The Trustees (who are also Directors for Companies Act purposes) present their report and accounts for the year ended 31 March 2021.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the Charity's Memorandum and Articles of Association , the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) and "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) (effective 1 January 2019)".
According to its Memorandum and Articles of Association, Dundee Contemporary Arts Limited (“DCA/the Charity”) exists to promote, maintain, improve and advance public education in contemporary arts and culture for the benefit of the community by the encouragement, support and promotion of the study, practice and knowledge of the visual arts (including but not limited to video and film) and other arts (including but not limited to sound recording, crafts, performance, broadcasting, publishing, literature, music, dance and song) by any means including but not limited to commissioning, galleries, printmaking, workshops, displays, talks, research, discussion groups and exhibitions of all kinds as shall be deemed by the Charity to be conducive to the objectives specified above.
Vision, mission and aims
DCA’s vision is to enrich people’s lives through ar t, culture and creativity .
DCA’s mission is to enable audiences, artists and participants to see, experience and create through our four programme areas - Exhibitions, Cinema, Print Studio and Learning – in our internationally renowned centre for contemporary arts.
DCA’s aims are: 1. To offer opportunities to see, experience and create contemporary art. 2. To support artists to create and disseminate their work. 3. To play a key role in Dundee and Scotland’s cultural and creative ecology . 4. To connect with audiences on local, national and international levels. 5. To ensure a secure future through a healthy and progressive environment and responsible planning and practices. |
Business plan and strategy
DCA’s regular business planning process was halted in 2020 as a result of government enforced lockdown and t he organisation focused on the shorter-term organisational requirements, ensuring income was secured, funds raised, staff paid, jobs protected and our charitable objectives met. Whilst the monies held in reserves would ensure three months of salaries could be met, until the Coronavirus Job Retention Scheme (furlough) was announced, the longer-term future of the organisation, along with so many others, looked very uncertain.
DCA made full use of the furlough scheme with all but two staff either fully or partly furloughed over the course of the year. All staff had their salaries topped up to 100% of their contractual pay and we were pleased to be able to introduce the Living Wage, for which DCA is now formally accredited, when we reopened our doors to the public in September 2020. We were also pleased to be able to protect all DCA jobs, with no redundancies made.
Fundraising became a main priority for the Director and the team and significant funds were raised from trusts and foundations, the local authority, core supporters, and many members of the public. |
In such uncertain periods, the frequency of board, senior management and executive meetings increased, all taking place online, enabling the team to discuss new developments surrounding the pandemic and restrictions, and to implement any changes and communications quickly and efficiently. Weekly KPIs covering income and visitor numbers across all areas of the organisation are gathered and discussed, to help guide strategic planning and focus.
In the final quarter of the year, a new 18 Month Recovery and Resilience Plan was developed, ready for implementation from April 2021 – October 2022. The Plan works in the spirit of DCA’s values, aiming to delivery our core programme activity, reconnect with audiences, deepen our partnerships, support staff, and ensure our financial sustainability. Alongside this work will be a process of reflection and learning, ensuring we are able to respond to the changing needs of audiences, staff, artists and partners, and build this into our future planning. Our new aims for this period are to :
1. Recover, deliver and celebrate our core programme activity 2. Reconnect with our audiences 3. Deepen our key partnerships and our role as an impactful collaborator 4. Support and develop staff and the organisation 5. Improve the long-term financial viability of the organisation.
These ambitions will be delivered through the work of each team and tracked through the new reporting framework f rom the senior team to the Board.
Activities, achievements and performance
Review of 2020-21
Introduction
The financial year from April 2020 to March 2021 has been my first full year as Chair of this very special organisation. I did not anticipate a pandemic. I am therefore extremely proud to present a report on all that DCA has achieved in spite of the most unprecedented challenges to normal operations, including two separate episodes of closure.
DCA staff, led by the Director and her senior team, have risen magnificently to meet the demands of COVID 19. They have shown creativity and resilience and continued to meet our core mission:– to enrich people’s lives through art, culture and creativity. There has been a deep sense of purpose and an unwavering belief in the power and impact of what DCA does. This has been welcomed by all our audiences, locally, nationally and internationally.
Our contributions have ranged from hugely popular art bags delivered to vulnerable families across the city to the online international engagement in our Exhibitions reading group; from the schools who loved connecting with a hybrid Discovery Film Festival to the ongoing support of audiences who chose to view their films through DCA At Home; from the safe reopening of our building to the commitment by artists to provide prints for a fundraising editions portfolio. I am now even more certain in the knowledge that the arts have the power to change lives and create meaningful experiences.
One of my major commitments when I took up post was to foster and even build partnerships with other organisations in Dundee city and elsewhere. In a strange way the pandemic crisis has facilitated that aim, not least in the formation of the Cultural Recovery Fund. The challenges from the pandemic will continue and we will need to move forward with care to protect an organisation that is central to the cultural life of Dundee and beyond. |
Partnership begins at home and I wish to acknowledge the strong support given to me by members of DCA’s Board, whose commitment, integrity and belief guided me through such stormy waters. The Board is extremely grateful to our funders and partners, particularly Creative Scotland and Dundee City Council, for their unquestioning backing over such difficult times, and to Freelands Foundation, whose championing of DCA Print Studio has been invaluable. I also wish to thank our many patrons, friends, members, donors and funders who have made our work both possible and sustainable. I have been buoyed by the response from many different audiences who have testified their belief in all that DCA does and the positive impact it has on people’s lives.
DCA’s latest Annual Review can be found on our website at:
https://www.dca.org.uk/about/organisational-information
Exhibitions
Within the last extraordinary year, we have had to reassess and re-evaluate all aspects of our Exhibitions work. Due to the pandemic, the doors of DCA’s galleries remained closed for longer than they have ever been in our 21 year history and, whilst of course this brought with it many difficult challenges, it also gave us a rare opportunity to reflect on our responsibilities to both audiences and artists in the work that we do.
In the first months of lockdown, a great deal of our time was spent working closely with artists in the programme to carefully reschedule and reimagine future projects. Whilst these conversations were happening we were also considering what elements of our programming might be adaptable for digital engagement, and decided to move our Exhibitions reading group online for the first time.
For these online sessions held from April until August, we looked back at some key writers we had previously studied (Ursula K Le Guin, bell hooks, Johanna Hedva, Audre Lorde) who focused on concepts of love, care, kinship and the imagination – vital ideas we felt we needed to be focusing on in the ungraspable moment we were in. Moving these conversations online allowed us to reach and connect to new audiences in ways we had not imagined before, with people dialling in from Scotland and the UK, but also from different parts of Europe, as well as the US and New Zealand to discuss these writers and their ideas. Based on these fruitful conversations over lockdown, we decided to continue producing our reading group sessions online for the foreseeable future, and have continued to programme these online throughout the rest of the year.
In August, we were incredibly busy in the galleries implementing Covid safety measures to ensure we could calmly welcome back visitors in September to see Stuart Whipps’ new exhibition If Wishes Were Thrushes , Beggars Would Eat Birds.
At the heart of this show was an exploration of particular gardens through characters and stories connected to them. Visitors were welcomed to the gallery to view a choreographed sequence of moving images using both digital and analogue means of projection, and were gently guided through the work by the artist’s voice. This narration gathered together histories and stories from Scotland, Ireland, England, France, Switzerland and Mexico, whilst macro and micro imagery moved from industrial scenes of limestone quarrying and cutting to minute details of leaf veins and organic plant structures. We also produced a series of online talks, discussions and screenings for audiences to enjoy whether or not they were able to make the trip to visit DCA in person. |
Publishing
Publishing remains a key part of what we do within the exhibitions programme at DCA and the last year has really helped us understand how important publications, chapbooks and artist books are in helping us engage more diverse audiences with our work. Inviting writers and poets into the programme remains an incredibly exciting way to further nourish thinking around the ideas explored within our exhibitions.
This year, we were delighted to work again with Margaret Salmon, following on from her exhibition in the galleries in 2019, to make a gorgeous new artist book K is for Kato , which explored the Esperanto language and alphabet through photography and writing.
In September, we produced a new chapbook as part of Stuart Whipps’ exhibition containing a collaborative text by artists and writers Michele Horrigan and Sean Lynch.
Over the course of the year we also worked closely with writers Helen Charman and So Mayer to produce new texts to be published as part of Emma Talbot’s exhibition at DCA.
Finally, in collaboration with Professor Maria Fusco and Dr Johanna Linsley, we have secured a fully-funded collaborative PhD studentship with the University of Dundee, looking at the ways in which non-normative and experimental writing can transform galleries and museums. We have appointed Adam Benmakhlouf to work with us and the university for the next three years to further develop our work with writers and expand our ambitions within DCA’s publishing programme.
Cinema
The first quarter of this year was a period of uncertainty, furlough, reflection, and planning for Cinema. With cinemas shut across the globe and our sector essentially at a standstill, we took the opportunity to engage with research, training and development. But rather than go dark completely, we worked hard to keep the conversation around film alive in Dundee with our loyal audience. Moving our activity to a digital arena – we put together Film and Dundead quizzes, an online film discussion club, recommendations and resources, short films and family activities, as well as virtual screenings.
In September, we reopened our doors with measures to ensure the safety of our audiences and staff. Some things were the same: a warm welcome, the breadth of the film programme, the commitment to providing the best big-screen experience and technical presentation. Some things were different: no printed cinema guide, weekly scheduling, 2m+ distance between bubbles, contactless ticketing and longer gaps between films. Ventilation challenges in the projection booth meant that only one staff member could attend each day, putting a pause on any of our special morning screenings.
Our capacity reduced from 200 in Cinema 1 down to 25 and from 70 in Cinema 2 down to 11. Despite fewer seats, fewer screenings, and fewer films in the August– November period, we still welcomed back over 5,311 customers to 457 screenings of 67 different films. While Christopher Nolan’s Tenet , which DCA proudly screened on 35mm, was touted as the film which would save cinemas, our most significant box office draw of 2020/21 at DCA was Schemers . The first feature film to be made in the city was a movie everyone locally wanted to see.
While opened, we resumed our local partnership with V&A Dundee with a series of films celebrating the Mary Quant exhibition. In addition, we instigated a new collaboration with MASH Cinema to create RE: Sisters , a series of events around pioneering women in electronic music.
As the cinema closed again in November, we pivoted our energy into developing a VOD (video-on-demand) platform. After months of planning, DCA at Home was launched in February 2021. Working with the Scottish company INDY Cinema and the New Zealand platform Shift72, we now have our own unique, curated film rental system. Mirroring the DCA cinema programme, the player offers customers new releases, classics, documentaries, and performance content.
While DCA cinemas were shut, DCA at Home became a vital outlet for us to enable our audiences to engage with the films we want to champion. Projects such as Re: Sisters were also able to move online and live quite comfortably within that sphere. Within a month of launch, we had 175 registered users signing up to become members of the free platform. In February to March, the player-generated 417 rentals of 87 unique titles and has now become an integral part of our cinema offer, a virtual third screen.
Print Studio
Following the closure of DCA Print Studio, like all areas of the organisation, we had many factors to consider before reopening. A quick migration to online working ensured the whole team was able to contribute to our reopening – developing an adaptive and risk assessed plan. Following much careful thought, we were able to ensure the complex environment of the studio, where users often spend a whole day handling tools and equipment and have many interactions with staff, was made as safe as possible for
users.
Following the relocation of some printing equipment to the Create Space (temporarily renamed Print Space), the introduction of new booking and contactless payment systems, as well as the limiting of both sessions and capacity numbers, we were delighted to finally reopen our doors in September 2020. Upon the implementation of these new protocols the response from users was immediate and uniformly positive. This reopening was significantly aided by the award of additional Covid support funds by Freelands Foundation.
We maintained close involvement with the Scotland’s Workshops group online. The network, which focusses on nationwide collaborative working with other agencies to raise awareness of art production facilities to artists, communities and organisations throughout Scotland, was more important than ever in these difficult times and helped us navigate reopening safely in line with government guidance as well as advocate for the value and impact of our work.
DCA Print Studio also welcomed the arrival of new equipment in 2020, in the form of Goccopro and MiScreen digital screen makers through funding received by Freelands Foundation. This equipment promises to revolutionise screen-printing processes, reduces chemical and plastics usage, and offers improved print quality and lower costs.
DCA Print Studio also increased its online content offering, produced a very popular ‘Monday Makes’ online papermaking workshop, and creating a regular ‘Tuesday Tour’ of the studio in order to maintain contact with users, in a series of posts which spotlights staff, tutors and studio users on DCA’s social media channels, a programme that has been incredibly well received online.
Learning
Although regular programme activity stopped in March 2020, we were able to continue work and achieve meaningful outcomes for audiences and individuals alike. We spent time considering what we could offer whilst maintaining quality of experience and equality of access, as well as connecting with our partners and audiences to listen to their needs and ideas, which saw us adopt a number of new ways of working.
Our first adaptation was to create new online Activity Sheets and Monday Makes (video and photo ‘how to’ guides) inspired by DCA’s exhibition programme and in tandem with DCA Print Studio, targeted at family audiences to support home-schooling and combat boredom in lieu of visiting our Create Space.
Our Craft Sunday online programme was piloted over three months at the start of 2021. Held online with all materials sent to participants via post, all three workshops were full to capacity and we received excellent feedback through our post-workshop questionnaires.
We piloted and refined our new Family Art Bags, effectively a workshop in a bag, with community partners as part of our Postcode Lottery funded project. This ran throughout the year with other community partners including Amina Centre and Dundee Bairns. Our collaborative PhD Art at the Start, led by Vicky Armstrong, created Art Boxes for 0–3 year olds to send out to support isolated parents at home via community partners. This project earned our partnership the UK-wide Fantastic for Families (FFF) Audience Impact Award 2020, which was a wonderful route to sharing the project and its outcomes. We were also one of five Scottish organisations to receive Engage UK/Scotland Awards for Children's Art Week 2020.
Whilst DCA was closed, we worked outdoors with community centres Boomerang, Maxwell Centre and Dundee International Women’s Centre, and partners Dundee Botanics, to explore art and nature linked to Stuart Whipps’ exhibition. This work saw us as one of five organisations to receive Engage UK and Engage Scotland Awards for our work during Children's Art Week 2020. When we could reopen again in September 2020, Create Space was relocated to Gallery 1 to provide safer socially distanced experiences for families and groups, including individual pre-packed Art Activity Bags themed to the exhibition, supported by Art Fund.
We tested new ways of online engagement with mums and young babies born during lockdown through partnership working with Amina Centres in Glasgow and Dundee, NHS consultation, and Perinatal Mental Health Scotland partnership working. We worked with Dundee secondary school Art & Design Departments on an NHS Tayside project to share online resources, supported by Art Fund; with Dundee Pensioners Forum to distribute our Say Hello With Art packs from our visitors, and explored safe ways of working with print techniques onsite, especially Riso Printing, which were successfully piloted in November with partners Hot Chocolate and Tayside Healthcare Arts Trust.
This year we:
created 46 new DCA Monday Makes and Activity Sheets
opened a re-vamped, Covid-safe Create Space for 40 days of bookable activity sessions
made and delivered 655 Family Art Bags, 200 Art Boxes for 0–3s, 175 Say Hello With Art packs
tested three new format online Craft Sundays with excellent feedback
tested new safe ways of working with two of our more vulnerable groups
developed new work with Black, Asian and minority ethnic mums and families
We were pleased to:
win the Fantastic For Families UK-wide Audience Impact Award and a Children’s Art Week award
have 5,363 views and downloads of our online activities
welcome 467 visitors to new Covid-safe Create Space
see 480 exhibition and Discovery Film Festival Activity Bags used onsite
ensure partner organisations felt engaged and safe to plan ahead for 2021
support families to feel safe and value opportunities for art-making together at DCA and at home
develop new filmmaking/editing skills on the Learning team to create the online activities
gather a fantastic range of feedback both online and in person
Discovery Film Festival
The 17th edition of Discovery Film Festival took place between Saturday 17 October and Sunday 1 November 2020, and again offered the best in new world cinema for young audiences, both at school and together with their families. The festival was delivered in a hybrid format, both online and also at DCA, but skewed heavily in favour of online access, which accounted for some 95% of all engagement.
The programme consisted of a selection of international short films as well as links to several key feature films from previous editions of Discovery Film Festival, along with resource and activity packs for both pre- and post-screening classroom and home follow-up with the films.
The online nature of the festival meant schools from beyond Tayside could watch the films in their own classrooms for the first time. A total of 208 requests to access the streaming platform were received from teachers across Scotland, with particularly impressive take-up in both Shetland and Argyll & Bute, as well as high levels of interest from our traditional audiences here in Tayside.
During the festival period, we received feedback from 27 classes from 31 different schools, listing some 3,100 viewers, though final numbers from all schools who participated may be significantly higher than this. The 15 different short films were screened a total of 1,031 times, and our resource packs for all the films on offer were downloaded on 747 separate occasions.
Sandwiched between the two periods of lockdown, we were very lucky to be able to hold six public screenings of the Discovery Short Film Collections to a total audience of 72 children and adults. These are far smaller numbers than we would usually have entertained, but the real joy on everyone’s face at being back inside a cinema auditorium was a pleasure to behold.
Editions & Publications
With the closure of DCA, our usual Editions activity and planned print projects were suspended. Instead, an alternate format was envisaged around what was possible in the circumstances – taking the form of the specially commissioned 2020 Editions portfolio. This comprises the work of ten artists from our past curated programme: Christine Borland, Martin Boyce, Eve Fowler, Ilana Halperin, Hideyuki Katsumata, Toby Paterson, P. Staff, Alberta Whittle, Jane and Louise Wilson and Clare Woods.
Artists were invited to work with us remotely during the intensive period in which staff had access to the Print Studio, these collaborations taking place through emails and videocalls. The success of this challenging project speaks to the positive working relationship and trust DCA and Print Studio staff had already developed with each artist, as well as the generosity of artists in giving their artwork, time and words in support of DCA.
This new portfolio, as well as our other editions, have been featured online while access to the physical work was restricted. During the limited time in which sales activity was possible, this was one of our most successful years ever in terms of Editions sales, along with many words of support from our collectors and buyers who were keen to help and continue to interact with DCA during the building closures.
This year has also seen new collecting relationships formed with university research collections, specifically through the acquisition of Alberta Whittle’s editions series Secreting Myths for the art collections of the University of Edinburgh and University of St Andrews, as well as the full portfolio of 2020 Editions being acquired by the art collection of the University of Stirling.
We are pleased that Alberta Whittle’s editions have been acquired by the permanent collections of the Scottish National Gallery of Modern Art and The McManus Museum. Editions by Ilana Halperin, Ciara Phillips, P. Staff and Luc Tuymans are also now represented in the permanent collection of Pallant House Gallery.
Finally, as part of her doctoral research, Editions Manager Sandra De Rycker presented an online paper on the DCA Editions project with Alberta Whittle at the College Art Association 2021 Annual Conference (in New York – online).
DCA Shop
The events of 2020 impacted how DCA Shop operates in a multitude of ways, both instore and online. Despite imposed restrictions on shop capacity and the introduction of a one-way system for shoppers, a combination of clear signage, updated policies and the implementation of new digital technologies ensured
that we balanced Covid safety for staff and visitors with the high levels of service that our customers have come to expect. Thankfully, the warmth and positivity of the feedback we received reflected our hard work during these particularly challenging and anxious times.
To improve accessibility to those unable to visit in person, significant additions were made to our online shop, increasing the available product range by over 30%. To reflect our physical shop range more fully online, we introduced a wide range of products for all budgets; silk scarves, polymer clay jewellery and screen-printed festive decorations from Scottish-based designers Helen Ruth, Kate Trouw and East End Press, compl e mented ceramics from design brands like Broste Copenhagen and a range of arts and culture book titles from publishers including Thames & Hudson. Dundee suppliers were also well represented, with Christmas card packs from local favourite Louise Kirby joining silver and 3D-printed jewellery from Dundee maker Genna Delaney on our digital shelves.
Following our second closure in November, the retail team pivoted to focus solely on our online platform in the lead up to Christmas. With staff access to the building limited, a new rota and socially distanced packing area were developed to ensure that all online orders were dispatched safely and promptly ahead of an anticipated, and achieved, increase in sales and website traffic as customers shopped increasingly from home. To provide a postal friendly gift giving option, a series of themed Gift Boxes was introduced, each containing a selection of carefully chosen products, attractively packed using bio-degradable wood wool, which could be sent directly to friends or family. A box of Dundee themed gifts proved popular, as did a care package containing relaxing and mindful gifts, designed with easing the stresses of Covid very much in mind.
In late 2020, DCA Shop supported the digital launch of Margaret Salmon’s DCA Publication, K is for Kato , which swiftly broke multiple online sales records for our publications programme, and we were also delighted to work closely with numerous departments to bring DCA’s 2020 Editions to the online shop in November 2020. Despite facing a range of Covid-related logistical challenges, shop staff were instrumental in the safe delivery of these wonderful artworks to customers across the UK and beyond.
Jute café bar
Jute café bar is an integral part of the DCA visitor offer. The commercial arrangements in place with the operator continued during 2020-21 to generate rental and royalty income for investment in DCA’s creative endeavors, with income of £23,398 (2020 - £196,542) from the café bar concession included in the result for the year. The current licence, on existing terms, with Jute café bar is in place until May 2023.
Audiences & Communications
The need for clear communications has never been greater than over the past year. From explaining the implementation of our new safety measures and announcing imposed closures, through the creation of new strands of content to cater for non-building based audiences, to maintaining crucial contact with the communities we work with and serve, our words have had more importance and weight than ever before. While it has been a period of uncertainty and change for all, it has also been one of resilience, collaborative ingenuity and opportunity.
After a busy period of communicating with audiences about DCA’s March 2020 closure, including sharing essential information for ticket holders, members, and regular customers, the Communications team quickly pivoted to a weekly schedule of online content designed to keep in touch with our audiences and share free, engaging arts content with anyone at home during lockdown.
During this time, we hosted regular features on our website and social media channels including:
D CA Film Club
DCA Film Club featured a curated short film by a well-known filmmaker, chosen by the Cinema team and accompanied by a written introduction, further reading links and notes. A live conversation open to all, was moderated with energy and enthusiasm by the Communications team, guided by discussion points and context provided by the Cinema team.
Monday Makes
Regular creative activities to download and try at home, with the opportunity to share with DCA’s followers using our # DCAmakes hashtag. Activities came from our Learning team, and were suitable for a range of ages and abilities.
Discovery Short of the Week
Discovery Festival programmer Mike Tait selected a weekly short film – usually an animation – to engage younger film fans at home. Mike’s written introduction gave guidance and context to parents and carers, and we provided creative activity ideas and worksheets to download and print for free, extracted from our archive of School Resource Packs.
Senior Citizen Kane Club
We were especially aware that many of the regular attenders from our Seniors cinema group live alone and would miss their weekly trip to DCA, so we created a fortnightly email specifically for them, with a special message from the Cinema team alongside their recommendations for the best films and cultural events available to watch for free online or via smart TV.
DCA at Home
We were thrilled to promote the launch our Video on Demand (VOD) platform, DCA at Home, in February 2021. This was a brilliant way for us not only to stay relevant and continue as a ‘cinema’ while we were closed, but helped DCA to continue supporting the release of indie films from the UK and beyond at a difficult time for the film industry.
Our Re:Sisters season, co-hosted with MASH Cinema, was an online event hosted on DCA At Home, our new video on demand channel, which allowed us to strive for deeper levels of digital engagement. As well as featuring a season of films dedicated to the pioneering women of electronic music, we hosted a livestreamed DJ set from local group KINTRA on our Facebook page, which attracted an audience of fans from as far away as Australia and the United States.
Following our initial reopening in September 2020, the Communications team had a hugely important role in ensuring audiences understood how we were keeping them safe and what we needed them to do in turn. This information was communicated in a range of formats from physical signs and vinyl, to digital screen slides, video, pre-visit emails and website information.
These changes and how they were communicated were under constant review, and through a mix of internal input and implementing feedback via post-visit surveys we were able to make sure that we were getting our Covid safety measures right for all.
When DCA closed again in November 2020, the team was swift to communicate this to customers, and were able to build on the lessons learned in March on how best to deal with this. Working in conjunction with Cinema and Learning teams, we helped to communicate the move to a hybrid Discovery Film Festival for 2020 while the building was closed. Public success for our online content was an interesting success as we had much wider location reach than we otherwise would.
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Creative Scotland and Dundee City Council are DCA’s principal public funders and their combined support for DCA’s core and programme-related costs makes up a significant portion (around 48% in 2020-21) of our overall funding base.
Other vital, project-based, fundraising in the year is highlighted in note 22 to the financial statements, with contributions generated from a diverse range of public bodies, corporate supporters, charitable trusts and foundations to all aspects of DCA’s creative making, participation and learning programme.
Fundraising to mitigate against the impact of Covid-19 became a key priority for the Director and her team , with significant funds raised from Art Fund, Visit Scotland, Screen Scotland, Creative Scotland, Dundee City Council, and the many donations made by members of the public, particularly those donating the price of already-bought tickets for the cinema and events. Particular mention must go to the Dundee Cultural Recovery Fund and the Freelands Foundation whose support has been invaluable. Full use of the furlough scheme has continued throughout the year, in addition to similar government business support measures, such as VAT deferment and reduced rate, where eligible to do so.
The Trustees are grateful for the continuation of Creative Scotland regular funding, with a further extension to the 3 year award, due to the pandemic. Further information on the new funding scheme will be made later in 2022. The T rustees remain confident that DCA will be able to present a strong case for continuation of funding, when the time comes.
The Trustees recognise the public spending pressures faced by Dundee City Council, along with many other local authorities, and welcome the opportunities afforded throughout the year to discuss future resource planning scenarios at high level with Council officers, as the city’s culture-led regeneration plans progress.
Financial review
The result for the year is reported in detail in the financial statements (on pages 20 to 22 ).
As a result of the global pandemic and the government-imposed lockdowns, DCA remained closed for around 10 months of the financial year, this closure had an impact on the income generation of the organisation with many aspects of the cultural programme being limited and restricted. However, that being said, DCA generated an underlying surplus for the year of £411,119 (2020 - surplus of £108,304) (see note 13). This surplus reflects the strong support system implemented as a result of the pandemic with DCA having access to around £560k of additional Covid grants. The Covid funding was to support the Charity in future years to recover and rebuild in the period following the pandemic and as a result of this, following the year-end, the Trustees have designated £250k of their reserves to their Post-Covid recovery and development fund.
Gross incoming resources for the year were £1,838,167 (2020 - £2,135,533). Core funding grants and similar income receivable from Creative Scotland and Dundee City Council represent 48% (2020 - 43%) of this total, with 50% (2020 - 48%) generated from trading, other fundraising activities and special purpose grants, including galleries tax relief, and a further 2% (2020 - 9%) receivable from Jute café bar concession arrangements.
After operating expenditure of £1,585,010 (2020 - £2,252,487), net income for the year was £253,157 (2020 – net expenditure - £116,954), inclusive of a charge of £157,962 (2020 - £225,258) arising from actuarial adjustments to actual pension costs required by FRS102.
Following recognition of an unrealised loss of £227,672 (2020 - unrealised gain of £179,575) on pension scheme obligations, the net increase in funds was £25,485 (2020 - net increase £62,621).
Inclusive of an actuarial pension scheme deficit of £1,037,317 (2020 - £651,683), negative funds of £136,83 4 (2020 - £162,319) were carried forward at 31 March 2021, but with a positive balance of £734,22 2 (2020 - £352,231) on unrestricted general funds.
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The pandemic will continue to have financial impact in 2021-22 due to the suspension of DCA venue-based operations from March to May 2021 , as a result of the national lockdown, and in view of on-going social distancing and other public health measures which will impinge on DCA’s visitor-led revenue streams for the foreseeable future. There has also been an impact in visitor footfall following depleted public confidence following a difficult 18 plus months of a sheltered existence. It’s apparent that it is a tough ask for people to re-engage.
Restricted funds
Included in the reported result for the year are net incoming resources of £38,102 (2020 - £6,206), and a balance carried forward of £84,209 (2020 - £46,107) relating to restricted fund activities. A detailed overview of restricted fund income and expenditure is included at note 22 to the financial statements.
Reserves
The movements and balances carried forward on DCA’s reserves are analysed at notes 22 to 25 to the financial statements.
Free reserves & designated funds
In terms of “free reserves” being funds not tied up in tangible assets or irrevocably committed to constructive obligations, £717,03 7 (2020 - £326,236) was carried forward at 31 March 2021 on the general fund. A further £82,052 (2020 - £91,026) was held in designated capital fund liquid assets at the balance sheet date.
Following the year end, a designated reserve of £250,000 was created to support the organisation as it adapts and recovers from the impact of the Covid-19 pandemic. These funds will be used to implement the Charity’s recovery plan and to aid its development through the aftermath of the pandemic. It is expected that this designated fund will be utilised over the next 3 years as recovery and development costs arise.
Reserves policy
The Trustees review the Charity’s reserve policy at least annually. The Charity’s reserve policy was last revised in September 2017. The policy, as stated, aims for: (1) a level of core (free) reserves equal to 10% of gross income received in the previous financial year, with (2) additional, designated reserves held against specific future strategic purposes identified by the Trustees, from time to time, and (3) to the extent required, at any time, by providers of restricted, special project funds.
Applying this test, undesignated free reserves at 31 March 2021 were some £503.5k above the core reserves level required by the policy - ostensibly, in the absence of extenuating circumstances (such as a pandemic), providing headroom for designation of funds by the Trustees to future strategic objectives or special projects. Considered from another angle, the Charity’s free reserves at 31 March 2021 are equivalent to a little over six months’ payroll cover. This is a fortunate, yet unusual position for the Charity to find themselves in, however, the board are very mindful that it could take considerable time to recover from the global pandemic and that part of these reserves may be required to be drawn on for the organisation to find its way back to full programme delivery, through post pandemic times in a world that remains very uncertain.
Pension fund liability
The adjustments to net expenditure and provisions for liabilities arising from actuarial assumptions relevant to the Charity’s participation in the Tayside Pension Fund (a multi-employer Local Government scheme) give rise to significant year to year volatility in reported results.
In view of the fact that, in the event of a winding up, DCA’s pension scheme liability is guaranteed by Dundee City Council, the Trustees take the view that no specific allocation of liquid reserves is required over and above the provision for future net pension scheme liabilities derived from the independent scheme actuary’s annual adjustments, as recognised in the balance sheet at 31 March 2021. |
Identified risks and risk management
The Trustees take overall responsibility for risk to the Charity and have assessed the major risks to which the Charity is exposed, and are satisfied that systems are in place to mitigate exposure to major risks. The Director and her senior management team have day-to-day responsibility for identifying and controlling risk. A risk register is maintained throughout the year and reviewed periodically by senior management. The risk register is discussed at Finance Audit & Risk sub-committee meetings and any significant changes in risks identified, or risk levels, are brought to the board’s attention, along with details of mitigating actions already taken, or recommended for adoption
Alongside the fundamental and pervasive impact of the pandemic on all of DCA’s activities and stakeholder obligations, the Trustees consider the principal risks facing the Charity, and corresponding mitigating actions, to be :
Financial risk: Critical dependency on core grants and in-kind support from two principal funders, Dundee City Council and Creative Scotland.
Mitigating actions : Ongoing emphasis on external fundraising and income diversification; judicious reserves management; use of income sensitivity analysis and scenario planning to set annual budgets; proactive maintenance of close, strategic relationships with both principal funders.
Economic risk: Impact of Cov id -19 and associated restrictions on audience willingness to return to DCA and impact upon DCA”s income generation, with greater trading volatility
Mitigating actions: communication of safety, cleanliness and warm welcome all as part of a DCA visit; careful monitoring of weekly KPIs but senior staff to influence immediate and strategic actions; increased local marketing and communications across all channels; regular national advocacy and high-level engagement with policy-makers, government officials and media influencers to raise profile of this issue.
Operational risk: Corporate IT not fit for current business needs, to include home working and increased digital activity. Remedial work required to DCAs duct work which Dundee City Council are responsible for, but there is a risk that the remedial work will affect the smooth operation of DCA activities.
Mitigating actions: Digital boost funding and IT consultancy secured to help explore strengthening the independence of DCA’s IT infrastructure, with a new IT management system, hardware and software. P rogramme specialist equipment audit commenced to inform future equipment expenditure budgeting; continued review and development of capital fundraising plans for renewal, upgrade and redevelopment of facilities . Ensure there is a planned maintenance schedule for works that fit in with a quieter period of DCA activities in order to facilitate the work required .
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G oing concern statement
As might be expected, the Covid-19 pandemic has a dominant impact on the Trustees’ consideration of going concern matters in this report, and in the drawing up of the financial statements to 31 March 2021. In assembling budget projections for the period up to March 2023, management has inevitably had to make its best estimates of future revenue and operating expenditure patterns following almost a full year of closure.
At this time, the T rustees take the view that DCA has a reasonable expectation of continued core funding support from both Creative Scotland and Dundee City Council through 2022-23. There is also good evidence of recent fundraising success to build on, as well as other guaranteed funding which has already been agreed.
On the other hand, there is no established track record of operating in a time following a global pandemic that would have direct relevance for DCA’s charitable and other trading activities. Significant uncertainty and potential volatility is attached making it difficult to predict how the future 12 months will look financially.
That said, DCA is in a very fortunate position, with a buffer reserve of six months payroll in hand at the time of approval of these accounts (December 2021), which the T rustees believe can be called upon, should any financial difficulty ensue.
The T rustees are of the view that the reserves DCA have will be sufficient to allow the C harity to continue to pay its debts as they fall due for the foreseeable future and for at least 12 months from the date of approval of the accounts, the Trustees believe DCA can continue to operate as a going concern. The financial statements have been drawn up accordingly.
The Trustees acknowledge that the actuarial deficit on the pension scheme has a substantial impact on the Charity’s net assets at the balance sheet date.
The Trustees have considered the effect that the reported pension scheme deficit will have on future cash flows and are satisfied, based on current funding arrangements, and Dundee City Council’s guarantor status, that the Charity will be able to meet the anticipated cost of future contributions into the scheme, as most recently advised by the scheme actuary.
Consequently, the Trustees are of the view that the actuarially derived pension scheme deficit does not prevent the financial statements from being drawn up on a going concern basis.
Plans for future periods
DCA’s plans for the next 18 months, from April 2021 to September 2022 are laid out in the 18 month Recovery and Resilience Plan, details above.
Notwithstanding the particular challenges that lie ahead for all in the cultural and visitor attraction sectors and across all of the communities DCA is here to serve, the Trustees continue to believe that DCA has a leading role to play in the city’s long-term regeneration plans, built around Dundee’s growing reputation as a centre for creativity and innovation, and in the wider cultural sector both nationally and internationally. Based on the feedback we regularly receive, we are also confident that our principal funders share this view.
The board remains committed to supporting the Director and her team in their constant focus on ensuring that DCA delivers on its promise to offer access to the best in the contemporary arts and creative making for all those that live in and visit Dundee.
The Trustees will also continue to look for ways, in which DCA can deliver economic and social benefits to the region, through its various programmes, at DCA and out in the community, working with Dundee City Council, wider regional and national agencies, and with other notable cultural partners in the region and further afield.
DCA is a company limited by guarantee and a registered Scottish Charitable company, and is governed by its Memorandum and Articles of Association.
The Trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:
Dr D Forbes is the Chair of the FAR (Finance, Audit & Risk) sub-committee.
Ms C Robertson is the Chair of the HR/OD (HR/Organisational Development) sub-committee.
The Articles specify the procedures for appointment and retirement of directors and for their maximum terms of office. The Articles also include reference to ex officio directors whose appointment to the DCA board stems from their designation as directors by Dundee City Council. At present, four elected members and one Council officer serve on DCA’s board as ex officio directors.
Recruitment of Trustees is considered by reference to a DCA board skills matrix and in the context of succession planning timelines.
Trustee induction arrangements include introductory meetings with DCA’s key management personnel and a tour of the building. An induction pack is provided to new Trustees which includes details of DCA’s governance arrangements, its programme and operations, its financial status, along with copies of published guidance issued by OSCR and Companies House setting out the regulatory and fiduciary context for Charity Trustees and Company Directors. In January 2021, the Board held an online training and development session on good governance.
The board is responsible for all decisions of last resort, for approving organisational policies, for agreeing annual operating and capital budgets, and for evaluating progress with the strategic business plan.
The HR/OD and FAR subcommittees provide specialist guidance to the board on technical compliance and policy matters, as well as carrying out reviews and reporting to the board on specific operational issues that may arise from time to time in relation to personnel, business risk, audit and financial management matters.
The board is also responsible for measuring the effectiveness of DCA’s Director, as well as directing and supporting her and the wider executive management team, in pursuing the Charity’s objectives, fulfilling obligations to funders and developing productive relationships with DCA’s principal stakeholders. The day to day running of DCA and its facilities, and the management of its people and wider creative and business relationships, is delegated to the Director, who is closely supported by two Depute Directors and the senior management team.
Pay policy for senior staff
The remuneration of the Director and the Senior Management Team is considered within the context of annual budget and core funding capacity constraints. Reference is made to appropriate peer group salary benchmarks where they are available and helpful in terms of setting pay levels that meet DCA’s organisational objectives and staff development needs.
Staff Engagement Group
Following a staff survey that undertaken over the summer of 2019, a group of six DCA staff from across the organisation now form a Staff Engagement Group, who work with the Director to raise issues, feedback on developments and gather ideas and plans from other colleagues. The group are exploring a number of different ways for the wider staff to be part of this ongoing process.
In accordance with the company's articles, a resolution proposing that Henderson Loggie LLP be reappointed as auditor of the company will be put at a General Meeting.
The Trustees' r eport was approved by the Board of Trustees.
The Trustees, who are also the directors of Dundee Contemporary Arts Limited for the purpose of company law, are responsible for preparing the Trustees' 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 Charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.
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;
- 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; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Charity 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 Charity and enable them to ensure that the financial statements comply with the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) and the Companies Act 2006. They are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Opinion
We have audited the financial statements of Dundee Contemporary Arts Limited (the ‘Charity’) for the year ended 31 March 2021 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and the notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion, the financial statements:
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
In auditing the financial statements, we have concluded that the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.
Other information
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The Trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
We have nothing to report in respect of the following matters in relation to which the Charities Accounts (Scotland) Regulations 2006 (as amended) require us to report to you if, in our opinion:
the information given in the financial statements is inconsistent in any material respect with the Trustees' r eport; or
proper accounting records have not been kept; or
the financial statements are not in agreement with the accounting records; or
we have not received all the information and explanations we require for our audit.
As explained more fully in the s tatement of Trustees' r esponsibilities, the Trustees, who are also the directors of the Charity for the purpose of company law, are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the Trustees are responsible for assessing the Charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.
We have been appointed as auditor under section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and report in accordance with the Act and relevant regulations made or having effect thereunder.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below :
Inquiry of management about any known or suspected instances of non-compliance with laws and regulations, and fraud;
Reviewing key policies in place such as those over health and safety, and GDPR;
Reviewing terms and conditions included within funding agreements;
Reviewing board meeting minutes and legal expenses for evidence of non-compliance with laws and regulations and fraud;
Challenging assumptions and judgements made by management in their significant accounting estimates, in particular the valuation of tangible fixed assets and stock, valuation of the defined benefit pension scheme, recoverability of debtors, and the application of accruals; and
Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness.
As a result of the nature of the Charity's operations, we identified the following areas as those most likely to have a material impact on the financial statements: terms and conditions stipulated in grant funding; OSCR requirements; Data Protection Act 2018; entertainment licences; health and safety; employment law (including payroll and pension regulations), and compliance with the UK Companies Act.
Owing to the inherent limitations of an audit, there is unavoidable risk that some material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK). For instance, the further removed non-compliance is from the events and transactions reflected in the financial statements , the less likely the auditor is to become aware of it or to recognise the non-compliance.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: http s ://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Use of our report
This report is made solely to the Charity’s Trustees, as a body, in accordance with regulation 10 of the Charities Accounts (Scotland) Regulations 2006. Our audit work has been undertaken so that we might state to the Charity's Trustees those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Charity and the Charity’s Trustees as a body, for our audit work, for this report, or for the opinions we have formed.
Donations and grants
Rental income
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
Dundee Contemporary Arts Limited is a private company limited by guarantee incorporated in Scotland. The registered office is 152 Nethergate, Dundee, DD1 4DY.
The financial statements have been prepared in accordance with the Charity's governing document, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) and "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) (effective 1 January 2019)". The Charity is a Public Benefit Entity as defined by FRS 102.
The financial statements are prepared in sterling , which is the functional currency of the Charity . Monetary a mounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
The going concern concept is used in preparing these financial statements. The Charity contracts annually with Dundee City Council and triennially with Creative Scotland for funding. The annual accounts are prepared on the assumption that the Charity will continue to receive financial support from these parties.
Whilst the Trustees believe they can rely on continued core funding support from both Creative Scotland and Dundee City Council through 2022-23, and the fundraising team will continue to pursue all available opportunities, significant uncertainty and potential volatility is attached to earned revenue projections, as on-going public confidence continues to impinge on DCA’s visitor-based trading model following the Covid-19 pandemic.
Fortunately, through Covid-19 support grants, the Charity has significant reserves in place to take them forward as they start to rebuild and recover from the pandemic. The Trustees are of the opinion that DCA can continue to operate as a going concern and the financial statements have been prepared on this basis.
The deficit in the balance sheet is a result of the deficit on the pension scheme. This is a long-term liability, unlikely to crystallise, which does not significantly affect the immediate cash flows of the Charity. This does not affect the adoption of the going concern concept.
Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives.
Designated funds comprise funds which have been set aside at the discretion of the Trustees for specific purposes. The purposes and uses of the designated funds are set out in the notes to the financial statements.
Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
All income is recognised when the Charity has entitlement to the funds, any performance conditions attached to the income have been met, it is probable that the income will be received and the amount can be measured reliably.
Donations are included in the year in which they are receivable, which is when the Charity becomes entitled to the resource with reasonable certainty and it can be measured reliably.
Income from grants, whether capital or revenue, is recognised when the Charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.
Sponsorship and other forms of assistance towards running a particular event are credited to the period in which the event occurred. Investment income and rental income are included in the year in which it is receivable.
Services and facilities that are donated in kind are not incorporated into these financial statements. The nature of these services is disclosed as a note in the financial statements.
Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably.
For the purposes of these financial statements, costs associated with the Shop are treated as other trading activities and are shown as part of costs of raising funds.
Costs of charitable activity comprise all the resources applied by the Charity in undertaking its work to meet its charitable objectives. The expenditure is allocated directly to one of the Charity's core activities, being Cinema, Print Studio, Learning and Exhibitions.
General communication, administration and governance costs are deemed as support costs which facilitate the core charitable objectives and are therefore allocated across the core activities and the costs of raising funds on a fair and reasonable basis as more fully described in note 10 .
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in net income/(expenditure) for the year.
At each reporting end date, the Charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any ) .
Stocks are stated at the lower of cost and estimated selling price.
Cash and cash equivalents include cash in hand, deposits held at call with banks and the local authority.
The Charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the Charity 's balance sheet when the Charity becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future p aymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Financial liabilities are derecognised when the Charity ’s contractual obligations expire or are discharged or cancelled.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the Charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
The cost of providing benefits under defined benefit plans is determined separately for each plan using the projected unit credit method, and is based on actuarial advice.
The change in the net defined benefit liability arising from employee service during the year is recognised as an employee cost. The cost of plan introductions, benefit changes, settlements and curtailments are recognised as incurred.
The net interest element is determined by multiplying the net defined benefit liability by the discount rate, taking into account any changes in the net defined benefit liability during the period as a result of contribution and benefit payments. The net interest is recognised in income/(expenditure) for the year .
Remeasurement changes comprise actuarial gains and losses, the effect of the asset ceiling and the return on the net defined benefit liability excluding amounts included in net interest. These are recognised immediately in other recognised gains and losses in the period in which they occur and are not reclassified to income/(expenditure) in subsequent periods.
The net defined benefit pension asset or liability in the balance sheet comprises the total for each plan of the present value of the defined benefit obligation (using a discount rate based on high quality corporate bonds), less the fair value of plan assets out of which the obligations are to be settled directly. Fair value is based on market price information, and in the case of quoted securities is the published bid price. The value of a net pension benefit asset is limited to the amount that may be recovered either through reduced contributions or agreed refunds from the scheme.
In the application of the Charity’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
In the Trustees' opinion the defined benefit pension scheme liability results from a significant estimate, calculated by the pension scheme actuary in compliance with FRS 102. The actual performance is unlikely to be in line with the actuarial valuation as a result of the valuation being based upon assumptions on future unpredictable events such a return on assets and mortality rates. The estimate has a material impact on the financial statements.
Tangible fixed assets are depreciated over a period to reflect their estimated useful lives. The applicability of the assumed lives is reviewed annually, taking into account factors such as physical condition, maintenance and obsolescence. Fixed assets are also assessed as to whether there are indicators of Impairment.
Credit control is an important function which requires assessment, on an ongoing basis, of the recoverability of amounts due from debtors. Where recovery is in doubt, the Trustees will adequately provide against this specific debt and will arrive at such conclusions based on the knowledge of the debtor and their “ability to pay”. The Trustees adopt a prudent approach to credit control.
Trustees estimate the requirements for accruals using post year end information and information available from detailed budgets. This identifies costs that are expected to be incurred for services provided by other parties. Accruals are only released when there is a reasonable expectation that these costs will not be invoiced in the future.
Donations and grants
Creative Scotland
Other public bodies & government agencies
Donations and grants
The Charity has a close relationship with Dundee City Council and in March 2015 a 20 year lease extension of the premises was agreed together with its plant, equipment and fittings for a nominal amount per year. The City Council also meets the cost of heat, light and cleaning services on the Charity's behalf. The value of this donation in kind has not been quantified and therefore is not included within the financial statements.
Cinema admissions income
DCC service level agreement
Workshop and course fees
Access fees and special events income (incl Discovery Film Festival)
Sale of print works and Exhibition publications
Cinema advertising income
DCA shop turnover
Room hires & similar income
Sundry income
Rental income
Rental income, royalties and service charges of £23,398 (2020 - £196,542) derives from the licence to operate the café/bar area. Following agreement of terms with the current operator in September 2020, the licence, which was due to expire in May 2021, was extended to May 2023.
Other fundraising costs
Cinema
Print Studio
Learning
Exhibitions
Cost of sales
Research and travel
Installation and production
Project costs
Workshop delivery and materials
Film hire
Repairs and maintenance
Other direct costs
PR and marketing
Cinema
Print Studio
Learning
Exhibitions
Cost of sales
Research and travel
Installation and production
Project costs
Workshop delivery and materials
Film hire
Repairs and maintenance
Other direct costs
PR and marketing
Communications
Premises and facilities
Management and administration
Other g overnance costs
Support costs are apportioned to charitable activities and costs of raising funds on the following bases:
Staff costs Estimated staff time-costs and visitor numbers
Communications Trading income and visitor numbers
Premises and facilities Floor areas occupied/utilised by activities
Management and administration Full-time equivalent employees
Other governance costs are allocated equally across DCA's charitable activities and fundraising activities.
None of the Trustees r eceived remuneration or benefits from the Charity during the year (2020 - Four of the Trustees received £327 by way of reimbursement of travel expenses and leaving gifts for those retiring from the board).
The average monthly number of employees during the year was:
In the period covered by these financial statements the key management personnel of the Charity comprise the Executive Management Team which is made up of the Director and the Depute Director s , and the Senior Management Team, being the Head s of Finance, Exhibitions, Cinema, Print Studio, Learning and Communications.
The annual equivalent of employee benefits for key management personnel for the year ended 31st March 20 21 was £351,340 (20 20 - £ 338,977 ).
The Trustees feel that it is important to highlight all of the adjustments made to the normal ongoing results of the Charity in preparing these financial statements . In particular, they wish to highlight all of the accounting adjustments made to net income/(expenditure) on ordinary activities relating to Charity's participation in the Tayside Pension Fund.
The Charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1998 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.
Financial planning and accounting for the costs of pensions presents a difficult challenge. The amounts involved are large, the timescale is long, the estimation process is complex and involves many areas of uncertainty that are the subject of assumptions.
In accounting for pensions, The Employee Benefits section of FRS 102 is based on the principle that an organisation should account for retirement benefits at the point which it commits to paying them, even if the actual payment will be made years into the future. This requirement results in very large future liabilities being recognised in the financial statements .
Dundee City Council administers the Tayside Pension Fund, a pension scheme providing defined benefits based on a career average related earnings basis. Dundee Contemporary Arts is an admitted body of this scheme and its obligations to the scheme are guaranteed by Dundee City Council. The assets of the scheme are held separately from those of the Charity and of the Council, being invested in a fixed fund. Contributions to the scheme are charged to the income and expenditure account so as to spread the cost of pensions over employees' working lives with the Charity.
From 1 April 2009 the contributions of the employees have been based on a five-tier system ranging between 5.5% to 12% dependent upon their salary level. The employer's contribution was set at 18.5% up to 31 March 2012 then 18.0% up to 31 March 2014, it has been set at 17% thereafter. A fresh valuation for the scheme was carried out at 31 March 20 20 and updated on an approximate basis to 31 March 202 1 by qualified independent actuaries. The principal assumptions used by the actuaries were as follows:
The assumed life expectations on retirement at age 65 are:
Amounts recognised in the profit and loss account:
Amounts taken to other comprehensive income:
The amounts included in the balance sheet arising from the Charity's obligations in respect of defined benefit plans are as follows:
Movements in the present value of defined benefit obligations:
The defined benefit obligations arise from plans which are wholly or partly funded.
Movements in the fair value of plan assets:
The fair value of plan assets at the reporting period end was as follows:
The income funds of the C harity include restricted funds comprising the following unexpended balances held on trust for specific purposes:
Income
Expenditure
Income
Expenditure
Film Hub Scotland
Travel and accommodation bursaries for DCA Cinema staff towards young persons' film programme development and networking.
The British Council
An artist-in-residence exchange programme £nil (£4,000 in 2020)
Freelands Foundation
One off grant received for print studio capital expenditure.
Northwood Charitable Trust
Grant received in 2019 and 2020 towards DCA's creative communities programme development and networking.
European Regional Development Fund
EU funding body discretionary grant in support of DCA's European language films programme.
Centre for Moving Image/Scottish Film Education
A multi-year grant towards the costs of touring Discovery Film Festival school curriculum-related learning activities across Scotland.
Al-Maktoum Foundation (Scotland)
A donation towards DCA's family learning programme in 2019 - held over in full and utilised in 2019-20.
Guildhall School of Music and Drama in association with Barbican Centre, London
Artworks Artists Fellowship pairing DCA Learning and Jonny Lyons.
Freelands Foundation
Year 1 of 5 year grant to support the works of the print studio.
Tayside Health Artists Trust (THAT)
Delivery of ST/ART at DCA workshops, tour and celebration events, including 2 print-making and 1 animation school.
Sasakawa Foundation
Support for the Chikako Yamashiro exhibition in autumn 2021.
Daiwa Anglo-Japanese Foundation
Support for the Chikako Yamashiro exhibition in autumn 2021.
Henry Moore Foundation
Support for the Albert Whittle exhibition in autumn 2019.
Hugh Fraser Foundation
A donation towards DCA's community/ family learning programme .
Thorntons LLP
A donation towards the Discovery Film Festival.
Tay Charitable Trust
A donation towards learning activities.
Postcode Community Trust
A grant towards a community partnership project being carried out in association with Amina Muslim Women Resource Centre and Dundee International Women’s Association.
The movements in unrestricted reserves are detailed as follows:
Income
Expenditure
Transfers in
Transfers out
Income
Expenditure
Transfers in
Transfers out
Following the year end, a transfer of £250k was made from unrestricted reserves to a designated reserve, named, Recovery and Development Fund, the details of which are included in note 24 of the financial statements.
The income funds of the C harity include the following designated funds which have been set aside out of unrestricted funds by the T rustees for specific purposes:
Expenditure
Capital reserve
A designated fund to provide cover for one-off expenditure, other exceptional items and functional asset depreciation.
The T rustees took the opportunity in 2019 to replenish the capital reserve in the light of general fund capacity in hand at the year-end, with a view to maintaining and building up this reserve in anticipation of operating asset renewal needs and future capital project opportunities.
Notwithstanding the on-going impact of the pandemic, the Trustees prefer to retain this fund, but recognise that flexibility may be needed in relation to the re-designation of all or part of it to working capital support.
Recovery and Development fund
Following the year end, a designated fund of £250,000 was created to support the organisation as it adapts and recovers from the impact of the Covid-19 pandemic. This fund will be used to implement the Charity’s recovery plan and to aid its development through the impact of the pandemic. It is expected that this designated fund will be utilised over the next 3 years as the costs of recovery and development arise.
As more fully explained in the Retirement benefit schemes note , a provision is made at the year-end for the net liabilit y attached to the Charity's participation in the Tayside Pension Fund, as derived from the report of the independent actuary.
At 31 March 2021 the Charity had capital commitments as follows:
DCA have been awarded funding post year end in respect of the above commitment.
During the year the Charity entered into the following transactions with related parties:
The Charity received grant funding amounting to £232,000 (2020 - £245,000) from Dundee City Council and incurred payroll recharges amounting to £1,188,042 (2020 - £1,194,108).
As at the year end the Charity was due £12,516 (2020 - £49,000) from Dundee City Council and was due to pay £nil (2020 - £89,992) to Dundee City Council.
Dundee City Council is a related party as there are members of Dundee City Council who serve on the Charity's board. As mentioned in note 3, the Charity is provided free of charge with various services which have not been quantified.