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2013/14Reports and Financial Statementsfor the year ended 31 March 2014

Charity number 1034245

Contents

Annual Report:

• Trustees’ Annual Report 03

o Annual Governance Statement 06

• Environmental report 43

• Remuneration report 47

• Statement of Council’s and the Accounting Officer’s responsibilities 49

The Certificate and Report of the Auditor General for Wales to the Arts Council of Wales 50

Financial statements:

• Statement of financial activities 52

• Balance sheet 53

• Cash flow statement 54

• Notes forming part of the financial statements 55

Annex to the Annual Report (not forming part of the financial statements):

• Grants 80

General Activites Account

Arts Council of Wales is committed to making informationavailable in large print, Braille, audio and British SignLanguage and will endeavour to provide information inlanguages other than Welsh or English on request.

Arts Council of Wales operates an equal opportunities policy.

Front Cover: Theresa Nguyen, Gold Medal for Craft and Design at Y Lle Celf, National Eisteddfod of Wales 2013(image: Dewi Glyn Jones)

BIANCO, NoFit State (image: Richard Davenport)

Annual Report for the year ended 31 March 2014Trustees’ Annual Report

Reference and administrative details

Trustees

Council Members who served since 1 April 2013 were:

Attendance at meetings during 2013/14

Audit Capital RemunerationCouncil Committee Committee Committee1

Number of meetings held:

6 5 5 0

Professor Dai Smith, (c) 6 Committee ChairChairman n/a

Dr Kate Woodward, (d) 3Vice-chairman

Emma Evans (a) 5 Committee Chair(to 31 March 2014) (to March 2014)

5

Dr John Geraint (a)(c) 4.5 Committee Chair n/a(from April 2014)

1/1

Michael Griffiths OBE (a) 4.5 3.5

Melanie Hawthorne 5

Dr Lesley Hodgson (a) 3.5 0/1

Margaret Jervis MBE DL (c)(v) 4.5 n/a

Marian Wyn Jones (i)(iii) 4

Andrew Miller 6

Osi Rhys Osmond (d) 5

Richard Turner (ii)(iv) 5

Alan Watkin (a)(b) 6 (to December 2013) 53/4

Professor Gerwyn Wiliams (b) 3 Committee Chair5

John C Williams (a)(b) 6 (to December 2013) 24/4

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1 In the absence of guidance from the Welsh Government in respect of the Chair’s remuneration and Chief Executive’s salary, the Remuneration Committee did not meet during 2013/14.

(a) Member of Audit Committee(b) Member of Capital Committee(c) Member of Remuneration Committee(d) Member of Wales at the Venice Biennale of Art Committee

For at least part of the period covered by this report Council members (identified by the number in brackets aftertheir name in the above list) also served as Members or senior employees of the following public bodies:

(i) Betsi Cadwaladr Health Board(ii) Monmouthshire County Council(iii) S4C(iv) University of Wales(v) Wales Council for Voluntary Action




6 5 5 0

Attendance of independent Committee members:

Gareth Jones (a) 5

Phillip Westwood (a) 4

Jonathan Adams (b) 2/3(to October 2013)

Mark Davies (b) 4

Roland Wyn Evans (b) 4

Alan Hewson 1/1(appointed March 2014) (b)

Janet Roberts (b) 1/3(to October 2013)

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Chief Executive

Nicholas Capaldi

Offices

Mid and West Wales region:

The Mount18 Queen StreetCarmarthenSA31 1JT

Auditor

Auditor General for WalesWales Audit Office24 Cathedral RoadCardiffCF11 9LJ

Bankers

The Co-operative Bank16-17 High StreetCardiffCF10 1AX

North Wales region:

Princes Park IIPrinces DriveColwyn BayLL29 8PL

Internal auditors

Deloitte LLP5 Callaghan SquareCardiffCF10 5BT

South Wales regionand national office:

Bute PlaceCardiffCF10 5AL

Solicitors

Geldards LLPDumfries HouseDumfries PlaceCardiffCF10 3ZF

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Annual Governance Statement

This governance statement is the personalresponsibility of me, Nicholas Capaldi, the ArtsCouncil of Wales’ Accounting Officer and ChiefExecutive. It sets out the governancearrangements of the Arts Council of Wales. It also describes how I have discharged myresponsibilities for ensuring that we conduct ourbusiness, in respect of both exchequer andlottery activity, in accordance with the law. Thisincludes providing the necessary assurancesthat we are adhering to proper standards andestablishing the necessary safeguards to protectthe use of public money. I explain how thesefunds are properly accounted for, and usedeconomically, efficiently and effectively tosupport the delivery of our plans and priorities.

About the Arts Council of Wales:

The Arts Council of Wales – CyngorCelfyddydau Cymru – was established by Royal Charter on 30 March 1994, and exists tosupport and develop the arts in Wales. It doesso for the benefit of people throughout Wales,and to support Welsh art internationally.

We are also a Welsh Government SponsoredBody, a National Lottery Distributor, and aregistered charity (number 1034245).

Our Royal Charter sets out our objectives. They are to:• develop and improve the knowledge,

understanding and practice of the arts;• increase the accessibility of the arts to the

public; and,• work through the Welsh and English

languages.

We also work with other public bodies in Wales,and with the other Arts Councils in the UK, toachieve these aims. You can find a copy of ourRoyal Charter on our website.

We operate within a carefully prescribed and regulated environment. Arts Council of Wales is accountable to the Welsh Government’s Minister for Culture and Sport.

We have to operate within a framework thatsets out the terms and conditions under whichWelsh Ministers provide our grant-in-aidfunding, and how we are able to use thisfunding.

Along with other public bodies in Wales, wealso have to operate within the guidancecontained in Managing Welsh Public Money.The activities we carry out in connection withour Collectorplan scheme and Artists Loansscheme are subject to the Consumer Credit Actand guidance issued by the Financial ConductAuthority.

We are a distributor of Lottery funds which,under the National Lottery etc. Act 1993 (asamended), means we are accountable to theUK’s Secretary of State for Culture, Media andSport. Our financial directions are issued by theSecretary of State, and our policy directions bythe Welsh Ministers. These set out how we mustoperate in respect of Lottery distributionactivities.

We have to account for lottery distributionactivities separately from the rest of ouractivities, and have appropriate arrangementsin place to ensure we produce two sets ofpublished financial statements. Our LotteryDistribution accounts are audited on behalf ofthe Comptroller and Auditor General by theWales Audit Office. The Wales Audit Office alsoaudits our General Activities account on behalfof the Auditor General for Wales.

As a charity we have to ensure that we complywith the requirements of the Charities Acts1960, 2006 and 2011, and follow guidanceissued by the Charity Commission.

We have designed our systems and processes totake account of these various responsibilities. Within these frameworks we make independentdecisions regarding the strategic direction of theorganisation, grant funding, and other financialdecisions.

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Should the need arise, the Public ServicesOmbudsman for Wales, the ParliamentaryCommissioner for Administration, the CharityCommission, the National Audit Office, and theWales Audit Office are all able to investigatethe Council’s affairs.

Our Governance arrangements:

We are governed by a Board of Trustees –Council – which currently consists of a Chairand thirteen members (fourteen up to 31 March2014), one of whom is appointed as Vice-Chair. Since March 2013 the WelshGovernment’s Minister for Culture and Sporthas been responsible for appointing ourTrustees, each of whom brings specific expertiseand knowledge to the oversight anddevelopment of our activities.

Appointments are usually for a three year term,renewable a maximum of twice. The Chair ofCouncil is a remunerated position; rates are setannually by the Welsh Government. All othermembers provide their time and expertise on avoluntary basis, but are reimbursed for out-of-pocket expenses incurred on Council business.A summary is contained in note 9b of thesefinancial statements.

Council is responsible for the strategic directionand management of our organisation. It isresponsible for ensuring, through me as theChief Executive, that we operate within thepolicy framework set by the Welsh Government,and that we satisfy the various otheraccountabilities required of us. The Chairmaintains regular contact with the Minister, andthe Chief Executive meets officials quarterly toprovide updates.

As the ultimate decision making body for theorganisation, Council members have retainedkey decisions on corporate policy, theformulation of our Corporate and OperationalPlans, and any major alterations to the termsand conditions of service for staff. They also setthe annual budget, decide on the annual

allocation of grants to revenue-fundedorganisations, and approve all grants of over£50,000, or in the case of Lottery fundedcapital projects over £250,000. Decisions ongrants below these thresholds have beendelegated to authorised staff, and to the CapitalCommittee respectively.

To help support its work, Council has appointedthree committees to provide specialist advice.These are: Audit; Capital; and Remuneration &Human Resources Committees. It also has anad hoc advisory committee, to advise on Walesin Venice, and internal monitoring groups who,via the Senior Management Team, assistCouncil in meeting its responsibilities.

Each committee includes Council members, oneof whom acts as chair, and co-optedindividuals, and is required to operate underspecific terms of reference. Independentcommittee members are appointed for theirspecialist skills and experience, through anopen selection process. Minutes of eachcommittee meeting are provided to the nextavailable full meeting of Council and eachcommittee is also required to submit an annualreport to Council, summarising its work.

All new members of Council and of eachCommittee undergo an induction processappropriate to their role, and are encouragedto continue their development during theirperiod of appointment.

During the year, Council reviewed and updatedthe terms of reference of each of theCommittees, and in some cases changedmembership. In order to provide furtherassurance, Council expanded the role of theRemuneration and Appointments Committee toinclude oversight of Human Resources.

The Audit Committee is responsible forproviding assurance to Council on theeffectiveness of our governance, riskmanagement and internal controlarrangements. It reported to Council on the

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main focus of its work, including our internalgovernance arrangements, and thedevelopment of a Corporate AssuranceFramework; the monitoring regime of ourportfolio of revenue-funded organisation(RFOs); and the internal audit programme, the majority of reviews of which resulted insubstantial assurance or higher.

The Capital Committee is responsible foradvising Council on the development of policyon all aspects of capital development, includingfunding priorities and schemes. It has delegatedauthority to make funding decisions on lotterycapital grants from £50,001 to £250,000.The Committee makes recommendations onlarger capital grants to Council.

The Remuneration & HR Committee isresponsible for reviewing the performance ofthe Chief Executive against agreed objectives,and for setting targets for the forthcoming year.It also agrees the level of remuneration for the

Chair within the limits determined by the WelshMinisters. In future, it will have responsibility formonitoring HR matters on behalf of Council.

Neither the Capital nor Remuneration & HRCommittees made formal annual reports toCouncil.

Details of membership of Council and thesethree committees, together with details ofmembers’ attendance at meetings, can befound in the Reference and administrativedetails section at the beginning of the Trustees’Annual Report.

The Venice Advisory Committee was responsiblefor developing and overseeing the organisationof our presence at the 2013 Venice Biennale of Art.

The Senior Management Team (SMT) is led by me, supported by five Directors eachresponsible for particular aspects of our work.

Council

CapitalCommittee

StrategicEqualities

MonitoringGroup

National Advisers

Remuneration &HR Committee

Audit Committee

Venice AdvisoryCommittee

SeniorManagement

Team

Welsh LanguageMonitoring

Group

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The Directors of Arts; Engagement &Participation; and Enterprise & Regenerationmake up the Arts Development team, whilst theDirectors of Finance & Resources; andInvestment & Funding Services make up theCorporate Services Team. I also have a ChiefExecutive Team. Further details are contained inthe Remuneration Report and note 9 of thesefinancial statements.

We also had two internal monitoring groups,the Strategic Equalities Monitoring Group, andthe Welsh Language Monitoring Group, to helpdrive forward Council’s agenda in these areas.The Strategic Equalities Monitoring Groupproduced a comprehensive Annual EquityReport for 2012/13 which examined our RFOportfolio and our people – staff, Committeesand advisers – in detail. The report also citedrelevant examples of other work we funded. A copy can be found athttp://www.artscouncilofwales.org.uk/arts-in-wales/engagement-and-participation/equality-and-diversity. Quarterly updates from bothgroups were provided to Council.

Our National Advisers are appointed throughan open recruitment process and bringspecialist knowledge to help support policydevelopment, the assessment of grantapplications, and to provide advice to officers.

We promote values of good governance:

We support Lord Nolan’s seven Principles forPublic Life and strive to ensure that all of ouremployees, Trustees, Committee members andNational Advisers apply and adhere to thesePrinciples.

To help support this, we have a Code of Best Practice which helps ensure the roles and responsibilities of members and officers areclearly defined. It also contains the expectedstandards of propriety that members and staffshould adhere to. The Code was reviewed andupdated during the year. You can find a copyon our website.

We require each member of Council, of eachCommittee, and all National Advisers and staffto complete an annual declaration of intereststatement, and to ensure that changes incircumstances are promptly notified. Theregister of interests of Members of the Council,Committees and National Advisers is availablefor public inspection, by appointment, at eachof the Council’s offices during normal workinghours.

Written reports are circulated in advance ofeach Council and Committee meeting, forconsideration by members, with tabled itemsand verbal reports only accepted in exceptionalcircumstances. You can find copies of theagenda and minutes of our Council meetingson our website.

As part of our commitment to improving ourperformance, we are keen to learn from othercomparable public bodies. Working with HigherEducation Funding Council for Wales, we werethe first Welsh Government Sponsored Bodiesto hold reciprocal visits for the Chairs of Auditto attend each other’s Audit Committee asobservers.

Although the Corporate Governance codeissued by HM Treasury does not directly apply toArts Council of Wales, as Accounting Officer Iam satisfied that the arrangements we have inplace reflect good practice. I also believe thatthe Arts Council has complied with theprinciples of accountability, effectiveness, andleadership expressed within the Treasury’sCode, in so far as they are relevant to WelshGovernment Sponsored Bodies and LotteryDistributors. Council endorses this view.

We take informed decisions:

The decisions taken by our Council andCommittees are informed by advice providedby staff of the Arts Council. Papers and reportsproduced by officers are expected to showclearly all the relevant information that isneeded to inform decisions. In the rare

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instances where the information provided doesnot meet the required standards, the paper isrejected, and a replacement commissioned.Where appropriate, advice from officers issupplemented with specialist advice from ourNational Advisers, and where relevant withspecialist expert advice and legal opinions.Council will continue to ensure that it hassufficient time to properly consider and debatepolicy and the future direction of theorganisation.

Council was content with the timeliness andquality of data and information provided for its use, and that the information provided inrespect of grant funding was reliable. Thesystems used to provide the information ongrants are reviewed annually as part of theinternal audit programme.

Key policy proposals are put out to publicconsultation. Responses and feedback furtherinform discussions at Council before polices are finalised.

Matters considered by Council during the year:

Council met six times during 2013/14 todischarge its responsibilities. In total the fifteenmembers attended on 69 out of a possible 90occasions. Satisfactory explanations of absencewere received in all cases. Details of individualattendance can be found at the beginning ofthe Trustees’ Annual Report.

Creativity and the Arts, our arts developmentstrategy, sets out the key arts challenges in thenext few years, and forms the basis of the2013-2018 Corporate Plan. The developmentof the strategy was informed by a series of openmeetings – Sgwrs Gelfyddydol – withstakeholders and other interested parties.Members of Council were actively involved indriving forward this key piece of work.

As part of its governance responsibilities,Council received regular financial monitoringreports; updates on key areas of performance

including the Operational, Strategic Equalitiesand Welsh Language Plans; and monitoringreports on our portfolio of RFOs. Satisfactoryprogress was made on most areas, butregrettably we were unable to retain ourInvestors in People accreditation. We intend tore-apply in the next year.

Regular updates were provided on strategicallyimportant projects, including the high profile,and very successful, WOMEX13 and Venice2013 projects. There were also presentationsfrom our Portfolio Managers, from some of theNational Companies in the RFO portfolio, andfrom Coreo Cymru, the creative producer fordance in Wales.

Three RFOs experienced serious difficultiesduring the year. Council considered reports andrecommendations from officers and specialistadvisers in connection with these organisations.In certain cases, Council insisted on significantchanges in the organisations, as a condition of continued funding, in order to try andsafeguard their futures. These organisations willall continue to be the subject of detailedmonitoring until such time as we feel confidentthat they have stabilised and are operationallysustainable.

Following the introduction of our neworganisational structure in May 2012, wecommissioned surveys of our external customersand stakeholders, and of our staff to helpinform an initial review of the effectiveness ofthe new arrangements. During 2014/15 we willbe considering where further work is needed,and responding accordingly.

Council’s annual self-assessment reviewconcluded it was satisfied that the vast majorityof its indicators of effectiveness had once againbeen met, and that it was content with progressmade during the year, and with the overalleffectiveness of the organisation. Allied to this,and as part of its commitment to excellence andcontinual improvement, Council intends toprioritise, over the coming year, policy and its

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enactment by deepening its relationship withSMT and other key staff, and further improvingthe alignment of strategy and budget setting.

We provide funding to third parties:

A key activity of the organisation is thedistribution of funding to the arts sector inWales. We are a major distributor of funding –from the Welsh Government, the NationalLottery and other sources, including Europeanfunds – and take such responsibility veryseriously.

We have developed appropriate systems andprocedures to support this key activity. Ourgrant making and monitoring processes arereviewed annually by our internal auditors toensure they remain fit for purpose. The WalesAudit Office also examines our grant makingactivities each year. All recommendations madeby our both internal and external auditors aremonitored by our Audit Committee to ensurethey are implemented on a timely basis.

Decisions to award an organisation RevenueFunded Organisation (RFO) status are taken byCouncil based on the advice of, and supportedby, rigorous assessments carried out by officers.

Regular reports showing the risk assessment ofeach of our annually funded RFOs areproduced for Council. These are supported by areport setting out the key themes that emergedfrom the series of annual review meetings heldwith each RFO.

As indicated above, when necessary we take apro-active approach with organisations that runinto difficulties, and invest time and energy tohelp them resolve matters of concern.

We publish annual guidelines for each of ourLottery funded grant programmes. You can finddetails on our website.

We have open and transparent applicationprocesses for all of our grant funding

programmes, and rigorous assessment,decision making, and monitoring processes forall of the funding we award to artists and artsorganisations.

We take a risk-based approach to ourassessment of applications and monitoring ofgrants awarded. We use information collectedfrom grant recipients as part of our monitoringprocedures to ensure that the stated outcomesfor which we provided funding were, in the end,actually achieved.

Council takes fraud, corruption andmaladministration very seriously and haspolicies to prevent, and deal with, suchoccurrences, including Whistle-blowing andAnti-fraud polices.

A full list of grants offered during the financialyear can be found in the annex to this Reportand Financial Statements.

Our approach to risk management:

Council takes a considered view of risk in linewith its responsibilities both as a publicly-funded body and the nature of the sector itserves.

It recognises that any ambitious developmentalstrategy has to accept the potential of some riskof failure to achieve policies, aims andobjectives. Our aim is to promote a moreinnovative, less risk-averse culture in order thatwe can support artists, organisations andprojects to deliver our objectives.

We need to balance our duty to innovate withthe ever-increasing need to maximise thebenefits of our investment for the sector and forthe public. We need to take appropriate butconsidered risks on occasions, and toacknowledge that there might be occasionalfailures. However, we would not behaverecklessly, nor would we wilfully squanderpublic money nor endanger our reputation forprudence.

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We have a system of internal control which hasbeen designed to identify and prioritise the risksthat could prevent us achieving Council’spolicies, aims and objectives. It evaluates thelikelihood of the risks being realised, considersthe impact should they occur, and seeks tomanage them efficiently, effectively andeconomically. However, we recognise oursystem of internal control can only manage riskto a reasonable and appropriate level, and cantherefore only provide reasonable and not anabsolute assurance of effectiveness.

We are always looking to improve our internalcontrol systems, to ensure they help us achieveour funding and strategic goals. A key initiativewhich came to fruition during the year was thedevelopment and implementation of aCorporate Assurance Framework, overseen byour Audit Committee. The framework is used toidentify the robustness of the underlyingcontrols and assurance processes used toidentify and manage key strategic risks. Anyaspects that need strengthening are highlightedso that appropriate action can be taken.

Key risks facing the Arts Council:

Looking ahead, there are, however, a numberof key risks facing us in the next year or so.

The most significant strategic risk in theimmediate future is the impact of cuts to publicexpenditure and the potential impact this mayhave on the wider arts sector. Our own budgetsare under pressure. We have had to reduce thelevel of annual revenue funding to our RFOportfolio, as well as finding further savings inour own running costs. Local Authorities alsohave to take difficult decisions and there isgrowing evidence that the level of support theyhave previously provided to the arts sector willsuffer. This could have serious consequences forthe arts infrastructure across Wales. We areclosely monitoring the situation and, where weare able to, will address issues where we are akey funder, or where we can have directinfluence.

We have two large Lottery funded capitalprojects in progress. Both, for differing reasons,have experienced difficulties during the year,and are being closely monitored with the helpof independent specialists using our rigorousmonitoring procedures. Each of the othercapital projects we are involved in is also beingclosely monitored.

The sharp increase in our Lottery income inrecent years presented challenges in terms ofincreasing the level of commitments, with aresultant increase in the level of our balancesheld within the National Lottery DistributionFund. We have begun to address this, but weare now beginning to see a reduction in incomelevels. Although manageable currently, if thisproves to be a sustained downward trend wewill need to re-assess our strategic priorities forgrant awards for the next few years. We areclosely monitoring the situation.

Earlier in the year our Chair was invited to leada review into the state of arts education inWelsh schools. The Welsh Governmentaccepted the main recommendations in the Arts& Education in the Schools of Wales report inMarch 2014, and we look forward to playing asignificant role in its implementation. The scaleof the changes proposed is ambitious and it islikely that the scale and complexity of theprogramme needed will involve us in a numberof major developments. We welcome theopportunity, but also recognise the need tomanage carefully the many risks such aninitiative will bring.

Later this year the Welsh Government isexpected to introduce its Future Generations Billand its commitment to sustainability duty. Wehave preparatory work underway to ensure weare able to fully discharge our duties when theytake effect in April 2015.

Security of data:

We hold large amounts of data, and treat ourobligations under the Data Protection Actseriously. Our ICT systems and controls ensure

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that the security of data is tightly controlled. Weregularly assess our security arrangements andhave taken steps to make them more robust.We will continue to monitor them closely.

Neither the high level review over ICT controlscarried out by our external auditors, nor ourprogramme of internal audit reviews carried outduring the year, highlighted any matters ofconcern in this area. To the best of myknowledge and belief, no loss of data occurredduring the year.

Ministerial directions:

As a Welsh Government Sponsored Body weare subject to non-statutory instruments,containing appropriate directions. NoDirections were issued to us during the year, nor were we issued with any MinisterialDirections in respect of our Lottery activities.

Control issues identified during the year:

Our internal audit service is provided byDeloitte LLP under the guidance of a nominatedHead of Internal Audit, working to the PublicSector Internal Audit Standards.

Audit Committee agrees a programme ofreviews covering the period of appointment ofour internal auditors. Priorities for each year arereviewed annually, and contain audits of keybusiness activities, as well as examining keyareas of potential risk to the organisation. Thereviews are designed to provide assurance andto assist management by identifyingimprovements where they are considerednecessary.

Ten internal audit reviews were carried outduring the year. Of these one was the annualfollow up review of previous recommendationsand three were advisory reviews. The remainingsix reviews resulted in either substantial or fulllevels of assurance. All recommendationsraised by internal audit are reported to AuditCommittee which monitors them to ensureappropriate action is taken on a timely basis.

The internal auditors concluded that theiroverall assessment of the review of CorporateGovernance provided full assurance and inrespect of risk management, substantialassurance.

The internal auditors provided the followingopinion on the adequacy and effectiveness ofthe Council’s arrangements in their AnnualReport:

“Based on the work we have undertakenduring the year, we are able to concludethat Arts Council of Wales (the Arts Council)has a basically sound system of internalcontrol, which should provide substantialassurance regarding the achievement of theArts Council’s objectives.”

The findings of the National Audit Office andWales Audit Office’s annual audits are reportedin an Additional Assurance Report andManagement Letter addressed to Council. Acopy is provided to the Permanent Secretary ofthe Welsh Government. The Audit Committeeconsiders the findings and monitors them toensure appropriate action is taken on a timelybasis.

Overall assessment of governance and internal control:

In my opinion, the Arts Council of Wales’systems of governance and internal control aresufficient to enable me to discharge myresponsibilities as Accounting Officer.

Nicholas Capaldi, Accounting Officer11 July 2014

Endorsed on behalf of Council:

Professor Dai Smith, Chairman11 July 2014

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Structure, governance and management

Members’ induction and training

New Members undergo an inductionprogramme to brief them on their legalobligations under the Royal Charter and charitylaw, the Code of Best Practice, the Committeeand decision making processes, strategic plansand funding issues. During the induction daythey receive presentations from the Chairman,Chief Executive and Director of Finance andResources. Members also have the opportunityto meet key employees. As well as the RoyalCharter and Code of Best Practice, Membersare provided with copies of the most recentAnnual Report and Accounts, the currentWorking Budget, and the Charity Commission’spublications ‘The Essential Trustee’ and ‘TheIndependence of Charities from the State’.Seminars and additional training are arrangedas necessary to inform the formulation ofstrategies and policies.

Council Members reserve to themselves matterssuch as decisions of policy, the Corporate andOperational Plans, the setting of the annualbudget, the annual allocation of grants torevenue-funded organisations, and majoralterations to the terms and conditions ofservice for staff.

The Council is required to account separatelyfor its general and lottery distribution activities.Under separate Accounts Directions theaccounting treatment of general and lotterygrants differs significantly so, with due regard toparagraph 359 of the Charity Commission’sStatement of Recommended Practice (revised2005), in the judgment of the Trustees theproduction of a consolidated account isinappropriate as it would not provide a trueand fair view of the application of the Council’sresources.

Objectives, activities, achievements andperformance for the public benefit

The Council’s chartered objects are:

(a) to develop and improve the knowledge,understanding and practice of the arts;

(b) to increase the accessibility of the arts tothe public;

(c) to advise and co-operate with OurNational Assembly for Wales, Departmentsof Our Government, local authorities, TheArts Councils for England, Scotland andNorthern Ireland, and other bodies on anymatters concerned, whether directly orindirectly, with the foregoing objects; and

(d) to carry out the objects through themedium of both the Welsh and Englishlanguages.

The Council’s main purpose is to support anddevelop the arts in Wales for the benefit ofpeople throughout Wales. The principal way inwhich Council seeks to fulfil this purpose is bythe formulation of arts strategies, research, andproviding recurrent and one-off grants toorganisations and individuals within a strategicand developmental context. Such grant makingis backed up by a process of monitoring andassessment to ensure that public money is usedeffectively for the intended purposes. TheCouncil also manages a range of non-grantactivities and services, often in partnership withlocal authorities and others.

Main objectives for the year

The Council’s strategic priorities for 2013/14are set out in the table below according to ourCorporate Plan themes, alongside keyachievements made in relation to eachoperational target during the year:

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Supporting the best in the creation of great art -

What will success look like?We are passionate about the arts. We are ambitious for their success. At their best – and it’sthe best we’re interested in – the arts have the power to excite, inspire, move and challenge.We want to shape an environment for our artists and organisations in which they can createtheir best work. We want the people of Wales to be able to enjoy and take part in the best thatour nation has to offer. And we believe that the best experience of art only happens when thischord is struck, when art connects. That’s our definition of great art. Making art, sharing art,being a part of it, in the community, in performance, off the page, in a space, in lives – this iswhen art works, inspirationally, individually, collectively.

Of course, we can’t guarantee that every artist or arts organisation that we support will alwaysbe producing work at the top of their game. However, we can help to create an environment inwhich ambitious, exciting and compelling work becomes a more likely outcome.

1. Produce a newcorporate strategy for arts development(Creativity and the Arts)

2. Deliver successfulCymru yn Fenis/Wales in Veniceproject with featuredartist Bedwyr Williams

3. Contribute to theplanning,development anddelivery of asuccessful DylanThomas 100 Festival during 2014

• Consultation on draft proposals during Q1

• Publication of newStrategy during Q2

• First phase ofimplementation duringQ3-4

• Number of visitors by endof Q3 exceeds figure for2011

• Extent of media coverageexceeds previous years

• Specific identifiabledevelopmentopportunities for thevisual arts sector in Wales

• Attendance at SteeringGroup meetings

• Published programme of events by Q2

Council approved the latest draft forconsultation in December.

Consultation ran until 30 April 2014.

The Exhibition closed on 23 November2013 with final attendance figures ofapproximately 23,000. The Wales pavilionattracted almost 30,000 visitors in 2011.

A full evaluation report on the project wastaken to Council in February together withthe proposed strategic approach to Cymruyn Fenis/Wales in Venice in 2015. Thesewere approved by Council and a budgetallocated.

A prospectus has been prepared and theprogramme of activity has been launchedand is underway.

We will take the lead in co-ordinating PRopportunities for arts events throughout2014 and will continue to monitor thefunded projects and their staged contributionto the Festival throughout the year.

Action Target Achievements and performance


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4. Support thedevelopment of ourNational Advisers(NAs) and theirengagement withour work

5. Ensure nationwidemonitoring of thequality of ourrevenue-fundedorganisations(RFOs)

6. Deliver a full yearprogramme ofgrant awards toindividuals andorganisations

• Development of an online community forNational Advisersincluding six monthlyNewsletter

• Two workshop/briefingevents held during2013/14

• Two quality monitoringreports by NationalAdvisers for each RFO

• A minimum of two qualitymonitoring reports by Arts Council staff for each RFO

• Officer overview reportfor each RFO

• Increased participation in Quick Review initiative

• Administration of grantsmanagement processes

• Delivery of Creative Steps programme

• Delivery of CreativeWales awards andCreative Walesconversations

Discussion groups were held, informingthe drafting of the Strategy: Inspire: Ourstrategy for Creativity and the Arts.

During 2013/14 we have not been able toprogress Hwb (intranet) access for NAs.This consideration will be factored into asubsequent work programme as Hwbdevelops as a resource.

Work is underway in consideration of therecommendations contained in theAdvisory report by our internal auditors,presented at the end of 2013/14.

Appraisals have been commissioned fromNational Advisers.

At the end of the year we completed 152Quality Appraisals which equated to 53%of our annual quality monitoring target.Officer reports were significantly behindtarget. A radical overhaul of QualityAppraisal will be necessary to correct thisposition in 2014/15.

We commissioned an external evaluationof the effectiveness of the Guidelines andwill be considering a review of the wholegrant process and Guidelines to ensurethat they reflect Creativity in the Arts andpossible incorporate a reduction in thenumber of funding programmes.

We are still progressing work on the nextstage of Creative Steps and havecontinued to make awards with two majorprojects reaching a significant stage ofdevelopment in the last quarter.

Creative Conversations, rounded off withan award ceremony for the Creative WalesAwards took place in February. The eventwas well received by attendees.

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7. Deliver programmeof projects andservices that assistartists and artsorganisations toexploit theinternationalpotential of theirwork

8. Use our mediacontacts to promotethe arts in Wales

• Develop successorprogramme to Creating2013

• Year 3 of Wales ArtsInternational/BritishCouncil partnership andnegotiate next phase ofcollaboration

• Lead on WOMEX 2013

• Deliver digi-music tourismproject

• Participate in Europeannetworks and futureproject developments

• Engage with thedevelopment of CreativeEurope and other futurestrands of EuropeanFunding

• Use Wales European ArtsForum provide intelligenceand guidance for artsorganisations seekingEuropean funding

• Work on showcasing (e.g. Edinburgh, SxSW)

• Strategic work with WelshGovernment in prioritycountries

• Deliver funding throughthe InternationalOpportunities

• Level of coverage and airtime received for the artsincreases

We are continuing to deliver across a broadrange of international activity and PRopportunities are discussed continuouslywith the WAI team to ensure maximumexposure is achieved.

The next WAI 5 year strategy is beingdrafted in line with Creativity and the Arts.The new partnership agreement with BritishCouncil is still in progress and will beagreed in 2014/15.

We will be working with WelshGovernment’s Department for EconomyScience & Transport to establish the bestsolution for delivering the Creative EuropeFunding programme in Wales. We haveagreed to look at a secondment in2014/15.

85 artists have been supported to datethrough the International OpportunitiesFund.

WOMEX 13 took place in October and wasa resounding success as an event. Theheadline achievements were reported toCouncil in December. The targets for theevent have been met or exceeded. As theevent was entered into largely for itspotential to have legacy, the team is nowengaged in evaluation and the wrap up ofthe project which will extend into the newfinancial year.

The Communications Strategy has beenapproved by SMT. Media opportunities arecontinuously explored. Monthly meetingswith media contacts remain valuable.




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9. Deliver effectivepresence atexternal events,promoting andsupporting the artsin Wales

• Successful presence atNational Eisteddfod, UrddEisteddfod and Hay

The National Eisteddfod presence wasdeemed a success. More visitors attended Y Lle Celf than in previous years.

WOMEX 13 took place in October and was a resounding success. A full evaluationreport was presented to May 2014 Council.

Encouraging more people to enjoy and take part in the arts –

What will success look like?Levels of arts attendance and participation are currently high in Wales. But as averagehousehold income reduces, attendance and participation figures will come under pressure.However, it’s not just about defending and protecting what already exists. We want to see thearts activities that we support reaching out to a wider cross section of the population of Wales –to people who’ve previously experienced barriers to attending and taking part in the arts.

10. Work with theWelsh Governmentto support theimplementation ofthe findings of theArts and EducationReview

11. Address therecommendationson Participation inthe Arts fromNational AssemblyCommunities,Equalities andLocal GovernmentCommittee

• Action Plan agreed

• Findings of RFO mappingexercise published by Q2

• Design and produce finalreport for WelshGovernment

• Prepare strategicresponse to Committeereport by Q1, reportingon progress

• Publish information, andprovide training, onalternative sources offunding

• Develop a strategy toincrease levels of fundingfrom business

• Design an action researchprogramme forincreasing participatoryactivity in partnership witha Communities First Hub

Welsh Government’s response has beenreceived. The Government has accepted all of the report’s recommendations andidentified funds for their implementation.Arts Council is working with WelshGovernment on plans for implementation.

Action Plan agreed. Ideas People Places is apilot programme that will include looking atnew models for community focused work.

Work is progressing around new businessmodels for the arts sector broadly, but wedo not anticipate test driving new modelsthis year.

We are working closely with ArtsWorksCymru and supported a very successful ‘allWales’ dissemination and networking event.Paul Hamblyn Foundation has agreedfurther funding and we are now indiscussion about developing ourpartnership.

The proposed action research programmedid not go ahead.

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12. Implement ourstrategies for YoungCreators and ChildPoverty

13. Implement ourStrategic EqualityPlan

14. Promote our WelshLanguage Schemethrough theimplementation ofthe 15 key targetsin our WelshLanguage ActionPlan for 2013/14

15. Work with ourportfolio ofpresentingorganisations(venues andgalleries) toincrease anddiversify theiraudiences

• Pilot new business modelsfor promoting communityarts

• Implement Action Plans

• Report progress onquarterly basis

• Publish Action Plan for2013/14 by Q1


• Equality ImpactAssessmentscompleted/updated asappropriate



• Minimum of 4 actionresearch projects during2013/14

• Development by Q4 of aticketing scheme fordisabled people in all ourRFO presenting venues

• Trial of new framework,during 2013/14, forevaluating impact on

Following discussions with Communities Firstthe agreed focus for the work in this year isarts and young people.

Family Arts campaign has progressed in linewith the programme. The next phase of theFestival work has commenced.

We achieved 4 of the 6 key areas of ourStrategic Equality Plan 2013/14.

Whilst we made some progress against theobjectives under Internal Training andPartnerships we did not fully achieve allactions in these areas. Work on these willcontinue into 2014/15.

Diverse Cymru are close to completing theirwork on developing the Equalitiesguidelines/toolkit and we have agreed aprogramme of training and development forArts Council staff.

The 2013/14 Action Plan was published inApril 2013 and arrangements in placethroughout the year for its quarterlymonitoring and reporting of progress to theWelsh Language Monitoring Group andCouncil.

We achieved our actions against all 3strategic areas of the plan.

The Welsh Language Commissioner hasapproved our Welsh Language Annual Report 2012/13.

We approved a second stage proposal fromthe Red House for the Merthyr based projectin Q3 and, in Q4, a second stage proposalfor Llantarnam Grange.

We appointed Creu Cymru to undertake thesecond stage of the Disability Ticketingscheme and work commenced in Q4.

The Wellbeing research with venues wasconcluded and a draft report shared withACW. A final report is expected in May 2014.



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16. Support methodsof engaging 'hardto reach' youngpeople through thedelivery of theSplash Arts andReach the Heightsprogrammes

17. Expand theDeveloping Talentprogramme ofactivity

18. Promoting highquality touringactivity in localcommunitiesacross Wales,especially throughthe work of the ArtsCouncil's NightOut service

wellbeing of attending the arts

• Increase in levels ofengagement andparticipation across ourRFO portfolio

• Development of newsuccessor funding scheme

• 500 young peoplesupported

• 20 projects supportedacross Wales

• Develop child povertyproject in partnership withanother cultural body

• Number of young peopleprogressing on to furthereducation, training andemployment

• Identifying opportunitiesfor further Europeanfunding

• Criw Celf visual artsinitiative rolled out by Q2across local authorities inSouth East and SouthCentral regions

• National Youth Arts Wales’targets achieved by Q4

• Through our Night Outservice deliver 550 events,of which 150 will be inCommunities First areasand 12 will be YoungPromoters events

• Develop initiatives toincrease the availability

Figures for the first 6 months of the yearshow RFO’s delivered a total of 9,090 artsevents during the six month period whichgenerated attendances of 1.82 million.38,429 participatory art sessions weredelivered, with 554,612 attendances modeto these workshops. Figures for the final 6months will be collected in May 2014 andan annual summary published in July.

Significant progress was made during Q3with a successful application toCommunities First for partnership fundingfor an interim pilot project.

We received 27 project proposals andoffered funding to 14, all of which were upand running before the end of Q4.

We have not progressed work arounddeveloping a partnership project withanother cultural body.

We are in discussion with potential partnersregarding a European bid to build on thework developed through Momentum.

Criw Celf has been successfully rolled out in South east and South Central.

An evaluation will be commissioned in thenew financial year.

During 2013/14 we delivered a total of 532Night Out events, 114 (21.4%) of whichwere in Community First areas and 141(26.5%) were delivered through the mediumof Welsh.

There have been 28 Young Promoter events,6 of which were delivered in partnershipwith Gwent Police.



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19. Work with specialist agencies(Voluntary ArtsWales, DisabilityArts Cymru, DiverseCymru, StonewallCymru) to providesupport that helpsus to deliver ourstrategic objectives

of “family friendly” activity

• Service level or fundingagreements in place byQ1

Total demand for the scheme is downslightly mostly due to a drop of workingwith community first teams due to its re-organisation.

Web site ongoing development but delaysdue to programming issues – launchAutumn 2014.

9 tours achieved of which 6 were familyshows.

We are working with Diverse Cymru on twomajor projects and we have commissionedVoluntary Arts Wales to undertake aprogramme of work in 2014/15.

Growing the Arts Economy –

What will success look like?We want to see a financially resilient arts sector that is not wholly dependent on public subsidy.With the value of public subsidy for the arts decreasing in real terms, such dependency can onlyprove an impediment to innovation, development and sustainability.

The Arts Council will use all its powers of advocacy to encourage the widest possible range ofpublic and private sector agencies to invest in the arts. However, we believe that success willlargely depend on the extent to which artists and arts organisations are able to build their ownbusiness capability and exploit the full value of their artistic worth.

As we encourage growth, we must also encourage sustainability. Ways of working that squanderresources rather than enhance and protect them run counter to the spirit of the time. We need toaddress the demands of the present without compromising future generations’ economic, socialand cultural well-being.

20. Agree a new threeyear strategy forthe Arts Councilinvestment in thearts

• Review of RFO portfolio

• New funding allocationsto RFO

• appropriate strategicfunding streams andbudgets in place

A two year strategy was agreed by Councilin December 2013. The shorter timeframereflects the funding timetable of WelshGovernment and the date of the nextAssembly elections in Wales.


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21. Encourage ourportfolio of RFOsto become moreresilient andsustainable(culturally,organisationallyand financially),and provideinformation on theportfolio'sperformance

22. Develop Ideas,People, Places, achallenge fundinvesting in arts-led regenerationprojects thatpromote art in thepublic realm

• Number ofperformances/exhibitions/events and audience/participant numbers

• Geographical distributionof activity

• Publish 2011/12 RFOAnnual Review Meetingreports by Q2

• Hold 2013/14 AnnualReview Meetings duringQ4

• Publish an annual RFOperformance report during Q2

• Provide programme ofRFO Developmentinitiatives

• Policy document published during Q1

• Small scale challenge fund established forindividual artists wantingto work in the publicrealm during Q1

• Minimum of 4 public artresidencies underwayduring 2013/14

• 4 projects commissionedand underway by Q4

We are continuing to deliver against all ourtargets in relation to the RFO survey andpublish our key findings.

Last year’s ARM was completed althoughwe note that some meetings were notundertaken. Changes have been made tothe 2014/15 procedure to help ensure thatthis does not recur.

ARM meetings for 2013-14 took placethroughout February and March and thedeadline for reports was April 4th.

The Annual RFO Performance report hasbeen delayed due to the very fluid situationregarding local authority funding. However,data has been released to our clientportfolio regarding audience andparticipation figures and financialperformance.

Memorandum of Understanding complete.

We have tendered and procured a shortterm contract to compile the web resources.

29 applications were received forconsideration for the research anddevelopment phase. A sub-group of theCapital committee has been set up to assessthe applications. 12 projects were selectedto progress to the second stage ofassessment. The deadline for this secondphase is July 2014.

We have appointed a Programme Managerto coordinate the programme including theassessment process. The PM has alsoattended inception meetings with thesuccessful projects and will offer specialistadvice and support to them in the interim.


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23. Deliver our Lotterycapital priorities

24. Initiate aprogramme ofactivity thatencourages thedevelopment ofdigital capacity inthe arts

25. Re-launch theCollectorplanscheme

• Monitor the progress ofour two major capitalprojects - Pontio (Bangor)and Glynn Vivian(Swansea)

• Monthly reports (which are shared with WelshGovernment)

• All appropriate legalagreements are in placeand followed

• Advocacy/best practiceshowcase events

• Digital R&D Fundestablished in associationwith Nesta, with firstcohort of projectssupported by Q1

• Digital ProducersDevelopment fundestablished

• An Action Plan ispublished

• New website developed

• Media campaignsupporting relaunchduring 30th anniversaryyear

4 specialists (including architects andpractitioners) in this area of work have beenapproached to join the list of NationalAdvisers to assist the decision making groupselect the best projects. This is still ongoingin order to find suitably qualified assessorsand monitors but the sub-group fromCapital Committee was the decision makinggroup for the first stage and will makerecommendations to Council for thesecond.

A Deed of Covenant with Bangor Universityhas been finalised and signed by all parties.

Regular steering group meetings have beenattended by officers. Officers are alsoinvited to attend specific project steeringgroups, such as Myrddin and MissionGallery.

12 digital producers have completed thecourse.

Second round of the digital R&D fundclosed in January. Two further projects weresupported in addition to the four supportedthrough the initial round.

We are awaiting the new financial creditregulations. New website is currently underdevelopment.

A successful press campaign was deliveredaround the Collectorplan 30th birthday inDecember.


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26. Deliver WOMEX2013 as a worldclass event torealise its potentialas a catalyst for the music sector in Wales

27. Deliver successfulArts Councilcorporate events(AnnualConference,MarketingSymposium andSgwrs Gelfyddydol)

• Increase in second half ofyear in value and numberof loans

• Number of trade fairexhibitors

• Number of delegates

• Number of attendees atevening concerts andevents

• Delivery of digi-tourismmusic project

• Delivery of legacyprogramme that hascatalytic effect ondevelopment of sector inWales

• Delivery of Horizonsprogramme

• Value to local economy

• Delivery of the projectwithin the agreed budget

• Attendance numbers

• Delegate satisfaction

Increases in usage have been recordedduring the campaign which targetedChristmas sales.

An action plan is now in place to takeforward the recommendations from theBond Report. A 5% increase in sales is inour targets for 2014.

WOMEX 13 took place in October and wasa resounding success as an event. Theheadline achievements were reported toCouncil in December.

The targets for the event have been met orexceeded.

As the event was entered into largely for itspotential to have legacy, the team is nowengaged in evaluation and the wrap up ofthe project which will extend into the newfinancial year.

The Spring Sgwrs Gelf series wassuccessfully delivered.

Creative Futures, our annual conferencewas deemed a success with 183 attendeesnoting this was one of the best to date. 83%of respondents to the subsequent surveyrated the event as good to excellent.

An evaluation will take place on all ourevents and a strategy will be produced witha clear focus on all future events.


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28. Develop theentrepreneurialleadership skillsthat help artistsand artsorganisations todevelop forward-looking,sustainable andresilient businesspractice

29. Embed our newthree stranded(national, regionaland individual)partnership withlocal governmentacross Wales

• Development, with Artsand Business Cymru, ofthe MENTORA project

• Piloting of Mission, Models Money projects

• Short course initiatives

• 3 modules of the ArtsCouncil’s RFODevelopment Programmedelivered in 2013/14(Governance, BusinessPlanning and Access)

• Membership of the ChiefCulture and LeisureOfficers of Wales(CCLOW) group

• Production of national artsand cultural policy basedon RBA scorecardapproach

• ‘Pairing’ of Arts CouncilDirector with LA region

• Lead officer designated for every local authority in Wales

• Programme of AD:UKregional arts developmentofficer meetings

• Agreement to a set ofPerformance Indicators for the local authority artsand cultural sector

• Integrated national datacollection mechanismestablished on Ffynnon

• Delivery of a SgwrsGelfyddydol twice a yearin each of the 4 localauthority regions

The financial situation of Arts and Businesshas been clarified now for 2014/15 and wewill be working with them to progress theirnew business plan.

Mission Models Money programme is upand running although take-up has not beenas high as we would have liked. An actionlearning set has emerged from the projectsworked and is meeting regularly.

We have signed up to the Wales CloreFellowship for 2014/15.

All the Authorities have signed up tocollecting data this year according to thestandard negotiated KPI’s.

This has been agreed by our researchofficers, CCLOW, WLGA, WelshGovernment Data Unit and AD:UK.

Directors have held regional internalmeetings. This has been particularlyimportant in relation to the current LocalAuthorities’ budgetary situation.

We have had officers at the AD:UKmeetings.

We organised 4 regional Sgwrs events inJanuary/February including sessions oncrowd funding, philanthropy and culturaltourism.



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30. Develop PublicValue Partnershipswith BBC CymruWales and S4C

31. Nurturepartnerships thatsupport the deliveryof our arts priorities,developing newopportunities forartists tocommission,develop andpresent work

32. Maximise benefits to the arts fromEuropeanProgramme 2014-2020 includingstructural funds

33. Developing theprofessionalcapability, skill andwell-being of ourstaff

• Partnership documentsagreed and published

• Delivery of partnershipprojects (eg: TVscriptwriting in Welsh,WOMEX)

• Memoranda of agreement (whereappropriate)

• Site Specific initiative with national companies

• Agreement with WelshGovernment on areas ofpossible co-investment2014-2020 throughStructural Funds andCreative Europe eg digital skills

• HR policies updated andpublished in respectiveHandbooks by Q1

Public Value Partnership with BBCWales/Cymru has been signed andlaunched.

Memorandum of Understanding (MoU) withS4C has been agreed and will be launchedofficially at the media launch for‘Hinterland/ Y Gwyll’

We have been meeting regularly with BBCand S4C and have started to develop acreative partnership with them.

MoUs with Cadw, CAT, Canal and RiverTrust have been signed.

MoU with the National Trust has beenagreed.

Work is progressing to plan with thenational companies. Research phase nearto completion.

Continued input to the WEFO Delivery &Compliance Work Stream. Attended launchof new 2014 – 2020 programme byFinance Minister in November.

Policies review largely completed, a smallnumber of which are awaiting Union signoff.

Making the Arts Council as an effective and efficient public organisation –

What will success look like?During 2012/13 we implemented the outcomes of our Organisational Review. A new staffingstructure is in place. Now our challenge is to create to create a strong, confident organisationproviding services that are relevant and useful.

We’ll be providing professional services across a range of disciplines. And we’ll be doing so inways which reduces cost and recognises our responsibility to become a more environmentallysustainable organisation.


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34. Implement our ICTStrategy

• Team and Individual WorkPlans completed for Q1

• New Learning andDevelopment policy andplan by Q1

• Implementation of newPerformanceManagement/360 degreeappraisal process byQ3/4

• Introduction of EmployeeAssistance programme

• ICT policies finalised

• Implementation ofWindows 7/Office 2010upgrade by Q1

• Implementation of NightOut website by Q1

• Introduce expense@work

• New Contacts database in place

• Next phases ofdevelopment of RFOsurvey completed

• Next phases ofdevelopment of Hwbcompleted

• Incorporation of socialmedia capacity intoenhanced website

Workplans have been agreed and 1:1sessions are on-going.

We have embarked on a Learning andDevelopment programme.

New Performance Management system re-scheduled by SMT for 2014/15implementation.

Finalisation of policies delayed pendingcompletion of revised HR policies.

Windows 7/Office 2010 upgradescompleted.

Core development of the Night Out webapplication is completed and the project has entered first phase user acceptancetesting (UAT). A complete list of issues andbugs has been outlined and work schedule to complete has been published. Completionto live testing due September 2014.

Expense@work implemented.

Head of Communications leading on theContacts Database project with ICTsupporting. Work on this is progressing andwill continue into 2014/15.

RFO survey database changes to includeprotected characteristics have beencompleted and all associated tools andtemplates are ready for use.

All intranet team pages are live with theexception of two that are currently underdevelopment. Developments to improve user adoption continue to be discussed atICT User Group to inform SMT discussionand decision.

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35. Develop a suite ofCorporatepublications andvideo, promotingthe Arts Councilbrand and thework that we do

36. Manage our officeestate efficiently,safely and at bestvalue

37. Develop ourInformation Service

• Suite of publications andvideo produced

• Supporting mediacampaign

• Complete rationalisationof Cardiff office

• Agree new approach toCarmarthen

• Undertake EmergencyPlanning rehearsal

• Enhanced print and online information

• More extensiveprogramme of fundingsurgeries

Local Authority pages framework on Hwbare almost complete.

Social Media on website now implemented.

Microsoft Lync roll-out is complete andintegration and testing with the videoconferencing estate is in place to enable alllaptop workers to fully utilise VC both pointto point and multipoint. A pilot is alsotaking place to investigate integrating Lyncwith the existing telephone system.

The film promoting Creativity and the Artshas been completed and will run inconjunction with the consultation. Humaninterest stories are being collatedcontinuously and used when appropriate.

Further training for the CommunicationsTeam in the production of video has beenidentified and this will be progressed via theCorporate Learning and Development Plan.

Alternative options for use of 1st floorCardiff being explored and have openeddiscussions regarding our current lease withour landlord.

New premises in Carmarthen secured; andthe Carmarthen Office relocated in May2014.

Rehearsals undertaken successfully forreinstalling network and software systems inthe event of an emergency.

The programme of Funding Advice Sessionshas been re-organised and a particularfocus placed on areas of traditionally lowtake up.

Some changes have been implemented asa result of the individual artist workinggroup. We will consider the findings of theStakeholder survey.


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38. Implement costcutting measures tohelp us to achieveour OrganisationalReview financialtargets

39. Retain IiPaccreditation

40. Assessindependently theeffectiveness of ourorganisation

41. Achieve publishedtargets forprocessing: a) of grants

applications;b) financial

payments

42. Review and simplifyour grant makingprocesses

• Reduction in grant in aidrunning costs

• Action plan prepared Q1

• Quarterly monitoring

• IiP accreditation confirmed Q4

• Internal staff satisfactionsurvey Q2

• External customersatisfaction survey Q2

• Grants managementtargets

• Targets for payments tosuppliers

• Grant Processing Groupestablished Q1

• Complete review ofcurrent processes Q2

• Review and simplify allGuidelines Q2

Regular reports provided to SMT andCouncil.

Financial targets have been achieved.

This year has seen the three yearly review ofour Investors in People (IiP) accreditation.Organisational Development Group set upto monitor progress against our IiP actionplan throughout the year.

The assessor’s overall conclusion was thatwhilst good progress was evident in someareas, more work, and time was needed todemonstrate impact. We will focus on thisaspect in 2014/15.

Stakeholder, Client and Staff Surveycompleted and received. The final reporthas been reviewed by the Steering Group,and will be shared with the relevantaudiences.

All grant applications processed withintimescales.

As at the end of 2013/14 we paid 95% ofsuppliers within the terms of our agreedpayment policies, and 85% within 10 days.Last year we achieved 94% and 72%respectively. Performance is reported infinancial reports to Council (quarterly) andSMT (monthly).

We commissioned an external evaluation ofthe effectiveness of the Guidelines and willbe considering a review of the whole grantprocess and Guidelines to ensure that theyreflect Creativity in the Arts and possibleincorporate a reduction in the number offunding programmes.



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43. Manage ourfinancial resourcesto the higheststandards ofaccountability

44. Develop aconstructiverelationship withWelsh Governmentthrough: a) Delivery and

reporting on requirements ofthe Remit Letter 2013/14;

b) Biannual meetings with the Minister;

c) Culture Forum; d) Quarterly

Monitoring Meetings with officials

45. Annual Report for2012/13 published

• Annual statutory accounts;interim and final audits

• Whole of GovernmentAccounts

• Budget setting

• Monthly managementaccounts

• Statutory returns

• Papers produced andcirculated withintimescales for meetings

• Reports produced asappropriate

• Report produced andpublished includinginformation about:a. Operational Plan b. Welsh Language

Action Planc. Strategic Equality Pland. Equalitiese. Equality Impact

Assessmentsf. Environmental

responsibilities

All deadlines to date in respect of both setsof Statutory Accounts and WGA, achieved.

Management accounts submitted to SMTand financial reports to Council

Arrangements are in place to ensuremeeting papers are produced andcirculated within designated timescales.

Reports are circulated, as required, to theMinister and as part of our QuarterlyMonitoring meetings.

All Assembly questions (AQs) areresponded to within timescales. During2013/14 we had received and respondedto 231 AQs.

The annual report has been designed andpublished on our website.


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46. Support thecorporatemanagement ofthe Arts Council’sbusiness through:

a) The managementand organisationof Council and itsCommittees;

b) The managementand organisationof the SeniorManagementTeam;

c) The managementand organisationof ManagementBoard

47. Ensure the diversityof the Arts Councilof Wales Councilmembers and itsstaff

48. Deal effectivelywith WelshGovernmentenquiries,complaints andFreedom ofInformation (FoI)requests

• Timely preparation ofagendas, papers andminutes of meetings

• Organisation of:a. 6 Council meetingsb. weekly senior

management meetings

• Quarterly ManagementBoard meetings

• 50% of Council membersand staff are Welshlanguage speakers

• Diversity representedwithin Council

• 100% of WelshGovernment enquiries,Complaints and FoIrequests dealt with in thespecified timescales

Meetings scheduled in diaries for thecurrent year.

Arrangements are in place to ensuremeeting papers are produced andcirculated within designated timescales

Currently we have 60.4% of staff and 53%of Council Members who are Welshspeakers.

The diversity of the Council membersimproved following recruitment of newmembers during 2012/13. Findingsdetailed in Annual Equality Report 2012/13presented to Council during the yearsuggest further work is required withregards to increasing diversity amongst staffand this will form part of our StrategicEquality Action Plan for 2014/15.

However, any action in respect of this wouldneed to be managed in accordance withrecruitment opportunities as they arise.

Procedures are in place to ensure allcomplaints and FoI requests are respondedto within designated timescales. During theyear we received one formal complaintrelating to a tendering exercise which waspartially upheld. We also received 25 FoIrequests, all of which were responded towithin the statutory deadlines.

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49. Meet ourenvironmentalresponsibilities inaccordance withthe WelshGovernment'sSustainable Duty

50. Implement newpayroll systems

• Produce environmentalstatement Q4

• Real Time Informationprovided on monthly basisto HMRC Q1

• Pensions auto-enrolment

We have achieved level 5 rating in therecent Green Dragon Environmental auditscheme. This was achieved ahead of theplanned schedule of 2015.

New quarterly reporting format has beenagreed in Environmental Communicationsplan – annual report by April 2014 withquarterly updates to begin in 2014/15financial year.

A Task and Finish Group has been set upand meetings are underway.

RTI completed.

Auto-enrolment to be introduced in2014/15 in line with our staging date.

Detailed monitoring of performance againstthese performance indicators is carried out andreported on quarterly to the Senior ManagementTeam, Council and the Welsh Government.

Grant making policies

The Council invites applications for recurrentand one-off grants from organisations andindividuals and monitors the proper andeffective use of those grants. As well as meetingthe Council’s strategic aims, applications mustdemonstrate benefit to the people of Walesacross all regional, cultural and economicsectors. Recurrent grants are funded from grant-in-aid only but one-off grants may be fundedfrom grant-in-aid or lottery income.

Recurrent, or annual revenue, grants are madeto a portfolio of organisations to deliver highquality artistic services. Consideration of revenuestatus for any organisation is dependent on theavailability of funding, the sustainability of theorganisation, and demonstration of strong fit

with the Council’s strategic priorities. Currently,each revenue-funded organisation enters into afunding agreement for a term of one to threeyears which sets out the anticipated level offunding, the programme of activity to bedelivered, requirements for monitoring andannual review, standard conditions of grant, andany additional conditions. They are at the heartof the Council’s future strategy to develop thearts in Wales.

One-off grants are available to help fund time-limited artistic projects of high quality which bestmeet the Council’s funding priorities.

On-going monitoring of our grant aidprogrammes alerts us to any specific risk issues.Identified risks lead to an escalation of the levelof monitoring and, if necessary, can result in thepayment of funding being with-held and/ordeferred.

The Council publishes general guides to fundingfor organisations and individuals which include


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full details of funding priorities and eligibilitycriteria. These are available from any of theCouncil’s offices and from the website:www.artscouncilofwales.org.uk.

Financial review

The Council has two principal funding sources:grant-in-aid from the Welsh Government; and,as one of the bodies responsible for thedistribution of funds for good causes, a share ofthe proceeds raised by the National Lottery. TheCouncil is required to account separately for itslottery distribution activities.

Reserves

The Council’s policy on restricted funds is toseparately record grants, donations and othersources of income which are received for aspecific purpose or project, or where restrictionsare imposed that are narrower than theCouncil’s overall objectives. All of theseincoming resources have been utilised in theyear for their intended purpose.

Most of the Council’s unrestricted funds arecommitted during the year, in accordance withthe conditions of grant-in-aid issued by theWelsh Government. Any surplus funds arecarried forward and used in furtherance of theCouncil’s chartered objectives in the followingyear. There were no designated funds at 31March 2014 (2013: £Nil).

Our holding of cash reserves is restricted by theWelsh Government’s month-end and year-endflexibility directions. Within those parameters,our policy is to manage cash flow by drawingdown funds each month to meet plannedexpenditure with a modest allowance forunforeseen short-term cash requirements. Wereview this policy and our reserves positionannually.

Investment

Investment powers are governed by the TrusteeAct 2000 and the Framework Document issuedby Welsh Ministers. The Council’s policy is toachieve the maximum return within these terms.Interest at a negotiated rate linked to bank baserate is received on all credit balances in theCouncil’s current accounts. From time to time,higher rates may be available for restrictedfunds on long term deposit.

Since October 2013, to minimise risk to ourcharitable and public funds whilst retaining thecontrol and flexibility needed for day-to-dayoperations, the Council opened accounts withCCLA Investment Management Limited whichallows us to make daily transfers of surplusfunds between their Public Sector Deposit Fundand our bank current accounts. The Fund isAAAmmf rated by Fitch Ratings.

All interest and other investment income earnedon cash and bank balances which arise as aresult of funding from the Welsh Government issurrendered to HM Treasury via the WelshConsolidated Fund.

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Financial results

The General Activities accounts, excluding Lottery distribution activities, show:

Total incoming resources for the yearNet incoming/(outgoing) resourcesNet current assetsTotal fund balances at 31 MarchandForward commitments of grants in respect of the following year

The separate Lottery Distribution accounts show:

The Council’s share of the proceeds from the National Lottery

On the basis outlined below1 the combined:Total incoming resources for both general and Lottery activities wasandTotal direct charitable arts expenditure1 for both general and Lottery activities was

2013/14£’000

35,799(1,295)1,6841,940

27,733

16,892

52,843

56,784

2012/13£’000

37,114332

2,9253,235

28,129

19,355

56,599

50,055

1 General grants are charged to the Statement of Financial Activities as soon as they are offered, except forforward commitments as described in Accounting policy note 1f. Lottery grants are charged only when theformal offer has been accepted by the recipient. Although not all charged as expenditure in the LotteryStatement of Comprehensive Net Expenditure, during 2013/14 the Council approved Lottery grantsamounting to £18,078,000 (2012/13: £11,958,000). The combined total direct charitable arts expenditurehas been stated on this basis.

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Plans for future periods

Our priorities for 2014/15 are set out in the following table:

Creating the environment for the arts to flourish

What are we trying to achieve?We want to see our best artists and organisations able to create their best work and to sustainthemselves through the quality of their activities. Priorities will be our investment in our revenuefunded (RFO) portfolio, support for the individual artist and festivals and major events thatsignificantly raise the profile of the arts.

Goals for 2018

• Arts Council revenue funding for RFOportfolio has decreased as a % of totalincome by 10 percentage points

• 75% of the RFO portfolio is designated as‘low risk’

• 25% increase in average annual earnings of individual artists

• completion of Council’s five year Capitalstrategy

Targets for 2014/15

• Delivery of 5 modules in RFO DevelopmentProgramme (Pension auto-enrolment; Access;Governance; Finance; Apprenticeships andInternships)

• Introduction of Sustainability and Resiliencescheme

• Action plan for implementation Support for Individual Artists report

• Completion of Pontio capital project

• At least 4 Artist Residencies established

• Delivery of Dylan Thomas 100 Festival

• Terms of Reference for next Investment Review agreed

Increasing the value of international cultural exchange to the arts in Wales

What are we trying to achieve?We want to enable leading artists and arts organisations in Wales to realise their internationalambitions by expanding horizons, encouraging potential and connecting with inspiring partnersand markets. In an increasingly globalised world we want the arts in Wales to be able to operateeffectively in the global market place.

Goals for 2018

• International Opportunities Fund (IOF)leverages a 3:1 return on investment

Targets for 2014/15

• Delivery of International Opportunities Fund

• New partnership agreement with BritishCouncil

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Goals for 2018

• 10 artists from Wales showcased in at least 5 international events under the “Wales in…”brand

• 2 major international arts events secured andhosted in Wales

• Participation in at least 2 European fundedtransnational projects

• Increased audience numbers for Cymru ynFenis/Wales in Venice 2015 and 2017

• Artists featuring in/leading on 2 WelshGovernment international delegations a year

Targets for 2014/15

• Engagement agreed with Wales’ CreativeEurope Desk

• Publication of WOMEX 2013 evaluation

• Strategy agreed for Patagonia 2015

• Wales artists represented at 1 majorshowcase/network event

• At least 1 project delivered in partnership with Welsh Government

Finding new opportunities, ways and places for people to enjoy and take part in the arts

What are we trying to achieve?We want to encourage as many people as possible in Wales to enjoy and take part in the arts. It’s not just about defending and protecting what already exists. We want to see the arts activitiesthat we support reaching out to a wider cross section of the population of Wales – in new ways andin new places – to people who’ve previously experienced barriers to attending and taking part inthe arts.

Goals for 2018

• A 5 percentage point increase in attendanceand participation amongst C2, D and Esocial group categories

• A 5% increase in funding to the 10 localauthorities currently receiving the lowest levelof per capita Lottery funding

• 10% increase in audiences for Arts Councilfunded National Touring projects

Targets for 2014/15

• Delivery of at least 3 Creative Steps, 3 OurSpace and 3 Ideas: People: Places exemplarprojects

• At least 2 Welsh commissions for The Space

• Implementation of Disability TicketingScheme

• Delivery of 2nd year of Family ArtsProgramme

• 580 Night Out events, of which at least 130are in Communities First areas

• Partnership projects established with DiverseCymru and Voluntary Arts Wales

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Developing the creativity of children and young people

What are we trying to achieve?We want to see more children and young people across Wales actively involved in high qualitycreative activity. Whatever the circumstances that they face, we want all young people to have theopportunity to develop their talents (including to an advanced level of attainment).

A key priority will be working with the Welsh Government on the implementation of the Arts &Education Review.

Goals for 2018

• 5% increase in the number of children andyoung people in our most deprivedcommunities who are attending orparticipating in the arts

• Publication of evidence demonstratinginvolvement in creative activity and a rise inlevels of educational attainment

Targets for 2014/15

• Establishment of Momentum programme

• Agreement with Welsh Government on actionplan for implementation of Arts & EducationReview

Encouraging innovation, resilience and sustainability

What are we trying to achieve?We want to deliver a strategy for the Arts Council, and the arts in Wales, that encourages innovationand entrepreneurship and that enables the work of our artists and arts organisations to becomemore resilient and sustainable.

Financially resilient will be key for the future. However, our definition of sustainability is wide rangingand extends to environmental, social and economic well-being.

Goals for 2018

• Becoming a signatory to the SustainableDevelopment Charter


• RFO portfolio has achieved a 10 percentagepoint reduction in the level of its carbonemissions

• Media partnerships with BBC and S4C havebeen renewed

Targets for 2014/15

• Completion of mapping audit ofSustainability projects in Wales

• Processes for measuring and monitoringenvironmental targets agreed with the RFOportfolio

• Implementation of BREEAM ‘excellent’standards for all new capital projects andBREEAM ‘very good’ for refurbishments

• Action plans agreed for BBC and S4Cpartnerships, with at least 4 projectssupported

• Evaluation of Nesta Research & Developmentfund

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Protecting and growing the economic base for the arts in Wales

What are we trying to achieve?The arts in Wales are sustained by a range of different organisations contributing money, resourcesand expertise. However, funding (especially in the public sector) is being squeezed, with our localauthorities in particular facing increasing difficulties in maintaining current levels of funding. Ourpriority during 2014/15 will be an advocacy campaign designed to protect local authorityinvestment in the arts.

Goals for 2018

• Local authority income is maintained at alevel comparable to 2013/14

• Value of Collectorplan loans increases by15%

• Value of private sector income to the Arts inWales increases by 20%

• Achieve 3:1 return on Arts Council investment

• Secure level of European funding equivalentto 3% of Government grant-in-aid

Targets for 2014/15

• Commission audit of local authorityinvestment in the arts

• Develop advocacy campaign for localauthorities

• Value of Collectorplan loans increases by 5%

Demonstrating the value of the arts

What are we trying to achieve?We want to promote a positive and engaging view of the arts in Wales, making sure that the artssector and the wider public in Wales understands what we, the Arts Council, are trying to achieve.

Goals for 2018

• 5% increase in media coverage of the Arts in Wales

• 10% increase in public recognition of the Arts Council

• 25% increase in the number of ‘hits’ on our website

• 5% increase in attendances at our AnnualConference

• 15% increase in attendances at our Sgwrsevents

Targets for 2014/15

• At least 5 major press/media campaigns

• Publication of Advocacy toolkit


• Develop new Arts Council media and webplatforms

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Making the Arts Council and effective and efficient public body

What are we trying to achieve?As a public body we have a responsibility to create a strong, confident organisation providingservices that are relevant and useful. We provide professional services across a range of disciplines.As well as aiming for quality in the delivery of these services, we’re committed to doing so in wayswhich reduce cost and recognise our responsibility to become a more environmentally sustainableorganisation.

Goals for 2018

• Grant in aid running costs increase by nomore than 5% of 2013/14 levels

• Transaction processing (grant payments andpayments to service providers) consistentlymeet targets

• Maintain Investors in People rating

• Levels of staff absence in top quartile of peergroup WGSBs

• Achieve 14001 standard for EnvironmentalManagement of Events

• 90% of internal audit assurance reportsachieving a rating of at least “substantialassurance”

• 100% of Complaints and Freedom ofInformation requests handled within timelimits

• 70% satisfaction rating by Stakeholders andClients

Targets for 2014/15

• £50,000 reduction in grant in aid runningcosts



• Review of the management of our brand

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Human resources

Equal opportunities

The Council is committed to a policy of equalityof opportunity in its employment practices. Inparticular, the Council aims to ensure that nopotential or actual employee receives more orless favourable treatment on the grounds of age,disability, ethnic or national origin, gender,marital or parental status, nationality, politicalbelief, race, religion or sexual orientation.

The Council is on the National Register ofDisability Symbol Users, reflecting itscommitment to ensure that appropriate facilitiesare available for disabled employees.

Sickness absence

During 2013/14 staff sickness absence totalled587 days (2012/13: 364 days). This represented2.98% (2012/13: 1.97%) based on 260 workingdays, including 1.67% (2012/13: 0.16%) as aresult of long term absence (over 28 days).

Employee communication

The Council recognises the trade union Unite,with which it has established a proceduralagreement; representatives of management andunion meet regularly to discuss matters ofcurrent concern. Additionally, regulardepartmental meetings are held and Directorsand Team Leaders are required to report to theirstaff on matters discussed at Council, SeniorManagement Team, and Management Boardmeetings.

Pension scheme

Most employees are members of the ArtsCouncil Retirement Plan 1994 (ACRP). The fundis a defined benefit scheme. It is also a multi-employer scheme so the Council is unable toidentify its share of the underlying assets andliabilities. In accordance with the Council’s

accounting policies, the scheme has thereforebeen accounted for as if it were a definedcontribution scheme, in accordance with FRS 17.

The Council also introduced a definedcontribution scheme, The People’s Pension, as analternative option to meet the needs of AutoEnrolment legislation. The small number ofeligible employees that were not members of theACRP were auto-enrolled into the definedcontribution scheme as of 1 May 2014, theCouncil’s official staging date. The scheme isaccounted for in accordance with FRS 17.

Payment of creditors

Under the Late Payment of Commercial Debts(Interest) Act 1998, and the UK Government'sBetter Payment Practice Code, the Council isrequired to pay suppliers' invoices not in disputewithin 30 days of receipt of goods or services orvalid invoice, whichever is the later.

The Council aims to pay 100% of invoices,including disputed invoices once the dispute hasbeen settled, in line with these terms. During theyear ended 31 March 2014, the Council paid95% (2012/13: 94%) of all invoices within theterms of its payment policy. Since November2008 the Council, in line with WelshGovernment policy, aims to pay invoices within10 days. For 2013/14 85% (2012/13: 72%) ofinvoices have been paid within 10 days. It is notanticipated that our policy will alter in futureyears.

Financial risk and capital management

The Council mainly holds financial instrumentsto finance its operations, for example tradedebtors and trade creditors, and cash balancesarising directly from its operations. The financialrisk management of exposures arising fromtrading financial instruments, primarily tradedebtors and trade creditors, is through a seriesof policies and procedures. These risks aremanaged as follows:

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Liquidity risk - The Council is satisfied that it hassufficient liquid resources, in the form of cash atbank and agreed funding for 2014/15, to meetall current contracted commitments. The Councildoes not consider that its general activities areexposed to any significant liquidity risk.

Interest rate risk - Cash balances, which aredrawn down from the Welsh Government to paygrant commitments and operating costs, areheld in instant access variable rate bankaccounts which on average carried an interestrate of 0.38% (2012/13: 0.56%) in the year.Surplus daily funds invested in the Public SectorDeposit Fund on average carried an investmentreturn of 0.34% in the year (2012/13: n/a). Theeffective unrestricted year-end cash balance heldby the Council in the bank was £789,000(2013: £1,065,000). The Council does notconsider that its general activities are exposed tosignificant interest rate risks.

Foreign currency risk - The Council is notexposed to any significant foreign exchangerisks.

Cash flow risk - The Council is not exposed toany significant cash flow risks.

Personal data related incidents

The Council has controls and policies in place toensure data integrity. ICT systems ensure that thephysical security of data is tightly controlled. Asfar as we are aware, no loss of data occurredduring the period under review.

Social and community issues

We are committed to ensuring that the Council’sfunding is accessible and of benefit to all thecitizens of Wales. Ensuring greater access to thearts is a natural priority for a body, such as us,that is in receipt of public funds. We are fullycommitted to removing the barriers that preventand impede people from enjoying and takingpart in the arts.

We continue to have strategies targeted at youngpeople, community and voluntary arts andbroadening public engagement in the arts. Wehave moved forward this year on a number ofkey programmes. We have commissioned workto establish a disability ticketing scheme fordisabled theatre goers and their carers,commissioned a diversity and equalities toolkitfor the arts and a bespoke training and CPDprogramme for our staff.

We launched a pilot participatory project, inpartnership with Communities First, targeting ourmost disadvantaged young people and begandiscussions with the Baring Foundation and AgeCymru about supporting a project focusing onour older people living in care homes.

The Our Space programme has providedopportunities for venues and other arts providersto explore innovative approaches to audiencedevelopment, targeting in this young people andpeople from our black and minority ethnic (BME)communities.

Our grant schemes have over-arching fundingpriorities directed at projects promoting the workof artists from under-represented groups such asdisabled people and people from black andminority ethnic backgrounds. Recognising thebilingual culture of Wales, we also prioritiseapplications that will be delivered in Welsh orbilingually.

As we move forward into 2014/15 our focus willbe to complete and build on the projects wehave initiated this year. The diversity toolkit willbe launched through a series of training eventsand our in-house equalities training programmewill begin. We will progress our disabilityticketing scheme and our partnership project forolder people will begin.

Children and young people will be a primaryfocus for our work as we implement our workaround child poverty and arts and education.

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We plan to re-launch Our Space with a view tofocusing this scheme on families living in ourmost deprived communities.

Sustainability

The Welsh Government’s White Paper “ASustainable Wales – Better Choices for a BetterFuture” sets out its vision and proposals forembedding sustainability as the centralorganising principle for the wider publicservices in Wales when the SustainableDevelopment Bill becomes legislation. The ArtsCouncil of Wales is amongst the first wave oforganisations subject to the Sustainability Dutywhen it becomes law.

We have therefore reflected this into thedevelopment of our new arts developmentstrategy Inspire: Creativity and the Arts whichputs sustainable development at the heart ofour activities moving forward and explores inan holistic way how the arts sector cancontribute to social and economic – as well asenvironmental – sustainability.

At its October 2013 meeting, Councilconsidered and approved a Project InitiationDocument and an Equality Impact Assessmentfor the establishment of a SustainableDevelopment Task and Finish Group. The mainaims of this group were:

1. To plan, organise and deliver a sustainabledevelopment strategy for the Arts Council ofWales

2. To develop an operational plan to deliver theabove and be compliant with any relevantlegislation and guidelines from WelshGovernment (for implementation from April2014 onwards).

The Task and Finish Group has met twice, oncein November 2013, once in March 2014 andhas made excellent progress. We havecommissioned research and a mapping

exercise to identify and share best practicemodels both within Wales and beyond. Wehave also commissioned a piece of digitalfilmmaking that makes the case for SustainableDevelopment to assist in the training of staffand arts organisations and in our leadershiprole within the arts sector.

We have now got a draft SustainableDevelopment Policy that will take a threepronged approach – firstly, what we can deliverourselves through our own procedures, policiesand services; secondly, what we can encourageand support the individuals and organisationswe work with to achieve and thirdly, how wecan use our position of leadership to promotesustainable development more widely. We alsoend the year with an action plan to takeforward the various objectives and monitorprogress throughout the next financial year.

During the next year we will be developing ourplans further to meet our duties under theSustainable Development Bill in order to ensurethat we fully play our part in delivering theWelsh Government’s vision. We are totallycommitted to doing so.

Audit

In accordance with Article 11 of the Council’sRoyal Charter the Auditor General for Walesconducts the Council’s external audit on termsapproved by the Welsh Ministers.

So far as the Accounting Officer is aware, thereis no relevant audit information of which theCouncil’s auditor is unaware, and he has takenall the steps that he ought to have taken asAccounting Officer in order to make himselfaware of any relevant audit information and toestablish that the Council’s auditor is aware ofthat information.

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Environmental Report

We are committed to operating our business ina sustainable manner, and to applying goodenvironmental practice in order to reduce ourenvironmental impact and continually improveour performance.

Although we are below the WelshGovernment’s de minimis level, we decided wewould continue to voluntarily report more fullyon our environmental performance. We believethis to be in line with the spirit of the WelshGovernment’s aspirations for, and ourcommitment to drive forward with theSustainable Development agenda.

Review of progress:

Since introducing an environmental policy someyears ago, we have focussed on improving ourenvironmental performance. We have madegood progress, through a combination offinancial investment, the introduction ofsystems, changing our operating practices, andthrough the commitment of our staff.

We continue to operate from three locationsacross Wales and will, in the early part of thenew financial year, have achieved our target toreduce the size of our estate by 25%. Our NorthWales based staff now work out of smallerpremises, we moved our Cardiff based staff intoa smaller area, and recently relocated tosmaller premises in West Wales. Our offices arefitted with a range of energy saving devices andequipment.

Our offices are accessible through publictransport networks. In recent years we haveseen an increase in the number of visitors usingpublic transport to reach us, as well as anincrease in the number of staff using trains andbuses for their journeys to and from work.

We use energy-saving devices and equipmentto reduce electricity consumption andencourage staff to reduce consumptionwhenever possible. We recently replaced our

photocopying and printing multi-functionaldevices with new Energy star rated equipmentwhich reduces power consumption by 35% fromreplaced models. We also replaced all of ourmonitors. These too have an Energy star ratingand reduce power consumption by 25% incomparison to similar LED screens.

The focus of our ICT strategy in recent years hasbeen on extending the use of our informationtechnology infrastructure to provide businessand environmental benefits.

Two of our key systems – finance and on-linegrant application systems – are fully electronicfrom initial order or application through to finalpayment. All supporting documents areaccessible electronically. We also scan allincoming mail and invoices etc. This enablesstaff to access documents remotely, as well asreducing the volume of paper we receive,handle, store and re-cycle, with consequentialreductions in our storage requirements.

We have virtualised our IT servers resulting inreduced energy for power and cooling.

More than half of our members of staff areequipped with laptops and smartphones,enabling them to operate on a mobile basis, soreducing their dependency on having to workfrom our offices. This has helped reduce travelto work journeys and, in turn, their carbondioxide (CO2) emissions. We have not yet beenable to report accurately on the impact of thisbut will be examining the feasibility of doing soin future.

We have upgraded and extended our videoconferencing capacity in all three offices andactively promote its use as an alternative totravel. We are currently implementing aprogramme to enable our mobile workers toparticipate in video conferencing meetings withcolleagues and clients whilst away from ourpremises. We expect to fully implement thisinitiative during 2014/15.

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In addition to improving the environmentalperformance of our offices, we have also madeprogress in changing organisationalbehaviours.

The introduction of a new staffing structure in2011 and flexible, mobile workingarrangements has resulted in some staffneeding to travel more between offices, and toincrease the level of visits made to fundedorganisations. However, we have introduced anumber of initiatives to off-set the impact ofthis.

We promote the use of environmentally friendlymeans of transport, restrict travel to necessaryjourneys only, and encourage staff to makejourneys by the most efficient means possible,taking account of both environmental andfinancial considerations. Car sharing isencouraged, and we provided cycle racks in ourCardiff office. We are considering introducingfurther incentives.

Our staff induction programme includesEnvironmental Awareness, and members ofstaff are given periodic training and updates asappropriate.

We promote the minimisation of waste amongstour staff by encouraging reduction, reuse andrecycling. Recycling and waste separation,which reduces the amount sent to landfill, isactively promoted internally, and we uselicensed and appropriate organisations todispose of our waste. We recycle our surplusand redundant IT and office equipment.

All our major suppliers of office equipment andsupplies have environmental policies andreporting mechanisms in place, and weconsider environmental performance andawareness when selecting contractors andsuppliers.

We have standardised our stationery, and userecycled FCS paper supplies for at least 90% of

our copying and other internal needs.Managers and staff are provided with monthlyreports analysing printing and copying activity,to encourage lower overall usage.

Our cleaning contractors have environmentalpolicies in place that ensure they use eco-friendly products and equipment; any changeto cleaning products has to be agreed with us.

We have significantly reduced, in recent years,the number of printed paper copies of ourcorporate publications, and now use electronicmeans as our default position. This has helpedreduce paper consumption, the quantitiesdelivered, and our storage requirements.

Allied to this, our website provides a wide rangeof information to grant applicants, artists andarts organisations, and to the general public.This helps us deliver our level of service withoutthe need to print and send paper copies. Ourmain website has now been in operation forover four years, so we will be reviewing oursuite of websites and their content during theyear with a view to making them moreaccessible, increasing the level of informationand content, and improving our standards ofservice.

We were pleased that our efforts have beenrecognised and helped us secure level 5 GreenDragon accreditation during the year. We seethis as a testament to the progress we havemade in recent years.

Our performance:

Our internal reporting systems enable us tocapture and measure details of our use ofconsumables, waste, energy, water and stafftravel, and thus our CO2 emissions. Followingguidance from Green Dragon, we haveenhanced our waste reporting matrix andintend to continue to broaden and refine ourreporting.

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All three offices are now on a shared occupancybasis, with certain costs included within ourservice charge, particularly relating to wastecosts and water usage. This restricts our ability

to accurately assess our water and, to an extent,electricity usage. We will be exploring with ourlandlords the practicalities of introducingsystems to improve our data capture.

2013/14 2012/13

Waste:Non-financial (tonnes)

Landfill - estimate 1.65 2.2Reused/recycled - estimate 6.44 7.45

Greenhouse gas emissions (CO2 tonnes)Gross emissions, scope 2&3 (indirect) 61 61

Energy consumption (Kwh)Electricity (non-renewable) 125,644 126,708Electricity (renewable)Gas N/A N/A

Financial indicators (£)Expenditure – energy 21,709 18,900Water supply costs (office estate) –currently unable to assess, included inservice charge N/A N/A

Travel emissions (CO2 tonnes)Rail 8 12Air1 64 64Car/vans 25 35

Travel cost (£)Rail 24,085 33,194Air 22,646 19,981Car/vans 47,956 39,440

Travel (miles)Rail 102,761 154,806Air 224,369 221,803Car/vans 65,695 86,789

1 Includes the influence of radiative forcing in air travel emissions to capture the maximum climate impact. Radiativeforcing is a measure of the environmental impact of emissions of NOx (nitrous oxides) and water vapour when emitted at high altitude.

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Our ability to influence:

As well as seeking to improve our ownenvironmental performance, as the largestgrant distributor in the arts sector in Wales, weare uniquely placed to influence changes inbehaviour and performance amongst theindividuals and organisations we fund.

In previous years we funded the Emergence –Eginiad programme which focused on thedevelopment of a low-carbon arts infrastructureand developing the role of the arts as a crucibleof ideas and visions for a low-carbon OnePlanet Wales. Our work helped fund theEmergence summit, a major arts andsustainability event presented in Machynlleth inlate 2012. We funded artists’ commissions andfilm work connected to the event which in turnfeatured on the BBC/Arts Council Englandinitiative The Space. And we subsequentlyinaugurated an artist in residence project at theCentre for Alternative Technology and offeredfurther support for Emergence to scope a web-based documentation project.

We actively encourage high environmentalstandards in the capital projects we grant fund.Two current examples include the major newbuild project in Bangor, Pontio, which willachieve BREEAM Excellent standard, and theGlynn Vivian project in Swansea will reachBREEAM Very Good, due to its status as anhistoric building. Future capital projects we fundwill also require the recipient to meetappropriate BREEAM standards.

Looking ahead:

As well as continuing to improve our ownenvironmental performance and thus minimiseour own impact on the environment, we arekeen to influence the organisations and artistswe fund to do the same.

Our Sustainable Development Policy willspecifically target our Revenue Funded

Organisations through a combination of helpand support, funding programmes andfacilitated training and information sharing.

We also intend to raise awareness through acombination of: partnerships andcollaborations; involvement in relevantnetworks; creating and facilitating opportunitiesto engage with the issues; and advocating forthe role of the arts in social change.

Whilst going beyond purely environmentalissues, we see our Sustainable DevelopmentPolicy as an agent for change in improvingenvironmental awareness and performanceamongst those we fund. And in so doingenabling us to fully play our part in helpingdeliver the Welsh Government’s visioncontained in the Future Generations Bill.

Nicholas CapaldiAccounting Officer11 July 2014

Professor Dai SmithChairman11 July 2014

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Remuneration Report

The Council remunerates its entire staff, with theexception of the Chairman and Chief Executive,in accordance with an agreed pay and gradingsystem maintained by the Human ResourcesDepartment. A Job Evaluation Policy is in place,in accordance with which staff may appeal thegrading of posts. The terms of appointment ofthe Chairman and Chief Executive are agreedwith the Welsh Government.

Each year, in consultation with the recognisedtrade union, a pay remit is produced andsubmitted to the Welsh Government forapproval. The resultant pay and conditionspackage is binding on the whole of the Counciluntil the next round of negotiation. Increasesunder the pay remit are dependent uponperformance established by the Council’ssystem of personal development reviews.

With the approval of the Charity Commissionthe Chairman is remunerated at a ratedetermined by the Welsh Government whichreflects a minimum time commitment to Councilbusiness. Annual increases of the Chairman’ssalary are also advised by the WelshGovernment but he receives no bonuspayments and is not a member of the pensionscheme.

The Chief Executive’s remuneration consists of abasic salary plus an annual bonus. Annualbonuses are recommended to Council by theRemuneration Committee in consideration ofthe performance of the Chief Executive againsta set of predetermined objectives. A percentageof the bonus, as advised by the WelshGovernment, is consolidated into the ChiefExecutive’s salary and the remainder is paid asa non-consolidated award. In the absence ofguidance from the Welsh Government inrespect of changes to the Chief Executive’ssalary, the Remuneration Committee wasunable to determine whether an increase couldbe paid during the year. As a result the ChiefExecutive did not receive an increase or a non-consolidated bonus in respect of 2013/14.

Further details of the remuneration and pensionbenefits of the Chairman, Chief Executive and Directors are provided in note 9b to thefinancial statements. This information isaudited.

Council members are appointed by the WelshMinisters for a period of three years and maybe re-appointed for a further three year period.The current Chairman, Professor Dai Smith,was appointed as a Council member on 1 April2004 but took over the chairmanship on 1 April2006. The Minister for Culture, Sport and theWelsh Language subsequently appointedProfessor Smith for a term of three years from 1April 2007 until 31 March 2010, the HeritageMinister renewed his appointment for a furtherthree years to 31 March 2013 and the Housing,Regeneration and Heritage Minister hasannounced that Professor Smith will continue toserve as chairman until 31 March 2016. TheChief Executive and Directors are all employedon permanent contracts on the Council’sstandard terms and conditions.

Having successfully completed a probationaryperiod of six months, the Chief Executive andDirectors are entitled to thirteen weeks’ noticeof termination of employment.

The dates of commencement of employmentare: Professor Dai Smith (Chairman) 1 April2006; Nicholas Capaldi (Chief Executive) 15 September 2008; David Alston (Director of Arts) 1 July 2005; Katherine Davies (Director of Investment and Funding Servicesfrom 1 February 2012) 24 August 1998; Diane Hebb (Director of Engagement andParticipation from 1 February 2012) 13 January 1992; Siân Tomos (Director of Enterprise and Regeneration from 1 February 2012) 3 May 1994; and Hywel Tudor (Director of Finance andResources) 21 January 2002.

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The Remuneration Committee members whoserved since 1 April 2013 were:

Professor Dai Smith (Council member);Margaret Jervis MBE DL (Council member); andDr John Geraint (Council member).



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Under Article 11 of the Royal Charter dated 30March 1994 (as amended) the Council isrequired to prepare for each financial year astatement of accounts in the form and on thebasis determined by Welsh Ministers. Theaccounts are prepared on an accruals basisand must give a true and fair view of the stateof affairs of the Council and of its incomingresources and application of resources,recognised gains and losses and cash flows forthe financial year.

In preparing the accounts, the AccountingOfficer is required to comply with theaccounting principles and disclosurerequirements of the Charities Statement ofRecommended Practice (revised 2005) (“theSORP”) and, to the extent that it clarifies orbuilds on the requirements of the SORP, theGovernment Financial Reporting Manual and in particular to:

• observe the Accounts Direction issued byWelsh Ministers, including the relevantaccounting and disclosure requirements, andapply suitable accounting policies on aconsistent basis;

• make judgements and estimates on areasonable basis;

• state whether applicable accountingstandards as set out in the SORP and theGovernment Financial Reporting Manualhave been followed, and disclose andexplain any material departures in thefinancial statements; and

• prepare the financial statements on a goingconcern basis.

The Principal Accounting Officer for the WelshGovernment has designated the Chief Executiveas the Accounting Officer of the Council. Theresponsibilities of an Accounting Officer,including responsibility for the propriety andregularity of the public finances for which theAccounting Officer is answerable, for keepingproper records and for safeguarding theCouncil’s assets, are set out in the WelshGovernment’s Accounting Officers’Memorandum issued by HM Treasury.



Statement of Council’s and the Accounting Officer’s Responsibilities

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I certify that I have audited the financialstatements of the Arts Council of Wales GeneralActivities Account for the year ended 31 March2014 under Article 11 of the Council’s RoyalCharter. These comprise the Statement ofFinancial Activities, the Balance Sheet, the CashFlow Statement and the related notes. Thesefinancial statements have been prepared underthe accounting policies set out within them. Ihave also audited the information in theRemuneration Report that is described in thatreport as having been audited.

Respective responsibilities of the Council,Accounting Officer and auditor

As explained more fully in the Statement ofCouncil’s and the Accounting Officer’sResponsibilities, the Chief Executive asAccounting Officer is responsible for preparingthe Annual Report, which includes theRemuneration Report and the financialstatements, in accordance with Article 11 of theCouncil’s Royal Charter and Welsh Ministers’directions made there under and for ensuringthe regularity of financial transactions.

My responsibility is to audit the financialstatements and the part of the remunerationreport to be audited in accordance withapplicable law and with International Standardson Auditing (UK and Ireland). These standardsrequire me to comply with the Auditing PracticeBoard’s Ethical Standards for Auditors.

Scope of the audit of the financial statements

An audit involves obtaining evidence about theamounts and disclosures in the financialstatements sufficient to give reasonableassurance that the financial statements are freefrom material misstatement, whether caused byfraud or error. This includes an assessment of:whether the accounting policies are appropriateto the Arts Council of Wales’ circumstances and

have been consistently applied and adequatelydisclosed; the reasonableness of significantaccounting estimates made by the Arts Councilof Wales; and the overall presentation of thefinancial statements.

In addition, I am required to obtain evidencesufficient to give reasonable assurance that theexpenditure and income have been applied tothe purposes intended by the NationalAssembly for Wales and the financialtransactions conform to the authorities whichgovern them.

In addition I read all the financial and non-financial information in the Trustees’ AnnualReport to identify material inconsistencies withthe audited financial statements. If I becomeaware of any apparent material misstatementsor inconsistencies I consider the implications formy report.

Opinion on Financial Statements

In my opinion the financial statements:

• give a true and fair view of the state of theArts Council of Wales’ affairs as at 31 March2014 and of its deficit and cash flows for theyear then ended; and

• have been properly prepared in accordancewith the Welsh Ministers’ directions issuedunder Article 11 of the Council’s RoyalCharter.

Opinion on Regularity

In my opinion, in all material respects, theexpenditure and income have been applied tothe purposes intended by the NationalAssembly for Wales and the financialtransactions conform to the authorities whichgovern them.

The Certificate and Report of the Auditor General for Walesto the Arts Council of Wales

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Opinion on other matters

In my opinion:

• the part of the Remuneration Report to beaudited has been properly prepared inaccordance with Welsh Ministers’ directionsmade under Article 11 of the Council’s RoyalCharter; and

• the information included within the Trustees’Annual Report is consistent with the financialstatements.

Matters on which I report by exception

I have nothing to report in respect of thefollowing matters which I report to you if, in my opinion:

• the Annual Governance Statement does notreflect compliance with HM Treasuryguidance;

• proper accounting records have not beenkept;

• information specified by HM Treasuryregarding the remuneration and othertransactions is not disclosed; or

• I have not received all of the information andexplanations I require for my audit.

Report

I have no observations to make on thesefinancial statements.

Huw Vaughan ThomasAuditor General for Wales24 Cathedral RoadCardiffCF11 9LJ

16 July 2014

The maintenance and integrity of the ArtsCouncil of Wales’s website is the responsibilityof the client; the work carried out by auditorsdoes not involve consideration of these mattersand accordingly auditors accept noresponsibility for any changes that may haveoccurred to the financial statements since theywere initially presented on the website.

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Statement of Financial Activitiesfor the year ended 31 March 2014

Unrestricted Restricted 2014 2013funds funds Total Total

Note £’000 £’000 £’000 £’000

INCOMING RESOURCESIncoming resources from generated funds

Voluntary income:Grant-in-aid from the Welsh Government 3 29,826 4,400 34,226 34,247Other grants and donations 4 - 845 845 2,409Sub-total Voluntary income 29,826 5,245 35,071 36,656

Activities for generating funds:Services and sponsorship 5 148 63 211 267

Investment income:Bank interest 9 - 9 17

Other incoming resources 6 508 - 508 174Total incoming resources 30,491 5,308 35,799 37,114

RESOURCES EXPENDEDCharitable activities 7,8,9 31,538 5,158 36,696 36,678Governance costs 10 89 - 89 87Grant-in-aid surrendered to Welsh Government - 300 300 -Bank interest surrendered to Welsh Consolidated Fund 9 - 9 17Total resources expended 31,636 5,458 37,094 36,782

Net incoming/(outgoing) resources (1,145) (150) (1,295) 332Gross transfers between funds 15 30 (30) - -

Net movement in funds (1,115) (180) (1,295) 332Fund balances brought forward 2,823 412 3,235 2,903Total funds carried forward 1,708 232 1,940 3,235

There are no gains or losses other than those shown above.

There are no discontinued activities and there have been no acquisitions during the year.

The notes on pages 55 to 78 form part of these financial statements

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Balance Sheetas at 31 March 2014

2014 2013Note £’000 £’000 £’000 £’000

Fixed assetsIntangible fixed assets 11a 7 15Tangible fixed assets 11b 249 295

256 310Investment in Cerdd Cymru:Music Wales Ltd 1b, 20 - -

Current assetsGrants paid in advance 12 496 516Other debtors and prepayments 13 1,216 2,281Cash and cash equivalents 1,021 1,491

2,733 4,288

Creditors: amounts falling due within one yearGrants payable (504) (104)Other creditors falling due within one year (545) (1,259)

14 (1,049) (1,363)Net current assets 1,684 2,925

Total assets less current liabilities 1,940 3,235

Net assets 1,940 3,235

Represented by:Funds

Unrestricted funds 15 1,708 2,823Restricted funds 15 232 412

1,940 3,235

The notes on pages 55 to 78 form part of these financial statements.

The financial statements were approved by the Arts Council of Wales and signed on its behalf by

Nicholas Capaldi Professor Dai SmithAccounting Officer Chairman11 July 2014 11 July 2014

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Cash Flow Statementfor the year ended 31 March 2014

2014 2013Note £’000 £’000

Net cash inflow/(outflow) from operating activities 17a (414) (6,101)

Bank interest 9 17

(405) (6,084)

Capital expenditure 17b (65) (76)

Increase/(Decrease) in cash in the year 17c (470) (6,160)


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1. Accounting policies

a. Basis of preparation

These financial statements are prepared underthe historical cost convention modified toinclude certain fixed assets at their value to theCouncil on a current cost basis. They havebeen prepared in accordance with the AccountsDirection issued by Welsh Ministers and meetthe requirements of the Charities Acts 2006and 2011, of the Charity Commission’sdirections Accounting and Reporting byCharities: Statement of Recommended Practice(revised 2005), and of the Statements ofStandard Accounting Practice and FinancialReporting Standards issued and adopted by theAccounting Standards Board so far as thoserequirements are appropriate. In addition tocompliance with the Charities SORP regard isgiven to the requirements of the GovernmentFinancial Reporting Manual issued by HMTreasury to the extent that it clarifies or buildson the requirements of the SORP. A summary ofthe principle accounting policies which havebeen applied consistently are set out below.

Under separate Accounts Directions theaccounting treatment of general and lotterygrants differs significantly so, with due regardto paragraph 359 of the Charity Commission’sStatement of Recommended Practice (revised2005), in the judgment of the Trustees theproduction of a consolidated account isinappropriate as it would not provide a trueand fair view of the application of the Council’sresources. However, the combined totalincoming resources and an indication of thecombined direct charitable arts expenditure isprovided in note 2.

b. Cerdd Cymru:Music Wales Limited

The Council has a 50 per cent interest in CerddCymru:Music Wales Limited, a jointarrangement with the Welsh Music Foundation.In accordance with FRS 9 this interest is

accounted for as a joint arrangement that isnot an entity (JANE) and not consolidated intothe Council’s financial statements. Instead, theCouncil’s share of the cash flows within CerddCymru:Music Wales have been identified andaccounted for within the Statement of FinancialActivities as if they were part of the Council’soperations. Any amounts owing to or due fromCerdd Cymru:Music Wales are shown underthe appropriate balance sheet headings. As thejoint arrangement is not consolidated, anyinvestment in Cerdd Cymru:Music Wales isrecorded at historic cost less impairment toreflect the Council’s share of the net assets,where this is lower. The financial statements donot take into consideration any surplusgenerated and held within Cerdd Cymru:MusicWales as there are restrictions and uncertaintieson its distribution. (See note 20)

c. Income

All income is accounted for on an accrualsbasis, with the exception of legacies, donationsand gifts which are recognised only when theyare received. Capital grants receivable aretreated as incoming resources.

No income is recorded net of expenditure inthe Statement of Financial Activities.

d. Lottery distribution

These financial statements do not cover theCouncil’s lottery distribution function for whichseparate financial statements have beenprepared in accordance with directions issuedby the Secretary of State for Culture, Mediaand Sport.

The Council incurs costs which support both its general activities and the lottery distributionfunction. In accordance with the FinancialDirection issued by the Welsh Government, theCouncil apportions indirect costs properlybetween these two areas of activity withreference to the time spent on or the

Notes forming part of the fiancial statements

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consumption of the relevant resources by therespective activities.

e. Resources expended

All expenditure is accounted for on an accrualsbasis and has been classified under headingsthat aggregate all costs related to the category.Where costs cannot be directly attributed toparticular headings they have been allocated toactivities on a basis consistent with use of theresources.

f. Grants awarded

Subsidy expenditure is incurred in the form ofgrants which are formally offered toorganisations funded by the Council. Grants areoffered in support of a programme of activitiesplanned for, or to commence in, a particularfinancial year and are charged to the Statementof Financial Activities in that year.

Forward commitments made in the year relatingto next year’s activity, as disclosed in note 19,are not charged to the Statement of FinancialActivities. As the grant-in-aid to meet thesecommitments cannot be recognised until it isreceived, the Trustees do not believe theirinclusion would provide a true and fair view ofthe application of the Council’s resources.

Grants unpaid at the year end are shown ascreditors in the Balance Sheet. Any advancepayments which have been made in respect ofapproved grants relating to next year’s activitiesare shown in the Balance Sheet as currentassets.

All grants offered are listed in the annex to thisAnnual Report.

g. Services and sponsorship

Services and sponsorship comprise the directcosts, including staff and depreciation,attributable to charitable activities.

h. Allocation of operating costs

Operating costs have been allocated firstbetween charitable activities and governance.Operating costs relating to charitable activitieshave been apportioned to reflect the time spentby staff in delivering direct activities and insupport of their delivery. The allocation andanalysis of these costs is in notes 7, 8 and 9.

i. Governance costs

Governance costs comprise all costs involvingthe public accountability of the Council as acharity and its compliance with regulation andgood practice. These costs are analysed in note 10.

j. Foreign currency

Revenue received and expenditure incurred inforeign currencies is converted at the exchangerate prevailing at the time of the transaction.Balances held in foreign currencies areconverted at the rate prevailing at the BalanceSheet date. Transactions and balances coveredby forward contracts are converted at thecontract rate.

k. Recognition of liabilities

Liabilities are recognised when an obligationarises to transfer economic benefits as a resultof past transactions or events.

l. Fund accounting

Restricted funds are those which are to be usedin accordance with specific restrictionsimposed by donors or which have been raisedby the Council for particular purposes. The costof raising and administering such funds arecharged against the specific fund. The aim anduse of each restricted fund is set out in the notesto the financial statements.

Unrestricted funds are those which are available

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for use at the discretion of Council infurtherance of its chartered objectives and whichhave not been designated for other purposes.

Where support costs are allocated to restrictedcharitable activities a transfer is made fromunrestricted funds to cover these costs.

m. Fixed assets

The Council owns two freehold properties, theSherman Theatre and the Rubicon DanceStudio, which are let on long leases atpeppercorn rents to tenants which are notcontrolled by the Council and with no provisionfor repossession by the Council. Based on theadvice of external and independent charteredsurveyors, the residual value of these freeholdinterests is considered to be negligible so theseassets are held in the accounts at a nil value.

Website development costs, in accordance withUrgent Issues Task Force abstract 29, aretreated as tangible fixed assets.

Computer software licences are treated asintangible fixed assets if they cover more thanone year.

Other than freehold properties all tangible andintangible fixed assets are included at historicalcost less an allowance for depreciation andamortisation. The Council considers that there isno significant difference between the book andmarket values.

n. Amortisation and depreciation

Individual assets costing £1,000 or above arecapitalised and a full year’s amortisation ordepreciation is provided in the year ofacquisition. Amortisation of intangible fixedassets and depreciation on tangible fixed assetsis provided at rates calculated to write off thecost or valuation of each asset to its residualvalue on a straight line basis over its expecteduseful life as follows:

Computer software licences - over 3 yearsLeasehold improvements - over the term of the leaseFurniture, fixtures and fittings - over 10 yearsEquipment - over 4 yearsWebsite development costs - over 3 yearsComputer system - over 3 years

o. Leases

The costs of operating leases are charged to theStatement of Financial Activities on a straightline basis over the life of the lease.

p. Pensions

The Council is an admitted employer of the ArtsCouncil Retirement Plan 1994 (ACRP) whichprovides defined benefits to Council employees.The costs of the Council’s contributions arecharged to the Statement of Financial Activitiesso as to spread the cost of pensions overemployees’ working lives.

The fund is a defined benefit, multi-employerscheme so the Council is unable to identify itsshare of the underlying assets and liabilities. Thescheme has therefore been accounted for as if itwere a defined contribution scheme, inaccordance with FRS 17.

The Council also introduced a definedcontribution scheme, The People’s Pension,effective 1 May 2014, as an alternative optionto meet the needs of Auto Enrolment legislation.The scheme is accounted for in accordance withFRS 17.

q. Taxation

Non-recoverable Value Added Tax arising fromexpenditure on non-business activities ischarged to the Statement of Financial Activitiesor capitalised as a fixed asset where applicable.

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r. Financial instruments

Financial assets: Trade debtors do not carryany interest and are stated at their nominalvalue as reduced by appropriate allowancesfor estimated irrecoverable amounts. Cashcomprises cash in hand and cash at bank andon short term deposit on instant access terms.

Financial liabilities: Trade creditors are notinterest bearing and are stated at their nominalvalue.

2. General activities and Lottery distribution:combined incoming resources and directcharitable arts expenditure

The separate Lottery distribution account showsthe Council’s 2013/14 share of the proceedsfrom the National Lottery of £16,892,000(2012/13: £19,355,000). The combined totalincoming resources for both general andLottery activities for 2013/14 was£52,843,000 (2012/13: £56,599,000).

General grants are charged to the Statementof Financial Activities as soon as they areoffered. Lottery grants are charged only whenthe formal offer has been accepted by therecipient. Although not all charged asexpenditure in the Statement ofComprehensive Net Expenditure, during2013/14 Council approved Lottery grantsamounting to £18,078,000 (2012/13:£11,958,000). On this basis, the combinedtotal direct charitable arts expenditure for bothgeneral and Lottery activities for 2013/14 was£56,784,000 (2012/13: £50,055,000).

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3. Incoming resourcesVoluntary income: Grant-in-aid from the Welsh Government

The grant-in-aid shown in the Statement of Financial Activities reconciles with the cash sum receivedfrom the Welsh Government as follows:

Unrestricted Restricted 2014 2013funds funds Total Total£’000 £’000 £’000 £’000

Cash grant-in-aid paid in full 29,826 4,400 34,226 34,247Grant-in-aid credited to incoming resources in the Statement of Financial Activities 29,826 4,400 34,226 34,247

4. Incoming resourcesVoluntary income: Other grants and donations


Grants from European funds - 155 155 1,851Momentum – contribution from Welsh Government’s Communities First programme - 100 100 -Dylan Thomas 100 Festival – contributions from partners - 590 590 -Legacy Trust UK - - - 507Prior years’ grants no longer required - - - 51

- 845 845 2,409

5. Incoming resourcesActivities for generating funds: Services and sponsorship


Community Touring scheme:- contributions from venues/promoters 114 - 114 126

Wales Arts International:- contribution from the British Council - 60 60 40- contributions from others - 3 3 15

Collectorplan charges 25 - 25 24Annual Conference - delegate fees 6 - 6 4Arts Marketing Symposium - trainee fees 2 - 2 -Other income 1 - 1 -Cultural Olympiad 2012:- contribution from the Welsh Government - - - 33Legacy Trust UK - management fees - - - 24Fees for exhibition work at Gwydyr House, Whitehall - - - 1

148 63 211 267

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6. Incoming resourcesOther incoming resources


Lease incentive - release of deferred income 49 - 49 59Contribution from the Lottery Distribution account for use of fixed assets 48 - 48 41Share of income of Cerdd Cymru:Music Wales (note 20) 411 - 411 74

508 - 508 174

7. Resources expendedCharitable activities

Direct Support 2014 2013activities costs Total Total

£’000 £’000 £’000 £’000

Grant making and arts development 1 31,868 363 32,231 30,413Arts strategy and research 1,888 269 2,157 1,788International 672 121 793 609European funded projects 37 8 45 2,155Services: Night Out & Collectorplan 583 84 667 670Advocacy 341 33 374 271Impairment of investment inCerdd Cymru:Music Wales (note 20) 35 - 35 60Share of expenditure of Cerdd Cymru:Music Wales (note 20) 394 - 394 91Cultural Olympiad 2012 & Legacy Trust UK - - - 621

35,818 878 36,696 36,678

1 Including grants:- to public bodies 4,853 4,535- to private bodies 25,917 24,591

30,770 29,126

All grants are listed in the annex to this Annual Report.

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8. Operating costs2014 2013

Deduct Net NetRecharges charge to charge toto Lottery General General

Gross costs Distribution Activities Activities£’000 £’000 £’000 £’000

Charged to Direct activities (note 7)

Grant making and arts development 505 256 249 205Arts strategy and research 290 105 185 161International 83 - 83 75European funded projects 5 - 5 37Services: Night Out & Collectorplan 57 - 57 51Advocacy 50 26 24 20Cultural Olympiad 2012 & Legacy Trust UK - - - 16

990 387 603 565

Charged to Support costs (note 7)

Staff related costs 67 34 33 24Infrastructure 184 87 97 92Office running costs 23 11 12 9Professional fees 72 45 27 15Irrecoverable VAT 56 29 27 24Amortisation and depreciation 51 19 32 28Organisational review - - - 10

453 225 228 202

Total 1,443 612 831 767

9. Staff costs

a. Total staff costs consist of:2014 2013

Deduct Net NetRecharges charge to charge toto Lottery General General


Wages and salaries 2,697 814 1,883 1,890Social security costs 239 73 166 154Other pension costs 493 146 347 366Agency costs 14 6 8 3Redundancy costs - - - 16

3,443 1,039 2,404 2,429

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2014 2013Deduct Net Net

Recharges charge to charge toto Lottery General General


Staff costs are incorporated in the financial statements as follows:

Charged to Direct activities (note 7)

Grant making and arts development 1,143 431 712 642Arts strategy and research 705 177 528 506International 238 - 238 234European funded projects 15 - 15 116Services – Night Out & Collectorplan 164 - 164 160Advocacy 101 36 65 64Cultural Olympiad 2012 & Legacy Trust UK - - - 49

2,366 644 1,722 1,771

Charged to Support costs (note 7)

Management and internal control 447 174 273 283Finance 213 74 139 130Information and computer technology 147 52 95 80Facilities management 62 22 40 38Human resources 43 15 28 22Communications 116 41 75 73

1,028 378 650 626

Charged to Governance (note 10)

Chairman’s remuneration 49 17 32 32

3,443 1,039 2,404 2,429

The average number of staff (full time equivalents) employed during the year was:

Across On Lottery 2014 2013whole Distribution On General On General

Council activities activites activitiesNo No No No

On charitable activities: directly charged 11 - 11 14On charitable activities: recharged 49 14 35 36In support of our charitable activities 16 8 8 8Agency staff 1 - 1 -

77 22 55 58

2014 2013The median annual remuneration (full time equivalents) at 31 March was (whole Council): £30,000 £30,000

The ratio between the median annual remuneration and the annual remuneration of the highest paid member of staff was (whole Council): 1:3.12 1:3.12

Compensation schemes - exit packages (whole Council):

Number of compulsory Number of other Total number of exitExit package cost band redundancies departures agreed packages by cost band

2013/14 2012/13 2013/14 2012/13 2013/14 2012/13<£9,999 - - - - - -£10,000 to £24,999 - 1 - - - 1£25,000 to £49,999 - - - - - -£50,000 to £99,999 - - - - - -Total number of exit packages - 1 - - - 1

Total cost (£’000) - 16 - - - 16

Redundancy costs were paid in accordance with the provisions of the Council’s redundancy policy. The Council usually pays exit costs when employment ends but provides for the exit costs in full at thepoint when there is sufficiently detailed information to do so.

All ‘other departures agreed’ related to requests for redundancy where, in accordance with theCouncil’s redundancy policy, the employees’ posts either disappeared in the new structure or werefilled by other employees who would otherwise have been compulsorily redundant. There is nodifference in the payment entitlements of volunteers and those who are compulsorily redundant.

b. The Chief Executive and Directors are responsible for directing the Council’s activities. Their actualemoluments and pension benefits were as shown in the following tables.

This year, for the first time, this note must include a single total figure of remuneration. Prior yearcomparatives have been provided for 2012/13. This is a different way of presenting the remunerationfor each individual for the year. The table used is similar to that used previously, and the salaryelement is unchanged. The amount of pension benefits for the year which contributes to the singletotal figure is calculated in a new way, similar to the method used to derive pension values for taxpurposes, and is based on information received from the actuary of the Arts Council Retirement Plan1994.

The value of pension benefits is calculated as follows:(real increase in pension* x 20) + (real increase in any lump sum) – (contributions made by member)*excluding increases due to inflation or any increase or decrease due to a transfer of pension rights

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This is not an amount which has been paid to an individual by the Council during the year, it is acalculation which uses information from the pension benefit table. These figures can be influenced bymany factors, e.g. changes in a person’s salary, whether or not they choose to make additionalcontributions to the pension scheme from their pay, and other valuation factors affecting the pensionscheme as a whole.

The single total remuneration figures were:

2014 2013

Name and Emoluments1 Pension Single total Emoluments1 Pension Single totalPosition band benefits remuneration band benefits remuneration

£’000 £’000 £’000 £’000 £’000 £’000

Nicholas Capaldi 90-95 22 115-120 90-95 21 110-115Chief Executive

David Alston 65-70 22 90-95 65-70 15 80-85Director of Arts

Katherine Davies 55-60 37 95-100 50-55 51 100-105Director of Investment and Funding Services

Diane Hebb 55-60 27 80-85 50-55 31 80-85Director of Engagement and Participation

Siân Tomos 55-60 32 85-90 50-55 20 70-75Director of Enterprise and Regeneration

Hywel Tudor 65-70 24 90-95 65-70 12 75-80Director of Finance and Resources

1 Emoluments – Guidance has not yet been issued by the Welsh Government in respect of Chief Executives’ entitlement to a performance-related non-consolidated award for 2013/14. The other Directors have no entitlement to performance-related awards.

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The pension benefits were:

2014 2014 2014 2014Total accrued Real3

Real increase pension at Cash2 Cash Increase inin pension age 65 as at Equivalent Equivalent Cash

and related 31/03/14 Transfer Transfer Equivalentlump sum and related Value at Value at Transfer

Name and position at age 65 lump sum 31/03/14 31/03/13 Value£’000 £’000 £’000 £’000 £’000

Nick Capaldi Pension 0-2.5 Pension 5-10 91 77 12Chief Executive Lump sum 2.5-5 Lump sum 15-20

David Alston Pension 0-2.5 Pension 5-10 124 104 18Director of Arts Lump sum 2.5-5 Lump sum 15-20

Katherine Davies Pension 0-2.5 Pension 15-20 263 243 16Director of Investment Lump sum 2.5-5 Lump sum 55-60and Funding Services

Diane Hebb Pension 0-2.5 Pension 5-10 145 129 14Director of Engagement Lump sum 2.5-5 Lump sum 25-30and Participation

Siân Tomos Pension 0-2.5 Pension 10-15 209 190 16Director of Enterprise Lump sum 2.5-5 Lump sum 40-45and Regeneration

Hywel Tudor Pension 0-2.5 Pension 10-15 185 168 15Director of Finance Lump sum 2.5-5 Lump sum 30-35and Resources

2 Cash Equivalent Transfer Values - A Cash EquivalentTransfer Value (CETV) is the actuarially assessed capitalisedvalue of the pension scheme benefits accrued by amember at a particular point in time. The benefits valuedare the member’s accrued benefits and any contingentspouse’s pension payable from the scheme. A CETV is apayment made by a pension scheme or arrangement tosecure pension benefits in another pension scheme orarrangement when the member leaves a scheme andchooses to transfer the benefits accrued in their formerscheme. The pension figures shown relate to the benefitsthat the individual has accrued as a consequence of theirtotal membership of the pension scheme, not just theirservice in a senior capacity to which disclosure applies. The figures include the value of any pension benefit inanother scheme or arrangement which the individual hastransferred to the Arts Council Retirement Plan 1994. Theyalso include any additional pension benefit accrued to themember as a result of their purchasing additional pensionbenefits at their own cost. CETVs are calculated within theguidelines and framework prescribed by the Institute and

Faculty of Actuaries and do not take account of any actualor potential reduction to benefits resulting from LifetimeAllowance Tax which may be due when pension benefitsare drawn.

3 Real increase in CETV - This reflects the increase in CETVeffectively funded by the employer. It does not include theincrease in accrued pension due to inflation, contributionspaid by the employee (including the value of any benefitstransferred from another pension scheme or arrangement)and uses common market valuation factors for the startand end of the period.

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Following an amendment to the Council’s Royal Charter, and with the approval of the Charity Commission, since 1 April 2004 the Chairman has been remunerated for his services but receives no bonus payments and is not a member of the pension scheme. Other Council Members, Committee Members and National Advisers receive no payment for their services. Council meeting costs for 2013/14 include an aggregate amount of £15,477 (2012/13: £9,801) reimbursed to 14 (2012/13: 12) Council members.

The total actual emoluments of the Chairman and Chief Executive were made up of:

2014 2013£ £

ChairmanSalary 43,810 43,810

Chief ExecutiveSalary 93,380 93,380Employer’s pension contribution 16,155 16,155

109,535 109,535

Travel and subsistence expenses incurred and defrayed whilst on Council business:

Chairman 3,129 2,882Chief Executive 8,744 8,283

66.04% (2012/13: 66.04%) of the Chairman’s and Chief Executive’s emoluments are charged inthese financial statements and the remainder to lottery distribution activities.

c. Most employees are members of the Arts Council Retirement Plan 1994 (ACRP). The fund is a definedbenefit scheme. It is also a multi-employer scheme so the Council is unable to identify its share of theunderlying assets and liabilities. The scheme has therefore been accounted for as if it were a definedcontribution scheme, in accordance with FRS 17.

An independent actuarial valuation of the ACRP normally takes place every three years. The mostrecent valuation, as at 31 March 2013, came into effect on 1 April 2014. The valuation introducednew contribution rates for the Council in respect of accruing benefits, and also requires a minimumlevel of payment to be made each year towards the past service deficit, at a rate advised by thescheme actuary. In order to eliminate the deficit, the actuary recommended increased employercontributions over the next 9 years, compared to the 13 years used previously.

On the assumption that the recommended amounts would be paid to the Plan, the actuary’s opinionwas that the resources of the scheme are likely in the normal course of events to meet in full theliabilities of the scheme as they fall due. The main actuarial assumptions used were: that priceinflation would be 2.75% per annum; pay increases would be 1.5% per annum for the first 5 yearsand 3.5% thereafter; pension increases would be 2.75% per annum on pensions in excess ofGuaranteed Minimum Pensions (GMPs); pension increases of deferred pensions would be 2.75% perannum on pensions accrued before April 2009 and 2.5% on pensions accrued after that date, bothsubject to statutory revaluations; the past service discount rate would be 4.8% per annum and thefuture service discount rate would be 4.8% per annum.

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Contributions by the Council and its employees were:

For staff joining the Plan: Council Employees2014 2013 2014 2013

on or before 31 August 2006 19.3% 19.3% 1.5% 1.5%from 1 September 2006 to 31 March 2010 17.3% 17.3% 3.5% 3.5%on or after 1 April 2010 14.8% 14.8% 6.0% 6.0%

The Council was also required to contribute a minimum payment of £48,000 towards the deficitduring 2013/14.

From April 2014 the Council’s contributions on behalf of its employees increased to 22.0% (for those who joined up to 31 August 2006), 20.0% (for those who joined between September 2006and March 2010), and 17.5% (for those joining from April 2010). The minimum contribution to thedeficit increased to £48,700 per annum from April 2014.

The Council also pays 0.2% of pensionable salary in respect of each life assurance only member.

Under Auto Enrolment legislation all eligible employees are required to join a qualifying pensionscheme, unless they formally opt out. We introduced a defined contribution scheme, The People’sPension, as an alternative option for employees that were not members of the ACRP.

We auto-enrolled all eligible employees into The People’s Pension on 1 May 2014, our officialstaging date. The Council contributes 4% and the employee 1%. These rates will change in thefuture, in line with the requirements of the legislation.

10. Resources expendedGovernance costs

2014 2013Total Total

£’000 £’000Chairman’s remuneration 32 32Auditor’s remuneration - Audit 22 22

Additional assurance - 4Internal audit 12 11Consultancy 2 -Council meetings, including Members’ travel and subsistence 10 7Committee meetings, including travel and subsistence 11 11

89 87

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11. Fixed assets

a. Intangible fixed assetsComputer software licences

£’000Cost at 1 April 2013 574Additions 8Disposals (4)Cost at 31 March 2014 578

Amortisation at 1 April 2013 559Charge for the year 16Disposals (4)Amortisation at 31 March 2014 571

Net book value at 31 March 2014 7

Net book value at 1 April 2013 15

b. Tangible fixed assetsAlterations to Computer

leasehold system, properties furniture, etc. Website Total

£’000 £’000 £’000 £’000

Cost at 1 April 2013 192 639 64 895Additions - 49 8 57Disposals - (59) - (59)Cost at 31 March 2014 192 629 72 893

Depreciation at 1 April 2013 133 446 21 600Charge for the year 14 62 27 103Disposals - (59) - (59)Depreciation at 31 March 2014 147 449 48 644

Net book value at 31 March 2014 45 180 24 249

Net book value at 1 April 2013 59 193 43 295

2014 2013£’000 £’000

Amortisation and depreciation charged has been allocated to charitable activities as follows (note 7):Direct activities 88 74Support costs 31 28

119 102

c. Net book value at 31 March 2014 represents fixed assets used by the Council in support of itscharitable activities.

The Council’s freehold properties in Cardiff, the Sherman Theatre and the Rubicon Dance Studio, arelet on long leases at peppercorn rents to tenants which are not controlled by the Council and with noprovisions either for reviewing the rents or repossession by the Council.

The Sherman Theatre was acquired by the Welsh Arts Council, a division of the Arts Council of GreatBritain, in September 1987 at a cost of £897,000 and immediately let for a term of 125 years. At thedissolution of the Arts Council of Great Britain in March 1994 the freehold interest was transferred tothe newly formed Arts Council of Wales.

The Rubicon Dance Studio was acquired by the Welsh Arts Council in February 1988 at a cost of£11,315 and subject to an existing lease for a term of 999 years commencing 1 January 1986. Thefreehold interest was transferred to the Arts Council of Wales in March 1994.

The most recent external and independent valuation of the Council’s freehold properties was as at31 March 2004. It was undertaken by Elizabeth Hill, a Member of the Royal Institute of CharteredSurveyors, for and on behalf of Cooke & Arkwright, Chartered Surveyors. Because of the impact ofthe leases it was the surveyor’s opinion that the freehold interests had a nil or nominal value, sothese assets are held in the accounts at nil value.

Council does not consider it necessary to undertake a further valuation until there is a significantreduction in the residual terms of the leases or earlier termination.

12. Grants paid in advance

In certain circumstances, requiring the authorisation of the Chief Executive, the Council makesadvance payments before the year to which the grant relates. The power is limited to situationswhere the recipient organisation would otherwise suffer financial hardship.

2014 2013£’000 £’000

Payments in respect of the following year’s grants 496 516

69

70

13. Other debtors and prepayments (falling due within one year) 2014 2013£’000 £’000

a. Analysis by type

Collectorplan loans 347 315Trade debtors 93 55Other debtors 222 1,246Prepayments 287 623

949 2,239Due from Lottery distribution fund 243 41Share of debtors and prepayments of Cerdd Cymru:Music Wales (note 20) 24 1

1,216 2,281

b. Intra-government balances

Balances with other central government bodies 26 822Balances with local authorities 43 6Sub-total: Intra-government balances 69 828Balances with bodies external to government 1,147 1,453Total debtors and prepayments 1,216 2,281

14. Creditors: amounts falling due within one year

a. Analysis by type

Grants payable 504 104Taxation and social security 69 71Trade creditors 96 110Other creditors 61 62Accruals and deferred income 295 920Share of current liabilities of Cerdd Cymru:Music Wales (note 20) 24 32

1,049 1,299Due to Lottery distribution fund - 64

1,049 1,363

b. Intra-government balances

Balances with other central government bodies 69 71Balances with local authorities 1 3Sub-total: Intra-government balances 70 74Balances with bodies external to government 979 1,289Total creditors 1,049 1,363

71

15. Statement of fundsAt At

1 April Incoming Resources 31March2013 resources expended Transfers 2014£’000 £’000 £’000 £’000 £’000

Unrestricted fundsGeneral fund 2,823 30,491 (31,636) 30 1,708Total unrestricted funds 2,823 30,491 (31,636) 30 1,708

Restricted fundsIncomeWelsh Government for specific arts activity 3001 4,400 (4,705)1 105 100European Funded Projects - 155 (33) (122) -Wales Arts International: contributions from the British Council - 63 (44) 1 20Momentum 100 (102) 2Dylan Thomas 100 Festival - 590 (574) (16) -

300 5,308 (5,458) (30) 120

CapitalAlun Llywelyn Williams Memorial Fund (income to provide bursary for young artist) 13 - - - 13Brian Ross Memorial Fund (income to provide bursary for young visual artist) 99 - - - 99

112 - - - 112

Total restricted funds 412 5,308 (5,458) (30) 232

Total funds 3,235 35,799 (37,094) - 1,940

1 Resources expended includes uncommitted funds of £300,000, received in 2012/13, surrenderedto Welsh Government.

The Alun Llywelyn Williams and Brian Ross Memorial Funds are represented by cash at bank andare within the total of £1,021,000 shown on the balance sheet.

72

16. Analysis of net assets between fundsUnrestricted Restricted

funds funds Total£’000 £’000 £’000

Fund balances at 31 March 2014 are represented by:Fixed assets 256 - 256Current assets 2,501 232 2,733Creditors: amounts falling due within one year (1,049) - (1,049)

Total net assets 1,708 232 1,940

17. Cash flow information2014 2013£’000 £’000

a. Reconciliation of changes in resources to net inflow from operating activities

Net incoming/(outgoing) resources (1,295) 332Bank interest (9) (17)Amortisation and depreciation (note 11c) 119 102(Increase)/Decrease in grants paid in advance 20 (47)(Increase)/Decrease in debtors and prepayments 1,065 (751)Increase/(Decrease) in grants payable 400 (240)Increase/(Decrease) in other creditors falling due within one year (714) (5,431)Increase/(Decrease) in creditors falling due after more than one year - (49)Net cash inflow/(outflow) from operating activities (414) (6,101)

b. Analysis of cash flows

Capital expenditurePayments to acquire intangible fixed assets (note 11a) (8) (3)Payments to acquire tangible fixed assets (note 11b) (57) (76)Loss on disposal of tangible fixed assets (note 11b) - 3

(65) (76)

c. Reconciliation of net cash flow to movement in net funds

Increase/(Decrease) in cash in the year (470) (6,160)Net funds at 1 April 1,491 7,651Net funds at 31 March 1,021 1,491

73

18. Commitments on operating leases

At 31 March 2014 the Council had annual commitments under non-cancellable operating leases as set out below:

Land and buildings Equipment2014 2013 2014 2013

£’000 £’000 £’000 £’000Operating leases which expire

within one year 6 - 3 1one to five years 35 25 2 5over five years 189 206 - -

19. Forward commitments2014 2013

£’000 £’000GrantsForward funding - grants formally offered 27,733 28,129

Forward funding at 31 March 2014 represents allocations to organisations and individuals inrespect of projects due to commence in 2014/15 and where payments are expected to be madewithin 12 months.

20. Cerdd Cymru:Music Wales Limited

Cerdd Cymru:Music Wales is a private company, limited by guarantee and registered in Wales.It was incorporated on 1 September 2011 as a vehicle to collaborate with the Welsh MusicFoundation on projects which will develop and improve, both nationally and internationally, theknowledge, understanding, practice and sustainability of the arts and creative industries, andparticularly of music in Wales.

The Council and the Welsh Music Foundation jointly and equally own the company and this jointarrangement is accounted for as a joint arrangement that is not an entity (JANE) in accordance withFRS 9.

During 2011/12, Cerdd Cymru:Music Wales successfully bid and contracted to host WOMEX, theWorld Music Expo, in Cardiff in October 2013.

The investment in Cerdd Cymru:Music Wales represents the Council’s agreed injection of workingcapital. As the Council’s share of net assets is less than the cost of investment the value of theinvestment has been impaired accordingly.

74

£’000

Investment at 1 April 2013 110Investment this year 35Investment at 31 March 2014 145

Impairment at 1 April 2013 110Impairment adjustment this year 35Impairment at 31 March 2014 145

Net value of investment at 31 March 2014 Nil

Net value of investment at 1 April 2013 Nil

The Council’s interest in the income, expenditure and underlying assets and liabilities of Cerdd Cymru:Music Wales is as follows

2014 2013Arts Council of Arts Council of

Total Wales’ share Total Wales’ share£’000 £’000 £’000 £’000

Profit & Loss AccountIncome (note 6) 821 411 148 74Expenditure (note 7) (787) (394) (182) (91)Net incoming/(outgoing) resources 34 17 (34) (17)

Statement of Financial PositionCurrent assets:

Debtors and prepayments (note 13) 47 24 2 1Cash at bank and in hand - - 28 14

47 24 30 15Current liabilities (note 14) (47) (24) (64) (32)Net assets/(liabilities) - - (34) (17)

Reserves - - (34) (17)

21. Financial instruments

Financial Reporting Standard 13: Derivatives and Other Financial Instruments, requires disclosure ofthe role which financial instruments have had during the period in creating or changing the risks theCouncil faces in undertaking its functions.

75

Liquidity risks – In 2013/14 £34,226,000 or 95.6% of the Council’s income was derived from theWelsh Government (2012/13: £34,247,000 or 92.3%). Of the remaining income £1,573,000 or4.4% was derived from investment income and sundry income (2012/13: £2,867,000 or 7.7%).The Council does not consider that its general activities are exposed to any significant liquidity risk,and is satisfied that future income is sufficient to meet its commitments.

Interest rate risks – Cash balances which are drawn down from the Welsh Government to pay grantcommitments and operating costs are held in an instant access, variable rate bank account whichon average carried an interest rate of 0.38% in the year (2012/13: 0.56%). Surplus daily fundsinvested in the Public Sector Deposit Fund on average carried an investment return of 0.34% in theyear (2012/13: n/a). The effective unrestricted cash balance at the year end was £789,000 (2013:£1,065,000). The Council does not consider that its general activities are exposed to significantinterest rate risks.

Foreign currency risk – The general activities of the Council are not exposed to any significantforeign exchange risks.

Cash flow risk – The Council is not exposed to any significant cash flow risks.

22. Corporation Tax

The Council is a charitable Welsh Government sponsored body and as such is exempt fromCorporation Tax under Section 505 ICTA 1988.

23. Post balance sheet event

Authorisation of these financial statements for issue

The financial statements were authorised for issue by the Accounting Officer on the same date asthe Auditor General for Wales certified them.

24. Related party transactions

Public bodies

The Council is a Welsh Government sponsored body.

The National Assembly for Wales/Welsh Government is regarded as a related party. During theyear the Council had no material transactions with the National Assembly for Wales/WelshGovernment apart from grant-in-aid disclosed in the Statement of Financial Activities.

Individuals

Members of Council, staff or other related parties (being close family members) undertook financialtransactions (listed below) with the Council during the year. Transactions with the Council as a Lotterydistributor are recorded in the equivalent note to the separate Lottery Distribution Account.

Council Members

A number of Council Members and/or their close family were members of the Boards ofManagement (or equivalent) or senior employees of organisations who were offered grants or otherpayments from the Council in 2013/14. In all such cases, in accordance with the Council’s Code ofBest Practice, the Member concerned withdrew from any meeting during discussion of theapplication.

Member Organisation Transaction Total Total balanceRole (number) value outstanding

of 31 March 2014

£ £Emma EvansTrustee/Director Creu Cymru Invoice (4) 90,804 Nil

Dr John GeraintBursary recipient Literature Wales Grant (3) 856,915 Nil (family member)

Michael GriffithsMember National Dance Company of Wales Grant (2) 915,000 Nil (until May 2012)

Margaret Jervis Director of Operations Valleys Kids Grant (2) 158,032 3,603

Marian Wyn JonesBoard Member Canolfan Gerdd William Mathias Grant (1) 80,000 Nil

Invoice (1) 150 Nil Member Bangor University Grant (3) 138,105 12,755

Invoice (4) 47,791 Nil

Andrew MillerEmployment Royal Welsh College Grant (2) 72,250 Nil

of Music & Drama

Osi Rhys OsmondEmployment Swansea Metropolitan University Invoice (1) 40,543 Nil

76

77


of 31 March 2014

£ £Richard TurnerChairman South Wales Intercultural

Community Arts Grant (1) 90,000 Nil Employment Royal Welsh College

of Music & Drama Grant (2) 72,250 Nil Business Consultant Jukebox Invoice (1) 4,743 Nil

Alan WatkinBoard Member Clwyd Theatr Cymru Grant (3) 1,912,625 3,478

Professor Gerwyn WiliamsEmployee Bangor University Grant (3) 138,105 12,755

Invoice (4) 47,791 Nil

John C WilliamsEmployee Theatr Iolo Grant (3) 268,605 Nil Employee Royal Welsh College

of Music & Drama Grant (2) 72,250 Nil

Dr Kate WoodwardManagement Committee member Aberystwyth University

(including Aberystwyth Arts Centre) Grant (1) 560,000 Nil Employment Theatr Genedlaethol Cymru Grant (3) 1,117,794 Nil(family member) Invoice (4) 16,890 Nil Third party funding recipient Steve Eaves Band Invoice (3) 2,050 Nil (family member)

78

Staff

A number of members of staff and/or their family were members of the Boards of Management (orequivalent) or employees of organisations who were offered grants or other payments from theCouncil in 2013/14. In all such cases, in accordance with the Council’s Code of Best Practice, themember of staff took no part in any discussion of the application or decision-making meeting.

Staff Member Organisation Transaction Total Total balanceRole (number) value outstanding

of 31 March 2014

£ £Nathalie CamusBoard Member Mostyn Gallery Grant (1) 400,000 Nil (family member) Invoice (3) 214 Nil

Kath DaviesOccasional Royal Welsh College Grant (2) 72,250 Nilunpaid work of Music and DramaEmployment St David’s Hall Grant (1) 65,000 Nil(family member)Scholarship recipient Ballet Cymru Grant (1) 200,000 Ni(family member)

Eluned HâfDirector Canolfan Gerdd William Mathias Grant (1) 80,000 Nil(family member) Invoice (1) 150 Nil

Ffion McCarthyArtist Bryn Fôn Invoice (1) 650 Nil(family member)

Betsan MosesCouncillor Carmarthenshire County Council Grant (1) 37,500 3,750(family member) Invoice (1) 5,312 NilBoard Member Oriel Myrddin Grants (2) 69,500 2,250(family member)

Hywel Tudor Orchard Media Invoice (1) 6,000 NilShort-term freelance work(family member)

Myth Makers, Powys Primary Schools Project © Arts Connection - Cyswllt Celf

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Annex to the Annual Report (not forming part of the financial statements)

General Activities - Grants 2013/14

Annual Revenue

Aberystwyth Arts Centre £560,000Arad Goch £378,250Artes Mundi Prize Limited £147,500Artis Community Cymuned £205,500Arts Care Limited £132,500Arts Connection / Cyswllt Celf £65,000Ballet Cymru £200,000BBC National Orchestra of Wales £844,525Canolfan Gerdd William Mathias Cyf £80,000Chapter (Cardiff) Ltd. £686,000Clwyd Theatr Cymru £1,645,000Clwyd Theatr Cymru TYP £232,850Community Music Wales £105,000Cwmni'r Fran Wen £190,075Dawns i Bawb £85,000Dawns TAN TAN Dance Ltd. £90,000Disability Arts Cymru £170,000Earthfall Dance Ltd. £245,000Ffotogallery £205,000g39 £70,000Galeri Caernarfon Cyf £325,000Glynn Vivian Art Gallery £125,000Grand Theatre Swansea £73,000Hafren £106,680Head for Arts £150,000Hijinx Theatre £160,000Literature Wales £851,915Live Music Now Wales £45,000Llantarnam Grange Arts Centre £85,000Mid Wales Opera £104,000Mission Gallery £95,000Mostyn £400,000Music Theatre Wales £270,000National Dance Company Wales £915,000National Theatre Wales £1,685,000NEW Dance £75,287NoFit State Community Circus Ltd £200,000Oriel Davies Gallery £230,000Oriel Myrddin Trust £47,000Pontardawe Arts Centre £63,000Powys Dance £112,250Rhondda Cynon Tâf County Borough Council £155,000Rubicon Dance £200,000

81

Ruthin Craft Centre £400,000Sherman Cymru £1,228,000Sinfonia Cymru £115,000South Wales Intercultural Community Arts £90,000St. David's Hall £65,000Taliesin Arts Centre £27,000Taliesin Arts Centre £226,000The Riverfront £125,000Theatr Bara Caws £287,556Theatr Brycheiniog £230,000Theatr Felinfach £60,000Theatr Ffynnon £75,000Theatr Genedlaethol Cymru £1,052,942Theatr Iolo £246,225Theatr Mwldan £245,000Theatr na n'Óg £324,850Torch Theatre Company Limited £460,000Touch Trust Ltd. £150,000trac - Music Traditions Wales £80,000Ty Cerdd - Music Centre Wales £328,000Ty Cerdd - Music Centre Wales £10,000Ucheldre Centre £75,000Valley & Vale Community Arts Ltd. £180,000Valleys Kids £122,000Venue Cymru £78,000Volcano Theatre Company Ltd £215,000Wales Millennium Centre £4,000,000Welsh National Opera £4,755,808WJEC CBAC Ltd. £250,000

£28,311,713

Creative Wales Ambassadors

Daws, Martin £25,000Edwards, Sean £25,000Griffiths-Jones, Julia £25,000Gwyn, Richard £25,000Harris, Sean £25,000

£125,000

Dylan Thomas 100 Festival

Bangor University £23,105

82

Carmarthenshire County Council £37,500Chapter (Cardiff) Ltd. £27,000City and County of Swansea £100,000Dylan Thomas Birthplace at 5 Cwmdonkin Drive Ltd £10,200Ffotogallery £30,000Laugharne Literary Festival £80,000Locws International £30,000Oriel Myrddin Trust £22,500Swansea Festival of Music and the Arts Ltd £50,000Taliesin Arts Centre £70,000Wales Theatre Company Ltd £80,000

£560,305

International Opportunities Fund

Arad Goch £2,522Asquith, John £2,359Atkinson, Tiffany £2,100Awst, Manon £2,780Bedwani, Jay £2,577Black, Stephen £5,000Bowen, Robin £1,781Brett, Jessie £1,500Brookes, Michael £2,000CAAPO £450Calan £5,000Chapter (Cardiff) Ltd. £5,640Clifford, Helen £542Colquhoun, Kim £1,057Conn, Gerald £3,000Curtis, Tony £449Cyfnewidfa Lên Cymru £6,380Dance Collective £653Davidson, Glenn £1,652Davies, Rose £890Dubois, Pascal-Michel £1,131Dyer, Kevin £3,472Elfyn, Menna £800Fowler, Dylan £2,413Gegenwart, Beate £790Gilhespy, Tom £700Graham, Alison £1,115Griffiths, Catrin £1,822Gwyn, Richard £4,681Hall, Jenny £2,000

Hawes, James £5,000Hijinx Theatre £880Hopwood, Elin Mererid £2,100Husted, Mary £7,903Huws, Sioned £5,000Jenkins, Paul £2,000Jones, Dylan £2,100Jones, Leona £2,759Keehan, Bridget £1,090Lampeter Festival of World Sacred Music £5,000Lawrence, Wendy £1,250Literature Wales (2 awards) £5,000Mothersuckers £4,975Mr and Mrs Clark £4,926Nash, Mandy £850Olion Byw £3,340Owen, Karen £2,100Owen, Tom £5,000Packham, Ruth £860Palser, Marega £2,980Perry, Samuel £3,894Poetry Wales Press Limited £550Pryce, Guto £5,000Rees, Marc £5,000Rhydderch, Francesca £1,570Rhys, Gruff £5,000Rickard, Erin £1,487Roberts, Stephanie £1,519Rusty Shackle £5,000Shapland, Anthony £3,000Smith, Robert £4,695Sullivan, Steve £1,000Tanja Råman+dbini industries £5,000The Original Print Place £1,640Theatr Genedlaethol Cymru £4,852Theatr Iolo £4,880Theatr Mwldan £5,000Theatr na n'Óg £2,675Thomas, Julia £3,000Thomas, Sian £5,000Wales Arts Review £620Warren, Huw £734Weedon, Cordelia £1,500Wells, Meri £1,055Williams, Gwyn L £758Williams, Jeremy Huw £3,000Williams, Phil £2,647

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Williams, Sue £2,500Winfield, Peter Lawrie £5,000Younan, Sarah (from Igniting Potential fund) £2,000

£221,945

Strategic awards

Action in Caerau and Ely £37,496Bangor University £115,000Cariad Interactive £4,860Celf O Gwmpas £8,500Chapter (Cardiff) Ltd. £325,000Clwyd Theatr Cymru TYP £34,775Creative Skillset Cymru £40,000Cwmbran Centre for Young People £37,724Cwmni'r Fran Wen £38,138engage (National Association for Gallery Education) £39,750Hafod Youth Action Group £32,564Head for Arts £40,000Llangollen International Musical Eisteddfod £16,382Llantarnam Grange Arts Centre £50,000Merthyr Tydfil Housing Association £36,593Mess up the Mess Theatre Company £38,971National Theatre Wales £49,665Oriel Davies Gallery (for Venice Biennale) £91,400Pontardawe Arts Centre £24,958Redhouse £24,300Royal Welsh College of Music and Drama £72,250Span Arts Ltd £34,724Swansea City Opera & The Opera School Wales £38,220Swansea YMCA £39,409Theatr Genedlaethol Cymru £60,000Theatr Iolo £17,500UCAN Productions £28,928Valleys Kids £36,032Wales Millennium Centre £60,000Wales One World Film Festival £16,200Whitehead- Ross Education and Consulting Ltd £32,314Youth of Creative Arts £29,650

£1,551,303

Total Grants Offered £30,770,266

84

85

Annual revenueInternational Opportunities FundDylan Thomas 100 Festival

Strategic awardsCreative Wales Ambassadors

Grants by Type

What did our grants support?

Value of grants No of grantsGrants to support:Theatres and arts centres £7,039,680 22.88% 16Theatre production and presentation £6,733,498 21.88% 9Opera £5,129,808 16.67% 4Dance £1,922,537 6.25% 9Visual & applied arts £1,804,500 5.86% 10Arts and Young People £1,622,250 5.27% 7Music £1,502,525 4.88% 7Community arts £1,095,000 3.56% 9Literature £851,915 2.77% 1Dylan Thomas 100 Festival £560,305 1.82% 12Circus & carnivals £290,000 0.94% 2International Opportunities Fund £221,945 0.72% 87Disability arts £170,000 0.55% 1Arts & health £150,000 0.49% 1Creative Wales Ambassadors £125,000 0.41% 5

Other grants:Strategic awards £1,551,303 5.04% 34

£30,770,266 214

92.01%7.99%

0.72% 0.41%

1.82%

5.04%

Contents

Annual Report:

• Trustees’ Annual Report 87

• Strategic Report 98

o Environmental report 120

• Remuneration report 124

• Statement of Council’s and the Accounting Officer’s responsibilities 129

• Annual Governance Statement 130

The Certificate and Report of the Comptroller and Auditor General to the Houses of Parliament and the Members of the National Assembly for Wales 138

Financial Statements:

• Statement of Comprehensive Net Expenditure 140

• Statement of financial position 141

• Statement of cash flows 142

• Statement of changes in equity 142

• Notes forming part of the financial statements 143

Annexes to the Annual Report (not forming part of the financial statements):

• National Lottery Policy Directions 156

• Grants offered 159

Lottery Distribution Account

87

Annual Report for the year ended 31 March 2014Trustees’ Annual Report

Reference and administrative details

Trustees

Council Members who served since 1 April 2013 were:




6 5 5 0

Professor Dai Smith, (c) 6 Committee ChairChairman n/a

Dr Kate Woodward, (d) 3Vice-chairman

Emma Evans (a) 5 Committee Chair(to 31 March 2014) (to March 2014)

5

Dr John Geraint (a)(c) 4.5 Committee Chair n/a(from April 2014)

1/1

Michael Griffiths OBE (a) 4.5 3.5

Melanie Hawthorne 5

Dr Lesley Hodgson (a) 3.5 0/1

Margaret Jervis MBE DL (c)(v) 4.5 n/a

Marian Wyn Jones (i)(iii) 4

Andrew Miller 6

Osi Rhys Osmond (d) 5

Richard Turner (ii)(iv) 5

Alan Watkin (a)(b) 6 (to December 2013) 53/4

Professor Gerwyn Wiliams (b) 3 Committee Chair5

John C Williams (a)(b) 6 (to December 2013) 24/4

88

1 In the absence of guidance from the Welsh Government in respect of the Chair’s remuneration and Chief Executive’s salary, the Remuneration Committee did not meet during 2013/14.

(a) Member of Audit Committee(b) Member of Capital Committee(c) Member of Remuneration Committee(d) Member of Wales at the Venice Biennale of Art Committee

For at least part of the period covered by this report Council members (identified by the number in brackets aftertheir name in the above list) also served as Members or senior employees of the following public bodies:

(i) Betsi Cadwaladr Health Board(ii) Monmouthshire County Council(iii) S4C(iv) University of Wales(v) Wales Council for Voluntary Action




6 5 5 0

Attendance of independent Committee members:

Gareth Jones (a) 5

Phillip Westwood (a) 4

Jonathan Adams (b) 2/3(to October 2013)

Mark Davies (b) 4

Roland Wyn Evans (b) 4

Alan Hewson 1/1(appointed March 2014) (b)

Janet Roberts (b) 1/3(to October 2013)

89

Chief Executive

Nicholas Capaldi

Offices

Mid and West Wales region:

The Mount18 Queen StreetCarmarthenSA31 1JT

Auditor

Comptroller and AuditorGeneral157-197 Buckingham PalaceRoadLondonSW1W 9SP

Bankers

The Co-operative Bank16-17 High StreetCardiffCF10 1AX

North Wales region:

Princes Park IIPrinces DriveColwyn BayLL29 8PL

Internal auditors

Deloitte LLP5 Callaghan SquareCardiffCF10 5BT

South Wales regionand national office:

Bute PlaceCardiffCF10 5AL

Solicitors

Geldards LLPDumfries HouseDumfries PlaceCardiffCF10 3ZF

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Structure, governance and management

The Council is a Welsh Government sponsoredbody. The Council’s lottery distribution activitiesare not a devolved function so these financialstatements are, therefore, laid before bothParliament and the National Assembly forWales, and are audited by the Comptroller andAuditor General under section 35 of theNational Lottery etc. Act 1993 (as amended).

The Welsh Ministers appoint the Members of theArts Council who normally serve for a period ofthree years and may be re-appointed for afurther three year period. During the periodunder review the Council met six times.

Members’ induction and training

New Members undergo an inductionprogramme to brief them on their legalobligations under the Royal Charter and charitylaw, the Code of Best Practice, the Committeeand decision making processes, strategic plansand funding issues. During the induction daythey receive presentations from the Chairman,Chief Executive and Director of Finance andResources. Members also have the opportunityto meet key employees. As well as the RoyalCharter and Code of Best Practice, Membersare provided with copies of the most recentAnnual Report and Accounts, the currentWorking Budget, and the Charity Commission’spublications ‘The Essential Trustee’ and ‘TheIndependence of Charities from the State’.Seminars and additional training are arrangedas necessary to inform the formulation ofstrategies and policies.

Council Members reserve to themselves matterssuch as decisions of policy, the Corporate andOperational Plans, the setting of the annualbudget, the annual allocation of grants torevenue-funded organisations, and majoralterations to the terms and conditions ofservice for staff.

Details of the Council’s structure, accountability,internal control framework and riskmanagement arrangements are set out in theAnnual Governance Statement, later in thisReport.

The Council is required to account separatelyfor its general and lottery distribution activities.Under separate Accounts Directions theaccounting treatment of general and lotterygrants differs significantly so, with due regard toparagraph 359 of the Charity Commission’sStatement of Recommended Practice (revised2005), in the judgment of the Trustees theproduction of a consolidated account isinappropriate as it would not provide a trueand fair view of the application of the Council’sresources.

Lottery distribution

The National Lottery etc. Act 1993 (asamended) set up the National Lottery (‘Lottery’)in order to raise funds to support good causesin the “arts, sport, national heritage projects,charitable projects, and projects to mark themillennium”. The Council is one of the bodiesresponsible for the distribution of these funds.

Under the National Lottery etc. Act 1993 (asamended) the Council is required to prepare astatement of account for its lottery distributionactivities in the form and on the basisdetermined by the Secretary of State forCulture, Media and Sport. The National LotteryAccounts Direction requires that all costsproperly attributable to National Lotteryactivities should be funded from Lottery income.The Council is required to account separatelyfor its general activities.

The Capital Committee advises Council in thedevelopment of policy on capital developmentand makes recommendations about individualcapital grant applications. Independent externalassessors were employed to advise on all

91

Lottery capital applications for £100,000 ormore. Council takes the final decisionsconcerning the award of Capital grants over£250,000.

The Council has delegated Lottery funding to anumber of organisations:

• to Ffilm Cymru Wales (formerly known as theFilm Agency for Wales) – for film;

• to Nesta – for digital research anddevelopment projects;

• to BBC Cymru Wales (from October 2013) –for the Horizons/Gorwelion scheme, tosupport emerging contemporary music artists(no funding was advanced during 2013/14);and

• to Literature Wales (from April 2014) – forwriters’ bursaries.

The terms of the external delegations are set outin formal agreements and satisfy the conditionsof the Council’s Statement of FinancialRequirements.

Human resources

Equal opportunities

The Council is committed to a policy of equalityof opportunity in its employment practices. Inparticular, the Council aims to ensure that nopotential or actual employee receives more orless favourable treatment on the grounds ofage, disability, ethnic or national origin, gender,marital or parental status, nationality, politicalbelief, race, religion, or sexual orientation.

The Council is on the National Register ofDisability Symbol Users, reflecting itscommitment to ensure that appropriate facilitiesare available for disabled employees.

Sickness absence

During 2013/14 staff sickness absence totalled 587 days (2012/13: 364 days). Thisrepresented 2.98% (2012/13: 1.97%) based on260 working days, including 1.67% (2012/13:0.16%) as a result of long term absence (over28 days).

Employee communication

The Council recognises the trade union Unite,with which it has established a proceduralagreement; representatives of managementand union meet regularly to discuss matters ofcurrent concern. Additionally, regulardepartmental meetings are held and Directorsare required to report to their staff on mattersdiscussed at Council and at the SeniorManagement Team meetings.

Pension scheme

Most employees are members of the ArtsCouncil Retirement Plan 1994. The fund is a defined benefit scheme. It is also a multi-employer scheme so the Council is unable toidentify its share of the underlying assets andliabilities. In accordance with the Council’saccounting policies, the scheme has thereforebeen accounted for as if it were a definedcontribution scheme, in accordance with IAS 19.

The Council also introduced a definedcontribution scheme, The People’s Pension, asan alternative option to meet the needs of AutoEnrolment legislation. The small number ofeligible employees that were not members ofthe ACRP were auto-enrolled into the definedcontribution scheme as of 1 May 2014, theCouncil’s official staging date. The scheme isaccounted for in accordance with IAS 19.

Payment of trade and other payables

Under the Late Payment of Commercial Debts(Interest) Act 1998, and the UK Government's

Better Payment Practice Code, the Council isrequired to pay suppliers' invoices not in disputewithin 30 days of receipt of goods or services orvalid invoice, whichever is the later.

The Council aims to pay 100% of invoices,including disputed invoices once the dispute hasbeen settled, in line with these terms. During theyear ended 31 March 2014, the Council paid95% (2012/13: 94%) of all invoices within theterms of its payment policy. Since November2008 the Council, in line with WelshGovernment policy, aims to pay invoices within10 days. For 2013/14 85% (2012/13: 72%) ofinvoices have been paid within 10 days. It is notanticipated that our policy will alter in futureyears.

Financial risk and capital management

The Council mainly holds financial instrumentsto finance its operations, for example trade andother receivables and trade and other payables,and cash and cash equivalents arising directlyfrom its operations. The financial riskmanagement of exposures arising from tradingfinancial instruments, primarily trade and otherreceivables and trade and other payables, isthrough a series of policies and procedures.These risks are managed as follows:

Liquidity risk - The Council does not considerthat its Lottery Distribution function is exposed toany significant liquidity risks, and is satisfiedthat the balance within the National LotteryDistribution Fund and projected future Lotteryproceeds are sufficient to meet its hardcommitments.

Interest rate risk - Cash and cash equivalentsbalances, which are drawn down from theNational Lottery to pay grant commitments andoperating costs, are held in instant accessvariable rate bank accounts which on averagecarried an interest rate of 0.38% (2012/13:0.56%) in the year. Surplus daily funds investedin the Public Sector Deposit Fund on average

carried an investment return of 0.34% in theyear (2012/13: n/a). The year-end cash andcash equivalents balance held by the Councilwas £1,308,000 (2013: £1,739,000). TheCouncil does not consider that its LotteryDistribution function is exposed to significantinterest rate risks.

Foreign currency risk - The Council is notexposed to any significant foreign exchangerisks.

Cash and cash equivalents flow risk - TheCouncil is not exposed to any significant cashand cash equivalents flow risks.

Personal data related incidents

The Council has controls and policies in placeto ensure data integrity. IT systems ensure thatthe physical security of data is tightly controlled.As far as we are aware, no loss of dataoccurred during the period under review.

Audit

So far as the Accounting Officer is aware, thereis no relevant audit information of which theCouncil’s auditor is unaware, and he has takenall the steps that he ought to have taken asAccounting Officer in order to make himselfaware of any relevant audit information and toestablish that the Council’s auditor is aware ofthat information.

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Plans for future periods

Our priorities for 2014/15 are set out in the following table:

Creating the environment for the arts to flourish

What are we trying to achieve?We want to see our best artists and organisations able to create their best work and to sustainthemselves through the quality of their activities. Priorities will be our investment in our revenuefunded (RFO) portfolio, support for the individual artist and festivals and major events thatsignificantly raise the profile of the arts.

Goals for 2018


• 75% of the RFO portfolio is designated as‘low risk’

• 25% increase in average annual earnings of individual artists

• completion of Council’s five year Capitalstrategy

Targets for 2014/15

• Delivery of 5 modules in RFO DevelopmentProgramme (Pension auto-enrolment; Access;Governance; Finance; Apprenticeships andInternships)

• Introduction of Sustainability and Resiliencescheme

• Action plan for implementation Support for Individual Artists report

• Completion of Pontio capital project

• At least 4 Artist Residencies established

• Delivery of Dylan Thomas 100 Festival

• Terms of Reference for next Investment Review agreed

Increasing the value of international cultural exchange to the arts in Wales

What are we trying to achieve?We want to enable leading artists and arts organisations in Wales to realise their internationalambitions by expanding horizons, encouraging potential and connecting with inspiring partnersand markets. In an increasingly globalised world we want the arts in Wales to be able to operateeffectively in the global market place.

Goals for 2018

• International Opportunities Fund (IOF)leverages a 3:1 return on investment

Targets for 2014/15

• Delivery of International Opportunities Fund

• New partnership agreement with BritishCouncil

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Goals for 2018

• 10 artists from Wales showcased in at least 5 international events under the “Wales in…”brand

• 2 major international arts events secured andhosted in Wales

• Participation in at least 2 European fundedtransnational projects

• Increased audience numbers for Cymru ynFenis/Wales in Venice 2015 and 2017

• Artists featuring in/leading on 2 WelshGovernment international delegations a year

Targets for 2014/15

• Engagement agreed with Wales’ CreativeEurope Desk

• Publication of WOMEX 2013 evaluation

• Strategy agreed for Patagonia 2015

• Wales artists represented at 1 majorshowcase/network event

• At least 1 project delivered in partnership with Welsh Government

Finding new opportunities, ways and places for people to enjoy and take part in the arts

What are we trying to achieve?We want to encourage as many people as possible in Wales to enjoy and take part in the arts. It’s not just about defending and protecting what already exists. We want to see the arts activitiesthat we support reaching out to a wider cross section of the population of Wales – in new ways andin new places – to people who’ve previously experienced barriers to attending and taking part inthe arts.

Goals for 2018

• A 5 percentage point increase in attendanceand participation amongst C2, D and Esocial group categories

• A 5% increase in funding to the 10 localauthorities currently receiving the lowest levelof per capita Lottery funding

• 10% increase in audiences for Arts Councilfunded National Touring projects

Targets for 2014/15

• Delivery of at least 3 Creative Steps, 3 OurSpace and 3 Ideas: People: Places exemplarprojects

• At least 2 Welsh commissions for The Space

• Implementation of Disability TicketingScheme

• Delivery of 2nd year of Family ArtsProgramme

• 580 Night Out events, of which at least 130are in Communities First areas

• Partnership projects established with DiverseCymru and Voluntary Arts Wales

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Developing the creativity of children and young people

What are we trying to achieve?We want to see more children and young people across Wales actively involved in high qualitycreative activity. Whatever the circumstances that they face, we want all young people to have theopportunity to develop their talents (including to an advanced level of attainment).

A key priority will be working with the Welsh Government on the implementation of the Arts &Education Review.

Goals for 2018

• 5% increase in the number of children andyoung people in our most deprivedcommunities who are attending orparticipating in the arts

• Publication of evidence demonstratinginvolvement in creative activity and a rise inlevels of educational attainment

Targets for 2014/15

• Establishment of Momentum programme

• Agreement with Welsh Government on actionplan for implementation of Arts & EducationReview

Encouraging innovation, resilience and sustainability

What are we trying to achieve?We want to deliver a strategy for the Arts Council, and the arts in Wales, that encourages innovationand entrepreneurship and that enables the work of our artists and arts organisations to becomemore resilient and sustainable.

Financially resilient will be key for the future. However, our definition of sustainability is wide rangingand extends to environmental, social and economic well-being.

Goals for 2018

• Becoming a signatory to the SustainableDevelopment Charter


• RFO portfolio has achieved a 10 percentagepoint reduction in the level of its carbonemissions

• Media partnerships with BBC and S4C havebeen renewed

Targets for 2014/15

• Completion of mapping audit ofSustainability projects in Wales

• Processes for measuring and monitoringenvironmental targets agreed with the RFOportfolio

• Implementation of BREEAM ‘excellent’standards for all new capital projects andBREEAM ‘very good’ for refurbishments

• Action plans agreed for BBC and S4Cpartnerships, with at least 4 projectssupported

• Evaluation of Nesta Research & Developmentfund

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Protecting and growing the economic base for the arts in Wales

What are we trying to achieve?The arts in Wales are sustained by a range of different organisations contributing money, resourcesand expertise. However, funding (especially in the public sector) is being squeezed, with our localauthorities in particular facing increasing difficulties in maintaining current levels of funding. Ourpriority during 2014/15 will be an advocacy campaign designed to protect local authorityinvestment in the arts.

Goals for 2018

• Local authority income is maintained at alevel comparable to 2013/14

• Value of Collectorplan loans increases by15%

• Value of private sector income to the Arts inWales increases by 20%

• Achieve 3:1 return on Arts Council investment

• Secure level of European funding equivalentto 3% of Government grant-in-aid

Targets for 2014/15

• Commission audit of local authorityinvestment in the arts

• Develop advocacy campaign for localauthorities

• Value of Collectorplan loans increases by 5%

Demonstrating the value of the arts

What are we trying to achieve?We want to promote a positive and engaging view of the arts in Wales, making sure that the artssector and the wider public in Wales understands what we, the Arts Council, are trying to achieve.

Goals for 2018

• 5% increase in media coverage of the Arts in Wales

• 10% increase in public recognition of the Arts Council

• 25% increase in the number of ‘hits’ on our website

• 5% increase in attendances at our AnnualConference


Targets for 2014/15

• At least 5 major press/media campaigns

• Publication of Advocacy toolkit


• Develop new Arts Council media and webplatforms

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Making the Arts Council and effective and efficient public body

What are we trying to achieve?As a public body we have a responsibility to create a strong, confident organisation providingservices that are relevant and useful. We provide professional services across a range of disciplines.As well as aiming for quality in the delivery of these services, we’re committed to doing so in wayswhich reduce cost and recognise our responsibility to become a more environmentally sustainableorganisation.

Goals for 2018

• Grant in aid running costs increase by nomore than 5% of 2013/14 levels

• Transaction processing (grant payments andpayments to service providers) consistentlymeet targets

• Maintain Investors in People rating

• Levels of staff absence in top quartile of peergroup WGSBs

• Achieve 14001 standard for EnvironmentalManagement of Events



• 70% satisfaction rating by Stakeholders andClients

Targets for 2014/15

• £50,000 reduction in grant in aid runningcosts



• Review of the management of our brand



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Objectives, activities, achievements andperformance for the public benefit

The Council’s chartered objects are:

(a) to develop and improve the knowledge,understanding and practice of the arts;

(b) to increase the accessibility of the arts tothe public:

(c) to advise and co-operate with OurNational Assembly for Wales, Departmentsof Our Government, local authorities, TheArts Councils for England, Scotland andNorthern Ireland, and other bodies on anymatters concerned, whether directly orindirectly, with the foregoing objects; and

(d) to carry out the objects through themedium of both the Welsh and Englishlanguages.

The Council’s main purpose is to support anddevelop the arts in Wales for the benefit ofpeople throughout Wales. The principal way inwhich Council seeks to fulfil this purpose is bythe formulation of arts strategies, research, andproviding recurrent and one-off grants toorganisations and individuals within a strategicand developmental context. Such grant makingis backed up by a process of monitoring andassessment to ensure that public money is usedeffectively for the intended purposes. TheCouncil also manages a range of non-grantactivities and services, often in partnership withlocal authorities and others.

Main objectives for the year

The Council’s strategic priorities for 2013/14are set out in the table below according to ourCorporate Plan themes, alongside keyachievements made in relation to eachoperational target during the year:

Strategic Report

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Supporting the best in the creation of great art -

What will success look like?We are passionate about the arts. We are ambitious for their success. At their best – and it’sthe best we’re interested in – the arts have the power to excite, inspire, move and challenge.We want to shape an environment for our artists and organisations in which they can createtheir best work. We want the people of Wales to be able to enjoy and take part in the best thatour nation has to offer. And we believe that the best experience of art only happens when thischord is struck, when art connects. That’s our definition of great art. Making art, sharing art,being a part of it, in the community, in performance, off the page, in a space, in lives – this iswhen art works, inspirationally, individually, collectively.

Of course, we can’t guarantee that every artist or arts organisation that we support will alwaysbe producing work at the top of their game. However, we can help to create an environment inwhich ambitious, exciting and compelling work becomes a more likely outcome.

1. Produce a newcorporate strategy for arts development(Creativity and the Arts)

2. Deliver successfulCymru yn Fenis/Wales in Veniceproject with featuredartist Bedwyr Williams

3. Contribute to theplanning,development anddelivery of asuccessful DylanThomas 100 Festival during 2014

• Consultation on draft proposals during Q1

• Publication of newStrategy during Q2

• First phase ofimplementation duringQ3-4

• Number of visitors by endof Q3 exceeds figure for2011

• Extent of media coverageexceeds previous years

• Specific identifiabledevelopmentopportunities for thevisual arts sector in Wales

• Attendance at SteeringGroup meetings

• Published programme of events by Q2

Council approved the latest draft forconsultation in December.

Consultation ran until 30 April 2014.

The Exhibition closed on 23 November2013 with final attendance figures ofapproximately 23,000. The Wales pavilionattracted almost 30,000 visitors in 2011.

A full evaluation report on the project wastaken to Council in February together withthe proposed strategic approach to Cymruyn Fenis/Wales in Venice in 2015. Thesewere approved by Council and a budgetallocated.

A prospectus has been prepared and theprogramme of activity has been launchedand is underway.

We will take the lead in co-ordinating PRopportunities for arts events throughout2014 and will continue to monitor thefunded projects and their staged contributionto the Festival throughout the year.


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4. Support thedevelopment of our NationalAdvisers (NAs) andtheir engagementwith our work

5. Ensure nationwidemonitoring of thequality of ourrevenue-fundedorganisations(RFOs)

6. Deliver a full yearprogramme ofgrant awards toindividuals andorganisations

• Development of an online community forNational Advisersincluding six monthlyNewsletter

• Two workshop/briefingevents held during2013/14

• Two quality monitoringreports by NationalAdvisers for each RFO

• A minimum of two qualitymonitoring reports by Arts Council staff for each RFO

• Officer overview reportfor each RFO

• Increased participation in Quick Review initiative

• Administration of grantsmanagement processes

• Delivery of Creative Steps programme

• Delivery of CreativeWales awards andCreative Walesconversations

Discussion groups were held, informingthe drafting of the Strategy: Inspire: Ourstrategy for Creativity and the Arts.

During 2013/14 we have not been able toprogress Hwb (intranet) access for NAs.This consideration will be factored into asubsequent work programme as Hwbdevelops as a resource.

Work is underway in consideration of therecommendations contained in theAdvisory report by our internal auditors,presented at the end of 2013/14.

Appraisals have been commissioned fromNational Advisers.

At the end of the year we completed 152Quality Appraisals which equated to 53%of our annual quality monitoring target.Officer reports were significantly behindtarget. A radical overhaul of QualityAppraisal will be necessary to correct thisposition in 2014/15.

We commissioned an external evaluationof the effectiveness of the Guidelines andwill be considering a review of the wholegrant process and Guidelines to ensurethat they reflect Creativity in the Arts andpossible incorporate a reduction in thenumber of funding programmes.

We are still progressing work on the nextstage of Creative Steps and havecontinued to make awards with two majorprojects reaching a significant stage ofdevelopment in the last quarter.

Creative Conversations, rounded off withan award ceremony for the Creative WalesAwards took place in February. The eventwas well received by attendees.

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7. Deliver programmeof projects andservices that assistartists and artsorganisations toexploit theinternationalpotential of theirwork

8. Use our mediacontacts to promotethe arts in Wales

• Develop successorprogramme to Creating2013

• Year 3 of Wales ArtsInternational/BritishCouncil partnership andnegotiate next phase ofcollaboration

• Lead on WOMEX 2013

• Deliver digi-music tourismproject

• Participate in Europeannetworks and futureproject developments

• Engage with thedevelopment of CreativeEurope and other futurestrands of EuropeanFunding

• Use Wales European ArtsForum provide intelligenceand guidance for artsorganisations seekingEuropean funding

• Work on showcasing (e.g. Edinburgh, SxSW)

• Strategic work with WelshGovernment in prioritycountries

• Deliver funding throughthe InternationalOpportunities

• Level of coverage and airtime received for the artsincreases

We are continuing to deliver across a broadrange of international activity and PRopportunities are discussed continuouslywith the WAI team to ensure maximumexposure is achieved.

The next WAI 5 year strategy is beingdrafted in line with Creativity and the Arts.The new partnership agreement with BritishCouncil is still in progress and will beagreed in 2014/15.

We will be working with WelshGovernment’s Department for EconomyScience & Transport to establish the bestsolution for delivering the Creative EuropeFunding programme in Wales. We haveagreed to look at a secondment in2014/15.

85 artists have been supported to datethrough the International OpportunitiesFund.

WOMEX 13 took place in October and wasa resounding success as an event. Theheadline achievements were reported toCouncil in December. The targets for theevent have been met or exceeded. As theevent was entered into largely for itspotential to have legacy, the team is nowengaged in evaluation and the wrap up ofthe project which will extend into the newfinancial year.

The Communications Strategy has beenapproved by SMT. Media opportunities arecontinuously explored. Monthly meetingswith media contacts remain valuable.


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9. Deliver effectivepresence atexternal events,promoting andsupporting the artsin Wales

• Successful presence atNational Eisteddfod, UrddEisteddfod and Hay

The National Eisteddfod presence wasdeemed a success. More visitors attended Y Lle Celf than in previous years.

WOMEX 13 took place in October and wasa resounding success. A full evaluationreport was presented to May 2014 Council.

Encouraging more people to enjoy and take part in the arts –

What will success look like?Levels of arts attendance and participation are currently high in Wales. But as averagehousehold income reduces, attendance and participation figures will come under pressure.However, it’s not just about defending and protecting what already exists. We want to see thearts activities that we support reaching out to a wider cross section of the population of Wales –to people who’ve previously experienced barriers to attending and taking part in the arts.

10. Work with theWelsh Governmentto support theimplementation ofthe findings of theArts and EducationReview

11. Address therecommendationson Participation inthe Arts fromNational AssemblyCommunities,Equalities andLocal GovernmentCommittee

• Action Plan agreed

• Findings of RFO mappingexercise published by Q2

• Design and produce finalreport for WelshGovernment

• Prepare strategicresponse to Committeereport by Q1, reportingon progress

• Publish information, andprovide training, onalternative sources offunding

• Develop a strategy toincrease levels of fundingfrom business

• Design an action researchprogramme forincreasing participatoryactivity in partnership witha Communities First Hub

Welsh Government’s response has beenreceived. The Government has accepted all of the report’s recommendations andidentified funds for their implementation.Arts Council is working with WelshGovernment on plans for implementation.

Action Plan agreed. Ideas People Places is apilot programme that will include looking atnew models for community focused work.

Work is progressing around new businessmodels for the arts sector broadly, but wedo not anticipate test driving new modelsthis year.

We are working closely with ArtsWorksCymru and supported a very successful ‘allWales’ dissemination and networking event.Paul Hamblyn Foundation has agreedfurther funding and we are now indiscussion about developing ourpartnership.

The proposed action research programmedid not go ahead.

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12. Implement ourstrategies for YoungCreators and ChildPoverty

13. Implement ourStrategic EqualityPlan

14. Promote our WelshLanguage Schemethrough theimplementation ofthe 15 key targetsin our WelshLanguage ActionPlan for 2013/14

15. Work with ourportfolio ofpresentingorganisations(venues andgalleries) toincrease anddiversify theiraudiences

• Pilot new business modelsfor promoting communityarts

• Implement Action Plans




• Equality ImpactAssessmentscompleted/updated asappropriate



• Minimum of 4 actionresearch projects during2013/14

• Development by Q4 of aticketing scheme fordisabled people in all ourRFO presenting venues

• Trial of new framework,during 2013/14, forevaluating impact on

Following discussions with Communities Firstthe agreed focus for the work in this year isarts and young people.

Family Arts campaign has progressed in linewith the programme. The next phase of theFestival work has commenced.

We achieved 4 of the 6 key areas of ourStrategic Equality Plan 2013/14.

Whilst we made some progress against theobjectives under Internal Training andPartnerships we did not fully achieve allactions in these areas. Work on these willcontinue into 2014/15.

Diverse Cymru are close to completing theirwork on developing the Equalitiesguidelines/toolkit and we have agreed aprogramme of training and development forArts Council staff.

The 2013/14 Action Plan was published inApril 2013 and arrangements in placethroughout the year for its quarterlymonitoring and reporting of progress to theWelsh Language Monitoring Group andCouncil.

We achieved our actions against all 3strategic areas of the plan.

The Welsh Language Commissioner hasapproved our Welsh Language Annual Report 2012/13.

We approved a second stage proposal fromthe Red House for the Merthyr based projectin Q3 and, in Q4, a second stage proposalfor Llantarnam Grange.

We appointed Creu Cymru to undertake thesecond stage of the Disability Ticketingscheme and work commenced in Q4.

The Wellbeing research with venues wasconcluded and a draft report shared withACW. A final report is expected in May 2014.


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16. Support methodsof engaging 'hardto reach' youngpeople through thedelivery of theSplash Arts andReach the Heightsprogrammes

17. Expand theDeveloping Talentprogramme ofactivity

18. Promoting highquality touringactivity in localcommunitiesacross Wales,especially throughthe work of the ArtsCouncil's NightOut service

wellbeing of attending the arts

• Increase in levels ofengagement andparticipation across ourRFO portfolio

• Development of newsuccessor funding scheme

• 500 young peoplesupported

• 20 projects supportedacross Wales

• Develop child povertyproject in partnership withanother cultural body

• Number of young peopleprogressing on to furthereducation, training andemployment

• Identifying opportunitiesfor further Europeanfunding

• Criw Celf visual artsinitiative rolled out by Q2across local authorities inSouth East and SouthCentral regions

• National Youth Arts Wales’targets achieved by Q4

• Through our Night Outservice deliver 550 events,of which 150 will be inCommunities First areasand 12 will be YoungPromoters events

• Develop initiatives toincrease the availability

Figures for the first 6 months of the yearshow RFO’s delivered a total of 9,090 artsevents during the six month period whichgenerated attendances of 1.82 million.38,429 participatory art sessions weredelivered, with 554,612 attendances modeto these workshops. Figures for the final 6months will be collected in May 2014 andan annual summary published in July.

Significant progress was made during Q3with a successful application toCommunities First for partnership fundingfor an interim pilot project.

We received 27 project proposals andoffered funding to 14, all of which were upand running before the end of Q4.

We have not progressed work arounddeveloping a partnership project withanother cultural body.

We are in discussion with potential partnersregarding a European bid to build on thework developed through Momentum.

Criw Celf has been successfully rolled out in South east and South Central.

An evaluation will be commissioned in thenew financial year.

During 2013/14 we delivered a total of 532Night Out events, 114 (21.4%) of whichwere in Community First areas and 141(26.5%) were delivered through the mediumof Welsh.

There have been 28 Young Promoter events,6 of which were delivered in partnershipwith Gwent Police.

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19. Work with specialist agencies(Voluntary ArtsWales, DisabilityArts Cymru, DiverseCymru, StonewallCymru) to providesupport that helpsus to deliver ourstrategic objectives

of “family friendly” activity

• Service level or fundingagreements in place byQ1

Total demand for the scheme is downslightly mostly due to a drop of workingwith community first teams due to its re-organisation.

Web site ongoing development but delaysdue to programming issues – launchAutumn 2014.

9 tours achieved of which 6 were familyshows.

We are working with Diverse Cymru on twomajor projects and we have commissionedVoluntary Arts Wales to undertake aprogramme of work in 2014/15.

Growing the Arts Economy –

What will success look like?We want to see a financially resilient arts sector that is not wholly dependent on public subsidy.With the value of public subsidy for the arts decreasing in real terms, such dependency can onlyprove an impediment to innovation, development and sustainability.

The Arts Council will use all its powers of advocacy to encourage the widest possible range ofpublic and private sector agencies to invest in the arts. However, we believe that success willlargely depend on the extent to which artists and arts organisations are able to build their ownbusiness capability and exploit the full value of their artistic worth.

As we encourage growth, we must also encourage sustainability. Ways of working that squanderresources rather than enhance and protect them run counter to the spirit of the time. We need toaddress the demands of the present without compromising future generations’ economic, socialand cultural well-being.

20. Agree a new threeyear strategy forthe Arts Councilinvestment in thearts

• Review of RFO portfolio

• New funding allocationsto RFO

• appropriate strategicfunding streams andbudgets in place

A two year strategy was agreed by Councilin December 2013. The shorter timeframereflects the funding timetable of WelshGovernment and the date of the nextAssembly elections in Wales.

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21. Encourage ourportfolio of RFOsto become moreresilient andsustainable(culturally,organisationallyand financially),and provideinformation on theportfolio'sperformance

22. Develop Ideas,People, Places, achallenge fundinvesting in arts-led regenerationprojects thatpromote art in thepublic realm

• Number ofperformances/exhibitions/events and audience/participant numbers

• Geographical distributionof activity

• Publish 2011/12 RFOAnnual Review Meetingreports by Q2

• Hold 2013/14 AnnualReview Meetings duringQ4

• Publish an annual RFOperformance report during Q2

• Provide programme ofRFO Developmentinitiatives

• Policy document published during Q1

• Small scale challenge fund established forindividual artists wantingto work in the publicrealm during Q1

• Minimum of 4 public artresidencies underwayduring 2013/14

• 4 projects commissionedand underway by Q4

We are continuing to deliver against all ourtargets in relation to the RFO survey andpublish our key findings.

Last year’s ARM was completed althoughwe note that some meetings were notundertaken. Changes have been made tothe 2014/15 procedure to help ensure thatthis does not recur.

ARM meetings for 2013-14 took placethroughout February and March and thedeadline for reports was April 4th.

The Annual RFO Performance report hasbeen delayed due to the very fluid situationregarding local authority funding. However,data has been released to our clientportfolio regarding audience andparticipation figures and financialperformance.

Memorandum of Understanding complete.

We have tendered and procured a shortterm contract to compile the web resources.

29 applications were received forconsideration for the research anddevelopment phase. A sub-group of theCapital committee has been set up to assessthe applications. 12 projects were selectedto progress to the second stage ofassessment. The deadline for this secondphase is July 2014.

We have appointed a Programme Managerto coordinate the programme including theassessment process. The PM has alsoattended inception meetings with thesuccessful projects and will offer specialistadvice and support to them in the interim.

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23. Deliver our Lotterycapital priorities

24. Initiate aprogramme ofactivity thatencourages thedevelopment ofdigital capacity inthe arts

25. Re-launch theCollectorplanscheme

• Monitor the progress ofour two major capitalprojects - Pontio (Bangor)and Glynn Vivian(Swansea)

• Monthly reports (which are shared with WelshGovernment)

• All appropriate legalagreements are in placeand followed

• Advocacy/best practiceshowcase events

• Digital R&D Fundestablished in associationwith Nesta, with firstcohort of projectssupported by Q1

• Digital ProducersDevelopment fundestablished

• An Action Plan ispublished

• New website developed

• Media campaignsupporting relaunchduring 30th anniversaryyear

4 specialists (including architects andpractitioners) in this area of work have beenapproached to join the list of NationalAdvisers to assist the decision making groupselect the best projects. This is still ongoingin order to find suitably qualified assessorsand monitors but the sub-group fromCapital Committee was the decision makinggroup for the first stage and will makerecommendations to Council for thesecond.

A Deed of Covenant with Bangor Universityhas been finalised and signed by all parties.

Regular steering group meetings have beenattended by officers. Officers are alsoinvited to attend specific project steeringgroups, such as Myrddin and MissionGallery.

12 digital producers have completed thecourse.

Second round of the digital R&D fundclosed in January. Two further projects weresupported in addition to the four supportedthrough the initial round.

We are awaiting the new financial creditregulations. New website is currently underdevelopment.

A successful press campaign was deliveredaround the Collectorplan 30th birthday inDecember.

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26. Deliver WOMEX2013 as a worldclass event torealise its potentialas a catalyst for the music sector in Wales

27. Deliver successfulArts Councilcorporate events(AnnualConference,MarketingSymposium andSgwrs Gelfyddydol)

• Increase in second half ofyear in value and numberof loans

• Number of trade fairexhibitors

• Number of delegates

• Number of attendees atevening concerts andevents

• Delivery of digi-tourismmusic project

• Delivery of legacyprogramme that hascatalytic effect ondevelopment of sector inWales

• Delivery of Horizonsprogramme

• Value to local economy

• Delivery of the projectwithin the agreed budget

• Attendance numbers

• Delegate satisfaction

Increases in usage have been recordedduring the campaign which targetedChristmas sales.

An action plan is now in place to takeforward the recommendations from theBond Report. A 5% increase in sales is inour targets for 2014.

WOMEX 13 took place in October and wasa resounding success as an event. Theheadline achievements were reported toCouncil in December.

The targets for the event have been met orexceeded.

As the event was entered into largely for itspotential to have legacy, the team is nowengaged in evaluation and the wrap up ofthe project which will extend into the newfinancial year.

The Spring Sgwrs Gelf series wassuccessfully delivered.

Creative Futures, our annual conferencewas deemed a success with 183 attendeesnoting this was one of the best to date. 83%of respondents to the subsequent surveyrated the event as good to excellent.

An evaluation will take place on all ourevents and a strategy will be produced witha clear focus on all future events.

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28. Develop theentrepreneurialleadership skillsthat help artistsand artsorganisations todevelop forward-looking,sustainable andresilient businesspractice

29. Embed our newthree stranded(national, regionaland individual)partnership withlocal governmentacross Wales

• Development, with Artsand Business Cymru, ofthe MENTORA project

• Piloting of Mission, Models Money projects

• Short course initiatives

• 3 modules of the ArtsCouncil’s RFODevelopment Programmedelivered in 2013/14(Governance, BusinessPlanning and Access)

• Membership of the ChiefCulture and LeisureOfficers of Wales(CCLOW) group

• Production of national artsand cultural policy basedon RBA scorecardapproach

• ‘Pairing’ of Arts CouncilDirector with LA region

• Lead officer designated for every local authority in Wales

• Programme of AD:UKregional arts developmentofficer meetings

• Agreement to a set ofPerformance Indicators for the local authority artsand cultural sector

• Integrated national datacollection mechanismestablished on Ffynnon

• Delivery of a SgwrsGelfyddydol twice a yearin each of the 4 localauthority regions

The financial situation of Arts and Businesshas been clarified now for 2014/15 and wewill be working with them to progress theirnew business plan.

Mission Models Money programme is upand running although take-up has not beenas high as we would have liked. An actionlearning set has emerged from the projectsworked and is meeting regularly.

We have signed up to the Wales CloreFellowship for 2014/15.

All the Authorities have signed up tocollecting data this year in according to thestandard negotiated KPI’s.

This has been agreed by our researchofficers, CCLOW, WLGA, WelshGovernment Data Unit and AD:UK.

Directors have held regional internalmeetings. This has been particularlyimportant in relation to the current LocalAuthorities’ budgetary situation.

We have had officers at the AD:UKmeetings.

We organised 4 regional Sgwrs events inJanuary/February including sessions oncrowd funding, philanthropy and culturaltourism.

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30. Develop PublicValue Partnershipswith BBC CymruWales and S4C

31. Nurturepartnerships thatsupport the deliveryof our arts priorities,developing newopportunities forartists tocommission,develop andpresent work

32. Maximise benefits to the arts fromEuropeanProgramme 2014-2020 includingstructural funds

33. Developing theprofessionalcapability, skill andwell-being of ourstaff

• Partnership documentsagreed and published

• Delivery of partnershipprojects (eg: TVscriptwriting in Welsh,WOMEX)

• Memoranda of agreement (whereappropriate)

• Site Specific initiative with national companies

• Agreement with WelshGovernment on areas ofpossible co-investment2014-2020 throughStructural Funds andCreative Europe eg digital skills

• HR policies updated andpublished in respectiveHandbooks by Q1

Public Value Partnership with BBCWales/Cymru has been signed andlaunched.

Memorandum of Understanding (MoU) withS4C has been agreed and will be launchedofficially at the media launch for‘Hinterland/ Y Gwyll’

We have been meeting regularly with BBCand S4C and have started to develop acreative partnership with them.

MoUs with Cadw, CAT, Canal and RiverTrust have been signed.

MoU with the National Trust has beenagreed.

Work is progressing to plan with thenational companies. Research phase nearto completion.

Continued input to the WEFO Delivery &Compliance Work Stream. Attended launchof new 2014 – 2020 programme byFinance Minister in November.

Policies review largely completed, a smallnumber of which are awaiting Union signoff.

Making the Arts Council as an effective and efficient public organisation –

What will success look like?During 2012/13 we implemented the outcomes of our Organisational Review. A new staffingstructure is in place. Now our challenge is to create to create a strong, confident organisationproviding services that are relevant and useful.

We’ll be providing professional services across a range of disciplines. And we’ll be doing so inways which reduces cost and recognises our responsibility to become a more environmentallysustainable organisation.

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34. Implement our ICTStrategy

• Team and Individual WorkPlans completed for Q1

• New Learning andDevelopment policy andplan by Q1

• Implementation of newPerformanceManagement/360 degreeappraisal process byQ3/4

• Introduction of EmployeeAssistance programme

• ICT policies finalised

• Implementation ofWindows 7/Office 2010upgrade by Q1

• Implementation of NightOut website by Q1

• Introduce expense@work

• New Contacts database in place

• Next phases ofdevelopment of RFOsurvey completed

• Next phases ofdevelopment of Hwbcompleted

• Incorporation of socialmedia capacity intoenhanced website

Workplans have been agreed and 1:1sessions are on-going.

We have embarked on a Learning andDevelopment programme.

New Performance Management system re-scheduled by SMT for 2014/15implementation.

Finalisation of policies delayed pendingcompletion of revised HR policies.

Windows 7/Office 2010 upgradescompleted.

Core development of the Night Out webapplication is completed and the project hasentered first phase user acceptance testing(UAT). A complete list of issues and bugs has been outlined and work schedule tocomplete has been published. Completion to live testing due September 2014.

Expense@work implemented.

Head of Communications leading on theContacts Database project with ICTsupporting. Work on this is progressing andwill continue into 2014/15.

RFO survey database changes to includeprotected characteristics have beencompleted and all associated tools andtemplates are ready for use.

All intranet team pages are live with theexception of two that are currently underdevelopment. Developments to improve user adoption continue to be discussed atICT User Group to inform SMT discussionand decision.

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35. Develop a suite ofCorporatepublications andvideo, promotingthe Arts Councilbrand and thework that we do

36. Manage our officeestate efficiently,safely and at bestvalue

37. Develop ourInformation Service

• Suite of publications andvideo produced

• Supporting mediacampaign

• Complete rationalisationof Cardiff office

• Agree new approach toCarmarthen

• Undertake EmergencyPlanning rehearsal

• Enhanced print and online information

• More extensiveprogramme of fundingsurgeries

Local Authority pages framework on Hwbare almost complete.

Social Media on website now implemented.

Microsoft Lync roll-out is complete andintegration and testing with the videoconferencing estate is in place to enable alllaptop workers to fully utilise VC both pointto point and multipoint. A pilot is alsotaking place to investigate integrating Lyncwith the existing telephone system.

The film promoting Creativity and the Artshas been completed and will run inconjunction with the consultation. Humaninterest stories are being collatedcontinuously and used when appropriate.

Further training for the CommunicationsTeam in the production of video has beenidentified and this will be progressed via theCorporate Learning and Development Plan.

Alternative options for use of 1st floorCardiff being explored and have openeddiscussions regarding our current lease withour landlord.

New premises in Carmarthen secured; andthe Carmarthen Office relocated in May2014.

Rehearsals undertaken successfully forreinstalling network and software systems inthe event of an emergency.

The programme of Funding Advice Sessionshas been re-organised and a particularfocus placed on areas of traditionally lowtake up.

Some changes have been implemented asa result of the individual artist workinggroup. We will consider the findings of theStakeholder survey.


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38. Implement costcutting measures tohelp us to achieveour OrganisationalReview financialtargets

39. Retain IiPaccreditation

40. Assessindependently theeffectiveness of ourorganisation

41. Achieve publishedtargets forprocessing: a) of grants

applications;b) financial

payments

42. Review and simplifyour grant makingprocesses

• Reduction in grant in aidrunning costs

• Action plan prepared Q1

• Quarterly monitoring

• IiP accreditation confirmed Q4

• Internal staff satisfactionsurvey Q2

• External customersatisfaction survey Q2

• Grants managementtargets

• Targets for payments tosuppliers

• Grant Processing Groupestablished Q1

• Complete review ofcurrent processes Q2

• Review and simplify allGuidelines Q2

Regular reports provided to SMT andCouncil.

Financial targets have been achieved.

This year has seen the three yearly review of our Investors in People (IiP) accreditation.Organisational Development Group set upto monitor progress against our IiP actionplan throughout the year.

The assessor’s overall conclusion was thatwhilst good progress was evident in someareas, more work, and time was needed todemonstrate impact. We will focus on thisaspect in 2014/15.

Stakeholder, Client and Staff Surveycompleted and received. The final reporthas been reviewed by the Steering Group,and will be shared with the relevantaudiences.

All grant applications processed withintimescales.

As at the end of 2013/14 we paid 95% ofsuppliers within the terms of our agreedpayment policies, and 85% within 10 days.Last year we achieved 94% and 72%respectively. Performance is reported infinancial reports to Council (quarterly) andSMT (monthly).

We commissioned an external evaluation ofthe effectiveness of the Guidelines and willbe considering a review of the whole grantprocess and Guidelines to ensure that theyreflect Creativity in the Arts and possibleincorporate a reduction in the number offunding programmes.


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43. Manage ourfinancial resourcesto the higheststandards ofaccountability

44. Develop aconstructiverelationship withWelsh Governmentthrough: a) Delivery and

reporting on requirements ofthe Remit Letter 2013/14;

b) Biannual meetings with the Minister;

c) Culture Forum; d) Quarterly

Monitoring Meetings with officials

45. Annual Report for2012/13 published

• Annual statutory accounts;interim and final audits

• Whole of GovernmentAccounts

• Budget setting

• Monthly managementaccounts

• Statutory returns

• Papers produced andcirculated withintimescales for meetings

• Reports produced asappropriate

• Report produced andpublished includinginformation about:a. Operational Plan b. Welsh Language

Action Planc. Strategic Equality Pland. Equalitiese. Equality Impact

Assessmentsf. Environmental

responsibilities

All deadlines to date in respect of both setsof Statutory Accounts and WGA, achieved.

Management accounts submitted to SMTand financial reports to Council

Arrangements are in place to ensuremeeting papers are produced andcirculated within designated timescales.

Reports are circulated, as required, to theMinister and as part of our QuarterlyMonitoring meetings.

All Assembly questions (AQs) areresponded to within timescales. During2013/14 we had received and respondedto 231 AQs.

The annual report has been designed andpublished on our website.

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46. Support thecorporatemanagement ofthe Arts Council’sbusiness through:

a) The managementand organisationof Council and itsCommittees;

b) The managementand organisationof the SeniorManagementTeam;

c) The managementand organisationof ManagementBoard

47. Ensure the diversityof the Arts Councilof Wales Councilmembers and itsstaff

48. Deal effectivelywith WelshGovernmentenquiries,complaints andFreedom ofInformation (FoI)requests

• Timely preparation ofagendas, papers andminutes of meetings

• Organisation of:a. 6 Council meetingsb. weekly senior

management meetings

• Quarterly ManagementBoard meetings

• 50% of Council membersand staff are Welshlanguage speakers

• Diversity representedwithin Council

• 100% of WelshGovernment enquiries,Complaints and FoIrequests dealt with in thespecified timescales

Meetings scheduled in diaries for thecurrent year.

Arrangements are in place to ensuremeeting papers are produced andcirculated within designated timescales

Currently we have 60.4% of staff and 53%of Council Members who are Welshspeakers.

The diversity of the Council membersimproved following recruitment of newmembers during 2012/13. Findingsdetailed in Annual Equality Report 2012/13presented to Council during the yearsuggest further work is required withregards to increasing diversity amongst staff and this will form part of our StrategicEquality Action Plan for 2014/15.

However, any action in respect of this wouldneed to be managed in accordance withrecruitment opportunities as they arise.

Procedures are in place to ensure allcomplaints and FoI requests are respondedto within designated timescales. During theyear we received one formal complaintrelating to a tendering exercise which waspartially upheld. We also received 25 FoIrequests, all of which were responded towithin the statutory deadlines.

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49. Meet ourenvironmentalresponsibilities inaccordance withthe WelshGovernment'sSustainable Duty

50. Implement newpayroll systems

• Produce environmentalstatement Q4

• Real Time Informationprovided on monthly basisto HMRC Q1

• Pensions auto-enrolment

We have achieved level 5 rating in therecent Green Dragon Environmental auditscheme. This was achieved ahead of theplanned schedule of 2015.

New quarterly reporting format has beenagreed in Environmental Communicationsplan – annual report by April 2014 withquarterly updates to begin in 2014/15financial year.

A Task and Finish Group has been set upand meetings are underway.

RTI completed.

Auto-enrolment to be introduced in2014/15 in line with our staging date.


Detailed monitoring of performance againstthese performance indicators is carried out andreported on quarterly to the SeniorManagement Team, Council and the WelshGovernment.

Grant making policies

The Council invites applications for recurrentand one-off grants from organisations andindividuals and monitors the proper andeffective use of those grants. As well as meetingthe Council’s strategic aims, applications mustdemonstrate benefit to the people of Walesacross all regional, cultural and economicsectors. Recurrent grants are funded fromgrant-in-aid only but one-off grants may befunded from grant-in-aid or lottery income.Under the terms of its Lottery Policy Directionsthe Council makes grants in support of capitaland other projects under revenue schemesrelating to the arts in Wales.

Capital grants, to organisations only, support the purchase, improvement, restoration,building or creation of an asset that will beused continuously.

Council has delegated its grant making in anumber of strategic areas to Ffilm CymruWales, Nesta, BBC Cymru Wales, and LiteratureWales. The terms of the external delegation areset out in formal agreements and satisfy theconditions of the Council’s Statement ofFinancial Requirements. The obligations of theCouncil’s Accounting Officer are unchanged bythe delegation but he has satisfied himself thatthe organisations and their systems are suitableto undertake the delegated functions, including:the assessment of applications for funding;holding, accounting for and distributing Lotterymoney allocated to them by the Council for thatpurpose; and monitoring funded projects. Thedelegation agreements allows for appropriateaccess to the Agency by the Council’s internalauditors and by the Comptroller and AuditorGeneral for the review of the operation of thedelegated functions.

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Revenue scheme grants are available to helpfund time-limited artistic projects of high qualitywhich best meet the Council’s funding priorities.

On-going monitoring of our grant aidprogrammes alerts us to any specific risk issues.Identified risks lead to an escalation of the levelof monitoring and, if necessary, can result in thepayment of funding being with-held and/ordeferred.

The Council publishes general guides tofunding for organisations and individuals whichinclude full details of funding priorities andeligibility criteria. These are available from anyof the Council’s offices and from he website:www.artscouncilofwales.org.uk.

Number of applications received:Capital schemesRevenue schemes

Number of grant offers made:

Value of grant offers made:Capital schemesRevenue schemes

Hard commitments (grants accepted but not yet paid over)at 31 March:Capital schemesRevenue schemes

2013/14

361,258

1,294

906

£’000

2,37115,707

18,078

6,6156,534

13,149

2012/13

21789

810

471

£’000

3,9288,030

11,958

6,4615,410

11,871

Principal Lottery distribution activities

Financial review

The Council has two principal funding sources:grant-in-aid from the Welsh Government; and,as one of the bodies responsible for thedistribution of funds for good causes, a share ofthe proceeds raised by the National Lottery. TheCouncil is required to account separately for itsgeneral activities.

Investment

Investment powers are governed by the TrusteeAct 2000 and the Framework Document issuedby the Welsh Ministers and the FinancialDirections issued by the Secretary of State forCulture, Media and Sport. The Council’s policyis to achieve the maximum return within theseterms. Interest at a negotiated rate linked tobank base rate is received on all creditbalances in the Council’s current accounts.

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In February 2008 a statutory instrument waspassed which allowed for the transfer of up to£1,085,000,000 from the National LotteryDistribution Fund to the Olympic LotteryDistribution Fund in order to meet some of thecosts of hosting the 2012 London games. TheCouncil was committed to contribute up to£3,552,000 in the original bid and this orderallows for the transfer of up to a further£4,509,000. Similar amounts were transferredevery three months until August 2012. During2013/14 there were no further transfers(2012/13 £1,010,000).

The level of grant offers made during the yearincreased compared to the previous year, as didthe level of hard commitments. These include

significant sums relating to major capitalprojects, payments for which will be released ona prompt and timely basis at key points duringthe life of each project. A number of the morecomplex projects have taken longer to progressthan originally envisaged. Income was alsohigher than projected. The combination of thesefactors affected the level of balances.

Social and community issues

We are committed to ensuring that the Council’sfunding is accessible and of benefit to all thecitizens of Wales. Ensuring greater access to thearts is a natural priority for a body, such as us,that is in receipt of public funds. We are fullycommitted to removing the barriers that prevent

From time to time, higher rates may be availablefor restricted funds on long term deposit.

Since October 2013, to minimise risk to ourcharitable and public funds whilst retaining thecontrol and flexibility needed for day-to-dayoperations, the Council opened accounts withCCLA Investment Management Limited whichallows us to make daily transfers of surplus fundsbetween their Public Sector Deposit Fund and

our bank current accounts. The Fund is AAAmmfrated by Fitch Ratings.

Balances held in the National Lottery DistributionFund remain under the stewardship of theSecretary of State for Culture, Media and Sportso, although the Council receives investmentincome on its share of such balances, theCouncil has no investment powers over theFund.

Share of proceeds from the National Lottery

Increase/(decrease) in funds for the year

Grant expenditure (offers made in this year and previous yearswhich are formally accepted during the year)

Soft commitments (grants offered but not formally accepted) at 31 March, not recorded as expenditure in the Statement of Comprehensive Net Expenditure

Balance held in the National Lottery Distribution Fund at 31 March

Reserves at 31 March

2013/14£’000

16,892

(2,269)

15,359

2,830

20,264

7,926

2012/13£’000

19,355

3,396

12,101

339

20,601

10,195

Financial results

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and impede people from enjoying and takingpart in the arts.

We continue to have strategies targeted at youngpeople, community and voluntary arts andbroadening public engagement in the arts. Wehave moved forward this year on a number ofkey programmes. We have commissioned workto establish a disability ticketing scheme fordisabled theatre goers and their carers,commissioned a diversity and equalities toolkitfor the arts and a bespoke training and CPDprogramme for our staff.

We launched a pilot participatory project, inpartnership with Communities First, targeting ourmost disadvantaged young people and begandiscussions with the Baring Foundation and AgeCymru about supporting a project focusing onour older people living in care homes.

The Our Space programme has providedopportunities for venues and other arts providersto explore innovative approaches to audiencedevelopment, targeting in this young people andpeople from our black and minority ethnic (BME)communities.

Our grant schemes have over-arching fundingpriorities directed at projects promoting the workof artists from under-represented groups such asdisabled people and people from black andminority ethnic backgrounds. Recognising thebilingual culture of Wales, we also prioritiseapplications that will be delivered in Welsh orbilingually.

As we move forward into 2014/15 our focus willbe to complete and build on the projects we haveinitiated this year. The diversity toolkit will belaunched through a series of training events andour in-house equalities training programme willbegin. We will progress our disability ticketingscheme and our partnership project for olderpeople will begin.

Children and young people will be a primaryfocus for our work as we implement our workaround child poverty and arts and education.

We plan to re-launch Our Space with a view tofocusing this scheme on families living in ourmost deprived communities.

Sustainability

The Welsh Government’s White Paper “A Sustainable Wales – Better Choices for a Better Future” sets out its vision and proposals for embedding sustainability as the centralorganising principle for the wider public servicesin Wales when the Sustainable Development Billbecomes legislation. The Arts Council of Wales isamongst the first wave of organisations subject tothe Sustainability Duty when it becomes law.

We have therefore reflected this into thedevelopment of our new arts developmentstrategy Inspire: Creativity and the Arts whichputs sustainable development at the heart of ouractivities moving forward and explores in anholistic way how the arts sector can contribute tosocial and economic – as well as environmental –sustainability.

At its October 2013 meeting, Council consideredand approved a Project Initiation Document andan Equality Impact Assessment for theestablishment of a Sustainable Development Taskand Finish Group.

The main aims of this group were:

1. To plan, organise and deliver a sustainabledevelopment strategy for the Arts Council ofWales

2. To develop an operational plan to deliver theabove and be compliant with any relevantlegislation and guidelines from WelshGovernment (for implementation from April2014 onwards).

The Task and Finish Group has met twice, once inNovember 2013, once in March 2014 and hasmade excellent progress. We have commissionedresearch and a mapping exercise to identify andshare best practice models both within Wales andbeyond. We have also commissioned a piece of

digital filmmaking that makes the case forSustainable Development to assist in the trainingof staff and arts organisations and in ourleadership role within the arts sector.

We have now got a draft SustainableDevelopment Policy that will take a three prongedapproach – firstly, what we can deliver ourselvesthrough our own procedures, policies andservices; secondly, what we can encourage andsupport the individuals and organisations wework with to achieve and thirdly, how we can useour position of leadership to promote sustainabledevelopment more widely. We also end the yearwith an action plan to take forward the variousobjectives and monitor progress throughout thenext financial year.

During the next year we will be developing ourplans further to meet our duties under theSustainable Development Bill in order to ensurethat we fully play our part in delivering the WelshGovernment’s vision. We are totally committed todoing so.

Environmental Report

We are committed to operating our business in asustainable manner, and to applying goodenvironmental practice in order to reduce ourenvironmental impact and continually improveour performance.

Although we are below the Welsh Government’sde minimis level, we decided we would continueto voluntarily report more fully on ourenvironmental performance. We believe this tobe in line with the spirit of the WelshGovernment’s aspirations for, and ourcommitment to drive forward with the SustainableDevelopment agenda.

Review of progress:

Since introducing an environmental policy someyears ago, we have focussed on improving ourenvironmental performance. We have madegood progress, through a combination offinancial investment, the introduction of systems,

changing our operating practices, and throughthe commitment of our staff.

We continue to operate from three locationsacross Wales and will, in the early part of thenew financial year, have achieved our target toreduce the size of our estate by 25%. Our NorthWales based staff now work out of smallerpremises, we moved our Cardiff based staff intoa smaller area, and recently relocated to smallerpremises in West Wales. Our offices are fittedwith a range of energy saving devices andequipment.

Our offices are accessible through publictransport networks. In recent years we have seenan increase in the number of visitors using publictransport to reach us, as well as an increase inthe number of staff using trains and buses fortheir journeys to and from work.

We use energy-saving devices and equipment toreduce electricity consumption and encouragestaff to reduce consumption whenever possible.We recently replaced our photocopying andprinting multi-functional devices with new Energy star rated equipment which reducespower consumption by 35% from replacedmodels. We also replaced all of our monitors.These too have an Energy star rating and reducepower consumption by 25% in comparison tosimilar LED screens.

The focus of our ICT strategy in recent years hasbeen on extending the use of our informationtechnology infrastructure to provide business andenvironmental benefits.

Two of our key systems – finance and on-linegrant application systems – are fully electronicfrom initial order or application through to finalpayment. All supporting documents areaccessible electronically. We also scan allincoming mail and invoices etc. This enables staffto access documents remotely, as well asreducing the volume of paper we receive,handle, store and re-cycle, with consequentialreductions in our storage requirements.

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We have virtualised our IT servers resulting inreduced energy for power and cooling.

More than half of our members of staff areequipped with laptops and smartphones,enabling them to operate on a mobile basis, soreducing their dependency on having to workfrom our offices. This has helped reduce travel towork journeys and, in turn, their carbon dioxide(CO2) emissions. We have not yet been able toreport accurately on the impact of this but will beexamining the feasibility of doing so in future.

We have upgraded and extended our videoconferencing capacity in all three offices andactively promote its use as an alternative totravel. We are currently implementing aprogramme to enable our mobile workers toparticipate in video conferencing meetings withcolleagues and clients whilst away from ourpremises. We expect to fully implement thisinitiative during 2014/15.

In addition to improving the environmentalperformance of our offices, we have also madeprogress in changing organisational behaviours.

The introduction of a new staffing structure in2011 and flexible, mobile working arrangementshas resulted in some staff needing to travel morebetween offices, and to increase the level of visitsmade to funded organisations. However, we haveintroduced a number of initiatives to off-set theimpact of this.

We promote the use of environmentally friendlymeans of transport, restrict travel to necessaryjourneys only, and encourage staff to makejourneys by the most efficient means possible,taking account of both environmental andfinancial considerations. Car sharing isencouraged, and we provided cycle racks in ourCardiff office. We are considering introducingfurther incentives.

Our staff induction programme includesEnvironmental Awareness, and members of staffare given periodic training and updates asappropriate.

We promote the minimisation of waste amongstour staff by encouraging reduction, reuse andrecycling. Recycling and waste separation, whichreduces the amount sent to landfill, is activelypromoted internally, and we use licensed andappropriate organisations to dispose of ourwaste. We recycle our surplus and redundant ITand office equipment.

All our major suppliers of office equipment andsupplies have environmental policies andreporting mechanisms in place, and we considerenvironmental performance and awareness whenselecting contractors and suppliers.

We have standardised our stationery, and userecycled FCS paper supplies for at least 90% ofour copying and other internal needs. Managersand staff are provided with monthly reportsanalysing printing and copying activity, toencourage lower overall usage.

Our cleaning contractors have environmentalpolicies in place that ensure they use eco-friendlyproducts and equipment; any change to cleaningproducts has to be agreed with us.

We have significantly reduced, in recent years,the number of printed paper copies of ourcorporate publications, and now use electronicmeans as our default position. This has helpedreduce paper consumption, the quantitiesdelivered, and our storage requirements.

Allied to this, our website provides a wide rangeof information to grant applicants, artists and artsorganisations, and to the general public. Thishelps us deliver our level of service without theneed to print and send paper copies. Our mainwebsite has now been in operation for over fouryears, so we will be reviewing our suite ofwebsites and their content during the year with aview to making them more accessible, increasingthe level of information and content, andimproving our standards of service.

We were pleased that our efforts have beenrecognised and helped us secure level 5 GreenDragon accreditation during the year. We see this

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2013/14 2012/13

Waste:Non-financial (tonnes)

Landfill - estimate 1.65 2.2Reused/recycled - estimate 6.44 7.45

Greenhouse gas emissions (CO2 tonnes)Gross emissions, scope 2&3 (indirect) 61 61

Energy consumption (Kwh)Electricity (non-renewable) 125,644 126,708Electricity (renewable)Gas N/A N/A

Financial indicators (£)Expenditure – energy 21,709 18,900Water supply costs (office estate) –currently unable to assess, included inservice charge N/A N/A

Travel emissions (CO2 tonnes)Rail 8 12Air1 64 64Car/vans 25 35

Travel cost (£)Rail 24,085 33,194Air 22,646 19,981Car/vans 47,956 39,440

Travel (miles)Rail 102,761 154,806Air 224,369 221,803Car/vans 65,695 86,789

as a testament to the progress we have made inrecent years.

Our performance:

Our internal reporting systems enable us tocapture and measure details of our use ofconsumables, waste, energy, water and stafftravel, and thus our CO2 emissions. Followingguidance from Green Dragon, we have

enhanced our waste reporting matrix and intendto continue to broaden and refine our reporting.All three offices are now on a shared occupancybasis, with certain costs included within ourservice charge, particularly relating to wastecosts and water usage. This restricts our ability toaccurately assess our water and, to an extent,electricity usage. We will be exploring with ourlandlords the practicalities of introducing systemsto improve our data capture.

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1 Includes the influence of radiative forcing in air travel emissions to capture the maximum climate impact.Radiative forcing is a measure of the environmental impact of emissions of NOx (nitrous oxides) and watervapour when emitted at high altitude.

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Our ability to influence:

As well as seeking to improve our own As wellas seeking to improve our own environmentalperformance, as the largest grant distributor inthe arts sector in Wales, we are uniquely placedto influence changes in behaviour andperformance amongst the individuals andorganisations we fund.

In previous years we funded the Emergence –Eginiad programme which focused on thedevelopment of a low-carbon arts infrastructureand developing the role of the arts as a crucibleof ideas and visions for a low-carbon OnePlanet Wales. Our work helped fund theEmergence summit, a major arts andsustainability event presented in Machynlleth inlate 2012. We funded artists’ commissions andfilm work connected to the event which in turnfeatured on the BBC/Arts Council Englandinitiative The Space. And we subsequentlyinaugurated an artist in residence project at theCentre for Alternative Technology and offeredfurther support for Emergence to scope a web-based documentation project.

We actively encourage high environmentalstandards in the capital projects we grant fund.Two current examples include the major newbuild project in Bangor, Pontio, which willachieve BREEAM Excellent standard, and theGlynn Vivian project in Swansea will reachBREEAM Very Good, due to its status as anhistoric building. Future capital projects we fundwill also require the recipient to meetappropriate BREEAM standards.

Looking ahead:

As well as continuing to improve our ownenvironmental performance and thus minimiseour own impact on the environment, we arekeen to influence the organisations and artistswe fund to do the same.

Our Sustainable Development Policy willspecifically target our Revenue Funded

Organisations through a combination of help and support, funding programmes andfacilitated training and information sharing.

We also intend to raise awareness through acombination of: partnerships andcollaborations; involvement in relevantnetworks; creating and facilitating opportunitiesto engage with the issues; and advocating forthe role of the arts in social change.

Whilst going beyond purely environmentalissues, we see our Sustainable DevelopmentPolicy as an agent for change in improvingenvironmental awareness and performanceamongst those we fund. And in so doingenabling us to fully play our part in helpingdeliver the Welsh Government’s visioncontained in the Future Generations Bill.



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Remuneration Report

The Council remunerates its entire staff, with theexception of the Chairman and Chief Executive,in accordance with an agreed pay and gradingsystem maintained by the Human ResourcesDepartment. A Job Evaluation Policy is in place,in accordance with which staff may appeal thegrading of posts. The terms of appointment ofthe Chairman and Chief Executive are agreedwith the Welsh Government.

Each year, in consultation with the recognisedtrade union, a pay remit is produced andsubmitted to the Welsh Government forapproval. The resultant pay and conditionspackage is binding on the whole of the Counciluntil the next round of negotiation. Increasesunder the pay remit are dependent uponperformance established by the Council’ssystem of personal development reviews.

With the approval of the Charity Commissionthe Chairman is remunerated at a ratedetermined by the Welsh Government whichreflects a minimum time commitment to Councilbusiness. Annual increases of the Chairman’ssalary are also advised by the WelshGovernment but he receives no bonuspayments and is not a member of the pensionscheme.

The Chief Executive’s remuneration consists of abasic salary plus an annual bonus. Annualbonuses are recommended to Council by theRemuneration Committee in consideration ofthe performance of the Chief Executive againsta set of predetermined objectives. A percentageof the bonus, as advised by the WelshGovernment, is consolidated into the ChiefExecutive’s salary and the remainder is paid asa non-consolidated award. In the absence ofguidance from the Welsh Government inrespect of changes to the Chief Executive’ssalary, the Remuneration Committee wasunable to determine whether an increase couldbe paid during the year. As a result the Chief Executive did not receive an increase or anon-consolidated bonus in respect of 2013/14.

Council members are appointed by the Welsh

Ministers for a period of three years and maybe re-appointed for a further three year period.The current Chairman, Professor Dai Smith,was appointed as a Council member on 1 April2004 but took over the chairmanship on 1 April2006. The Minister for Culture, Sport and theWelsh Language subsequently appointedProfessor Smith for a term of three years from 1April 2007 until 31 March 2010, the HeritageMinister renewed his appointment for a furtherthree years to 31 March 2013 and the Housing,Regeneration and Heritage Minister hasannounced that Professor Smith will continue toserve as chairman until 31 March 2016. TheChief Executive and Directors are all employedon permanent contracts on the Council’sstandard terms and conditions.

Having successfully completed a probationaryperiod of six months, the Chief Executive andDirectors are entitled to thirteen weeks’ noticeof termination of employment.

The dates of commencement of employmentare: Professor Dai Smith (Chairman) 1 April2006; Nicholas Capaldi (Chief Executive) 15September 2008; David Alston (Director of Arts)1 July 2005; Katherine Davies (Director ofInvestment and Funding Services from 1February 2012) 24 August 1998; Diane Hebb(Director of Engagement and Participation from1 February 2012) 13 January 1992; SiânTomos (Director of Enterprise and Regenerationfrom 1 February 2012) 3 May 1994; and HywelTudor (Director of Finance and Resources) 21January 2002.

The Chief Executive and Directors areresponsible for directing the Council’s activities.Their actual emoluments and pension benefitswere as shown in the following tables.

The figures within this Remuneration Reporthave been audited.

This year, for the first time, the RemunerationReport must include a single total figure ofremuneration. Prior year comparatives havebeen provided for 2012/13. This is a different

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way of presenting the remuneration for eachindividual for the year. The table used is similarto that used previously, and the salary elementis unchanged. The amount of pension benefitsfor the year which contributes to the single totalfigure is calculated in a new way, similar to themethod used to derive pension values for taxpurposes, and is based on information receivedfrom the actuary of the Arts Council RetirementPlan 1994.

The value of pension benefits is calculated as follows:(real increase in pension* x 20) + (real increase in any lump sum) – (contributions made by member)* excluding increases due to inflation or any

increase or decrease due to a transfer of pension rights

This is not an amount which has been paid toan individual by the Council during the year, itis a calculation which uses information from thepension benefit table. These figures can beinfluenced by many factors, e.g. changes in aperson’s salary, whether or not they choose tomake additional contributions to the pensionscheme from their pay, and other valuationfactors affecting the pension scheme as awhole.

The single total remuneration figures were:

2014 2013

Name and Emoluments1 Pension Single total Emoluments1 Pension Single totalPosition band benefits remuneration band benefits remuneration

£’000 £’000 £’000 £’000 £’000 £’000

Nicholas Capaldi 90-95 22 115-120 90-95 21 110-115Chief Executive

David Alston 65-70 22 90-95 65-70 15 80-85Director of Arts

Katherine Davies 55-60 37 95-100 50-55 51 100-105Director of Investment and Funding Services

Diane Hebb 55-60 27 80-85 50-55 31 80-85Director of Engagement and Participation

Siân Tomos 55-60 32 85-90 50-55 20 70-75Director of Enterprise and Regeneration

Hywel Tudor 65-70 24 90-95 65-70 12 75-80Director of Finance and Resources

1 Emoluments – Guidance has not yet been issued by the Welsh Government in respect of Chief Executives’ entitlement to a performance-related non-consolidated award for 2013/14. The other Directors have no entitlement to performance-related awards.

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2014 2014 2014 2014Total accrued Real3

Real increase pension at Cash2 Cash Increase inin pension age 65 as at Equivalent Equivalent Cash

and related 31/03/14 Transfer Transfer Equivalentlump sum and related Value at Value at Transfer

Name and position at age 65 lump sum 31/03/14 31/03/13 Value£’000 £’000 £’000 £’000 £’000

Nick Capaldi Pension 0-2.5 Pension 5-10 91 77 12Chief Executive Lump sum 2.5-5 Lump sum 15-20

David Alston Pension 0-2.5 Pension 5-10 124 104 18Director of Arts Lump sum 2.5-5 Lump sum 15-20

Katherine Davies Pension 0-2.5 Pension 15-20 263 243 16Director of Investment Lump sum 2.5-5 Lump sum 55-60and Funding Services

Diane Hebb Pension 0-2.5 Pension 5-10 145 129 14Director of Engagement Lump sum 2.5-5 Lump sum 25-30and Participation

Siân Tomos Pension 0-2.5 Pension 10-15 209 190 16Director of Enterprise Lump sum 2.5-5 Lump sum 40-45and Regeneration

Hywel Tudor Pension 0-2.5 Pension 10-15 185 168 15Director of Finance Lump sum 2.5-5 Lump sum 30-35and Resources

2 Cash Equivalent Transfer Values - A Cash EquivalentTransfer Value (CETV) is the actuarially assessed capitalisedvalue of the pension scheme benefits accrued by amember at a particular point in time. The benefits valuedare the member’s accrued benefits and any contingentspouse’s pension payable from the scheme. A CETV is apayment made by a pension scheme or arrangement tosecure pension benefits in another pension scheme orarrangement when the member leaves a scheme andchooses to transfer the benefits accrued in their formerscheme. The pension figures shown relate to the benefitsthat the individual has accrued as a consequence of theirtotal membership of the pension scheme, not just theirservice in a senior capacity to which disclosure applies. The figures include the value of any pension benefit inanother scheme or arrangement which the individual hastransferred to the Arts Council Retirement Plan 1994. Theyalso include any additional pension benefit accrued to themember as a result of their purchasing additional pensionbenefits at their own cost. CETVs are calculated within the

guidelines and framework prescribed by the Institute andFaculty of Actuaries and do not take account of any actualor potential reduction to benefits resulting from LifetimeAllowance Tax which may be due when pension benefitsare drawn.

3 Real increase in CETV - This reflects the increase in CETVeffectively funded by the employer. It does not include theincrease in accrued pension due to inflation, contributionspaid by the employee (including the value of any benefitstransferred from another pension scheme or arrangement)and uses common market valuation factors for the startand end of the period.

The pension benefits were:

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The total actual emoluments of the Chairman and Chief Executive were made up of:2014 2013

£ £ChairmanSalary 43,810 43,810

Chief ExecutiveSalary 93,380 93,380Employer’s pension contribution 16,155 16,155

109,535 109,535

Reimbursed travel and subsistence expenses incurred and defrayed whilst on Council business:

Chairman 3,129 2,882Chief Executive 8,744 8,283

33.96% (2012/13: 33.96%) of the Chairman’s and Chief Executive’semoluments are charged in these financial statements and theremainder to general activities.

The median annual remuneration (full time equivalents) at 31 March was (whole Council): 30,000 30,000

The ratio between the median annual remuneration and the annual remuneration of the highest paid member of staff was (whole Council): 1:3.12 1:3.12

Following an amendment to the Council’s RoyalCharter, and with the approval of the CharityCommission, since 1 April 2004 the Chairmanhas been paid for his services. Other Council andCommittee members are not paid for theirservices. An aggregate amount of £15,477

(2012/13: £9,801) was reimbursed to 14(2012/13: 12) Council members for travel andsubsistence costs incurred on Council business.The aggregate amount allocated to LotteryDistribution activities was £6,183 (2012/13:£4,066).

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Compensation schemes - exit packages (whole Council):

Number of compulsory Number of other Total number of exitExit package cost band redundancies departures agreed packages by cost band

2013/14 2012/13 2013/14 2012/13 2013/14 2012/13<£9,999 - - - - - -£10,000 to £24,999 - 1 - - - 1£25,000 to £49,999 - - - - - -£50,000 to £99,999 - - - - - -Total number of exit packages - 1 - - - 1

Total cost (£’000) - 16 - - - 16

Redundancy costs were paid in accordance with the provisions of the Council’s redundancy policy. The Council usually pays exit costs when employment ends but provides for the exit costs in full at the point when there is sufficiently detailed information to do so.

All ‘other departures agreed’ related to requests for redundancy where, in accordance with the Council’s redundancy policy, the employees’ posts either disappeared in the new structure or were filled by other employees who would otherwise have been compulsorily redundant. There is no difference in the payment entitlements of volunteers and those who are compulsorily redundant.

The Remuneration Committee members who served since 1 April 2013 were:

Professor Dai Smith (Council member); Margaret Jervis MBE DL (Council member); and Dr John Geraint (Council member).



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Under Section 35 of the National Lottery etc.Act 1993 (as amended) the Council is requiredto prepare for each financial year a statementof accounts for its Lottery distribution activities inthe form and on the basis determined by theSecretary of State for Culture, Media and Sport.The accounts are prepared on an accruals basisand must give a true and fair view of the stateof affairs of the Council and of its income andexpenditure, changes in equity and cash flowsfor the financial year.

In preparing the accounts, the AccountingOfficer is required to comply with therequirements of the Government FinancialReporting Manual and in particular to:

• observe the Accounts Direction issued by theSecretary of State for Culture, Media andSport, including the relevant accounting anddisclosure requirements, and apply suitableaccounting policies on a consistent basis;

• make judgements and estimates on areasonable basis;

• state whether applicable accountingstandards as set out in the GovernmentFinancial Reporting Manual have beenfollowed, and disclose and explain anymaterial departures in the financialstatements; and

• prepare the financial statements on a goingconcern basis.

The Principal Accounting Officer for the WelshGovernment has designated the Chief Executiveas the Accounting Officer of the Council. Theresponsibilities of an Accounting Officer,including responsibility for the propriety andregularity of the public finances for which theAccounting Officer is answerable, for keepingproper records and for safeguarding theCouncil’s assets, are set out in the WelshGovernment’s Accounting Officers’Memorandum issued by HM Treasury.



Statement of Council’s and the Accounting Officer’s Responsibilities

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This governance statement is the personalresponsibility of me, Nicholas Capaldi, the Arts Council of Wales’ Accounting Officer andChief Executive. It sets out the governancearrangements of the Arts Council of Wales. It also describes how I have discharged myresponsibilities for ensuring that we conduct ourbusiness, in respect of both exchequer andlottery activity, in accordance with the law. Thisincludes providing the necessary assurancesthat we are adhering to proper standards andestablishing the necessary safeguards to protectthe use of public money. I explain how thesefunds are properly accounted for, and usedeconomically, efficiently and effectively tosupport the delivery of our plans and priorities.

About the Arts Council of Wales:

The Arts Council of Wales – CyngorCelfyddydau Cymru – was established by RoyalCharter on 30 March 1994, and exists tosupport and develop the arts in Wales. It doesso for the benefit of people throughout Wales,and to support Welsh art internationally.

We are also a Welsh Government SponsoredBody, a National Lottery Distributor, and aregistered charity (number 1034245).

Our Royal Charter sets out our objectives. They are to:

• develop and improve the knowledge,understanding and practice of the arts;

• increase the accessibility of the arts to thepublic; and,

• work through the Welsh and Englishlanguages.

We also work with other public bodies in Wales,and with the other Arts Councils in the UK, toachieve these aims. You can find a copy of ourRoyal Charter on our website.

We operate within a carefully prescribed andregulated environment. The Arts Council ofWales is accountable to the Welsh

Government’s Minister for Culture and Sport.We have to operate within a framework thatsets out the terms and conditions under whichWelsh Ministers provide our grant-in-aidfunding, and how we are able to use thisfunding.

Along with other public bodies in Wales, wealso have to operate within the guidancecontained in Managing Welsh Public Money.The activities we carry out in connection withour Collectorplan scheme and Artists Loansscheme are subject to the Consumer Credit Actand guidance issued by the Financial ConductAuthority.

We are a distributor of Lottery funds which,under the National Lottery etc. Act 1993 (asamended), means we are accountable to theUK’s Secretary of State for Culture, Media andSport. Our financial directions are issued by theSecretary of State, and our policy directions bythe Welsh Ministers. These set out how we mustoperate in respect of Lottery distributionactivities.

We have to account for lottery distributionactivities separately from the rest of ouractivities, and have appropriate arrangementsin place to ensure we produce two sets ofpublished financial statements. Our LotteryDistribution accounts are audited on behalf ofthe Comptroller and Auditor General by theWales Audit Office. The Wales Audit Office alsoaudits our General Activities account on behalfof the Auditor General for Wales.

As a charity we have to ensure that we complywith the requirements of the Charities Acts1960, 2006 and 2011, and follow guidanceissued by the Charity Commission.

We have designed our systems and processes totake account of these various responsibilities.Within these frameworks we make independentdecisions regarding the strategic direction of theorganisation, grant funding, and other financialdecisions.

Annual Governance Statement

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Should the need arise, the Public ServicesOmbudsman for Wales, the ParliamentaryCommissioner for Administration, the CharityCommission, the National Audit Office, and theWales Audit Office are all able to investigatethe Council’s affairs.

Our Governance arrangements:

We are governed by a Board of Trustees –Council – which currently consists of a Chairand thirteen members (fourteen up to 31 March2014), one of whom is appointed as Vice-Chair. Since March 2013 the WelshGovernment’s Minister for Culture and Sporthas been responsible for appointing ourTrustees, each of whom brings specific expertiseand knowledge to the oversight anddevelopment of our activities.

Appointments are usually for a three year term,renewable a maximum of twice. The Chair ofCouncil is a remunerated position; rates are setannually by the Welsh Government. All othermembers provide their time and expertise on avoluntary basis, but are reimbursed for out-of-pocket expenses incurred on Council business.A summary is contained in the RemunerationReport.

Council is responsible for the strategic directionand management of our organisation. It isresponsible for ensuring, through me as theChief Executive, that we operate within thepolicy framework set by the Welsh Government,and that we satisfy the various otheraccountabilities required of us. The Chairmaintains regular contact with the Minister, andthe Chief Executive meets officials quarterly toprovide updates.

As the ultimate decision making body for theorganisation, Council members have retainedkey decisions on corporate policy, theformulation of our Corporate and OperationalPlans, and any major alterations to the termsand conditions of service for staff. They also setthe annual budget, decide on the annual

allocation of grants to revenue-fundedorganisations, and approve all grants of over£50,000, or in the case of Lottery fundedcapital projects over £250,000. Decisions ongrants below these thresholds have beendelegated to authorised staff, and to the CapitalCommittee respectively.

To help support its work, Council has appointedthree committees to provide specialist advice.These are: Audit; Capital; and Remuneration &Human Resources Committees. It also has anad hoc advisory committee, to advise on Walesin Venice, and internal monitoring groups who,via the Senior Management Team, assistCouncil in meeting its responsibilities.

Each committee includes Council members, oneof whom acts as chair, and co-optedindividuals, and is required to operate underspecific terms of reference. Independentcommittee members are appointed for theirspecialist skills and experience, through anopen selection process. Minutes of eachcommittee meeting are provided to the nextavailable full meeting of Council and eachcommittee is also required to submit an annualreport to Council, summarising its work.

All new members of Council and of eachCommittee undergo an induction processappropriate to their role, and are encouragedto continue their development during theirperiod of appointment.

During the year, Council reviewed and updatedthe terms of reference of each of theCommittees, and in some cases changedmembership. In order to provide furtherassurance, Council expanded the role of theRemuneration and Appointments Committee toinclude oversight of Human Resources.

The Audit Committee is responsible forproviding assurance to Council on theeffectiveness of our governance, riskmanagement and internal controlarrangements. It reported to Council on the

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main focus of its work, including our internalgovernance arrangements, and thedevelopment of a Corporate AssuranceFramework; the monitoring regime of ourportfolio of revenue-funded organisation(RFOs); and the internal audit programme, themajority of reviews of which resulted insubstantial assurance or higher.

The Capital Committee is responsible foradvising Council on the development of policyon all aspects of capital development, includingfunding priorities and schemes. It has delegatedauthority to make funding decisions on lotterycapital grants from £50,001 to £250,000. TheCommittee makes recommendations on largercapital grants to Council.

The Remuneration & HR Committee isresponsible for reviewing the performance ofthe Chief Executive against agreed objectives,and for setting targets for the forthcoming year.It also agrees the level of remuneration for the

Chair within the limits determined by the WelshMinisters. In future, it will have responsibility formonitoring HR matters on behalf of Council.

Neither the Capital nor Remuneration & HRCommittees made formal annual reports toCouncil.

Details of membership of Council and thesethree committees, together with details ofmembers’ attendance at meetings, can befound in the Reference and administrativedetails section at the beginning of the Trustees’Annual Report.

The Venice Advisory Committee was responsiblefor developing and overseeing the organisationof our presence at the 2013 Venice Biennale ofArt.

The Senior Management Team (SMT) is led byme, supported by five Directors eachresponsible for particular aspects of our work.

Council

CapitalCommittee

StrategicEqualities

MonitoringGroup

National Advisers

Remuneration &HR Committee

Audit Committee

Venice AdvisoryCommittee

SeniorManagement

Team

Welsh LanguageMonitoring

Group

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The Directors of Arts; Engagement &Participation; and Enterprise & Regenerationmake up the Arts Development team, whilst theDirectors of Finance & Resources; andInvestment & Funding Services make up theCorporate Services Team. I also have a ChiefExecutive Team. Further details are contained inthe Remuneration Report.

We also had two internal monitoring groups,the Strategic Equalities Monitoring Group, andthe Welsh Language Monitoring Group, to helpdrive forward Council’s agenda in these areas.The Strategic Equalities Monitoring Groupproduced a comprehensive Annual EquityReport for 2012/13 which examined our RFOportfolio and our people – staff, Committeesand advisers – in detail. The report also citedrelevant examples of other work we funded. A copy can be found athttp://www.artscouncilofwales.org.uk/arts-in-wales/engagement-and-participation/equality-and-diversity. Quarterly updates from bothgroups were provided to Council.

Our National Advisers are appointed throughan open recruitment process and bringspecialist knowledge to help support policydevelopment, the assessment of grantapplications, and to provide advice to officers.

We promote values of good governance:

We support Lord Nolan’s seven Principles forPublic Life and strive to ensure that all of ouremployees, Trustees, Committee members andNational Advisers apply and adhere to thesePrinciples.

To help support this, we have a Code of BestPractice which helps ensure the roles andresponsibilities of members and officers areclearly defined. It also contains the expectedstandards of propriety that members and staffshould adhere to. The Code was reviewed andupdated during the year. You can find a copyon our website.

We require each member of Council, of eachCommittee, and all National Advisers and staffto complete an annual declaration of intereststatement, and to ensure that changes incircumstances are promptly notified. Theregister of interests of Members of the Council,Committees and National Advisers is availablefor public inspection, by appointment, at eachof the Council’s offices during normal workinghours.

Written reports are circulated in advance ofeach Council and Committee meeting, forconsideration by members, with tabled itemsand verbal reports only accepted in exceptionalcircumstances. You can find copies of theagenda and minutes of our Council meetingson our website.

As part of our commitment to improving ourperformance, we are keen to learn from othercomparable public bodies. Working with HigherEducation Funding Council for Wales, we werethe first Welsh Government Sponsored Bodiesto hold reciprocal visits for the Chairs of Auditto attend each other’s Audit Committee asobservers.

Although the Corporate Governance codeissued by HM Treasury does not directly apply to Arts Council of Wales, as Accounting OfficerI am satisfied that the arrangements we have inplace reflect good practice. I also believe thatthe Arts Council has complied with theprinciples of accountability, effectiveness, andleadership expressed within the Treasury’sCode, in so far as they are relevant to WelshGovernment Sponsored Bodies and LotteryDistributors. Council endorses this view.

We take informed decisions:

The decisions taken by our Council andCommittees are informed by advice providedby staff of the Arts Council. Papers and reportsproduced by officers are expected to showclearly all the relevant information that isneeded to inform decisions. In the rare

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instances where the information provided doesnot meet the required standards, the paper isrejected, and a replacement commissioned.Where appropriate, advice from officers issupplemented with specialist advice from ourNational Advisers, and where relevant withspecialist expert advice and legal opinions.Council will continue to ensure that it hassufficient time to properly consider and debatepolicy and the future direction of theorganisation.

Council was content with the timeliness andquality of data and information provided for itsuse, and that the information provided inrespect of grant funding was reliable. Thesystems used to provide the information ongrants are reviewed annually as part of theinternal audit programme.

Key policy proposals are put out to publicconsultation. Responses and feedback furtherinform discussions at Council before polices arefinalised.

Matters considered by Council during the year:

Council met six times during 2013/14 todischarge its responsibilities. In total the fifteenmembers attended on 69 out of a possible 90occasions. Satisfactory explanations of absencewere received in all cases. Details of individualattendance can be found at the beginning ofthe Trustees’ Annual Report.

Creativity and the Arts, our arts developmentstrategy, sets out the key arts challenges in thenext few years, and forms the basis of the2013-2018 Corporate Plan. The developmentof the strategy was informed by a series of openmeetings – Sgwrs Gelfyddydol – withstakeholders and other interested parties.Members of Council were actively involved indriving forward this key piece of work.

As part of its governance responsibilities,Council received regular financial monitoringreports; updates on key areas of performance

including the Operational, Strategic Equalitiesand Welsh Language Plans; and monitoringreports on our portfolio of RFOs. Satisfactoryprogress was made on most areas, butregrettably we were unable to retain ourInvestors in People accreditation. We intend tore-apply in the next year.

Regular updates were provided on strategicallyimportant projects, including the high profile,and very successful, WOMEX13 and Venice2013 projects. There were also presentationsfrom our Portfolio Managers, from some of theNational Companies in the RFO portfolio, andfrom Coreo Cymru, the creative producer fordance in Wales.

Three RFOs experienced serious difficultiesduring the year. Council considered reports andrecommendations from officers and specialistadvisers in connection with these organisations.In certain cases, Council insisted on significantchanges in the organisations, as a condition ofcontinued funding, in order to try andsafeguard their futures. These organisations willall continue to be the subject of detailedmonitoring until such time as we feel confidentthat they have stabilised and are operationallysustainable.

Following the introduction of our neworganisational structure in May 2012, wecommissioned surveys of our external customersand stakeholders, and of our staff to helpinform an initial review of the effectiveness ofthe new arrangements. During 2014/15 we willbe considering where further work is needed,and responding accordingly.

Council’s annual self-assessment reviewconcluded it was satisfied that the vast majorityof its indicators of effectiveness had once againbeen met, and that it was content with progressmade during the year, and with the overalleffectiveness of the organisation. Allied to this,and as part of its commitment to excellence andcontinual improvement, Council intends toprioritise, over the coming year, policy and its

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enactment by deepening its relationship withSMT and other key staff, and further improvingthe alignment of strategy and budget setting.

We provide funding to third parties:

A key activity of the organisation is thedistribution of funding to the arts sector in Wales.We are a major distributor of funding – from theWelsh Government, the National Lottery andother sources, including European funds – andtake such responsibility very seriously.

We have developed appropriate systems andprocedures to support this key activity. Our grantmaking and monitoring processes are reviewedannually by our internal auditors to ensure theyremain fit for purpose. The Wales Audit Officealso examines our grant making activities eachyear. All recommendations made by our bothinternal and external auditors are monitored byour Audit Committee to ensure they areimplemented on a timely basis.

Decisions to award an organisation RevenueFunded Organisation (RFO) status are taken byCouncil based on the advice of, and supportedby, rigorous assessments carried out by officers.

Regular reports showing the risk assessment ofeach of our annually funded RFOs are producedfor Council. These are supported by a reportsetting out the key themes that emerged from theseries of annual review meetings held with eachRFO.

As indicated above, when necessary we take apro-active approach with organisations that runinto difficulties, and invest time and energy tohelp them resolve matters of concern.

We publish annual guidelines for each of ourLottery funded grant programmes. You can finddetails on our website.

We have open and transparent applicationprocesses for all of our grant fundingprogrammes, and rigorous assessment, decision

making, and monitoring processes for all of thefunding we award to artists and artsorganisations.

We take a risk-based approach to ourassessment of applications and monitoring ofgrants awarded. We use information collectedfrom grant recipients as part of our monitoringprocedures to ensure that the stated outcomesfor which we provided funding were, in the end,actually achieved.

Council takes fraud, corruption andmaladministration very seriously and has policiesto prevent, and deal with, such occurrences,including Whistle-blowing and Anti-fraudpolices.

A full list of grants offered during the financialyear can be found in the annex to this Reportand Financial Statements.

Our approach to risk management:

Council takes a considered view of risk in linewith its responsibilities both as a publicly-fundedbody and the nature of the sector it serves.

It recognises that any ambitious developmentalstrategy has to accept the potential of some riskof failure to achieve policies, aims andobjectives. Our aim is to promote a moreinnovative, less risk-averse culture in order thatwe can support artists, organisations andprojects to deliver our objectives.

We need to balance our duty to innovate withthe ever-increasing need to maximise thebenefits of our investment for the sector and forthe public. We need to take appropriate butconsidered risks on occasions, and toacknowledge that there might be occasionalfailures. However, we would not behaverecklessly, nor would we wilfully squander publicmoney nor endanger our reputation forprudence.

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We have a system of internal control which hasbeen designed to identify and prioritise the risksthat could prevent us achieving Council’spolicies, aims and objectives. It evaluates thelikelihood of the risks being realised, considersthe impact should they occur, and seeks tomanage them efficiently, effectively andeconomically. However, we recognise our systemof internal control can only manage risk to areasonable and appropriate level, and cantherefore only provide reasonable and not anabsolute assurance of effectiveness.

We are always looking to improve our internalcontrol systems, to ensure they help us achieveour funding and strategic goals. A key initiativewhich came to fruition during the year was thedevelopment and implementation of aCorporate Assurance Framework, overseen byour Audit Committee. The framework is used toidentify the robustness of the underlying controlsand assurance processes used to identify andmanage key strategic risks. Any aspects thatneed strengthening are highlighted so thatappropriate action can be taken.

Key risks facing the Arts Council:

Looking ahead, there are, however, a number ofkey risks facing us in the next year or so.

The most significant strategic risk in theimmediate future is the impact of cuts to publicexpenditure and the potential impact this mayhave on the wider arts sector. Our own budgetsare under pressure. We have had to reduce thelevel of annual revenue funding to our RFOportfolio, as well as finding further savings in ourown running costs. Local Authorities also have totake difficult decisions and there is growingevidence that the level of support they havepreviously provided to the arts sector will suffer.This could have serious consequences for thearts infrastructure across Wales. We are closelymonitoring the situation and, where we are ableto, will address issues where we are a keyfunder, or where we can have direct influence.

We have two large Lottery funded capital

projects in progress. Both, for differing reasons,have experienced difficulties during the year, andare being closely monitored with the help ofindependent specialists using our rigorousmonitoring procedures. Each of the other capitalprojects we are involved in is also being closelymonitored.

The sharp increase in our Lottery income inrecent years presented challenges in terms ofincreasing the level of commitments, with aresultant increase in the level of our balancesheld within the National Lottery DistributionFund. We have begun to address this, but we arenow beginning to see a reduction in incomelevels. Although manageable currently, if thisproves to be a sustained downward trend we willneed to re-assess our strategic priorities for grantawards for the next few years. We are closelymonitoring the situation.

Earlier in the year our Chair was invited to leada review into the state of arts education in Welshschools. The Welsh Government accepted themain recommendations in the Arts & Educationin the Schools of Wales report in March 2014,and we look forward to playing a significant rolein its implementation. The scale of the changesproposed is ambitious and it is likely that thescale and complexity of the programme neededwill involve us in a number of majordevelopments. We welcome the opportunity, butalso recognise the need to manage carefully themany risks such an initiative will bring.

Later this year the Welsh Government is expectedto introduce its Future Generations Bill and itscommitment to sustainability duty. We havepreparatory work underway to ensure we areable to fully discharge our duties when they takeeffect in April 2015.

Security of data:

We hold large amounts of data, and treat ourobligations under the Data Protection Actseriously. Our ICT systems and controls ensurethat the security of data is tightly controlled. Weregularly assess our security arrangements and

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have taken steps to make them more robust. Wewill continue to monitor them closely.

Neither the high level review over ICT controlscarried out by our external auditors, nor ourprogramme of internal audit reviews carried outduring the year, highlighted any matters ofconcern in this area. To the best of my knowledgeand belief, no loss of data occurred during theyear.

Ministerial directions:

As a Welsh Government Sponsored Body we aresubject to non-statutory instruments, containingappropriate directions. No Directions were issuedto us during the year, nor were we issued withany Ministerial Directions in respect of our Lotteryactivities.

Control issues identified during the year:

Our internal audit service is provided by DeloitteLLP under the guidance of a nominated Head ofInternal Audit, working to the Public SectorInternal Audit Standards.

Audit Committee agrees a programme of reviewscovering the period of appointment of ourinternal auditors. Priorities for each year arereviewed annually, and contain audits of keybusiness activities, as well as examining keyareas of potential risk to the organisation. Thereviews are designed to provide assurance and toassist management by identifying improvementswhere they are considered necessary.

Ten internal audit reviews were carried out duringthe year. Of these one was the annual follow upreview of previous recommendations and threewere advisory reviews. The remaining six reviewsresulted in either substantial or full levels ofassurance. All recommendations raised byinternal audit are reported to AuditCommittee which monitors them to ensureappropriate action is taken on a timely basis.

The internal auditors concluded that their overallassessment of the review of Corporate

Governance provided full assurance and inrespect of risk management, substantialassurance.

The internal auditors provided the followingopinion on the adequacy and effectiveness of theCouncil’s arrangements in their Annual Report:

“Based on the work we have undertakenduring the year, we are able to conclude thatthe Arts Council of Wales (the Arts Council)has a basically sound system of internalcontrol, which should provide substantialassurance regarding the achievement of theArts Council’s objectives.”

The findings of the National Audit Office andWales Audit Office’s annual audits are reportedin an Additional Assurance Report andManagement Letter addressed to Council. A copyis provided to the Permanent Secretary of theWelsh Government. The Audit Committeeconsiders the findings and monitors them toensure appropriate action is taken on a timelybasis.

Overall assessment of governance and internalcontrol:

In my opinion, the Arts Council of Wales’ systemsof governance and internal control are sufficientto enable me to discharge my responsibilities asAccounting Officer.


Endorsed on behalf of Council:


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The Certificate and Report of the Comptroller and Auditor General to The Housesof Parliament and the Members of the National Assembly for Wales

I certify that I have audited the financialstatements of the Arts Council of Wales LotteryDistribution Account for the year ended 31March 2014 under the National Lottery etc. Act1993. The financial statements comprise: theStatements of Comprehensive Net Expenditure,Financial Position, Cash Flows, Changes inEquity; and the related notes. These financialstatements have been prepared under theaccounting policies set out within them. I havealso audited the information in theRemuneration Report that is described in thatreport as having been audited.

Respective responsibilities of the Council,Accounting Officer and auditor

As explained more fully in the Statement ofCouncil’s and the Accounting Officer’sResponsibilities, the Arts Council of Wales andthe Accounting Officer are responsible for thepreparation of the financial statements and forbeing satisfied that they give a true and fair view.My responsibility is to audit, certify and report onthe financial statements in accordance with theNational Lottery etc. Act 1993. I conducted myaudit in accordance with International Standardson Auditing (UK and Ireland). Those standardsrequire me and my staff to comply with theAuditing Practices Board’s Ethical Standards forAuditors.

Scope of the audit of the financial statements

An audit involves obtaining evidence about theamounts and disclosures in the financialstatements sufficient to give reasonableassurance that the financial statements are freefrom material misstatement, whether caused byfraud or error. This includes an assessment of:whether the accounting policies are appropriateto the Arts Council of Wales Lottery DistributionAccount’s circumstances and have beenconsistently applied and adequately disclosed;the reasonableness of significant accountingestimates made by the Arts Council of Wales;and the overall presentation of the financial

statements. In addition I read all the financialand non-financial information in the Trustees’Annual Report and Strategic Report to identifymaterial inconsistencies with the auditedfinancial statements and to identify anyinformation that is apparently materiallyincorrect based on, or materially inconsistentwith, the knowledge acquired by me in thecourse of performing the audit. If I becomeaware of any apparent material misstatementsor inconsistencies I consider the implications formy certificate

I am required to obtain evidence sufficient togive reasonable assurance that the expenditureand income recorded in the financial statementshave been applied to the purposes intended byParliament and the financial transactionsrecorded in the financial statements conform tothe authorities which govern them.

Opinion on regularity

In my opinion, in all material respects theexpenditure and income recorded in thefinancial statements have been applied to thepurposes intended by Parliament and thefinancial transactions recorded in the financialstatements conform to the authorities whichgovern them.

Opinion on financial statements

In my opinion:

• the financial statements give a true and fairview of the state of the Arts Council of WalesLottery Distribution Account’s affairs as at 31March 2014 and of the net expenditure forthe year then ended; and

• the financial statements have been properlyprepared in accordance with the NationalLottery etc. Act 1993 and Secretary of Statedirections issued thereunder with the approvalof HM Treasury.

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Opinion on other matters

In my opinion:

• the part of the Remuneration Report to beaudited has been properly prepared inaccordance with Secretary of State directionsmade with HM Treasury approval under theNational Lottery etc. Act 1993; and

• the information given in the Trustees’ AnnualReport and Strategic Report for the financialyear for which the financial statements areprepared is consistent with the financialstatements.

Matters on which I report by exception

I have nothing to report in respect of thefollowing matters which I report to you if, in myopinion:

• adequate accounting records have not beenkept or returns adequate for my audit havenot been received from branches not visitedby my staff; or

• the financial statements and the part of theRemuneration Report to be audited are notin agreement with the accounting recordsand returns; or

• I have not received all of the information andexplanations I require for my audit; or

• the Governance Statement does not reflectcompliance with HM Treasury’s guidance.

Report

I have no observations to make on thesefinancial statements.

Sir Amyas C E MorseComptroller and Auditor General14 July 2014

National Audit Office157-197 Buckingham Palace RoadVictoriaLondonSW1W 9SP

The maintenance and integrity of the ArtsCouncil of Wales’s website is the responsibilityof the client; the work carried out by auditorsdoes not involve consideration of these mattersand accordingly auditors accept noresponsibility for any changes that may haveoccurred to the financial statements since theywere initially presented on the website.

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Statement of Comprehensive Net Expenditurefor the year ended 31 March 2014

2014 2013Notes £’000 £’000 £’000 £’000

ExpenditureManagement and administration:Staff costs 2 1,039 952Other operating costs 4a 612 607

1,651 1,559Irrecoverable grants:Increase/(Decrease) in provision for doubtfuldebts 3 2

Expenditure on the arts:Grant commitments made (hard)1 15,562 12,480Less: Lapsed and revoked commitments (hard)1 (203) (379)Net grant commitments made (hard)1 9b 15,359 12,101Delegated distributors 8, 11 1,835 1,200Other arts awards 5 150 208Direct costs of grant making 4b 25 11

17,369 13,520

Statutory transfer to Olympic Lottery Distribution Fund 6 - 1,010

Total expenditure 19,023 16,091

IncomeShare of proceeds from the National Lottery 6 16,892 19,355Investment income on balances in theNational Lottery Distribution Fund 6 78 103Interest receivable 7 6Grants recoverable 67 21Total income 17,044 19,485

Net (expenditure)/income (1,979) 3,394

Other Comprehensive IncomeNet unrealised gain/(loss) on the revaluation of investment in the National Lottery Distribution Fund 6 (290) 2

Total Comprehensive (Expenditure)/Income for the year (2,269) 3,3961 See note 1d for details of the different categories of grant commitments

There are no discontinued activities and there have been no acquisitions during the year.There are no gains or losses other than those shown above.The notes on pages 143 to 155 form part of these financial statements.

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Statement of Financial Positionas at 31 March 2014

31 March 31 March2014 2013

Notes £’000 £’000 £’000 £’000

Non-current assets:Trade and other receivables 7a 150 150

Current assets:Financial assets:

Investments - balance held in theNational Lottery Distribution Fund 6 20,264 20,601

Trade and other receivables 7b 77 71Cash and cash equivalents 10c 1,308 1,739

Total current assets 21,649 22,411Total assets 21,799 22,561

Trade payables and other current liabilities – amounts falling due within one year:Trade and other payables 8 (262) (79)Other liabilities:Delegated distributors 8 (462) (416)Provision for grant commitments (hard)1 8, 9b (11,713) (8,361)

Total payables and other current liabilities (12,437) (8,856)

Non-current assets plus net current assets 9,362 13,705

Trade payables and other liabilities – amounts due after more than one year:

Provision for grant commitments fallingdue after more than one year (hard)1 9b (1,436) (3,510)

Assets less liabilities 7,926 10,195

Equity/Reserves:

Net Expenditure account 7,926 10,195

1See note 1d for details of the different categories of grant commitments

The notes on pages 143 to 155 form part of these financial statements.The financial statements were approved by the Arts Council of Wales and signed on its behalf by

Nicholas Capaldi, Accounting Officer Professor Dai Smith, Chairman11 July 2014 11 July 2014

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Statement of Cash Flowsfor the year ended 31 March 2014

2014 2013Notes £’000 £’000

Cash flows from operating activitiesFunds drawn down from the National Lottery Distribution Fund 6 17,017 13,415Other cash receipts 31 9Grants paid 9b (14,081) (8,306)Cash paid to and on behalf of employees (988) (958)Other cash payments (628) (1,230)Payments to delegated distributors 8a (1,789) (1,225)Net cash inflow/(outflow) from operating activities 10a (438) 1,705

Cash flows from investing activitiesInterest received 7 6Net cash inflow from investing activities 7 6

Net increase/(decrease) in cash and cash equivalents in the period 10b (431) 1,711

Statement of Changes in Equityfor the year ended 31 March 2014

2014 2013£’000 £’000

Balance at beginning of year 10,195 6,799

Net income/(expenditure) for the year (2,269) 3,396

Balance at end of year 7,926 10,195


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1 Accounting policies

a Basis of preparation

These financial statements are prepared underthe historical cost convention. They have beenprepared in accordance with Section 35 of theNational Lottery etc. Act 1993 (as amended bythe National Lottery Act 1998) in the form andon the basis determined by the Secretary ofState for Culture, Media and Sport.

These financial statements have been preparedin compliance with International FinancialReporting Standards (IFRS).

Under separate Accounts Directions theaccounting treatment of general and lotterygrants differs significantly so, with due regardto paragraph 359 of the Charity Commission’sStatement of Recommended Practice (revised2005), in the judgment of the Trustees theproduction of a consolidated account isinappropriate as it would not provide a trueand fair view of the application of theCouncil’s resources.

b Recognition of income and expenditure

All income is accounted for on an accrualsbasis. All expenditure is accounted for on anaccruals basis and has been classified underheadings that aggregate all costs related to thecategory. Where costs cannot be directlyattributed to particular headings they havebeen allocated to activities on a basisconsistent with use of the resources.

c General activities

These financial statements do not cover theCouncil's general activities, funded mainly bygrant-in-aid, for which separate financialstatements have been prepared.

d Grant commitments

A distinction is made in respect of grants madeby the Lottery distributors between 'hardcommitments' and 'soft commitments'. Hardcommitments, which are charged as

expenditure in the financial statements, arisewhen the Council has made a formal offer ofgrant which (together with appropriateconditions) has been accepted by the recipient.Soft commitments, which are recorded in anote to the financial statements, arise when theCouncil has agreed in principle to fund aproject and made an offer but, at the year end,the offer has not been accepted formally by therecipient.

Hard commitments payable within one year ofthe year end are recognised in the Statementof Financial Position as current liabilities. Thosepayable more than one year after theStatement of Financial Position date are shownas such.

e National Lottery Distribution Fund

Balances held in the National LotteryDistribution Fund remain under thestewardship of the Secretary of State forCulture, Media and Sport. However, the shareof such balances attributable to the Council isshown in the accounts at market value and, atthe Statement of Financial Position date, hasbeen notified by the Secretary of State forCulture, Media and Sport as being availablefor distribution by the Council in respect ofcurrent and future commitments.

It is appropriate to classify the National LotteryDistribution Fund investments as ‘available forsale’, being in line with the Department forCulture, Media and Sport accounting policy,and this accounting treatment is appropriate tothe Council. The policy is that investments areheld at fair value with any unrealised profit orloss recognised through reserves.

f Pensions

The Council is an admitted employer of theArts Council Retirement Plan 1994. Thepension scheme provides defined benefits toCouncil employees. The costs of the Council'scontributions are charged to the Statement ofComprehensive Net Expenditure so as tospread the cost of pensions over employees'working lives.

Notes forming part of the financial statements

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2 Staff costs 2014 2013£'000 £'000

Wages and salaries charged to Lottery distribution activity 814 739Social security costs 73 62Other pension costs 146 148Agency costs 6 2Redundancy payments - 1

1,039 952

The average number of staff (full time equivalents) employed across the whole Council during the year was:

No No

Direct delivery of our activities 11 14Recharged to direct delivery and in support of our operations 65 67Agency staff 1 -

77 81

Based on time apportionments, the average number of staff (full timeequivalents) employed on Lottery distribution during the year was:In support of our operations 22 23

The balance of 55 (2012/13: 58) staff were employed on general activities.

The fund is a defined benefit, multi-employerscheme so the Council is unable to identify itsshare of the underlying assets and liabilities.The scheme has therefore been accounted foras if it were a defined contribution scheme, inaccordance with IAS 19.

The Council also introduced a definedcontribution scheme, The People’s Pension,effective 1 May 2014, as an alternative optionto meet the needs of Auto Enrolmentlegislation. The scheme is accounted for inaccordance with IAS 19.

g Taxation

Non-recoverable Value Added Tax arising fromexpenditure is charged to the Statement ofComprehensive Net Expenditure or capitalisedas a fixed asset where applicable.

h Apportionment of management andadministration costs from the General ActivitiesAccount

The Council incurs costs which support both itsgeneral activities and lottery distributionfunctions. In accordance with its FinancialDirections the Council apportions indirect costsproperly between these two areas of activitywith reference to the time spent on, or theconsumption of, the relevant resources by therespective activities.

i Financial Instruments

Financial assets: Trade receivables and othercurrent assets do not carry any interest and arestated at their nominal value as reduced byappropriate allowances for estimatedirrecoverable amounts. Cash and cashequivalents comprises cash in hand and cashat bank and on short term deposit on instantaccess terms.

Financial liabilities: Trade payables and othercurrent liabilities are not interest bearing andare stated at their nominal value.

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The Council was also required to contribute aminimum payment of £48,000 towards thedeficit during 2013/14.

From April 2014 the Council’s contributions onbehalf of its employees increased to 22.0% (forthose who joined up to 31 August 2006),20.0% (for those who joined betweenSeptember 2006 and March 2010), and17.5% (for those joining from April 2010). Theminimum contribution to the deficit increasedto £48,700 per annum from April 2014.

The Council also pays 0.2% of pensionablesalary in respect of each life assurance onlymember.

Under Auto Enrolment legislation all eligibleemployees are required to join a qualifyingpension scheme, unless they formally opt out.We introduced a defined contribution scheme,The People’s Pension, as an alternative optionfor employees that were not members of theACRP.

We auto-enrolled all eligible employees intoThe People’s Pension on 1 May 2014, ourofficial staging date. The Council contributes4% and the employee 1%. These rates willchange in the future, in line with therequirements of the legislation.

3 Pension costs

Most employees are members of the ArtsCouncil Retirement Plan 1994 (ACRP). Thefund is a defined benefit scheme. It is also amulti-employer scheme so the Council isunable to identify its share of the underlyingassets and liabilities. The scheme has thereforebeen accounted for as if it were a definedcontribution scheme, in accordance with IAS 19.

An independent actuarial valuation of theACRP normally takes place every three years.The most recent valuation, as at 31 March2013, came into effect on 1 April 2014. Thevaluation introduced new contribution rates forthe Council in respect of accruing benefits, andalso requires a minimum level of payment tobe made each year towards the past servicedeficit, at a rate advised by the schemeactuary. In order to eliminate the deficit, theactuary recommended increased employercontributions over the next 9 years, comparedto the 13 years used previously.

On the assumption that the recommendedamounts would be paid to the Plan, theactuary’s opinion was that the resources of thescheme are likely in the normal course ofevents to meet in full the liabilities of thescheme as they fall due. The main actuarialassumptions used were: that price inflationwould be 2.75% per annum; pay increaseswould be 1.5% per annum for the first 5 yearsand 3.5% thereafter; pension increases wouldbe 2.75% per annum on pensions in excess ofGuaranteed Minimum Pensions (GMPs);pension increases of deferred pensions wouldbe 2.75% per annum on pensions accruedbefore April 2009 and 2.5% on pensionsaccrued after that date, both subject tostatutory revaluations; the past service discountrate would be 4.8% per annum and the futureservice discount rate would be 4.8% perannum.

Contributions by the Council and its employeeswere:

For staff joining the Plan: Council Employees2014 2013 2014 2013

on or before 31 August 2006 19.3% 19.3% 1.5% 1.5%from 1 September 2006 to 31 March 2010 17.3% 17.3% 3.5% 3.5%on or after 1 April 2010 14.8% 14.8% 6.0% 6.0%

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4 Costs in support of our operations 2014 2013£’000 £’000

a Management and administration: Other operating costsStaff related costs 75 62Organisational review - 27Infrastructure 236 249Lottery promotion 11 13Office running costs 29 25Professional fees 88 72Irrecoverable VAT 79 78Charge for use of fixed assets 48 41Auditor's remuneration – Audit1 19 17Auditor's remuneration – Under accrual in previous year 1 -Internal audit 8 8Council meetings, including Members' travel and subsistence 18 15

612 6071 The audit fee is for audit services and no non-audit services were provided.

Management and administration costs are apportioned between the Council’s general activities andLottery distribution accounts with reference to the time spent on, or the consumption of, the relevantresources by the respective functions. The rates applied differ according to the expenditure headingand geographical region but the average charge to Lottery activities was 39.95% (2012/13: 41.5%).

b Expenditure on the arts: Direct costs of grant making 2014 2013£'000 £’000

Assessors’ fees 20 11Creative Wales Awards – scheme expenses 5 -

25 11

5 Other arts awards 2014 2013£'000 £’000

Cross Border Touring 150 150Beyond Borders awards in association with the PRS Foundation - 40Unlimited awards for the London 2012 Cultural Olympiad in association with Arts Council England - 18

150 208

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6 National Lottery Distribution Fund2014 2013£'000 £'000

Balance held in the National Lottery Distribution Fund (NLDF) at 1 April 20,601 15,566Allocation of Lottery proceeds 16,892 19,355Investment income receivable 78 103Payments to the Olympic Lottery Distribution Fund - (1,010)Adjustment to previous year’s unrealised gain/(loss) on investment in NLDF - 2Unrealised loss on investment in NLDF during the year (290) -Drawn down in the year (17,017) (13,415)Balance held in the National Lottery Distribution Fund at 31 March 20,264 20,601

The balance held at 31 March 2014 at the National Lottery Distribution Fund may be subject tochange as the audit of the Fund is incomplete. Any adjustments arising from that audit will bereflected in the Council’s 2014/15 accounts.

In February 2008 a statutory instrument (SI 2008 No. 255 The Payments into the Olympic LotteryDistribution Fund etc. Order 2008) was passed which allowed for the transfer of up to£1,085,000,000 from the National Lottery Distribution Fund to the Olympic Lottery Distribution Fundin order to meet some of the costs of hosting the 2012 games. This comprises £410,000,000 asoriginally envisaged when the Government decided to support London’s Olympic bid in 2003, and a proposed further £675,000,000 arising from the subsequent budget review.

The Council was committed to contribute up to £3,552,000 in the original bid and this order allowedfor the transfer of up to a further £4,509,000.

During 2013/14 there were no further transfers (2012/13: £1,010,000).

7 Trade and other receivables 2014 2013£'000 £'000

a Non-current assets

Analysis by typeOther receivables 150 150

Intra-government balancesBalances with bodies external to government 150 150

b Current assets

Analysis by typeDue from the Arts Council of Wales General Activities account 38 64Grants recoverable 63 28Less: Specific provision for doubtful debts (24) (21)

77 71

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2014 2013£'000 £'000

Intra-government balancesBalances with other central government bodies 38 64Balances with local authorities - 3Balances with bodies external to government 39 4

77 71

8 Trade payables and other current liabilities – amounts falling due within one year

a Analysis by type

Trade and other payables:Trade payables - 1Due to the Arts Council of Wales General Activities account1 243 41Accruals and deferred income 19 37

Sub-total: Trade and other payables 262 79Other liabilities:Delegated distributors2 462 416Provision for grant commitments (hard) (note 9b) 11,713 8,361

Sub-total: Other liabilities 12,175 8,777

Total current liabilities 12,437 8,856

1 The amount due to the Arts Council of Wales General Activities account is made up of:Recharges of apportioned costs- Staff 136 -- Overheads 59 -- Charge for use of assets 48 41

243 41

2 The Council has delegated Lottery funds to Ffilm Cymru Wales (for film) and to Nesta (for Digital Research & Development projects):

Ffilm 2014 2013Cymru Wales Nesta Total Total

£'000 £'000 £'000 £'000Undrawn funds at 1 April 416 - 416 441Allocation of funds during the year 1,400 435 1,835 1,200

1,816 435 2,251 1,641Drawn down in the year (1,354) (435) (1,789) (1,225)Undrawn funds at 31 March 462 - 462 416

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2014 2013£'000 £'000

b Intra-government balances

Balances with central government bodies 266 101Balances with local authorities 3,031 2,200Balances with NHS bodies 55 90Sub-total: Intra-government balances 3,352 2,391Balances with bodies external to government 9,085 6,465Total creditors 12,437 8,856

9 Grant commitments2014 2013

a Soft commitments £'000 £'000 £’000 £'000Revenue

Capital schemes Total Total

Soft commitments at 1 April 88 251 339 864Soft commitments made in the year 2,371 15,707 18,078 11,958Total grant offers made 2,459 15,958 18,417 12,822Offers not accepted - (25) (25) (3)Soft commitments transferred to hard commitments (2,420) (13,142) (15,562) (12,480)Soft commitments at 31 March 39 2,791 2,830 339

b Hard commitments

Hard commitments at 1 April 6,461 5,410 11,871 8,076Hard commitments in the year 2,420 13,142 15,562 12,480Amounts not taken up (27) (176) (203) (379)Charged to Statement of Comprehensive Net Expenditure1 2,393 12,966 15,359 12,101Grants paid in the year (2,239) (11,842) (14,081) (8,306)Hard commitments at 31 March2 6,615 6,534 13,149 11,871

Falling due within one year to:Other central government bodies - 23 23 60Local authorities 2,424 607 3,031 2,200NHS bodies - 55 55 90Bodies external to government 3,555 5,049 8,604 6,011

5,979 5,734 11,713 8,361

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2014 2013£'000 £'000 £’000 £'000

Revenue Capital schemes Total Total

Falling due after more than one year to:Other central government bodies - - - 7Local authorities 636 164 800 833NHS bodies - - - 10Bodies external to government - 636 636 2,660

636 800 1,436 3,510

Total 6,615 6,534 13,149 11,871

1 Grants to public bodies 2,141 1,582Grants to private bodies 13,218 10,519

15,359 12,101

2 Ageing of hard commitments:2013/14 - - - 8,3612014/15 5,979 5,734 11,713 3,4232015/16 636 673 1,309 872016/17 - 127 127 -

6,615 6,534 13,149 11,871

10 Cash flow reconciliation 2014 2013£’000 £’000

a Reconciliation of net income to net cash flow from operating activitiesNet income/(expenditure) (2,269) 3,396Bank interest (7) (6)(Increase)/Decrease in the balance held in the National Lottery Distribution Fund 337 (5,035)(Increase)/Decrease in trade and other receivables (6) (68)Increase /(Decrease) in trade and other payables and other liabilities 229 (377)Increase/(Decrease) in provision for grant commitments 1,278 3,795Net cash inflow/(outflow) from operating activities (438) 1,705

b Reconciliation of net cash flow to movements in net funds

Increase/(Decrease) in cash and cash equivalents (431) 1,711Increase/(Decrease) in the balance held in the National Lottery Distribution Fund (337) 5,035

(768) 6,746Net funds at 1 April 22,340 15,594Net Funds at 31 March 21,572 22,340

151

c Cash and cash equivalents 2014 2013£’000 £’000

Balance at 1 April 1,739 28Net change in cash and cash equivalent balances (431) 1,711Balance at 31 March 1,308 1,739

The following balances at 31 March were held at:Commercial banks, instant access deposit and cash in hand 1,308 1,739

11 Delegated Lottery distributors

Ffilm Cymru WalesA delegation agreement with Ffilm Cymru Wales is in place, and fully operational, for the purpose of the distribution of Lottery funds. The following Lottery distribution information is extracted from the unaudited draft financial statements1 of Ffilm Cymru Wales for the year ended 31 March 2014:

£’000Reserves at 1 April 2013 507Incoming funds: Arts Council of Wales 1,400Incoming funds: Other 187Grants and direct expenditure (1,643)Operating costs (363)Reserves at 31 March 2014 88

Details of grant commitments at 31 March 2014:Hard commitments 1,438Soft commitments -

1,438

1 The draft financial statements will be audited in July 2014 and are expected to be approved by the Board in September 2014.

Other delegated distributorsDelegation agreements are also in place with Nesta, BBC Cymru Wales, and Literature Wales for the distribution of Lottery funds in support of specific strategic initiatives. There were no transactions with BBC Cymru Wales or Literature Wales during 2013/14. The transactions with Nesta were not material in the context of Nesta’s financial statements for the year.

Full lists of the grants administered by the Ffilm Cymru Wales and Nesta are included in the annexes to this Annual Report.

152

12 Events after the reporting period

Authorisation of these financial statements forissue

The financial statements were authorised forissue by the Accounting Officer on the samedate as the Comptroller and Auditor Generalcertified them.

13 Financial instruments

International Financial Reporting Standard 7,Financial Instruments: Disclosures, requiresdisclosure of the role which financialinstruments have had during the period increating or changing the risks the Council’sfunction faces in undertaking its role.

Liquidity risks – In 2013/14 £16,892,000 or99.1% of the Council’s Lottery distributionincome was derived from the National Lottery(2012/13: £19,355,000 or 99.3%). Of theremaining income £78,000 or 0.5% wasderived from investment returns from thebalance held with the National LotteryDistribution Fund (2012/13: £103,000 or0.6%) and £74,000 or 0.4% from otherinvestment income and sundry income(2012/13: £27,000 or 0.1%). The Councildoes not consider that its Lottery Distributionfunction is exposed to any significant liquidityrisk, and is satisfied that the balance withinthe National Lottery Distribution Fund andprojected future Lottery proceeds are sufficientto meet its hard commitments.

Interest rate risks – The financial assets of theLottery are invested in the National LotteryDistribution Fund, which invests in a narrowband of low risk assets such as governmentbonds and cash. The Council has no controlover the investment of funds in the NationalLottery Distribution Fund. Cash and cashequivalents which are drawn down from theFund to pay grant commitments andoperating costs are held in an instant access,variable rate bank account which on average

carried an interest rate of 0.38% in the year(2012/13: 0.56%). Surplus daily fundsinvested in the Public Sector Deposit Fund onaverage carried an investment return of0.34% in the year (2012/13: n/a). The cashand cash equivalents balance at the year endwas £1,308,000 (2013: £1,739,000). TheCouncil does not consider that its LotteryDistribution function is exposed to significantinterest rate risks.

Foreign currency risk – The lottery distributionfunction of the Council is not exposed to anysignificant foreign exchange risks.

Cash flow risk – The Council is not exposed toany significant cash flow risks.

14 Related party transactions

Public bodies

The Council is a Welsh Governmentsponsored body.

The National Assembly for Wales/WelshGovernment is regarded as a related partyand details of transactions with the NationalAssembly for Wales/Welsh Government aregiven in the separate accounts covering theCouncil’s general activities.

The National Lottery Distribution Fund isadministered by the Department for Culture,Media and Sport which is regarded as arelated party. During the year the Council hadno material transactions with the Departmentfor Culture, Media and Sport other than thoseshown in the Statement of Comprehensive NetExpenditure.

Delegated Lottery distributors

As disclosed in note 11, the Ffilm CymruWales, Nesta, BBC Cymru Wales andLiterature Wales are delegated distributors ofthe Council’s Lottery funding. During the yearthe Council had no material transactions with

153

them other than those shown in the Statementof Comprehensive Net Expenditure.

Individuals

Members of Council, staff or other relatedparties (being close family members)undertook financial transactions (listed below)with the Council in its role as Lotterydistributor. Financial transactions with theCouncil in respect of its general activities arerecorded in the separate accounts coveringthose activities.

Council members

A number of Council members and/or theirclose family were members of the Boards ofManagement (or equivalent) or were senioremployees of organisations offered Lotterygrants or other payments by the Council in2013/14. In all such cases, in accordancewith the Council’s Code of Best Practice, themember concerned withdrew from anymeeting during discussion of the application.


of 31 March 2014

£ £Emma EvansTrustee/Director Creu Cymru Grant (3) 364,704 316,687

Dr John GeraintBursary recipient Literature Wales Grant (2) 105,000 10,000 (family member)

Margaret Jervis Director of Operations Valleys Kids Grant (1) 20,000 Nil

Richard TurnerChairman South Wales Intercultural Grant (2) 28,893 14,545

Community ArtsBusiness Consultant Tanja Råman+dbini industries Grant (3) 44,640 28,500

(TaikaBox) Business Consultant Jukebox Grant (1) 336,683 316,141 Business Consultant Butetown History & Arts Centre Grant (1) 240,000 195,000

Alan WatkinBoard Member Clwyd Theatr Cymru Grant (4) 135,826 114,451

John C WilliamsEmployee Theatr Iolo Grant (3) 87,000 6,089 Employee Cardiff Metropolitan University Grant (1) 10,800 1,080 Chair Tanja Råman+dbini industries Grant (3) 44,640 28,500

(TaikaBox)Board Member Run Ragged Productions Grant (1) 28,705 2,870

Prof Gerwyn WiliamsEmployee Bangor University Grant (6) 197,612 84,501

154


of 31 March 2014

£ £Osi Rhys OsmondTrustee Oriel Q, Narberth Grant (1) 30,000 16,500 Trustee Josef Herman Foundation Grant (1) 21,850 2,188 Employment Swansea Metropolitan University Grant (2) 41,375 Nil

Dr Lesley HodgsonTrustee Merthyr Tydfil Global Village Grant (1) 5,000 Nil

Dr Kate WoodwardCommittee member Aberystwyth University / Grant (3) 42,000 37,000

Aberystwyth Arts CentreBoard member Audiences Wales Grant (1) 10,800 1,080(family member)Employment Theatr Genedlaethol Cymru Grant (2) 106,700 95,000 (family member)

Marian Wyn JonesBoard Member Canolfan Gerdd William Mathias Grant (2) 35,000 3,000 Member Bangor University Grant (6) 197,612 84,501

Melanie HawthorneEmployment University of South Wales Grant (2) 10,130 890

Staff

A number of members of staff and/or their family were members of the Boards of Management (or equivalent) or senior employees of organisations who were offered grants or other payments from the Council in 2013/14. In all such cases, in accordance with the Council’s Code of Best Practice, the member of staff took no part in any discussion of the application or decision-making meeting.

Staff member Organisation Transaction Total Total balanceRole (number) value outstanding

of 31 March 2014

£ £Nathalie CamusBoard Member Mostyn Gallery Grant (3) 109,666 79,666(family member)

Kath DaviesEmployment St David’s Hall Grant (4) 206,263 174,263(family member)Scholarship Ballet Cymru Grant (3) 93,140 62,306(family member)

155

Staff member Organisation Transaction Total Total balanceRole (number) value outstanding

of 31 March 2014

£ £Michael GoodeAdvisory Panel It’s My Shout Grant (2) 57,172 28,985memberSecretary Cardiff Arts Collective Grant (1) 16,485 1,648

Eluned HâfDirector Canolfan Gerdd William Mathias Grant (2) 35,000 3,000(family member)

Olivia HarrisUnpaid Producer Kitsch & Sync Collective Grant (1) 6,500 650

Nia Wynn JonesVolunteer - Taking Flight Theatre Grant (6) 125,164 85,141Press/Marketing

Duncan LackieBoard Member Congress Theatre Cwmbran Grant (1) 50,000 50,000(family member)

Betsan MosesCouncillor Carmarthenshire County Council Grant (1) 618 Nil(family member)Board Member Oriel Myrddin Grant (1) 7,500 7,500(family member)

Antony Owen-HicksBand Member Carreg Lafar Grant (1) 4,750 Nil(staff and family member)

Hywel TudorShort-term Orchard Media Grant (2) 125,802 125,802Freelance work(family member)

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National Lottery Policy Directions

The Welsh Ministers, in exercise of the powersconferred by section 26(1) of the NationalLottery etc. Act 1993, and having consulted withthe Arts Council of Wales pursuant to Section26(5) of that Act, have issued the followingDirections:

1. In these Directions any reference to a sectionis a reference to a section of the NationalLottery etc. Act 1993 as amended by theNational Lottery Act 1998.

2. The Arts Council of Wales shall take intoaccount the following matters in determiningthe persons to whom, the purposes forwhich and the conditions subject to which itdistributes money under section 25(1):

Generic

A the need to ensure that money is distributedunder section 25(1) for projects whichpromote the public good or charitablepurposes and which are not intendedprimarily for public gain;

B the need to ensure that it considersapplications which relate to the completerange of activities falling within section22(3)(b) and in respect of which it has thepower to distribute money, taking intoaccount:

i its assessment of the needs of the arts and arts activities and its priorities for the time being for addressing them;

ii the need to ensure that all regions of Wales have access to funding;

iii the scope for reducing economic and social deprivation at the same time as creating benefits for the arts;

C the need to further the objectives ofsustainable development;

D the need for money distributed under section25(1) to be distributed only to projectswhere they are for a specific, time-limitedpurpose;

E the need:

i in all cases, for applicants to demonstratethe financial viability of the project for the period of the grant;

ii where capital funding or setting up costs are sought, for a clear business plan beyond the period of the grant, incorporating provision for associated running and maintenance costs;

iii in other cases, for consideration to be given to likely availability of other fundingto meet any continuing costs for a reasonable period after completion of theperiod of the Lottery award, taking into account the size and nature of the project, and for Lottery funding to be used to assist progress towards viability beyond the period of the grant wherever possible;

F the desirability of supporting thedevelopment of long term financial andmanagerial viability of organisations in thearts. In taking this into account the ArtsCouncil shall have regard to Direction D;

G the need to require an element ofpartnership funding and/or contributions inkind, from other sources, commensuratewith the reasonable ability of different kindsof application, or applicants in particularareas to obtain such support;

H the desirability of working with otherorganisations, including other distributors,where this is an effective means of deliveringelements of its strategy;

I the need to ensure that its powers to solicitapplications under section 25(2)(A) are used

Annexes to the Annual Report (not forming part of the fnancial statements)

157

in connection with the pursuit of strategicobjectives;

J the need to obtain such information as itconsiders necessary to make decisions oneach application, including independentadvice when required;

K the need to operate within the distinctivepolicy context in Wales, adding value whereappropriate to Welsh Governmentstrategies, to enable the development ofopportunities for everyone to flourish withina more successful and sustainable Wales;

L the need to promote access to the arts forpeople from all sections of society;

M the need to promote knowledge of, andinterest in, the arts by children and youngpeople;

N the need to encourage new talent,innovation, and excellence, and to helpdevelop new skills;

O the need to support volunteering andencourage volunteering in the arts;

P the need to involve the public and localcommunities in making policies and settingpriorities;

Specific

Q the need to promote and supportthroughout Wales the cultural significance ofthe Welsh language and the bilingual natureof Wales, including giving effect to theprinciple of equality between the Englishand Welsh languages. This should includethe addition of specific conditions on theWelsh language in grant offers, an effectivemonitoring and overseeing of theperformance of grant recipients with regardto those conditions;

R the need to ensure coherent monitoring,evaluation and reporting systems thatsupport quality service delivery, and tomaintain accountability by providing anannual report on the Arts Council of Wales’lottery funding activity to the WelshGovernment. This report should include ananalysis of grants made, and the distributionof these by size, type, geographical area,and art form.

Dated: 1 October 2012

Growth, Susan Adams, Creative Wales Awards 2013/14 (image: Susan Adams)

159

Lottery Distribution - Grants Offered 2013/14Net of offers not taken up or withdrawn

Grants to Organisations

Capital grants

Amgueddfa ac Oriel Gwynedd £100,000Arad Goch £50,000Borough Theatre Abergavenny £23,325Celf O Gwmpas £4,532Chapter (Cardiff) Ltd. (2 awards) £88,990City and County of Swansea £500,000Community Music Wales £11,864Congress Theatre Company £50,000Conwy County Borough Council £50,000Cwmni'r Fran Wen £11,171Galeri Caernarfon Cyf (2 awards) £69,700Hafren £52,125Hay Festival of Literature and the Arts Ltd £9,515Montgomery Movie Club £2,786Neuadd Dwyfor £35,780Pontardawe Arts Centre £95,000Presteigne Festival of Music and the Arts Ltd £7,606Rhondda Community Development Association £48,763Rubicon Dance £9,521Sherman Cymru £7,344Span Arts Ltd £5,642St. David's Hall £46,963Taliesin Arts Centre £75,727The Riverfront £25,832Theatr Bara Caws £23,856Theatr Iolo £29,000Vale of Glamorgan Council £50,000Valley & Vale Community Arts Ltd. £840,000Volcano Theatre Company Ltd £19,685Wrexham County Borough Council £26,750

£2,371,477

Large grants (over £5,000)

4 Pi Productions £27,5009Bach £29,800Aberjazz £10,000Aberjazz £12,500Aberystwyth Arts Centre (2 awards) £37,000Aberystwyth Music Fest (2 awards) £55,556

160

ABMU Arts in Health Board £21,000Access All Areas (2 awards) £95,628Addo £27,600Afasic Cymru £24,957AGE Cymru £64,140Andrew Logan Museum of Sculpture £26,800Anglesey Arts Forum £25,500Arad Goch £74,879Arcadecardiff C.I.C. £30,000Artes Mundi Prize Limited (2 awards) £50,100Arts Alive £30,000Arts Connection / Cyswllt Celf £16,800Audiences Wales £10,800August 012 Limited (2 awards) £50,700Axisweb £25,000Ballet Cymru (2 awards) £63,260Ballet Nimba £30,000Bangor University (6 awards) £197,612Barnardo's £18,242Bespoken Theatre £30,000Beyond the Border (2 awards) £129,710Blackwood Miners' Institute (2 awards) £49,725Blaenau Gwent County Borough Council £29,995blinc CIC £86,500Bocs £30,000Bombastic (2 awards) £83,780Borough Theatre Abergavenny £29,603Breakin' Out Festival £30,000Bridgend County Borough Council £13,500Butetown Artists £29,565CAAPO £10,000Caerphilly County Borough Council £29,352Camerata Wales £30,000Canolfan a Menter Gymraeg Merthyr Tudful £29,525Canolfan Gerdd William Mathias Cyf £30,000Canolfan Porthceri Centre £16,200Cardiff Arts Collective £16,485Cardiff Council £100,000Cardiff Multicultural Mela Limited £13,000Carlson Dance Company Ltd £30,000Celf O Gwmpas (2 awards) £75,746Celtic Neighbours £8,947Chapter (Cardiff) Ltd. (3 awards) £63,500City and County of Swansea £22,500Clera £13,557Clwyd Theatr Cymru £22,500Clwyd Theatr Cymru TYP £89,576

161

Cofis Bach £30,000Community Music Wales (2 awards) £40,512Company of Sirens (2 awards) £25,001Conwy Arts Trust £27,000Conwy County Borough Council (3 awards) £46,888Cowbridge Music Festival (2 awards) £55,000Crashmat Collective £43,050Create It! £24,031Creu Cymru - The Touring Agency for Wales (3 awards) £364,704Crwth £24,000Cwlwm Celtaidd Wales' Interceltic Festival £8,000Cwmni Coll Cyf (2 awards) £60,000Cwmni Martyn Geraint (2 awards) £70,000Cwmni Mega Cyf/ Ltd (2 awards) £65,100Cwmni'r Fran Wen (6 awards) £156,260Cyfle £25,000Cymdeithas Rhieni ac Athrawon Ysgol Tryfan £27,400Cyngor Gwynedd (2 awards) £219,315Cyngor Sir Ynys Mon (2 awards) £55,000Cynon Valley Museum & Gallery £15,500Dafydd James & Company £12,000Dance Base, Scotland's National Centre for Dance £15,000Dance Blast (2 awards) £76,625Dance Collective £22,688Dance Touring Partnership (2 awards) £60,000Dance4 £29,910Datrys £28,798De Oscuro £27,000Denbighshire County Council (2 awards) £53,650Difficult Stage £15,271Dirty Protest (2 awards) £42,000Disability Arts Shropshire £54,000Diverse Cymru £29,955Drama Association of Wales £30,000Earthfall Dance Ltd. (2 awards) £59,685Eisteddfod Genedlaethol Cymru (2 awards) £100,400Elysium Gallery £21,771engage (National Association for Gallery Education) £40,000Ensemble Cymru (2 awards) £100,000Foundation for Community Dance £49,750Fourth Wall £45,000Freewheeling Films ltd £45,000g39 (2 awards) £60,000Gagglebabble £17,842Galeri Caernarfon Cyf £30,000GDance £69,950Glynn Vivian Art Gallery (2 awards) £54,000

162

Grand Slam Theatre Company £20,000Grand Theatre Swansea £73,000Greenman Festival Limited £100,000Gregynog Festival £30,000Gritty Realism Productions £19,350Gwasanaeth Ysgolion William Mathias £40,000Gwledd Conwy Feast CIC (2 awards) £57,245Gwyl Beaumaris Festival £11,500Gwyl Ifan £7,000Gwyn Hall £28,000Hafren £30,000Harnisch-Lacey Dance Theatre £29,899Hay Festival of Literature and the Arts Ltd (2 awards) £200,000Helfa Gelf Cyfyngedig (2 awards) £45,318Hijinx Theatre (2 awards) £130,000Invisible Ink £30,000Islet £29,969It's My Shout Productions Ltd (2 awards) £57,172James Tyson Productions £30,500Josef Herman Art Foundation Cymru £21,850Kindle Theatre £10,000Kitsch & Sync Collective £6,500Laugharne Literary Festival £30,000Laura H Drane Associates Ltd (2 awards) £38,073Lighthouse Theatre Ltd £18,000Likely Story Theatre £22,704Literature Wales £100,000Liveartshow (2 awards) £36,500Living Pictures Productions £30,000Llangollen Fringe Festival £20,000Llangollen International Musical Eisteddfod £100,000Llanover Hall Arts Centre £17,582Llantarnam Grange Arts Centre £26,885Locws International £100,000Lower Machen Festival £85,000Made by Hand £20,000Made In Roath (2 awards) £48,649Maesteg Town Hall Ltd £29,910Mai oh Mai Productions £19,990Maindee Festival Association £7,400Makers Guild in Wales £28,000Making Music Wales £30,000Meadow Arts £30,000Memorial Hall and Theatre, Barry £28,500Menter Caerdydd (2 awards) £38,250Menter Rhosygilwen £12,000Mess up the Mess Theatre Company £50,000

163

Mid Wales Opera £15,000Migrations (2 awards) £132,900Miles Productions £11,702Mostyn (3 awards) £109,666Mr and Mrs Clark (2 awards) £27,969Museum of Modern Art, Wales £25,300National Theatre Wales £50,000Neath Port Talbot County Borough Council £28,470NEW Dance £30,000Newport City Council £25,680NoFit State Community Circus Ltd £12,000North Wales International Music Festival £50,000North Wales International Poetry Festival £19,128North Wales Jazz Society £29,993Omidaze Productions £24,400OPRA Cymru Cyf £74,000Orchard Media and Events (2 awards) £125,802Oriel Davies Gallery £30,000Oriel Myrddin Trust £7,500Oriel Plas Glyn-y-Weddw Cyfyngedig (2 awards) £58,373Oriel Wrecsam £30,000Oriel Ynys Mon £28,528Pant and Dowlais Boys and Girls Club £30,000Papertrail £16,000Pavilion Theatre £15,529Penpergwm House Ltd. £11,482PLANED £17,346Plas Derw Trust Ltd £10,680Pontardawe Arts Centre (2 awards) £60,000Porthcawl Jazz Festival £15,000Powys County Council £30,000Prince's Trust - Cymru £19,004Queens Hall £30,000Re Bourne Ltd £98,909Rhondda Cynon Tâf County Borough Council £30,000RLWC2013 £30,000Run Ragged Productions £28,705Sculpture Cymru £12,800Sesiwn Fawr Dolgellau £20,000Shakespeare Link £17,325Shakespeare Schools Festival £30,000Sherman Cymru (2 awards) £59,556Sinfonia Cymru £98,000Small World Theatre Ltd £20,000Sound Affairs (2 awards) £72,124South Wales Intercultural Community Arts £26,444Span Arts Ltd (2 awards) £60,000

164

Spectacle Theatre (2 awards) £41,976St. David's Hall (2 awards) £154,300Stiwt Arts Trust Ltd. £30,000Sustrans Cymru £30,000Swansea City Opera & The Opera School Wales £29,500Swansea Festival of Music and the Arts Ltd £69,000Swansea Jazzland £25,000Swansea Metropolitan University £21,375Swansea YMCA £22,312SWN Festival £50,000Tai Calon Community Housing £27,700Taking Flight Theatre Company (3 awards) £111,287Taliesin Arts Centre (2 awards) £43,280Tanja Råman+dbini industries (2 awards) £42,000The Cholmondeleys Limited (2 awards) £60,000The Circuit £16,000The Cory Band £30,000The Department of Enjoyment £30,000The Junket Club £5,000The Original Print Place £12,910The Riverfront (2 awards) £66,980The Roar Ensemble (2 awards) £58,000Theatr 1.618 Theatre £21,347Theatr Colwyn £28,352Theatr Genedlaethol Cymru (2 awards) £106,700Theatr Harlech £100,000Theatr Iolo (2 awards) £58,000Theatr Mwldan (2 awards) £71,380Theatr na n'Óg (2 awards) £130,000Theatr Pena (3 awards) £139,787Theatrau Sir Gar (2 awards) £43,936Theatre Versus Oppression £25,000THIS Project £19,587Tin Shed Theatre Company £8,892Tintern Festivals Association £15,000Torch Theatre Company Limited £12,000Torfaen County Borough Council £25,987trac - Music Traditions Wales £12,000Tredegar House Folk Festival £7,000Truth Department £24,227UCAN Productions £28,237University of South Wales £8,893Urdd Gobaith Cymru (2 awards) £90,000Vale of Glamorgan Festival (2 awards) £187,500Venue Cymru £100,000Vision Thing Communications £12,382VODO £24,990

165

Volcano Theatre Company Ltd (3 awards) £47,956Waking Exploits £50,800Wales Millennium Centre (3 awards) £149,061Welsh Fargo Stage Company £30,000Welsh Music Foundation £29,568Welsh Sinfonia £60,437West Flintshire Community Enterprises £18,100Winding Snake Productions £22,500Wisp Dance Club £11,000Wrexham County Borough Council (2 awards) £36,850Wye Valley Area of Outstanding Natural Beauty (AONB) £30,000Wyeside Arts Centre Ltd £30,000Yale College £25,000yello brick £30,000Young Music Makers of Dyfed £22,000Youth of Creative Arts £20,200Ysgol Theatr Maldwyn Cyf £20,000Ystradgynlais Miners' Welfare and Community Hall Trust Ltd £30,000

£11,492,046

Small grants (up to £5,000)

3ORMORE £2,0419Bach £3,520Abersoch Jazz Festival £5,000Agent 160 Theatre Company £338Allan yn y Fan £4,500Amgueddfa Cymru - National Museum Wales £3,500Amgueddfa Llandudno Museum £3,800Artes Mundi Prize Limited £5,000Arts Alive £4,990Arts Connection / Cyswllt Celf £3,750August 012 Limited £4,680B10c (2 awards) £8,900Baluji Music Foundation £5,000Bare Fiction £4,099Barry YMCA £4,620Beddgelert Music Festival £1,324Bethesda Artworks £3,030Betws Ymlaen £2,230Black Mountain Jazz £2,000Bread & Goose £3,000Brecon Jazz Club £4,950Bridgend Arts Ltd. £5,000Bridgend County Borough Council £3,120Canolfan Gerdd William Mathias Cyf £5,000

166

Cardiff Dance Festival £4,500Cardiff Polyphonic Choir £3,060Cardiff Small Theatre £3,000Carmarthen Arts £1,200Carmarthenshire County Council £618Carreg Lafar £4,750Ceredigion Museum £4,241ChainWorks Productions £5,000Citrus Arts £5,000Clwb Ifor Bach £5,000Congress Youth Theatre £5,000Connahs Quay High School £3,192Cwpan Aur £2,500Cymdeithas Dreftadaeth y Bala a Phenllyn Cantref £3,086Cymdeithas Rhieni ac Athrawon Ysgol Gymraeg Treganna £4,800Cymru Pride Wales £5,000Cywaith Gemwaith Gogledd Cymru £3,671Dawns i Bawb £5,000Deeside Community Arts (2 awards) £10,000Difference Exchange £5,000Difficult Stage £4,580Do Not Go Gentle Festival £4,650Drama Association of Wales £3,750Drum With Our Hands Ltd. £2,460Elfed High School £4,000Ensemble Cymru £5,000Equinox Theatre £5,000Ffotogallery £4,000FILMCLUB Cymru £5,000Fire in the Mountain Festival LTD £2,725Flintshire County Council (3 awards) £14,800Focus Wales £2,423Four Winds Productions £5,000Fragments £5,000Friends of Flintshire Youth Music £5,000Friends of the Classics £2,250Future of the Left Ltd. £5,000Gagglebabble £4,978Galeri Caernarfon Cyf £5,000Garden Village Residents Association (Centenary Youth Team) £3,792G-Expressions £4,995Ghost Horse Records £5,000Glasbury Arts £4,970Golwg Cyf £5,000Gower College Swansea £4,780Gower Folk Festival £5,000Greenman Festival Limited £4,934

167

Gwent Theatre £5,000Gwyl Nol a Mlan £5,000Gwyl Ogwen £852Halo Leisure Services Ltd £5,000Hay Theatre CIC £5,000Holy Hiatus £2,955Invertigo Theatre Company £5,000James £4,500Jamie Smith's Mabon £5,000JazzCakes (2 awards) £6,750Joanna Gruesome £3,362Joon Dance £5,000Klep Dim Trep £5,000Laura H Drane Associates Ltd £5,000Learning Disability Wales £2,200Lighthouse Theatre Ltd £2,280Likely Story Theatre £4,600Literature Wales £5,000Liveartshow £5,000Llandeilo Fawr Festival of Music £4,138Llantilio Crossenny Festival of Music and Drama Ltd £4,645Maindee Festival Association £4,400Mary Bijou Cabaret and Social Club £4,329Menter Caerffili £4,850Menter Iaith Sir Ddinbych (2 awards) £6,882Menter Rhosygilwen £5,000Merthyr Tydfil Global Village £5,000Mid Border Community Arts Ltd (2 awards) £8,500Mid Powys Youth Theatre £5,000Mid Wales Chamber Orchestra £5,000Mind Out for Music £5,000Ministry of Life £5,000Mocambo, Capoeira £4,995Modern Alchemists £4,200Mountain Lane CP School £2,160Mr and Mrs Clark £4,900Music Theatre Wales £5,000Nantgarw China Works Trust £5,000Neuadd Dwyfor £5,000Newport International Airspace £4,600NoFit State Community Circus Ltd £1,861North Denbighshire Communities First £4,454North Powys Youth Music Trust £3,090North Wales Bluegrass Music and Dance Festival £5,000North Wales Pilgrims Way £3,496NWAMI £5,000Olion Byw £3,000

168

Omidaze Productions £5,000Organised Kaos Youth Circus Ltd £5,000Pavilion Theatre £4,868Peep Toe Productions Ltd £5,000Pembrokeshire People First £5,000Penarth Pier Pavilion £2,235Powys Dance £3,750Prestatyn High School £3,000Queensferry CP School £2,334Recordiau Cae Gwyn Records £3,729Recordiau I KA CHING Records £4,800Re-Live £4,500Retired and Senior Volunteer Programme - Shotton Knitters Project £3,960Rhondda Cynon Tâf County Borough Council (2 awards) £6,352Royal Cambrian Academy £5,000Run Amok Theatre Company £4,800Ruthin Festival Association £2,000Sain (Recordiau) Cyf £5,000Salsa Amor Cymru £5,000Samoans £4,500Scriptography Productions £2,350South Wales Intercultural Community Arts £2,449St. David's Hall £5,000Suitcase Theatre £4,995Swansea City Opera & The Opera School Wales £5,000Taking Flight Theatre Company (2 awards) £9,017Tenovus £1,500The Kickplate Project £3,849The Marches Oboe School £2,500The Peter Gould Music Trust £4,161The Republic of Imagination £5,000The Riverfront £3,200The Welsh Group £5,000Theatr Monte £3,550THIS Project £4,993Tin Shed Theatre Company £4,996trac - Music Traditions Wales £5,000Transition Narberth £940University of South Wales £1,237University of Wales, Aberystwyth (Ceramic Archive) £5,000Vagabondi Theatrical Arts £5,000Venue Cymru £2,014Wales Arts Review £2,000Welsh Music Foundation £4,984Winter Villains £4,500Wisp Dance Club £4,980WJEC CBAC Ltd. (3 awards) £14,500

169

WWAMH £5,000Wye Valley Area of Outstanding Natural Beauty (AONB) £4,750Wyeside Arts Centre Ltd £3,750Women's Writing Festival £5,000Ymuno Festival £5,000Youth of Creative Arts £5,000Ysceifiog Village Hall Management Committee £4,350Ysgol Cedewain £1,399Ysgol Estyn £2,400Ysgol Gwynedd £1,800Ysgol Pencoch £2,400Ysgol Trelawnyd £2,160Ysgol Trelogan £5,000

£769,648

Training grants

Andrew Logan Museum of Sculpture £825Artes Mundi Prize Limited £5,000Articulture £60,000Artis Community Cymuned £20,414Ballet Cymru £29,880Caerphilly County Borough Council £7,000Cardiff Metropolitan University £10,800Celf O Gwmpas £26,737Clwyd Theatr Cymru TYP (2 awards) £23,750Cofis Bach £5,000Community Music Wales £46,000Dance Collective £5,911Dawns i Bawb £27,500Dawnswyr Talog £5,000Disability Arts Cymru £20,505Earthfall Dance Ltd. £9,000g39 (2 awards) £65,000Galeri Caernarfon Cyf £4,318Gregynog Festival £3,599Helfa Gelf Cyfyngedig £10,500Hijinx Theatre £30,000Index on Censorship £5,000Kodaly Society of Wales (2 awards) £18,547Mess up the Mess Theatre Company £19,650Mid Wales Opera £30,000MissionModelsMoney £50,000National Theatre Wales £24,000Re-Live £27,450Stephens and George Charitable Trust £5,000

170

Taking Flight Theatre Company £4,860Tanja Råman+dbini industries £2,640The Broadway Drawing School £5,000Theatr Fforwm Cymru £17,475THIS Project £4,500trac - Music Traditions Wales (2 awards) £59,910UCAN Productions £4,900Venue Cymru £11,313Welsh Sinfonia £15,618Wyeside Arts Centre Ltd £2,043

£724,645

Strategic grants

Artis Community Cymuned £16,580Centre for Business and Social Action £16,123Community Music Wales £18,576Cwmbran Centre for Young People £20,000Cwmni'r Fran Wen £19,605Dynamix £19,988engage (National Association for Gallery Education) £20,000Head for Arts £20,000Menter Mon Cyf £13,500Mess up the Mess Theatre Company £18,586Neath Port Talbot County Borough Council £20,000Span Arts Ltd £20,000Swansea Metropolitan University £20,000UCAN Productions £19,910Valleys Kids £20,000

£282,868

Creative Steps grants

Butetown History & Arts Centre £240,000Jukebox Collective £336,683Youth of Creative Arts £30,000

£606,683

Total Grants to Organisations £16,247,367

171

Grants to Individuals

Small grants (up to £5,000)

Allison, Justine £2,200Appleton, Melissa £3,000Ashill, Kathryn £5,000Ashton, Kenneth £5,000Ashworth, Elizabeth £3,000Awst, Manon £3,000Barber, Charlie £4,905Barratt, Anna £5,000Beeby, Beca (2 awards) £3,437Bell, Ellen £944Berney, Hannah Katie £5,000Best, Kelly £5,000Bettridge, Dan £3,100Bonada, Marja (2 awards) £6,680Bonello, Gareth £5,000Borthwick, Ben £5,000Bowers, Richard £2,990Brown, Sian Eleanor £3,000Buckingham-Daley, Sophie £2,450Bullock, Brenda £5,000Button, David £2,020Cardwell, Bruce £2,250Cartwright, Jason £2,722Chambers, Gareth £921Cheater, Phillip £3,000Chiswell, Corrie £3,600Ciaran, Cian £3,000Cook, Justine £2,960Cooper, Christine £3,831Corr, Sue £1,338Crossley, Leah £3,000Cysewski, Karol £5,000Da Silva Oliveira, Hugo Maciel £2,620Dalrymple, Neil £3,000D'Arcy, Dymphna £2,950Davies, Huw £5,000Davies, Robert £5,000Davies, Sion Glyn £3,000Davies, Stephanie £3,000Daws, Martin £4,186Dell'Armi, Karen £4,998Disson, Joseph £5,000Downing, Richard £5,000

172

Eames, Manon £2,700Eden, Juliet £4,990Elstob, Tom £4,498Emberton, Gwyn £3,000Evans, Geraint £2,700Evans, Sarah Jayne £2,700Featherstone, Shaun £5,000Fowler, Dylan (2 awards) £8,963Francis, Karl £2,700Ghazoul, Rabab £3,000Gil Cortés, Neus £2,755Godfrey, Heloise £3,000Graham, Alison £5,000Griggs, Amy £3,400Gwilym, Owain £5,000Hall, Jessica £5,000Hallas, Penny £3,000Hanks-Doyle, Catrin £4,000Harper, James £4,532Harris, Alan £3,000Harris, Tracy £4,886Harrison, Caroline £4,500Harrisson, Eileen £3,000Hartwig, Johana £3,015Holcroft, Jonathan £2,472Hughes, Nicolas William £4,050Huws, Sioned £4,985Igic, Tatjana £2,969Iwanowski, Michal £5,000James Jones, Buddug £2,685James, Keith £3,550James, Mark £5,000James, Shaun £1,728Jenkins, Delyth £2,790Jenkins, Paul £2,515Jensen, Denni £3,000Johnstone, Amelia £1,500Jonathan Powell £4,050Jones, Andrew (2 awards) £5,739Jones, Ian £5,000Jones, Kelly £2,980Jones, Madeleine £4,720Jones, Sianed £2,983Joyner, Siriol £5,000Kane, Dominic £5,000Kilbride, Danny £1,529Kingman, Susan £2,760

173

Kingston, Sasha £4,078Lalic, Maria £5,000Lawlor, Patrick £3,186Lawrence, Kate £3,000Leadbeatter, Myles £1,667Lerner, Jessica (2 awards) £8,000Light, Deborah £5,000Llewelyn-Williams, Daniel £5,000Lucia, Emma £3,000Malcolm, Victoria £1,558Marsh, Jo £2,952McNeill, Andrew £5,000Mendum, Shaun £2,827Monaghan, Pete £4,800Moore, Jeremy £4,500Morrison, Craig £3,000Muller, Holly £5,000Nosratpour, Shwan £5,000Nougarède, Magali £2,400Oakley, Chris £2,930Oben, Tiff £5,000O'Higgins, Anna £1,905Olsen, Sean £3,200Owen, Sarah £3,000Parkin, Mark £4,428Parry-Jones, Clare £3,000Patrick, Kirsty £4,472Pavey, Mark £5,000Pezzack, Billy £3,000Phillips, Gareth £4,500Plowman, Lynne £3,000Pocklington, Lorraine £5,000Price, Rhian Catrin £3,000Pryce, Guto £2,560Rashbrook, Sophie £3,000Rees, Aled £4,565Rees, Caroline £2,370Reynolds, Anthony £5,000Richardson Laurens, Emily £3,000Roberts, Angela Barbara £3,000Roberts, Stephanie £4,766Robinson, Richard £3,000Robinson, Stephen £5,000Rogers, Sarah (2 awards) £7,506Salmon, Michael £3,000Scott, Emma £2,965Serra Vila, Francesc £3,265

174

Smith, Rorik £5,000Sonnex, Grant £3,000Sopwith, David Mathew £2,700Spaull, Lisa (2 awards) £7,995Spaull, Robert £3,000Stagg, Robert £2,050Tann, Lisa-Marie £3,896Thomas, Fern (2 awards) £7,934Thomas, Julia £5,000Thomas, Owen £5,000Thomas, Sian Elin £2,417Thompson, Amy £3,000Tyson, Alana (2 awards) £7,750Vann, Alex £3,000Waters, Michael £3,000Wearing, Paul £5,000Webb, Derek £4,941Whitlock, Luke £4,694Williams, Annie £1,800Williams, Christina £3,549Withey, Deborah Ann £5,000Woods, Sarah £5,000Wright, Matt £3,000Wyn Shannon, Pamela £5,000Young, Joanna £5,000

£619,572

Large grants (over £5,000)

Awst, Manon £18,000Barnes, David £24,902Brett, Jessie £13,560Bromage, Tim £18,000Burrows, Inga £23,581Campbell-Moore, Roy £30,000Davies, Angela £10,000Devlin, Ronan £25,000Dewis, Adeola (2 awards) £33,039Easterby, Jonathan £25,000Emberton, Gwyn £24,995Evans, Carwyn £12,000Evans, Chris Tally £25,000Fong, Joanne £25,000Goosey, Iain £24,600Gubb, Mark £16,500Harrop, Angharad £8,000

175

Hasler, Samuel £8,700Hembrough, Graham £11,876Jackson, Dilys £8,050James Jones, Buddug £17,112James, Dafydd £25,000John, Sean Tuan £20,000Lamb, Linda £19,188Light, Deborah £23,160Lloyd, Ben £9,000Loftus, Chloe £23,969May, Daniel £9,637Miles, Rhodri £24,992Morgan, Richard Huw £25,000Morison, Ivan £25,000Morrison, Craig £20,000Orrell, Jeanette £15,841Price, Valerie Coffin £10,000Raybould, Tom £14,147Sainty, Peter £15,401Sherratt, Matt £15,000Stokes, Anthony £23,322Swann, Bill £20,356Tyson, Alana £19,500Wellan, Sophie £18,500Williams, Bedwyr £30,000Wright, Matt £21,900Yarnell, Anushiye £22,465Young, Joanna £23,550

£877,843

Training grants

Barratt, Anna £297Bowers, Richard £1,950Cartlidge, Lynne £750Cornwell, Kenneth £2,000D'Arcy, Dymphna £900Davison, Elise £1,760Diamond, Karin £1,800Drane, Laura £1,980Fell, Jenny £765Fleck, Fliss £765Gibbons, Iain £2,000Goddard Tom £1,075Hayes, Maria £1,352James, Catriona £517

176

Jones, Steffan £1,900Keehan, Bridget £1,000Khan, Sukina £1,970Lipman, Joel £2,000Lovegrove, Christopher £351Miller, Jan £1,781Mumford, Sarah £2,000Murray, Heather £765Norris, Linda £1,335Pearce, Sally £2,000Powlesland, Beth £2,000Roberts, Angela Barbara £663Roberts, Hywel Prytherch £1,000Rogers, Angela £972Smith, Fern £875Thompson, Amy £287Treays, Jem £978Tucker, Louise £933Wigdel, Siri £1,900Williams, Jeremy Huw £2,000

£44,621

Creative Wales Awards

Adams, Susan £20,000Burns, Brendan £20,000Childs, David £12,000Clark, Gareth £24,894Dias, Natalia £12,000Jenkins, Paul £11,885Koppel, Gideon £25,000Moorhouse, Sara £20,000Shapland, Anthony £20,000Thomas, Fern £12,000Tomos, Cai £12,000

£189,779

Advanced Study in Music awards

Adams, Reisha Jade £5,000Denholm, Anne £4,000Griffiths, Trystan Llyr £5,000Humphreys, Gareth £2,000Mills, Joshua Owen £1,000Moorcraft, Gareth £3,000

177

Price, Samantha £5,000Roberts, Alys £1,000Robinson, Jessica £1,000Smith, Kevin Thomas £1,000Stoneman, Paul £2,000Taylor, Rhodri £5,000Williams, Matthew £3,000

£38,000

Total Grants to Individuals £1,769,815

Total Grants Offerednet of offers not taken up or withdrawn £18,017,182

Grants Administered by Ffilm Cymru Wales

Development

Acme Films £15,000Big Bad Wolf Productions £7,000Boom Pictures Productions Ltd £24,075Celtic Productions Ltd £9,000Dan Films (2 awards) £21,750Dogs of Annwn Ltd £5,000Claire Fowler £2,000Magnified Pictures Ltd £10,988Peter Gwynne Morgan £5,000Ivan Morrison £11,745Red and Black Films Ltd £15,592Severn Screen Ltd £8,000Severn Studios £15,240Sixteen Films £13,000Trinity Pass Productions £15,000Truth Department (Dewi Gregory) £24,909Up Helly Aa Ltd (3 awards) £14,300Western Edge Pictures £20,000

£237,598

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Production

Bright Films Ltd £200,000Darlow Smithson and worldsend Pictures £49,999Fragrant Films Ltd £10,250Gritty Realism £100,000IE IE Productions Limited £29,920Lupus Films £150,000Park Films £2,500Debotah Perkin Media £49,950Piece of Cardboard Productions £10,000Red and Black Films Ltd (3 awards) £144,999Set Fire to the Stars Productions £49,999Severn Screen Ltd (2 awards) £160,000Truth Department (Dewi Gregory) (2 awards) £74,999

£1,032,616

Education

Arts Connection £3,375Matt Beere £358The Festivals Company Ltd £7,728Hijinx Theatre £6,226Learnaboutfilm LTD £990Lily Pad Films £4,776Pontio £7,650WJEC £7,000Zoom Cymru (3 awards) £21,368

£59,471

Flexible Education

Bigger Picture £500Media Education Wales £250Zoom Cymru £200

£950

Exhibition Core Funding

Aberytwyth Arts Centre (2 awards) £18,317Canolfan Ucheldre Centre £2,000Chapter Arts Centre £20,000Clwyd Theatr Cymru £10,365Galeri Caernarfon £2,192

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Theatre Gwaun £2,000Memo Arts Centre £2,000Neudd Dwyfer £2,000Penarth Pier Pavillion Cinema £1,250Pontardawe Arts Centre £2,602RCT Cultural Services £2,667Riverfront Theatre £3,375Scala Cinema and Arts Centre (2 awards) £3,152Taliesin Arts Centre £7,467Theatr Mwldan £9,351Theatre Harlech (2 awards) £3,567Torch Theatre £4,000The Welfare Ystradgynlais £1,750Wyeside Arts Centre ( 2 awards) £4,446

£102,500

Exhibition Festivals

Aberytwyth Arts Centre £15,000Bulldozer Films £2,500The Festivals Company Ltd £9,000Hay Festivals £6,000Wales One World Film Festival Ltd £9,000Zoom Cymru £17,500

£59,000

Special Exhibition Events

Chapter Arts Centre £2,000Penarth Pier Pavillion Cinema £300Wales African Film Festival £1,000WJEC £2,000Wales One World Film Festival Ltd £2,000Zoom Cymru £250

£7,550

Total Grants Offered by Ffilm Cymru Walesnet of offers not taken up or withdrawn £1,499,685

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Grants Administered by Nesta

Digital Research and Development

NoFit State Circus £75,141TaikaBox £52,155UCAN Productions £62,487Theatr Genedlaethol Cymru £51,539

£241,322

Total Grants Offered by Nestanet of offers not taken up or withdrawn £241,322

Project grants to organisationsCapital grantsGrants administered by Nesta

Project grants to individualsGrants administered by Ffilm Cymru Wales

Grants by Type

70.23%

1.22%

8.96%

12.00%7.59%

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Reports and Financial Statements ... - Arts Council of Wales · specialist skills and experience,...

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