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Lakeland ArtsAnnual Reportand Accounts 2016
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Charity Number
1153001
Company Number
8162578
Principal Office
Abbot Hall, Kendal, Cumbria, LA9 5AL
Trustees
Martin Ainscough BSc DL
Henry C F Bowring MA JP DL
Anthea Case CBE BA FRSA
Michael Clarke CBE FRSE
Anthony R Collinson
Charles Crewdson OBE JP
Susan Crewe
Sarah Dunning OBE
Charlie Gere MA PhD
Martyn Heighton MA (Cantab) DEd AMA (to 6 November 2016)
John Hudson FREng
Sara Keegan
Elizabeth (Pit) Rink BSc MPhil
Bronwen Riley (from 11 November 2016)
Nicholas Thompson (from 20 May 2016)
Officers
Gordon B Watson BA AMA
Bankers
Barclays Bank plc,
9 Highgate, Kendal, Cumbria, LA9 4DF
Solicitors
JWK
5/7 Skipton Street, Morecambe, Lancashire, LA4 4AW
Investment Advisors
Sarasin & Partners LLP
Juxon House, 100 St Paul’s Churchyard
London, EC4M 8BU
Auditors & Accountants
Stables Thompson & Briscoe
Lowther House, Lowther Street
Kendal, Cumbria, LA9 4DX
Charity Information
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Contents
2 Charity Information
4-5 Introduction
6-23 Trustees’ Annual Report
(Including Directors’ Report)
24-25 Independent Audit Report
26 Consolidated Statement of Financial Activities for
2016
27 Consolidated Statement of Financial Activities for
2015
28 Consolidated Balance Sheet
29 Statement of Cash Flows
30-50 Notes Forming Part of the Financial Statements
51 Image credits
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Introduction to the Lakeland Arts 2016 Annual Report and Accounts
2016 was a very significant year for Lakeland Arts as it
featured a particularly strong programme of exhibitions at
Abbot Hall Art Gallery, construction of Windermere Jetty
reached the point where all the building structures were in
place and we started the re-instatement and repair of the
areas of Abbot Hall that were flooded in December 2015.
We began the year with the final six weeks of the
tremendously rich and popular exhibition Canaletto:
Celebrating Britain, which opened at Abbot Hall in October
2015. The exhibition was in partnership with Compton Verney
and included highly significant loans, particularly from the
Royal Collection. Abbot Hall was selected as one of three
galleries to be part of The National Gallery Masterpiece Tour to
show Rembrandt’s Self Portrait at the Age of 63, and we were
delighted to welcome Gabriele Finaldi, Director of the National
Gallery to open the display.
In the spring we showed Laura Ford: Seen and Unseen at
Abbot Hall and Blackwell, the Arts & Crafts House. Visitors
particularly enjoyed discovering the larger works outside
Blackwell, especially the cat-like creatures of Days of
Judgement prowling on the lower terrace.
The main summer show at Abbot Hall was Winifred Nicholson
in Cumberland which was curated by Jovan Nicholson, art
historian and the artist’s grandson, who also wrote the very
popular catalogue that accompanied the show.
A key theme of the year was developing understanding and
interpretation of the Lakeland Arts collections and the buildings
that we care for. New research and exhibition on the Annie
Garnett archive by Professor David Ingram and Dr Rachel
Roberts revealed the significance of her textile designs, the
way she used dyes and colours from her garden and how she
developed The Spinnery in Bowness. Through the Blackwell
Project we created new interpretation so that visitors can
discover more about the Arts and Crafts Movement, the
architecture of Blackwell and how the Holt family used the
house as their holiday home and retreat from Manchester.
Chris Keenan’s residency, supported by the Craft Potters
Association, resulted in new work in response to Blackwell in
his exhibition Houseplace and the very personal installation
“stuff i live with; stuff i love”. Displaying Christian Barnes’s A
Bathymetric Atlas took the form of a series of very memorable
performances in which the pages of the huge, hand-made
book were turned to show the hidden contours of the lakes in
the Lake District.
We welcomed an increasingly diverse audience from local
communities and visitors to a broad range of activities in
2016. We continued the Enriched by Moments programme
with people living with dementia and their carers and with the
support of Equal Arts, we were able to extend this from Kendal
to start a new group in Bowness. We developed our family
offer during the year with an emphasis through programmes
such as Art Camp on taking part in creative activities. The
Creative Age Challenge brought school children and older
people together in making activities that also supported the
dementia programme.
We particularly want to acknowledge the dedication of
the team who kept Abbot Hall open throughout the year,
despite the damage caused to parts of Abbot Hall by the
unprecedented flooding in December 2015. The team had to
deal with disruption and inadequate staff facilities through the
whole of 2016, as we had to close the lower ground floor and
relocate the café and other facilities outside while the building
fabric dried out and we started the essential repairs and flood
resilience measures.
The support of the Heritage Lottery Fund, Regional Growth
Fund and many trusts, foundations and individual donors
enabled Lakeland Arts to appoint the main contractor for
Windermere Jetty, Museum of Boats, Steam and Stories in
2015. By the end of 2016 it was possible to appreciate the
quality and scale of the Museum and how the designs by
Carmody Groarke architects will enable visitors to see the
internationally important collection of boats in the context of
the lake and surrounding Lake District fells. Windermere Jetty
is on a stunning site and the building structures both frame
the views and create the spaces for visitors to see boats in
the Exhibition, the Conservation Workshop and on water in
the Boathouse. Construction, though, is taking longer than
planned and we look forward to opening Windermere Jetty in
2018 and welcoming new audiences to come and enjoy the
Museum and experience going out on the lake in a heritage
boat or with Windermere Lake Cruises.
As we move towards the sixtieth anniversary of the foundation
of Lakeland Arts in 1957 and of the opening of Abbot Hall
in 1962, we want to record that so much of the success of
the trust is based on the support of our Benefactors, Patrons
and Friends and that over the past nearly sixty years many
hundreds of individual donors have contributed to Lakeland
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Arts. Your support has never been more important than
currently as we complete Windermere Jetty at a cost of
over £16 million and plan investment to restore Abbot Hall
and make it more welcoming and better equipped to show
major exhibitions and support a wide range of learning and
community activities.
The continuing grants from Arts Council England and South
Lakeland District Council, and the support of trusts and
foundations, including annual support from the Sir John Fisher
Foundation and the Lakeland Arts Support Trust, enables
Lakeland Arts to develop and plan future programmes with
confidence.
One way that you can support us is by remembering Lakeland
Arts in your will and leaving a legacy to support the future of
Lakeland Arts and continuing care and development of the
historic buildings and outstanding collections that are such an
important part of the heritage and vitality of Cumbria and the
North West.
Your gift could make a huge contribution to the future of
Lakeland Arts and local communities.
Thank you for your continuing support for Lakeland Arts
Martin Ainscough
Chair of Trustees
Gordon Watson
Chief Executive
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Trustees’ Annual Report (Including Directors’ Report)
The trustees are pleased to present their report together with
the audited financial statements of the charitable company for
the year ended 31 December 2016.
The trustees have adopted the provisions of the Statement of
Recommended Practice (SORP) “Accounting and Reporting
by Charities” (FRS 102) in preparing the annual report and
financial statements of the charitable company and its
subsidiaries.
1. Objectives and Activities
The principal objects of the charitable company are -
a. the advancement of the arts, culture, heritage or science
and for the conservation of the environment and heritage
of Cumbria and North Lancashire, including by: the
establishment and maintenance of public art galleries and
museums for the benefit of the public to include the care,
management and display of the permanent collections
of the trust established by declaration of trust dated 9
August 1957 and subsequently amended by multiple
deeds of variation and now known as ‘The Lakeland Arts
Trust’ and any other collections, groupings, displays or
individual items from any other body;
b. such other public charitable purposes tending to advance
artistic, historical or intellectual interests in the said area
which can conveniently be promoted in combination with
the purpose aforesaid; and
c. such other charitable objects as the company shall from
time to time determine.
The trustees confirm that they have referred to the guidance
contained in the Charity Commission’s general guidance on
public benefit when reviewing the charitable company’s aims
and objectives and in planning future activities.
Abbot Hall was opened as an art gallery in September 1962,
and has since built up an outstanding art collection and
created one of the strongest exhibition programmes outside
London.
In 1971 Museum of Lakeland Life & Industry was opened
in the coach house and stable block at Abbot Hall and
developed an important and extensive collection relating to the
social and industrial history of the Lake District and Kendal.
In July 2001 Blackwell, The Arts & Crafts House was opened,
a Grade 1 Listed building, in a stunning position above Lake
Windermere, looking across to the Coniston Fells. Designed
by MH Baillie Scott and completed in 1900, this is one of
the most important Arts and Crafts houses in the UK with a
national reputation for its programme of exhibiting historic and
contemporary crafts.
The charitable company is also responsible for Windermere
Jetty, Museum of Boats, Steam and Stories which has a
collection of steamboats, motor boats, yachts and rowing
boats described as “the most important and coherent
collection of watercraft generic to one location in existence
worldwide”. The charitable company is developing a new
world-class museum and tourist attraction designed by
Carmody Groarke architects and this is due to open in 2018
as Windermere Jetty, Museum of Boats, Steam and Stories.
The charitable company raises funds through retail and
catering outlets at Abbot Hall and Blackwell, which are
operated through a wholly owned trading subsidiary, Lakeland
Arts Enterprises Ltd. Further details of these activities are set
out in note 5 of the accounts.
All activities were transferred as a going concern from
Lakeland Arts Trust and as of 1 August 2013 were carried out
by the charitable company, which has a January to December
financial reporting year.
Lakeland Arts has a Strategic Plan 2014-18 to deliver the
charity’s objectives and the charitable company’s five strategic
priorities:
1. Deliver excellent artistic, heritage, learning and
engagement programmes of national and international
significance.
2. Create rewarding experiences for all our visitors and
users.
3. Ensure the resilience and sustainability of Lakeland Arts
and support Cumbria’s economy.
4. Invest in our staff and develop Lakeland Arts through
inspirational leadership and management.
5. Involve all in arts and heritage in new and inspiring ways
and contribute to the development of local communities.
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It was a great privilege to be chosen to take part in the
National Gallery Masterpiece Tour to show Rembrandt’s
magnificent Self Portrait at the Age of 63. The Masterpiece
Tour is part of the National Gallery’s commitment to promote
the understanding, knowledge and appreciation of Old Master
paintings to as wide an audience as possible. We showed
the work in a dedicated gallery and visitors enjoyed the
opportunity to spend time with such a wonderful and important
painting. At the same time we showed works from our own
collection including portraits of Lady Anne Clifford who was
alive at the same time as Rembrandt.
We showed an extraordinary exhibition of work by sculptor,
Laura Ford at Abbot Hall Art Gallery and Blackwell, The Arts &
Crafts House where larger works were located on Blackwell’s
lawns, with select pieces in the main house. At Abbot Hall,
the show comprised Ford’s earlier work together with new
sculptures and her drawings.
Laura Ford’s imaginative creations explore aspects of the
human condition. She describes her work as sculptures
dressed as people who are dressed as animals as they meld
together ideas of childhood memory with a disturbing edge.
Five years after the death of Lucian Freud, one of Britain’s
greatest figure painters, we showed the display centred
on three works acquired from the collection of Freud and
presented to Lakeland Arts through HM Government’s
Acceptance in Lieu scheme. Two of the works are by Freud’s
great friend, Frank Auerbach. These are characteristically
energetic drawings of the artist’s wife, Julia, executed with
his usual intensity and vigour. Uniquely, one of them is still
tacked to the drawing board. Freud liked it this way and had it
framed with pins and board intact. A third work acquired from
the Freud collection is a beautiful study of a nude, painted by
Michael Andrews.
The summer exhibition explored the creativity of Winifred
Nicholson (1893–1981) viewed through the paintings that she
made in Cumbria (or Cumberland as it was until 1972) where
she lived for large parts of her life. The show included over 40
2. Achievements and Performance
Exhibitions and Temporary Displays
Abbot Hall Art Gallery
• Canaletto: Celebrating Britain 22 October 2015 - 14 February 2016
• The National Gallery Masterpiece Tour: Rembrandt, Self Portrait at the Age of 63 19 March - 15 May 2016
• The Changing Face of Lady Anne Clifford 19 March - 15 May 2016
• Laura Ford: Seen & Unseen 11 March - 25 June 2016
• London Legacy: Auerbach, Andrews and Freud 25 May - 19 October 2016
• Winifred Nicholson in Cumberland 8 July - 15 October 2016
• People on Paper: Works from the Arts Council Collection 29 October - 17 December 2016
• Paul Jenkins 29 October - 17 December 2016
We started the year by continuing the exhibition of Canaletto’s
British paintings of 1746-55. The exhibition was in partnership
with Compton Verney and The Holburne Museum and we
were very grateful for the support of the Royal Collection and
for loans from the British Museum, Compton Verney and
Dulwich Picture Gallery and private owners.
Canaletto showcased not just traditional or established
views and landmarks but also his (and his patrons’) specific
celebration of new British architecture and, by implication, the
recent achievements of the British nation. This was the only
showing of this new exhibition in the North and it proved to be
a very popular show.
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• Laura Ford: Seen & Unseen 11 March - 4 September 2016
• Nicola Jarvis Studio Presents: The Art of Embroidery 26 May - 8 September 2016
• Houseplace: Chris Keenan 29 July - 9 October 2016
• Chris Keenan: “stuff i live with; stuff i love 29 July - 4 September 2016
• A Bathymetric Atlas of The English Lake District 10 - 17 September 2016
• Spinning the Colours of Lakeland: Annie Garnett’s Spinnery, Textiles and Garden 24 September 2016 - 29 January 2017
From Japanese Shino glazes to the purest Chinese porcelain,
white has always held a peculiarly tricky allure for artists and
craft makers. The Fifty Shades of White display brought
together a selection of vessels and ceramics from Lakeland
Arts’ collections, including modern makers from around
the world, such as Taiwanese potter Chun Liao, Danish
ceramicists Bodil Manz and Inger Rokkjaer, London-based
Japanese maker Nao Matsunaga, and master potter Edmund
de Waal.
Chris Keenan is a nationally and internationally recognised
potter known for his distinctive porcelain pots with their
combinations of tenmoku and celadon glazes. Houseplace
and “stuff i live with; stuff i love” were the result of Keenan’s
residency at Blackwell at the start of 2016.
For this installation, Keenan applied William Morris’s dictum -
“have nothing in your house that you do not know to be useful,
or believe to be beautiful” - and presented a selection of his
personal “stuff” which, from being looked at, handled, and
used, makes his domestic life better.
In a series of ceramic installations, Keenan explored and
responded to ‘this extraordinary and mind-consuming house
and the man behind its creation.’ The installations were
thoughtfully placed by Keenan throughout Blackwell echoing
areas of design and landscape which Keenan drew inspiration
from. An accompanying trail was produced for visitors.
paintings, including many works from private collections and
some of her best loved paintings. The exhibition was curated
exclusively for Abbot Hall by art historian Jovan Nicholson, the
grandson of the artist, and drew on new research, including
previously unseen archival material. Lakeland Arts published
the full colour catalogue of the exhibition.
Artists have been drawing the figure for centuries, from
carefully composed life drawings to people caught unaware
at leisure or work. People on Paper brought together some
of the finest examples from the Arts Council Collection and
had drawings by fifty artists including Charles Avery, Frank
Auerbach, Martin Bloch, Peter Blake, John Braby, John
Craxton, Peter de Francia, Lucian Freud, Antony Gormley,
Alistair Gray, Barbara Hepworth, David Hockney, Howard
Hodgkin, Gwen John, Leon Kossoff, Richard Hamilton, L
S Lowry, Henry Moore, Eduardo Paolozzi, William Roberts,
William Scott, Walter Sickert, Stanley Spencer and Euan
Uglow.
The exhibition of the internationally acclaimed American artist
Paul Jenkins (1923-2012) focused on a specially chosen
group of canvases including large-scale works and the
compelling and mysterious black and red Oracle triptych. Paul
Jenkins is as much identified with the process of controlled
paint-pouring and canvas manipulation as with the gem-
like veils of transparent and translucent colour which have
defined his work since the late 1950s and which gained him
prominence in New York and Europe. The exhibition was in
association with the Redfern Gallery, London.
Blackwell, The Arts & Crafts House
• John Harden Artist of Leisure 19 September 2015 – 28 February 2016
• The Baillie Scott Folio: House for an Art Lover 23 October 2015 – 11 May 2016
• Fifty Shades of White 15 January - 28 February 2016
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The ambitious show of Laura Ford’s sculptures was spread
across Abbot Hall and Blackwell and expanded on its previous
incarnation in Horace Walpole’s fabulously gloomy gothic
interiors at Strawberry Hill. Key works from all periods of Ford’s
career occupied the period spaces inside, while outside at
Blackwell Ford’s cats paced anxiously on the lower lawn, the
down-and-out urban cousins of some of Beatrix Potter’s best-
loved characters took up residence in the courtyard, and two
girls were frozen in the moment of their silent sorrows on the
south lawn.
This exhibition was originally conceived by Stephen Feeke,
Director of the New Art Centre, Roche Court, for Strawberry
Hill House, and was reconfigured with additional content
selected by Lakeland Arts in close collaboration with the artist.
Conceived and devised by artist Christian Barnes, A
Bathymetric Atlas, is a huge and unique hand-made book,
revealing the hidden contours of the principal lakes in the
Lake District. The work was shown, for the first time in
Cumbria at Blackwell. Its pristine white pages were turned by
volunteers, three times a day, during the exhibition, creating a
performance that revealed the layers and contours.
Annie Garnett (1864-1942) was a formidable designer,
gardener and entrepreneur whose textiles influenced the
revival of hand spinning and weaving in the Lake District. She
had a keen sense of colour inspired by the flowers in her
garden and landscape of the Lake District. She established
and managed The Spinnery in Windermere, which produced
beautiful textiles using traditional methods. This exhibition
showcased the treasures of the Annie Garnett Archive, held
at Museum of Lakeland Life & Industry, and told Annie’s story
through her own possessions and words. Rare autochromes,
photographs, diary entries, personal objects and textiles
combine to give a real sense of Annie Garnett and The
Spinnery. The show was co-curated with Professor David
Ingram.
Museum of Lakeland Life & Industry
• Yards of Industry: The Working Life of Kendal’s Yards 13 February - 3 September 2017
• Joseph Hardman: People on Film 17 September - 17 December 2017
The yards of Kendal are a unique part of the town’s history,
once bustling patches of life and industry they still shape the
distinctive feel of the town today. This display looked at the
history of these unique spaces, what it was like to live and
work in the yards and how they got their distinctive names.
This display showed many objects from the industries that
flourished in the yards.
Joseph Hardman was a prolific photographer who captured
an image of Lakeland life between the 1930s and the 1960s.
Museum of Lakeland Life & Industry holds over 5000 of his
original glass slides. This show brought together some of
these images to examine an aspect of Hardman’s work that
is often overlooked, his use of people as subjects. Hardman
is more famous for his stunning landscapes or the work
of shepherds, but people from all walks of life played an
important role in his photographs.
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Collections and Displays
Acquisitions
Acquisitions in 2016 to the permanent collections held by
Lakeland Arts Trust were:
Fine Art • Frank Auerbach, Reclining Head of Julia, 1994
(through the Government’s Acceptance in Lieu Scheme)
• Bardy Crewdson, Portrait of Mary Burkett
• Nicholas Volley, Jerome Street with Snow, 2005 (gift via the ArtFund)
• Nicholas Volley, Black Jug and Bust of Carl (gift via the ArtFund)
• Nicholas Volley, Tea Time (gift via the ArtFund)
• Paul Jenkins, Phenomena Lasting Glade
Decorative Art • Chris Keenan, ceramic tile inspired by the Blackwell
visitor book.
• Laura Ford, In Remembrance, 1998
Social History • Knitted blanket
• National Service Uniform from the 1950s
• A bristle hand brush
• Ephemera relating to Ibis Engineering
• 17 photographs of the Lake District from the 1950s
• Tin trunk from Howards Orphan Home in Kendal
• Paraffin iron
• Two Cumberland wrestling belts
• Herdwick wool skirt and jacket
Windermere Jetty • Thomas West, A Guide to the Lakes, 5th edition,
1793
• Shepherd’s boat builder’s costings notebook, 1916-1945
• LMS Handbill, Steamer Services, 1941
• Ephemera relating to the Windermere Ferry
• Woodworking tools
• Unpublished letter dating from 1945 from author Arthur Ransome to a local man. In it he describes his love of sailing, and a boat he had built at Arnside in 1934, almost certainly Coch-y-Bonddhu, which will be on display in the new Museum.
Loans In
The following items were generously loaned for display at
Blackwell, The Arts and Crafts house:
• Pilkington’s Tile and Pottery Company, 11 earthenware vases, c.1900. On loan from the Peter Scott Gallery, Lancaster University
• MH Baillie Scott, clock, c.1900. On loan from the Victoria and Albert Museum.
• Morris and Co. original embroidery design, Celandine and Lily. On loan from the William Morris Society
• Morris and Co. original wallpaper design, Grafton. On loan from the William Morris Society
• Morris and Co. daisy tile and diagonal leaf tile. On loan from the William Morris Gallery.
• Embroidered linen coverlet, c.1900-1920. On loan from Gawthorpe Textiles
• Bedspread. On loan from Paul Reeves
• MH Baillie Scott, drop leaf table, c.1900. On loan from Paul Reeves Antiques
• MH Baillie Scott, leather top writing table. On loan from Paul Reeves Antiques
These items were loaned for future display at Windermere
Jetty:
• Wooden model boat building parts. On loan from a private collection.
• 3 sailing dinghies (Swallow One and Two, and Amazon) from the 2016 film Swallows and Amazons. On loan from Harbour Pictures Productions.
• Pop up poster from the 2016 Swallows and Amazons film. On loan from a private collection.
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• Original shipbuilder’s model of the steam yacht Britannia. On loan from Glasgow Life.
• Painting of the ‘King of the Lake’ Col. Ridehalgh. On loan from the National Trust.
Collection Loans Out
We lent works to a number of exhibitions in 2016.
Spotlight Gallery ExhibitionTullie House Museum and Art Gallery: 7 November 2015 to 7 February 2016 • Joseph Francis Gilbert, Ullswater Head, Cumberland,
1834.
Barbara Hepworth: Sculpture for a Modern WorldTate Britain, London: 24 June 2015 – 25 October 2015Kröller-Müller Museum, Otterlo: 27 November 2015 – 17 April 2016Arp Museum, Remagen: 22 May 2016 – 28 August 2016 • Ben Nicholson, 1932 (crowned head – the queen),
1932
The English Rose Feminine Beauty from Van Dyck to Sargent The Bowes Museum: 14 May to 25 September 2016 • George Romney, Emma Hart as Miranda
Stanley Spencer: Of Angels and DirtThe Hepworth Wakefield: 25 June to 5 October 2016 • Stanley Spencer, Portrait of Daphne Charlton, 1941
LGBT History in CumbriaTullie House Museum & Art Gallery: 10-31 October 2016 • Percy Kelly, Millom, Cumberland, 1975
• Percy Kelly, Whitehaven Harbour, 1977
Winifred Nicholson: Liberation of ColourMiddlesbrough Institute of Modern Art: 21 October 2016 to 12 February 2017 • Winifred Nicholson, Amaryllis, 1967
Joan Eardley: A Sense of PlaceScottish National Gallery of Modern Art: 3 December 2016 to 31 May 2017 • Joan Eardley, Salmon Nets 1, 1961
• Joan Eardley, Children and Chalked Wall 2, 1963
• Joan Eardley, The Cornfield, 1962
Accreditation
Abbot Hall Art Gallery, Museum of Lakeland Life & Industry and
Blackwell, The Arts & Crafts House are Accredited museums.
In August Lakeland Arts submitted Accreditation Returns to
renew Accreditation and we are due to know the outcome in
2017.
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Learning and Community Engagement
Lakeland Arts provides high quality activities including creative
workshops for all ages throughout the year.
We ran activities at each half term across all three sites. This
included new activities at Blackwell, The Arts & Crafts House
for example in May children at Blackwell made stop motion
films inspired by the Laura Ford sculpture exhibition. The
Education Room was a hive of activity with 40 films made over
the course of the week.
Art Camp ran from 25 -29 July with 15 local children. Children
experienced the sites and art and heritage at Abbot Hall Art
Gallery and Blackwell and our Cumbria Museum Consortium
Partners at The Wordsworth Trust and Tullie House Museum
and Art Gallery. Children engaged in creative activity across
four sites and achieved an Arts Award Discover by the end
of the week. Three young people (aged between 16-18)
volunteered with Lakeland Arts for Art Camp and two of them
achieved Arts Award Gold. On day four of Art Camp the
children met ceramic artist Chris Keenan who gave a tour
of his installation and discussed how Blackwell had inspired
him. On the last day of Art Camp, the children mounted an
exhibition of their own art work in the Lakeland Arts Barn at
Abbot Hall; Chris Keenan opened the exhibition.
We staged an ambitious summer holiday programme across
Abbot Hall and Blackwell from 18 July – 2 September.
It involved a textile artist working with members of the
community to create two giant rag-rugs. Over 450 people took
part in the activity and the textile artist posted regular images
and messages on Lakeland Arts’ social media platforms. The
finished rugs will go on show at the new Windermere Jetty,
Museum of Boats, Steam and Stories.
In October, we ran a drawing and colouring competition at
Blackwell as part of Big Draw. We received 55 submissions
by visitors ranging from ages 3 to 90+. The illustrator, Sophie
Martin, selected winners in under and over 16 categories and
provided feedback for all entries on our family Facebook page.
At Abbot Hall, we commissioned a freelance artist to transform
the lower split level gallery into an artist’s studio and learning
resource space that links to the exhibition programme.
Lakeland Arts worked strategically in 2016 with local teachers
and Heritage Learning Lancashire to develop and refine new
schools programmes that align with the National Curriculum
and support teachers in the delivery of this in schools.
Dementia Programme – In the Moment
Lakeland Art’s Learning and Engagement team have
continued to deliver quality engagement activities in all
Lakeland Arts venues and around Kendal to support people
living with dementia. In 2016 we expanded this work to
include intergenerational activity and fundraising linked to the
sustainability of the In the Moment programme. Participants
took part in two national Creative Age Challenge fundraising
initiatives. The first Creative Age Challenge transformed
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Space2Create’s building walls into a garden made of flowers
created by participants and local school children; the garden
was a visual symbol of the possibility of living well with
dementia. Four local schools supported the Creative Age
Challenge, with children generating £500 sponsorship for In
the Moment participants.
The second Creative Age Challenge took place throughout
October. The central tenet of activity was to raise awareness
about the positive impact that creative activity can have on
people living with dementia and to help fundraise to sustain
the creative and cultural engagement work of In the Moment.
It was very strongly intergenerational. Local people knitted
and crocheted sheep and donated them anonymously to the
Hand Made Herd of Sheep. Over 450 people were involved in
making 700 sheep and raising over £1200 to support people
living with dementia and their carers. The initiative featured on
BBC North West Tonight.
Lakeland Arts’ Learning Officer, Anne-Marie Quinn, who led
the initiative received a Fellowship of the Royal Society of Arts
for what they describe as her ‘visionary work’ in using the arts
to support people living with dementia.
In September, the Learning and Engagement team delivered
sessions for Lakeland Arts’ staff to raise awareness of the
work the organisation delivers to enrich the lives of people
living with dementia, how it affects a wide range of people
and how they can become advocates for the Enriched
by Moments programme. This was part of Lakeland Arts
becoming a dementia friendly organisation.
Museums at Night
Blackwell hosted a dance for families as part of the national
Museums at Night initiative in May. The event engaged a
new and diverse audience with 40 people in attendance
plus a 5-piece folk band that played in the inglenook in the
Main Hall. Children ranged from under 3 to 12 years old and
the feedback was tremendous - the event was praised for
“bringing people from the community together.”
Windermere Jetty, Museum of Boats, Steam & Stories
The Esperance Programme is a range of projects aimed
at engaging schools with Windermere Jetty, the collection
and the building construction. Each project aimed to have
a tangible outcome that can be used or displayed at the
Museum when it opens. Each group had the opportunity to
work with a partner, whether that was an artist or our own
Conservation Boat Building team. During 2016 we worked
with six primary and secondary schools across six projects.
The Jetty on Tour programme in the school holidays allowed
us to engage with families and tell them about the Museum,
the family programmes that will be on offer and get feedback
on our plans for family provision at Windermere Jetty. For
Heritage Open Day we organised site tours at the Windermere
Jetty site. 145 people came to visit the site and were shown
the construction work and had a talk in the Conservation
Workshop about the boat conservation.
Volunteers
Volunteers make an invaluable contribution to Lakeland Arts by
giving time and expertise to support the work that we do, from
mounting exhibitions to restoring boats.
Many people come in regularly to help with caring for the
collections, completing tasks such as recording and marking
objects and researching them. The research develops
understanding of the collections their significance which is
then included in new displays and exhibitions. In 2016, this
resulted in the exhibition at Blackwell: Spinning the Colours of
Lakeland: Annie Garnett’s Spinnery, Textiles and Garden and
will result in 2017 in a new publication on Annie Garnett by
Professor David Ingram and Dr Rachel Roberts.
It is a delight to see the skilled work that volunteers put into
the restoration and care of the historic boats that are being
prepared for display at Windermere Jetty. This has included
drawing and making new engineering parts for the steam
boats and completing the restoration of the original engine for
the Chris Craft motor boat Jane.
Volunteer invigilators contributed well over 3,000 hours at
Abbot Hall which enabled us to show exhibitions and works of
art of national and international significance. This wouldn’t have
been possible without such tremendous support. Another
group of volunteers gave talks at the Gallery and led guided
tours of Blackwell.
Volunteers helped with activity and learning programmes
including holiday activities. Volunteers played a major role
in making the Creative Age Challenge so successful. Local
people knitted and crocheted sheep and donated them
anonymously to the Hand Made Herd at Museum of Lakeland
Life & Industry.
14 15
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Development
Windermere Jetty, Museum of Boats, Steam and Stories
Thomas Armstrong continued with construction throughout
2016 following their formal appointment in October 2015.
By the end of the year, the building structures were all in
place and work had begun on walls and roofs. A number
of construction related issues were raised during the year
which resulted in delays to the construction and opening
programme.
The Learning team continued to develop the learning and
engagement programme that will be delivered when the
Museum opens. Pilot programmes included the highly
successful Esperance Project working with six schools across
the area.
Conservation work to the collection in preparation for the
Museum opening continued throughout 2016 with significant
work being undertaken to SL Osprey, SL Branksome and MV
Jane in addition to many of the smaller boats that will go on
display in the new museum.
Eleven of the 23 boats going on static display were cleaned
and prepared for exhibition in 2016:
1. Miss Windermere IV
2. Cookie
3. White Lady II
4. Borwick’s Skiff
5. Canfly
6. Kittiwake
7. Chris Applebee’s Hydroplane
8. 1898 Motorboat
9. Margaret
10. Sunderland Float
11. Dolly
Some objects were sent away for specialist conservation,
including the painted glass from the skylight which is the only
surviving part of the steam yacht Britannia. Objects returned
from conservation, included fragile leather work and the
1960’s diving suit worn by one of Dolly’s salvage team when
the boat was lifted from Ullswater.
The main areas of work in 2016 on SL Osprey (1902) were
varnishing and painting, making the engine and boiler covers,
fabricating engineering parts and installing equipment to
enable the boat to be operated on the lake after the Museum
opens. One set back was finding that the boiler needed
repairs and these were started in 2016.
SL Branksome will be displayed in the dry dock in the
Museum. When the panelling and seats were removed, we
observed significant areas of decay and poor historical repairs
in the bottom and lower parts of the boat. Repairs were
completed on the starboard side and progressed on the port
side, where the damage was less severe. A new stem was
installed and work started on the varnishing of the cabin and
other areas, with the aim of keeping the original patina as far
as possible.
MV Jane, an evocative 1930s motor boat, was repaired and
painted. The engine was fully restored by a volunteer.
The Blackwell Project: An Arts & Crafts Story
The Blackwell Project is generously supported by the Heritage
Lottery Fund and a number of trust, foundations and individual
donors.
In 2016, we completed the Arts and Crafts permanent
exhibition telling the story of the Arts and Crafts movement.
This was designed by Studio SP, Edinburgh and installed for
Easter. The exhibition features beautiful objects on loan from
the Victoria and Albert Museum, William Morris Society, William
Morris Gallery and private lenders and collectors.
Work progressed on the recreation of a Arts and Crafts
Master Bedroom, in the room that was originally the Master
Bedroom when the Holts occupied the House. Decoration of
the room was based on original paint scrapings and featured
paint from companies which Baillie Scott had used in his
career. The room featured a hand stenciled frieze based on
the Rowan tree and berries by Baillie Scott. Two new loans
of furniture by Baillie Scott were placed in the room alongside
a commissioned recreation of a bed by Baillie Scott in oak.
Additions for 2017 include an embroidered bed spread.
Other developments included:-
• A timeline detailing the history of Blackwell, the Holts and
Baillie Scott’s career in the entrance at Blackwell.
• New learning resources and interpretation to accompany
the Arts and Crafts Master Bedroom. The dressing room
off the master bedroom now has dressing up costume
linked to the clothes and activities that the Holt Family
enjoyed when they owned the house.
• A new orientation map and children’s trail.
• New drawings of Blackwell in the Tea Room to better
illustrate what is in the house to encourage tea room
patrons to visit the house.
• A room dedicated to the period when Blackwell was
a school, including oral history recordings of pupils
remembering their time at Blackwell and the head teacher
Miss Murphy.
16 17
Commercial Activities
Lakeland Arts Enterprises is Lakeland Arts’ wholly owned
trading subsidiary and all the net income supports the activities
of the charity.
Retail We introduced a number of new makers to the Blackwell Craft
Shop, which we carefully selected including from the British
Craft Trade Fair in Harrogate. New makers in 2016 included
Julie Fewster, Elin Isaksson and Penny Withers. Glassware
in the Blackwell Shop sold particularly well including many
key pieces. Biggest sellers in the Blackwell Shop were the
Blackwell Guide Book, Blackwell Mug, Stained Glass Greeting
Card and Postcard of Stained Glass in the Dining Room.
These helped us maintain healthy sales during 2016.
To mark the success and reputation of the Blackwell Craft
Shop we were awarded the Hudsons Highly Commended
Retail award for 2016.
The Art Wall in the Abbot Hall Shop continued to be a great
place in 2016 to find original affordable art. The Winfred
Nicholson catalogues sold well throughout the exhibition. A
small re-print was done towards the end of the exhibition and
the catalogue has also been bought by people not being
able to come to the exhibition and we sent out over 150
catalogues via mail-order.
Online sales of Joseph Hardman’s evocative photographs of
the Lake District helped boost sales at Museum of Lakeland
Life & Industry shop. We also introduced new books,
greetings cards, giftware and fabric makers products. In
spring 2016 the visitor route in the Museum was changed and
visitors now enter the museum where the shop is and they
exit in the glass entrance lobby. We have moved the large
printing press from the entrance lobby and replaced it with
newly decorated plinths displaying a variety of shop stock to
encourage visitors to enter the shop once they have finished
their visit.
CateringOverall, the Blackwell Tea Room had a steady year throughout
2016 and showed an increase in visitor numbers. The Tea
Room has an established group of local customers that come
regularly for lunch or afternoon tea.
Blackwell Tea Room hosted a number of special celebration
events in 2016 including Valentine’s Day lunches on 13
and 14 February, Afternoon Tea for Mothering Sunday, and
Christmas lunches. We sold 203 Christmas lunches in 2016,
an increase of over 50% on the previous years.
At Abbot Hall, flooding in 2015 resulted in the loss of our
permanent Coffee Shop throughout 2016. In June, the Fat Cat
Café popped up at the Abbot Hall and Museum site. The café
was a temporary facility to offer the visitors to Abbot Hall and
the Museum a better visitor experience. We went for a local
theme and sourced all the furniture, crockery and equipment
locally within Kendal (many items were kindly donated by
Friends of Lakeland Arts) the Tea Room kitchen at Blackwell
provided the Fat Cat Café with homebakes, cakes and mini
quiches.
Marketing and Communication
2016 marked a year of change for Lakeland Arts marketing
approach. We reviewed our marketing and communications
approach and developed a new Lakeland Arts Marketing
Strategy, revised our print and marketing materials, and
recruited a new marketing team for 2017.
As well as excellent local and regional press and media
coverage in 2016, Lakeland Arts received national coverage
for Laura Ford in Art Quarterly Spring 2016, Guardian Guide,
and I (Independent). Winifred Nicholson was featured in
Historic House Magazine Autumn 2016 and Galleries
Magazine November 2016. People on Paper received
coverage in Art Quarterly Autumn 2016 and Artist and
Illustrators October 2016. Other media coverage included on
BBC Radio 2 Arts “Bacon to Rego” and Sunday Times “Great
British Breaks” including Blackwell, The Arts & Crafts House
in September 2016. Lakeland Arts continues to work with
Cumbria Life as a Media Partner.
Our audience insight grew further as we worked with Audience
Finder and received detailed data for 2015-16 for each of
the sites. Insight includes demographic data, reason for visit,
awareness of the venues, accommodation, visitor experience
and membership. This information has been utilised in the
development of the Lakeland Arts Marketing Strategy.
We invested in organisation wide training in the Customer
Relationship Management system in 2016, so all colleagues
have access to live data on audience and trends. This
supports efficient use of resources, and enables us to
communicate with contacts digitally rather than solely by print.
16 17
Fundraising
Lakeland Arts raises around 40% of its income from a range
of voluntary sources. These include public funders, trusts
and foundations, individuals and corporate giving. Support
from these sources is vital to enable us to undertake all our
activities, conserve and care for our Grade 1 listed buildings,
develop and care for the permanent collections, promote
excellent world-class art and heritage, and offer learning
and engagement programmes that benefit and involve local
communities.
In 2016 Lakeland Arts raised £735,133 of voluntary income
through donations, grants and sponsorship. Our Patrons
and Benefactors are extremely important to us as key
supporters, raising a total of £25,340 in 2016, and our
Friends membership continued to grow during 2016 to around
1,800 members. Our core activity was supported by the Sir
John Fisher Foundation, South Lakeland District Council,
the Lakeland Arts Support Trust, and Kendal Town Council.
Together, these funders make up a significant proportion of our
voluntary income.
Unrestricted core funding was received through Arts Council
England’s Major Partner Museum Programme as Lakeland
Arts is a member of the Cumbria Museum Consortium,
working in partnership with the Wordsworth Trust and Tullie
House Museum and Gallery Trust. Lakeland Arts also received
core funding as an Arts Council England National Portfolio
Organisation.
Our 2016 exhibition programme received a good range of
support from charitable trusts and corporate supporters.
This included Sanlam Private Wealth and Armstrong Watson.
Brewin Dolphin continue as significant Corporate Patrons of
Lakeland Arts.
In 2016, we continued the fundraising campaign to deliver
the Windermere Jetty capital project. We continued the
Jetty Appeal, offering donors a chance to have their name
inscribed on the main jetty. We also completed raising funds
for the Windermere Jetty Endowment Fund, with the incentive
of matched £1 for £1 funding made possible through the
Heritage Lottery Fund’s Catalyst Endowment Initiative.
Lakeland Arts was grateful to receive significant legacies
in 2016, particularly from the late Mary Burkett’s Scottish
Provident Trust and from the estate of the late Ruan Peregrine
James Galloway McWilliam for the Blackwell Project.
A full list of voluntary income received by Lakeland Arts is
included in note 4 to the accounts.
Lakeland Arts would like to thank for their ongoing support all
of the individuals and organisations mentioned, the Patrons
and Benefactors and those who wish to remain anonymous.
Benefactors
Mr and Mrs T Ambler
Mr and Mrs J Campbell
Mr and Mrs T J R Harding
Dr and Mrs A C I Naylor
Mr T P Naylor
Mr and Mrs J Rink
Dr J P L Welch
Patrons
Mr Martin Ainscough
Mr and Mrs C H Bagot
Mr O Barratt MBE and Mrs V Barratt
Mr and Mrs D Case
Lord and Lady Cavendish
Mr J E Coward
Mr C Crewdson OBE and Mrs V Crewdson
Sir James Cropper KCVO
Mr and Mrs W Dufton
Mr J Entwistle
Mr A Firth
Mrs B A Fletcher
Mr and Mrs D Goeritz
Mr R Hassell-McCosh
Ms J Holland
Mr P Kessler MBE and Miss D Rose QC
Susan, Lady Kimber
Mr and Mrs J Lee
Mrs D Matthews JP
Mr J S Nicoll and Ms L Colchester
Mr T Parker
Mr C Sanderson OBE JP
Mr and Mrs A Scott
Mr and Mrs E Thomas
Mrs S Thornely DL
Mr J Townson
Dr T Tuohy
Mr and Mrs G M Wallace
Mr and Mrs P M White
Ms J Wood
Mr C Woodhouse CVO and Mrs M Woodhouse
Mr N Woodhouse
Corporate Patrons
Brewin Dolphin
And all those who wish to remain anonymous
18 19
18 19
3. Structure, Governance and Management
Lakeland Arts (the charitable company) is a company limited
by guarantee and is also a registered charity. The charitable
company was set up as part of an exercise to modernise the
constitution of a separate charity, Lakeland Arts Trust, which
is an unincorporated trust, constituted under a trust deed
dated 19 August 1957 and is a registered charity, number
526980. Lakeland Arts Trust was formed to save Abbot Hall,
an important mid eighteenth century Grade 1 Listed house on
the banks of the River Kent in Kendal, and to convert it into an
Art Gallery.
The charitable company is governed by its Memorandum
and Articles of Association and has similar objectives to
Lakeland Arts Trust. As of 1 August 2013 the charitable
company replaced the Trust as the operator of the various
venues for use by the public and took over the redevelopment
of Windermere Jetty. The funds, assets and liabilities of
Lakeland Arts Trust were transferred to the charitable
company. Lakeland Arts Trust continues to hold the Blackwell
Endowment which is a permanent endowment, and the
collections which are loaned to the charitable company.
The directors of the charitable company are its trustees for
the purposes of charity law. The Board of Trustees of up to
fifteen members, but not less than six, meets regularly and
administers the charitable company. The trustees are elected
by the Board of Trustees at the Annual General Meeting in
accordance with the Articles of Association. The trustees who
have served during the year and since the year end are shown
in the Charity Information on page 2.
At their meetings, the trustees agree the broad strategy,
policy and areas of activity for the charitable company,
including consideration of financial policy, reserves and risk
management policies and performance. Trustees also decide
the level of pay for key management personnel taking into
account appropriate benchmarks. A disclosure in relation to
remuneration and expenses of key management personnel is
included in note 20 to the accounts. The Board of Trustees
appoints Investment Managers, currently Sarasin & Partners
LLP, who are responsible for implementing the overall
investment policy.
The trustees keep the skill requirements for the trustee body
under review. New trustees are appointed only where they
have the necessary skills to contribute to the charitable
company’s work and development. The induction process
for any newly appointed Trustee comprises an initial meeting
with the trustees, followed by a series of meetings with the
Chairman and senior staff on powers and responsibilities
of the trustees, the aims and objectives of the charitable
company, the forward programme of work, the staffing and
organisation of the charitable company.
Related parties
The charitable company has a close relationship with the
following:
• Lakeland Arts Trust. The charitable company is the sole
corporate Trustee of Lakeland Arts Trust;
• Lakeland Arts Enterprises Limited. This is the wholly
owned trading subsidiary of the charitable company.
These two entities together with Lakeland Arts make
up the group for the purposes of these consolidated
accounts.
• Lakeland Arts Support Trust, a charity formed in 1998
for the purpose of generating income to provide financial
support for the charitable company at its Abbot Hall site
in Kendal;
• South Lakeland District Council, which owns the Abbot
Hall building - SLDC also makes an annual grant towards
the charitable company’s costs.
Risk management
All significant activities undertaken are subject to a risk review
as part of the initial project assessment and implementation.
Major risks are identified and ranked in terms of their potential
impact and likelihood. Major risks, for this purpose, are those
that may have a significant effect on:
• Operational performance, including risks to staff,
volunteers and visitors;
• Achievement of aims and objectives; or
• Meeting the expectations of beneficiaries or supporters.
The trustees review these risks on an ongoing basis and
satisfy themselves that adequate systems and procedures
are in place to manage the risks identified. Where appropriate,
risks are covered by insurance. The following framework is
central to ensuring adequate risk management:
• Regular monitoring of major risks and development of
disaster recovery plans;
• Embedding risk identification and assessment within
operating procedures;
• A clear structure of delegated authority and control; and
• Maintaining reserves in line with set policies.
In assessing risk the trustees recognise that some areas of
work require the acceptance and management of risk if key
objectives are to be achieved. The trustees have reviewed
the major risks to which the charitable company is exposed
and identified control and mitigation procedures, under the
headings of:
• Governance;
20 21
• Operational;
• Financial;
• Environmental; and
• Compliance.
4. Financial Review
Financial Review (including reserves policy)
The Consolidated Statement of Financial Activities shows total
income of £7,825,344 an increase of 145% compared with
2015. This included unrestricted funds totalling £1,747,967
(2015 £1,379,548); restricted funds totalling £5,895,372
(2015 £1,684,576) and restricted endowment funds totalling
£182,005 (2015 £120,713).
There was a 1% decrease in income from admission charges.
Both Abbot Hall Art Gallery and Museum of Lakeland Life &
Industry had successful years given the challenges presented
by the flooding and ticket sales were in line with predicted
levels. Blackwell, The Arts & Crafts House unfortunately had
fewer visitors than anticipated during the year.
Income includes voluntary income of £5,855,552 (2015
£1,632,818) for the Windermere Jetty Project. Details of
funding and donations for the project as well as a details of all
voluntary income are included in note 4 to the accounts.
The trading subsidiary Lakeland Arts Enterprises Ltd
contributed £16,806 to the consolidated result, a decrease
of 36% compared with 2015. This was primarily because of
the impact of flooding which forced the closure of the Coffee
House at Abbot Hall until mid-year, when it was replaced by
temporary facilities, and the reduction in the number of visitors
to Blackwell.
Total resources expended were £2,243,163, an increase of
£346,234 (18%) compared with 2015. Included is £437,581
of expenditure in relation to the Windermere Jetty Project
(2015 £293,677).
The market value of portfolio investments rose by £114,953
during the year regaining more than the drop in value of
£33,714 last year.
The Net Movement of Funds for the year showed an increase
£5,657,686 which is essentially attributable to an increase
in the amount of restricted funds held for Windermere Jetty,
investment losses and an operating loss of £28,263 before
pension liability fluctuations for the year.
Investments and Investment Policy
The charitable company has the power to make investments
that it sees fit. The investment policy determined by the
trustees for the endowment funds is to provide a balanced
return from a broad spread of medium risk investments, and
for general funds to provide a higher income from a spread of
lower risk investments. The investment policy is implemented
by professional investment managers Sarasin & Partners LLP.
Reserves
The balance in the unrestricted reserves of the charitable
company at the end of the year was £574,606 before the
pension past deficit provision of £477,585 (2015: £631,486).
The restricted reserves of the charitable company comprise:
Windermere Jetty asset in the course of construction:
£7,990,615 (2015: £1,612,432)
Windermere Jetty capital project funds: £1,185,783 (2015:
£2,195,475)
Other restricted funds (detailed in note 18 to the accounts):
£114,137 (2015 £30,053)
The endowment funds of the charitable company comprise:
General endowment funds £683,946 (2015 £662,848)
Windermere Jetty endowment funds £309,805 (2015
£127,800)
Lakeland Arts Trust Blackwell endowment funds (£1,084,949)
(2015 £1,015,228)
The main features of the charitable company’s reserves policy
are as follows:
• the need for reserves will vary depending on the
charitable company’s financial position and continuous
assessment of the many risks the charitable company
faces at a particular time;
• the reserves will be assessed as part of the charitable
company’s mid-range planning process and the need
to build reserves will also be taken into account in the
annual planning and budgeting process;
• reserves exist either to provide short term protection
against downward fluctuations in annual revenues
or capital receipts – or to provide long term strategic
financial support and development;
• the reserves policy balances the need to build up long
term reserves against the need for short term spending
on core activities; and
• the charitable company seeks to ensure that every new
acquisition is fully funded through the establishment
of a separate endowment or other restricted fund, if
necessary, and hence will not need to be supported by
the general fund.
20 21
5. Plans for Future Periods
Lakeland Arts has planned an exciting and wide ranging
programme in 2017 of exhibitions, displays, learning and
community engagement. We will complete re-instatement
works at Abbot Hall to bring the areas of the building back
into use that were damaged by unprecedented flooding in
December 2015. The contractor is due to complete the
buildings for Windermere Jetty Museum of Boats, Steam and
Stories in 2017, so we can open the new world-class heritage
attraction in 2018.
The first exhibition of the year at Abbot Hall Art Gallery will be
George Shaw, My Back to Nature. This will celebrate Shaw’s
two-year residency as Associate Artist at the National Gallery,
London and we are delighted that this will be the first showing
of the exhibition outside the National Gallery. At the same time,
we will be displaying three important historical works from
the National Gallery’s collection. The paintings by Pierro del
Pollaiuolo, Nicolas Poussin and John Constable each inspired
Shaw’s residency and the work he created over the period.
In April, we will open the exhibition at Abbot Hall of work by
Julian Cooper: Paintings from 1970-2017. The exhibition
will mark Cooper’s 70th birthday. It will comprise of over
30 monumental paintings, acting as powerful distillation
of his extensive output from 1970 to the present day. The
diversity of scale and subject matter in the show will reflect
the artist’s own travels – from the fells and mountains of the
Lake District and Cumbria, to work inspired by his trips to
South America, the Alps, the Himalayas, and the quarries of
Tasmania and Carrara. Lakeland Arts will publish a catalogue
with the exhibition with essays by Andrew Lambirth and Amy
Concannon. The exhibition will be supported by Rathbones
Investment Management and mounted with the assistance of
Art Space Gallery.
The summer show at Abbot Hall Art Gallery will be Painting
Pop. Focused on the period around 1962, the year Abbot
Hall opened, the exhibition will feature works from national
collections by artists including Peter Blake, Richard Hamilton,
Adrian Henri and Allen Jones. Alongside Painting Pop we will
display David Hockney’s: A Rake’s Progress (1961-1963). This
will present the entire series of etchings by Hockney, made in
response to his first trip to New York in 1961.
Lakeland Arts is pleased to be working with The Ingram
Collection in preparation for the autumn 2017 exhibition
at Abbot Hall Art Gallery. This unique private collection of
Modern British and Contemporary Art is the vision of media
entrepreneur and philanthropist Chris Ingram who started
collecting in 2002. It includes work by the major artists of the
twentieth century, and explores the work of emerging artists.
Lakeland Arts is planning two new exhibitions at Blackwell
in 2017. The first will be Griet Beyaert and Paul Miller The
Light Within and bring together fine glass sculpture and
22 23
digital technology. It will include an installation in the Oliver
Thompson Gallery with sounds and film of Blackwell created
by Miller projected onto Beyaert’s glass. The second exhibition
is Women of the Arts & Crafts Movement, which will explore
leading designers and makers of the period. Also in 2017,
we will complete the Master Bedroom as part of the Blackwell
Project to show the room as Baillie Scott would have
envisaged it with his designs for the frieze, bed, bedspread
and other furniture and furnishings.
Lakeland Arts invested in 2016 in improvements at Museum
of Lakeland Life & Industry including enlarging the space for
temporary exhibitions. We will show Fun on the Fells from
March, looking at the history and stories of walking and
climbing in the Lake District.
Our Learning and Engagement programmes in 2017 will
take inspiration from the collections and historic buildings.
They will be planned to support work with local communities
and schools and to encourage families and new visitors to
participate in a wide range of activities during the year. This
will include exploratory light installations at Blackwell during the
spring and a celebration of Swallows and Amazons, linking to
the newly released film, in the summer.
Our partnership with Equal Arts will enable Lakeland Arts to
extend to Blackwell the Enriched by Moments programme with
people living with dementia, which we started at Abbot Hall
in 2014. We will complete the Esperance Project which has
involved secondary and primary schools in the development of
Windermere Jetty.
Lakeland Arts employed Cruden Property Services as
contractor to do the repair and re-instatement works at Abbot
Hall, including measures to make the lower part of the building
more flood resilient. The work progressed well in 2016 and we
aim to complete the re-instatement by May 2017. It will be a
very welcome position to be in when we re-open the café and
other visitor facilities that have been closed since the flooding
in December 2015.
Construction of Windermere Jetty Museum of Boats, Steam
and Stories, undertaken by Thomas Armstrong (Construction)
Ltd, took longer than planned in 2016 and the revised date
for completing the buildings is summer 2017. Lakeland Arts
will then manage the fit out including moving the boats into
the exhibition space and on the water in the Boathouse and
setting up the Conservation Workshop where visitors will
see the skilled team of staff and volunteers conserving and
maintaining historic vessels. We aim to open the new world-
class Museum in spring 2018.
6. Trustees’ Responsibilities
The trustees (who are also directors of Lakeland Arts for the
purposes of company law) are responsible for preparing
the Trustees’ Annual Report and the financial statements
in accordance with applicable law and United Kingdom
Accounting Standards (United Kingdom Generally Accepted
Accounting Practice).
Company law requires the trustees to prepare financial
statements for each financial year, which give a true and fair
view of the state of affairs of the charitable company and of
the incoming resources and application of resources, including
the income and expenditure, of the charitable company
for that period. In preparing these financial statements, the
trustees are required to:
• select suitable accounting policies and then apply them
consistently;
• observe the methods and principles in the Charities
SORP 2015 (FRS 102);
• make judgements and estimates that are reasonable and
prudent;
• state whether applicable UK Accounting Standards
have been followed, subject to any material departures
disclosed and explained in the financial statements;
• prepare the financial statements on the going concern
basis unless it is inappropriate to presume that the
charitable company will continue in operation.
The trustees are responsible for keeping adequate accounting
records that disclose with reasonable accuracy at any time
the financial position of the charitable company and enable
them to ensure that the financial statements comply with
the Companies Act 2006. They are also responsible for
safeguarding the assets of the charitable company and hence
for taking reasonable steps for the prevention and detection of
fraud and other irregularities.
The trustees are responsible for the maintenance and integrity
of the corporate and financial information included on the
charitable company’s website. Legislation in the United
Kingdom governing the preparation and dissemination
of financial statements may differ from legislation in other
jurisdictions.
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7. Disclosure of Information to the Auditors
We, the directors of the company who held office at the date
of approval of these Financial Statements as set out above
each confirm, so far as we are aware, that:
• there is no relevant audit information of which the
company’s auditors are unaware; and
• we have taken all the steps that we ought to have
taken as directors in order to make ourselves aware of
any relevant audit information and to establish that the
company’s auditors are aware of that information.
In approving the Trustees’ Annual Report, we also approve the
Directors’ Report included therein, in our capacity as company
directors.
On behalf of the board
Charles W N CrewdsonTrustee and Hon Treasurer
24 25
Independent Auditor’s Report to the members and
trustees of Lakeland Arts
We have audited the financial statements of Lakeland Arts
for the year ended 31 December 2016, which comprise the
Consolidated Statements of Financial Activities (including the
Income and Expenditure Account), the Consolidated and
Parent (Charity) Balance Sheet, the Consolidated Statement
of Cashflows and the related notes. The financial reporting
framework that has been applied in their preparation is
applicable law and United Kingdom Accounting Standards
(United Kingdom Generally Accepted Accounting Practice)
including FRS 102 ‘‘The Financial Reporting Standard
applicable in the UK and Republic of Ireland”.
This report is made solely to the charitable company’s
members, as a body, in accordance with Chapter 3 of Part 16
of the Companies Act 2006 and to the charitable company’s
trustees, as a body, in accordance with regulations made
under section 154 of the Charities Act 2011. Our audit work
has been undertaken so that we might state to the charitable
company’s members and its trustees those matters we are
required to state to them in an auditor’s report and for no
other purpose. To the fullest extent permitted by law, we do
not accept or assume responsibility to anyone other than the
charitable company and the charitable company’s members
as a body and its trustees as a body, for our audit work, for
this report, or for the opinions we have formed.
Respective responsibilities of trustees and auditors
As explained more fully in the Trustees Responsibilities
Statement, the trustees (who are also the Directors of the
charitable company for the purpose of company law) are
responsible for the preparation of financial statements and for
being satisfied that they give a true and fair view.
We have been appointed auditor under the Companies
Act 2006 and section 151 of the Charities Act 2011 and to
report in accordance with those Acts. Our responsibility is to
audit and express an opinion on the financial statements in
accordance with applicable law and International Standards
on Auditing (UK and Ireland). Those standards require us to
comply with the Auditing Practices Board’s (APB’s) Ethical
Standards for Auditors.
Independent Audit Report
24 25
Scope of the audit of the financial statements
An audit involves obtaining evidence about the amounts
and disclosures in the financial statements sufficient to
give reasonable assurance that the financial statements
are free from material misstatement, whether caused by
fraud or error. This includes an assessment of: whether
the accounting policies are appropriate to the group’s and
the parent charitable company’s circumstances and have
been consistently applied and adequately disclosed; the
reasonableness of significant accounting estimates made
by the trustees; and the overall presentation of the financial
statements. In addition, we read all the financial and non-
financial information in the Trustees’ Annual Report to
identify material inconsistencies with the audited financial
statements and to identify any information that is apparently
materially incorrect based on, or materially inconsistent with,
the knowledge acquired by us in the course of performing
the audit. If we become aware of any apparent material
misstatements or inconsistencies we consider the implications
for our report.
Opinion on financial statements
In our opinion the financial statements:
• give a true and fair view of the state of the group’s
and the parent charitable company’s affairs as at 31
December 2016, and of the group’s incoming resources
and application of resources, including its income and
expenditure, for the year then ended;
• have been properly prepared in accordance with United
Kingdom Generally Accepted Accounting Practice;
• have been properly prepared in accordance with the
Companies Act 2006 and the Charities Act 2011.
Opinion on other matter prescribed by the Companies
Act 2006
In our opinion based on the work undertaken in the course of the audit:
• the information given in the Trustees’ Annual Report for
the financial year for which the financial statements are
prepared is consistent with the financial statements; and
• the Trustees Annual Report has been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by
exception
We have nothing to report in respect of the following matters
where the Companies Act 2006 and the Charities Act 2011
requires us to report to you if, in our opinion:
• the parent charitable company has not kept adequate
and sufficient accounting records; or
• the parent charitable company financial statements are
not in agreement with the accounting records or returns;
or
• certain disclosures of trustees’ remuneration specified by
law are not made; or
• we have not received all the information and explanations
we require for our audit.
• the trustees were not entitled to prepare the financial
statements in accordance with the small companies
regime and take advantage of the small companies
exemption in preparing the directors’ report and take
advantage of the small companies exemption from the
requirement to prepare a strategic report.
Helen Holmes FCA, BSc (Senior Statutory Auditor)For and on behalf of Stables Thompson & Briscoe
Statutory Auditor and
Chartered Accountants
Lowther House
Lowther Street
Kendal LA9 4DX
Stables Thompson & Briscoe is eligible to act as an auditor in
terms of section 1212 of the Companies Act 2006.
26 27
Consolidated Statement of Financial Activities(Including Income and Expenditure Account) For the Year Ended 31 December 2016
Notes Unrestricted Funds
£
RestrictedFunds
£
Restricted Endowment
Funds£
Total Funds
£
Total Funds2015
£
Income and endowments from:
Donations and legacies 4 547,901 187,232 735,133 644,150
Windermere Jetty Capital Project 4 5,673,547 182,005 5,855,552 1,632,818
Incoming resources from charitable activities: 400,209 400,209 404,317
Admission charges 10,219 10,219 6,799
Learning income
Income from other trading activities
Commercial trading operations 5 359,660 359,660 349,937
Commission on sale or return items 5 36,707 36,707 44,985
Investment income 6 26,159 34,593 60,752 66,675
Other income 7 367,112 367,112 35,156
Total 1,747,967 5,895,372 182,005 7,825,344 3,184,837
8
Expenditure on:
Raising funds 52,988 52,988 49,008
Fundraising trading; Commercial trading operations 374,761 374,761 368,839
Expenditure on charitable activities:
Operating Museums & Art Gallery 1,143,150 137,741 1,280,891 1,097,550
Windermere Jetty Capital Project 132,524 305,057 437,581 293,677
Other expenditure 96,942 96,942 87,855
Total 1,800,365 442,798 0 2,243,163 1,896,929
Net income/(expenditure) before investment gains/(losses) (52,398) 5,452,574 182,005 5,582,181 1,287,908
Gains/losses on investment assests 24,135 90,818 114,953 (33,714)
Net income/expenditure (28,263) 5,452,574 272,823 5,697,134 1,254,194
Other recognised gains/(losses)
Actuarial gains/(losses) on defined benefit pension schemes (39,448) (39,448) 10,988
Net movement of funds (67,711) 5,452,574 272,823 5,657,686 1,265,182
Reconciliation of funds
Fund balances as at 1st January 2016 (as restated) 164,732 3,837,961 1,805,876 5,808,569 4,543,387
Net movement in funds as above (67,711) 5,452,574 272,823 5,657,686 1,265,182
Fund balances at 31 December 2016 97,021 9,290,535 2,078,699 11,466,255 5,808,569
26 27
Consolidated Statement ofFinancial Activities(Including Income and Expenditure Account) For the Period Ended 31 December 2015
Notes UnrestrictedFunds
£
RestrictedFunds
£
Restricted Endowment
Funds£
Total Funds
£
Income and endowments from:
Donations and legacies 5 505,882 138,268 0 644,150
Windermere Jetty Capital Project 5 0 1,512,105 120,713 1,632,818
Incoming resources from charitable activities:
Admission charges 404,317 0 0 404,317
Learning income 6,799 0 0 6,799
Income from other trading activities
Commercial trading operations 6 349,937 0 0 349,937
Commission on sale or return items 6 44,985 0 0 44,985
Investment income 7 32,472 34,203 0 66,675
Other income 8 35,156 0 0 35,156
Total 1,379,548 1,684,576 120,713 3,184,837
Expenditure on: 9
Raising funds 37,775 11,233 0 49,008
Fundraising trading; Commercial trading operations 368,839 0 0 368,839
Expenditure on charitable activities:
Operating Museums & Art Gallery 890,458 207,092 0 1,097,550
Windermere Jetty Capital Project 43,001 250,676 0 293,677
Other expenditure 87,855 0 87,855
Total 1,427,928 469,001 0 1,896,929
Net income/(expenditure) before investment gains/(losses) (48,380) 1,215,575 120,713 1,287,908
Gains/losses on investment assests (3,988) 0 (29,726) (33,714)
Net income/expenditure (52,368) 1,215,575 90,987 1,254,194
Other recognised gains/(losses)
Actuarial gains/(losses) on defined benefit pension schemes 10,988 0 10,988
Net movement of funds (41,380) 1,215,575 90,987 1,265,182
Reconciliation of funds
Fund balances as at 1st January 2015 481,275 1,608,828 692,465 2,782,568
Proir year adjustments reported in 2015 230,429 1,013,558 1,438 1,245,435
Prior year adjustment - consolidation of Lakeland Arts Trust (505,592) 0 1,020,986 515,394
Fund balances as at 1st January 2015 as adjusted 206,112 2,622,386 1,714,889 4,543,387
Net movement in funds as above (41,380) 1,215,575 90,987 1,265,182
Fund balances at 31st December 2015 164,732 3,837,961 1,805,876 5,808,569
28 29
Consolidated Balance SheetAs at 31 December 2016
Notes Consolidated 2016
£
Consolidated 2015
£
Charity 2016
£
Charity2015
£
Fixed assests
Tangible assests 10 259,556 238,463 259,556 238,463
Asset under construction 11 7,990,616 1,612,432 7,990,616 1,612,432
Investments 14 2,156,577 2,041,624 1,071,630 1,020,398
Total fixed assets 10,406,749 3,892,519 9,321,802 2,877,293
Current assests
Stocks 5 36,639 34,329 - -
Debtors 15 1,081,927 747,724 1,109,806 762,560
Cash at bank and in hand 1,507,075 1,872,858 1,484,951 1,862,519
Total current assets 2,625,641 2,654,911 2,594,757 2,625,079
Liabilities
Creditors: Amounts falling due within one year 16 1,088,550 272,107 1,071,668 256,275
Net current assets 1,537,091 2,382,804 1,523,089 2,368,804
Net assets excluding pension liability 11,943,840 6,275,323 10,844,891 5,246,097
Pension scheme liability 17 (477,585) (466,754) - -
Net assests including pension scheme liability 11,466,255 5,808,569 10,844,891 5,246,097
The funds of the charity
Unrestricted funds 18 574,606 631,486 560,605 617,488
Pension scheme deficit (477,585) (466,754) - -
Restricted Funds
Endowment Fund 18 2,078,699 1,805,876 993,751 790,648
Other restricted funds 18 9,290,535 3,837,961 9,290,535 3,837,961
Total charity funds 19 11,466,255 5,808,569 10,844,891 5,246,097
Approved by the Trusees and signed on their behalf on 27 September 2017 by
Charles W N Crewdson, Trustee and Hon. Treasurer
The notes on the following pages form part of these financial statements
Registered company number 8162578
Registered charity number 1153001
28 29
Notes Total Funds 2016
£
Total Funds2015
£
Cash flows from operating activities:
Net cash provided by (used in) operating activities 5,993,281 717,136
Cash flows from investing activites:
Dividends, interest and rents from investments 60,752 66,675
Proceeds from the sale of property, plant and equipment - -
Purchase of property, plant and equipment (6,419,814) (607,473)
Proceeds from sale of investments - -
Purchase of investments - -
Net cash provided by (used in) investing activities (6,359,062) (540,798)
Cash flows from financing activities:
Repayments of borrowing - -
Cash inflows from new borrowing - -
Receipt of endowment - -
Net cash provided by (used in) financing activities - -
Change in cash and cash equivalents in the reporting period (365,781) 176,338
Cash and cash equivalents at the beginning of the reporting period 1,872,858 1,696,520
Change in cash and cash equivalents due to exchange rate movements - -
Cash and cash equivalents at the end of the reporting period 1,507,075 1,872,858
Reconciliation of net income/(expenditure) to net cash flow from operating activities
Net income/(expenditure) for the reporting period (as per the statement of financial activities) 5,582,181 1,287,908
Adjustments for:
Depreciation charges 20,537 2,103
Dividends, interest and rents from investments (60,752) (66,675)
Release of past pension cost liability (28,617) (27,850)
(Increase)/decrease in stocks (2,310) 576
(Increase)/decrease in debtors (334,201) (495,457)
Increase in creditors 816,443 16,531
Net cash provided by (used in) operating activities 5,993,281 717,136
Analysis of cash and cash equivalents
Cash in hand 1,507,075 1,872,858
Notice deposits (less than 3 months) - -
Overdraft facility repayable on demand - -
Total cash and cash equivalents 1,507,075 1,872,858
Statement of Cash FlowsAs at 31 December 2016
30 31
Notes Forming Part of the Financial Statements
1. Accounting Policies
The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the
financial statements are as follows:
a) Basis of accounts preparationLakeland Arts is a charitable company limited by guarantee incorporated in the United Kingdom. In the event of the charity being
wound up, the liability in respect of the guarantee is limited to £1 per member of the charity. The address of the registered office
is given in the charity information page of these financial statements. The nature of the charity’s operations and principal activities
are as an arts and heritage organisation caring for and running Abbot Hall Art Gallery and Museum of Lakeland Life & Industry in
Kendal, Blackwell, The Arts & Crafts House, and the new Windermere Jetty, Museum of Boats, Steam and Stories in Bowness-
on-Windermere.
The charity constitutes a public benefit entity as defined by FRS 102. The financial statements have been prepared in
accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing
their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)
issued on 16 July 2014, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102),
the Charities Act 2011, the Companies Act 2006 and UK Generally Accepted Practice as it applies from 1 January 2015.
The financial statements are prepared on a going concern basis under the historical cost convention, modified to include certain
items at fair value. The financial statements are prepared in sterling which is the functional currency of the charity and rounded to
the nearest £.
The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have
been consistently applied to all years presented unless otherwise stated.
b) Preparation of the accounts on a going concern basisThe charity is delivering a new world-class heritage attraction, Windermere Jetty, Museum of Boats, Steam and Stories. As
a result of unforeseen delays in construction work, the Museum is now due to open in Spring 2018, following completion of
construction in 2017. This is a substantial capital project, with a total cost of over £16m. Successful fundraising has covered
most of the cost, but there is a shortfall which the charity is addressing. The charity’s Capital Completion Fundraising Strategy will
build on the fundraising success achieved to date to meet the required target and bridge any funding gap. The charity’s reserves
are in line with strategy. On this basis, it is believed that the charity is a going concern.
c) Group financial statementsThe financial statements consolidate the results of the charitable company and its wholly owned subsidiary, Lakeland Arts
Enterprises Limited, together with Lakeland Arts Trust for which it acts as sole trustee, on a line by line basis. A separate
statement of financial activities, or income and expenditure account are not presented for the charitable company itself following
the exemption afforded by section 408 of the Companies Act 2006. The charity itself made an overall surplus in the year of
£5,598,794 (2015 - £1,229,102).
d) IncomeIncome is shown within 5 main categories in the Consolidated Statement of Financial Activities:
30 31
Income and endowmentsIncome from donations and grants, including capital grants, is included in incoming resources when these are receivable, except
as follows:
i. when donors specify that donations and grants given to the charitable company must be used in future accounting periods
the income is deferred until these periods; or
ii. when donors impose conditions which have to be fulfilled before the charitable company becomes entitled to use such
income, the income is deferred and not included in incoming resources until the pre-conditions for use have been met.
When donors specify that donations and grants, including capital grants, are for particular restricted purposes, which do
not amount to pre-conditions regarding entitlement, this income is included in incoming resources of restricted funds when
receivable.
Income from charitable activitiesIncome from Charitable trading activities through Abbot Hall Art Gallery, Blackwell, The Arts & Crafts House and Museum of
Lakeland Life & Industry (including admission, learning and Friends of Lakeland Arts memberships), is included in incoming
resources in the period for which it is receivable.
Income from other trading activitiesIncome from commercial trading activities, including retail and catering and commission on sale or return items through retail
outlets. This income is primarily the income of the trading subsidiary Lakeland Arts Enterprises Ltd and is recorded on a
receivable basis.
Income from investmentsIncome receivable on restricted endowment funds which itself is not restricted.
Other incomeIncome from parking, room hires and other sources, including income in anticipation of an insurance claim in 2015. The claim
relates to flooding which affected many parts of the locality in December 2015. Lakeland Arts suffered significant business
interruption to all venues during December and into 2016 and 2017 due to a reduction in the number of visitors to the area. The
catering premises at Abbot Hall flooded and were forced to close, but reopened in temporary facilities mid-year. Costs were also
incurred in moving the collections off-site whilst work is undertaken to create a suitable on-site storage facility above the flood
level. The total value of the insurance claim is unknown at this stage and only the value of costs incurred up to 31 December
2016 are included in these accounts.
Further information on other income is given under note 7 (Other Income).
Gifts in kindGifts in kind donated for resale are included at fair value, being the expected proceeds from sale less the expected costs of sale.
Where estimating the fair value is practicable upon receipt it is recognised in stock and ‘Income from other trading activities’.
Upon sale, the value of the stock is charged against ‘Income from other trading activities’ and the proceeds are recognised as
‘Income from other trading activities’. Where it is impracticable to fair value the items due to the volume of low value items they
are not recognised in the financial statements until they are sold. This income is recognised within ‘Income from other trading
activities’.
Fixed asset gifts in kind are recognised when receivable and are included at fair value. They are not deferred over the life of the
asset.
Donated heritage assets are recognised in the Heritage Asset note but are not otherwise recognised in the Statement of Financial
Activities (SOFA) in line with the policy on Heritage Assets.
32 33
e) ExpenditureExpenditure is included in the Consolidated Statement of Financial Activities on an accruals basis, inclusive of any VAT which
cannot be recovered. All costs are defined in 4 specific categories:
• Raising funds
• Fundraising trading
• Charitable activities
• Other
f) Support costs allocation
Support costs are those that assist the work of the charity but do not directly represent charitable activities and include office
costs, governance costs and administrative payroll costs. They are incurred directly in support of expenditure on the objects of
the charity and include project management and professional fees. Where support costs cannot be directly attributed to particular
headings they have been allocated to cost of raising funds and expenditure on charitable activities on a basis consistent with use
of the resources.
Fundraising costs are those incurred in seeking voluntary contributions and do not include the costs of disseminating information
in support of the charitable activities. The analysis of these costs is included in note 8.
g) Tangible fixed assetsTangible fixed assets costing more than £5,000 are capitalised and included at cost including any incidental expenses of
acquisition (with the exception of heritage assets see note 2).
Depreciation is provided on all tangible fixed assets at rates calculated to write off the cost on a straight line basis over their
expected useful economic lives as follows:
• Plant, equipment and fittings: over 4 years
Lakeland Arts owns the former Kendal Grammar School (constructed 1588) which is part of the Abbot Hall site. The building
is currently divided into 2 parts; no 9 Church Walk is a residential property acquired in 2011 and held as part of the investment
portfolio and no 11 Church Walk, also residential which has been in the ownership of Lakeland Arts for many years and is
currently used as storage. The latter portion was valued last year and included in the accounts as a freehold property. The
property is stated in the accounts at market value. Revaluation will take place every 5 years.
h) Asset in the course of constructionWindermere Jetty, Museum of Boats, Steam and StoriesAn asset under construction at the former site of the Windermere Steamboat Museum. The Museum, designed by Carmody
Groarke Architects, will open in 2018 and will house a nationally important collection of steamboats and other vessels known as
the Steamboat Museum Collection (detailed in note 13). Details of progress on the project are included in the Trustees Report.
i) StockStock consists of purchased goods for resale and is included at the lower of cost or net realisable value.
j) InvestmentsInvestments are stated at market value at the balance sheet date, except for property which is revalued on a regular basis and
includes:
• 18 Peppercorn Lane, valued at £125,000
• 9 Church Walk, valued at £230,000
Revaluation took place during 2015. The Consolidated Statement of Financial Activities includes the net gains and losses arising
on revaluations and disposals throughout the period.
32 33
2. Assets and Liabilities not Recognised in the Financial Statements
Lakeland Arts’ primary purpose is to establish a public art gallery and museum for the town of Kendal and surrounding areas,
and to advance artistic and historic interests in the area. In this connection the charitable company has a long leasehold interest,
at a peppercorn rent, in listed buildings at Abbot Hall, of which the Art Gallery itself is listed at Grade 1. The buildings house
a valuable collection of works of art and museum exhibits. The charitable company also has a freehold interest in the Grade
1 Listed Arts and Crafts House at Blackwell – a property of unique historic importance near Bowness-on-Windermere, with a
limited collection of archive material, objects and furniture.
These historic properties are inalienable heritage assets in the sense that it is a fundamental part of the charitable company’s
purpose to hold and preserve them permanently, and Lakeland Arts is effectively prohibited from disposing of them for any
other purpose, not only by the terms of its governing documents, but also by external considerations including the terms of
leases, conditions applied by funding bodies and planning consents. These properties are not assets in the normal sense of
the word, because under the irrevocable terms of their present use they have no market value. To provide a market value based
on an impermissible change of use would be misleading. The Trustees consider that the buildings are heritage assets and the
charitable company does not, therefore, represent them on the Balance Sheet.
Further information on Lakeland Arts’ heritage assets is given under notes 12 (Financial Summary of Heritage Asset Transactions)
and 13 (Further Information on the Charitable Company’s Heritage Assets), in accordance with the terms of Accounting and
Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with
the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) ‘18. Accounting for heritage assets’.
3. Funds
Funds held by the charitable company are either:
Unrestricted funds – including unrestricted general funds; these funds which can be used in accordance with the charitable
objects at the discretion of the Trustees.
Restricted funds – these are funds that can only be used for particular restricted purposes within the objects of the charitable
company. Restriction arises when specified by the donor or when funds are raised for particular purposes.
Restricted endowment funds – these are non-permanent endowment funds, the income from which contributes to the
operating expenses of Lakeland Arts. The assets of the funds are represented by Investments (see note 14).
Movements on funds during 2016 are given under note 18.
34 35
4. Voluntary Income
During 2015 the charitable company generated voluntary income through grants, donations and sponsorship. Unrestricted core
funding and other grants/donations/sponsorship received for specific purposes (restricted) are summarised below:
2016£
Unrestricted General
Funds
2016£
Restricted Endowment
Funds
2016£
Restricted Funds
2016£
Total
2015£
Unrestricted General
Funds
2015£
Restricted Endowment
Funds
2015£
Restricted Funds
2015£
Total
Arts Council England MPM 291,714 291,714 290,344 0 0 290,344
Arts Council England NPO 120,696 120,696 116,754 0 0 116,754
Arts Council Flood Grant 62,534 62,534
Lakeland Arts Support Trust 46,162 46,162 0 0 48,497 48,497
Grants & Donations - Blackwell Project (listed below) 38,760 38,760 0 0 3,149 3,149
The Estate of the late Mary Burkett 28,155 28,155 0 0 0 0
Benefactors and Patrons 25,340 25,340 36,091 0 0 36,091
The Sir John Fisher Foundation 25,000 25,000 0 0 25,000 25,000
Creative Age Project; In the Moment 24,203 24,203 0
South Lakeland District Council 20,000 20,000 20,000 0 0 20,000
Cumbria Community Foundation 20,000 20,000 0
John Ellerman Foundation 7,667 7,667 6,333 0 0 6,333
Cumbria County Council 7,500 7,500 0 0 0 0
Sanlam Private Wealth 6,000 6,000 0 0 5,500 5,500
Other donations including Gift Aid 2,658 1,100 3,758 2,310 0 3,664 5,974
D Tune 2,000 2,000 1,000 0 0 1,000
Estate of Anne Speight 2,000 2,000 0 0 0 0
Armstrong Watson 1,750 1,750 0 0 0 0
Kendal Town Council 1,000 1,000 1,000 0 0 1,000
Tullie House Museum & Art Gallery 509 509 0 0 3,333 3,333
AH Flood donations 385 385 0
The Estate of the late Eric Michael Bottomley 0 30,000 0 0 30,000
The Estate of the late Gloria Patricia Henrietta Smith 0 0 0 20,000 20,000
Plymouth City Council 0 0 0 7,500 7,500
Rathbone Investment Management 0 0 0 4,167 4,167
The National Gallery 0 0 0 4,000 4,000
Wordsworth Trust 0 0 0 3,333 3,333
The John S Cohen Foundation 0 0 0 3,000 3,000
The Granada Foundation 0 0 0 2,000 2,000
The Westmorland Arts Trust 0 0 0 2,000 2,000
Kendal College (Apprenticeships) 0 0 0 2,000 2,000
Alzheimers Society 0 0 0 1,125 1,125
Kirker Holidays 0 1,050 0 0 1,050
P F Charitable Trust 0 1,000 0 0 1,000
547,901 0 187,232 735,133 505,882 0 138,268 644,150
34 35
In addition, during 2016 the charitable company raised funds from the following sources for the development of Windermere
Jetty:
2016£
Restricted Endowment
Funds
2016£
Restricted Funds
2016£
Total
2015£
Restricted Endowment
Funds
2015£
Restricted Funds
2015£
Total
Heritage Lottery Fund 0 5,267,259 5,267,259 0 711,900 711,900
Donations to WJ Capital Project (listed below) 0 278,542 278,542 0 282,988 282,988
Regional Growth Fund 0 127,746 127,746 0 517,217 517,217
WJ Endowment 182,005 0 182,005 120,713 0 120,713
182,005 5,673,547 5,855,552 120,713 1,512,105 1,632,818
Donations to the Windermere Jetty Capital project:
2016£
Total
Wolfson Foundation 250,000
Cumbria Community Foundation 10,000
Other donations under £1,000 5,925
Interest (bank) 4,543
Turner & Townsend Fundraising 3,298
Gift Aid 2,027
J Hudson 1,500
A Case 1,250
278,542
Donations to the Blackwell Project:
2016£
Total
Heritage Lottery Fund 26,760
Estate of Ruan Peregrine James Galloway McWilliam 10,000
R Leach 2,000
38,760
36 37
5. Commercial Trading Operations – Lakeland Arts Enterprises Ltd.
Lakeland Arts Enterprises (company number 3015175) is wholly owned by the charitable company and trades to raise funds,
which are transferable to Lakeland Arts either as gift aid or repayment of loan.
The Profit and Loss Account for the year was:
£2016
£ £2015
£
Sales of goods 344,667 348,400
Conservation & reproduction services 419 1,537
Commission on sale or return items 36,707 44,985
381,793 394,922
Less cost of sales 133,641 134,603
Conservation & reproduction services 589 1,089
134,230 135,692
Gross profit on sale of goods 247,563 259,230
Business interruption insurance 14,574
Total income 262,137 259,230
Employment costs 231,541 215,674
Repairs & maintenance 3,590 7,230
Professional fees 931 928
Rent paid to Lakeland Arts 4,800 4,800
Audit fees 2,450 2,350
Publicity 1,001 684
Miscellaneous expenses 176 289
Computer software and security charges 842 1,192
245,331 233,147
Net profit 16,806 26,083
Profits transferred to Lakeland Arts (16,806) (26,083)
Retained profit for the period 0 0
36 37
The Balance Sheet at 31 December was:
£2016
£ £2015
£
Current Assets
Retail stocks 36,639 34,328
Sundry debtors and prepayments 55,104 20
Lakeland Arts current account 0 1,781
Cash at bank and in hand 13,811 10,340
105,554 46,469
Current Liabilities
Lakeland Arts current account 64,748 0
VAT 9,198 15,829
Sundry creditors 17,606 16,638
91,552 32,467
Net assets 14,002 14,002
Represented by:-
Share capital 2 2
Profit & loss account 14,000 14,000
14,002 14,002
6. Investment Income
Income received and accrued during the year came from the following sources:
£2016
£ £2015
£
Endowment Fund
UK Global Balanced 48,191 44,553
Property (588) 4,849
47,603 49,402
Unrestricted funds
UK Global Balanced 9,584 12,627
Cash 3,565 4,646
13,149 17,273
60,752 66,675
38 39
7. Other Income
2016£
UnrestrictedFunds
2016£
RestrictedFunds
2016£
Total
2015£
Total
In anticipation of insurance claim 341,818 0 341,818 9.198
Parking 13,454 0 13,454 15,374
Room hire 2,340 0 2,340 3,098
Other 4,198 0 4,198 722
Employment allowance 1,500 0 1,500 0
Commission on exhibition sales 1,442 0 1,442 2,599
Licence of images 1,260 0 1,260 804
SLDC community toilet scheme 550 0 550 550
Insurance claim 550 0 550 326
VAT annual adjustment 0 0 2,234
Roundabout Theatre 0 0 250
367,112 0 367,112 35,156
8. Resources Expended
Resources expended during the year were:
2016£
Direct Costs
2016£
Support Costs
2016£
Total
2015£
Total
Cost of generating funds
Voluntary income 27,740 25,248 52,988 49,008
Commercial trading operations 374,761 0 374,761 368,839
402,501 25,248 427,749 417,847
Charitable activities
Cost of operating Art Gallery, Museums and Arts & Crafts House
Exhibition programmes 214,545 41,384 255,929 256,112
Blackwell project 52,365 52,365 29,295
Collections & conservation of exhibits 43,385 12,280 55,665 161,458
Learning 99,436 44,215 143,651 156,864
Publicity & memberships 122,255 24,053 146,308 122,148
Historic buildings & premises costs 485,279 44,868 530,147 262,559
Visitor operations 43,165 53,661 96,826 109,114
1,060,430 220,461 1,280,891 1,097,550
Windermere Jetty Project 422,271 15,310 437,581 293,677
Total charitable activities 1,482,701 235,771 1,718,472 1,391,227
Governance costs 96,942 0 96,942 87,855
Total resources expended 1,982,143 261,019 2,243,163 1,896,929
38 39
Allocation of support costs:
2016£
Fundraising
2016£
Main Charitable
Activities
2016 £
Windermere Jetty
Project
2016 £
Total
2015 £
Total
Admin & other 12,391 109,810 0 122,201 105,820
Management 9,022 15,582 10,154 34,758 64,535
Finance 3,835 38,857 5,156 47,848 68,177
IT 26,769 26,769 7,212
HR & Legal 29,443 29,443 15,716
25,248 220,461 15,310 261,019 261,460
The direct costs of generating voluntary income comprise:
2016£
Total
2015£
Total
Salaries & employment costs 17,207 19,870
Other 40,122 8,512
57,329 28,382
Governance costs comprise:
2016£
Total
2015£
Total
Salaries & employment costs 91,898 82,466
Audit fees 5,044 5,389
96,942 87,855
9. Auditor’s Remuneration
2016£
Total
2015£
Total
Fees payable to the charity’s auditor for the audit of the charity’s annual accounts 4,228 4,424
Fees payable to the charity's auditor for the audit of the subsidiary accounts 2,450 2,350
Fees payable to the charity's auditor for the independent examination of the accounts of 964 964
Lakeland Arts Trust
Fees payable to the charity’s auditor for payroll services 3,859
Fees payable to the charity's auditor for the audit of grant funding (Regional Growth Fund) 1,743
7,273 5,057
Total fees payable to the charity’s auditor 11,501 9,481
40 41
10. Tangible Fixed Assets
(assets were transferred fully written down from LAT apart from £100bal)
Movements on the fixed assets during 2016 were:
FreeholdProperty
£
SteamboatPlant
£
Tractors
£
Furniture& Equipment
£
AH Fixtures& Fittings
£
Total
£
Asset cost, valuation or revalued amount
At 1 January 2016 190,000 173,570 14,950 14,957 50,466 443,943
Prior year adjustment 0 0 0 0 0
Adjusted balance at 1 January 2016 190,000 173,570 14,950 14,957 50,466 443,943
Additions 11,856 29,774 41,630
Disposals 0
At 31 December 2016 190,000 173,570 14,950 26,813 80,240 485,573
Accumulated depreciation
At 1 January 2016 0 (173,570) (14,950) (14,857) (2,103) (205,480)
Disposals 0
Charge for year (1,820) (18,717) (20,537)
At 31 December 2016 0 (173,570) (14,950) (16,677) (20,820) (226,016)
Net book value
At 1 January 2016 190,000 0 0 100 48,363 238,463
At 31 December 2016 190,000 0 0 10,136 59,420 259,556
11. Restricted Asset in the Course of Construction
A new development at the site of the former Windermere Steamboat Museum. The new museum, Windermere Jetty, will open
in 2017. The development is a restricted asset and is being funded by the Heritage Lottery Fund, The Regional Growth Fund,
Trusts and Foundations and individual donors.
The asset is valued at cost. Movement on asset cost during the year:
Total£
Adjusted value at 1 January 2016 1,612,432
Additions 6,378,184
Value at 31 December 2016 7,990,616
40 41
12. Financial Summary of Heritage Asset Transactions
There were no movements on the heritage assets of Lakeland Arts during the period as the permanent collections are held by
Lakeland Arts Trust, acquisitions by Lakeland Arts Trust are detailed below.
2016£
2015£
2014£
2013£
2012£
Purchases and additions -
Books 2,500 - - 180 -
Ceramics - 3,780 - - -
Ephemera - - - 60 -
Furniture - 5,000 - 9,000 -
Glass negatives - - - 500 -
Industrial history - - 19,000 - -
Paintings - - - 28,000 -
Donations
Boat models - - - 7,000 -
Books - - - - 1,000
Ceramics 2,750 - - 2,430 -
Costume 700 - - - -
Drawings - - - 16,600 -
Engraving - - - 5,600 -
Ephemera 200 - - - 12
Furniture - - - - 14,000
Industrial history - - 300 - -
Paintings 148,500 5,000 56,000 5,050 60,000
Photographic prints - - - - 5,000
Photographs 70 - - - -
Prints - - 200 400 36,000
Sculpture - - - 10,000 -
Social history 865 - - - 250
Watercolours - 15,000 6,300 24,080 -
Total additions 155,585 28,780 81,800 108,900 116,262
42 43
13. Further Information on the Charitable Company’s Heritage Assets
From 1 August 2013 the charitable company entered into a Loan and Management Agreement with the owner of the collections,
Lakeland Arts Trust, under which all responsibilities in relation to the collections including acquisition, disposal, preservation and
management, transferred to Lakeland Arts.
Lakeland Arts maintains a full inventory of all the collections held. This includes location and movements in and out of works of art
and museum objects which, from time to time, may be loaned to/from other museums and galleries.
Potential acquisitions, which may be purchased or gifted, must meet the requirements laid out in the charitable company’s
Collections Development Policy (November 2012) including relevance, use, condition and provenance. Further detail on
acquisitions is given under each section of the collection below.
Abbot Hall – Collection of Works of Art and Museum ExhibitsLakeland Arts Trust opened Abbot Hall Art Gallery, which is housed in a Grade 1 listed eighteenth century villa, in 1962. The
downstairs rooms were restored in a way sympathetic to the building’s Georgian origins, and the upstairs rooms were converted
for the display of exhibitions, including of modern and contemporary art.
Lakeland Arts’ principal areas of collecting and display broadly mirror this division:
• Eighteenth century furniture. This is a relatively small holding but it allows the eighteenth century paintings to be seen in
context in the period rooms.
• Eighteenth century British landscape and portrait paintings, with a particularly strong group of works by George Romney,
who grew up and was apprenticed locally.
• Eighteenth and nineteenth century watercolours, including an exceptional group of works by John Ruskin, JMW Turner and
a number of other key works, many of which relate to the Lake District.
• Twentieth century and contemporary British Art, perhaps the charitable company’s strongest group, with sculpture by figures
such as Jean Arp, Barbara Hepworth and Elisabeth Frink, as well as work by many of the leading painters including Samuel
Peploe, Ben and Winifred Nicholson, a strong group of St Ives work, Kurt Schwitters, Stanley Spencer, Graham Sutherland,
John Piper, Ivon Hitchens, Frank Auerbach, Paula Rego, Bridget Riley and Sean Scully. In addition, there is a strong holding
of prints by such names as Henry Moore, David Hockney and Lucien Freud, as well as others previously mentioned.
In addition to the core collections outlined above, there are subsidiary collections, some of which, such as the craft collections of
Arts and Craft furniture and ceramics and twentieth century studio pottery, are used in the displays at Blackwell.
The collections at Museum of Lakeland Life & Industry are extremely varied, consisting not just of items strongly related to
local life and industry, but also objects of more general relevance. The collection is divided broadly into categories as follows;
farming; local vernacular furniture; costume (dating from seventeenth to mid twentieth centuries); local urban and light industry
tools, machinery and artefacts; rural trades and industry implements; clock-making; photography; the Arts and Crafts Movement
in Cumbria; local authors (including Arthur Ransome); domestic objects; sport and leisure; toys, games and dolls; education
materials and ephemera.
Floods December 2015 Like many residents and businesses close to the River Kent in Kendal, Abbot Hall was affected by the flood waters in December
2015. Flood water was restricted to the ground floor and the Trust was fortunate to be able to get senior and experienced staff
to the Gallery and their immediate intervention secured the Gallery and collections. Unfortunately a section of a collections
storage area was partly affected. The Trust has moved collections to appropriate off-site storage whilst flood recovery works are
undertaken at the Gallery. The cost of the recovery works and temporary storage arrangements will be covered by insurance.
The total value of the claim is unknown at present and the claim is expected to be settled mid-2017.
Blackwell, The Arts & Crafts HouseBlackwell, which Lakeland Arts Trust opened in 2001, reflects the development of the Arts and Crafts Movement both in Britain
and internationally, with particular emphasis on its architect Mackay Hugh Baillie Scott (1865-1945), and the development of
applied art and craft disciplines up to the present day. The charitable company has very limited collections at Blackwell, and
these are defined principally by the following:
42 43
• material relating to M.H. Baillie Scott including furniture, books and published designs
• archive material relating to the history of Blackwell
• Arts and Crafts furniture and a small number of objects by Arts and Crafts designers and/or makers
Lakeland Arts’ displays at Blackwell are principally comprised of objects drawn from the collections and objects on loan from
public and private collections. There are two exceptions to this principle:
• a small number of ceramics which were donated on the opening of Blackwell to enhance its displays and ‘dress’ the period
rooms; these may be regarded as constituting a handling collection
• architectural fittings acquired to complete or enhance the fabric of the house, such as light fittings.
The Steamboat Museum CollectionThe historic boat collection at the Windermere Steamboat Museum, which was opened in 1977, demonstrates the development
of boating on Windermere from around 1780 to 1960. The collection is acknowledged to be one of the most important
collections of vessels generic to one location worldwide and to reflect important themes in technical, social and economic history.
The museum’s founder Mr G.H. Pattinson (1918-1997) collected most of the boats over a period of 30 or more years. The
Pattinson Collection was augmented and added to by the collection of the Windermere Nautical Trust and covers many aspects
of boating on Windermere including wooden steam launches, motor boats, yachts and canoes, as well as small objects and
printed ephemera. The Pattinson collection was transferred to the Lakeland Arts Trust through H.M. Government’s Acceptance
in Lieu Scheme in 2007. Lakeland Arts is now also responsible for the collections of the Windermere Nautical Trust following the
merger of Lakeland Arts Trust with Windermere Nautical Trust in 2009.
Acquisitions
Fine artThe following list is indicative of the types of areas where the acquisition of new items could be seen as a priority, but this should
not be seen as an insurmountable barrier to exploring other avenues:
a. Eighteenth century portraiture, with a particular emphasis on George Romney and his contemporaries, such as Joshua
Reynolds, Thomas Gainsborough and Joseph Wright of Derby. Particular priority should be given to acquiring a good self
portrait by Romney, as well as obtaining works that broaden further the range of works by the artist in the collection.
b. English watercolours from the late-eighteenth and early-nineteenth century, with a particular emphasis on depictions of the
Lake District by well- established names, or on high-quality works on paper by key artists from the period, such as JMW
Turner or John Constable.
c. John Ruskin. Good quality works that strengthen further the charitable company’s already impressive collection of
watercolours and drawings by the artist.
d. Twentieth century British Modernism. Works should be acquired that both enhance existing strengths (such as the St Ives
school, Neo-Romanticism, Kurt Schwitters, the School of London), and fill gaps in the collection (particularly early twentieth-
century British art).
e. Contemporary art. Priority should be given to items that fit in with the ethos of the charitable company, and particularly Abbot
Hall, or that relate to existing areas of the collection. The charitable company should also consider acquiring examples of
work by living artists who exhibit at its venues, thereby retaining a legacy from the show, as well as generating links between
the exhibition programme and the permanent collection.
Decorative Art and Furniture The priority is to acquire works that relate to Blackwell, MH Baillie Scott, the Arts and Crafts Movement, its earlier influences and
legacy in relation to contemporary craft practice.
Collecting principally covers the period from around 1840 to the present. The charitable company could acquire a limited number
of earlier pieces of furniture for the period rooms at Abbot Hall to raise the quality of the collections shown.
44 45
Social and Industrial History A priority is to review the existing collections to establish the significance of these and identify where the strengths are and how
use of the collections can be developed in the future. In the meantime, acquisitions will be limited to items which the charitable
company identifies as of sufficient significance and importance to warrant adding to the existing collection.
Steamboats and Historic Vessels Lakeland Arts will acquire a limited amount of material to build on and enhance the existing collection and to provide new and
additional ways of interpreting the history and technology of boating on Windermere. The priorities will relate to the themes
explored in the new museum; Windermere Jetty, Museum of Boats, Steam and Stories.
New acquisitions may be made to fill gaps within the existing collection or in order to enhance the interpretation and
understanding of an existing object within the collection. Potential acquisitions must meet the four basic criteria of relevance, use,
condition and provenance:
Relevance – Abbot Hall Art Gallery aims to inspire, challenge and stimulate people through direct engagement with the work
of artists. Blackwell is concerned with engaging people in a dialogue about M.H. Baillie Scott, the Arts and Crafts Movement
and its history and legacy, as well as contemporary craft practice. The Windermere Jetty, Museum of Boats, Steam and Stories
is concerned with engaging people in a dialogue about the past, present and future of boating on Windermere. Museum of
Lakeland Life & Industry aims to engage people with social and industrial history through collections that relate to the life and
industry of those who lived and worked in the locality and the Lake District. New acquisitions at all sites will be assessed in terms
of their capacity to act as a focus for interpretation, discussion, debate or research with particular audiences.
Use – The object must have the capacity now or in the future to tell a story in one of the media used by Abbot Hall Art Gallery,
Blackwell, The Arts & Crafts House, Windermere Jetty and Museum of Lakeland Life & Industry including, but not limited to,
exhibitions, web products, broadcasts and popular and scholarly publications. To facilitate this as much associated information
as possible should be collected at the same time as the object.
Condition – The object must be in a reasonable state of completeness and in good condition relative to its rarity or historical
importance. It must not require significant resources for conservation and/or storage, nor must it present any unacceptable
hazards, either in storage or display. Items in poor condition will only be considered if they are unique or are of sufficient
significance to warrant acquisition.
Provenance – The object must come with good title, and be properly documented regarding its provenance and authenticity. It
should be free from any onerous restoration requirements or special conditions, and ideally, come with its intellectual property
rights (for example copyright).
DisposalBy definition, the Lakeland Arts Trust has a long-term purpose and holds collections in trust for society in relation to its stated
objectives. The Trustees therefore accept the principle that sound curatorial reasons for disposal must be established before
consideration is given to the disposal of any items in Lakeland Arts collections. The disposal policy is detailed in Lakeland Arts’
Collections Development Policy (November 2012).
Disposal preliminariesa. The governing body will ensure that the disposal process is carried out openly and with transparency.
b. By definition, Lakeland Arts Trust has a long-term purpose and holds collections in trust for society in relation to its
stated objectives. The governing body therefore accepts the principle that sound curatorial reasons for disposal must be
established before consideration is given to the disposal of any items in the museum’s collection.
c. Lakeland Arts will confirm that it is legally free to dispose of an item and agreements on disposal made with donors will be
taken into account.
d. When disposal of a museum object is being considered, Lakeland Arts will establish if it was acquired with the aid of an
external funding organisation. In such cases, any conditions attached to the original grant will be followed. This may include
repayment of the original grant and a proportion of the proceeds if the item is disposed of by sale.
Motivation for disposal and method of disposal e. When disposal is motivated by curatorial reasons the procedures outlined in the Collections Policy will be followed and the
44 45
method of disposal may be by gift, sale or exchange.
f. The charitable company will not undertake disposal motivated principally by financial reasons
The disposal decision-making process g. Whether the disposal is motivated either by curatorial or financial reasons, the decision to dispose of material from the
collections will be taken by the governing body only after full consideration of the reasons for disposal. Other factors
including the public benefit, the implications for the charitable company’s collections and collections held by museums and
other organisations collecting the same material or in related fields will be considered. External expert advice will be obtained
and the views of stakeholders such as donors, researchers, local and source communities and others served by the
charitable company will also be sought.
Responsibility for disposal decision-making h. A decision to dispose of a specimen or object, whether by gift, exchange, sale or destruction (in the case of an item too
badly damaged or deteriorated to be of any use for the purposes of the collections or for reasons of health and safety), will
be the responsibility of the governing body of Lakeland Arts acting on the advice of professional curatorial staff, if any, and
not of the curator of the collection acting alone.
Use of proceeds of sale i. Any monies received by Lakeland Arts governing body from the disposal of items will be applied for the benefit of the
collections. This normally means the purchase of further acquisitions. In exceptional cases, improvements relating to the
care of collections in order to meet or exceed Accreditation requirements relating to the risk of damage to and deterioration
of the collections may be justifiable. Any monies received in compensation for the damage, loss or destruction of items will
be applied in the same way. Advice on those cases where the monies are intended to be used for the care of collections will
be sought from the Arts Council England.
j. The proceeds of a sale will be ring-fenced so it can be demonstrated that they are spent in a manner compatible with the
requirements of the Accreditation standard.
Disposal by gift or sale k. Once a decision to dispose of material in the collection has been taken, priority will be given to retaining it within the public
domain, unless it is to be destroyed. It will therefore be offered in the first instance, by gift or sale, directly to other Accredited
Museums likely to be interested in its acquisition.
l. If the material is not acquired by any Accredited Museums to which it was offered directly as a gift or for sale, then the
museum community at large will be advised of the intention to dispose of the material, normally through an announcement in
the Museums Association’s Museums Journal, and in other specialist journals where appropriate.
m. The announcement relating to gift or sale will indicate the number and nature of specimens or objects involved, and the
basis on which the material will be transferred to another institution. Preference will be given to expressions of interest from
other Accredited Museums. A period of at least two months will be allowed for an interest in acquiring the material to be
expressed. At the end of this period, if no expressions of interest have been received, the charitable company may consider
disposing of the material to other interested individuals and organisations giving priority to organisations in the public domain.
Disposal by exchange n. The nature of disposal by exchange means that Lakeland Arts will not necessarily be in a position to exchange the material
with another Accredited museum. Lakeland Arts will therefore ensure that issues relating to accountability and impartiality are
carefully considered to avoid undue influence on its decision-making process.
o. In cases where Lakeland Arts wishes for sound curatorial reasons to exchange material directly with Accredited or
unaccredited museums, with other organisations or with individuals, the procedures in paragraphs 13a-13d and 13g-13h of
the Collections Policy will be followed as will the procedures in paragraphs 13p-13s.
p. If the exchange is proposed to be made with a specific Accredited museum, other Accredited museums which collect in the
same or related areas will be directly notified of the proposal and their comments will be requested.
q. If the exchange is proposed with a non-accredited museum, with another type of organisation or with an individual, Lakeland
Arts will make an announcement in the Museums Journal and in other specialist journals where appropriate.
r. Both the notification and announcement must provide information on the number and nature of the specimens or objects
46 47
involved both in Lakeland Arts collection and those intended to be acquired in exchange. A period of at least two months
must be allowed for comments to be received. At the end of this period, Lakeland Arts must consider the comments before
a final decision on the exchange is made.
Documenting disposalsFull records will be kept of all decisions on disposals and the items involved and proper arrangements made for the preservation
and/or transfer, as appropriate, of the documentation relating to the items concerned, including photographic records where
practicable in accordance with SPECTRUM Procedure on de-accession and disposal.
Preservation and ManagementLakeland Arts Trust was first awarded MLA Accreditation status in 2009 and following the award Abbot Hall Art Gallery,
Blackwell, The Arts & Crafts House and Museum of Lakeland Life & Industry have entered into a planned timetable of collections
preservation, care and management. MLA Accreditation status was reviewed during 2013 and successfully maintained by
Lakeland Arts. Windermere Jetty is currently applying for Working towards Accreditation status, with a view to applying for
Designation once full Accreditation is achieved.
These plans are regularly revisited by the curatorial team led by the Director of Exhibitions & Collections; they are also monitored
by the Arts Council England Accreditation Board. The charitable company abides by the Museums Association’s Code of Ethics.
In 2010 some of the principal objects in the collection were valued by Sotheby’s. The valuation was carried out specifically to
inform a risk management exercise which resulted in a review of the insured values and risks for the collection. For the purpose
of reinstatement the value of all of the charitable company’s Heritage assets, including buildings and land, is estimated as
£25.4m.
14. Investments
Endowment Fund
£
Blackwell Endowment
Fund£
General Fund
£
Total
£
Investment Portfolio
Market Value as at 1 January 2016 662,846 1,015,228 363,550 2,041,624
Additions 0
Disposal proceeds 0
Movement on cash income account 0
Net investment gains/(losses) 21,097 69,721 24,135 114,953
Market Value as at 31 December 2016 683,943 1,084,949 387,685 2,156,577
Cash held as part of portfolio 0 0 0 0
Value of portfolio as at 31 December 2016 683,943 1,084,949 387,685 2,156,577
Historical cost as at 31 December 2016 531,092 870,470 316,964 1,718,526
Group Charity
2016£
2015£
2016£
2015£
UK Listed investments are represented by:
Endowment Fund
UK Global Balanced 1,413,892 1,323,074 328,943 307,846
Property 355,000 355,000 355,000 355,000
Cash 0 0 0 0
General Fund
UK Global Balanced 387,685 363,550 387,685 363,550
Shares in trading subsidiary 2 2
2,156,577 2,041,624 1,071,630 1,026,398
46 47
The Blackwell Endowment Fund is held by Lakeland Arts Trust
Investments held by Lakeland Arts also include an additional £2 investment in the subsidiary company, Lakeland Arts Enterprises
Ltd at cost (see note 5).
15. Debtors
Consolidated2016
£
Consolidated2015
£
Charity2016
£
Charity2015
£
Trade debtors 679 15,627 679 15,156
VAT 160,425 21,217 169,623 37,046
Prepayments 258,891 47,074 204,768 46,552
Grant income due 651,157 650,720 651,208 650,720
Lakeland Arts Support Trust 10,775 13,086 10,775 13,086
Lakeland Arts Trust 8,055
Lakeland Arts Enterprises 64,698
1,081,927 747,724 1,109,806 762,560
16. Creditors
Consolidated2016
£
Consolidated2015
£
Charity2016
£
Charity2015
£
Trade creditors 1,001,157 203,103 987,505 188,425
Other taxes and social security 23,047 17,663 23,047 17,663
Lakeland Arts Enterprises Ltd 1,780
Lakeland Arts Trust 0 0 0 198
Accruals 58,476 42,279 55,246 39,159
Other creditors 5,870 9,062 5,870 9,051
1,088,550 272,107 1,071,668 256,256
17. Pension and other schemes
Defined benefit pension schemesCumbria Local Government Pension SchemeLakeland Arts Trust was a member of the Cumbria Local Government Pension Scheme before the operations were transferred to
Lakeland Arts on 1 August 2013. The Scheme is not currently active although the charity is working with the Council to prevent
crystallisation by bringing an employee into the Scheme and paying contributions on a normal basis. The current payments into
the scheme relate to past deficit contributions.
The date of the most recent comprehensive actuarial valuation was 31 March 2014. No actuarial valuation was available for these
accounts due to the fact that the Scheme is not fully active. Where the scheme is in deficit and where the charity has agreed to
a funding deficit funding arrangement, the charity has to recognise a liability for this obligation. The amount recognised is the net
present value of the deficit reduction contributions payable under the agreement that relates to the deficit. The present value is
calculated using the discount rate of 1.45% (2015 - 2.48%) in these accounts. The unwinding of the discount rate is recognised
as a finance cost in other expenses. The discount rate used is the equivalent single discount rates which, when used to discount
the future recovery plan contributions due, would give the same results as using a full AA corporate bond yield curve to discount
the same recovery plan contributions. The amount payable is based on the latest information available which is £31,900pa.
48 49
Reconciliation of scheme assets and liabilities to assets and liabilities recognisedThe amounts recognised in the statement of financial position are as follows:
2016£
2015£
Present value of defined benefit obligation 477,585 466,754
Defined benefit obligationChanges in the defined benefit obligation are as follows:
2016£
Present value at start of year 466,754
Past service cost (28,617)
Actuarial gains and losses 39,448
Present value at end of year 477,585
18. Reconciliation of Movement in Consolidated Funds
Opening funds at 1
January 2016
£
Income
£
Expenditure
£
Transfers/ Investment
Gains/(Losses)
£
Closing funds at 31 December
2016£
Unrestricted funds:
General funds 631,486 1,747,967 (1,828,982) 24,135 574,606
Pension scheme deficit (466,754) 28,617 (39,448) (477,585)
Total unrestricted funds 164,732 1,747,967 (1,800,365) (15,313) 97,021
Restricted funds:
Windermere Jetty Asset in the course of construction 1,612,432 5,673,547 0 704,636 7,990,615
Windermere Jetty Project capital funds 2,195,475 0 (305,056) (704,636) 1,185,783
Development funds 500 0 0 0 500
Boat conservation funds 2,000 0 0 0 2,000
Blackwell funds 20,094 73,853 (87,458) 0 6,489
Learning funds 2,098 24,203 (12,881) 0 13,420
Aurelius Trust (Blackwell Library) 1,216 0 (53) 0 1,163
Exhibitions & Collections funds 4,000 7,750 (11,750) 0 0
Abbot Hall funds 145 116,019 (25,600) 0 90,564
Total Restricted funds 3,837,960 5,895,372 (442,798) 0 9,290,535
Endowment funds:
General Endowment 662,848 0 0 21,097 683,945
Blackwell Endowment 1,015,228 69,721 1,084,949
Windermere Jetty Endowment 127,800 182,005 0 0 309,805
Total Endowment funds 1,805,876 182,005 0 90,818 2,078,699
Total 5,808,569 7,825,344 (2,243,163) 75,505 11,466,255
48 49
19. Analysis of Group Net Assets Between Funds
Unrestricted£
Restricted£
Endowment£
Total£
Tangible fixed assets 259,556 0 0 259,556
Asset in the course of construction 0 7,990,616 0 7,990,616
Investments 77,878 0 2,078,699 2,156,577
Stock 36,639 36,639
Debtors 431,207 650,720 0 1,081,927
Cash at bank and in hand 857,876 649,199 1,507,075
Current liabilities (1,088,550) 0 0 (1,088,550)
Pension deficit (477,585) (477,585)
97,021 9,290,535 2,078,699 11,466,255
20. Trustees’ and Key Management Personnel Remuneration and Expenses
The trustees neither received nor waived any emoluments during the year (2015 £0).
The total amount of employee benefits received by key management personnel is £177,562 (2015 £202,453). The charity
considers its key management personnel comprise Chief Executive, Chief Operating Officer, Director of Finance & Resources,
and Director or Programming.
There were 0 trustees (2015 0 trustees) accruing pension arrangements.
Out of pocket expenses were reimbursed to trustees as follows:
2016£
2015£
Travel 690 1,392
Included in above are £0 (2014 £0) which have been paid directly to third parties.
21. Employees
The employees of Lakeland Arts during 2016, expressed as average annual full time equivalent numbers, consisted of:
Abbot Hall Blackwell Windermere Jetty
Total
Management, curatorial, marketing and learning 9.3 7.3 5.6
Administration 1.3 5.0 0.0
Desk/shop staff 3.4 3.4 0.0
Coffee House & Tea Room 3.7 6.8 0.0
Other 0.8 0.8 0.6
Total 18.5 23.2 6.1 47.8
22. Staff Costs
2016£
2015£
Wages and salaries 968,391 900,635
Social security costs 71,690 64,087
Pension Costs 4,857
1,044,938 964,722
50 51
The number of full time/regular employees whose pay and taxable benefits exceeded £60,000 fell within the following bands:
2016 2015
£60,000 - £69,999 1 1
23. Contingent Liability
The charity is currently involved in a substantial construction project which is in delay. The parties to the contract and their
advisors are considering the effects of that delay. No firm conclusions are capable of being made at this stage.
24. Capital Commitments
Lakeland Arts is committed to the development of a new museum, Windermere Jetty, which is due to open to the public in
2018. The charity has entered into a construction contract with Thomas Armstrong for £9.7m. The total project cost including
construction, related professional fees and conservation and activity programmes is £18.5m. Funding has been secured to cover
most of the cost and the shortfall will be raised in the coming year.
25. Taxation
The income which Lakeland Arts receives from admission charges to the public to view its collections arises, in the opinion of the
Trustees, in conjunction with and for the purposes of Lakeland Arts and is applied solely for the purposes of Lakeland Arts. Profits
of Lakeland Arts Enterprises Ltd on its trading activities are transferred to Lakeland Arts under gift aid. It is considered that no
liability to taxation other than Value Added Tax arises.
26. Related Party Transactions
Martin Ainscough, Chair of Trustees, is a Director and Shareholder of Miller Howe Ltd. During 2016 Lakeland Arts paid Miller
Howe £511 mainly for booked accommodation for guests in relation to exhibition programming.
Anthony Collinson, Trustee, is a Director of JWK Solicitors. During 2016 Lakeland Arts paid £14,137 to JWK Solicitors for legal
advice. At 31 December Lakeland Arts owed JWK Solicitors £4,413.
23. Prior Year Adjustment
Lakeland Arts Trust was not previously consolidated in the group accounts. The new Charities SORP FRS102 requires charities
to be consolidated where they are controlled by another entity, in this case by Lakeland Arts as sole trustee, and so the accounts
have been amended to reflect this. The net effect was an uplift of £607,364 to total funds (2015 - £548,474). The full accounts
of Lakeland Arts Trust (charity number 526980) are available to view at the Charity Commission.
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Front and Back Cover: Paul Jenkins, Detail: Phenomena Gemini Encounter East 2001, acrylic on canvas, 185.9 x 255 cm© 2005 Estate of Paul Jenkins. Courtesy Redfern Gallery, London
Contents Page: Alasdair Gray, Marion Oag and the Birth of the Northern Venus, 1977. Arts Council Collection, Southbank Centre, London © the artist (and Sorcha Dallas, Glasgow)
Page 5: Rembrandt, Self Portrait at the Age of 63 (detail). © The National Gallery, London
Page 7: Canaletto, The Grand Walk Vauxhall Gardens. © Compton Verney, photo by Prudence Cuming Associates Ltd.
Page 7: Sculpture from the Laura Ford: Seen and Unseen exhibition at Abbot Hall Art Gallery. © Florence Acland Photography
Page 8: Winifred Nicholson, Daffodils and Pewter Jug, 1953 (detail). © Trustees of Winifred Nicholson
Page 8: Chris Keenan, Anemone Tea Set (after William de Morgan), 2016. © Lakeland Arts
Page 9: Laura Ford, Weeping Girl © Laura Ford. Photograph © Tony West Photography
Page 9: Photograph by Joseph Hardman,
Page 10: Nicholas Volley, Tea Time. 2005 (detail). © Lakeland Arts Page 11: Ben Nicholson, (1932) crowned head – the queen, 1932
Page 12: In The Moment workshop in 2016. © Florence Acland Photography
Page 13: Volunteer helping at Art Camp 2016 at Abbot Hall Art Gallery. © Florence Acland Photography
Page 14: Aerial view of Winderemere Jetty in May 2017. Photo by Skylark Photography. © Lakeland Arts
Page 18: Henry Moore, Seated Figures (Studies for Sculpture), 1957. © Lakeland Arts
Page 21: Ceramic pots from the Craft Shop at Blackwell, The Arts & Crafts House. Photo by Mark Harrison. © Lakeland Arts
Page 23: Knox rug at Blackwell, The Arts & Crafts House.
Page 24: Bracelet from the Craft Shop at Blackwell, The Arts & Crafts House. Photo by Mark Harrison. © Lakeland Arts
Images
Designed and published by Lakeland Arts
© Lakeland Arts, Abbot Hall, Kendal, Cumbria LA9 5AL
Registered charity no. 1153001lakelandarts.org.uk
This document is available in PDF format from our website, or on request from info@lakelandarts.org.uk or telephone 01539 722464.