class Museum in spring 2018.

6. Trustees’ Responsibilities

The trustees (who are also directors of Lakeland Arts for the

purposes of company law) are responsible for preparing

the Trustees’ Annual Report and the financial statements

in accordance with applicable law and United Kingdom

Accounting Standards (United Kingdom Generally Accepted

Accounting Practice).

Company law requires the trustees to prepare financial

statements for each financial year, which give a true and fair

view of the state of affairs of the charitable company and of

the incoming resources and application of resources, including

the income and expenditure, of the charitable company

for that period. In preparing these financial statements, the

trustees are required to:

• select suitable accounting policies and then apply them

consistently;

• observe the methods and principles in the Charities

SORP 2015 (FRS 102);

• make judgements and estimates that are reasonable and

prudent;

• state whether applicable UK Accounting Standards

have been followed, subject to any material departures

disclosed and explained in the financial statements;

• prepare the financial statements on the going concern

basis unless it is inappropriate to presume that the

charitable company will continue in operation.

The trustees are responsible for keeping adequate accounting

records that disclose with reasonable accuracy at any time

the financial position of the charitable company and enable

them to ensure that the financial statements comply with

the Companies Act 2006. They are also responsible for

safeguarding the assets of the charitable company and hence

for taking reasonable steps for the prevention and detection of

fraud and other irregularities.

The trustees are responsible for the maintenance and integrity

of the corporate and financial information included on the

charitable company’s website. Legislation in the United

Kingdom governing the preparation and dissemination

of financial statements may differ from legislation in other

jurisdictions.

22 23

7. Disclosure of Information to the Auditors

We, the directors of the company who held office at the date

of approval of these Financial Statements as set out above

each confirm, so far as we are aware, that:

• there is no relevant audit information of which the

company’s auditors are unaware; and

• we have taken all the steps that we ought to have

taken as directors in order to make ourselves aware of

any relevant audit information and to establish that the

company’s auditors are aware of that information.

In approving the Trustees’ Annual Report, we also approve the

Directors’ Report included therein, in our capacity as company

directors.

On behalf of the board

Charles W N CrewdsonTrustee and Hon Treasurer

24 25

Independent Auditor’s Report to the members and

trustees of Lakeland Arts

We have audited the financial statements of Lakeland Arts

for the year ended 31 December 2016, which comprise the

Consolidated Statements of Financial Activities (including the

Income and Expenditure Account), the Consolidated and

Parent (Charity) Balance Sheet, the Consolidated Statement

of Cashflows and the related notes. The financial reporting

framework that has been applied in their preparation is

applicable law and United Kingdom Accounting Standards

(United Kingdom Generally Accepted Accounting Practice)

including FRS 102 ‘‘The Financial Reporting Standard

applicable in the UK and Republic of Ireland”.

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 and to the charitable company’s

trustees, as a body, in accordance with regulations made

under section 154 of the Charities Act 2011. Our audit work

has been undertaken so that we might state to the charitable

company’s members and its trustees those matters we are

required to state to them in an auditor’s 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 the charitable company’s members

as a body and its trustees as a body, for our audit work, for

this report, or for the opinions we have formed.

Respective responsibilities of trustees and auditors

As explained more fully in the Trustees Responsibilities

Statement, the trustees (who are also the Directors of the

charitable company for the purpose of company law) are

responsible for the preparation of financial statements and for

being satisfied that they give a true and fair view.

We have been appointed auditor under the Companies

Act 2006 and section 151 of the Charities Act 2011 and to

report in accordance with those Acts. Our responsibility is to

audit and express an opinion on the financial statements in

accordance with applicable law and International Standards

on Auditing (UK and Ireland). Those standards require us to

comply with the Auditing Practices Board’s (APB’s) Ethical

Standards for Auditors.

Independent Audit Report

24 25

Scope of the audit of the financial statements

An audit involves obtaining evidence about the amounts

and disclosures in the financial statements sufficient to

give reasonable assurance that the financial statements

are free from material misstatement, whether caused by

fraud or error. This includes an assessment of: whether

the accounting policies are appropriate to the group’s and

the parent charitable company’s circumstances and have

been consistently applied and adequately disclosed; the

reasonableness of significant accounting estimates made

by the trustees; and the overall presentation of the financial

statements. In addition, we read all the financial and non-

financial information in the Trustees’ Annual Report to

identify material inconsistencies with the audited financial

statements and to identify any information that is apparently

materially incorrect based on, or materially inconsistent with,

the knowledge acquired by us in the course of performing

the audit. If we become aware of any apparent material

misstatements or inconsistencies we consider the implications

for our report.

Opinion on financial statements

In our opinion the financial statements:

• give a true and fair view of the state of the group’s

and the parent charitable company’s affairs as at 31

December 2016, and of the group’s incoming resources

and application of resources, including its income and

expenditure, for the year then ended;

• have been properly prepared in accordance with United

Kingdom Generally Accepted Accounting Practice;

• have been properly prepared in accordance with the

Companies Act 2006 and the Charities Act 2011.

Opinion on other matter prescribed by the Companies

Act 2006

In our opinion based on the work undertaken in the course of the audit:

• the information given in the Trustees’ Annual Report for

the financial year for which the financial statements are

prepared is consistent with the financial statements; and

• the Trustees Annual Report has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by

exception

We have nothing to report in respect of the following matters

where the Companies Act 2006 and the Charities Act 2011

requires us to report to you if, in our opinion:

• the parent charitable company has not kept adequate

and sufficient accounting records; or

• the parent charitable company financial statements are

not in agreement with the accounting records or 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.

• the trustees were not entitled to prepare the financial

statements in accordance with the small companies

regime and take advantage of the small companies

exemption in preparing the directors’ report and take

advantage of the small companies exemption from the

requirement to prepare a strategic report.

Helen Holmes FCA, BSc (Senior Statutory Auditor)For and on behalf of Stables Thompson & Briscoe

Statutory Auditor and

Chartered Accountants

Lowther House

Lowther Street

Kendal LA9 4DX

Stables Thompson & Briscoe is eligible to act as an auditor in

terms of section 1212 of the Companies Act 2006.

26 27

Consolidated Statement of Financial Activities(Including Income and Expenditure Account) For the Year Ended 31 December 2016

Notes Unrestricted Funds

£

RestrictedFunds

£

Restricted Endowment

Funds£

Total Funds

£

Total Funds2015

£

Income and endowments from:

Donations and legacies 4 547,901 187,232 735,133 644,150

Windermere Jetty Capital Project 4 5,673,547 182,005 5,855,552 1,632,818

Incoming resources from charitable activities: 400,209 400,209 404,317

Admission charges 10,219 10,219 6,799

Learning income

Income from other trading activities

Commercial trading operations 5 359,660 359,660 349,937

Commission on sale or return items 5 36,707 36,707 44,985

Investment income 6 26,159 34,593 60,752 66,675

Other income 7 367,112 367,112 35,156

Total 1,747,967 5,895,372 182,005 7,825,344 3,184,837

8

Expenditure on:

Raising funds 52,988 52,988 49,008

Fundraising trading; Commercial trading operations 374,761 374,761 368,839

Expenditure on charitable activities:

Operating Museums & Art Gallery 1,143,150 137,741 1,280,891 1,097,550

Windermere Jetty Capital Project 132,524 305,057 437,581 293,677

Other expenditure 96,942 96,942 87,855

Total 1,800,365 442,798 0 2,243,163 1,896,929

Net income/(expenditure) before investment gains/(losses) (52,398) 5,452,574 182,005 5,582,181 1,287,908

Gains/losses on investment assests 24,135 90,818 114,953 (33,714)

Net income/expenditure (28,263) 5,452,574 272,823 5,697,134 1,254,194

Other recognised gains/(losses)

Actuarial gains/(losses) on defined benefit pension schemes (39,448) (39,448) 10,988

Net movement of funds (67,711) 5,452,574 272,823 5,657,686 1,265,182

Reconciliation of funds

Fund balances as at 1st January 2016 (as restated) 164,732 3,837,961 1,805,876 5,808,569 4,543,387

Net movement in funds as above (67,711) 5,452,574 272,823 5,657,686 1,265,182

Fund balances at 31 December 2016 97,021 9,290,535 2,078,699 11,466,255 5,808,569

26 27

Consolidated Statement ofFinancial Activities(Including Income and Expenditure Account) For the Period Ended 31 December 2015

Notes UnrestrictedFunds

£

RestrictedFunds

£

Restricted Endowment

Funds£

Total Funds

£

Income and endowments from:

Donations and legacies 5 505,882 138,268 0 644,150

Windermere Jetty Capital Project 5 0 1,512,105 120,713 1,632,818

Incoming resources from charitable activities:

Admission charges 404,317 0 0 404,317

Learning income 6,799 0 0 6,799

Income from other trading activities

Commercial trading operations 6 349,937 0 0 349,937

Commission on sale or return items 6 44,985 0 0 44,985

Investment income 7 32,472 34,203 0 66,675

Other income 8 35,156 0 0 35,156

Total 1,379,548 1,684,576 120,713 3,184,837

Expenditure on: 9

Raising funds 37,775 11,233 0 49,008

Fundraising trading; Commercial trading operations 368,839 0 0 368,839

Expenditure on charitable activities:

Operating Museums & Art Gallery 890,458 207,092 0 1,097,550

Windermere Jetty Capital Project 43,001 250,676 0 293,677

Other expenditure 87,855 0 87,855

Total 1,427,928 469,001 0 1,896,929

Net income/(expenditure) before investment gains/(losses) (48,380) 1,215,575 120,713 1,287,908

Gains/losses on investment assests (3,988) 0 (29,726) (33,714)

Net income/expenditure (52,368) 1,215,575 90,987 1,254,194

Other recognised gains/(losses)

Actuarial gains/(losses) on defined benefit pension schemes 10,988 0 10,988

Net movement of funds (41,380) 1,215,575 90,987 1,265,182

Reconciliation of funds

Fund balances as at 1st January 2015 481,275 1,608,828 692,465 2,782,568

Proir year adjustments reported in 2015 230,429 1,013,558 1,438 1,245,435

Prior year adjustment - consolidation of Lakeland Arts Trust (505,592) 0 1,020,986 515,394

Fund balances as at 1st January 2015 as adjusted 206,112 2,622,386 1,714,889 4,543,387

Net movement in funds as above (41,380) 1,215,575 90,987 1,265,182

Fund balances at 31st December 2015 164,732 3,837,961 1,805,876 5,808,569

28 29

Consolidated Balance SheetAs at 31 December 2016

Notes Consolidated 2016

£

Consolidated 2015

£

Charity 2016

£

Charity2015

£

Fixed assests

Tangible assests 10 259,556 238,463 259,556 238,463

Asset under construction 11 7,990,616 1,612,432 7,990,616 1,612,432

Investments 14 2,156,577 2,041,624 1,071,630 1,020,398

Total fixed assets 10,406,749 3,892,519 9,321,802 2,877,293

Current assests

Stocks 5 36,639 34,329 - -

Debtors 15 1,081,927 747,724 1,109,806 762,560

Cash at bank and in hand 1,507,075 1,872,858 1,484,951 1,862,519

Total current assets 2,625,641 2,654,911 2,594,757 2,625,079

Liabilities

Creditors: Amounts falling due within one year 16 1,088,550 272,107 1,071,668 256,275

Net current assets 1,537,091 2,382,804 1,523,089 2,368,804

Net assets excluding pension liability 11,943,840 6,275,323 10,844,891 5,246,097

Pension scheme liability 17 (477,585) (466,754) - -

Net assests including pension scheme liability 11,466,255 5,808,569 10,844,891 5,246,097

The funds of the charity

Unrestricted funds 18 574,606 631,486 560,605 617,488

Pension scheme deficit (477,585) (466,754) - -

Restricted Funds

Endowment Fund 18 2,078,699 1,805,876 993,751 790,648

Other restricted funds 18 9,290,535 3,837,961 9,290,535 3,837,961

Total charity funds 19 11,466,255 5,808,569 10,844,891 5,246,097

Approved by the Trusees and signed on their behalf on 27 September 2017 by

Charles W N Crewdson, Trustee and Hon. Treasurer

The notes on the following pages form part of these financial statements

Registered company number 8162578

Registered charity number 1153001

28 29

Notes Total Funds 2016

£

Total Funds2015

£

Cash flows from operating activities:

Net cash provided by (used in) operating activities 5,993,281 717,136

Cash flows from investing activites:

Dividends, interest and rents from investments 60,752 66,675

Proceeds from the sale of property, plant and equipment - -

Purchase of property, plant and equipment (6,419,814) (607,473)

Proceeds from sale of investments - -

Purchase of investments - -

Net cash provided by (used in) investing activities (6,359,062) (540,798)

Cash flows from financing activities:

Repayments of borrowing - -

Cash inflows from new borrowing - -

Receipt of endowment - -

Net cash provided by (used in) financing activities - -

Change in cash and cash equivalents in the reporting period (365,781) 176,338

Cash and cash equivalents at the beginning of the reporting period 1,872,858 1,696,520

Change in cash and cash equivalents due to exchange rate movements - -

Cash and cash equivalents at the end of the reporting period 1,507,075 1,872,858

Reconciliation of net income/(expenditure) to net cash flow from operating activities

Net income/(expenditure) for the reporting period (as per the statement of financial activities) 5,582,181 1,287,908

Adjustments for:

Depreciation charges 20,537 2,103

Dividends, interest and rents from investments (60,752) (66,675)

Release of past pension cost liability (28,617) (27,850)

(Increase)/decrease in stocks (2,310) 576

(Increase)/decrease in debtors (334,201) (495,457)

Increase in creditors 816,443 16,531

Net cash provided by (used in) operating activities 5,993,281 717,136

Analysis of cash and cash equivalents

Cash in hand 1,507,075 1,872,858

Notice deposits (less than 3 months) - -

Overdraft facility repayable on demand - -

Total cash and cash equivalents 1,507,075 1,872,858

Statement of Cash FlowsAs at 31 December 2016

30 31

Notes Forming Part of the Financial Statements

1. Accounting Policies

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the

financial statements are as follows:

a) Basis of accounts preparationLakeland Arts is a charitable company limited by guarantee incorporated in the United Kingdom. In the event of the charity being

wound up, the liability in respect of the guarantee is limited to £1 per member of the charity. The address of the registered office

is given in the charity information page of these financial statements. The nature of the charity’s operations and principal activities

are as an arts and heritage organisation caring for and running Abbot Hall Art Gallery and Museum of Lakeland Life & Industry in

Kendal, Blackwell, The Arts & Crafts House, and the new Windermere Jetty, Museum of Boats, Steam and Stories in Bowness-

on-Windermere.

The charity constitutes a public benefit entity as defined by FRS 102. The financial statements have been prepared in

accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing

their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)

issued on 16 July 2014, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102),

the Charities Act 2011, the Companies Act 2006 and UK Generally Accepted Practice as it applies from 1 January 2015.

The financial statements are prepared on a going concern basis under the historical cost convention, modified to include certain

items at fair value. The financial statements are prepared in sterling which is the functional currency of the charity and rounded to

the nearest £.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have

been consistently applied to all years presented unless otherwise stated.

b) Preparation of the accounts on a going concern basisThe charity is delivering a new world-class heritage attraction, Windermere Jetty, Museum of Boats, Steam and Stories. As

a result of unforeseen delays in construction work, the Museum is now due to open in Spring 2018, following completion of

construction in 2017. This is a substantial capital project, with a total cost of over £16m. Successful fundraising has covered

most of the cost, but there is a shortfall which the charity is addressing. The charity’s Capital Completion Fundraising Strategy will

build on the fundraising success achieved to date to meet the required target and bridge any funding gap. The charity’s reserves

are in line with strategy. On this basis, it is believed that the charity is a going concern.

c) Group financial statementsThe financial statements consolidate the results of the charitable company and its wholly owned subsidiary, Lakeland Arts

Enterprises Limited, together with Lakeland Arts Trust for which it acts as sole trustee, on a line by line basis. A separate

statement of financial activities, or income and expenditure account are not presented for the charitable company itself following

the exemption afforded by section 408 of the Companies Act 2006. The charity itself made an overall surplus in the year of

£5,598,794 (2015 - £1,229,102).

d) IncomeIncome is shown within 5 main categories in the Consolidated Statement of Financial Activities:

30 31

Income and endowmentsIncome from donations and grants, including capital grants, is included in incoming resources when these are receivable, except

as follows:

i. when donors specify that donations and grants given to the charitable company must be used in future accounting periods

the income is deferred until these periods; or

ii. when donors impose conditions which have to be fulfilled before the charitable company becomes entitled to use such

income, the income is deferred and not included in incoming resources until the pre-conditions for use have been met.

When donors specify that donations and grants, including capital grants, are for particular restricted purposes, which do

not amount to pre-conditions regarding entitlement, this income is included in incoming resources of restricted funds when

receivable.

Income from charitable activitiesIncome from Charitable trading activities through Abbot Hall Art Gallery, Blackwell, The Arts & Crafts House and Museum of

Lakeland Life & Industry (including admission, learning and Friends of Lakeland Arts memberships), is included in incoming

resources in the period for which it is receivable.

Income from other trading activitiesIncome from commercial trading activities, including retail and catering and commission on sale or return items through retail

outlets. This income is primarily the income of the trading subsidiary Lakeland Arts Enterprises Ltd and is recorded on a

receivable basis.

Income from investmentsIncome receivable on restricted endowment funds which itself is not restricted.

Other incomeIncome from parking, room hires and other sources, including income in anticipation of an insurance claim in 2015. The claim

relates to flooding which affected many parts of the locality in December 2015. Lakeland Arts suffered significant business

interruption to all venues during December and into 2016 and 2017 due to a reduction in the number of visitors to the area. The

catering premises at Abbot Hall flooded and were forced to close, but reopened in temporary facilities mid-year. Costs were also

incurred in moving the collections off-site whilst work is undertaken to create a suitable on-site storage facility above the flood

level. The total value of the insurance claim is unknown at this stage and only the value of costs incurred up to 31 December

2016 are included in these accounts.

Further information on other income is given under note 7 (Other Income).

Gifts in kindGifts in kind donated for resale are included at fair value, being the expected proceeds from sale less the expected costs of sale.

Where estimating the fair value is practicable upon receipt it is recognised in stock and ‘Income from other trading activities’.

Upon sale, the value of the stock is charged against ‘Income from other trading activities’ and the proceeds are recognised as

‘Income from other trading activities’. Where it is impracticable to fair value the items due to the volume of low value items they

are not recognised in the financial statements until they are sold. This income is recognised within ‘Income from other trading

activities’.

Fixed asset gifts in kind are recognised when receivable and are included at fair value. They are not deferred over the life of the

asset.

Donated heritage assets are recognised in the Heritage Asset note but are not otherwise recognised in the Statement of Financial

Activities (SOFA) in line with the policy on Heritage Assets.

32 33

e) ExpenditureExpenditure is included in the Consolidated Statement of Financial Activities on an accruals basis, inclusive of any VAT which

cannot be recovered. All costs are defined in 4 specific categories:

• Raising funds

• Fundraising trading

• Charitable activities

• Other

f) Support costs allocation

Support costs are those that assist the work of the charity but do not directly represent charitable activities and include office

costs, governance costs and administrative payroll costs. They are incurred directly in support of expenditure on the objects of

the charity and include project management and professional fees. Where support costs cannot be directly attributed to particular

headings they have been allocated to cost of raising funds and expenditure on charitable activities on a basis consistent with use

of the resources.

Fundraising costs are those incurred in seeking voluntary contributions and do not include the costs of disseminating information

in support of the charitable activities. The analysis of these costs is included in note 8.

g) Tangible fixed assetsTangible fixed assets costing more than £5,000 are capitalised and included at cost including any incidental expenses of

acquisition (with the exception of heritage assets see note 2).

Depreciation is provided on all tangible fixed assets at rates calculated to write off the cost on a straight line basis over their

expected useful economic lives as follows:

• Plant, equipment and fittings: over 4 years

Lakeland Arts owns the former Kendal Grammar School (constructed 1588) which is part of the Abbot Hall site. The building

is currently divided into 2 parts; no 9 Church Walk is a residential property acquired in 2011 and held as part of the investment

portfolio and no 11 Church Walk, also residential which has been in the ownership of Lakeland Arts for many years and is

currently used as storage. The latter portion was valued last year and included in the accounts as a freehold property. The

property is stated in the accounts at market value. Revaluation will take place every 5 years.

h) Asset in the course of constructionWindermere Jetty, Museum of Boats, Steam and StoriesAn asset under construction at the former site of the Windermere Steamboat Museum. The Museum, designed by Carmody

Groarke Architects, will open in 2018 and will house a nationally important collection of steamboats and other vessels known as

the Steamboat Museum Collection (detailed in note 13). Details of progress on the project are included in the Trustees Report.

i) StockStock consists of purchased goods for resale and is included at the lower of cost or net realisable value.

j) InvestmentsInvestments are stated at market value at the balance sheet date, except for property which is revalued on a regular basis and

includes:

• 18 Peppercorn Lane, valued at £125,000

• 9 Church Walk, valued at £230,000

Revaluation took place during 2015. The Consolidated Statement of Financial Activities includes the net gains and losses arising

on revaluations and disposals throughout the period.

32 33

2. Assets and Liabilities not Recognised in the Financial Statements

Lakeland Arts’ primary purpose is to establish a public art gallery and museum for the town of Kendal and surrounding areas,

and to advance artistic and historic interests in the area. In this connection the charitable company has a long leasehold interest,

at a peppercorn rent, in listed buildings at Abbot Hall, of which the Art Gallery itself is listed at Grade 1. The buildings house

a valuable collection of works of art and museum exhibits. The charitable company also has a freehold interest in the Grade

1 Listed Arts and Crafts House at Blackwell – a property of unique historic importance near Bowness-on-Windermere, with a

limited collection of archive material, objects and furniture.

These historic properties are inalienable heritage assets in the sense that it is a fundamental part of the charitable company’s

purpose to hold and preserve them permanently, and Lakeland Arts is effectively prohibited from disposing of them for any

other purpose, not only by the terms of its governing documents, but also by external considerations including the terms of

leases, conditions applied by funding bodies and planning consents. These properties are not assets in the normal sense of

the word, because under the irrevocable terms of their present use they have no market value. To provide a market value based

on an impermissible change of use would be misleading. The Trustees consider that the buildings are heritage assets and the

charitable company does not, therefore, represent them on the Balance Sheet.

Further information on Lakeland Arts’ heritage assets is given under notes 12 (Financial Summary of Heritage Asset Transactions)

and 13 (Further Information on the Charitable Company’s Heritage Assets), in accordance with the terms of Accounting and

Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with

the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) ‘18. Accounting for heritage assets’.

3. Funds

Funds held by the charitable company are either:

Unrestricted funds – including unrestricted general funds; these funds which can be used in accordance with the charitable

objects at the discretion of the Trustees.

Restricted funds – these are funds that can only be used for particular restricted purposes within the objects of the charitable

company. Restriction arises when specified by the donor or when funds are raised for particular purposes.

Restricted endowment funds – these are non-permanent endowment funds, the income from which contributes to the

operating expenses of Lakeland Arts. The assets of the funds are represented by Investments (see note 14).

Movements on funds during 2016 are given under note 18.

34 35

4. Voluntary Income

During 2015 the charitable company generated voluntary income through grants, donations and sponsorship. Unrestricted core

funding and other grants/donations/sponsorship received for specific purposes (restricted) are summarised below:

2016£

Unrestricted General

Funds

2016£

Restricted Endowment

Funds

2016£

Restricted Funds

2016£

Total

2015£

Unrestricted General

Funds

2015£

Restricted Endowment

Funds

2015£

Restricted Funds

2015£

Total

Arts Council England MPM 291,714 291,714 290,344 0 0 290,344

Arts Council England NPO 120,696 120,696 116,754 0 0 116,754

Arts Council Flood Grant 62,534 62,534

Lakeland Arts Support Trust 46,162 46,162 0 0 48,497 48,497

Grants & Donations - Blackwell Project (listed below) 38,760 38,760 0 0 3,149 3,149

The Estate of the late Mary Burkett 28,155 28,155 0 0 0 0

Benefactors and Patrons 25,340 25,340 36,091 0 0 36,091

The Sir John Fisher Foundation 25,000 25,000 0 0 25,000 25,000

Creative Age Project; In the Moment 24,203 24,203 0

South Lakeland District Council 20,000 20,000 20,000 0 0 20,000

Cumbria Community Foundation 20,000 20,000 0

John Ellerman Foundation 7,667 7,667 6,333 0 0 6,333

Cumbria County Council 7,500 7,500 0 0 0 0

Sanlam Private Wealth 6,000 6,000 0 0 5,500 5,500

Other donations including Gift Aid 2,658 1,100 3,758 2,310 0 3,664 5,974

D Tune 2,000 2,000 1,000 0 0 1,000

Estate of Anne Speight 2,000 2,000 0 0 0 0

Armstrong Watson 1,750 1,750 0 0 0 0

Kendal Town Council 1,000 1,000 1,000 0 0 1,000

Tullie House Museum & Art Gallery 509 509 0 0 3,333 3,333

AH Flood donations 385 385 0

The Estate of the late Eric Michael Bottomley 0 30,000 0 0 30,000

The Estate of the late Gloria Patricia Henrietta Smith 0 0 0 20,000 20,000

Plymouth City Council 0 0 0 7,500 7,500

Rathbone Investment Management 0 0 0 4,167 4,167

The National Gallery 0 0 0 4,000 4,000

Wordsworth Trust 0 0 0 3,333 3,333

The John S Cohen Foundation 0 0 0 3,000 3,000

The Granada Foundation 0 0 0 2,000 2,000

The Westmorland Arts Trust 0 0 0 2,000 2,000

Kendal College (Apprenticeships) 0 0 0 2,000 2,000

Alzheimers Society 0 0 0 1,125 1,125

Kirker Holidays 0 1,050 0 0 1,050

P F Charitable Trust 0 1,000 0 0 1,000

547,901 0 187,232 735,133 505,882 0 138,268 644,150

34 35

In addition, during 2016 the charitable company raised funds from the following sources for the development of Windermere

Jetty:

2016£

Restricted Endowment

Funds

2016£

Restricted Funds

2016£

Total

2015£

Restricted Endowment

Funds

2015£

Restricted Funds

2015£

Total

Heritage Lottery Fund 0 5,267,259 5,267,259 0 711,900 711,900

Donations to WJ Capital Project (listed below) 0 278,542 278,542 0 282,988 282,988

Regional Growth Fund 0 127,746 127,746 0 517,217 517,217

WJ Endowment 182,005 0 182,005 120,713 0 120,713

182,005 5,673,547 5,855,552 120,713 1,512,105 1,632,818

Donations to the Windermere Jetty Capital project:

2016£

Total

Wolfson Foundation 250,000

Cumbria Community Foundation 10,000

Other donations under £1,000 5,925

Interest (bank) 4,543

Turner & Townsend Fundraising 3,298

Gift Aid 2,027

J Hudson 1,500

A Case 1,250

278,542

Donations to the Blackwell Project:

2016£

Total

Heritage Lottery Fund 26,760

Estate of Ruan Peregrine James Galloway McWilliam 10,000

R Leach 2,000

38,760

36 37

5. Commercial Trading Operations – Lakeland Arts Enterprises Ltd.

Lakeland Arts Enterprises (company number 3015175) is wholly owned by the charitable company and trades to raise funds,

which are transferable to Lakeland Arts either as gift aid or repayment of loan.

The Profit and Loss Account for the year was:

£2016

£ £2015

£

Sales of goods 344,667 348,400

Conservation & reproduction services 419 1,537

Commission on sale or return items 36,707 44,985

381,793 394,922

Less cost of sales 133,641 134,603

Conservation & reproduction services 589 1,089

134,230 135,692

Gross profit on sale of goods 247,563 259,230

Business interruption insurance 14,574

Total income 262,137 259,230

Employment costs 231,541 215,674

Repairs & maintenance 3,590 7,230

Professional fees 931 928

Rent paid to Lakeland Arts 4,800 4,800

Audit fees 2,450 2,350

Publicity 1,001 684

Miscellaneous expenses 176 289

Computer software and security charges 842 1,192

245,331 233,147

Net profit 16,806 26,083

Profits transferred to Lakeland Arts (16,806) (26,083)

Retained profit for the period 0 0

36 37

The Balance Sheet at 31 December was:

£2016

£ £2015

£

Current Assets

Retail stocks 36,639 34,328

Sundry debtors and prepayments 55,104 20

Lakeland Arts current account 0 1,781

Cash at bank and in hand 13,811 10,340

105,554 46,469

Current Liabilities

Lakeland Arts current account 64,748 0

VAT 9,198 15,829

Sundry creditors 17,606 16,638

91,552 32,467

Net assets 14,002 14,002

Represented by:-

Share capital 2 2

Profit & loss account 14,000 14,000

14,002 14,002

6. Investment Income

Income received and accrued during the year came from the following sources:

£2016

£ £2015

£

Endowment Fund

UK Global Balanced 48,191 44,553

Property (588) 4,849

47,603 49,402

Unrestricted funds

UK Global Balanced 9,584 12,627

Cash 3,565 4,646

13,149 17,273

60,752 66,675

38 39

7. Other Income

2016£

UnrestrictedFunds

2016£

RestrictedFunds

2016£

Total

2015£

Total

In anticipation of insurance claim 341,818 0 341,818 9.198

Parking 13,454 0 13,454 15,374

Room hire 2,340 0 2,340 3,098

Other 4,198 0 4,198 722

Employment allowance 1,500 0 1,500 0

Commission on exhibition sales 1,442 0 1,442 2,599

Licence of images 1,260 0 1,260 804

SLDC community toilet scheme 550 0 550 550

Insurance claim 550 0 550 326

VAT annual adjustment 0 0 2,234

Roundabout Theatre 0 0 250

367,112 0 367,112 35,156

8. Resources Expended

Resources expended during the year were:

2016£

Direct Costs

2016£

Support Costs

2016£

Total

2015£

Total

Cost of generating funds

Voluntary income 27,740 25,248 52,988 49,008

Commercial trading operations 374,761 0 374,761 368,839

402,501 25,248 427,749 417,847

Charitable activities

Cost of operating Art Gallery, Museums and Arts & Crafts House

Exhibition programmes 214,545 41,384 255,929 256,112

Blackwell project 52,365 52,365 29,295

Collections & conservation of exhibits 43,385 12,280 55,665 161,458

Learning 99,436 44,215 143,651 156,864

Publicity & memberships 122,255 24,053 146,308 122,148

Historic buildings & premises costs 485,279 44,868 530,147 262,559

Visitor operations 43,165 53,661 96,826 109,114

1,060,430 220,461 1,280,891 1,097,550

Windermere Jetty Project 422,271 15,310 437,581 293,677

Total charitable activities 1,482,701 235,771 1,718,472 1,391,227

Governance costs 96,942 0 96,942 87,855

Total resources expended 1,982,143 261,019 2,243,163 1,896,929

38 39

Allocation of support costs:

2016£

Fundraising

2016£

Main Charitable

Activities

2016 £

Windermere Jetty

Project

2016 £

Total

2015 £

Total

Admin & other 12,391 109,810 0 122,201 105,820

Management 9,022 15,582 10,154 34,758 64,535

Finance 3,835 38,857 5,156 47,848 68,177

IT 26,769 26,769 7,212

HR & Legal 29,443 29,443 15,716

25,248 220,461 15,310 261,019 261,460

The direct costs of generating voluntary income comprise:

2016£

Total

2015£

Total

Salaries & employment costs 17,207 19,870

Other 40,122 8,512

57,329 28,382

Governance costs comprise:

2016£

Total

2015£

Total

Salaries & employment costs 91,898 82,466

Audit fees 5,044 5,389

96,942 87,855

9. Auditor’s Remuneration

2016£

Total

2015£

Total

Fees payable to the charity’s auditor for the audit of the charity’s annual accounts 4,228 4,424

Fees payable to the charity's auditor for the audit of the subsidiary accounts 2,450 2,350

Fees payable to the charity's auditor for the independent examination of the accounts of 964 964

Lakeland Arts Trust

Fees payable to the charity’s auditor for payroll services 3,859

Fees payable to the charity's auditor for the audit of grant funding (Regional Growth Fund) 1,743

7,273 5,057

Total fees payable to the charity’s auditor 11,501 9,481

40 41

10. Tangible Fixed Assets

(assets were transferred fully written down from LAT apart from £100bal)

Movements on the fixed assets during 2016 were:

FreeholdProperty

£

SteamboatPlant

£

Tractors

£

Furniture& Equipment

£

AH Fixtures& Fittings

£

Total

£

Asset cost, valuation or revalued amount

At 1 January 2016 190,000 173,570 14,950 14,957 50,466 443,943

Prior year adjustment 0 0 0 0 0

Adjusted balance at 1 January 2016 190,000 173,570 14,950 14,957 50,466 443,943

Additions 11,856 29,774 41,630

Disposals 0

At 31 December 2016 190,000 173,570 14,950 26,813 80,240 485,573

Accumulated depreciation

At 1 January 2016 0 (173,570) (14,950) (14,857) (2,103) (205,480)

Disposals 0

Charge for year (1,820) (18,717) (20,537)

At 31 December 2016 0 (173,570) (14,950) (16,677) (20,820) (226,016)

Net book value

At 1 January 2016 190,000 0 0 100 48,363 238,463

At 31 December 2016 190,000 0 0 10,136 59,420 259,556

11. Restricted Asset in the Course of Construction

A new development at the site of the former Windermere Steamboat Museum. The new museum, Windermere Jetty, will open

in 2017. The development is a restricted asset and is being funded by the Heritage Lottery Fund, The Regional Growth Fund,

Trusts and Foundations and individual donors.

The asset is valued at cost. Movement on asset cost during the year:

Total£

Adjusted value at 1 January 2016 1,612,432

Additions 6,378,184

Value at 31 December 2016 7,990,616

40 41

12. Financial Summary of Heritage Asset Transactions

There were no movements on the heritage assets of Lakeland Arts during the period as the permanent collections are held by

Lakeland Arts Trust, acquisitions by Lakeland Arts Trust are detailed below.

2016£

2015£

2014£

2013£

2012£

Purchases and additions -

Books 2,500 - - 180 -

Ceramics - 3,780 - - -

Ephemera - - - 60 -

Furniture - 5,000 - 9,000 -

Glass negatives - - - 500 -

Industrial history - - 19,000 - -

Paintings - - - 28,000 -

Donations

Boat models - - - 7,000 -

Books - - - - 1,000

Ceramics 2,750 - - 2,430 -

Costume 700 - - - -

Drawings - - - 16,600 -

Engraving - - - 5,600 -

Ephemera 200 - - - 12

Furniture - - - - 14,000

Industrial history - - 300 - -

Paintings 148,500 5,000 56,000 5,050 60,000

Photographic prints - - - - 5,000

Photographs 70 - - - -

Prints - - 200 400 36,000

Sculpture - - - 10,000 -

Social history 865 - - - 250

Watercolours - 15,000 6,300 24,080 -

Total additions 155,585 28,780 81,800 108,900 116,262

42 43

13. Further Information on the Charitable Company’s Heritage Assets

From 1 August 2013 the charitable company entered into a Loan and Management Agreement with the owner of the collections,

Lakeland Arts Trust, under which all responsibilities in relation to the collections including acquisition, disposal, preservation and

management, transferred to Lakeland Arts.

Lakeland Arts maintains a full inventory of all the collections held. This includes location and movements in and out of works of art

and museum objects which, from time to time, may be loaned to/from other museums and galleries.

Potential acquisitions, which may be purchased or gifted, must meet the requirements laid out in the charitable company’s

Collections Development Policy (November 2012) including relevance, use, condition and provenance. Further detail on

acquisitions is given under each section of the collection below.

Abbot Hall – Collection of Works of Art and Museum ExhibitsLakeland Arts Trust opened Abbot Hall Art Gallery, which is housed in a Grade 1 listed eighteenth century villa, in 1962. The

downstairs rooms were restored in a way sympathetic to the building’s Georgian origins, and the upstairs rooms were converted

for the display of exhibitions, including of modern and contemporary art.

Lakeland Arts’ principal areas of collecting and display broadly mirror this division:

• Eighteenth century furniture. This is a relatively small holding but it allows the eighteenth century paintings to be seen in

context in the period rooms.

• Eighteenth century British landscape and portrait paintings, with a particularly strong group of works by George Romney,

who grew up and was apprenticed locally.

• Eighteenth and nineteenth century watercolours, including an exceptional group of works by John Ruskin, JMW Turner and

a number of other key works, many of which relate to the Lake District.

• Twentieth century and contemporary British Art, perhaps the charitable company’s strongest group, with sculpture by figures

such as Jean Arp, Barbara Hepworth and Elisabeth Frink, as well as work by many of the leading painters including Samuel

Peploe, Ben and Winifred Nicholson, a strong group of St Ives work, Kurt Schwitters, Stanley Spencer, Graham Sutherland,

John Piper, Ivon Hitchens, Frank Auerbach, Paula Rego, Bridget Riley and Sean Scully. In addition, there is a strong holding

of prints by such names as Henry Moore, David Hockney and Lucien Freud, as well as others previously mentioned.

In addition to the core collections outlined above, there are subsidiary collections, some of which, such as the craft collections of

Arts and Craft furniture and ceramics and twentieth century studio pottery, are used in the displays at Blackwell.

The collections at Museum of Lakeland Life & Industry are extremely varied, consisting not just of items strongly related to

local life and industry, but also objects of more general relevance. The collection is divided broadly into categories as follows;

farming; local vernacular furniture; costume (dating from seventeenth to mid twentieth centuries); local urban and light industry

tools, machinery and artefacts; rural trades and industry implements; clock-making; photography; the Arts and Crafts Movement

in Cumbria; local authors (including Arthur Ransome); domestic objects; sport and leisure; toys, games and dolls; education

materials and ephemera.

Floods December 2015 Like many residents and businesses close to the River Kent in Kendal, Abbot Hall was affected by the flood waters in December

2015. Flood water was restricted to the ground floor and the Trust was fortunate to be able to get senior and experienced staff

to the Gallery and their immediate intervention secured the Gallery and collections. Unfortunately a section of a collections

storage area was partly affected. The Trust has moved collections to appropriate off-site storage whilst flood recovery works are

undertaken at the Gallery. The cost of the recovery works and temporary storage arrangements will be covered by insurance.

The total value of the claim is unknown at present and the claim is expected to be settled mid-2017.

Blackwell, The Arts & Crafts HouseBlackwell, which Lakeland Arts Trust opened in 2001, reflects the development of the Arts and Crafts Movement both in Britain

and internationally, with particular emphasis on its architect Mackay Hugh Baillie Scott (1865-1945), and the development of

applied art and craft disciplines up to the present day. The charitable company has very limited collections at Blackwell, and

these are defined principally by the following:

42 43

• material relating to M.H. Baillie Scott including furniture, books and published designs

• archive material relating to the history of Blackwell

• Arts and Crafts furniture and a small number of objects by Arts and Crafts designers and/or makers

Lakeland Arts’ displays at Blackwell are principally comprised of objects drawn from the collections and objects on loan from

public and private collections. There are two exceptions to this principle:

• a small number of ceramics which were donated on the opening of Blackwell to enhance its displays and ‘dress’ the period

rooms; these may be regarded as constituting a handling collection

• architectural fittings acquired to complete or enhance the fabric of the house, such as light fittings.

The Steamboat Museum CollectionThe historic boat collection at the Windermere Steamboat Museum, which was opened in 1977, demonstrates the development

of boating on Windermere from around 1780 to 1960. The collection is acknowledged to be one of the most important

collections of vessels generic to one location worldwide and to reflect important themes in technical, social and economic history.

The museum’s founder Mr G.H. Pattinson (1918-1997) collected most of the boats over a period of 30 or more years. The

Pattinson Collection was augmented and added to by the collection of the Windermere Nautical Trust and covers many aspects

of boating on Windermere including wooden steam launches, motor boats, yachts and canoes, as well as small objects and

printed ephemera. The Pattinson collection was transferred to the Lakeland Arts Trust through H.M. Government’s Acceptance

in Lieu Scheme in 2007. Lakeland Arts is now also responsible for the collections of the Windermere Nautical Trust following the

merger of Lakeland Arts Trust with Windermere Nautical Trust in 2009.

Acquisitions

Fine artThe following list is indicative of the types of areas where the acquisition of new items could be seen as a priority, but this should

not be seen as an insurmountable barrier to exploring other avenues:

a. Eighteenth century portraiture, with a particular emphasis on George Romney and his contemporaries, such as Joshua

Reynolds, Thomas Gainsborough and Joseph Wright of Derby. Particular priority should be given to acquiring a good self

portrait by Romney, as well as obtaining works that broaden further the range of works by the artist in the collection.

b. English watercolours from the late-eighteenth and early-nineteenth century, with a particular emphasis on depictions of the

Lake District by well- established names, or on high-quality works on paper by key artists from the period, such as JMW

Turner or John Constable.

c. John Ruskin. Good quality works that strengthen further the charitable company’s already impressive collection of

watercolours and drawings by the artist.

d. Twentieth century British Modernism. Works should be acquired that both enhance existing strengths (such as the St Ives

school, Neo-Romanticism, Kurt Schwitters, the School of London), and fill gaps in the collection (particularly early twentieth-

century British art).

e. Contemporary art. Priority should be given to items that fit in with the ethos of the charitable company, and particularly Abbot

Hall, or that relate to existing areas of the collection. The charitable company should also consider acquiring examples of

work by living artists who exhibit at its venues, thereby retaining a legacy from the show, as well as generating links between

the exhibition programme and the permanent collection.

Decorative Art and Furniture The priority is to acquire works that relate to Blackwell, MH Baillie Scott, the Arts and Crafts Movement, its earlier influences and

legacy in relation to contemporary craft practice.

Collecting principally covers the period from around 1840 to the present. The charitable company could acquire a limited number

of earlier pieces of furniture for the period rooms at Abbot Hall to raise the quality of the collections shown.

44 45

Social and Industrial History A priority is to review the existing collections to establish the significance of these and identify where the strengths are and how

use of the collections can be developed in the future. In the meantime, acquisitions will be limited to items which the charitable

company identifies as of sufficient significance and importance to warrant adding to the existing collection.

Steamboats and Historic Vessels Lakeland Arts will acquire a limited amount of material to build on and enhance the existing collection and to provide new and

additional ways of interpreting the history and technology of boating on Windermere. The priorities will relate to the themes

explored in the new museum; Windermere Jetty, Museum of Boats, Steam and Stories.

New acquisitions may be made to fill gaps within the existing collection or in order to enhance the interpretation and

understanding of an existing object within the collection. Potential acquisitions must meet the four basic criteria of relevance, use,

condition and provenance:

Relevance – Abbot Hall Art Gallery aims to inspire, challenge and stimulate people through direct engagement with the work

of artists. Blackwell is concerned with engaging people in a dialogue about M.H. Baillie Scott, the Arts and Crafts Movement

and its history and legacy, as well as contemporary craft practice. The Windermere Jetty, Museum of Boats, Steam and Stories

is concerned with engaging people in a dialogue about the past, present and future of boating on Windermere. Museum of

Lakeland Life & Industry aims to engage people with social and industrial history through collections that relate to the life and

industry of those who lived and worked in the locality and the Lake District. New acquisitions at all sites will be assessed in terms

of their capacity to act as a focus for interpretation, discussion, debate or research with particular audiences.

Use – The object must have the capacity now or in the future to tell a story in one of the media used by Abbot Hall Art Gallery,

Blackwell, The Arts & Crafts House, Windermere Jetty and Museum of Lakeland Life & Industry including, but not limited to,

exhibitions, web products, broadcasts and popular and scholarly publications. To facilitate this as much associated information

as possible should be collected at the same time as the object.

Condition – The object must be in a reasonable state of completeness and in good condition relative to its rarity or historical

importance. It must not require significant resources for conservation and/or storage, nor must it present any unacceptable

hazards, either in storage or display. Items in poor condition will only be considered if they are unique or are of sufficient

significance to warrant acquisition.

Provenance – The object must come with good title, and be properly documented regarding its provenance and authenticity. It

should be free from any onerous restoration requirements or special conditions, and ideally, come with its intellectual property

rights (for example copyright).

DisposalBy definition, the Lakeland Arts Trust has a long-term purpose and holds collections in trust for society in relation to its stated

objectives. The Trustees therefore accept the principle that sound curatorial reasons for disposal must be established before

consideration is given to the disposal of any items in Lakeland Arts collections. The disposal policy is detailed in Lakeland Arts’

Collections Development Policy (November 2012).

Disposal preliminariesa. The governing body will ensure that the disposal process is carried out openly and with transparency.

b. By definition, Lakeland Arts Trust has a long-term purpose and holds collections in trust for society in relation to its

stated objectives. The governing body therefore accepts the principle that sound curatorial reasons for disposal must be

established before consideration is given to the disposal of any items in the museum’s collection.

c. Lakeland Arts will confirm that it is legally free to dispose of an item and agreements on disposal made with donors will be

taken into account.

d. When disposal of a museum object is being considered, Lakeland Arts will establish if it was acquired with the aid of an

external funding organisation. In such cases, any conditions attached to the original grant will be followed. This may include

repayment of the original grant and a proportion of the proceeds if the item is disposed of by sale.

Motivation for disposal and method of disposal e. When disposal is motivated by curatorial reasons the procedures outlined in the Collections Policy will be followed and the

44 45

method of disposal may be by gift, sale or exchange.

f. The charitable company will not undertake disposal motivated principally by financial reasons

The disposal decision-making process g. Whether the disposal is motivated either by curatorial or financial reasons, the decision to dispose of material from the

collections will be taken by the governing body only after full consideration of the reasons for disposal. Other factors

including the public benefit, the implications for the charitable company’s collections and collections held by museums and

other organisations collecting the same material or in related fields will be considered. External expert advice will be obtained

and the views of stakeholders such as donors, researchers, local and source communities and others served by the

charitable company will also be sought.

Responsibility for disposal decision-making h. A decision to dispose of a specimen or object, whether by gift, exchange, sale or destruction (in the case of an item too

badly damaged or deteriorated to be of any use for the purposes of the collections or for reasons of health and safety), will

be the responsibility of the governing body of Lakeland Arts acting on the advice of professional curatorial staff, if any, and

not of the curator of the collection acting alone.

Use of proceeds of sale i. Any monies received by Lakeland Arts governing body from the disposal of items will be applied for the benefit of the

collections. This normally means the purchase of further acquisitions. In exceptional cases, improvements relating to the

care of collections in order to meet or exceed Accreditation requirements relating to the risk of damage to and deterioration

of the collections may be justifiable. Any monies received in compensation for the damage, loss or destruction of items will

be applied in the same way. Advice on those cases where the monies are intended to be used for the care of collections will

be sought from the Arts Council England.

j. The proceeds of a sale will be ring-fenced so it can be demonstrated that they are spent in a manner compatible with the

requirements of the Accreditation standard.

Disposal by gift or sale k. Once a decision to dispose of material in the collection has been taken, priority will be given to retaining it within the public

domain, unless it is to be destroyed. It will therefore be offered in the first instance, by gift or sale, directly to other Accredited

Museums likely to be interested in its acquisition.

l. If the material is not acquired by any Accredited Museums to which it was offered directly as a gift or for sale, then the

museum community at large will be advised of the intention to dispose of the material, normally through an announcement in

the Museums Association’s Museums Journal, and in other specialist journals where appropriate.

m. The announcement relating to gift or sale will indicate the number and nature of specimens or objects involved, and the

basis on which the material will be transferred to another institution. Preference will be given to expressions of interest from

other Accredited Museums. A period of at least two months will be allowed for an interest in acquiring the material to be

expressed. At the end of this period, if no expressions of interest have been received, the charitable company may consider

disposing of the material to other interested individuals and organisations giving priority to organisations in the public domain.

Disposal by exchange n. The nature of disposal by exchange means that Lakeland Arts will not necessarily be in a position to exchange the material

with another Accredited museum. Lakeland Arts will therefore ensure that issues relating to accountability and impartiality are

carefully considered to avoid undue influence on its decision-making process.

o. In cases where Lakeland Arts wishes for sound curatorial reasons to exchange material directly with Accredited or

unaccredited museums, with other organisations or with individuals, the procedures in paragraphs 13a-13d and 13g-13h of

the Collections Policy will be followed as will the procedures in paragraphs 13p-13s.

p. If the exchange is proposed to be made with a specific Accredited museum, other Accredited museums which collect in the

same or related areas will be directly notified of the proposal and their comments will be requested.

q. If the exchange is proposed with a non-accredited museum, with another type of organisation or with an individual, Lakeland

Arts will make an announcement in the Museums Journal and in other specialist journals where appropriate.

r. Both the notification and announcement must provide information on the number and nature of the specimens or objects

46 47

involved both in Lakeland Arts collection and those intended to be acquired in exchange. A period of at least two months

must be allowed for comments to be received. At the end of this period, Lakeland Arts must consider the comments before

a final decision on the exchange is made.

Documenting disposalsFull records will be kept of all decisions on disposals and the items involved and proper arrangements made for the preservation

and/or transfer, as appropriate, of the documentation relating to the items concerned, including photographic records where

practicable in accordance with SPECTRUM Procedure on de-accession and disposal.

Preservation and ManagementLakeland Arts Trust was first awarded MLA Accreditation status in 2009 and following the award Abbot Hall Art Gallery,

Blackwell, The Arts & Crafts House and Museum of Lakeland Life & Industry have entered into a planned timetable of collections

preservation, care and management. MLA Accreditation status was reviewed during 2013 and successfully maintained by

Lakeland Arts. Windermere Jetty is currently applying for Working towards Accreditation status, with a view to applying for

Designation once full Accreditation is achieved.

These plans are regularly revisited by the curatorial team led by the Director of Exhibitions & Collections; they are also monitored

by the Arts Council England Accreditation Board. The charitable company abides by the Museums Association’s Code of Ethics.

In 2010 some of the principal objects in the collection were valued by Sotheby’s. The valuation was carried out specifically to

inform a risk management exercise which resulted in a review of the insured values and risks for the collection. For the purpose

of reinstatement the value of all of the charitable company’s Heritage assets, including buildings and land, is estimated as

£25.4m.

14. Investments

Endowment Fund

£

Blackwell Endowment

Fund£

General Fund

£

Total

£

Investment Portfolio

Market Value as at 1 January 2016 662,846 1,015,228 363,550 2,041,624

Additions 0

Disposal proceeds 0

Movement on cash income account 0

Net investment gains/(losses) 21,097 69,721 24,135 114,953

Market Value as at 31 December 2016 683,943 1,084,949 387,685 2,156,577

Cash held as part of portfolio 0 0 0 0

Value of portfolio as at 31 December 2016 683,943 1,084,949 387,685 2,156,577

Historical cost as at 31 December 2016 531,092 870,470 316,964 1,718,526

Group Charity

2016£

2015£

2016£

2015£

UK Listed investments are represented by:

Endowment Fund

UK Global Balanced 1,413,892 1,323,074 328,943 307,846

Property 355,000 355,000 355,000 355,000

Cash 0 0 0 0

General Fund

UK Global Balanced 387,685 363,550 387,685 363,550

Shares in trading subsidiary 2 2

2,156,577 2,041,624 1,071,630 1,026,398

46 47

The Blackwell Endowment Fund is held by Lakeland Arts Trust

Investments held by Lakeland Arts also include an additional £2 investment in the subsidiary company, Lakeland Arts Enterprises

Ltd at cost (see note 5).

15. Debtors

Consolidated2016

£

Consolidated2015

£

Charity2016

£

Charity2015

£

Trade debtors 679 15,627 679 15,156

VAT 160,425 21,217 169,623 37,046

Prepayments 258,891 47,074 204,768 46,552

Grant income due 651,157 650,720 651,208 650,720

Lakeland Arts Support Trust 10,775 13,086 10,775 13,086

Lakeland Arts Trust 8,055

Lakeland Arts Enterprises 64,698

1,081,927 747,724 1,109,806 762,560

16. Creditors

Consolidated2016

£

Consolidated2015

£

Charity2016

£

Charity2015

£

Trade creditors 1,001,157 203,103 987,505 188,425

Other taxes and social security 23,047 17,663 23,047 17,663

Lakeland Arts Enterprises Ltd 1,780

Lakeland Arts Trust 0 0 0 198

Accruals 58,476 42,279 55,246 39,159

Other creditors 5,870 9,062 5,870 9,051

1,088,550 272,107 1,071,668 256,256

17. Pension and other schemes

Defined benefit pension schemesCumbria Local Government Pension SchemeLakeland Arts Trust was a member of the Cumbria Local Government Pension Scheme before the operations were transferred to

Lakeland Arts on 1 August 2013. The Scheme is not currently active although the charity is working with the Council to prevent

crystallisation by bringing an employee into the Scheme and paying contributions on a normal basis. The current payments into

the scheme relate to past deficit contributions.

The date of the most recent comprehensive actuarial valuation was 31 March 2014. No actuarial valuation was available for these

accounts due to the fact that the Scheme is not fully active. Where the scheme is in deficit and where the charity has agreed to

a funding deficit funding arrangement, the charity has to recognise a liability for this obligation. The amount recognised is the net

present value of the deficit reduction contributions payable under the agreement that relates to the deficit. The present value is

calculated using the discount rate of 1.45% (2015 - 2.48%) in these accounts. The unwinding of the discount rate is recognised

as a finance cost in other expenses. The discount rate used is the equivalent single discount rates which, when used to discount

the future recovery plan contributions due, would give the same results as using a full AA corporate bond yield curve to discount

the same recovery plan contributions. The amount payable is based on the latest information available which is £31,900pa.

48 49

Reconciliation of scheme assets and liabilities to assets and liabilities recognisedThe amounts recognised in the statement of financial position are as follows:

2016£

2015£

Present value of defined benefit obligation 477,585 466,754

Defined benefit obligationChanges in the defined benefit obligation are as follows:

2016£

Present value at start of year 466,754

Past service cost (28,617)

Actuarial gains and losses 39,448

Present value at end of year 477,585

18. Reconciliation of Movement in Consolidated Funds

Opening funds at 1

January 2016

£

Income

£

Expenditure

£

Transfers/ Investment

Gains/(Losses)

£

Closing funds at 31 December

2016£

Unrestricted funds:

General funds 631,486 1,747,967 (1,828,982) 24,135 574,606

Pension scheme deficit (466,754) 28,617 (39,448) (477,585)

Total unrestricted funds 164,732 1,747,967 (1,800,365) (15,313) 97,021

Restricted funds:

Windermere Jetty Asset in the course of construction 1,612,432 5,673,547 0 704,636 7,990,615

Windermere Jetty Project capital funds 2,195,475 0 (305,056) (704,636) 1,185,783

Development funds 500 0 0 0 500

Boat conservation funds 2,000 0 0 0 2,000

Blackwell funds 20,094 73,853 (87,458) 0 6,489

Learning funds 2,098 24,203 (12,881) 0 13,420

Aurelius Trust (Blackwell Library) 1,216 0 (53) 0 1,163

Exhibitions & Collections funds 4,000 7,750 (11,750) 0 0

Abbot Hall funds 145 116,019 (25,600) 0 90,564

Total Restricted funds 3,837,960 5,895,372 (442,798) 0 9,290,535

Endowment funds:

General Endowment 662,848 0 0 21,097 683,945

Blackwell Endowment 1,015,228 69,721 1,084,949

Windermere Jetty Endowment 127,800 182,005 0 0 309,805

Total Endowment funds 1,805,876 182,005 0 90,818 2,078,699

Total 5,808,569 7,825,344 (2,243,163) 75,505 11,466,255

48 49

19. Analysis of Group Net Assets Between Funds

Unrestricted£

Restricted£

Endowment£

Total£

Tangible fixed assets 259,556 0 0 259,556

Asset in the course of construction 0 7,990,616 0 7,990,616

Investments 77,878 0 2,078,699 2,156,577

Stock 36,639 36,639

Debtors 431,207 650,720 0 1,081,927

Cash at bank and in hand 857,876 649,199 1,507,075

Current liabilities (1,088,550) 0 0 (1,088,550)

Pension deficit (477,585) (477,585)

97,021 9,290,535 2,078,699 11,466,255

20. Trustees’ and Key Management Personnel Remuneration and Expenses

The trustees neither received nor waived any emoluments during the year (2015 £0).

The total amount of employee benefits received by key management personnel is £177,562 (2015 £202,453). The charity

considers its key management personnel comprise Chief Executive, Chief Operating Officer, Director of Finance & Resources,

and Director or Programming.

There were 0 trustees (2015 0 trustees) accruing pension arrangements.

Out of pocket expenses were reimbursed to trustees as follows:

2016£

2015£

Travel 690 1,392

Included in above are £0 (2014 £0) which have been paid directly to third parties.

21. Employees

The employees of Lakeland Arts during 2016, expressed as average annual full time equivalent numbers, consisted of:

Abbot Hall Blackwell Windermere Jetty

Total

Management, curatorial, marketing and learning 9.3 7.3 5.6

Administration 1.3 5.0 0.0

Desk/shop staff 3.4 3.4 0.0

Coffee House & Tea Room 3.7 6.8 0.0

Other 0.8 0.8 0.6

Total 18.5 23.2 6.1 47.8

22. Staff Costs

2016£

2015£

Wages and salaries 968,391 900,635

Social security costs 71,690 64,087

Pension Costs 4,857

1,044,938 964,722

50 51

The number of full time/regular employees whose pay and taxable benefits exceeded £60,000 fell within the following bands:

2016 2015

£60,000 - £69,999 1 1

23. Contingent Liability

The charity is currently involved in a substantial construction project which is in delay. The parties to the contract and their

advisors are considering the effects of that delay. No firm conclusions are capable of being made at this stage.

24. Capital Commitments

Lakeland Arts is committed to the development of a new museum, Windermere Jetty, which is due to open to the public in

2018. The charity has entered into a construction contract with Thomas Armstrong for £9.7m. The total project cost including

construction, related professional fees and conservation and activity programmes is £18.5m. Funding has been secured to cover

most of the cost and the shortfall will be raised in the coming year.

25. Taxation

The income which Lakeland Arts receives from admission charges to the public to view its collections arises, in the opinion of the

Trustees, in conjunction with and for the purposes of Lakeland Arts and is applied solely for the purposes of Lakeland Arts. Profits

of Lakeland Arts Enterprises Ltd on its trading activities are transferred to Lakeland Arts under gift aid. It is considered that no

liability to taxation other than Value Added Tax arises.

26. Related Party Transactions

Martin Ainscough, Chair of Trustees, is a Director and Shareholder of Miller Howe Ltd. During 2016 Lakeland Arts paid Miller

Howe £511 mainly for booked accommodation for guests in relation to exhibition programming.

Anthony Collinson, Trustee, is a Director of JWK Solicitors. During 2016 Lakeland Arts paid £14,137 to JWK Solicitors for legal

advice. At 31 December Lakeland Arts owed JWK Solicitors £4,413.

23. Prior Year Adjustment

Lakeland Arts Trust was not previously consolidated in the group accounts. The new Charities SORP FRS102 requires charities

to be consolidated where they are controlled by another entity, in this case by Lakeland Arts as sole trustee, and so the accounts

have been amended to reflect this. The net effect was an uplift of £607,364 to total funds (2015 - £548,474). The full accounts

of Lakeland Arts Trust (charity number 526980) are available to view at the Charity Commission.

50 51

Front and Back Cover: Paul Jenkins, Detail: Phenomena Gemini Encounter East 2001, acrylic on canvas, 185.9 x 255 cm© 2005 Estate of Paul Jenkins. Courtesy Redfern Gallery, London

Contents Page: Alasdair Gray, Marion Oag and the Birth of the Northern Venus, 1977. Arts Council Collection, Southbank Centre, London © the artist (and Sorcha Dallas, Glasgow)

Page 5: Rembrandt, Self Portrait at the Age of 63 (detail). © The National Gallery, London

Page 7: Canaletto, The Grand Walk Vauxhall Gardens. © Compton Verney, photo by Prudence Cuming Associates Ltd.

Page 7: Sculpture from the Laura Ford: Seen and Unseen exhibition at Abbot Hall Art Gallery. © Florence Acland Photography

Page 8: Winifred Nicholson, Daffodils and Pewter Jug, 1953 (detail). © Trustees of Winifred Nicholson

Page 8: Chris Keenan, Anemone Tea Set (after William de Morgan), 2016. © Lakeland Arts

Page 9: Laura Ford, Weeping Girl © Laura Ford. Photograph © Tony West Photography

Page 9: Photograph by Joseph Hardman,

Page 10: Nicholas Volley, Tea Time. 2005 (detail). © Lakeland Arts Page 11: Ben Nicholson, (1932) crowned head – the queen, 1932

Page 12: In The Moment workshop in 2016. © Florence Acland Photography

Page 13: Volunteer helping at Art Camp 2016 at Abbot Hall Art Gallery. © Florence Acland Photography

Page 14: Aerial view of Winderemere Jetty in May 2017. Photo by Skylark Photography. © Lakeland Arts

Page 18: Henry Moore, Seated Figures (Studies for Sculpture), 1957. © Lakeland Arts

Page 21: Ceramic pots from the Craft Shop at Blackwell, The Arts & Crafts House. Photo by Mark Harrison. © Lakeland Arts

Page 23: Knox rug at Blackwell, The Arts & Crafts House.

Page 24: Bracelet from the Craft Shop at Blackwell, The Arts & Crafts House. Photo by Mark Harrison. © Lakeland Arts

Images

Designed and published by Lakeland Arts

© Lakeland Arts, Abbot Hall, Kendal, Cumbria LA9 5AL

Registered charity no. 1153001lakelandarts.org.uk

This document is available in PDF format from our website, or on request from info@lakelandarts.org.uk or telephone 01539 722464.