Arts Council of Northern Ireland Lottery Distribution Account

Transcription

1 Arts Coucil of Norther Irelad Lottery Distributio Accout HC

2 Arts Coucil of Norther Irelad Lottery Distributio Accout Preseted to Parliamet pursuat to Sectio 35(5) of the Natioal Lottery etc. Act 1993 (as ameded by the Natioal Lottery Act 1998) Ordered by the House of Commos to be prited o 20 December December 2017 HC

3 The Natioal Audit Office scrutiises public spedig for Parliamet ad is idepedet of govermet. The Comptroller ad Auditor Geeral (C&AG), Sir Amyas Morse KCB, is a Officer of the House of Commos ad leads the NAO. The C&AG certifies the accouts of all govermet departmets ad may other public sector bodies. He has statutory authority to examie ad report to Parliamet o whether departmets ad the bodies they fud have used their resources efficietly, effectively, ad with ecoomy. Our studies evaluate the value for moey of public spedig, atioally ad locally. Our recommedatios ad reports o good practice help govermet improve public services, ad our work led to audited savigs of 734 millio i Crow copyright 2017 This publicatio is licesed uder the terms of the Ope Govermet Licece v3.0 except where otherwise stated. To view this licece, visit atioalarchives.gov.uk/doc/ope-govermet-licece/versio/3 or write to the Iformatio Policy Team, The Natioal Archives, Kew, Lodo TW9 4DU, or psi@atioalarchives.gsi.gov.uk. Where we have idetified ay third party copyright iformatio you will eed to obtai permissio from the copyright holders cocered. This publicatio is available at ISBN: Prited o paper cotaiig 75% recycled fibre cotet miimum Prited i the UK o behalf of the Cotroller of Her Majesty s Statioery Office

4 Arts Coucil of Norther Irelad Lottery Distributio Accout Cotets Page Performace Report 2 Overview 2 Chairma s foreword 2 Chief Executives Itroductio 3 Purpose of the Activities of the Arts Coucil of Norther Irelad 5 Performace Aalysis 10 Accoutability Report 12 Corporate Goverace Report 12 Directors Report 12 Statemet of the Coucil s ad Accoutig Officer s resposibilities 15 Goverace Statemet 16 Remueratio ad Staff Report 27 Remueratio report 27 Staff Report 32 Assembly Accoutability ad Audit Report 36 Assembly Accoutability Disclosure Notes 36 Certificate ad Report of the Comptroller ad Auditor Geeral 37 Fiacial Statemets Statemet of Comprehesive Net Expediture 39 Statemet of Fiacial Positio 40 Statemet of Cash Flows 41 Statemet of Chages i Taxpayers Equity 42 Notes to the Accouts 43 Appedicies Appedix A Lottery Policy Directios 54 Appedix B Natioal Lottery Developmet Fud (NLDF) Balace - Policy Statemet 56 1

5 Arts Coucil of Norther Irelad Lottery Distributio Accout Performace Report This Performace Report focuses o matters relevat to all users of Fiacial Statemets. Although it is desiged to be a self-stadig documet, much of the iformatio cotaied i it is simply a summary of iformatio provided i other documets ad is therefore cross-refereced as appropriate. The Performace Report has two sectios: a Overview ad a Performace Aalysis. Overview The purpose of the Overview sectio of the Performace Report is to give the user a brief summary that provides the lay user with sufficiet iformatio to uderstad the orgaisatio, its purposes, the key risks to the achievemet of its objectives ad how it has performed durig the year. It cosists of the Chair s Foreword, Chief Executive s Itroductio ad the Purposes of the Arts Coucil of Norther Irelad. Chairma s Foreword The Arts Coucil is the statutory body which, sice the iceptio of the Natioal Lottery i 1994, has bee resposible for the admiistratio ad distributio of Lottery fuds to the arts i Norther Irelad. Fudig decisios are guided by the directios cotaied i the Natioal Lottery Act ad by the strategic priorities published i the Coucil s curret five year pla for the arts, Ambitios for the Arts, The Board of the Coucil is advised o Lottery matters by the Grats Committee. I additio to its role i advisig o Exchequer fudig programmes ad policies, the Committee also advises the Board o policy issues relatig to the Coucil s Natioal Lottery Distributio activities. It also moitors all matters relatig to the admiistratio of the Coucil s Natioal Lottery Distributio activities, ad takes decisios o grat aid withi delegated fiacial limits set by the Board. The Committee presetly has full delegated authority to award grats to applicats where the award is withi the delegated bad of 25,000-50,000. Natioal Lottery fudig is itegral to the delivery of the Arts Coucil s strategy for developig the arts, providig a major resource to help us meet our objectives across a wide rage of areas. The Arts Coucil s capacity to support the widest rage of creative activity throughout the regio is depedet upo a combiatio of Exchequer ad Natioal Lottery resources. Joh Edmud 1 November 2017 Chairma, Arts Coucil of Norther Irelad 2

6 Arts Coucil of Norther Irelad Lottery Distributio Accout Chief Executive s Itroductio A umber of otable achievemets i resulted from the Arts Coucil s emphases o stregtheig the social fuctio of the arts ad o parterig with agecies workig i various areas of commuity regeeratio ad social developmet. The Arts Coucil respoded to the recofiguratio of Norther Irelad s local authorities ad the ew powers coferred upo them with the itroductio of a Local Govermet Challege Fud. The fud, which was officially lauched i September by the Miister for Commuities, offers match fudig to ecourage district coucils to icrease their commitmet to the arts. This sigificat iitiative, worth up-to 150,000 of Natioal Lottery fuds to each district coucil, aims to icrease access to the arts ad help embed arts policy ad programmig i coucils Commuity Plas. Respose to the fud has bee very positive. The fud has already cotributed this year to the opeig ad ogoig programmig costs of the Seamus Heaey HomePlace veue i the Mid Ulster District Coucil area. I Jauary, the Arts Coucil lauched a ew, three-year, 600,000 fudig programme desiged to improve the health ad wellbeig of youg people through the arts. The Articulate; Youg People & Wellbeig Arts Programme is a joit ivestmet by the Arts Coucil ad the Public Health Agecy. It works i partership with commuity orgaisatios to deliver custom-made arts projects to groups of youg people across Norther Irelad. Drama, music, visual arts ad literature are used as tools to egage youg people ad ecourage self-expressio ad the developmet of self-cofidece ad self-motivatio. At the opposite ed of life s spectrum, the 2016 Arts & Age Festival focussed o The Art of Wellbeig for older citizes. Throughout the moth-log festival i April, orgaisatios supported by the Arts & Older People s Programme showcased the beefits - health, social ad creative - for older people participatig i professioallystructured arts activities. The programme is a multi-agecy partership betwee the Arts Coucil, The Barig Foudatio ad the Public Health Agecy. The Festival culmiated i a coferece, hosted by the Arts Coucil, brigig together policy makers, health agecies, arts orgaisatios ad those workig i the field of creativity ad older people. The 900,000 Creative ad Cultural Belfast Programme, produced i partership betwee the Arts Coucil ad Belfast City Coucil, came to completio with the last of its seve scheduled ladmark arts evets. Belfast witessed its largest ever Shakespearea productio with Terra Nova Productios Belfast Tempest, as part of global evets markig the 400th aiversary of Shakespeare s death. Beat Carival trasformed the Ormeau Park ito a gigatic Carival Village; ad a eleve-metre tall sculpture, Origi, was erected at the mouth of the River Farset o Belfast s Cave Hill, as part of a cross-commuity partership betwee the Culturla ad the Spectrum Cetre. Each of the Creative ad Cultural Belfast evets was desiged to egage commuities ad ecourage the participatio of hudreds of local voluteers. They created uprecedeted opportuities for people throughout the city who would traditioally have bee less likely to have accessed or participated i culture ad arts due to social, ecoomic or other barriers. Natioal Lottery fuds distributed by the Arts Coucil cotiued to support idividual artists through the Support for Idividual Artists Programme. Sevetee emergig artists received additioal support through the Artist Career Ehacemet Scheme, which provided bursaries of 5,000 plus opportuities to parter with professioal orgaisatios. Four artists, composer Ia Wilso, dacer Ooa Doherty, musicia David Lyttle ad writer Ae Devli received the highest hoour aually bestowed by the Arts Coucil whe they were preseted with Major Idividual Awards of 15,000. These awards make it possible for these artists to take time out to dedicate to their creative work ad to produce ambitious work that will cotribute to the developmet of their professioal careers. Natioal Lottery fuds cotiued also to support the programmig costs of the Arts Coucil s Regularly Fuded Orgaisatios. I respose to the challeges faced by may orgaisatios followig a decade of disivestmet by the Norther Irelad Executive, the Arts Coucil took steps this year to icrease the resiliece of a umber of core orgaisatios with the itroductio of a Sustaiability Fud through our Natioal Lottery Resource. That fud has helped orgaisatios such as Greater Shatallow Commuity Arts, the Lyric Theatre ad Audieces Norther Irelad to take appropriate actio to implemet permaet, sigificat chage measures, icludig collaboratio, mergers, ew parterships ad the developmet of ew busiess models. 3

7 Arts Coucil of Norther Irelad Lottery Distributio Accout With ivestmet i the arts by the Norther Irelad Executive cotiuig to fall short of meetig the eeds of the sector, Natioal Lottery fudig performs a critical role i sustaiig the health of Norther Irelad s arts. It esures that developmet i the arts cotiues ad that it remais possible to maitai the circumstaces for more citizes to experiece the beefits of accessig ad participatig i the arts. Roisí McDoough 1 November 2017 Chief Executive 4

8 Arts Coucil of Norther Irelad Lottery Distributio Accout Purpose of Activities of the Arts Coucil of Norther Irelad Backgroud Iformatio o the Arts Coucil of Norther Irelad The Arts Coucil of Norther Irelad (Arts Coucil) is the statutory body through which public fudig for the arts i Norther Irelad is chaelled. It was established by the Arts Coucil (Norther Irelad) Order 1995 ad came ito existece o 1 September The Arts Coucil took over the assets ad liabilities of the Arts Coucil of Norther Irelad Limited which was a compay limited by guaratee established i 1994 as a iterim body betwee the previous Arts Coucil (established i 1943) ad the ew statutory body. The origis of the Arts Coucil date from 1943 whe the Coucil for the Ecouragemet of Music ad the Arts i Norther Irelad was set up. Iitially fuds were provided by the Pilgrim Trust ad matched by the Miistry of Educatio for Norther Irelad. At the preset time the Arts Coucil is fuded via grat-i-aid by the Departmet for Commuities. The affairs of the Arts Coucil are maaged by a Board cosistig of the members listed i the Directors Report. The Chief Executive, Roisí McDoough, is the Pricipal Executive Officer of the Arts Coucil ad is supported by a professioal staff resposible for subject ad fuctioal areas of the Arts Coucil s programme. Statutory Backgroud The Natioal Lottery was established by the Natioal Lottery etc. Act 1993, as ameded by the 1998 Act, to raise moey for good causes through the sale of lottery tickets. The Natioal Lottery Distributio Fud (NLDF) was established i 1994 to receive ad hold moies geerated by the Natioal Lottery for good causes. Sectio 21 of the Natioal Lottery etc. Act 1993 places the NLDF uder the cotrol ad maagemet of the Secretary of State for Culture, Media ad Sport. The Arts Coucil of Norther Irelad is charged uder the Act with resposibility for distributig Lottery proceeds allocated to the arts i Norther Irelad. Lottery proceeds are also distributed through other distributig bodies to Sport, Natioal Heritage, Charities, ad to the Arts i Eglad, Scotlad ad Wales. From Lottery proceeds were also distributed to the New Opportuities Fud (NOF) ad to the Natioal Edowmet for Sciece, Techology ad the Arts (NESTA). The Departmet for Culture Media ad Sport (DCMS) maages the flow of fuds betwee Camelot (the operator of the Natioal Lottery) ad the distributig bodies. DCMS seek aual assuraces from the Accoutig Officer of each lottery distributig body that they have i place adequate systems of iteral cotrol ad have complied with the curret Fiacial Directios. O the 3 July 2017, the ame of the departmet chaged to the Departmet for Digital, Culture, Media ad Sport to reflect its broader rage of resposibilities. The short ame remais DCMS. Throughout this report we have cotiued to use the ame that was i use durig the year uder review. Pricipal fuctios related to Natioal Lottery Distributio Activities The Arts Coucil is resposible for the admiistratio ad distributio of fuds raised by the Natioal Lottery. The Board made its first awards to applicats for Lottery fudig i The pricipal fuctio is to fud applicatios for a broad rage of capital ad reveue projects i the Arts which will make a importat ad lastig differece to the quality of life of the people i Norther Irelad. 5

9 Arts Coucil of Norther Irelad Lottery Distributio Accout Natioal Lottery Distributio Activities Durig the Coucil cotiued to deliver a rage of fudig programmes: Aual Fudig; Arts & Older People; Music Tourig; Small Grats; Itercultural; Project Fudig; Buildig Peace through the Arts - Re-Imagig Commuities; ad Support for Idividual Artists: Geeral Art Awards, Major Idividual Awards ad the Artist s Career Ehacemet Scheme. I additio, the Coucil lauched two ew schemes: Local Govermet Challege Fud which offers match fudig up to 150,000 to the 10 local authorities outside Belfast. Local authorities must demostrate additioal arts spedig i their areas aimed at uderpiig ad stregtheig arts provisio i a commuity settig ad stimulatig log-term chage; ad Articulate A 3-year programme joitly fuded with the Public Health Agecy which aims to improve the metal health ad wellbeig of youg people by egagemet i high quality arts. Negotiatios bega with Belfast City Coucil to desig a programme which would address sustaiability issues withi the arts sector. The Coucil s curret 3-year delegatio agreemet with NI Scree eded o 31 March Discussios o a ew delegatio agreemet bega durig the year. Future Developmets i Natioal Lottery Distributio Activities The Coucil will cotiue to roll out the Local Govermet Challege Fud ad hopes to lauch its ew sustaiability-based programme with Belfast City Coucil i 2017/18. The Coucil will eter ito a ew delegatio with NI Scree to deliver beefits to the film idustry i Norther Irelad. Commet o Natioal Lottery Distributio Fud (NLDF) Balace Policy As at the 31 March 2017, Arts Coucil Lottery Accout balaces at NLDF totalled 3.3 millio (31 March 2016: 4.7 millio), a dillioecrease of 1.4 millio o the prior year. The NLDF balace is classified as ivestmets i the Statemet of Fiacial Positio. This is i lie with DCMS accoutig policy. NLDF ivestmets are therefore held at the lower of carryig amout ad fair value less costs to sell, with ay urealised profit or loss recogised through reserves. Curret cotracted grats payable plus trade ad other payables total 2.7millio. The Coucil cosiders that it has sufficiet liquid resources withi the NLDF ad cash balaces of 3.8m as well as forecasted NLDF icome to cover all curret cotracted commitmets. The forecasted NLDF icome is based o quarterly projectios received from DCMS. Curret projectios are to I 2017 the Arts Coucil revised its NLDF policy (Appedix B) to improve compliace with the requiremets of Natioal Lottery Guidace Note 1/03. The objective of this policy is for the Arts Coucil to maitai its NLDF balace at a prudet level based o a realistic assessmet of its eeds ad the availability of fudig from NLDF. The Arts Coucil s NLDF balace will be set at a level that will maximise its ability to achieve its strategic objectives, 6

10 Arts Coucil of Norther Irelad Lottery Distributio Accout that will esure that preset commitmets are ot compromised ad that will ot impair or costrai its ability to eter ito future commitmets. Although icome is ot etirely withi its cotrol, the Arts Coucil has arrived at the proposed target NLDF balace, by makig realistic assessmets of forecasts for levels of icome i future years (based o NLDF forecasts), ad the Arts Coucil s assessmet of: Both the upside ad dowside risks to those forecasts; Its forecasts for expediture i future years o the basis of commitmets made ad plaed activity; Its aalysis of ay future eeds, opportuities, cotigecies or risks which are ot likely to be able to be met out of icome if ad whe they arise; ad The likelihood, o the best evidece available, of each of those eeds arisig ad the potetial cosequeces for the Arts Coucil of ot beig able to meet them. Havig carefully cosidered the above, the Arts Coucil Board approved a target NLDF balace for 31 March 2017 of millio. The actual NLDF balace was millio ad the lower actual balace arose due maily to a shortfall o icome from the lottery ad also because more cash was i the bak to cover grats beig paid i April The model assumed forecast icome of 10.1millio where actual icome was 9.2 millio. Key Issues ad Risks Details o maagig the Arts Coucil s risk ca be foud i the Goverace Statemet. The pricipal risk facig the Arts Coucil arises from pressures o public fudig ad the ew fudig eviromet. The Arts Coucil has modelled govermet cuts to iform optios, the impact of cuts o arts orgaisatios ad staffig levels. It is essetial that staffig levels are maitaied at a level sufficiet to deliver the lottery fud objectives. Social ad Commuity Issues The Arts Coucil supports geerous charitable givig by staff through payroll givig. Goig Cocer Basis The Lottery Distributio Accouts of the Arts Coucil are produced o the Goig Cocer Basis. This was formally cosidered by the Board at its Board meetig o Wedesday 1st November The Arts Coucil is ot aware of ay reaso to adopt a differet basis. The Departmet for Commuities (DfC) are curretly udertakig a review of all arms-legth bodies. The review will ot be complete till fiacial year at the earliest. The Arts Coucil cosiders that the Fud is ot exposed to sigificat liquidity risks; it is satisfied that it has sufficiet liquid resources withi the NLDF ad cash balaces of 3.8 millio as well as forecasted NLDF icome to cover the total of the curret ad o-curret liabilities of 2.7 millio. The forecasted NLDF icome is based o quarterly projectios received from DCMS. Curret projectios are to Research ad Developmet The Arts Coucil of Norther Irelad has o activities i the defied field of research ad developmet. 7

11 Arts Coucil of Norther Irelad Lottery Distributio Accout Iterest Rate ad Currecy Risk The Arts Coucil Lottery Distributio Accout has o borrowig, relyig primarily o Lottery fudig for its cash requiremets ad is therefore ot exposed to liquidity risks. It has also o material deposits. As all sigificat assets ad liabilities are determied i sterlig, it is ot exposed to material iterest rate or currecy risk. Political ad Charitable Doatios The Arts Coucil of Norther Irelad made o political or charitable doatios durig the year. Paymet of Suppliers The Arts Coucil is committed to the prompt paymet of bills for goods ad services i accordace with the Cofederatio of British Idustry s Prompt Paymet Code. The target for paymet of bills is 10 days from receipt of goods or services, or presetatio of a valid ivoice or similar demad, whichever is later. A review coducted at the ed of the year to measure how promptly the Arts Coucil paid its bills foud that 97% of the bills were paid withi this stadard. The comparative figure for was 95%. A review of paymet of bills i 30 days from receipt of goods or services foud that 100% ( : 99.7%) of the bills were paid withi 30 days. Pesio Fud All assets, liabilities ad operatig costs of the Coucil s pesio scheme are recorded i the accouts of the Arts Coucil of Norther Irelad Exchequer etity. The salary charges to Lottery i-year iclude a recharge of employer pesio costs of 142,983 ( : 165,883). The market value of the Arts Coucil s share of the Norther Irelad Local Govermet Officers Superauatio Committee (NILGOSC) pesio scheme s assets (excludig Additioal Volutary Cotributios) at 31 March 2017 was millio (31 March 2016: millio) ad the preset value of the Arts Coucil s share of the scheme liabilities was millio (31 March 2016: millio). The Arts Coucil s share of the Scheme recorded et pesio liabilities at 31 March 2017 was millio (31 March 2016: millio). All assets, liabilities ad operatig costs of the Coucil s pesio scheme are recorded i the accouts of the Exchequer etity. Details of this pesio scheme are available withi the Arts Coucil s Exchequer accouts. Accouts ad Appoitmet of Auditors The Arts Coucil of Norther Irelad is required to prepare a statemet of accouts for each fiacial year i accordace with sectios 35(2) ad 35(3) of the Natioal Lottery etc. Act The fiacial statemets are also prepared i accordace with: The form directed by the Secretary of State for Culture, Media ad Sport with the coset of the Departmet for Commuities i Norther Irelad ad the approval of HM Treasury i accordace with Sectio 35(2) (3) of the Natioal Lottery etc. Act 1993; ad Govermet Fiacial Reportig Maual issued by HM Treasury. DCAL also issued, o behalf of DCMS, revised Lottery Policy Directios to the Arts Coucil o 16 April 2008, a copy of which is attached to the ed of these fiacial statemets i Appedix A. Uder the Natioal Lottery etc. Act 1993, i particular Sectio 35(5), the Comptroller ad Auditor Geeral examies ad certifies the fiacial statemets of each of the Natioal Lottery distributig bodies ad lays copies of the statemets ad his report before Parliamet. The fee for the audit of these fiacial statemets was 26,000 ( : 26,000). This cost is icluded i Other Operatig Costs Note 2 i the fiacial statemets. The Arts Coucil did ot purchase ay o-audit services from its exteral auditor. 8

12 Arts Coucil of Norther Irelad Lottery Distributio Accout So far as the Accoutig Officer is aware, there is o relevat audit iformatio of which the Arts Coucil s auditors are uaware. The Accoutig Officer has take all the steps that she ought to have take to make herself aware of ay relevat audit iformatio ad to establish that the etity s auditors are aware of that iformatio. The Accoutig Officer is resposible for esurig that the fiacial statemets as a whole are fair, balaced ad uderstadable ad takes persoal resposibility for them ad the judgemets required for determiig that they are fair, balaced ad uderstadable. Complaits Hadlig The Arts Coucil has a Service Charter which outlies the stadard of service the public should expect. The Coucil operates a Service Complaits Procedure to hadle geeral complaits about our service. Complaits ca be made iformally by telephoe or formally i writig to the Complaits Admiistrator. There are differet procedures depedig o whether the complait is: About a direct Arts Coucil service; About a third party orgaisatio or idividual fuded by the Arts Coucil; or A aoymous complait. Further iformatio o complaits ca be foud o the Arts Coucil website at about-us/customer-service/complaits Two reports were provided to the Board o the umber of complaits received ad the outcome withi the period. There were 5 direct complaits received i the fiacial year (0 i the fiacial year). Performace Summary The target NLDF balace for 31 March 2017 was agreed at 3.545m. The Quicker Turaroud KPI where 100% of decisios are to be made withi the published deadlie was 100% achieved. The Quicker Close Out KPI where 90% of grats were to be closed out withi two moths of the project ed was 74% achieved. 9

13 Arts Coucil of Norther Irelad Lottery Distributio Accout Performace Aalysis Key Performace Idicators (KPIs) ACNI Lottery has the followig two KPI s: The Quicker Turaroud KPI 100% of decisios to be made withi published deadlie Achieved The Quicker Close Out KPI 90% of grats to be closed out withi two moths of the project ed. 74% Achieved Fiacial results The Arts Coucil of Norther Irelad s Lottery Distributio results are set out i the Statemet of Comprehesive Net Expediture. Total icome received from the Natioal Lottery totalled 9,157,423 ( : 10,814,568). A recoupmet was also received from NI Scree of 65,682 ( : 32,634). Additioal icome of 182,536 ( : 0) was received for rig feced projects. A amout of 38,877 ( : 0) was received i grats made which for oe reaso or aother were retured to the Arts Coucil as the gratee was uable to sped the fuds. Durig the year the Arts Coucil made et commitmets of 8,719,597 ( : 3,616,955) to applicats ad cotributed 150,000 ( : 150,000) for Cross Border Tourig. The total admiistrative costs to the Arts Coucil of its distributio activities, icludig staff costs, were 1,529,374 ( : 1,651,369). Equity at the year ed At 31 March 2017 the Lottery Distributio Accout showed et expediture of 954,453 (31 March 2016: et icome of 5,403,878). At 31 March 2017 the total equity showed a surplus of 1,228,074 (31 March 2016: surplus of 2,182,527). Review of Natioal Lottery distributio activities Durig the year, 821 ( : 664) eligible applicatios were received by the Arts Coucil seekig grats of 12,955,133 ( : 11,658,835) across the mai Lottery programmes. The total umber of applicatios received ad the total umber of awards are ot directly related as, due to year ed ad timig of award programmes, applicatios ca be received i oe fiacial year ad decided i aother. By the ed of the year the Arts Coucil had made 519 commitmets ( :343) through the mai programmes, totallig 8,342,671 ( : 3,551,230). NI Scree made 78 commitmets ( : 82) totallig 559,195 ( : 679,379) uder its 3-year delegatio agreemet with the Arts Coucil. Therefore i aggregate commitmets were made i year totallig 8,901,866 ( : 4,230,609). 10

14 Arts Coucil of Norther Irelad Lottery Distributio Accout Additioality The Arts Coucil of Norther Irelad recogises ad respects the additioality priciples of Lottery fudig. Lottery fudig eables us to exted the reach ad icrease the impact of the activity that we could udertake if Exchequer fuds aloe were available. Together with the other Lottery distributors, we have agreed to share the followig commo defiitio of additioality: Lottery fudig is distict from govermet fudig ad adds value. Although it does ot substitute for Exchequer expediture, where appropriate it complemets govermet ad other programmes, policies ad fudig. We have regard to the priciples of additioality ad this policy whe we set the strategic objectives of our Lotteryfuded programmes ad whe we decide how each programme will operate. We have, ad will cotiue to use, Lottery fudig to fud specific, time-limited activity that would ot take place without the support of Lottery. Sustaiability Report The Coucil is committed to esurig that sustaiable developmet becomes a itegral part of our busiess. We are committed to esure that future geeratios ejoy the opportuity to visit arts veues i well-desigedbuildigs. Our sustaiable actios iclude: Sustaiable developmet: Sustaiable developmet is a guidig priciple of the Architecture ad Build policy published by DCAL i Cosistet with this policy our Capital programmes complied with the Govermet s Achievig Excellece i Costructio Iitiative which promoted desig quality ad sustaiability i costructio, while achievig best value of moey; Reducig our waste ad icreasig recyclig levels; Reducig our cotributio to climate chage i terms of eergy cosumptio ad related CO2 emissios; Reducig paper by use of tablet computers ad ecouragig duplex pritig ad pritig two pages o A4 paper; Participatig i the Govermets Cycle to work scheme; Reducig busiess travel, where possible, through greater use of video/telecoferecig; ad Ecouragig all tedered Arts Coucil suppliers to devise ad implemet Social Clauses/Corporate Social Resposibility (CSR) policies. Roisí McDoough 1 November 2017 Accoutig Officer 11

15 Arts Coucil of Norther Irelad Lottery Distributio Accout Accoutability Report Corporate Goverace Report Directors Report Board Members of the Arts Coucil of Norther Irelad ad members of its Audit ad Risk, Grats ad Fiace ad Capital Committees. Appoitmets to the Board are made by the Miister for Commuities. The Chair ad members of the Board have idividual ad collective resposibility to the Miister as Head of the Departmet: To provide effective leadership for the Coucil, i particular i defiig ad developig its strategic directio ad i settig challegig objectives; To act i a way that promotes high stadards of public fiace, icludig the promotio of regularity, propriety ad value for moey; To esure that the Coucil s activities are coducted i a efficiet ad effective maer; To esure that strategies are developed for meetig the Coucil s overall objectives i accordace with the policies ad priorities established by the Miister; To moitor the Coucil s performace to esure that it fully meets its aims, objectives ad performace targets; To esure that the Coucil s cotrol, regulatio ad moitorig of its activities as well as those of ay other bodies which it may sposor or support, esure value for moey withi a framework of best practice, regularity ad propriety; To participate i the corporate plaig process; ad To appoit a Chief Executive. The Chief Executive of the Arts Coucil of Norther Irelad is Roisí McDoough. The Board of the Arts Coucil of Norther Irelad for the year eded 31 March 2017 is show below: 12

16 Arts Coucil of Norther Irelad Lottery Distributio Accout Board: 1 April 2016 to 31 March 2017 Mr Bob Collis (Chairma, util 31 October 2016) Mr Joh Edmud (Chairma, from 1 Jauary 2017) Dr Katy Radford (Vice-Chair) Mr David Alderdice Ms Aa Carragher Ms Noelle McAlide Ms Katherie McCloskey Mr Paul Mulla Ms Nisha Tado Mr Coor Shields Ms Eibhlí Ní Dhochartaigh (util 16 December 2016) Dr Leo Litvack Ms Siú Haraha Ms Roisi Erskie Mr Jarlath Kearey Mr Cia Smyth The members of the Audit ad Risk Committee for the year eded 31 March 2017 were: Ms Aa Carragher (Chair) Ms Katherie McCloskey (util 31 May 2016) Mr Paul Mulla Mr Gerry Crossa (co-opted member from 24 Jue 2015) Mr Jarlath Kearey (from 1 Jue 2016) Ms Roisi Erskie (from 1 Jue 2016) The members of the Grats Committee for the year eded 31 March 2017 were: Dr Katy Radford Mr David Alderdice Ms Nisha Tado (Chair) The members of the Fiace & Capital Committee for the year eded 31 March 2017 were: Dr Leo Litvack (Chairma) Mr Gerry Crossa (co-opted member from 24 Jue 2015) Ms Síu Haraha Mr Cia Smyth (util 30 September 2016) Ms Katherie McCloskey (from 1 November 2016) Several members of the Board of the Arts Coucil ad members of key maagemet staff are also ivolved with other arts orgaisatios i Norther Irelad either directly or idirectly as a result of a family relatioship, a close friedship or busiess relatioship. All idividuals make a aual declaratio of their iterests ad do ot take part i discussios ad decisios to make grat awards to those orgaisatios with which they have a declared iterest. A list of awards made to the orgaisatios cocered ad details of who made the declaratio of iterest is detailed i Note 17. The Register of Iterests is also olie o the Arts Coucil website. All of the trasactios relatig to the orgaisatios were coducted at arm s legth by the Arts Coucil. 13

17 Arts Coucil of Norther Irelad Lottery Distributio Accout Orgaisatioal Structure Board of the Arts Coucil Chief Executive Executive Assistat to the Board of the Coucil PA to Chief Executive Director of Fiace ad Corporate Services Director of Strategic Developmet Director of Arts Developmet Director of Operatios Fiace & Corporate Services Departmet Strategic Developmet Departmet Arts Developmet Departmet Persoal Data There were o reported persoal data related icidets durig the year. 14

18 Arts Coucil of Norther Irelad Lottery Distributio Accout Statemet of Coucil s ad Accoutig Officer s resposibilities The Arts Coucil of Norther Irelad is required to prepare a statemet of accouts for each fiacial year i the form directed by the Secretary of State for Culture, Media ad Sport with the coset of the Departmet for Commuities i Norther Irelad ad the approval of HM Treasury i accordace with Sectio 35(2) (3) of the Natioal Lottery etc. Act The accouts are prepared o a accruals basis ad must show a true ad fair view of the state of affairs of the Arts Coucil of Norther Irelad s lottery distributio activities at the year ed ad of its icome ad expediture, chages i equity ad cash flows for the fiacial year. I preparig the accouts the Accoutig Officer is required to comply with the requiremets of the Govermet Fiacial Reportig Maual ad i particular to: Observe the Accouts Directio issued by the Departmet for Commuities o behalf of the Secretary of State for the Departmet for Culture, Media ad Sport, icludig the relevat accoutig ad disclosure requiremets ad apply suitable accoutig policies o a cosistet basis; Observe the curret versio of the Govermet Fiacial Reportig Maual; Make judgemets ad estimates o a reasoable basis; State whether applicable accoutig stadards as set out i the Govermet Fiacial Reportig Maual have bee followed, ad disclose ad explai ay material departures i the fiacial statemets; ad Prepare the fiacial statemets o a goig cocer basis. The Accoutig Officer for the Departmet for Commuities has desigated the Chief Executive of the Arts Coucil of Norther Irelad as the Accoutig Officer for the Coucil. The resposibilities of a Accoutig Officer, icludig resposibility for the propriety ad regularity of the public fiaces for which the Accoutig Officer is aswerable, for keepig proper records, ad for safeguardig the Arts Coucil of Norther Irelad s assets, are set out i Maagig Public Moey Norther Irelad issued by the Departmet of Fiace ad i the Fiacial Directios issued by the Departmet for Commuities o behalf of the Secretary of State for the Departmet for Culture, Media ad Sport uder s26(3) of the Natioal Lottery etc. Act

19 Arts Coucil of Norther Irelad Lottery Distributio Accout Goverace Statemet Scope of Resposibility As Accoutig Officer, I have resposibility for esurig the Arts Coucil s busiess is coducted i accordace with the law ad proper stadards, ad that public moey is properly accouted for, ad used ecoomically, efficietly ad effectively. I dischargig this overall resposibility, I am resposible for esurig the existece of a robust framework of goverace ad accoutability desiged to istil a soud system of iteral cotrol, maage risk ad support the achievemets of the Arts Coucil s objectives whilst safeguardig public fuds ad assets i accordace with the resposibilities assiged to me i Maagig Public Moey Norther Irelad. I am also persoally resposible for esurig compliace with the requiremet of the Arts Coucil s Maagemet Statemet, Fiacial Memoradum ad Statemet of Fiacial Requiremets. This resposibility is supported by the fuctios of the Arts Coucil; Board; Committees (particularly the Audit ad Risk Committee); iteral ad exteral audit; the Arts Coucil s Risk Register as well as accoutability meetigs with the Departmet for Commuities. I also combie my Accoutig Officer role with my resposibilities to the Departmet icludig ay Miisterial directios. There were o Miisterial directios i the fiacial year. Corporate Goverace Code The Arts Coucil complies with the priciples of good practice detailed i Corporate Goverace i Cetral Govermet Departmets: Code of Good Practice (NI) 2013 issued by the Departmet of Fiace uder cover of their letter DAO (DFP) 06/13. The Board has reviewed ad discussed the six priciples of the code ad was cotet that the Arts Coucil has adopted the practices set out i the code wherever they were relevat, practical ad cosistet with busiess eeds. Two priciples were less relevat to the Arts Coucil: a b Board compositio as the Departmet for Commuities Miister makes appoitmets to the Board. However, the Board has the authority to co-opt to its committees where it deems a skill or experiece is required; ad Arm s Legth Bodies (ALBs). This priciple has egligible relevace as it was directed towards Departmets ad their goverace arragemets with ALB Boards. There were o departures i the fiacial year from the applicatio of relevat priciples. Coflicts of Iterest The Corporate Goverace i Cetral Govermet Departmets: Code of Good Practice (NI) 2013 also requires the Board to publish how it idetified ay coflicts of iterest ad potetial coflicts ad how these have bee maaged. Several members of the Board of the Arts Coucil ad members of key maagemet staff are also ivolved with other arts orgaisatios i Norther Irelad either directly or idirectly as a result of a family relatioship, a close friedship or busiess relatioship. All idividuals make a aual declaratio of their iterests ad do ot take part i discussios ad decisios to make grat awards to those orgaisatios with which they have a declared iterest. A list of awards made to the orgaisatios cocered ad details of who made the declaratio of iterest is detailed i Note 17. All of the trasactios relatig to the orgaisatios were coducted at arm s legth by the Arts Coucil. 16

20 Arts Coucil of Norther Irelad Lottery Distributio Accout The Purpose of the Goverace Framework The goverace framework comprises the systems ad processes, ad culture ad values, by which the Arts Coucil is directed ad cotrolled ad the activity through which it accouts to ad egages with all stakeholders. It eables the Arts Coucil to moitor the achievemet of its strategic objectives ad to cosider whether those objectives have led to the delivery of appropriate ad value for moey services ad facilities. The system of iteral cotrol is a sigificat part of that framework ad desiged to maage risk to a reasoable level rather tha to elimiate all risk of failure to achieve policies, aims ad objectives; it ca therefore oly provide reasoable ad ot absolute assurace of effectiveess. The system of iteral cotrol is based o a ogoig process desiged to idetify ad prioritise the risks to the achievemet of Arts Coucil policies, aims ad objectives, to evaluate the likelihood of those risks beig realised ad the impact should they be realised, ad to maage them efficietly, effectively ad ecoomically. The goverace framework has bee i place i the Arts Coucil for the year eded 31 March 2017 ad up to the date of approval of the aual report ad accouts, ad accords with Departmet of Fiace guidace. Goverace Framework The key elemets of the systems ad processes that comprise the Arts Coucil s goverace arragemets are: 1 Idetifyig ad commuicatig the Arts Coucil s visio of its purpose ad iteded outcomes; 2 Reviewig the Arts Coucil s visio ad its implicatios for the Arts Coucil s goverace arragemets; 3 Measurig the quality of service, esurig delivery i accordace with the Arts Coucil s objectives ad for esurig that they represet the best use of resources; 4 Defiig ad documetig the roles ad resposibilities of the Executive, No-Executive, scrutiy ad Officer fuctios, with clear delegatio arragemets ad protocols for effective commuicatio; 5 Developig, commuicatig ad embeddig Codes of Coduct, defiig the stadards of behaviour for members ad staff; 6 Reviewig ad updatig the Maagemet Statemet ad Fiacial Memoradum, Fiacial Istructios, Scheme of Delegatio ad supportig procedure otes/mauals, which clearly defie how decisios are take ad the processes ad cotrols required to maage risks; 7 Udertakig the core fuctios of a Audit ad Risk Committee; 8 Esurig compliace with relevat laws ad regulatios, iteral policies ad procedures, ad that expediture is lawful; 9 Implemetig procedures for Whistle-blowig ad for receivig ad ivestigatig complaits from iteral ad exteral sources; 10 Idetifyig the developmet eeds of members ad seior officers i relatio to their strategic roles, supported by traiig; ad 11 Establishig clear chaels of commuicatio with all sectios of the commuity ad other stakeholders, esurig accoutability ad ecouragig ope cosultatio. 17

21 Arts Coucil of Norther Irelad Lottery Distributio Accout Board Membership The Arts Coucil is vested i ad admiistered by a body corporate kow as the Board of the Arts Coucil, cosistig of a Chair, Vice-Chair ad 12 members (as at 31 March 2017) appoited by the DfC Miister, as set out i the Arts Coucil (Norther Irelad) Order Durig the year the Board Chair retired ad was replaced by a ew Chairma Joh Edmud. The Vice Chair, Dr Katy Radford, acted up i the iterveig period to chair the Board meetigs. No other Board members were appoited or reappoited durig the year. I am supported by the Board of the Arts Coucil. The Chair ad members of the Board have idividual ad collective resposibility to the Miister as Head of Departmet: To provide effective leadership for the Arts Coucil, i particular i defiig ad developig its strategic directio ad i settig challegig objectives; To act i a way that promotes high stadards of public fiace, icludig the promotio of regularity, propriety ad value for moey; To esure that the Arts Coucil s activities are coducted i a efficiet ad effective maer; To esure that strategies are developed for meetig the Arts Coucil s overall objectives i accordace with the policies ad priorities established by the Miister; To moitor the Arts Coucil s performace to esure that it fully meets its aims, objectives ad performace targets; To esure that the Arts Coucil s cotrol, regulatio ad moitorig of its activities as well as those of ay other bodies which it may sposor or support, esure value for moey withi a framework of best practice, regularity ad propriety; To participate i the corporate plaig process; ad To appoit a Chief Executive. The Board held 13 meetigs durig the year to determie policy for the Arts Coucil ad make decisios i lie with that policy. 12 meetigs were Board meetigs ad oe meetig was for Board effectiveess traiig. I atteded 11 out of 12 Board meetigs. My Directors atteded early all the 12 Board meetigs ad produced papers ad iformatio to assist Board decisio makig. O 29th March 2017 the Board of the Arts Coucil of Norther Irelad met to review its effectiveess ad cosider goverace ad operatioal maagemet accordig to the requiremets of the NIAO Board Effectiveess Good Practice Guide. The Board cosidered all of those matters prescribed by the Guide ad where ecessary approved the operatioal respose. The Board cosidered Committee performace ad the relevace of curret structures ad committee memberships, midful that the Coucil is movig ito a ew plaig phase as it eters the fial year of the curret corporate pla. The Board reviewed ad approved its curret work-pla ad determied to establish a workig group to deliver the ext corporate pla. The Board cosidered positively its operatioal relatioship with the Executive ad oted the importace of havig time to review the fuctioig of Arts Coucil Norther Irelad i light of the curret eviromet withi which the arts operates. The Board has a rollig work-pla ad achieved its objectives, which were set out durig the year. The overall average attedace rate of members was 65%. 18

22 Arts Coucil of Norther Irelad Lottery Distributio Accout Attedace at Board ad Committee Meetigs Board Meetigs Committee Meetigs Total Meetigs Actual Possible % Actual Possible % Actual Possible % Bob Collis # N/A N/A N/A Joh Edmud N/A N/A N/A Katy Radford David Alderdice Aa Carragher Siú Haraha Jarlath Kearey Leo Litvack Noelle McAlide N/A N/A N/A Katherie McCloskey Roisi Erskie Paul Mulla Eibhlí Ní Dhochartaigh ~ N/A N/A N/A Coor Shields * N/A N/A N/A Cia Smyth Nisha Tado * # Bob Collis retired from the Board o 31st October He was replaced as Chairma by Joh Edmud o 1st Jauary ~ Eibhlí Ní Dhochartaigh retired o 16th December * Coor Shields ad Nisha Tado retired from the Board o 30th April Members of the Board have delegated some of their tasks to four sub-committees which oversee the activities of maagemet ad provide support: Audit ad Risk; Fiace ad Capital; Remueratio; ad Grats. The miutes of committee meetigs are stadig items o the ageda of Board meetigs ad the Committee Chairs provide full report o their activities. 19

23 Arts Coucil of Norther Irelad Lottery Distributio Accout Audit ad Risk Committee The Audit ad Risk Committee comprises four members ad oe co-opted member, ad is chaired by a member. It met five times durig the year. I atteded each meetig alog with the Director of Fiace ad Corporate Services ad the Operatios Director. The Audit ad Risk Committee has a rollig work-pla ad measures its performace by the achievemet of its objectives. Its terms of referece iclude supportig the Board ad Accoutig Officer by reviewig the comprehesiveess of assuraces i meetig the Board ad Accoutig Officer s assurace eeds, ad by reviewig the reliability ad itegrity of these assuraces; the activities of the iteral ad exteral auditors ad overseeig the risk culture of the Arts Coucil; ad also reviewig its ow effectiveess, costitutio ad terms of refereces ad reportig the results of that review to the Board. The Audit ad Risk Assurace Committee Hadbook (NI), issued uder cover of DAO (DFP) 05/14, sets out five priciples to be followed. These priciples are: Priciple 1: Membership, idepedece, objectivity ad uderstadig; Priciple 2: Skills; Priciple 3: The role of the Audit ad Risk Assurace Committee; Priciple 4: Scope of work; ad Priciple 5: Commuicatio ad reportig. The Audit ad Risk Committee formally cosidered these priciples at the Board effectiveess meetig o 29th March 2017 ad cofirmed it complied with the priciples. The Committee makes regular reports to the Board. Board Members are satisfied that the Committee is providig them with assurace. Other Committees The Fiace ad Capital Committee comprises three members ad oe co-opted member, ad is chaired by a member. This committee met four times durig the year. The Director of Fiace ad Corporate Services ad the Director of Operatios atteded each meetig ad I atteded oe meetig. Its terms of referece cover the proposal to the Board of the aual budget of the Arts Coucil; esurig comprehesive fiacial advice is provided to the Board; reviewig the detailed iformatio relatig to the fiacial resources icludig the Statemet of Comprehesive Net Expediture, Statemet of Fiacial Positio ad cash flow statemets; moitorig fiacial expediture agaist targets set throughout the year makig recommedatios as ecessary; reviewig the programmes, policies ad procedures relatig to the paymet of capital grats ad where appropriate, to propose chages to the above for Board approval; ad to advise o policy ad the strategic deploymet of capital resources. The Remueratio Committee comprises four members ad is chaired by the Vice Chair. Its terms of referece iclude assessig ad agreeig targets, stadards of performace, goals ad objectives i respect of the Chief Executive. I cosultatio with the Departmet it sets the remueratio terms related to the performace of the Chief Executive, givig due weight to the proper maagemet ad use of public moies. It moitors the performace of the Chief Executive withi the terms ad coditios of the cotract of employmet. It reviews its ow Terms of Referece aually to esure it is operatig to maximum effect ad recommeds ay chages cosidered ecessary to the Board for approval. The Committee carried out this review at the Board effectiveess meetig o the 29th March The Grats Committee comprises three members ad is chaired by a member. It met twice durig the year. I atteded these meetigs alog with the Director of Operatios. 20

24 Arts Coucil of Norther Irelad Lottery Distributio Accout Its terms of referece iclude reviewig the programmes, policies ad procedures relatig to the paymet of Exchequer ad Lottery grats, ad where appropriate, proposig chages to the above for approval by the Board; takig decisios o grat aid withi delegated fiacial limits set by the Board; advisig o decisios o Natioal Lottery Distributio Fud (NLDF) balace policy matters. The Board has delegated its grat-decisio-makig for grats uder 25,000 to staff. All decisios made by staff ad committees are reported to the Board. Busiess Plaig Each year of the five year strategic pla, amplified as ecessary, forms the basis of the busiess pla for the forthcomig year. The busiess pla icludes key performace idicators, milestoes ad targets liked to the Programme for Govermet ad Public Service Agreemets for the forthcomig year. It also liks to budgetig iformatio so that resources allocated to achieve specific objectives ca readily be idetified by the Departmet. The five-year strategy ad aual busiess pla takes ito accout the Miister s priorities ad is framed i that cotext. The draft busiess pla is submitted to the Departmet as early as possible, but o later tha 31 Jauary each year. The Arts Coucil s plas are submitted to the Departmet for approval ad iclude measures of performace ad aual targets i respect of each of those measures ad the proposed aual efficiecy. Progress agaist targets is reported quarterly to the Board ad bi-aually to the Departmet for Commuities goverace ad accoutability meetigs. A five year strategic pla for the arts i Norther Irelad , etitled Ambitios for the Arts has bee developed by the Board ad it elaborates o three key themes as follows: Champio the Arts; Promote Access; ad Create a more Resiliet Sector. The Key Performace Idicators related to quicker turaroud of decisios ad close out of grats after project ed. The results for the year are: Milestoes achieved 100% (1) Milestoes still progressig - (-) Milestoes ot achieved 74% (1) 21