BRITISH FILM INSTITUTE GROUP AND LOTTERY ANNUAL ...

BRITISH FILM INSTITUTE

GROUP AND LOTTERY

ANNUAL REPORT AND FINANCIAL STATEMENTS

2014-15

HC 283

SG/2015/98

BRITISH FILM INSTITUTE Group and Lottery Annual Report and Financial Statements for the year ended 31 March 2015

Presented to Parliament pursuant to Section 34(3) and 35(5) of the National Lottery etc. Act 1993 (as amended by the National Lottery Act 1998 and the National Lottery Act 2006).

ORDERED BY THE HOUSE OF COMMONS TO BE PRINTED 21 JULY 2015

Presented to the Scottish Parliament pursuant to the Scotland Act 1998 Section 88

Charity Registration no: 287780

HC 283

SG/2015/98

© BRITISH FILM INSTITUTE (2015)

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CONTENTS

BFI ANNUAL REPORT

Mission and Values Page 5

Chairman and Chief Executive’s Report Page 6

What we delivered this year Page 9

Public Policy, Research and Statistics, Leadership and Advocacy Page 33

Fundraising and Philanthropy Page 35

Key Performance Measures Page 41

Financial Review Page 44

Public Benefit Page 48

Environmental Sustainability Page 49

How the BFI is Governed Page 51

Remuneration Report Page 58

Corporate Information Page 63

GOVERNANCE STATEMENT Page 64

BFI GROUP AND CHARITY FINANCIAL STATEMENTS

Statement of Governors and Accounting Officer’s Responsibilities Page 70

Independent Auditors Report Page 71

BFI Group and Charity Financial Statements Page 73

Page 96

Page 97

Page 99

Page 117

Page 127

LOTTERY FINANCIAL STATEMENTS

Statement of Governors and Accounting Officer’s Responsibilities

Certificate and Report of the Comptroller and Auditor General

Lottery Financial Statements

Schedule 1: Film Rights Detail as at 31 March 2015

Schedule 2: New Soft Commitments

Schedule 3: Lottery commitments (soft) made by delegate bodies Page 132

STATUTORY BACKGROUND Page 135

MISSION AND VALUES

The BFI serves a public role which covers the cultural, creative and economic aspects of film in

the UK.

Founded in 1933, the BFI is a registered charity governed by Royal Charter. Under the Royal

Charter, the BFI has five objectives:

• To encourage the development of the arts of film, television and the moving image

throughout the UK;

• To promote their use as a record of contemporary life and manners;

• To promote education about film, television and the moving image generally, and their

impact on society;

• To promote access to and appreciation of the widest possible range of British and world

cinema;

• To establish, care for and develop collections reflecting the moving image history and

heritage of the UK.

Film Forever is the BFI’s strategic plan for 2012-2017, which covers all BFI activity, and focuses on

three priority areas:

• Expanding education and learning and boosting audience choice;

• Supporting the future success of British film;

• Unlocking our film and television heritage.

In carrying out its duties, the BFI undertakes to:

• Consider the views of the industry, our audiences and our partners

• Be efficient, effective and accessible

• Be honest, open and accountable for our actions

• Provide clear and appropriate information, guidance and feedback

• Share and learn best practice in order to continually improve the services on offer

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CHAIRMAN AND CHIEF EXECUTIVE’S REPORT

Film, television and all digital moving image are intrinsic to the prosperity of our economy and the

richness of our cultural lives. The BFI has a vital role to play in inspiring the next generation of

filmmakers and audiences, sparking innovation and creating jobs to drive economic growth.

Recent research shows these sectors are worth £6bn annually to the UK economy, employ 143,000

people and that, remarkably, one in ten visitors to the UK come because of images they have seen on

screen. The tax reliefs for film and more recently high end TV, animation and video games have

played a major part in helping to sustain the UK’s leading position in these competitive global

markets and acted as a catalyst for further inward investment. As a result the sector is full of energy

and bristling with potential and the creative interplay between film, television, animation and video

games is evolving rapidly - driven as much by the audience as by the creators. Digital technology

offers a world where many more people in the UK have an opportunity to take part in these sectors.

For the BFI it is an exciting era with our role more relevant than ever. The BFI is part of the ‘R&D’ in

these industries. Film is a risky business and our role is to find, nurture and motivate emerging talent

from all backgrounds, and to support their careers through early productions here in the UK and

internationally. Our role is to make it possible for a broad spectrum of British and global cinema to

be available for audiences everywhere, so they can embark on their own film adventures, and

discover a much wider range of exciting and diverse film voices. Our role is to cherish and make

available in the most compelling way we can, the National film collections, to inspire the next

generation of audiences, creators and artists. By carrying out these roles we help make the UK one

of the most exciting and dynamic places on earth for the creative industries.

This document reports on the third complete year of our strategy Film Forever, and this report

illustrates the very rich programme of activity and support that we have provided. For young people

there are now 12,000 film clubs in schools across the UK installed by ‘INTO FILM’ our funded partner

and for those who have aspirations to make a career in the industry, The BFI Film Academy provided

over 60 courses, with the top students being selected for one of three professional residential

courses learning with the best at The National Film and Television School.

We were very proud to have played a small part in supporting an array of films, of which Pride,

directed by Matthew Warchus, says so many things about what we do; supporting emerging talent

(writer’s first film, producer’s first film, director's second film, and lots of breakthrough roles for new

acting talent), brilliantly diverse, an engrossing story of a moment in Britain’s social history in a

crowd-pleasing package. The film went on to pick up many awards, was selected for Cannes, was a

BAFTA winner and a Golden Globe nominee and best of all, it found a wildly enthusiastic audience.

We were also delighted that Paul King, whose first film Bunny and the Bull was funded by the BFI,

was spotted by producer David Heyman (Harry Potter, Gravity) and went on to direct the global

success story of bears and marmalade in Paddington.

Paddington was selected as the premier screening during the GREAT Festival of Creativity in

Shanghai, at which a carefully restored, rare early film from China, found in the BFI archive, was

presented to China by HRH Prince William. During the Festival we were also delighted that the then

Secretary of State Sajid Javid announced the ratification of a landmark co-production treaty between

China and the UK, which BFI had been negotiating in partnership with DCMS for some time.

In the last three years we have done much to encourage cinemas across the UK to work together to

build audiences for British, world and heritage film. We saw audience growth across all our activities,

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with record attendances and box office income for the BFI London Film Festival and Flare. We

welcomed 1.6m visitors to BFI Southbank, and had two of the most successful BFI distribution re-

releases ever - the iconic 2001: A Space Odyssey and Blade Runner. Our social media reach grew by a

record 200%.

One of the ways in which we build audiences is through an annual ‘blockbuster’ themed celebration

of film. This year the theme was Sci-fi – Days of Fear and Wonder. More than 200 screens worked

together offering the widest ever celebration which included more than a thousand films from across

the world. The inventiveness was breathtaking. One such stand-out event was ‘Watch the Skies!’,

held at Jodrell Bank with projections onto the actual Observatory dish and screened to audiences of

1,000 people in the heart of the Cheshire countryside. The event wrapped in a ‘Discovery Fair’,

hosted by scientists from the University of Manchester, which included demonstrations of the Oculus

Rift Virtual Reality headset. Evaluation showed that over a quarter of the entire UK population were

aware of the season.

Audiences for the BFI’s programme celebrating the cultural value of television grows every year. TV

seasons at the Southbank ranged across 193 individual titles and some 11 monthly seasons.

Highlights included the start of our two year commitment to be the first organisation to screen the

entire canon of the late Dennis Potter on the 20th anniversary of his death. TV played a pivotal role in

our sci-fi season and featured heavily in Southbank previews including Peter Capaldi’s first outing as

Doctor Who.

The programmes are dependent on our ability to present them in a compelling way so that they can attract philanthropic support. After a challenging previous year, fundraising generally picked up steam and, energised by the cultural programme, ended by exceeding its target. Core to this were the fact that the majority of corporate sponsors returned in the year, the newly-established Patrons scheme has really started to take off, and the new ‘Film Forever Club’, initiated and sponsored by the BFI Chair Greg Dyke, has seen our most loyal and generous donors increase their annual commitment to the BFI’s charitable activities. The forward targets by necessity become increasingly ambitious, not least as all publicly funded cultural organisations are facing a challenging financial landscape. Recognising the future importance of maximising the BFI’s fundraising capability, and the ever increasing competitive environment for philanthropic support, the Board has set up a taskforce to benchmark BFI fundraising activity, and to investigate other successful fundraising models around the world in order to inform our strategy and delivery going forward.

2015 also saw the BFI taking direct action on diversity by launching the ‘3 Ticks’ scheme. All

productions in receipt of BFI Lottery funding now need to work with us to demonstrate diversity both

in front of and behind the camera. The simplicity of the scheme’s approach attracted huge support,

and has subsequently been adapted and adopted by others, including Channel 4. Our bold

commitment for the following year is to evolve the concept of the scheme and start to roll it out

across all our funding schemes and all our own cultural activities.

In the year we were gearing up for the release on the BFI Player of the largest ever number of titles

from the BFI Archive, our specialist staff have identified some 16,690 separate film works, and for

the first time ever we know just how many UK films have been made in the history of filmmaking. An

important part of this work has been leading on the global scheme for every film to have a unique

identifying number, much the same as the ISBN number for book publications.

As part of our commitment to supporting the growth of video games, we hosted the first BFI Video

Games Day at the Southbank. Presented by the BFI Certification Unit which administers and

promotes the tax reliefs for all the screen industries, the day attracted over 130 delegates

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representing games companies from across the UK. Issues discussed ranged from access to finance,

diversity, culture representation, education and practical advice to help companies access the relief.

The year also marked our third as a formal Government Arms Length Body which triggered a

‘Triennial Review’ which was commissioned by the Minister Ed Vaizey on 26 March 2014. The

review’s findings were broadly positive, recognising the huge change that had taken place just three

years earlier when most of the activities of the UKFC were merged into the BFI resulting in significant

efficiency savings. The review reported that consistent messages had been received from

stakeholders who recognised that we had continued to deliver all the core functions fluently during

this period of significant change. The review also confirmed that the decision by the Minister to

create a single lead body for film in the UK had worked, and that the BFI was performing this role

well, and respected for making an important contribution to supporting the industry.

The review made a number of recommendations the most significant of which was that we should

develop ‘A business development Strategy, focused on establishing a new commercial model which

will optimise the value of the BFI’s various assets, and identify new ways to increase income from

private sources’.

Looking forward there is no doubt that all publicly funded cultural organisations are facing a

challenging financial landscape, and the BFI is no exception. We recognised some eighteen months

ago the need to radically re-consider our future and welcomed the support from DCMS to help us

think differently. We are approaching this by taking a root and branch look at our overall asset

portfolio, particularly our London estate, to explore all options for how this could be better leveraged

to grow income further in order to protect funding as far as we are able to our UK-wide activities

such as regional archives and cinemas, and national services such as Certification for the Tax reliefs

and the National film agencies.

Over the last four years, the BFI has driven through efficiencies amounting to £13m, and at the same

time grown our earned income by 15%. The BFI staff are the charity’s greatest asset, and we pay tribute to a team of individuals it would be hard to beat, for professionalism, pragmatism, generosity,

expertise and a dynamic can-do attitude.

In 2015-16 we look to the more comprehensive evaluation of Film Forever and, informed by this, to

start developing and consulting on our next four year strategy which will start in 2017. Priorities will

be focussed around strengthening opportunities for all, whether for a future career or pleasure; a

focus on supporting capacity building and talent development outside London with a longer term

vision of developing centres or ‘clusters’ across the UK. We will also be looking more deeply at what

additional support for video games, virtual reality and transmedia is needed to support innovation

and business growth. All however hinges on the outcome of the spending review in the autumn. We

are committed to doing all we can to sustain support for film, television and if financially possible

video games and all digital moving image.

Greg Dyke Amanda Nevill

Chair, Board of Governors Chief Executive

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WHAT WE DELIVERED THIS YEAR

STRATEGIC PRIORITY ONE

EXPANDING EDUCATIONAL OPPORTUNITIES AND BOOSTING AUDIENCE CHOICE ACROSS THE

UK

• THE BFI 5-19 EDUCATION OFFER

Into Film was awarded BFI lottery funding in April 2013 to deliver a programme of film education

activities aimed at inspiring young people to watch, understand and make films. The programme

significantly stepped up a level in 2014-15. Overall, it had direct reach to 941,853 young people

across the year. Into Film’s after-school programme was especially successful with over 12,000

film clubs established right across the UK. We are particularly pleased that there is a strong

relationship between schools with film clubs and schools where a high % of pupils are in receipt of

free school meals. It is initiatives like this that break down barriers to participation and help

ensure every young person has access to a rich cultural education and to a creative life.

The programming choices of film clubs are varied and over half were British, Archive or foreign

language titles. BFI has worked closely with Into Film to deliver our cultural programme into

schools, including Sci-Fi and Britain’s Greatest Generation. Into Film’s learning resources proved

popular with over 69,000 downloaded while over 4,500 teachers and youth workers undertook

training, inductions and CPD sessions.

The Into Film Festival is a free and annual celebration of film and education. The 2014 Festival

took place during November and engaged close to 400,000 young people and educators, making

it the world's largest annual free film festival for young people.

• CREATIVE SKILLSET

Creative Skillset ensures that the UK film and creative industries retain their reputation for

extraordinary talent and skills. It supports a pipeline of new entrants, continually strengthens the

existing workforce, anticipates future needs, and supports world-class film education.

Throughout the expansion of the creative industries last year both the DCMS and BIS recognised

and supported Creative Skillset’s industry-led experience and interventions in building company

and freelancer growth and capacity across the UK. This was in addition to BFI’s National Lottery

support, the film industry’s ongoing investment via the film skills Levy paid by productions*, and

new funding from the Heritage Lottery Fund to support technical skills in Archive. BFI Lottery

funding of £4M funded 130 professional development programmes and 124 bursaries; benefitting

over 5,200 individuals in film training - from development through to exhibition - from new

entrant to CEO level – addressing key industry needs. In addition, £5M was ringfenced and/or

awarded to Capital and equipment projects for film schools, which included the NFTS, London

Film School, the Met Film School, Norwich University of the Arts and the Screen Academy

Scotland.

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In recognition of the need for a film workforce that reflects our society Creative Skillset targeted

courses to support women and BAME new entrants and leaders. Their research raised the issues

around BAME representation in the film and TV industries, which resulted in the BFI‘s ‘three tick’

system in the film fund. Creative Skillset also launched the BFI Film Academy Internship

Programme to match alumni with film companies for a 12 week paid work placement, and

identified the need for and supported the FEDS (Film Exhibition, Distribution and Sales) internship

programme, which has placed 15 diverse young people into leading film-business companies for

10 months.

*The Film Skills Levy model, which has raised £10M for film training from film productions since

1999 and devised and managed by Creative Skillset, incentivised the high-end TV and Animation

industries to set up similar models. A steady stream of funding is now available to these

industries to support.

• IN VENUE EDUCATION

The BFI Future Film Festival, which offers 15-25 year olds interested in pursuing a career in the

film and creative industries a unique opportunity to obtain access to members of the industry and

attend a wealth of talks, master classes and networking events, returned to BFI Southbank for the

eighth year from 20-22 February 2015, with a packed line-up which also included workshops,

screenings and Q&As.

The 2015 Festival marked the highest number of film submissions by young filmmakers since its

inception, 1,300 entries up from 400 in 2014. 4,000 participants enjoyed highlights including an in

depth case study into the animation phenomenon that is Rastamouse, a Q&A with the cast of E4’s

hit show, Glue, and screenings of new and exciting films including Whiplash (2014) and The

Kingdom of Dreams and Madness (2014) - the recent documentary about the Japanese animation

house, Studio Ghibli.

The Future Film Festival is part of over 500 separate learning events that were hosted in and

around BFI Southbank, reaching over 45,000 people of all ages.

Future Film Festival awards are supported by The Chapman Charitable Trust and The London

School of English/London School trust. The BFI Raw Awards, an additional £5,000 prize

available for BFI Future Film Festival winners, are kindly supported by the concept founder

Charles Morgan.

A major innovation this year was funded by the Wellcome Trust. The Midwich Experiment reached

out to pupils across England and Wales in five events introducing neuroscience through the 1960

classic Village of the Damned.

Highlights of the adult community programme included a mini season of Chinese New Year films,

15 events and screenings for African Caribbean audiences which included a weekend of Nigerian

cinema in September, Palestinian and Roma films as part of Refuge in Film week in June, and a

weekend of Afro-Futurism in November as part of BFI's Sci-Fi season. Altogether the 40 events

for diverse audiences reached over 5,000 people.

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Our Chinese Cinema season, Electric Shadows, was enriched with evening courses, lectures,

introduced screenings, and the King's Key Scholars in Film lecture by Song Hwee Lim on Tsai Ming-

Liang. The week-long schools residency programme for 120 Lambeth 13 year olds in July created

dance, music, animation and film around Zhang Yimou's Not One Less (1999).

8,000 pupils of all ages visited the BFI as part of the schools’ programme to engage with film in

Modern Languages, English, and primary topics, as well as for Film and Media Studies. Finally, our

families’ programme of activity is now responding to demand by running mini film schools every

Saturday, monthly Fundays, and 6 weeks of holiday workshops every year, each one directly

related to our cultural programme

• EDUCATION LEADERSHIP AND ADVOCACY

The BFI is a leader in research, development, and innovation in learning. Following the

publication of Screening Literacy in 2013, the first Europe-wide survey of film education in Europe,

BFI was awarded European funding to lead a consortium of 20 agencies from across Europe to

create a Framework for Film Education: a model of film education to guide and support film

educators all over Europe. The Framework will be published in June 2015.

In January 2015, as part of the BFI's partnership with new online platform FutureLearn, the BFI

Film Academy and NFTS collaborated to deliver their first free course in filmmaking. Entitled

‘Explore Filmmaking: from Script to Screen,’ this MOOC (Massive Open Online Course) proved to

be extremely popular with more than 31,000 learners.

The BFI has a longstanding relationship with the Higher Education sector and in recent years has

developed partnerships with a range of universities to develop major research projects. In 2014-

15 the BFI was a partner in two projects which received funding from the AHRC: ‘Fifty Years of

British Music Video’ (with the University of the Arts, University of Portsmouth and British Library)

and ‘Transformation and Tradition in Sixties British Cinema’ (with the University of East Anglia and

the University of York). Both projects utilise our archival collections and the research will

contribute to our cultural programme.

We have been active participants in the joint DCMS/DfE Cultural Education Partnership Group,

provided evidence to the Warwick Commission Report on Enriching Britain: Culture, Creativity

and Growth, and worked with other stakeholders to secure the future of film and media studies

GCSEs and A Levels.

• BFI AUDIENCE FUND

The BFI Lottery Audience Fund was established to help deliver our objective of increasing the

size, diversity and geographic spread of audiences for a wider range of films. It consists of

five key elements:

BFI Film Audience Network (FAN)

The BFI Film Audience Network (FAN) is a major initiative developed to encourage arthouse,

independent and multiplex cinemas and other film organisations to work collectively through

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nine film hubs to bring diverse and exciting year round programme of film and events to

audiences throughout the UK.

The organisations leading the Film Hubs are: Broadway Nottingham and Cambridge Film

Trust; Chapter, Cardiff; Cornerhouse, Manchester; Film London; QFT (Queen’s Film Theatre),

Belfast; Regional Screen Scotland; the University of Brighton; Watershed, Bristol; and

Showroom Cinema Sheffield.

Throughout 2014 and 2015 these nine Film Hub Lead Organisations (FHLOs) have been

working collaboratively with partner organisations in their local areas and, together with the

BFI, to form a new FAN Strategic Leadership Group to ensure a joined-up UK wide approach.

FAN functions as a capacity building model – sharing expertise, knowledge and resources – as

well as promoting and delivering a wide-ranging film programme in a variety of contexts and

settings. Each FHLO has responsibility for co-ordinating activities at a regional level as well as

contributing to the success of the network at a UK national level.

This year was the first full year of operation and one which saw the nine hubs working

effectively as a network to deliver large-scale projects such as the BFI Sci-Fi 'Days Of Fear &

Wonder' season through 156 locations around the UK.

FAN is growing. Membership exceeded one thousand members this year, and admissions to

the FAN-related programme were triple that of the previous year.

BFI Neighbourhood Cinema

There are many people in the UK who can’t regularly get to the cinema. This may be due to

cost, or simply because their nearest cinema is too far away. This lottery funded intitative is

part of our strategy to develop better and broader access for film audiences wherever they

live.

BFI Neighbourhood Cinema is designed to help revitilising film at a community level, by

support existing community cinemas and film clubs to upgrade their screening facilities with

one-off grants for equipment or chairs.

Many of these clubs meet in village halls or community venues and typically screen films

around 8 to 12 times a year. The programme of each club is monitored, and in 2014-15

they were predominantly showing British or independent films.

In 2014-15 BFI Neighbourhood Cinema supported 10 touring cinemas under a Pilot Fund

for Touring Cinemas, with over 16,000 admissions across the funded touring projects, and

BFI Neighbourhood also supported 37 community cinema venues through the Equipment

Fund.

The Hayle Film Club in Cornwall were awarded their new chairs through the Equipment Fund,

and held a successful first night with local jazz singer Kris Gayle at a sold-out screening of

Gone Girl at the Passmore Edwards Institute on Valentine's Day.

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The Distribution Fund and the Programme Development Fund

We use the Distribution Fund and the Programme Development Fund to support ambitious

and dynamic new film releases and programme initiatives that help to reach wider audiences

across the UK.

The Distribution Fund supports UK distribution companies to think more expansively about

how they could release key titles, including across Video-On-Demand platforms, and we

supported a wider release of several significant British and international films including Ida,

’71, Lilting, Love Is Strange, Two Days One Night, Dior & I and The Wind Rises.

The Programme Development Fund is primarily intended to operate in tandem with

innovative programme ideas from members of FAN, and supported 26 projects this year,

including large scale public screenings for the BFI Sci-Fi season at the Eden Project in

Cornwall, Jodrell Bank in Cheshire, and Bletchley Park in Buckinghamshire.

The number of screening locations showing Programme Development Fund supported

programmes rose by an incredible 951%, leading to an audience growth of 227%.

Film Festival Fund

The BFI has allocated Lottery funding of £1 million per year, for the four years from 2013-

2017, to the Film Festival Fund. As part of the Audience Fund, the Film Festival Fund supports

festivals which provide audiences across the UK with a greater film choice, as well as

increasing audiences for specialised and independent British film.

In February 2015 we announced that the Film Festival Fund will no longer have deadlines and

applications will now be accepted on an ongoing basis for the final two years of the

programme. This better facilitates charities, trusts and other not-for-profit organisations

seeking funding to support their film festival, whether it is taking place regionally or is UK

wide, as they are no longer limited to two funding rounds per year.

In 2014-15, the BFI supported 39 festivals across the UK, and of many shapes and sizes,

including several newer festivals such as Mayhem X (Nottingham), a new element within

Borderlines to support British Cinema (Hay on Wye), Derby Film Festival and London Comedy

Festival (LOCO).

Admissions to supported Festivals increased by 15% overall, with some growing by over 30%

(notably Edinburgh International Film Festival and London Indian Film Festival).

The Film Festival Fund touched a wide range of festivals, from young audiences to horror,

comedy, adaptation, documentaries, celebrations of deaf culture, African, Asian, Jewish

cultures, cross platform and public festivals. A number of the festivals also took place in

under-served and geographically isolated areas. Of particular note was Borderlines which

took place across the rural hinterland of Shropshire and Herefordshire, and which has now

joined forces with the Festival of British Cinema to further increase audience choice.

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• BFI DIGITAL

A year on from its launch, BFI Player received a dramatic make-over, making it even easier for

UK audiences to enjoy a diverse range of films. Following an in-depth consultation with 1,000

BFI Player users, the design, layout and curation of films was significantly enhanced.

Along with its new look, BFI Player now features an even wider range of content, including

films from Universal Pictures, Pathe and eOne Momentum. Throughout Autumn-Winter 2014

BFI Player was dedicated to Sci-Fi with a collection that included well-known blockbusters

such as Flash Gordon, to lesser-known but highly-regarded classics such as The Day the Earth

Caught Fire. This year will see a focus on an exciting new interface to deliver the ‘Britain on

Film’ project and the launch of BFI Player on a greater range of platforms and devices. At the

end of its first 12 months of activity (October 2014), BFI Player had delivered almost a quarter

of a million views.

Elsewhere, the BFI’s YouTube channel was overhauled with a simplified structure, better

content sign-posting and improvements to discoverability. As a result, traffic grew by 70%

from 2.1m views in 2013-14 to 3.6m views in 2014-15. We aim to continue steep growth in

our YouTube traffic this year as the ‘Britain on Film’ heritage project begins to execute.

The backbone of the BFI’s digital offer remains our core website, bfi.org.uk. This also grew

significantly in 2014-15, up to 12.4m visits – a 40% increase on the previous year. Growth

here was driven by continued improvements to our content offer for a wide range of

audiences exploring film and film culture, along with a focus on greatly-improved search

engine optimisation.

• THE BFI CULTURAL PROGRAMME

We aim to offer innovative, landmark programmes and a rich and diverse range of programming

across all our platforms, cementing the BFI’s role as one of the world’s great film and TV

collections and bringing audiences a real choice of voices from across the world, past and present.

Dynamic partnerships with FAN, BBC, British Council, and a wide range of rightsholders and

cultural partners UK and worldwide are critical to extending audience reach.

A key element of our strategy has been to develop an annual blockbuster, developed with

partners across the UK, re-appraising themes and genres which we hope will confound audience

expectations and thereby engage audiences new to the BFI, allowing us to develop our

international cultural diplomacy work around at least one major annual touring programme. A

core ambition of any blockbuster is give access to the collections of BFI National Archive, telling

new stories about British film and television.

Sci-Fi: Days of Fear and Wonder

The third in our series of blockbusters was this three month celebration of cinema’s most

spectacular genre, with more than 1000 screenings of classic films and television programmes,

special events and guests at over 200 locations across the UK and on BFI Player, DVD and Blu-ray,

this was our largest and most ambitious season ever.

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Our expectations were exceeded with 23% of the UK public aged 16-64 saying they had heard of

our Days of Fear and Wonder season and 33% of all attenders having never been to a BFI event

before. 99% of attenders said they would be likely to attend similar seasons organised by the BFI,

and 50% said they were encouraged to find out more about the BFI in general. 45% of all

attendees were aged between 5-35 - much younger age group than we have engaged previously.

Core to the strategy of working with widest possible range of venues across the UK was the re-

release of Ridley Scott’s Director’s Cut of dystopian masterpiece Blade Runner (1982) and a

nationwide re-release of Stanley Kubrick’s visionary 2001: A Space Odyssey (1968), which alone

reached audiences of more than 65,000 across 170 UK venues. We secured a host of special

guests, including the film’s stars Gary Lockwood and Keir Dullea and a great panel which included

Professor Brian Cox.

As well as cinema programmes across the UK, spectacular big screen Sci-Fi screenings took place

at some of the UK’s most iconic locations, including at The British Museum, Bletchley Park, the

Eden Project, and a special screening of the Village of the Damned (1960) in the square in H.G.

Wells’s home town of Midhurst, West Sussex. The stand out event was Watch the Skies! at Jodrell

Bank Observatory, where ecstatic audiences of more than 1000 people enjoyed sci-fi films

beneath spectacular Lovell telescope projections. The event also included a discovery fair, which

included demonstrations of the Oculus Rift Virtual Reality headset, and a special infra-red camera,

similar to the huge ones used to look into deep space.

We extended UK-wide reach with more than 50 key titles available on BFI player, a special Sci-Fi

selection on YouTube and in our eight UK-wide partner Mediatheques, exclusive BFI DVD and

Blu-ray releases including the long-awaited BBC TV series Out of the Unknown (1965–1971), and

the DVD premiere of Nigel Kneale’s 1954 adaptation of Nineteen Eighty-Four; and we worked

closely with the BBC to open new opportunities for television and radio audiences to explore

science fiction with the landmark BBC2 four-part series, Tomorrow’s Worlds.

The BFI National Archive presented restorations of classic Sci-Fi titles, including the first ever

British Sci-Fi feature film, A Message from Mars (1913), as well as the classic The Day the Earth

Caught Fire (1961), which was supported by Simon W. Hessel, and mounted an exhibition which

included the original costume designs, photographs, posters and publicity material for films

including ground breaking titles Metropolis (1927), and Things to Come (1936).

Previews and special events with guests were an important element of the programme in drawing

in new audiences: on 7 August 2014, following its World Premiere in Cardiff earlier that day, BFI

Southbank hosted the London Premiere of the first episode of the eighth series of BBC1’s highly

anticipated Doctor Who, with the 12th Doctor, Peter Capaldi in attendance; and an exclusive

preview of the The Hunger Games: Mockingjay (2014) and the world premiere of Filmed in

Supermarionation (2014). A major highlight was ‘Inside Afro Futurism’, which included an on-

stage interview with Afrika Bambaataa. Other special guests included Dr Adam Rutherford and

Professor Brian Cox speaking about The Arecibo Message at a screening of Contact (1997),

filmmaker Mike Hodges and a wildly comic Brian Blessed in attendance at the screening of Flash

Gordon (1980), Sonic Cinema’s performances with hip-hop superstar DJ Yoda and the creators of

the Dr Who theme tune; and a career interview with William Gibson, cult novelist and early

predictor of the internet through his conceptualisation of ‘cyberspace’.

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The season saw the publication of the definitive BFI Sci-Fi Compendium (our best selling

blockbuster compendium to date), lavishly illustrated with contributions from world authorities

on sci-fi, including the visionary Douglas Trumbull, responsible for the look of some of the

greatest sci-fi classics ever, from 2001: A Space Odyysey (1968), to Close Encounters of the Third

Kind (1977) and Blade Runner (1982,) as well as director of the cult sci-fi title, Silent Running

(1972). In partnership with Palgrave Macmillan we published a set of nine new special edition BFI

Film Classics, written by high-profile film critics and academics.

Electric Shadows: China and UK Film Celebration 2014

In March 2015 HRH Duke of Cambridge presented one of the first films of China to survive

anywhere in the world, Nankin Road, Shanghai (1901) from the BFI National Archive, to the

President of the China Film Corporation. The film is a unique portrait from 115 years ago of what

is still Shanghai’s busiest shopping street (now known as Nanjing Road 南京路).

The presentations were part of an ongoing journey of cultural and industrial exchange between

the BFI and China which has been in preparation for 3 years, commencing with hugely successful

presentations across China in 2013 of the BFI’s restorations of Alfred Hitchcock’s silent British

films and a year-long programme of activity with China in 2014: Electric Shadows: A Century of

Chinese Cinema.

Electric Shadows ran from June to October 2014, in partnership with Toronto International Film

Festival, showcasing more than 80 films - the first time in more than 30 years that there had been

any major programme of Chinese film in the UK. We worked closely with the China Film Archive

as no films have ever been licensed to the UK for distribution and as a result we were able to

present the great classic of Chinese cinema, Spring in a Small Town (1948) UK-wide in 50 cinemas,

on DVD and on BFI Player, present a restoration of the silent classic The Goddess (1934) during

the 2014 edition of the BFI London Film Festival with live orchestra, and then on DVD, and tour an

the programme from the China Film Archive to FAN cinemas across the UK.

Our biggest coups were to include a tribute to Feng Xiaogang, China’s most popular filmmaker.

Feng attended the retrospective and a packed on-stage career interview. Similarly, the great

Jackie Chan proved immensely popular with audiences, with a capacity Chinese-British audience

turning out to see him. Out of many education events, a week-long schools’ residency

programme for 120 Lambeth 13 year olds in July created dance, music, animation and film around

Zhang Yimou's Not One Less (1999).

The accompanying publication is an accessible introduction to the long and illustrious history of

Chinese cinema from the early silent films to Shanghai’s Golden Age, the Cultural Revolution and

‘Fifth Generation’ films of the 1980s, through to the wildly-popular ‘wuxia’ swordplay epics and

kung fu spectacles.

This programme was made possible thanks to Main Sponsor Lycamobile, and Season Sponsors

Shangri-La Hotels and Resorts, and Cathay Pacific Airways; all first time sponsors of the BFI.

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• TELEVISION IN THE CULTURAL PROGRAMME

Programming from the television collections of the BFI National Archive can be accessed for

research through the BFI Reuben Library and in nine mediatheques across the UK – where

television programmes form 40% of the 2,700 titles on offer. Television forms an important

standalone strand in BFI Southbank’s programme and is a key element of our major seasons and

our DVD label offer, but we will be seeking new partnerships with the performers’ unions in the

coming business year to be able to build television into our BFI Player offer. With our celebration

of ‘10 Years of YouTube’ at BFI Southbank, we are beginning to develop our programme beyond

broadcast TV.

On the 20th anniversary of his death Our major TV focus this year was dedicated to the entire

canon of work of the late Dennis Potter - Britain’s greatest TV writer - and included an all day

screening of his masterpiece, Pennies from Heaven (1978).

The standout TV event of the year TV was a career interview of the great US documentary

filmmaker Ken Burns, interviewed by Lord Puttnam and followed by a preview of Burns’s latest

film for PBS, The Roosevelts, An Intimate History (2014).

Our regular programme dedicated to highlighting the work of women in the TV industry focused

on the work of the TV director Moira Armstrong and on Jenny Barraclough, and we celebrated the

50th anniversary of The Wednesday Play with a season of very rare and little known plays from

the series, and aim to make all of these available in BFI mediatheques UK-wide.

Our Missing Believed Wiped strand achieved a major press scoop with the discovery in the David

Frost Archive of lost episodes of The 1948 Show, securing John Cleese to introduce them.

We celebrated BBC2’s 50th anniversary with Alan Yentob interviewing Sir David Attenborough.

Highlights of our TV previews included the BAFTA winning Marvellous (2014); Wolf Hall (2015)

with director Peter Kosminsky, Claire Foy and writer Hilary Mantel; Sky Atlantic’s most ambitious

drama to date, Fortitude (2015); Poldark (2015) with writer Debbie Horsfield, director Ed

Bazalgette, and cast Eleanor Tomlinson and Aidan Turner - rebooted after 30 years for a new

generation and now once again one of most popular dramas of recent times.

Core Programme

We aim to be able to give access to our programme on all platforms. As well as the Sci-Fi

blockbuster, and our major focus on Chinese cinema, we ensured that audiences all over the UK

enjoyed key elements of our programme via the BFI Player VoD platform, YouTube, DVD

releases, partner Mediatheques, UK-wide theatrical releases and through partnering FAN.

Key elements of our programme this year were a major retrospective of the legendary Japanese

animation company, Studio Ghibli, focussing on the work of the great Hayao Miyazaki, whose

Spirited Away (2001) remains the most successful anime film ever; a focus on women in film and

TV, looking at the careers of Maggie Smith and Katharine Hepburn, and marking the death of

Vera Chytilova with a retrospective of the work of this pioneer of Czech cinema; This is Now: Film

and Video After Punk, provocative films made by art students, clubbers and members of the

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industrial and New Romantic subculture scenes of the early 1980s; Live Fast, Die Young

celebrated movie icon James Dean, and we also mounted a small Dennis Hopper season; a survey

of Hollywood talkies made before the censorious Production Code came into force in 1934 was a

very popular season. We marked the centenary of World War One with a wide-ranging series of

programmes of key films, archive television dramas, and archival discoveries with a dedicated

collection of films available on BFI Player and UK-wide cinema releases including the newly

restored version of A Farewell to Arms (1932).

Internationally renowned Polish film director Walerian Borowczyk, and perennial comedy

favourites, the Marx Brothers and Jacques Tati brought huge audiences. Overall we were thrilled

to maintain an annual average occupancy of 50% in our cinemas, and really start to build

audiences for archival film on BFI Player.

Guests speaking on stage at BFI Southbank alongside preview screenings and events are simply

too numerous to mention, but essential to drawing in new audiences. This year we had a massive

range of people, from directors from Richard Ayoade to writers Hossein Amini and Steven

Moffatt; talent manager extraordinaire Shep Gordon; outstanding British producer Jeremy

Thomas; the great Angela Lansbury, Peter Fonda presenting Easy Rider, and the peerless,

legendary Al Pacino - accepting a BFI Fellowship, our highest accolade in recognition of an

outstanding contribution to film and television culture.

• THE BFI LONDON FILM FESTIVAL IN PARTNERSHIP WITH AMERICAN EXPRESS®

The 58th BFI London Film Festival (LFF) in partnership with American Express®, closed on 18

October with the European Premiere of Fury and announced the highest ever attendance in the

Festival’s history, with a 163,300 audience turnout (151,000 in 2013, 149,000 in 2012), and an

additional UK-Wide audience of over 12,000.

The Festival offered audiences a rich and diverse selection of films and events introducing the

finest new British and international films to an expanding London and UK-wide audience. It

screened a total of 248 fiction and documentary features, and secured 18 World Premieres, 9

International Premieres, and 35 European Premieres, offering screenings from 70 countries.

We were delighted to welcome back main sponsors Accenture celebrating their third year with

the Festival supporting Whiplash as their Gala film. Long time Festival supporters Renault and the

May Fair Hotel joined with us to host the wealth of British and international talent in London for

the duration of the event. We also welcomed new partners, IWC Schaffhausen, Virgin Atlantic,

Mia wines, Drambuie and DJI to the festival family: we are very grateful for their support.

The Festival is essential in promoting London as the world’s leading creative city. It welcomed

772 filmmaker guests over half of whom came from international territories. Opening and Closing

Night both received simultaneous screenings to 50 cinemas collectively across the country, with

the red carpet action shown via satellite link, as part of the Festival’s ongoing commitment to put

the UK audience at the heart of the Festival-going experience. This year for the first time Opening

Night, in partnership with American Express, was live streamed online for fans everywhere, with

over 16,500 views on the day. In addition there were 70 nationwide screenings of the

Documentary Special Feature of Citizenfour.

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The Best Film award in Official Competition went to Andrey Zvyagintsev for Leviathan; with a jury

commendation for Celine Sciamma’s Girlhood. The long-standing Sutherland Award for the First

Feature Competition was presented to Myroslav Slaboshpytskiy, for The Tribe; with a jury

commendation for Naji Abu Nowar’s Theeb. The winner of the Grierson Award in the

Documentary Competition was Ossama Mohammed & Wiam Simav Bedirxan, directors of Silvered

Water, Syria Self Portrait. The Best British Newcomer award went to Sameena Jabeen Ahmed, the

lead actor in Catch me Daddy. At the Awards ceremony British director Stephen Frears received a

BFI Fellowship, presented by Sir David Hare; the fellowship is the highest accolade the BFI can

bestow.

The Battles of Coronel and Falkland Islands

This dramatic reconstruction of two decisive naval battles from the Great War is one of the

finest films of the British silent era. This stirring film was restored by the BFI National Archive

and was presented with a newly commissioned score composed by Simon Dobson and

performed by The Band of Her Majesty’s Royal Marines. This was a standout event in the

festival, with sailors lining the Waterloo Bridge to guide guests to and from the screening.

After its premiere at this year’s BFI LFF and its simultaneous BFI Player and theatrical release,

it was released on both DVD and Blu-ray.

Restoration supported by Matt Spick. Archive Gala and Score supported by Arts Council England, the Band Service Amenities Fund, the Gosling Foundation, the Hartnett Conservation Trust, PRS for Music Foundation, the Royal Navy and the Charles Skey Charitable Trust.

• BFI FLARE: THE BFI LONDON LGBT FILM FESTIVAL

The 2015 edition of BFI Flare: London LGBT Film Festival took place between 19–29 March 2015 at

BFI Southbank and was once again supported by principal sponsor Accenture. BFI Flare is the UK’s

leading LGBT film event and one of the world’s longest established.

Direct from premieres at Sundance and Berlin Film Festivals, the Festival opened with the UK

Premiere of I Am Michael. As evidence of the strength of documentary work in this year’s Festival,

Closing Night featured the European Premiere of director Malcolm Ingram’s Out to Win, charting

the experience of LGBT sportspeople working in the highest echelons of professional sport. The

Centrepiece Screening was the UK Premiere of Stories of Our Lives, directed by Jim Chu Chu, a

drama adapted from real testimonies of LGBT Kenyans (where the film is banned for promoting

homosexuality). Our special screening in partnership with returning and long term supporters of

the Festival, the Interbank LGBT forum was Match, directed by Stephen Belber, a poignant drama

starring Patrick Stewart about the role we play in other people’s lives.

The inaugural BFI Flare Mentorship programme in association with Creative Skillset was launched

This mentorship programme offers five emerging LGBT filmmakers from the UK the opportunity

to develop industry knowledge, professional connections, their passion for cinema and an

overview of LGBT features entering the marketplace.

A unique partnership between BFI Flare and the British Council made five LGBT short films

available for free to global audiences on BFI Player as part of the ground-breaking

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#FiveFilms4Freedom LGBT human rights initiative. The films were the most popular titles on BFI

Player for the duration of the festival and were watched in an extraordinary 137 countries,

including many countries where LGBT people face persecution. Local and grassroots organisations

worked with British Council offices and Embassies globally to promote the initiative.

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STRATEGIC PRIORITY TWO

SUPPORTING THE FUTURE SUCCESS OF BRITISH FILM BY INVESTING IN FILM DEVELOPMENT,

PRODUCTION, TALENT AND SKILLS

• DEVELOPMENT AND PRODUCTION

2014 was a standout year for British film, with records broken at the box office and

suggestions of a “new wave”, and many of the feature films and filmmakers developed and

supported by the BFI through lottery funding have contributed to this success.

We measure the success of our funding for films in several ways: helping to discover and

establish new talent such as Clio Barnard (The Selfish Giant), Yann Demange (’71), Carol

Morley (The Falling), and Destiny Ekaragha (Gone Too Far); backing creativity and risk-taking

on projects such as Jonathan Glazer’s Under The Skin, Jane Pollard and Iain Forsythe’s 20,000

Days On Earth and Peter Strickland’s The Duke Of Burgundy; festival and awards success for

short films, features and their filmmakers; and the audience appeal of films such as Mike

Leigh’s Mr Turner and Matthew Warchus’s Pride.

We are proud of the filmmakers we’re able to support. BFI-backed films still to be released in

2015, including Ben Wheatley’s High Rise, Yorgos Lanthimos’ The Lobster and Andrew Haigh’s

45 Years, all set a high benchmark for creative filmmaking. Both Ben Wheatley and Joanna

Hogg are being championed by Martin Scorsese.

British Films – including those supported by the BFI – feature prominently and consistently at

international film festivals. Four BFI-backed films played at the Sundance Film Festival in

January 2015, winning a number of awards in the World Documentary and World Dramatic

Competitions. John Maclean won the Grand Jury Prize for his first feature, Slow West, and

Louise Osmond’s Dark Horse – which successfully bid for funding during the Film Fund’s first

ever documentary pitching sessions at the 2013 Sheffield Doc/Fest won the Audience Award

in the World Documentary competition, whilst Jerry Rothwell’s How to Change the World

won the Best Editing prize.

Sundance also hosted the eagerly awaited premiere of director John Crowley’s film

adaptation of Colm Tóibín’s 1950s set drama, Brooklyn, also supported by the BFI. Written

for the screen by Nick Hornby and with a cast that includes Saoirse Ronan, Domhnall Gleeson,

Jim Broadbent and Julie Walters, Brooklyn sold during the festival to Fox Searchlight, who

took worldwide distribution rights in one of the biggest sales deals ever done at Sundance.

In February 2015 Andrew Haigh’s 45 Years played in Competition at the Berlinale, drawing

some of the best reviews of the festival and ultimately winning two Silver Bears for actors

Charlotte Rampling and Tom Courtenay.

Later that month, films supported by the BFI were well represented at the BAFTAs. Three of

the six 2015 BAFTA-nominees for Outstanding British Film were supported by the Film Fund:

Pride, Under The Skin and ’71. Pride also won a Best Debut BAFTA for its writer Stephen

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Beresford and Producer David Livingstone and Mr Turner was nominated for several BAFTAs

and Academy Awards.

• DIVERSITY

In July 2014 we renewed our commitment to diversity across the film industry, with new

requirements introduced to ensure film productions supported with Lottery funding

through the BFI Film Fund reflected and represented the diversity of the UK.

The new ‘three ticks’ approach, which is backed by UK producers’ association PACT, was

implemented for all productions supported through the BFI Film Fund from 1 September

2014, and will be adapted and rolled out across all BFI Lottery funding during 2015. A

Diversity Manager has been recruited to support the introduction and implementation of the

new guidelines and provide guidance to BFI-backed productions and the wider industry.

Projects are independently assessed against the three ticks criteria by the BFI’s Certification

Unit and applicants are required to demonstrate commitment to diversity across three areas

of their production, ranging from the make up of the workforce to the stories and characters

on screen, with at least one tick needed in a minimum of two areas for a project to be eligible

for BFI production funding:

On-screen Diversity

Where the storytelling, themes and characters positively reflect diversity;

Off-screen Diversity

Where a number of the key creatives (director, screenwriter, composer, cinematographer),

and Heads of Department, production crew and production company staff positively reflect

diversity;

Creating Opportunities and Promoting Social Mobility

Where a production provides paid internships, training placements and employment

opportunities for new entrants from diverse backgrounds.

We hosted a number of industry roundtables to talk in more detail about the requirements

and impact of the new guidelines, as well as some of the broader challenges associated with

broadening the diversity of audiences, filmmakers and the wider UK film workforce. We will

continue these discussions into 2015 and beyond as we adapt and roll out the principles of

these guidelines to the rest of our direct and funded activities.

• SUPPORTING FUTURE FILMMAKING

The BFI NET.WORK launched in September 2013 and represented a significant shift towards a

truly UK-wide support for talent development. The NET.WORK connects the UK's film

agencies to offer hands-on and holistic development opportunities for promising UK writers,

directors and producers who are yet to make their first feature. With an annual budget of

over £3m from the BFI Film Fund, we are working with partners including Creative England,

Creative Scotland, Film Agency for Wales, Northern Ireland Screen and Film London to

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establish a joined-up network of experienced development teams across the UK. We also

offer support for disabled filmmakers through our partnership with 104 Films.

Some examples of the NET.WORK’s films in the first full year include:

• Emotional Fusebox, a Creative England-backed short film by Rachel Tunnard, which is now

being made into her first feature;

• Boogaloo & Graham, a Northern Ireland Screen-backed short film by Michael Lennox

which won the BAFTA for Best Short this year and is also Oscar-nominated. Michael is now

making his first feature, A Patch Of Fog, through our First Features funding;

• Three Brothers, a BAFTA-nominated film written and directed by Aleem Kahn and funded

through London Calling Plus, Film London’s first BAME-focussed short film scheme

In November 2014 we partnered with Aardman Animation - the studio behind Wallace &

Gromit and Shaun The Sheep - to launch a new Lottery scheme designed to support the

development and production of new animated feature films and the creative talent who are

making them. We are providing funding for two years to three filmmaking teams, to develop

their projects with dedicated development support through the BFI Aardman Animation

Development Lab. The process for developing animated feature films is lengthy and

expensive limiting the opportunities for British filmmakers. Aardman will work with the

filmmakers – animators, writers, directors, producers – to shape their ideas with the aim of

emerging with a set of ‘greenlight’ materials for their films, ready to advance to production.

We are also continuing to support a number of low budget filmmaking schemes: Microwave,

Film London's low budget feature filmmaking scheme – which produced Hong Khaou's

critically-acclaimed Lilting, that opened BFI Flare in 2014 following its critical success at the

Sundance Film Festival 2014; iFeatures, through Creative England, which most recently

produced Guy Myhill’s The Goob; and Cinematic, Film Agency for Wales’ emerging talent

scheme to support emerging filmmaking talent from Wales in making feature films with

budgets of around £300,000.

• BFI FILM ACADEMY

Three years ago the BFI created its Film Academy specifically to provide opportunities for talented

young people aged between 16-19 to develop new skills and build a career in film, no matter

where they come from or what their background is. Since then, we have awarded places to more

than 2,400 aspiring young filmmakers. We now have 44 courses across the UK, and 6 specialist

week-long residential programmes for 160 filmmakers that cover animation, documentary,

screenwriting and visual effects and a two-week craft skills residential programme at the National

Film and TV School for 66 young filmmakers. We are very proud of our progress in the field of

diversity too, with more than three quarters of our courses located outside of London, and a third

of the participants from BAME communities, 8% were disabled, while 12% received free school

meals. We also offer bursaries and allowances to ensure the courses are available to everyone.

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The graduation event for the two week craft skills residential at the National Film and Television

School was held at BFI Southbank on 17 April. During the two week course 66 participants worked

together to make six excellent short films under the tuition of industry experts. In addition to

making a short film, students attended a series of masterclasses with top auteur and commercial

filmmakers and learn a craft specialism, such as cinematography or sound. To ensure that

graduates are supported we also developed an alumni programme which includes paying for all

graduates to receive BFI Sight & Sound and linking them with wider BFI work. We were all thrilled

when The Fall a short-film made by BFI Film Academy at Cornerhouse in Manchester was selected

as part of the closing night of BFI Flare: London LGBT Film Festival.

In September 2014 the BFI Film Academy won bronze in the National Lottery Awards for

Education out of a total of 750 entries in this category. This award was the culmination of a great

month as an evaluation report on the second year of operation demonstrated that 86% of the

second year participants have kept in touch or collaborated with the people they met on the

course. Most gratifyingly, the report demonstrated a direct link between participation in the

Academy and employment with 7% of students finding work in film. Participant satisfaction was

also very high with 90% highly satisfied and a further 4% satisfied.

We are now focused on the need to help some of our alumni take their next steps on the ladder

of progression. BFI Film Academy is working with Creative Skillset to match creative and talented

young people, who have completed BFI Film Academy residential training courses, with

companies to progress their skills and gain valuable industry experience. Paid a training allowance

at living wage, trainees commit to up to 12 weeks working in their chosen field.

• SUPPORT FOR COMPANY GROWTH

In 2014 work continued for the successful companies who were recipients of the Film Fund’s

Vision Awards. The awards were designed to provide successful companies with a level of

financial and creative autonomy to assist them in developing their slate of film projects, as

well as giving them the opportunity to grow their businesses and bolster their company

profile both nationally and internationally. The BFI pledged eleven awards of up to £50,000

per year (recipients were Blue-Zoo Animation, Flickerpix, Fly Film, Forward Films, Inflammable

Films, JW Films, Origin Pictures, Rainy Day Roast Beef Productions, Stray Bear Films and Third

Films) and eight awards of up to £100,000 per year (42 M&P, Cowboy Films, Independent,

Lupus Films, Nexus Productions, Passion Pictures and Red Box Films, Warp Films, Wildgaze

Films). Of the companies awarded, six are based outside London, eight are female led

companies, and for the first time – and in acknowledgement of new opportunities afforded

by the recently introduced UK tax credit for animation – four are animation studios.

In addition, Creative England's Film Enterprise fund continued to invest £2m over four years

to improve the growth and sustainability of film-related businesses in England outside of

Greater London.

• DOCUMENTARIES

Documentary filmmaking continues to thrive around the world, and we are proud to be a

major support of UK theatrical documentaries. In 2014 we supported new feature

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documentaries through our pitching sessions, which are held in partnership with the UK’s

leading documentary festival, Sheffield Doc/Fest, in Sheffield and London, including:

Sophie Fiennes’s Grace Jones – The Musical of My Life, co-produced with James Wilson and

Katie Holly, reaches beyond the iconic mask to create a cinematic journey into the private and

public worlds of Grace Jones; Robert Cannan and Ross Adam’s The Lovers and the Despot,

produced by Natasha Dack, details the bizarre love story of a celebrity director and actress

kidnapped by movie-mad North Korean leader Kim Jong-il and forced to make films in the

communist state;

Iain Cunningham’s Irene’s Ghost, produced by Rebecca Mark-Lawson, is a part animated

feature documentary that follows the moving journey of the filmmaker to build a picture of

the mother he never knew, and David Evans’ My Nazi Legacy, written by renowned human

rights barrister Phillipe Sands and produced by Amanda Posey and Finola Dwyer, is a

remarkable film about the inherited guilt of two men whose fathers were involved in the

persecution of Jewish people during the holocaust and which premiered at the TriBeCa film

festival in 2015.

• INTERNATIONAL STRATEGY

Led by the BFI with delivery support from China Britain Business Council (CBBC), a delegation

of UK film industry professionals travelled to Beijing in April 2014 to participate in the 4th

Beijing International Film Festival (BJIFF) and undertook an extensive programme of events

and meetings as part of the first major UK film industry mission to China. During the visit 12

leading British talent agents, producers, distributors, film sales companies, exhibitors, and

representatives from the BFI, the British Film Commission and BBC Worldwide met with

representatives from China’s film industry to explore opportunities for building creative and

business partnerships between the UK and China.

The delegation fulfilled key objectives of the BFI’s international strategy, which has identified

China as a priority territory for the UK film industry offering opportunities across co-

production, export and cultural exchange to drive growth, creatively, culturally and

commercially and where there is a need to build relationships, overcome trade and

regulatory challenges, grow market and cultural knowledge on both sides in order to create

opportunities for UK films, talent and expertise. China is now the second largest theatrical

market in the world growing at 35% each year and achieving box office revenues last year of

$3.6bn.

In the week following the delegation’s visit, a landmark film co-production treaty between

the UK and China was signed by Minister of State for Culture and the Digital Economy, Ed

Vaizey and Vice Minister Tong Gang of the State Administration of Radio, Film & Television

(SARFT), under the auspices of the UK China High Level People to People Dialogue. The Treaty

was formally ratified in March 2015.

The treaty, which was negotiated for the UK by the BFI with support from the DCMS and FCO,

will allow qualifying co-productions to access national benefits including sources of finance

and easier access to theatrical distribution in China. In the UK this includes the Film Tax Relief

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and the BFI Film Fund. Eligible co-productions will not be subject to China’s quota on foreign

films, which only permits a limited number of non-domestic titles to be shown in Chinese

cinemas each year.

The BFI undertook a second delegation to China in March 2015 to allow a second set of

leading film industry representatives to build their understanding of the Chinese market and

its key players, and explore opportunities for cultural and creative exchange, collaboration

and business growth. Moreover the BFI joined the GREAT Festival of Creativity Shanghai from

2-4 March, organised by the GREAT Britain campaign and UK Trade & Investment (UKTI),

contributing to the programme and aligning the film delegation with the dates of the GREAT

Festival before travelling to Beijing, which is the main business centre for the film industry

and its associated officials in China.

A Film Collaboration panel discussion, chaired by BFI CEO Amanda Nevill and including UK

producer David Heyman (Paddington, Gravity, Harry Potter) and Chinese President of the

Shanghai Film Group Ren Zhonglun, explored how British and Chinese filmmakers can work

together in driving economic growth and creative success. A second panel, Chaired by

Pinewood China CEO, Andrew M. Smith, including President Zhanghong Hu, Wanda Group;

Iain Smith, Chairman, British Film Commission; Ivan Dunleavy, CEO, Pinewood Group plc and

the President of China Film Co-production Corporation Miao Xiaotian, examined how to make

the dream a reality, through the production and post-production process, and a workshop

with Framestore. Presentations during the festival of rare films from the BFI National Archive

celebrated the rich history of Shanghai and saw China’s cultural heritage and the industrial

potential of film showcased side by side.

Co-production Treaty Updates

China

As above, the UK – China film co-production treaty was signed on 23 April 2014 and ratified in

March 2015.

Brazil

Further to the signing of the Brazilian treaty in 2012, we await completion of

constitutional procedures in Brazil and the UK , in order that the treaty can be ratified and

brought into force.

• THE BRITISH FILM COMMISSION

In 2014-15 the BFI renewed its commitment to funding the British Film Commission to deliver

the UK’s inward investment strategy for film, focussing on the US. Strategic objectives,

activity plan and Key Performance Indicators for the term of Film Forever were set and agreed

with Film London.

The British Film Commission works with the production and locations services teams at the

funded agencies across the UK including Creative England, Creative Scotland, Film Cymru,

Film London and Northern Ireland Screen and a network of film offices and local authorities

to facilitate and source locations, studios, facilities and crew.

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The BFC is the ‘front door’ for promotion of the UK as an inward investment destination,

working with the network of national and regional agencies to ensure a co-ordinated

approach and also that inward investment opportunities are disseminated equally across the

UK.

• EXPANDED ROLE FOR THE BFI FILM CERTIFICATION UNIT

The BFI Film Certification Unit is responsible for certifying films, high-end television,

animation programmes and video games as British either under the relevant sector Cultural

Tests or (for film and television projects only) as official co-productions under one of the UK’s

eleven bi-lateral treaties or the European Convention. It is also responsible for promoting the

tax reliefs to potential applicants so that the BFI can maximise the impact of the screen

industry tax reliefs.

During 2014-15 the Certification Unit processed a record number of applications.

666 film applications were received with 201 interim certificates/approvals made and 226

final certificates/approvals issued. 90 European Certificates of nationality that assist

filmmakers distributing films in European territories were issued. The Unit has assessed 115

high-end television applications and issued 67 interim certificates and 42 final certificates.

The Unit has assessed 59 animation applications, issuing 36 interim certificates and 24 final

certificates.

In April 2014, the BFI Certification Unit took on the certification function for the new tax relief

for video games. 52 video games projects received interim certification and 22 received final

certification from the Unit.

The Unit took on the certification function for Children’s television tax relief from 1 April

2015.

The Certification Unit also participated on several panels and presentations around the UK to

provide advice on and promote the new reliefs.

Since September 2014, the Certification Unit has been independently assessing the 3 Ticks

diversity criteria for projects applying for production funding from the BFI Film Fund.

• BFI VIDEO GAMES DAY

Leading figures from the UK’s video games sector gathered at BFI Southbank on 26 November

for the first BFI-hosted Video Games Day. Organised by the BFI Certification Unit, the day saw

over 130 delegates representing games companies from across the UK to learn more about

the benefits of the new games tax relief and how video games companies could access it.

Panel sessions and presentations from a range of experts and funders covered topics

including access to finance, diversity, culture and representation, and the education and skills

development support available to the sector.

27

The event opened with a keynote address from Ian Livingstone CBE; Co-Founder of Games

Workshop, the Government’s Creative Industries Champion and Co-author of Next Gen

Review, and closed with a keynote address from BFI Governor and founder of Revolution

Software, Charles Cecil CBE.

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STRATEGIC PRIORITY THREE

UNLOCKING FILM HERITAGE FOR EVERYONE IN THE UK TO ENJOY BY INVESTING IN

PRESERVATION, DIGITISATION, INTERPRETATION AND ACCESS

• UNLOCKING FILM HERITAGE

The BFI’s Unlocking Film Heritage (UFH) programme was established in 2013 and has already seen

colleague archives and key specialist collections across the country undertaking new programmes

of work and digitisation, revolutionising the technical range of our abilities, establishing new

digital and cataloguing standards. £5 million will be made available over a three year period

through an award of National Lottery funding to the BFI to fund the digitisation of 10,000 titles.

• THE NATIONAL CATALOGUE AND THE BFI COLLECTIONS INFORMATION DATABASE

A major benefit of the project is the establishment of a National Catalogue of British Film, with

every film listed being given a unique entry in the Entertainment Identifier Registry (EIDR) using a

new international standard for film cataloguing.

The exciting news is that in 2014-15 we identified that there were 16,690 film works made in the

UK and these are now in the Filmography: feature length, theatrically released, mainly fiction

works, with at least one production company based in UK (so it includes international co-

productions). Of those, 7,483 (44%) are now registered with EIDR as unique works and we will

have included all 100% by end of 2015. This is the first time that we have understood exactly how

many feature films were ever made in the UK.

In addition to revolutionising the BFI’s own collections management and access provision, the

Collections Information Database (CID) saw the first implementation of an innovative hierarchical

data structure based on the newly ratified European metadata standard EN 15907. This standard

has now been adopted by FIAF (International Federation of Film Archives) as the basis for their

international film cataloguing guidelines, acknowledging the substantial leadership from BFI in

bringing film documentation into the 21st century. The BFI team was asked to present at

conferences worldwide and hosted countless visits from other organisations. The opportunities

for uniting different collections data held in the same system and adhering to the same standard

are considerable. BFI as the recognised data specialist and co-developer of this sector defining

system is best placed to lead on linking these databases together – making European and possibly

even worldwide film archive collections accessible through one common access point.

• CONSERVATION

A major element of UFH is to ensure that the BFI National Archive is equipped for a digital future.

As such our transformation from analogue to digital continued apace, with the UFH project

presenting exciting opportunities for film and video conservation.

The BFI’s Silent Hitchcock restorations continued their international tour with high profile

screenings in more than 30 countries including Russia, Ukraine and Cuba, all enabled by BFI

29

partner the British Council. A screening of Hitchcock’s Blackmail (1929) achieved an audience of

25,000 people on Odessa’s famous Potemkin Steps.

The following restorations, remasterings and new prints were completed in 2014:

1905: Du Caire aux Pyramides; En Terre Sainte Jérusalem; Fontaine Lumineuse a Versailles. 1906:

Les Alpes par le Telescope. 1907: A Trip Through British North Borneo; Great Victoria Falls,

Zambesi River; Japon Pittoresque; Vues d’Espagne en Cartes Postales. 1908: The World’s First

Caterpillar Track; A Collection of Postage Stamps; Wheat Fields of Canada; Ein Ritt durch Chaco,

Südamerika; Londres; Um Die Welt, Ankunft in New York; Au Pays Du Matin Calme - La Corée; Eine

Reise Auf Die Fitschi Inseln. 1909: North Sea Fisheries and Rescue; Scenes in Morocco; Comment Se

Fait le Fromage De Hollande; Pêche à la dynamite dans les îles Soloman; Dash to the North Pole;

With Nansen to the North Pole; Delhi Grande Ville de L’Inde Supérieure; Eine Zuckerplantage in

Argentinien; Course de Buffles à Madoera; Dans le Golfe de Salerne; Landwirtschaft Und Viehzucht

in Australien; Panorama von Rio de Janeiro; Thé: le Culture, Récolte, Préparation Industrielle.

1910: Melbourne; Scenes in a Senegalese Village; Constantinople; Glasgow; Eine Fahrt Durch

Berlin; Canal Life of St Omer; Die Dagon-Pagoden in Rangun; Heisse Quellen Im Staate Wyoming;

Comment Les Pauvres Mangent à Paris; Modern China; Les Bords du Danube de Passau à Vienne;

Industrias Argentinas – Salinas Chicas; Farmerleben in America; Las Palmas; Descente en Barque à

Travers les Gorges de l'Ardèche; La Récolte et la Préparation de l'Ananas; A Trip to Brazil; A Trip

on the Mokau River New Zealand; Au Japon le Rapide de las Riviere Ozu; Montenegro, das Land

der Schwatzen Berge; Steam Train and Boat Party; Sights in New York; Auf einer Pferdefarm in Rio

Grande!; Au Pays Des Singes et des Serpants; Une Excursion dans le District du Geirangerfjord.

1911: Pirates of 1920; The Lager Beer Industry; Bergen Fish Market and Farming Scenes; Usines

Métallurgiques Du Bassin Du Donetz; Excursions Aux Ruines Romaines D'Ampurias; Ani, La Città

Dalle Mille Chiese; Le Portugal Pittoresque; Mariage du Sultan de Pahang avec la Fille du Sultan De

Perak , en Malasie; The Cascades of the Houyoux; Venezia, Industrie de l’Escargot. 1912: A Day in

the Life of a Rickshaw Boy; Picturesque Roumania; Les Ruines d’Égypte; Schiffsbrückenbau

Deutscher Pioniere; Danish Landscapes; In den Korkwälden Algeriens; Lumbering in Australia;

Manfredonia. 1913: A Message From Mars; Scenes in Taranaki, New Zealand; Die Alte Bosnische

Königstadt Jajce und Ihre Herrliche Umgebung. 1914: Arabian Types; Die Munitionsfabrik Manfred

Weiss Budapest-Cepel im Weltkrieg; Fabrikation von Sonnenschirmen. 1916: Camels in Gobi

Desert. 1927: The Battles of Coronel and Falkland Islands (Walter Summer). 1929: High Treason

(Maurice Elvey). 1939: The Face at the Window (George King). 1950: The Fall of the House of

Usher (Ivan Barnett). 1961: The Day the Earth Caught Fire (Val Guest). 1976: Sebastiane (Derek

Jarman). 1979: The Modern Image (John Maybury). 1980: Shadow of a Journey (Tina Keane);

Attitude Assumed: Still Life With Still Born (Ceryth Wyn Evans); Lost for Words (Anna Thew). 1981:

Solitude (John Maybury); The Technology of Souls (John Maybury). 1982: Court of Miracles (John

Maybury); Private View (Neo-Naturists); Passion Triptych (Cordelia Swann). 1983:

Grayson/Jewells/Flowers (Jennifer Binnie); Glory Boys (Vanda Carter); Skinheads and Roses (Jill

Westwood); Liquid Video (Michael Kostiff); In Excelcis Deo (Sophie Muller). 1984: Catherine de

Medicis (Steve Chivers); Territories (Isaac Julien); The Green Witch and Merry Diana (Grayson

Perry); Bungalow Depression (Grayson Perry/Jennifer Binnie); The Wound (Jill Westwood); Miracle

of the Rose (Ceryth Wyn Evans). 1986: Caravaggio (Derek Jarman).

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We are very grateful to a number of generous supporters, who made this work possible: the Eric

Anker-Petersen Charity, the John S Cohen Foundation, the Headley Trust, Simon W. Hessel, the

Radcliffe Trust, and Matt Spick.

• CURATORIAL

New Acquisitions

Key collections acquired into the BFI National Archive included the scrapbooks and photographs

of director Michael Winner; the Arts Council England Film Collection papers; papers of producer

Tony Garnett; papers relating to Derek Jarman’s collaborations with director Ken Russell; papers

and scripts of continuity supervisor Valerie Booth and papers of animator Harold Whitaker (of

Halas and Batchelor).

Unlocking Film Heritage and the Archive on BFI Player

The BFI Player continued to make available to UK audiences a wide range of newly digitised films

and TV from the UK’s film archives. After extensive research the following collections of newly

digitised films from the archive were made available on the BFI Player with many titles also made

available internationally on the BFI’s YouTube channel:

• 1914 on Film

• China on Film

• Chinese Britain on Film

• Cycling on Film

• Christmas Crackers

• Sci-Fi – Days of Fear and Wonder

Films from the BFI National Archive were viewed 153,000 times via the BFI Player. There were

1,600,000 views of films from the archive on the BFI’s YouTube channel. Sci-Fi Digitisation

supported by the Mohamed S. Farsi Foundation.

Exhibitions

Key exhibitions curated by the BFI from items in the collection included:

• The exhibitions ‘Derek Jarman: Strange Magic’ and ‘A Hard Day’s Night: Richard Lester and the

Beatles’ marked important anniversaries (20 years since Jarman’s death; 50 years since the

release of A Hard Day’s Night).

• Recent Acquisitions - included letters between the Boulting Brothers, Peter Sellers and Stanley

Kubrick; storyboards and drawings by Ronald Searle and photographs from Michael Winner’s

collection.

Works from the BFI collection were loaned to major exhibitions including ‘Terror and Wonder:

The Gothic Imagination’ at the British Library, London, and ‘Ken Adam: Bigger Than Life’ at the

Deutsche Kinemathek, Berlin.

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http://player.bfi.org.uk/collections/1914-on-film/

http://player.bfi.org.uk/collections/china-on-film/

http://player.bfi.org.uk/collections/chinese-britain-on-film/

http://player.bfi.org.uk/collections/cycling-on-film/

http://player.bfi.org.uk/christmas-crackers/

http://player.bfi.org.uk/collections/sci-fi-days-of-fear-and-wonder/

BFI REUBEN LIBRARY

Building on the success of its inaugural year which saw an increase in first time visitors the

library now welcomes over 6,000 unique visitors a month, with a 24% increase in the number

of study visits organised to the library by schools and FE colleges from around the UK. The

library continues to support the cultural offer at BFI Southbank, holding events that tie in with

the monthly programme, the blockbuster season and with the BFI festivals as well as

programming its own series of events that focus on the collections and the work of the BFI

which have proved popular with audiences. This year the library also hosted the first ever BFI

Wikipedia Editathon which saw a group of Wikipedia editor volunteers use BFI collections to

improve articles about British BAME filmmaking for the Wikipedia global website.

The BFI is now working towards the further integration of the library with the BFI

Mediatheque, to provide seamless on-site access to analogue and digital, still and moving

image collections, especially for material unsuitable for delivery through BFI Player due to

rights restrictions.

32

PUBLIC POLICY, RESEARCH AND STATISTICS, LEADERSHIP AND ADVOCACY

As the Government’s lead organisation the BFI helps ensure that public policy supports film and,

in particular, British film. In line with the Royal Charter, the BFI also provides policy support for

television and the wider moving image where it is needed.

One of the ways it does this is to make representations on public policy issues to the UK

Government and its Devolved Administrations, the European Commission and various statutory

organisations.

The BFI also brings together interested parties to identify ways in which public policy can be

made to work most effectively to the benefit of audiences, the industry, learners and film

culture in the UK. Areas where the BFI has provided leadership on public policy during 2014-15

include diversity (through the launch of the ‘three ticks’ initiative for BFI-funded films),

international engagement (developing a screen industries international strategy to help the

sector meet Government trade targets) and the reform of the digital single market.

In late 2013 the European Commission adopted its revised Cinema Communication. It followed a

long period of consultation with stakeholders from across Europe during which time the

Commission reviewed the framework for how member states provide national and regional

funding incentives for film production. The BFI led a working group from the UK and in

collaboration with its European partners was able to ensure the best possible outcome for all

member states.

The BFI is now providing leadership on another critical European Commission-related issue –

their proposals to reform the digital single market.

In February 2015, the BFI hosted an annual stakeholder reception at BFI Southbank for the

Department of Business, Innovation and Skills. The event was attended by the Secretary of State

and his ministerial team plus 300 of their senior industry representatives and provided a strong

signal of the importance that the Government attaches to film as part of the thriving creative

industries sector.

In addition to public policy, the BFI provides authoritative market intelligence and data on the

film industry through its Research and Statistics Unit (RSU). In 2014 the BFI’s annual box office

and production statistics showed that there was a surge in film production in the UK, generating

a total spend of £1.471 billion in 2014, a 35% increase on 2013 and the highest recorded figure

ever. And, for the first time ever, the market share of UK independent films reached almost 16%,

up from 6% in 2013.

RSU also works in partnership with external stakeholders to commission bespoke research. In

2014, the BFI in partnership with Pinewood Group, Ukie, the British Film Commission and PACT

commissioned Olsberg and Nordicity to produce a report on the economic impact of the screen

industry tax reliefs – film, high-end television, animation and video games. With a foreword from George Osborne, the Chancellor of the Exchequer, the report provided a strong evidence base to

demonstrate the importance of the tax incentives to the growth of the UK economy.

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In conjunction with partners, the BFI has commissioned research to examine the case for public

investment in video games. For the first time we will have an evidence base which will consider

the economic and cultural case for public funding of the sector. This will help inform what

additional support the BFI could provide in line with our remit in the Royal Charter to support

the wider moving image.

• TRIENNIAL REVIEW

The Triennial Review of the BFI was launched in March 2014. Triennial Reviews are part of the

Government’s Public Bodies reform work providing a robust challenge to the continuing need for

non-departmental public bodies (NDPBs) and to review their control and governance

arrangements. This was the first Triennial Review of the BFI.

The Review received the consistent message from stakeholders that the creation of a single lead

body for film in the UK was welcomed and that the BFI had performed its role well during a

period of significant change.

The Review found that the BFI is a well-respected and valued organisation, with an important

role to play in supporting the UK film and television industries through education and, as a

national centre of technical expertise, through its role in collecting and managing one of the

largest national collections of film and television.

It concluded that the BFI should remain an executive NDPB, and that it should maintain its core

functions based on the five objectives set out in its Royal Charter. It considered that the creation

of a single lead body for film that brought together cultural and commercial expertise in one

organisation had delivered efficiencies and that if any of the key functions were moved to

another organisation, these efficiencies could be lost.

The Review made 32 recommendations, the majority of which have been implemented. One of

the key recommendations was for the BFI to develop a Business Development Strategy focused

on developing a new commercial model which optimises the value of the organisation’s assets

and increases income from other sources so the BFI is less reliant on public funding. We are

approaching this by taking a root and branch look at our overall asset portfolio, particularly our

London estate, to explore all options for how this could be better leveraged to grow income

further, in order to protect funding as far as we are able to our UK-wide activities and national

services such as Certification for the Tax reliefs and the National film agencies.

34

FUNDRAISING AND PHILANTHROPY

Your support helps us keep film alive – forever

Your support helps secure the future of British film

The Development Department had an excellent year in 2014-15, reaching its target and laying

the foundations for the following financial year.

After months of work, the team has secured a number of significant grants. These included a

three year grant worth £843,000 towards the cost of a major national archive digitisation project

from the Esmée Fairbairn Foundation as well as a £100,000 grant from the Garfield Weston

Foundation towards much needed capital redevelopment at the JP Getty Conservation Centre,

Berkhamsted.

On the sponsorship side, we were delighted to announce a new partnership with IWC

Schaffhausen, the Swiss luxury watch manufacturer. This partnership was launched on 7

October, the night before the opening of the London Film Festival, with a spectacular night held

by IWC Schaffhausen in honour of the BFI.

Along with other new partners Virgin Atlantic, IWC has also joined the London Film Festival

family where our 5 year of partnership with American Express has again seen a demonstrable

increase in ticket sales to their Card members.

In 2014-15 we also launched a landmark new partnership together with O2. Focussed around

the Sci-Fi season, for the first time we worked with a sponsor across the UK on delivering cinema

experiences for O2 customers. We saw extraordinary responses to the partnership from new

audiences, with over 43,000 people responding for a chance to visit the BFI Archive and a further

45,000 signing up for a chance to meet Al Pacino at his recent BFI Fellowship presentation. The

partnership ran until the end of December.

While the Patrons scheme grew at a considerable rate, now with 100 members, the team

continued to take an entrepreneurial approach in forging new routes to maximise fundraised

income. The Film Forever Club now counts 12 donors and is attracting increasing interest, while

work on the next fundraising gala in 2015 is well underway.

In 2014-15, thanks to the extraordinary support of International Development Council member

Colin Walsh, we also launched the new American Patrons chapter in San Francisco, with a

private screening of Mr. Turner, attended by Timothy Spall. After an initial low key yet

successful fundraising initiative in Hong Kong earlier the year, this is the BFI’s first formal

fundraising event outside of the UK.

35

INTERNATIONAL DEVELOPMENT COUNCIL MEMBERS 2014-15:

Josh Berger CBE, Chair

Louis Elson

Hani Farsi

Eric Fellner CBE

Gerry Fox

Daniel Friel

Kathryn Greig

Isabella Macpherson

Caroline Michel

Beth Mill

Sir Alan Parker

Joyce Reuben

Joana Schliemann

Colin Walsh

The BFI warmly thanks the following individuals and organisations for their generous support

in 2014-2015:

PUBLIC SECTOR SUPPORTERS

Arts Council England

Europa Cinemas

European Commission

TRUSTS AND FOUNDATIONS

The Eric Anker-Petersen Charity

Band Service Amenities Fund

Blavatnik Family Foundation

The Chapman Charitable Trust

The John S Cohen Foundation

Esmée Fairbairn Foundation

European Cultural Fund

The Mohamed S. Farsi Foundation

The Film Foundation

The Edwin Fox Foundation

The Gosling Foundation

The Hintze Family Charitable Foundation

The David Lean Foundation

The Michael Marks Charitable Trust

PRS for Music Foundation

THAMES (Tower Hamlets Arts & Music Education Service)

The Reuben Foundation

The Rose Foundation

The Charles Skey Charitable Trust

36

The Wellcome Trust

Garfield Weston Foundation

MAJOR DONORS

Hani Farsi

Simon W. Hessel

Martin Scorsese

Matt Spick

And with additional thanks to our anonymous major donors.

FILM FOREVER CLUB

Donald & Corrine Brydon

Peter Dubens

Greg Dyke

The Fox Family

John & Jennifer McLellan

Ian & Beth Mill

Charles Morgan

Col & Karen Needham

Betsy & Jack Ryan

Sir Howard & Lady Stringer

Peter & Nancy Thompson

DIRECTORS CUT PATRONS

Eric Abraham

Ingrid A Beazley

Peter Baldwin & Lisbet Rausing

Amanda Eliasch

David Giampaolo

Keith Haviland

Simon W. Hessel

Alan Smith

EPIC PATRONS

Simeon Brown

Eric Fellner, CBE

Daniel & Joanna Friel

Lynn M. Lewis

Fatima Maleki

Tim & Sylvie Richards

N’Gunu Tiny

Ms Francesca Tondi

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Colin Walsh & David Ederick

The Stuart and Hilary Williams Foundation

CLASSIC PATRONS

Stefan Allesch-Taylor

Wayne Anderson

Francis Bennett

Josh Berger

Nick Blackburn

Felicia Brocklebank

Rob Carrington

John Chinegwundoh & Mark Wallis

Tom Cleaver

Alison Cornwell

Cley Crouch

Carl Dalby

Matthew Dean

Paul Dennis

Stephan Dilley

Catherine Dougherty

Ian Durant

Sarah & Louis Elson

Gavin Essex

Jeff & Emily Fergus

Paola Ferretti-Johnson

Joachim Fleury

Peter & Judith Foy

Paul Gambaccini

Lizie Gower

Claude Green

Louis Greig

Michael Hamlyn

Dr David J Hanson

Duncan Hopper

Rachael Horsley

Valentina Jacome

Fady Jameel

Alexandra Joffe

Linda & Spencer Kahan

Nicola Kerr

Stephen & Sigrid Kirk

Steven Larcombe

Laura Lonsdale

Ms Petra Luckman

Jackie Mountain

Peter & Maggie Murray-Smith

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Amanda Nevill

Lundi Nyoni

Si Overson

Lucinda Partridge-Hicks

Charlotte Peters

Tom Pilla

Sir Brian & Lady Pomeroy

Paul Price

Damien Read

Phillip Reeves

John Reiss

Sarah & Philip Richards

Amy Ricker

Brenda and Neill Ross

Michael Sandler

Joana Schliemann

Nick Scudamore

Angela Seay

Mark & Lee Shanker

Gregory Stone & Annabel Scarfe

Danielle Summers

Andrew Tseng

Karen Veninga-Zaricor

Louise L Whitewright

Richard & Astrid Wolman

CORPORATE PARTNERS

Accenture

American Express

Deluxe

Interbank LGBT Forum

IWC Schaffhausen

Lycamobile

The May Fair Hotel

O2

Shangri-La Hotels and ResortsShell

TV5 Monde

Virgin Atlantic

IN-KIND PARTNERS

Air New Zealand

Capablue

Champagne de Bleuchamp

Cathay Pacific Airways

Christie

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Corinthia Hotel London

Digital Cinema Media

DJI

Drambuie

Freixenet

Green & Black's Organic

Heineken

The Hospital Club

Konditor & Cook

Latham & Watkins

M•A•C Cosmetics

Renault

Thanks also to all our other supporters, including anonymous donors, BFI Champions, BFI

Members and the Friends of the British Film Institute.

40

KEY PERFORMANCE MEASURES

As set out in Film Forever the BFI proposed a focussed number of aims to be delivered by 2017. Performance in 2014-15 is as follows:

To have ensured that a new education offer is available to every school and 25% of all young people are actively engaged in making, watching and understanding a wide range of film

Available to all schools in the UK (approximately 28,000 schools)

12,134 film clubs established (increase of 4,076 in the year)

12.2% of young people actively engaged in making, watching and understanding a wide range of film (approximately 1.2m young people throughout the UK)

To have increased the size, diversity and geographic spread of audiences viewing British independent and specialised film (through BFI interventions)

Audiences (reach) to activities supported by the BFI online, in-venue and publishing: 25.1million (an increase of 6 million in the year)

Increased the Geographic spread of audiences viewing BFI material: 68.35% of audiences toBFI supported activity from outside London (in 2013-14 65.4% of audiences to BFI supportedactivity were from outside of London)

To have funded a range of British films and talent which will have won major domestic and international awards

See page 43.

To have helped increase the total level of inward investments and exports

the total level of inward investments in 2014: £1.23b (in 2013 £868 million)

Export data: not yet available (will be available January 2016)

To have increased by 25% the number of visits and reach to BFI content digitally

the number of visits and reach to BFI content digitally (from 2011-12 base) increased by 81%(50% up on 2013-14)

To have digitised and made available 10,000 significant heritage titles and increased the number of views of archive materials

Number of items digitised: 2,531 (an increase of 979 items in the year)

Number of titles available: 1,051 (on BFI Player) (an increase of 583 in the year)

To have increased, year-on-year, the total amount of charitable income to the BFI

Total amount of charitable income to the BFI: £4.0m (£2.6m cash) (2013: £3.6m, £2.2m cash)

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Ensured that 80% of key partners consider the BFI as either very effective or effective

In a survey independently undertaken by DCMS for the Triennial Review 2014 85% rated the

BFI’s leadership and advocacy role as very effective or effective (next survey to be undertaken

in 2015-16)

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43

FINANCIAL REVIEW

Funding, Income and Investment in Charitable Activities

Review of the year

Net incoming resources for the year were £14.7m (2014: outgoing resources £26.9m). Nosubstantial new lottery multi-year awards were made in the year and the movement in incoming resources reflects the impact of multi-year awards made in previous years. This has naturally led to a lower level of spend in the year compared to 2014 and an increase in lottery reserves to £19.3m (2014: £0.9m).

The BFI received £53.9m (2014: £47.8m) of Lottery proceeds and recouped Lottery income in theyear. Non-film rights Lottery awards in the year totaled £10.2m (2014: £41.9m) with the main difference being the £21.0m Creative Skillset and £9.0m Film Audience Network awards, covering the period to March 2017, which were recognised in 2013-14. Included in the consolidated BFI accounts is an £18.4m surplus (2014 restated: £39.2m deficit) in Lottery activity. Lottery monies are restricted and only available for the specifically defined Lottery distribution activities, not more generally for the activities of the BFI.

Non-Lottery activities of the BFI resulted in a net decrease in funds of £20.5m (2014: £11.1m increase). The movement between years arose primarily from the £17.9m actuarial loss on the pension scheme with the result that the Statement of Financial Activity records a net decrease in funds for the organisation of £2.1m in the year (2014: £28.1m).

Total non-Lottery incoming resources remain in excess of £45.0m with self-generated income maintained at the high levels achieved in recent years, helping sustain and develop public programmes and the preservation of the BFI National Archive.

The BFI’s financial strategy continues to be to seek operational efficiencies to further drive down overhead costs and to seek to deliver increased income from charitable activities, including the exploration of new sources of income, to support the delivery of core objectives.

Due to the nature of its funding and its operations the BFI does not hold large cash balances, and its financial investment is focused on its property asset base and in investing in people and activities to achieve its charitable objectives.

Incoming resources

The BFI recorded total income of £99.4m (2014: £93.5m) with the most significant change beingthe increase in lottery proceeds. Revenue Grant in Aid funding in the year is lower due to the timing of part of our funding, amounting to £7.5m, which was received in 2012-13. In the year this lower funding has been matched by an increase in other grants and donations.

Resources expended

Total expenditure of £84.6m was a reduction against that of the prior year (2014: £120.4m). Theprime factor is the comparative fall in Lottery expenditure arising from the recognition of the multi-year Lottery awards in the previous years. However, underlying non-Lottery spend increased to £52.7m (2014: £50.8m), with increased spend from restricted funds on the Unlocking Film Heritage programme.

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Of the total expenditure of £84.6m, £82.6m (97.6%) (2014: £118.6m; 98.5%) was invested inthe following Charitable Activities:

Education, Learning and Audiences

Supporting British Film; and

Film Heritage

Fundraising

In challenging economic conditions 2014-15 was another successful year in fundraising for BFI Southbank, festivals and other BFI activity. £4.0m was raised of which £2.6m (65%) were cash contributions with £1.4m (35%) gifts-in-kind (2014: £3.6m, being £2.2m cash contribution (60%); £1.4m gifts-in-kind (40%)). Fundraising costs of £1.1m (2014: £1.5m) represent the costs of running the BFI Development Division in order to raise funds for the BFI.

Net incoming / outgoing resources

Net incoming resources for the year amounted to £14.7m (2014: £26.9m net outgoingresources) with the change largely due to the multi-year Lottery awards covering the period to 2017 being recognised in prior periods with only £1.4m of such awards being made in 2014-15.

Actuarial losses / gains on defined pension scheme

On the FRS17 basis the net pension scheme deficit increased by £19.9m (2014: increase £2.6m) from £40.0m to £59.9m, including an actuarial loss of £19.0m (2014: £1.5m) arising from the change in discount rates and assumptions underlying the present value of the scheme liabilities. The most recent triennial actuarial valuation as at 31 March 2013, upon which current and future contributions are based, showed a net liability of £12.7m (2010: £12.2m). The deficit is being funded over 14 years under a deficit recovery plan agreed with the pension trustees.

Movement in fair value reserves

The fair value reserve, relating to Lottery funded films in which rights are taken, decreased by £2.2m (2014: £1.9m decrease). This is primarily due to revenues from, and a reassessment of, the carrying value of the phenomenally successful The King’s Speech where potential revenueswere reflected in the fair value reserve in the year ending March 2013 and subsequently received.

Movement in fixed asset revaluation reserve

A net increase of £4.5m (2014: £2.2m) arose on the value of the leasehold land and buildings with associated plant and fixtures. These movements arise from the standard indexation applied to the 2012 revaluation of the properties.

Restatement of Prior Year

Following the issue of new Lottery Accounts Direction by the Department for Culture, Media andSport, awards are now recognised on an accruals basis rather than a commitments basis in the Lottery accounts. In parallel with this we have reviewed the recognition points of awards in the Charity and Group accounts, which has led to a restatement of the 2013-14 financial statements,

45

primarily recognising £26.1m of awards as a provision at 1 April 2013 rather than expenditure in2013-14. Non-film rights awards determined by the BFI at the balance sheet date, but not contracted by then, are now recognised as a liability when there is a constructive obligation. They were previously disclosed as soft commitments in the notes to the accounts. An additional commitment of £1.9m has been recognised at 31 March 2014 and further details on therestatement are provided in note 2 to the Charity and Group financial statements.

Reserves Policy

The Governors are committed to maintaining an adequate level of free reserves to meet any unforeseen expenditure or fall in income. This is incorporated into the financial planning and budgets going forward and the on-going management of activities within the available income, a significant element of which is subject to market conditions. The BFI’s free net reserves (note 23) were maintained at £1.6m (2014: £1.6m).

At 31 March 2015 the BFI had consolidated reserves of £25.7m (2014: £27.8m) after the impact of FRS17 Pension liability which reduced reserves by £59.9m (2014: £40.0m).

Restricted funds (excluding lottery) of £32.7m (2014: £34.9m) comprise fixed assets of £23.0m (2014: £21.5m) and unspent restricted grants, primarily relating to the ongoing UFH project, of £9.6m (2014: £13.4m).

Lottery Financial Review

The Lottery financial statements are presented on page 99

Incoming Resources

During the year the BFI’s share of the incoming resources of the National Lottery Distribution Fund was 2.7% (2014: 2.7%). This equated to £52.8m (2014: £44.9m) including a repayment of £4.0m (2014: £nil) arising from the wind-up of the Olympic Lottery Distribution Fund in the year.

The BFI’s share of investment earned on the National Lottery Distribution Fund balance amounted to £0.2m (2014: £0.2m).

In addition the BFI received £5.6m of recoupment from its investments in the year (2014:£5.9m). Of this, £0.9m (2014: £2.2m) was surplus recoupment over the original investment and was taken to income. The King’s Speech generated £0.5m of this surplus (2014: £2.1m).

Resources expended

Lottery – non-film rights awards in the year totalled £10.2m (2014: £41.9m). The apparent reduction is again due to substantial multi-year awards to Creative Skillset and the Film Audience Network being made in the prior year and covering the period to March 2017. No substantial new awards were made in the year 2014-15, leading to this apparent reduction in spending.

In addition, £16.9m (2014: £27.2m) of awards were taken to Film Rights in the Statement of Financial Position. Impairments of £16.5m (2014: £22.6m) were charged to expenditure against Film Rights.

46

Costs apportioned from Grant-in-Aid, representing operating overhead costs attributable to Lottery were £4.6m (2014: £4.7m) which includes the management of ongoing Film Forever activity, alongside other finance costs (pension) of £0.3m (2014: £0.4m) but excluding costs of change of £0.9m (2014: £0.3m).

On the IAS 19 basis the net pension scheme deficit apportioned to lottery was £2.9m (2014:£1.7m) with £1.0m of the movement arising from the change in discount rates and assumptions underlying the present value of the scheme liabilities.

Movement in fair value reserves

A decrease of £2.2m (2014: 1.9m) arose from Lottery funded films, resulting in a decrease in the fair value of the associated film rights held on the statement of financial position. This is in part due to revenues from, and a re-assessment of the carrying value of, the phenomenally successful The King’s Speech where potential revenues were reflected in the fair value reserve in the year ending March 2013 and subsequently received.

Total comprehensive income

Total comprehensive income on Lottery activities for the year was £18.2m (2014: £24.0mexpenditure) with the year-on-year variance due to the lower levels of non-film rights spend and impairments in the year, alongside the increased income.

Going Concern

The BFI receives Grant-in-Aid each year from DCMS. This is in recognition of the cultural impact of film, and the importance of the National Films and Television Archive to the nation’s heritage. Given the recent review of BFI activities and structures, together with the government commitment to funding, the Governors and Executive have a reasonable expectation that the BFI has adequate resources to continue operating. There have been no events since the balance sheet date which would affect this view, and accordingly the financial statements for the charity and group and lottery activities have been prepared on a going concern basis.

47

PUBLIC BENEFIT

The Board of Governors has continued to take heed of the Charity Commission’s guidance on

public benefit, the guidance on public benefit and fee charging being particularly borne in

mind while shaping our objectives for the year and planning activities. The Board also continues

to be conscious of its responsibilities as the custodian of a National Collection which it holds in

trust for the nation.

The BFI’s Charter includes a requirement to “promote access to and appreciation of the widest

possible range of British and world cinema”. The BFI, as a Lottery Distributor for film, invests

Lottery money and Grant in Aid to help ensure that audiences across the UK have access to a

wide range of cinema. The BFI also uses Lottery and Grant in Aid to support activities including

education and lifelong learning and the preservation of the UK’s screen heritage. All these

interventions deliver significant public benefit.

The BFI relies on income from the National Lottery, Grant in Aid from the Government and

income from ticket and other sales, fees and charges to deliver public benefit and to cover its

operating costs. In setting both the overall strategy for the organisation as the lead body for

film and the level of prices, fees and charges, the Governors have given careful consideration to

accessibility to the activities funded by the BFI for those on low incomes. A key part of our

longer-term development strategy has involved providing free access to a wide range of the

services we fund and those we run – for example, through the BFI Player, our Mediatheques

and our websites, to free public screenings and broadcast partnerships. In addition to meeting

our social responsibilities, the BFI also considers its impact on local communities, a diverse range

of audiences, provides work experience and employment opportunities and works with schools,

local authorities and many other organisations.

The BFI directly supports the distribution and exhibition of film through Lottery funding and is

also the UK’s biggest distributor of world cinema – non-commercial film culture from all parts

of the world, both these interventions give the public access to a diversity of film culture which

would not otherwise be available: the diversity of Britain’s cultural life would be dramatically

reduced without the BFI’s interventions. We also support and directly make available a

wide range of titles on all other platforms.

There are many ways in which the public accesses the BFI’s work, and this range ensures we

deliver the maximum public benefit for our charitable resources. The BFI activities which

deliver public benefit are described in more detail in the pages of this report.

48

ENVIRONMENTAL SUSTAINABILITY

Film Forever included a statement highlighting the BFI’s commitment to sustainable

development or put simply to meet the needs of the present without compromising the ability

of future generations to meet their needs. At the heart of this commitment was a

determination to encourage film organisations to adopt BS 8909 the official standard for the

sustainable management of the UK film industry. The BFI also committed to adopt this standard.

“BS 8909 is a cutting edge sustainability tool that the British film industry should be proud of and

embrace to maintain a healthy and competitive film industry. The standard has already provided

the framework for the BFI to manage our environmental, social and economic impacts on an

ongoing basis and we encourage other organisations to use a system to identify and manage

their sustainability issues.”

Amanda Nevill, BFI Chief Executive

The BFI is now in its second year of operating its Sustainability Management System in line with

British Standard S8909. In 2014/15 we have achieved many of our objectives set at the

beginning of the year, notably these were:

Procurement

We have embedded sustainability criteria into our procurement process. Before a re-tender

takes place for goods and services the BFI now assesses the contract for potential impact using

the DEFRA Sustainable Procurement Tool. The completion of this tool informs how we might

best scope the contract to minimise environmental and social impact.

Travel & Transport

The BFI has been working hard to encourage more sustainable commuting to work. We have

improved our cycling infrastructure at all our sites by installing covered cycle parks, shower

facilities and foldable-bike lockers at all sites. We have also offered and run cycle skills training

for those wishing to improve their safety on the road.

In order to reduce the impact of film & DCP transport the BFI has worked with its transport

partner to replace the diesel van with an electric one. We estimate this will halve our CO2

emissions for this activity and benefit local air quality.

The BFI has this year just started to calculate its carbon footprint with respect to travel including

its festival activities. The total carbon for travel can be found in the table below.

Greenhouse Gas (GHG) Emissions

The BFI greenhouse gas emissions increased this year in line with the increased activity

particularly the Unlocking Film Heritage project and a new restaurant concession at BFI Head

Office. We expect an increase next year of similar magnitude due to further digital operations

which came on line in May 2015, we do, however, expect this to be offset by optimising our air

handling at our Master Film Store in Warwickshire. We also aim to improve our Building

Management System (BMS) through the separation of film storage consumption from other

activities so we can monitor and report separately in 2016/17.

49

Renewable energy is fast becoming a viable alternative to traditional carbon intensive energy

sources. The BFI chooses to source its energy through a 100% green tariff (centrally procured

through government). We also wish to explore the potential for photovoltaic generation at our

Master Film Store in Gaydon and Conservation Centre at Berkhamsted. A feasibility report will

be undertaken in 2015/16.

Waste

Continuing with our zero to landfill policy, 2014/15 has seen improvements in our waste

efficiency with combined recycling rates increasing from 63.5% in 2013/14 to 71.0% in 2014/15.

This was achieved through the rolling out of a simple recycling system for staff and additional

food and glass streams for our bar concessions.

In 2015/16 we intend to further improve these rates by an estimated 2% by diverting food waste

at BFI Southbank and through re-launching our recycling information.

Staff Engagement

We carried out an extensive staff engagement activity in May 2014, branded as ‘Sustainability

Week’ which involved staff in workshops, presentations, screenings of environmental

documentaries and quizzes on key sustainability issues. The overall success of the week was

measured by a 90% positive response in our feedback survey. We also took the opportunity to

capture ideas from our staff and have incorporated some of these into our targets going

forward.

2011-12 2012-13 2013-14 2014-15

GH

G e

mis

sio

ns

(tC

O2

)

Estate Power* 5041 4906 4854 4897

Travel - - - 106

Res

ou

rce

Co

nsu

mp

tio

n

Water (m3) 23 301 21 266 20 470 23 533

Paper (reams) - - - 3548

Was

te

output (tonnes)

- - 703 701

Recycling rate (%)

- - 63.5 71.0

*Estate power accounts for all power consumed on BFI sites. Relevant carbon factors have been applied as per

the Carbon Reduction Commitment (electricity includes transmission and distribution loss).

50

HOW THE BFI IS GOVERNED

The BFI is governed by a Board of up to 15 Governors subject to the BFI’s Royal Charter. The

Governors, who are also the trustees of the Charity, now submit their annual report and the

audited financial statements for the year ended 31 March 2015. In preparing the annual report

and financial statements of the Charity, the Governors have adopted the Statement of

Recommended Practice, Accounting and Reporting by Charities issued in February 2005 (SORP

2005).

Governors

Governors who were in post for at least part of the financial year 2014–15 or at the date of

signing these accounts:

Greg Dyke (Chair)

Josh Berger CBE

Pat Butler

Charles Cecil MBE

Pete Czernin

Alison Cornwell

Ashley Highfield

Tom Hooper

Matthew Justice

Oona King

Peter Kosminsky

J. Timothy Richards

Jonathan Ross OBE

Lisbeth Savill (Deputy Chair)

Andrea Wong

51

Methods of Appointment

The Chair and Governors of the BFI are appointed by the Secretary of State for Culture, Media

and Sport pursuant a process regulated by the Office of the Commissioner for Public

Appointments.

The Board of Governors reserves one place on the Board for a Member Governor. The Member

Governor is nominated and voted for by the BFI membership throughout the United Kingdom.

This appointment is also subject to approval by the Board of Governors.

A Governor’s term of office is normally four years. Pursuant to the BFI’s Royal Charter, a

Governor may only serve two terms in office. Newly appointed Governors receive a letter of

appointment and induction documents which together address, amongst other things, general

obligations, the management of conflicts of interest, committee membership, and their

responsibilities and duties as Charitable Trustees. Governors have broad experience and

expertise in the areas of film, television, the moving image generally, business and strategy and

education. All Governors are part-time, unremunerated non-executives.

The Board of Governors has corporate responsibility for:

• delivering the mission set out in the Royal Charter; delivering the BFI’s charitable objectives;

and developing the overall strategic direction of the BFI;

• ensuring that the BFI as a Non-Departmental Public Body complies with any statutory

or administrative requirements for the use of public funds and to maximise value for money;

• ensuring that the BFI acts reasonably and prudently in all matters relating to its charitable

status;

• appointment of the Chief Executive;

• ensuring that all BFI properties and assets are protected and effectively utilised in the

pursuit of the BFI’s overall mission;

• ensuring commercial activities are self financing and aligned to the BFI core purpose and

that these activities uphold fair trading standard requirements;

• ensuring that any fund-raising activity carried out on behalf of the BFI is properly undertaken

and that all funds collected are properly accounted for;

• overseeing the delivery of planned results by monitoring performance against agreed

strategic objectives and targets;

• ensuring that the BFI’s rules for the recruitment and management of staff provide for

appointment and advancement on merit on the basis of equal opportunity for all applicants

and staff; and

• ensuring the board operates sound environmental policies and practices in accordance with

the approach set out in the 1990 White Paper This Common Inheritance, the Government’s

green initiatives and other relevant guidance.

Board Assessment The Board undertakes a formal and rigorous evaluation of its own performance and that of its committees and individual Governors on a bi a-annual basis. The next evaluation is schedule for January 2016 so that any findings can be considered by the new Chair upon appointment in February 2016.

52

Organisational Structure

The Board of Governors delegates specific responsibilities to its Committees. Recommendations

made by Committees are presented to the Board as a whole for approval.

A brief description of each Committee and its function is given below:

• Audit, Risk and Governance Committee

This committee reviews the effectiveness of the processes, structures, and controls used

to direct, manage and account for the financial and business affairs of the BFI. The Audit, Risk

and Governance Committee consider all internal and external audit reports and

recommendations. In line with best practice there are three non-Governor members of the

committee.

• Finance Committee

This Committee is responsible for overseeing the budgetary, assurance and value for money

processes within the BFI.

• Nominations and Appointments Committee

This Committee makes recommendations to the Board of Governors about appointments to the Board and its committees and other bodies.

• Remuneration Committee

This Committee determines and keeps under review the levels of pay, and the terms

and conditions of service, for the Chief Executive and other senior managers.

• International Development Council (IDC)

The IDC works closely with the Chief Executive and the Development Department to ensure

the financial success of the BFI fundraising campaigns and strengthen the BFI’s

fundraising capability.

Current Committee members are:

Audit, Risk & Governance

Alison Cornwell (Chair)

Charles Cecil MBE

Nick Cowley (Non-Governor member)

Alison Dolan (Non-Governor member)

Dr Sree Kamineni (Non-Governor member)

Finance

Pat Butler (Chair)

Matthew Justice

Peter Kosminsky

Alison Dolan (Non-Governor member)

53

Nominations & Appointments

Lisbeth Savill (Chair)

Matthew Justice

Greg Dyke

Remuneration

Greg Dyke (Chair)

Pat Butler

Ashley Highfield

International Development Council

Josh Berger CBE (Chair)

Louis Elson

Hani Farsi

Eric Fellner CBE

Gerry Fox

Daniel Friel

Kathryn Greig

Isabella Macpherson

Caroline Michel

Beth Mill

Sir Alan Parker

Joyce Reuben

Joana Schliemann

Colin Walsh

Richard Wolman

The Secretary to the Board of Governors and its committees is Iain Thomson.

Executive

The Board of Governors employs a Chief Executive, Amanda Nevill CBE.

Amanda leads an executive team that during the year consisted of:

Fiona Cookson Director of External Affairs1

Tim Cagney Deputy Chief Executive2

Will Evans Director of Business Affairs

Ed Humphrey Director of Digital

David Parkhill Director of Finance and Resources

1 Appointed 1 September 2014.

2 Resigned 17 April 2014.

54

Ben Roberts Director of Film Fund

Richard Shaw Director of Marketing, Communications and Audiences3

Heather Stewart Creative Director of BFI

Francesca Vinti Director of Development

The Executive makes day-to-day management decisions on behalf of the Board of Governors

under the Financial Procedures approved by the Board.

Employment and training policies and staff participation

The BFI is committed to a policy of equality opportunity in its employment practices and

continues to develop a culturally diverse workforce. Its training and development programmes

are designed to encourage and support all employees in improving performance. In particular,

the organisation aims to ensure that no potential or actual employees receive more or less

favourable treatment on the grounds of race, colour, ethnic or national origin, marital status,

age, gender, sexual orientation, disability or religious beliefs.

Equality information as at 31 March 2015:

WOMEN MEN

Board of Governors 4 9

Executive 4 5

Senior Managers4 39 33

Employees 230 231

TOTAL 277 278

The BFI ensures that there are arrangements to promote effective consultation and

communications with all staff. All departments have regular staff meetings at which matters

relating to BFI activities are discussed and staff are regularly briefed on the matters discussed at

Executive and Board meetings. Meetings of all staff are held regularly and recognition

agreements are in place with Unite and BECTU fostering the best possible relationship with staff.

The BFI seeks to ensure that the requirements of health and safety legislation are met in the

workplace. The BFI has policies and procedures in place to monitor sickness absence, (both long

and short term) and this information is regularly reviewed by the Senior Management Team.

During 2014-15, sickness absence (excluding long term absence) averaged 2.74 days (2014:

3.03). 12 individuals had long term sickness absence (2014: 12). Long term sickness absence is

deemed to be any period of absence over four weeks.

3 Appointed on 14 April 2014.

4 Defined as any employee at Senior Civil Service level or equivalent (excluding members of the Executive).

55

Better Payment Practice Code

The BFI attempts to abide by the Better Payment Practice Code and in particular to settle bills in

accordance with contract. Invoices are normally settled within our suppliers’ standard terms,

which are typically in line with our standard 30 day terms. The average payment terms taken

were 24 days (2014: 28).

Disclosure of information to the auditors

So far as the Accounting Officer and each person who was a Governor at the date of approving

this report is aware, there is no relevant audit information, being information needed by the

auditor in connection with preparing its report, of which the auditor is unaware. Having

made enquiries of fellow Governors, the Chief Executive and the Group’s auditor, each

Governor/Accounting Officer has taken all the steps that he/she is obliged to take as a

Governor/Accounting Officer in order to make himself/herself aware of any relevant

information and to establish that the auditor is aware of that information.

Board of Governors Attendance 2014-15

The number of BFI Board meetings held in the 2014-15 financial year was 8 and the Governors’

attendance records were as follows:

Greg Dyke (Chair) 8 of 8

Josh Berger CBE 7 of 8

Pat Butler 6 of 8

Charles Cecil MBE 8 of 8

Alison Cornwell 7 of 8

Pete Czernin 5 of 8

Ashley Highfield 6 of 8

Tom Hooper 5 of 8

Matthew Justice 7 of 8

Oona King 7 of 8

Peter Kosminsky 2 of 8

J. Timothy Richards 7 of 8

Jonathan Ross OBE 3 of 8

Libby Savill (Deputy Chair) 8 of 8

Andrea Wong 3 of 8

All Governors are required to complete a declaration of any potential related party interests – and details of any transactions with these related parties is reported in note 31 of the Charity and Group financial statements.

56

Audit, Risk and Governance Committee Attendance 2014-15

The number of Audit Risk and Governance Committee meetings held in the 2014-15 financial year was 4 and the members’ attendance records were as follows:

Alison Cornwell (Chair) 4 of 4

Charles Cecil MBE 3 of 4

Nick Cowley 3 of 4

Alison Dolan 3 of 4

Dr Sree Kamineni 4 of 4

57

REMUNERATION REPORT

The Remuneration Committee

The Board of the BFI is responsible for determining the remuneration of the Chief Executive

and senior staff. In the year ending 31 March 2015, it discharged this responsibility through the

cycle of monthly Board meetings – which included involvement in the appointment of new

members of the Executive Team, and ensuring appropriate approvals were obtained from the

Department for Culture, Media and Sport (DCMS).

In addition the Board is supported by the Remuneration Committee that meets as required,

which is authorised within its terms of reference, to obtain independent professional advice if it

considers this necessary. The Remuneration Committee comprises a chair, who is also chair of

the BFI Governors, and up to 2 other members of the Board or co-opted members, who are

each appointed for a period of up to three years. The members during the year were:

Greg Dyke (Chair)

Pat Butler

Ashley Highfield

The Remuneration Committee met in March 2014 and will meet in July 2015. It did not

meet in the year ending 31 March 2015.

Remuneration Framework

Governors are not entitled to draw any remuneration for their time spent working as a Trustee

of the BFI, although they are entitled to reimbursement of expenses incurred in their duties.

In determining appropriate levels of remuneration for senior staff, the BFI follows the

Government’s policy to maximise value for money by paying enough to attract and retain

suitably qualified senior staff, and salaries are based on the minimum required to recruit, retain

and motivate senior staff of appropriate calibre.

All staff Including the Chief Executive, are entitled to either membership of the Local

Government Pension Scheme (LGPS) operated by the London Pension Fund Authority (LPFA),

which is a defined benefit scheme for those BFI employees who wish to join, or a defined

contribution scheme operated by Legal and General. Further details of the schemes can be

found in note 10 to the BFI Group financial statements.

The staff pay bill for each year is subject to review by the Remuneration Committee and the

DCMS, under HM Treasury guidelines and limits for public sector pay.

Contracts of Employment

The Chair of the BFI is appointed by the Secretary of State for Culture, Media and Sport pursuant

to a process governed by the Office of the Commissioner for Public Appointments. Governors

are appointed by the Board for a period of 4 years, with one Governor being elected by the

membership of the BFI. Both the Chairman and any other Governors may stand for two

successive terms of office. There is no period of notice required for resignation from the

Board.

58

No members of senior management were employed under closed contracts as at 31 March

2015 and where contractual terms are open ended, the period of notice required for

termination of contract is no greater than six months.

Audited Information

Governors’ remuneration

No Governor drew any remuneration in the year – although costs amounting to £144 (2014:

£769) were incurred. This primarily represents reimbursed travelling expenses. No payments

were made in the year for services (2014: £Nil). As part of their oversight duties as Trustees,

copies of all books and DVD/Blu-Ray releases published by the BFI during the year are made

available to all Governors.

Senior staff remuneration

Remuneration (excluding pension arrangements) for the senior staff for the year:

Total salary for the year ended 31

March 2015

(2014)

Bonuses attributable for the

year ended 31 March 2015 (2014)

Benefits Attributable for the year ended

31 March 2015

(2014)

Pension benefits accrued in the year

ended 31 March 2015 (2014)

Total remuneration for the year ended

31 March 2015

(2014)

£’000 £’000 Nearest £100 £’000s £’000

Amanda Nevill

Chief Executive Officer and Accounting Officer

140-145(135-140)

-

(-)

100

(100)

33

(23)

170-175

(160-165)

Tim Cagney5

Deputy Chief Executive

10-15

(115-120)

-

(-)

-

(100)

1

(29)

10-15

(145-150)

Fiona Cookson6

Director of External Affairs

45-50 (FTE: 85-90)

(N/A)

(N/A)

-

(N/A)

100

(N/A)

N/A

(N/A)

45-50

(N/A)

Will Evans

Director of Business Affairs

140-145

(135-140)

-

(-)

100

(100)

N/A

(N/A)

140-145

(135-140)

Ed Humphrey

Director of Digital

110-115

(110-115)

10-

3,800(100)

11

(28)

135-140(135-140)

David Parkhill

Director of Finance and Resources

115-120

(5-10: FTE 105-110)

-

(-)

100

(100)

34

(3)

150-155

(10-15)

Ben Roberts

Director of Film Fund

135-140

(135-140)

- (-)

100

(100)

34

(12)

170-175

(150-155)

Richard Shaw7

Director of Communications, Marketing and Audiences

90-95 (FTE: 95-100)

(N/A)

- (N/A)

100

(N/A)

N/A

(N/A)

90-95(N/A)




59

Paid in August 2014 but relates to the year ended 31 March 2014.8

8

Heather Stewart

Creative Director

110-115

(110-115)

- (-)

100

(100)

20

(15)

130-135

(125-130)

Francesca Vinti

Director of Development

80-85 FTE: 90-95

(80-85 FTE: 90-95)

- (-)

100

(100)

22

(17)

100-105

(95-100)

Trevor Mawby and Chris Travers left the BFI in 2013-14 and received no remuneration in the current year. Their prior year remuneration is disclosed in the Annual Report and Accounts for the year ended 31 March 2014.

Contributions paid

2014-15 2013-14

Fiona Cookson9

Director of External Affairs

1,514 n/a

Will Evans


21,384 21,173

Richard Shaw10

Director of Communications, Marketing and Audiences

3,598 n/a

Included in the above is remuneration (excluding pension arrangements) for senior staff in the

year which are attributable to lottery for the year ending 31 March 2015. These are recharged

as part of our lottery funded operations and thus contained within expenditure in the Lottery

Financial Statements for the year ending 31 March 2015.

Remuneration (excluding pension arrangements) for the senior staff attributable to lottery for

the year ending 31 March 2015:

Total salary apportioned to

lottery for the year ended 31 March

2015

(2014)

Bonuses attributable

apportioned to lottery for the year

ended 31 March 2015 (2014)

Benefits Attributable apportioned to


2015

(2014)

Pension benefits accrued in the year

ended 31 March 2015 (2014)

Total remuneration apportioned to


2015

(2014)

£’000 £’000 Nearest £100 £’000s £’000

Amanda Nevill

Chief Executive Officer and Accounting Officer

75-80

(75-80)

-

(-)

100

100

18

(13)

95-100

(85-90)

Tim Cagney11

Deputy

Chief Executive

5-10

(60-65)

-

(-)

-

(100)

1

(16)

5-10

(80-85)

Will Evans


140-145

(135-140)

-

(-)

100

(100)

N/A

(N/A)

140-145

(135-140)




60

In the year to 31 March 2015, all senior staff except for Fiona Cookson, Will Evans and Richard Shaw were members of the LPFA defined benefit scheme. Pension contributions during the year were made to other pension schemes of:

David Parkhill


60-65

(5-10 FTE: 60-65)

-

(-)

100(100)

19

(2)

80-85

(5-10)

Ben Roberts


135-140

(135-140)

- (-)

100

(100)

34

(12)

170-175

(125-130)

Benefits in kind

All members of BFI staff are entitled to receive: up to £100 contribution towards gym

membership per annum; up to 12 free tickets per month at the BFI Southbank cinemas;

staff discounts on purchases at the BFI Southbank’s Film Store and Benugo’s cafe and

restaurant and the BFI London IMAX, ranging from 10-70%; and interest free loans for train

season tickets, bicycle and computer purchases. Staff whose contracts transferred from

UKFC may opt to receive a contractual payment of £250 for cinema tickets per annum in

place of the BFI Southbank ticket entitlement. Staff on BFI contracts receive a monthly copy

of Sight and Sound.

Senior staff pension arrangements

The following senior staff were members of the LPFA scheme at 31 March 2015.


Real increase in accrued pension benefits 2014-15

Attributable pension accrued

at 65 at 31 March 2015 (or date left the BFI if earlier)

Cash Equivalent

Transfer Value (CETV)

as at 31 March 2014

CETV as at 31 March 2015

(or at date left the BFI if earlier)

Real increase in CETV after

adjustment for inflation etc in

2014-15

£’000 £’000 £’000 £’000 £’000

Amanda Nevill

Chief Executive and Accounting Officer

(0-2.5)

(lump sum (0-2.5))

45-47.5

(lump sum: 82.5-85)

740 820 43

Tim Cagney12

Deputy Chief Executive

(0-2.5)

(lump sum (0-2.5))

5-7.5

(lump sum: 0-2.5)

57 61 1

Ed Humphrey

Director of Digital

(0-2.5)

(lump sum (0-2.5))

0-2.5

(lump sum: 0-2.5)

20 24 (4)

David Parkhill


(0-2.5)

(lump sum (0-2.5))

0-2.5

(lump sum: 0-2.5)

3 40 24

Ben Roberts


(0-2.5)

(lump sum (0-2.5))

0-2.5

(lump sum: 0-2.5)

7 29 6

Heather Stewart

Creative Director

(0-2.5)

(lump sum (0-2.5))

50-52.5

(lump sum: 97.5-100)

851 931 47

61

These staff cover both Lottery and Grant-in-Aid and other funded activities. However it is

not possible to break out the element purely attributable to Lottery.

The accrued pensions are the amounts eligible at retirement if the staff member left service at

the relevant date. The transfer values do not represent a sum paid or payable to the

individual, but rather a potential liability of the pension scheme. They have been calculated

using assumptions certified by a qualified actuary.

Termination payments

The termination payments payable to employees were:

Exit Package Cost Number of compulsory

redundancies

Number of other departures

Total

2015 2014 2015 2014 2015 2014

<£10,000 - - 1 1 1 1

£10,000-£25,000 - 1 1 5 1 6

£25,000-£50,000 - - 2 2 2 2

£50,000-£100,000 2 - 1 - 3 -

£100,000-£150,000 - - - - - -

£150,000 - £200,000 - 1 - 1 -

No of exit packages 2 1 6 8 8 9

Cost £’000 178 11 330 149 508 160

Hutton Review of Fair Pay

The BFI is required to disclose the relationship between the remuneration of the

highest-paid member of the Executive team in their organisation and the median

remuneration of the organisation’s workforce.

The banded remuneration of t h e Director of Business Affairs in the financial year was

£140,000 - £145,000 (2014: £135,000 - £140,000). This was 5 times (2014: 5) the median

remuneration of the workforce, which was £30,351 (2014: £30,048).

Total remuneration includes salary, non-consolidated performance-related pay, benefits-in-

kind as well as severance payments. It does not include employer pension contributions

and the cash equivalent transfer value of pensions.

Francesca Vinti

Director of Development

(0-2.5)

(lump sum (0-2.5))

12.5-15

(lump sum:15-17.5)

156 179 11

62

Off Payroll EngagementsDuring the year ended 31 March 2015 the BFI had 5 off payroll engagements (2014: 6) for more than £220 a day and that lasted for longer than 6 months. These have been subject to a risk based assessment as to whether assurance is required that individuals are paying the correct amount of tax and, where necessary, that assurance has been sought.

CORPORATE INFORMATION

British Film Institute

The British Film Institute is incorporated by Royal Charter and is registered in England and

Wales as a charity, number 287780.

Registered Office: 21 Stephen Street, London W1T 1LN

www.bfi.org.uk

Auditor

Comptroller and Auditor General

National Audit Office

157-197 Buckingham Palace Road, London SW1W 9SP

Bankers

Lloyds Bank plc

113-117 Oxford Street, London W1D 2HW

Internal auditors

Moore Stephens

150 Aldersgate Street, London, EC1A 4AB

Solicitors

Farrer & Co

66 Lincoln’s Inn Fields, London WC2A 3LH

Approval of Annual Report

This annual report includes information that the BFI is required to disclose in accordance with

the Government Financial Reporting Manual (FReM) and accounts direction in a Strategic

Report for the Lottery activities. A separate report has therefore not been prepared.

The Annual Report, including the Remuneration Report, was approved by the Board

of Governors for signature on 14 July 2015.

Amanda Nevill Alison Cornwell

Chair, Audit, Risk and Governance Committee Chief Executive

63

http://www.bfi.org.uk/

http://www.bfi.org.uk/

GOVERNANCE STATEMENT

Scope of Responsibility

How the BFI is governed is covered on pages 51 to 57. The Board of Governors is aware of the

requirements of the UK Corporate Governance Code and work is continuing to ensure

compliance.

As Accounting Officer and as Chair of the Board of Governors, we have responsibility for

maintaining a sound system of internal control that supports the achievement of policies, aims

and objectives set by the Department for Culture, Media and Sport (DCMS), whilst safe-

guarding the public funds and the British Film Institute’s (BFI) assets for which we are

responsible in accordance with the responsibilities assigned to us in Managing Public Money and

as Trustees of the Charity. With the exception of the departure referred to on page 52 in relation to the deferral of the annual Board Assessment, the BFI complies with the UK Corporate

Governance Code to the extent relevant to a Charity and Lottery distributing body.

We also have responsibility, as defined in the BFl’s Funding Agreement with the DCMS and the

Management Statement and Financial Memorandum, for leading and managing the work of

the BFI to fulfil its policies, aims and objectives, and upholding its values. The Accounting

Officer reports to the Board of Governors of the BFI and we formally meet regularly with DCMS.

The purpose of the system of internal control

The system of internal control is designed to manage to a reasonable level rather than to

eliminate the risk of failure to achieve policies, aims and objectives; it can therefore only

provide reasonable and not absolute assurance of effectiveness.

The system of internal control is based on an ongoing process designed to identify and prioritise

the risks to the achievement of BFI policies, aims and objectives, to evaluate the likelihood of

those risks being realised and should they be realised, to manage them efficiently, effectively

and economically. The system of internal control includes adequate arrangements for detecting

and responding to inefficiency, conflict of interest and fraud, and prioritises those risks

associated with the custody of assets and potential loss of Exchequer and Lottery grants. The

system of internal control has been in place for the year ended 31 March 2015 and up to the

date of approval of the annual report and financial statements, and accords with Treasury

guidance.

Capacity to handle risk

As Accounting Officer and Chair of the Board of Governors we have overall responsibility for the

BFI’s risk management framework, and are supported in its implementation by the Senior

Management Team and staff who are trained and equipped to assess and manage risk in a way

appropriate to their authority and duties. Attendance at Board of Governors meetings in 2014-

15 is detailed at page 56.

The Audit, Risk and Governance Committee, chaired by Alison Cornwell, gives independent

64

advice and guidance to us, in our roles as Accounting Officer and Chair, and to the Board of

Governors as a whole, on the adequacy of audit arrangements (both internal and external), on

the implications of assurances provided in respect of risk and control at the BFI and oversees the

work of the internal auditors, as well as providing guidance as to best practice. Attendance at

Audit, Risk and Governance Committee meetings in 2014-15 is detailed at page 57.

The Remuneration Committee provide oversight and approval of remuneration and

performance for senior staff members including the Accounting Officer.

Further advice and guidance as to best practice is received from the internal and external

auditors (who attend meetings of the Audit, Risk and Governance Committee), the DCMS, and

other comparable organisations.

Terms of reference for the Audit, Risk and Governance Committee and the Remuneration

Committee are reviewed by the Board of Governors and are held by the Board Secretary.

The risk and control framework

A risk management policy has been established setting out the BFI’s attitude to the

assessment, limitation and mitigation of risk in the achievement of our objectives.

The BFI has incorporated risk management in planning and decision making and maintains an

organisation-wide risk register. Policy and operational risks both in the organisation and

from external factors are identified through our business planning cycle and the annual

operational planning cycle, and are evaluated by the Executive Team. We also consider the risks

associated with holding and safeguarding information for operational or financial reporting

purposes.

In 2014-15 the risk register as noted by the Executive Team and updated in March included 13

corporate risks. The most significant are:

RISK MITIGATING ACTIONS

Continuing pressure on Government funding may result in a significant reduction in grant-in-aid. Most notably the key decision point is the Comprehensive Spending Review planned for Autumn 2015.

BFI has created a 10 year plan which will significantly reduce our need for GiA funding. The plan, which requires a major investment in our estate, is being considered by DCMS.

BFI does not have the resource to support key film festivals, specifically the London Film Festival (LFF), after 2015-16.

BFI is implementing the recommendations of a report commissioned to look at the options to reduce the net cost of LFF.

Reduction sponsorship funding from corporate and commercial partners.

A fundraising strategy has been developed along with detailed operational plans

Risk management and internal control are embedded in the processes of the organisation and

are considered and reviewed on a regular basis by management. For example, the Lottery

65

Finance Committee (LFC), who ultimately sign off on lottery commitments, consisted of

representatives of the relevant fund, finance and business affairs and was independently

chaired by the Accounting Officer or the Head of Business Affairs. Any perceived risks arising in

making an award were thus discussed at the time the funding decision was made and

appropriate mitigating action taken, whilst allowing decision-making, oversight and control to

be maintained of the decisions by the respective funds. The committee was updated on the

progress of the funded projects to allow timely action to mitigate risks, protect funds and ensure

that the ultimate purpose of the award is fulfilled.

For the regularly funded organisations, such as Creative England, Film London, Into Film,

alongside regular oversight and monitoring, a series of regular formal governance meetings

were held with the recipients throughout the year to discuss progress against key performance

and risk indicators incorporated in their business plans and funding agreements.

The work of the BFI’s internal audit service, provided by Moore Stephens, operated to standards

set out in the Public Sector Internal Audit Standards was developed from an analysis of BFI’s UK exposure.

In 2014-15 internal audit reports covered:

Film Lottery Funding (Lottery Grant Process)

Business Continuity Planning

Into Film

Business Planning, Budgeting and Monitoring

Unlocking Film Heritage

Procurement

Copyright Procedures

People Planning

Key Financial Controls

At the Audit, Risk and Governance Committee meeting on 25 June 2015, the Internal Auditors

gave their Annual opinion. They noted that although a reduced system of internal control was

operated during the introduction of a new finance system they were able to advise the

Committee that; there was an adequate and effective system of governance, risk management

and internal control to address the risk that management's objectives are not fully achieved.

The analysis of risk and the internal audit plans are endorsed by the BFI’s Executive Team, the

Audit, Governance and Risk Committee and are approved by the Accounting Officer.

In line with Cabinet Office guidance in relation to information risk, the Finance Director is the

Senior Information Risk Owner. Working with the Internal Auditor, all the systems and

databases operated by the BFI are kept under review and periodic updates provided to the

Audit, Governance and Risk Committee.

In addition, the BFI has in place a wide range of policies, for instance relating to

corporate governance, conflicts of interest, financial management (including fraud), health and

safety, training and development and information technology. These are periodically reviewed

66

and updated.

The internal communications process ensures that all staff are informed about key decisions on

a timely basis through appropriate means. There is also an external communications strategy

that ensures stakeholders, Parliament, press, funded organisations and projects, the industry at

large, and members of the general public receive appropriate and reliable information.

Progress in achieving objectives set in the strategic plan is monitored by Board and Senior

Management. The Board receive appropriate regular financial reporting, enabling monitoring

against financial targets.

Review of effectiveness

The Board is responsible for considering its performance and reviewing its effectiveness,

including assessing the quality of the information it receives on an ongoing basis, and judge that

it is of a satisfactory standard. Papers and reports are concise, relevant and timely. The

Governors receive appropriate updates on the BFI’s financial positions, forecasts, risks and

performance against strategic goals at their scheduled meetings.

As Accounting Officer and Chair of the Board of Governors, we have responsibility for reviewing

the effectiveness of the system of internal control. Our review is informed by the work of the

internal auditors and the Senior Management within the BFI who have responsibility for the

development and maintenance of the internal control framework, and comment made by the

external auditors in their management letters and other reports. We have been advised on the

implications of the results of our review of the effectiveness of the system of internal control by

the Board and the Audit, Risk and Governance Committee, and a plan to address any

weaknesses and ensure continuous improvement is in place.

In respect of risk management the responsibilities of the Executive Team are to:

• manage risk in their own areas of responsibility through the implementation of risk

mitigation processes and by following the BFI’s risk policy;

• translate the risk register into day-to-day operational planning within teams; and

• report to the Accounting Officer on the status of risks and controls.

The Board receives reports from the Chair of the Audit, Risk and Governance Committee, and

from the Accounting Officer and managers, on the steps taken to manage risks, including

progress reports on key activities and projects, as well as on new risks that may arise both

internally within the organisation and due to external factors such as the political and economic

environment of both the industry and the public sector.

The Internal Auditor provides audit reports on the areas of activity within the BFI. The reports

include the Internal Auditor’s independent opinion on the adequacy and effectiveness of the

BFI’s system of internal control during the year together with recommendations for

improvement.

67

We take assurance from assessment of the risk register, from the business and budget

planning cycle, from the decision approval and operational procedures and from the

reviews of, and assurance received from, delegate bodies that appropriate risk

management procedures are in place.

Additionality

Lottery applications and assessment processes are designed to ensure that awards made will be

in line with the achievement of policies, aims and objectives set by the DCMS and the mission

and values of the BFI, as well as the requirements of the National Lottery etc. Act 1993 as

amended. The BFI considers that Lottery funding is distinct from government funding and adds

value. Although it does not substitute for Exchequer expenditure, where appropriate it

complements government and other programmes, policies and funding.

Administrative Costs Target

The BFI acknowledges the request of the DCMS that by the year ending March 2015, all lottery

distributors have a target on costs associated with Lottery grant processing of 5% of

incoming resources, with a maximum gross Lottery administration cost of 8%.

In the year, overheads attributed to lottery (excluding restructuring costs) were £5.1m (2014:

£5.0m), with total incoming resources of £58.7m (2014: £51.5m) – a gross administration cost of

8.7% (2014: 9.8%). The prime causes of the percentage decrease are the control of costs at the

same level as the prior year (a real terms reduction) coupled with a higher level of proceeds from

the National Lottery of £52.8m (2014: £44.9m). Administration costs of £2.8m (4.7% of incoming resources) are deemed attributable to grant processing (2014: £2.4m, 4.7%) and

remain within the targeted 5%. Other overheads include direct Film Fund costs associated with

the development of projects and other operational costs.

We can confirm that in our opinion:

• the BFI complies with its current Financial Directions, Funding Agreement, Management

Statement and Financial Memorandum and the requirements of a Charity;

• the BFI complies with DCMS guidelines as issued to it, including obtaining relevant approvals

and observing the requirements of spending controls;

• adequate audit arrangements, both internal and external, are in place to support us in

reviewing the systems of internal control;

• adequate arrangements are in place to detect and respond to inefficiency, conflicts of

interest and fraud and to minimise losses of Lottery and other funds;

• the BFI has drawn up and maintains risk assessment and control procedures and risk

registers;

• the BFI has complied with Cabinet Office guidance on information risk and has suffered no

protected personal data incidents during 2014-15 or during previous years, and has made no

reports to the Information Commissioners Office; and

• adequate systems of internal control were operational during the year and no

significant weaknesses have been uncovered.

68

The BFI will continue to strive to improve the systems of internal control in place in

relation to its management, and processes to maximise our operational efficiency as a

Lottery Distributor. This included in 2014-15 replacing the obsolete Finance, HR and

Payroll software applications to provide the opportunity of capturing further refinements

in internal control.

Amanda Nevill Alison Cornwell

Chair, Audit, Risk and Governance Committee Chief Executive

69

BFI GROUP AND CHARITY FINANCIAL STATEMENTS

STATEMENT OF GOVERNORS AND ACCOUNTING OFFICER’S RESPONSIBILITIES

The Governors as the trustees of the Charity are responsible for preparing the Trustees' Annual

Report and the group and charity financial statements in accordance with applicable law and United

Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). The

Governors delegate power and responsibility to the Chief Executive for the day to day operation of

the organisation. As Accounting Officer for government reporting purposes the Chief Executive is

also responsible for reporting to DCMS, one of our main funders.

The law applicable to charities in England and Wales requires the Governors and Chief Executive to

prepare accounts for each financial year which give a true and fair view of the state of affairs of the

group and charity and of the incoming resources and application of resources, changes in funds, and

cash flows for the financial year. In preparing these financial statements, the Governors and Chief

Executive are required to:

• select suitable accounting policies and apply them consistently;

• make judgments and estimates that are reasonable and prudent;

• observe the methods and principles in the Charities SORP or HM Treasury’s Financial Reporting

Manual as applicable;

• state whether applicable accounting standards have been followed; and

• prepare the financial statements on the going concern basis unless it is inappropriate to assume

that the Charity will continue in operation.

The Governors and Chief Executive are responsible for keeping proper accounting records which are

such as to disclose, with reasonable accuracy, the financial position of the Charity at any time, and

to enable them as trustees to ensure that the accounts comply with applicable law. The Governors

and Chief Executive are also responsible for safeguarding the Charity’s assets and ensuring their

proper application in accordance with the Charities Act 2011; National Lottery etc. Act 1993, the

Royal Charter and Managing Public Money issued by HM Treasury, and hence for taking reasonable

steps for the prevention and detection of error, fraud and other irregularities.

The Governors and Chief Executive are responsible for the maintenance and integrity of the charity

and financial information included on the charity's website. Legislation in the United Kingdom

governing the preparation and dissemination of financial statements may differ from legislation in

other jurisdictions.

The Governors and Chief Executive confirm that they have met the responsibilities set out above

and complied with the requirements for preparing the accounts. The charity and group financial

statements set out on pages 73 to 94, have been compiled from and are in accordance with the financial records maintained by the Governors and Chief Executive.

The Board of Governors has approved a Code of Conduct which reflects the principles laid down in

the Code of Best Practice for board members of Public Bodies and maintains a Register of Interests

of board members. This Register is available for inspection at the BFI’s registered offices at 21

Stephen Street, London W1T 1LN, on request to the Board Secretary.

70

INDEPENDENT AUDITOR’S REPORT TO THE GOVERNORS OF THE BRITISH FILM INSTITUTE

I have audited the financial statements of the British Film Institute for the year ended 31 March 2015 under the Charities Act 2011. The financial statements comprise: the Consolidated Statement of Financial Activities, the Consolidated and Charity Balance Sheets, the Consolidated Cash Flow Statement and the related notes. These financial statements have been prepared under the accounting policies set out within them. I have also audited the information in the Remuneration Report that is described in that report as having been audited.

Respective responsibilities of the Governors, Accounting Officer and auditor

As explained more fully in the Statement of Governors and Accounting Officer’s Responsibilities, the

Governors and the Accounting Officer are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. My responsibility is to audit and express an opinion on the financial statements in accordance with the Charities Act 2011. I conducted my audit in accordance with International Standards on Auditing (UK and Ireland). Those standards require me and my staff to comply with the Auditing Practices Board’s Ethical Standards for Auditors.

Scope of the audit of the financial statements

An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the British Film Institute’s and the group’s circumstances and

have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the British Film Institute; and the overall presentation of the financial statements. In addition I read all the financial and non-financial information in the Annual Report and Governance Statement to identify material inconsistencies with the audited financial statements and to identify any information that is apparently materially incorrect based on, or materially inconsistent with, the knowledge acquired by me in the course of performing the audit. If I become aware of any apparent material misstatements or inconsistencies I consider the implications for my report.

I am required to obtain evidence sufficient to give reasonable assurance that the expenditure and income recorded in the financial statements have been applied to the purposes intended by Parliament and the financial transactions recorded in the financial statements conform to the authorities which govern them.

Opinion on regularity

In my opinion, in all material respects the expenditure and income recorded in the financial statements have been applied to the purposes intended by Parliament and the financial transactions recorded in the financial statements conform to the authorities which govern them.

Opinion on financial statements

In my opinion:

the financial statements give a true and fair view of the state of the group’s and of the British Film

Institute’s affairs as at 31 March 2015 and of its incoming resources and application of resourcesfor the year then ended; and

the financial statements have been properly prepared in accordance with the Charities Act 2011.

71

In my opinion:

the part of the Remuneration Report to be audited has been properly prepared; and

the information given in What we delivered this year, Key Performance Measures, FinancialReview, Environmental Sustainability, and How the BFI is Governed sections of the AnnualReport for the financial year for which the financial statements are prepared is consistent with thefinancial statements.

Matters on which I report by exception

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

adequate accounting records have not been kept; or

the financial statements and the part of the Remuneration Report to be audited are not inagreement with the accounting records; or

I have not received all of the information and explanations I require for my audit; or

the Governance Statement does not reflect compliance with HM Treasury’s guidance.

Sir Amyas C E Morse Date



157-197 Buckingham Palace Road

Victoria

London

SW1W 9SP

72

Opinion on other matters

16 July 2015

STATEMENT OF FINANCIAL ACTIVITIES

YEAR ENDED 31 MARCH 2015Restated

Non-Lottery Total Lottery 2015 2014

Unrestricted Restricted Non-Lottery Restricted Total Total

Note £'000 £'000 £'000 £'000 £'000 £'000

Incoming resources

Incoming resources from charitable activities (earned income)

Education, Learning & Audiences 16,523 - 16,523 - 16,523 15,703 Film Heritage 835 - 835 - 835 960Incoming resources from generated funds

Voluntary income 24 Lottery proceeds 16 - - - 52,990 52,990 45,101 Lottery recoupment income - - - 941 941 2,214 Revenue Grant in Aid funding 5 14,936 - 14,936 - 14,936 22,374 Capital Grant in Aid funding 5 561 - 561 - 561 1,927 Other grants, legacies and donations 24 8,825 2,311 11,136 45 11,181 3,751 Donated services and facilities 6 - 1,395 1,395 - 1,395 1,441

Investment income 7 11 - 11 7 18 13

Total incoming resources 41,691 3,706 45,397 53,983 99,380 93,484

Resources expended

Charitable activities

Education, Learning & Audiences 8 (27,481) (2,405) (29,886) (3,166) (33,052) (43,171) Supporting British Film 8 (5,764) (269) (6,033) (28,025) (34,058) (60,720) Film Heritage 8 (10,639) (4,634) (15,273) (216) (15,489) (14,720)

Total charitable activities (43,884) (7,308) (51,192) (31,407) (82,599) (118,611)

Costs of generating funds

Costs of generating voluntary income 8, 24 (1,090) - (1,090) - (1,090) (1,483)Governance costs 8 (321) - (321) (97) (418) (403)Restructuring costs 8 (62) - (62) (473) (535) 110

-Total resources expended 8 (45,357) (7,308) (52,665) (31,977) (84,642) (120,387)

-Net (outgoing) / incoming resources (3,666) (3,602) (7,268) 22,006 14,738 (26,903)

-Gross transfers between funds 23 1,208 (1,016) 192 (192) - -

Net (outgoing) / incoming resources before

other recognised gains and losses (2,458) (4,618) (7,076) 21,814 14,738 (26,903)

Other recognised gains / (losses)

Actuarial losses on defined benefit pension scheme 10 (17,872) - (17,872) (1,148) (19,020) (1,513)Movement in fair value reserves 15 - - - (2,231) (2,231) (1,868)Movement in fixed asset revaluation reserves 11 2,014 2,439 4,453 - 4,453 2,182

Net movement in funds (18,316) (2,179) (20,495) 18,435 (2,060) (28,102)

Reconciliation of funds

Total funds brought forward (7,974) 34,892 26,918 868 27,786 55,888

Total funds carried forward 23 (26,290) 32,713 6,423 19,303 25,726 27,786

All gains and losses recognised in the year are included in this Statement of Financial Activities and all activities are classified as continuing. The accompanying notes on pages 76 to 94 form an integral part of this Statement of Financial Activities.

2015

73


CONSOLIDATED AND CHARITY BALANCE SHEET

As at 31 MARCH 2015

Restated Restated

Note Group Group Charity Charity

2015 2014 2015 2014

£'000 £'000 £'000 £'000

Fixed assets:

Tangible fixed assets 11 51,213 49,124 51,213 49,124Intangible fixed assets 13 984 1,141 - -Investments 14 - - 2,393 2,393

Total fixed assets 52,197 50,265 53,606 51,517

Current assets:

Film Rights 15 7,561 15,358 7,561 15,358National Lottery Distribution Fund 16 61,160 55,817 61,160 55,817Stocks & work in progress 17 417 388 417 388Debtors 18 5,845 5,030 6,672 6,149Cash at bank and in hand 10,541 8,278 7,833 5,285

Total current assets 85,524 84,871 83,643 82,997

Liabilities:

Creditors: amounts falling due within one year 20 (38,292) (36,515) (37,663) (35,893)

Net current assets 47,232 48,356 45,980 47,104

Total assets less current liabilities 99,429 98,621 99,586 98,621

Creditors: amounts falling due after more than one year 22 (13,816) (30,812) (13,816) (30,812)Defined benefit pension scheme net liability 10 (59,887) (40,023) (59,887) (40,023)

Net assets including defined

benefit pension scheme net liability 25,726 27,786 25,883 27,786(2,060) (1,903)

-Funds:

Restricted income funds Restricted income funds excluding Lottery and pensions liability 22,276 26,357 22,276 26,357 Restricted fixed asset revaluation reserve 10,437 8,535 10,437 8,535

23 32,713 34,892 32,713 34,892

Lottery reserve 20,828 (1,026) 20,828 (1,026) Lottery fair value reserve 1,326 3,557 1,326 3,557 Lottery share of pension reserve (2,851) (1,663) (2,851) (1,663)

23 19,303 868 19,303 868

Total restricted funds 52,016 35,760 52,016 35,760

Unrestricted income funds Unrestricted income funds excluding pensions asset/liability 24,153 24,963 24,310 24,963 Unrestricted fixed asset revaluation reserve 6,592 5,423 6,592 5,423

30,745 30,386 30,902 30,386 Pension reserve (57,035) (38,360) (57,035) (38,360)Total unrestricted funds 23 (26,290) (7,974) (26,133) (7,974)

Total funds 23 25,726 27,786 25,883 27,786- -

- 2,060.00- 1,903.00-

The accompanying notes on pages 76 to 94 form an integral part of this consolidated and Charity balance sheet.

Amanda NevillAlison CornwellChair, Audit, Risk and Governance Committee

Chief Executive

The Governors and Chief Executive Officer of the BFI, registered charity number 287780, approved these financial statements and authorised their signature on 14 July 2015.

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CONSOLIDATED CASH FLOW STATEMENT

As at 31 MARCH 2015

Restated

2015 2014

Notes £'000 £'000

Net cash inflow from operating activities 3 10,065 3,400Return on investments and servicing of finance 4 (5,325) (2,963)Capital expenditure and financial investment 4 (2,477) (2,452)Acquisitions and disposals 4 - 498Increase / (decrease) in cash in the year 4 2,263 (1,517)

The accompanying notes on pages 76 to 94 form an integral part of this consolidated cash flow statement.

75

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2015

Basis of preparation


Incoming resources

Income from charitable activities: includes a wide range of chargeable activities including sales of cinema tickets, DVDs, film and footage and sponsorship income.

Lottery proceeds are the BFI's share of Lottery income as notified to the BFI by the National Lottery Distribution Fund (NLDF).

All incoming resources are included in the SOFA when the Charity is legally entitled to the income, entitlement is virtually certain and the amount can be quantified with reasonable accuracy.The following specific policies apply to categories of income:

Donated services and facilities: including gifts in kind, are included in income and expenditure at the value to the Charity where this can be quantified (see note 6).

Grants and deferred income: whilst grants, including Grant-in-Aid, are typically accounted for in full upon receipt, where related to performance and specific deliverables, grants are accounted for as the Charity earns the right to consideration by its performance. Where income is received in advance of its recognition, it is deferred and included in creditors: amounts falling due within one year. Where entitlement occurs before income being received, the income is accrued. Capital grants are accounted for as income as soon as they are receivable. Grant-in-Aid refers to direct grants from the Department for Culture, Media and Sport for the general use of the BFI and also ring-fenced funding for other appropriate bodies delivering activities in accordance with the BFI's charitable objects.

At the year end, the BFI held total reserves of £25.7m (2014 Restated: £27.8m) which included unrestricted cash balances of £5.9m (2014: £5.0m) and free reserves of £1.6m (2014: £1.6m) (note 23).

The BFI engages in a diverse range of activities in order to meet its objects, which are described in more detail in the Governors' Report. In the financial statements, the BFI categorises itsactivities across its three strategic priorities:

Lottery recoupment income is income from film rights in excess of the original value of the right and is taken to the SOFA as film recoupment income and, if appropriate, through the fair valuereserve.

1. ACCOUNTING POLICIES

Education, Learning & Audiences - expanding education opportunities and boosting audience choice across the UK;Supporting British Film - investing in film development, production and skills; andFilm Heritage - investing in preservation, interpretation and access.

The principal accounting policies are summarised below. The accounting policies have been applied consistently throughout the year and the preceding year.

The statement of financial activities (SOFA) and balance sheet consolidate the financial statements of the Charity, including its Lottery distribution activities, and all its subsidiary undertakings(see note 14 for details of subsidiaries and associate or jointly controlled entities). The results of the subsidiaries are consolidated on a line by line basis within the SOFA. A separate Incomeand Expenditure account has not been presented for the Charity, as permitted by paragraph 397 of the SORP. However, a summary Operating Statement is included at note 23. Thebalance sheet and related notes show the assets and liabilities of the Group as well as the Charity. Separate accounts are also prepared for the BFI's Lottery distribution activities as requiredunder the National Lottery etc Act 1993 and these are attached to the consolidated accounts.

The financial statements of the BFI are prepared under the historical cost convention, as modified for revaluation of certain categories of fixed assets and in accordance with the Charities Act, the Statement of Recommended Practice (SORP), "Accounting and Reporting by Charities Statement of Recommended Practice (revised 2005)" and applicable accounting standards. The requirements of the National Lottery etc Act 1993 were revised in 2014-15 by an Accounts Direction from the Department for Culture, Media and Sport (DCMS) so awards are accounted for on an accruals basis rather than a commitment basis and as a result the previous definitions and treatments of hard and soft commitments have changed in the Lottery accounts. The BFI has taken the opportunity to review the award commitments, in the context and experience of having operated the Lottery awards since April 2011. As a result, consistent with the above bases of preparation, a number of awards should have been recognised earlier and in previous years under the Charities SORP, leading to the restatement of the prior year figures in these financial statements (see note 2).

Going concern

The accounts have been prepared on a going concern basis. After making enquiries, the Board of Governors has a reasonable expectation that the BFI has adequate resources to continue for at least the next 12 months following signature of the accounts provided that it receives ongoing funding and sales based on past experience. In the year to 31 March 2015 the BFI received £14.9m (2014: £22.4m) of revenue grant-in-aid from the Department for Culture, Media and Sport (DCMS) reflecting its commitment to recognising the cultural impact of film, the BFI National Archive and the nation’s heritage. This funding continues through 2015-16.

Since the BFI became the government's lead body for film in 2011, the BFI has actively engaged with the government in developing and delivering the strategy for film in the UK which will impact on future funding. The BFI is a Lottery distributor, with a statutory right to receive a share of the National Lottery Distribution Funds (NLDF), and is considered by government to be a "Non Departmental Public Body", both of which give support to our future financial stability.

Much of the assets of the BFI are either restricted and/or long term fixed assets and pressure therefore remains on the underlying Charity, especially with the prospect of further government funding cuts. Excluding the restricted activities, the BFI recorded a deficit (before other recognised gains/losses) in the year of £2.5m (2014: deficit £2.2m), albeit after non-cash transactions including depreciation of £4.8m (2014: £4.3m) and FRS17 net costs of £0.8m (2014: £1.1m). The FRS17 pension liability has increased to £59.9m (2014: £40.0m) contributing to negative unrestricted reserves of £26.3m (2014: £8.0m). This is being addressed in the longer term with additional contributions being made to the London Pension Fund Authority, based on the triennial actuarial valuations, and these contributions are factored into our forward plans.

As at 31 March 2013, the latest actuarial valuation date, the deficit to be funded was £12.7m and this is being addressed over 14 years, subject to future triennial valuations. This isconsiderably less than the deficit in the accounts of £59.9m (2014: £40.0m) under FRS17 and the governors are satisfied that this approach is appropriate.

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1. ACCOUNTING POLICIES (CONTINUED)

Resources expended

Grant Awards

Charitable expenditure on collections

Long leasehold property 1-7% per annumShort leasehold property 10% per annumPlant & fixtures valued with leasehold property 10-20% per annumComputer and other IT equipment 10-33% per annumFurniture, fixtures and fittings 10-33% per annumPlant and machinery 10-33% per annumAssets in the course of construction Depreciation commences upon completion of construction

Tangible fixed assets, depreciation and impairment

Expenditure on tangible fixed assets costing £5,000 or more and with a useful economic life of at least 3 years is capitalised and included at cost. Leasehold land and buildings, together with some associated plant and fixtures, are included at a valuation based on either Existing Use Value or Depreciated Replacement Cost as appropriate.

In the Governors' opinion, conventional valuation approaches lack sufficient reliability and any valuation is likely to incur significant costs that are likely to be onerous. Even if valuations could be obtained this would not be commensurate with any benefits to the BFI's management, curatorial staff, the public, or other users of the financial statements. For this reason the collections, large proportions of which were gifted to the BFI at nil cost and are incomparable in nature, are not recognised in the BFI's balance sheet.

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category concerned. Where costs cannot be directlyattributed to particular headings they have been allocated to activities on a basis consistent with use of the resources (see Note 8). Costs of generating funds are fund-raising and publicitycosts incurred in seeking voluntary contributions and do not include the cost of disseminating information in support of charitable activities. Governance costs comprise all costs identified aswholly or mainly attributable to ensuring the public accountability of the Charity and its compliance with regulation. These costs include external and internal audit and Governors' costs.

Non-Lottery grant expenditure is charged to the statement of financial activities in the year in which funded activities take place. Any amounts unpaid from grants at the year end are shown in the balance sheet as creditors.

In line with our five year Business Plan, Film Forever 2012-17, multi-year Lottery awards were made covering the four years to March 2017, including those awards to Into Film in respect of our education strategy, to Creative Skillset in respect of industry skills and training and for the project Unlocking Film Heritage. In line with the National Lottery etc Act 1993 and the BFI Lottery Accounts Direction, which are consistent with the BFI's basis of preparation of accounts as outlined above, these multi-year awards have been accounted for on a commitment basis with the fully committed funds being taken to the statement of financial activities in the year in which the award was decided and notified to the successful applicant.

The basis of reporting Lottery award commitments is laid out in the revised Accounts Direction from DCMS and the National Lottery etc Act 1993, and continues to align with the reporting requirements of the Charities SORP. Where the BFI has made a firm offer of a grant and notified successful applicants, the award is accounted for within other creditors as a grant commitment. Where the BFI has agreed to make an award in respect of investing in a film rights project, these are not grants and are accounted for as set out below under financial instruments and film rights.

All expenditure on acquiring, preserving and improving the collection is included in charitable expenditure in the year incurred. In the main, this expenditure is of a curatorial or restoration nature and the Governors are of the opinion that any value attributable to heritage assets or fixed assets would not be material. The collections also comprise donated materials that are not subject to formal valuation.

Heritage assets

Much of the BFI's collection is used, or expected to be used in the future, in its charitable activities. To the extent that the collection comprises heritage assets, there is an absence of reliable cost information, a diverse range of assets held, a lack of comparable market values and a complex mixture of intellectual property rights associated with the assets. As a result the Governors are of the opinion that valuation information cannot be obtained at a cost commensurate with the benefits to users of the financial statements, so a valuation approach is not practicable. Therefore the BFI has adopted a non-recognition approach.

Commitments payable within one year of the balance sheet date are recognised in the statement within creditors as current liabilities. Those payable more than one year from the balance sheet date are shown as creditors payable over more than one year, however, such commitments other than the above multi-year Lottery awards are unlikely in the usual course of business.

The BFI has built the National Archive since its establishment in 1933, consisting of film and other related materials dating back to the 19th century. The BFI develops, cares for and interprets a collection that illustrates the art, history and impact of film, to be held in perpetuity for the public, for their use and for use by the BFI in pursuit of its objectives. The collection is one of the largest and most diverse collections in the world. It includes feature films, documentary and factual films, television programmes, artists film, photographic stills, posters, books and other related materials, held primarily for use in the BFI's activities and charitable objectives, as described in more detail in the Annual Report and below. The Collection Policy was most recently updated in November 2011 and can be found at www.bfi.org.uk. It documents our procedures for acquisition and disposal, documentation, conservation and access and describes our role in a national network of organisations that collect or provide access to film.

For the most part this collection has been acquired by donation, often with restricted usage rights, and as a result there is little in the way of purchase cost. There is also a lack of comparable market values, compounded by the diverse nature of the objects and the volume of the items held. In the opinion of the Governors, reliable information on cost or value is not available for the BFI's collection.

The BFI's leasehold properties BFI Southbank and BFI London IMAX were revalued as at 31 March 2012 by appropriately qualified valuers, Drivers Jonas Deloitte, in accordance with FRS15: Fixed Assets, using Existing Use and Depreciated Replacement Cost methods respectively. The values as at 31 March 2015 and 2014 have been estimated using appropriateindexation, resulting in a net increase in value in the year of £4.5m (2014: increase of £2.2m). The same indexation is applied to acquisitions, starting in the year following the acquisition.

Awards made under the Lotteries Act Section 27 dispensation

Using the power granted by the Section 27 of the National Lottery etc Act 1993, the Secretary of State gave permission in 2012-13 to allow an award of £15,000,000 to the BFI in relation to Unlocking Film Heritage, the BFI's archive strategy as outlined in the Film Forever future plan, for both the national and regional moving image archives. The award was shown on the SOFA as a transfer between funds, reflecting the movement from Lottery restricted reserves to Other restricted reserves.

Revaluation is not applied to those classes of asset which are made up of low value and/or short useful economic life assets or where the historical cost is considered a reasonableapproximation of fair value.

Depreciation is provided on all tangible fixed assets to write off the cost less estimated residual values over their expected useful economic lives. It is calculated on a straight line basis at thefollowing rates from the month of acquisition to the month prior to disposal:

The carrying value of fixed assets is reviewed at least annually. Where the carrying value is considered to be greater than the value of the asset to the activities of the Charity, an impairmentcharge will be made in the year to reflect that loss in value.

77




Intangible fixed assets

Investments

Stocks and work in progress

Pension costs

Operating and finance lease transactions

Film rights represent loans paid and advances paid and payable to filmmakers. All advances to filmmakers are repayable under certain conditions. Where a feature film made with theassistance of the BFI is successfully released, the BFI is entitled to participate in revenues generated by that success. This can lead to repayment of the investment in full, together with ashare of the profits generated by the film.

Movements in impairments shown in the statement of financial activity reflect the net effect of increases and decreases in impairments against film rights in the year. Any impairment may be reversed in part or in full if the valuation understates the fair value of the film right. Advances for development and short film awards are fully impaired in the year of the award, unless there is a reasonable expectation of repayment. These awards are of low value and management do not feel that to include a valuation would have a material impact on the user of these accounts.

Film rights meet the definition of 'available for sale financial assets' under Financial Reporting Standards (FRS25, FRS26 and FRS29) and are therefore shown in the financial statements atfair value. The fair value is based on cash flow and models of future income that may be generated by the film rights asset. The calculations behind these models are based on externalfactors, such as sales agents' estimates, actual sales made, the recoupment order agreed in the financial contract between investors, the skill and expertise of management involved in thiscalculation and review of the historic performance of the portfolio.

When an advance is made (satisfying the definition of an award liability) it is taken to the balance sheet initially at the full value of the award. An assessment is made of the likely repayment ofan advance that will occur over the next three years and the valuation is reduced by impairments to the extent that full repayment of an advance, through actual receipts and the value offuture estimated receipts, is considered doubtful. The initial impairment is calculated either as a standard percentage suggested by historic recoupment performance of that particular type ofaward, or based on the value suggested by future estimated receipts. The approach taken will depend on the stage of the film, the type of award and other external factors.

Income received from a film right is offset against the value of the right on the balance sheet. Income in excess of the original value of the right is taken to the statement of financial activity asfilm recoupment income and if appropriate through the fair value reserve.

For defined benefit pension schemes the amounts charged in resources expended are the current service costs and gains and losses on settlements and curtailments. They are included aspart of staff costs. Past service costs are recognised immediately in the SOFA if the benefits have vested. If the benefits have not vested immediately, the costs are recognised over theperiod until vesting occurs. The interest cost and the expected return on assets are shown as a net amount of other finance costs or credits adjacent to interest. Actuarial gains and losses arerecognised in the Other recognised (losses) / gains.

Defined benefit schemes are funded, with the assets of the scheme held separately from those of the Charity, in separate trustee-administered funds which are part of the London PensionFund Authority (LPFA). The LPFA is a local government pension scheme and the BFI is an Admitted Body member. Pension scheme assets are measured at fair value and liabilities aremeasured on an actuarial basis using the projected unit method and discounted at a rate equivalent to the current rate of return on a high-quality corporate bond of equivalent currency andterm to the scheme liabilities. The actuarial valuations are obtained every three years and are updated at each balance sheet date. The resulting defined benefit asset or liability, net of therelated deferred tax, is presented separately after other net assets on the face of the balance sheet.

For defined contribution schemes, the amount charged to the SOFA in respect of pension costs and other post-retirement benefits is the contributions payable in the year. Differencesbetween contributions payable in the year and contributions actually paid are shown as either accruals or prepayments in the balance sheet.

Payments made under operating leases are charged to the SOFA on a straight line basis over the lease term. There were no finance leases.

Other financial instruments include debtors and creditors that arise directly from Lottery and non-Lottery operations. The main risks arising from the financial instruments are interest rate risk,foreign currency risk and other price risk.

Film rights

Raw materials, stocks and work in progress are valued at the lower of cost and net realisable value. Stocks consist of goods held for resale and work in progress consists of expenditure onDVD and Blu-Ray development carried forward and written off over the expected commercial life of the individual titles.

If the valuation of the film right is in excess of the amount of the award investment from estimated recoupment over the next three financial years, this is taken to a fair value reserve and released to income as the recoupment is received. In the context of the life of a film and its distribution cycle, three years is felt to be a reasonable period over which a meaningful forecast can be taken.

Investments in subsidiaries, associate or jointly controlled entities are stated at cost less provision for impairment.

The principal financial instruments are cash and holdings in the NLDF and film rights, from the adoption of FRS 25 (Financial Instruments: Presentation), FRS 26 (Financial Instruments:Recognition and Measurement) and FRS 29 (Financial Instruments: Disclosures), fall within the definition of Financial Instruments.

Financial instruments

The share of proceeds and investment returns attributed to the BFI has been treated as income within these financial statements.

Film recoupment income

National Lottery Distribution Fund

Balances held in the National Lottery Distribution Fund (NLDF) remain under the stewardship of the Secretary of State for Culture, Media and Sport. The share of these balances attributable to the BFI is as shown in the financial statements at an estimate of market value and, at the balance sheet date, has been certified by the Secretary of State for Culture, Media and Sport as being available for distribution by the BFI in respect of current and future commitments.

In subsequent years the valuations are reviewed to ensure that all revenues due are received and the valuation remains appropriate. The valuations are based on the best availableinformation at the balance sheet date, and particularly in relation to new awards, the valuations will naturally change over time. For instance following the release of a film, the actuality ofsales of territories and box office performance may exceed or fall below the initial valuation.

Films are released in different countries and on different platforms at different times. However, the valuation assessment of the film right covers the full release cycle of the film. Reflectingthis, management will not typically reverse an impairment provision on a film in the first three financial years following the award, unless it is triggered by a cash receipt in the financial year.

Should the full amount of an award for film rights not be utilised, any unused element of the funding will be decommitted. If such a decommitment exceeds the impaired value of the film, then any necessary impairment will be released back to the statement of financial activity so the remaining impairment is not greater than the value of the revised investment value.

Goodwill arising on consolidation represents the excess of the cost of acquisition over the Group's interest in the carrying value/fair value of the identifiable assets and liabilities of asubsidiary, associate or jointly controlled entity at the date of acquisition. Goodwill on acquisition of subsidiaries is separately disclosed. Goodwill is recognised as an asset and reviewed forimpairment annually or on such other occasions that events or changes in circumstances indicate that it might be impaired. Any impairment is recognised immediately in the income statementand is not subsequently reversed. Goodwill is allocated to cash generating units for the purpose of impairment testing. Purchased goodwill arising on consolidation is amortised over theperiod of its expected useful economic life. This is considered to be a period of ten years from the date of acquisition.

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Fund accounting

Foreign currencies

Taxation

Irrecoverable VAT is charged to the cost category to which it relates.

Estimates and judgements

2. PRIOR PERIOD ADJUSTMENT

Year ended 31 March 2014

Prior period

adjustment

Prior period

adjustment

Prior period

adjustment

31 March 2014

(restated)

£'000£'000 £'000 £'000 £'000 £'000

(see 1 below) (see 2 below) (see 3 below)

Statement of financial activities

Resources expended


Education, Learning & Audiences (67,818) 26,080 (1,433) (43,171) Supporting British Film (59,241) (429) (1,050) (60,720) Film Heritage (14,720) (14,720)

Total charitable activities (141,779) 26,080 (1,862) (1,050) (118,611)

Balance sheet

Fixed assets 50,265 - - - 50,265

Current assets 84,871 - - - 84,871

Liabilities:

Trade and other payables (8,317) - - (8,317)Other payables - award commitments (27,848) - (350) (28,198)Creditors: amounts falling due within one year (36,165) - - (350) (36,515)

Creditors: amounts falling due after more than one year (28,250) - (1,862) (700) (30,812)Pension liability (40,023) - - (40,023)

Assets less liabilities 30,698 - (1,862) (1,050) 27,786

Funds

Restricted income funds 34,892 - - - 34,892Lottery reserve - restricted 3,780 - (1,862) (1,050) 868Unrestricted income funds 30,386 - - - 30,386Pension reserve (unrestricted) (38,360) - - - (38,360)

30,698 - (1,862) (1,050) 27,786

Transactions in foreign currencies are recorded at the rate ruling on the date of the transaction. Monetary assets and liabilities are retranslated at the rate of exchange ruling at the balancesheet date and gains and losses charged/credited to the Statement of Financial Activities.

The BFI is a registered charity and as such its income and gains falling within s.505 ICTA 88 or s.256 TCGA 92 are exempt from corporation tax to the extent that they are applied to itscharitable objectives. Its subsidiaries have not incurred a tax charge as they either gift all profits to the BFI or have utilised available tax losses.

Unrestricted funds are funds available for use at the discretion of the Governors in the furtherance of the general objectives of the BFI and which are not subject to externally imposedrestrictions.

Estimates and judgements have been used in the production of these accounts, notably with regard to the valuation of Film Rights as at the year end, which are on the basis of a review of allavailable information with regard to the balance sheet date, including third party evidence and experienced judgement. Further information on this can be found in note 15: Film Rights

Restricted funds are funds to be used in accordance with specific restrictions imposed by donors. The aim and use of each restricted fund is set out in the notes to the accounts. Where theconditions have been met, for example to acquire fixed assets without ongoing restrictions, the related reserves are transferred to unrestricted reserves on the face of the Statement ofFinancial Activities.

Following the change in the Lottery Accounts Direction for 2014-15 issued by DCMS, from 1 April 2014 Lottery awards are to be recorded on an accruals basis rather than a commitmentsbasis as had previously been the case. The BFI conducted a review of Lottery awards and how in practice they have been awarded in the context of the SORP and identified that theseawards should have been recognised in prior periods. The restatement required to the 2013-14 comparative for the effect of the prior period adjustment is shown below.

31 March 2014

published

(1) The review of awards recognition has led to the recognition of £26.1m of awards in the accounts within creditors as at 31 March 2013, where the award had been notified to the grant recipient but contract had not yet been signed or conditions precedent remained outstanding. This adjustment relates primarily to the award of £26m to Film Nation UK/Into Film, previously treated as a soft commitment at 31 March 2013 and crystallising as a hard commitment in 2013-14. This adjustment moves these awards out of 2013-14 and into 2012-13 expenditure and into creditors at 31 March 2013.

In addition, there is a restatement arising from the recognition of two multi-year Talent Network awards, where only the first years' awards were recognised in the published accounts for 2013-14 erroneously.

(2) The additional adjustment required at 31 March 2014 from the awards recognition point change is to recognise £1.9m of new award commitments made during the year.

(3) As a result of the review of recognition points arising from the new Lottery Accounts Direction, it became apparent that in the audited accounts for 2013-14 in respect of the two TalentNetwork awards, the BFI had only recognised the first year of what were multi-year commitments, with the subsequent years only being recognised for the first time in 2014-15. Thisadjustment corrects this, reflecting the awards in line with our accounting policies and recognition point for awards.

The retrospective restatements detailed above have an impact on the statements of cash flows for 2013-14 in respect of three lines in the note 3, Notes to the Cash Flow Statement. Thespecific lines are: Net incoming / (outgoing) resources before other recognised gains and losses; and the associated increase in both creditors due within and after one year.

79

Net movement in funds (51,270) 26,080 (1,862) (1,050) (28,102)



3. NOTES TO THE CASH FLOW STATEMENT

Restated

Reconciliation of changes in resources to net inflow from operating activities: 2015 2014

£'000 £'000

14,738 (26,903)- (498)

(18) (13)4,841 4,329

- 46157 158

5,566 (851)(29) 190

(815) 2,5361,777 12,058

(16,996) 11,252

Net incoming / (outgoing) resources before other recognised gains and losses Less acquisitions and disposalsLess interest receivableDepreciationLoss on fixed asset disposalsAmortisation of goodwillDecrease / (Increase) in film rights(Increase) / decrease in stocks(Increase) / decrease in debtorsIncrease in creditors due within one year(Decrease) / increase in creditors due after one yearNon-cash pension movements 844 1,096

Net cash inflow from operating activities 10,065 3,400

4. ANALYSIS OF CASH FLOWS

2015 2014

£'000 £'000

Return on investments and servicing of financeIncrease in National Lottery Distribution Fund (5,343) (2,976)Interest receivable 18 13

Net cash inflow from return on investments and servicing of finance (5,325) (2,963)

2015 2014

£'000 £'000

Capital expenditure and financial investmentPurchase of tangible fixed assets (2,477) (2,456)Disposal of tangible fixed assets - 4

Net cash outflow from capital expenditure and financial investment (2,477) (2,452)

2015 2014

£'000 £'000

Acquisitions and disposalsAssets transferred from Creative England - 576Liabilities transferred from Creative England - (78)

Net assets transferred from Creative England - 498

a) Reconciliation of net cash flow to movement in net funds 2015 2014

£'000 £'000

Increase / (decrease) in cash in the year 2,263 (1,517)Net funds at 1 April 2014 8,278 9,795

Net funds at 31 March 2015 10,541 8,278

b) Analysis of net funds 1 April 31 March

2014 Cash flow 2015

£'000 £'000 £'000

Cash at bank and in hand 8,278 2,263 10,541

All cash at bank is held with UK commercial banks.

5. OTHER SIGNIFICANT TRANSACTIONS

a) Grant-in-Aid - DCMS

Income from DCMS 2015 2014

£'000 £'000

Revenue Grant in Aid funding 14,936 22,374

Capital Grant in Aid funding 561 1,927

Revenue grant funding in the year is lower due to the timing of part of our funding, amounting to £7.5m, which was received in 2012-13. In the year this lower funding has been matched by an increase in other grants and donations.

Capital grant funding in the prior year was boosted by one-off funding of £0.9m.

Improve education about the moving image;

b) Governors

The balances carried forward at the end of the year are £nil (2014: £nil) for unrestricted and restricted funds.

Grant-in-Aid is spent in accordance with the funding agreement between the BFI and DCMS. The common objectives are to:

The Governors neither received nor waived any emoluments during the year (2014: £nil). Governors expenses amounted to £144 in the year (2014: £769). This primarily represents reimbursed travel for one governor (2014: one). No payments were made in the year for services (2014: £nil).

DCMS has been the BFI's largest source of funding, excluding Lottery income. They have therefore been included in this category in order to provide supplementary disclosure. During theyear, the BFI had the following material transactions with DCMS:

Extend & improve access to film culture, serving the diverse geographical needs of the UK's nations and regions and recognising the differing needs of rural, suburban and metropolitan locations;

Support & encourage cultural diversity and social inclusiveness; and promote film activity in the nations and regions, and ensure that national and regional bodies work in concert towards common goals.

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5. OTHER SIGNIFICANT TRANSACTIONS (CONTINUED)

c) BFI Trust

2015 2014

£'000 £'000

Incoming resources from generated funds - Other grants, legacies and donations includes:

Grants receivable from BFI Trust 8,937 950

Resources expended - Charitable activities includes:

Rental of leasehold premises (1,515) (1,515)

6. DONATED SERVICES AND FACILITIES

2015 2014

£'000 £'000

Publicity and advertising 762 694Buildings and facilities 226 206Services and equipment hire 245 404Food and drink 99 71Other goods 63 66

1,395 1,441

7. INVESTMENT INCOME

2015 2014

£'000 £'000

Bank interest receivable 18 13

8. TOTAL RESOURCES EXPENDED Restated

Direct Allocated Allocated 2015 2014

Costs Pension charges Support costs Total Total

£'000 £'000 £'000 £'000 £'000

Education, Learning & Audiences (28,495) (2,023) (2,534) (33,052) (43,171)Supporting British Film (33,756) (194) (108) (34,058) (60,720)Film Heritage (12,323) (1,690) (1,476) (15,489) (14,720)Costs of generating voluntary income (1,090) - - (1,090) (1,483)Governance costs (418) - - (418) (403)

(76,082) (3,907) (4,118) (84,107) (120,497)

2015 2014

Nature of cost Allocation basis £'000 £'000

IT and finance support Combination of head count and departmental spend (2,036) (1,970)Human resources Head count (389) (415)Premises and utilities Combination of floor area and head count (721) (703)Communication and marketing Direct spend and percentage of income generated (563) (533)Other overheads Combination of time and departmental spend (409) (366)-Total support (4,118) (3,987)

Pension cost (Note 10) Net revenue account cost (3,907) (4,061)

2015 2014

£'000 £'000

Governance costs:

Audit fees: Charity (excluding Lottery) (99) (100)Audit fees: Lottery (52) (40)Audit: subsidiaries (British Screen group of companies) (8) (13)Audit: subsidiary (British Film Institute (Big Screen) Limited) (2) (9)Audit of UK Media Desk grant claim (4) (3)Trustees costs (13) (24)Corporate planning (240) (214)

Total governance (418) (403)

Restructuring Costs (535) 110

There were no material related party transactions involving Governors in their personal or business capacities other than Lottery and Grant-in-Aid awards disclosed in Note 32. The Charity has purchased insurance to indemnify the Governors against the consequences of any neglect or default on their part. The cost amounted to £13,878 (2014: £12,522), which includes cover for Governors and Officers of the Charity but also covered management liability, crime and employment practices liability for the organisation as a whole.

Support services, including staff and other costs which are allocated across the activities of the Charity, are shown in the allocated support costs column. The basis of allocation is as follows:

Total resources expended before restructuring costs

BFI Trust is not a related party, it is an independent registered charity with objectives consistent with those of the BFI. It has therefore been included in this category in order to providesupplementary disclosure. During the year, the BFI had the following material transactions with BFI Trust:

The restructuring costs of £0.5m relate to redundancy costs incurred in the year (2014: credit of £0.1m - primarily release of bad debt provision in the year).

81



8. TOTAL RESOURCES EXPENDED (CONTINUED)

Net resources expended before transfers are stated after charging: 2015 2014

£'000 £'000

Auditors' remuneration (analysed above) (165) (165)

Auditors' remuneration includes additional fees of £20,000 for the National Audit Office relating to the prior year audit (2014: £20,000). 2015 2014

£'000 £'000

Foreign exchange (losses) / gains (51) -Depreciation (4,841) (4,329)Loss on disposal of fixed assets - (46)Amortisation of goodwill (157) (158)

2015 2014

£'000 £'000

Charges for operating leases:

Land and buildings (1,515) (1,515)Plant & machinery (74) (34)

2015 2014

£'000 £'000

Film rights impairments (16,525) (22,581)

9. STAFF COSTS 2015 2014

£'000 £'000

Staff costs consists of:Wages & salaries (19,126) (18,255)Social security costs (1,525) (1,502)Pension costs (see Note 10) (3,436) (3,121)

(24,087) (22,878)

Agency staff costs included in Wages & salaries above (727) (703)

Staff costs capitalised and not included above (197) (155)

The average number of full-time equivalent employees of the BFI during the year was: 2015 2014

Number Number

Costs of generating voluntary income 20 19Education, Learning & Audiences 228 220Supporting British Film 51 49Film Heritage 183 176Governance costs 2 2

484 466

Average number of full time equivalent Agency staff at the BFI during the year 24 23

Higher paid employees

2015 2014

£'000 £'000

Chief Executive

A. Nevill 141 140

Other Executive Team Members 2015 2014

Number Number

£140,000 - £149,999 1 -£130,000 - £139,999 1 3£120,000 - £129,999 1 -£110,000 - £119,999 2 3£100,000 - £109,999 - -£90,000 - £99,999 1 -£80,000 - £89,999 1 2£70,000 - £79,999 - -£60,000 - £69,999 - -

Cost £813,000 £930,000

Other senior staff

£80,000 - £89,999 8 7£70,000 - £79,999 18 17£60,000 - £69,999 15 14

Cost £3,018,000 £2,748,000

Total Cost £3,831,000 £3,678,000

The carrying value of the film rights reflects the extent to which full repayment of an advance, through actual receipts and the value of future estimated receipts, is considered doubtful. Thevaluation is reviewed on a rolling basis to ensure that fair value is maintained.

Including bonuses totalling £nil (2014: £nil). Employer's pension contributions for the year amounted to £17,238 (2014: £29,098).

82

NOTES TO THE FINANCIAL STATEMENTS YEAR

ENDED 31 MARCH 2015

9. STAFF COSTS (CONTINUED)

10. PENSIONS

The most significant actuarial assumptions in this recent valuation are: 2015 2014

% %

Per annum Per annum

RPI 3.2 3.6CPI 2.4 2.8

3.7 4.12.4 2.86.4 6.4

Rate of increase in pricesRate of increase in pricesRate of increase in salariesRate of increase in pensions in payment Expected return on assetsDiscount rate 3.3 4.5

6.5 6.92.3 3.64.9 6.3n/a n/a5.2 6.54.9 6.35.7 5.7

Return on scheme investment: EquitiesLDI/Cash flow matching Target return funds Alternative assets InfrastructureCommoditiesPropertiesCash 2.0 3.4

The BFI share of the net pension liability as at 31 March 2015 is: 2015 2014 2013 2012 2011

£'000 £'000 £'000 £'000 £'000

77,069 71,081 67,259 58,009 48,584 (134,363) (108,676) (102,200) (92,279) (68,328) (57,294) (37,595) (34,941) (34,270) (19,744)

Fair value of employer assets Present value of scheme liabilities Net underfunding in funded plans Present value of unfunded liabilities (2,593) (2,428) (2,473) (2,260) (2,315)

Net pension deficit (59,887) (40,023) (37,414) (36,530) (22,059)

2015 Asset 2014 AssetAssets - Split of Investments by Category Assets whole fund £'000 Distribution £'000 Distribution

% %

Equities 33,437 43% 37,674 53%LDI/Cash flow matching 5,785 8% 4,265 6%Target return funds 22,279 29% 21,324 30%Alternative assets - 0% - 0%Infrastructure 3,818 5% 2,843 4%Commodities 717 1% 711 1%Properties 2,184 3% 2,132 3%Cash 8,849 11% 2,132 3%

Total 77,069 100% 71,081 100%

Analysis of the amount chargeable to resources expended under FRS17 2015 2014

£'000 £'000

(3,344) (3,121)(179) (65)

Current service cost

Losses on curtailments and settlements

Total operating charge (3,523) (3,186)

Amount credited/(debited) to other finance charges under FRS17 2015 2014

£'000 £'000

4,580 3,793(4,964) (4,668)

Expected return on pension scheme assets

Interest on pension scheme liabilities

Net costs (384) (875)

Net revenue account cost (3,907) (4,061)

For FRS17 disclosure, the full valuation at 31 March 2013 has been updated by the actuaries, Barnett Waddingham, to assess the liabilities of the scheme as at 31 March 2015.

Included in the above are 45 (2014: 45) staff who are ordinary members of the LPFA pension scheme. The amount of employer's pension contributions attributable to these staff amounted to £422,000 (2014: £693,000).

Pension payments are to the LPFA scheme of which the BFI is a member. Pension benefits accrue as a result of the period of employment at the BFI and are payable on retirement. The scheme also provides for lump sum payments on retirement of three times final pension. In addition, pension contributions of £92,000 (2014: £29,000) were paid during the year in respect of the defined contribution scheme for BFI employees and a private pension scheme for a member of the Executive team.

The BFI is an admitted body to the LPFA, which provides a defined benefit pension scheme for the salaried employees of the Charity. It is a funded scheme and the assets are administered by trustees and are independent of the BFI. The related costs are assessed in accordance with the advice of professionally qualified actuaries. From 1 January 2014 the BFI also operates a defined contribution pension scheme which is available for all employees not already in the defined benefit scheme.

The BFI has accounted in full for pension benefits in the year ended 31 March 2015 under the requirements of FRS17. Therefore, as at 31 March 2015, a pension liability of £59,887,000 (2014: £40,023,000) is included in the BFI balance sheet.

In addition to the amounts payable for current members of the pension scheme, within this scheme the BFI has an unfunded liability to pay pensions to 44 (2014: 44) former employees and their spouses. The total actuarial valuation for this liability at 31 March 2015 is included in the pension provision.

83

A number of Executive staff and other employees have interests in award applications which have been fully disclosed in note 31.



10. PENSIONS (CONTINUED)

Analysis of amount recognised in the SOFA 2015 2014

£'000 £'000

Actual return less expected return on pension scheme assets 135 (1,470)Experience gains arising on the scheme liabilities (35) 4,075Changes in assumptions underlying the present value of the scheme liabilities (19,120) (4,118)

Actuarial loss recognised in SOFA (19,020) (1,513)

Reconciliation of defined benefit obligation 2015 2014

£'000 £'000

Defined benefit obligation in scheme at beginning of year (111,104) (104,673)Movement in year:Current service cost (3,344) (3,121)Interest cost (4,964) (4,668)Contributions by members (1,195) (939)Unfunded benefits paid 167 162Impact of settlements and curtailments (179) (65)Benefits paid 2,818 2,801Actuarial (losses)/gains (19,155) (601)

Deficit in scheme at end of the year (136,956) (111,104)

Reconciliation of fair value of employer assets 2015 2014

£'000 £'000

Fair value of employer assets in scheme at beginning of year 71,081 67,259Movement in year:Expected return on assets 4,580 3,793Contributions by members 1,195 939Contributions by the employer, including in respect of unfunded benefits 3,063 2,965Actuarial (losses)/gains 135 (912)Benefits paid, including unfunded benefits (2,985) (2,963)

Fair value of employer assets in scheme at end of year 77,069 71,081

History of experience gains and losses 2015 2014 2013 2012 2011

£'000 £'000 £'000 £'000 £'000

Fair value of employer assets 77,069 71,081 67,259 58,009 48,584Present value of defined benefit obligation (136,956) (111,104) (104,673) (94,539) (70,643)Deficit (59,887) (40,023) (37,414) (36,530) (22,059)

Experience gains / (losses) on assets 135 (912) 4,866 (3,272) 143Experience (losses) / gains on liabilities (35) 3,518 (239) 130 13,980

The sensitivity analysis on the major assumptions in the above is:£'000 £'000 £'000

Adjustment to discount rate +0.1% 0.0% -0.1%Present value of total obligation 134,407 136,956 139,557 Projected service cost 4,135 4,231 4,330

Adjustment to long term salary increase +0.1% 0.0% -0.1%Present value of total obligation 137,273 136,956 136,642 Projected service cost 4,233 4,231 4,229

Adjustment to pension increases and deferred valuation +0.1% 0.0% -0.1%Present value of total obligation 139,261 136,956 134,697 Projected service cost 4,328 4,231 4,136

Adjustment to mortality age rating assumption + 1 Year None - 1 YearPresent value of total obligation 132,615 136,956 141,298 Projected service cost 4,102 4,231 4,360

84



11. TANGIBLE FIXED ASSETS (Group and Charity)

Plant & fixtures

Short & long valued with Computer Furniture Assets in

leasehold leasehold and other IT fixtures and Plant and the course of

property property equipment fittings machinery construction Total

£'000 £'000 £'000 £'000 £'000 £'000 £'000

Cost or valuation

At 1 April 2014 32,918 10,763 5,273 4,142 10,777 1,320 65,193Additions 373 124 1,486 165 169 160 2,477Disposals - - - - - - -Reclassification 800 - 520 - - (1,320) -Revaluation 4,609 172 - - - - 4,781

At 31 March 2015 38,700 11,059 7,279 4,307 10,946 160 72,451

Depreciation

At 1 April 2014 (2,098) (2,742) (3,438) (2,070) (5,721) - (16,069)Charge for the year (1,286) (1,473) (1,039) (354) (689) - (4,841)Disposals - - - - - - -Revaluation (285) (43) - - - - (328)

At 31 March 2015 (3,669) (4,258) (4,477) (2,424) (6,410) - (21,238)

Net Book Value

At 31 March 2015 35,031 6,801 2,802 1,883 4,536 160 51,213

At 1 April 2014 30,820 8,021 1,835 2,072 5,056 1,320 49,124

12. HERITAGE ASSETS (Group and Charity)

Fiction film

Non fiction film

Television

Library

Special collections

600 collections of personal and company papers reflecting the history of British film and television production from the earliest days to the present time.

One of the greatest strengths of the library is its near comprehensive collections of UK trade and academic journals (5,000 titles; many hundreds of thousands of issues). An extensivecollection of newspaper cuttings, publicity and press material are also held as are brochures, leaflets, prospectuses etc. describing the work of organisations that are relevant to film andtelevision.

Around 750,000 television titles including material recorded off-air, as it was seen by the viewer, as well as production and transmission material. The collection includes all BBC output since1980 including unique live broadcasts and extensive samples of commercial terrestrial television, with emphasis on key British productions. As well as the recorded material, significantcollections of transmitted programming donated by broadcasters include the Rediffusion Collection (the earliest ITV contractor) and material preserved on analogue videotape from the 1960sand 1970s donated by the BBC and ITV. The collection also includes recordings of the proceedings of the two houses of Parliament and select committees (approximately 60,000 hours).

Other items include: 3,000 production and costume designs; 3,000 animation cells including artwork by leading animators; and extensive audio collections including oral history recordings and interviews with many key industry figures.

60,000 titles. The collection includes the original camera negatives of some of the most important feature films in British film history. The BFI also looks after an extensive internationalcollection of films.

Approximately 1 million still images from or related to film and TV, including publicity material, production shots, and portraits.

30,000 press books, 15,000 film posters and 2,000 items of cinema ephemera such as programmes, tickets, autographed letters, promotional material and personal memorabilia.

The BFI's leasehold properties BFI Southbank and BFI London IMAX, including associated plant and fixtures, were revalued as at 31 March 2012 by appropriately qualified valuers, Drivers Jonas Deloitte, in accordance with FRS 15: Fixed Assets, using Existing Use and Depreciated Replacement Cost methods respectively. The values as at 31 March 2015 and 2014 have been estimated using appropriate indexation, resulting in a net increase in value in the year of £4.5m (2014: increase of £2.2m). Other classes of assets have not been revalued, as they are made up of low value and/or short useful economic life assets or where the historical cost is considered a reasonable approximation of fair value.

Included within long leasehold property is property with a depreciated net book value of £18.4m (2014: £17.8m) relating to the BFI IMAX cinema building. Arts Council England has a legalcharge on the property to the value of £15,000,000 in respect of original funding for the building costs. In the event that the BFI were to dispose of the building prior to 2018 there may be arequirement to repay some or all of the charge.

The library holds some 45,000 books including major film, TV and video directories and yearbooks from around the world, all major film and TV festival catalogues, programmes andbrochures and all UK based festival catalogues. It also includes major film catalogues from around the world, annual reports from relevant companies and bodies; official publicationsincluding copyright, arts policy, and government reports; biographies and autobiographies of UK film/TV personalities.

120,000 titles including documentaries, newsreels, government films, sponsored films, advertisements and home movies. It is the world’s most important collection of documentary films.

In line with the accounting policy, Heritage Assets are not recognised on the balance sheet as there is an absence of reliable cost information and a valuation approach is not practicable. Inorder to give an indication of the physical size and diversity of the collections, the main elements are summarised below.

30,000 unpublished scripts, from first drafts to release scripts, relating primarily to British film and TV titles.

The BFI has built the National Archive since its establishment in 1933, consisting of film and other related materials dating back to the 19th century. The BFI develops, cares for and interprets a collection that illustrates the art, history and impact of film, to be held in perpetuity for the public, for their use and for use by the BFI in pursuit of its objectives. The collection is one of the largest and most diverse collections in the world. It includes feature films, documentary and factual films, television programmes, artists film, photographic stills, posters, books and other related materials, held primarily for use in the BFI's activities and charitable objectives, as described in more detail in the Annual Report and below. The Collection Policy was most recently updated in November 2011 and can be found at www.bfi.org.uk. It documents our procedures for acquisition and disposal, documentation, conservation and access and describes our role in a national network of organisations that collect or provide access to film.

85



13. INTANGIBLE FIXED ASSETS (Group)

Goodwill Group

£'000

Goodwill on Acquisition

At 1 April 2014 and 31 March 2015 1,574

Goodwill Amortisation

At 1 April 2014 (433)Amortisation in the year (157)At 31 March 2015 (590)

Net Book Value

At 31 March 2015 984

At 1 April 2014 1,141

14. INVESTMENTS (Charity)

British Screen BFI Big Connoisseur 2015 2014

Finance Group Screen Video Total Total

£'000 £'000 £'000 £'000 £'000

Trading Account

Income 241 3,201 - 3,442 3,588Expenditure (46) (464) - (510) (431)

Net operating profit 195 2,737 - 2,932 3,157

Interest receivable and similar income 4 2 - 6 3Surplus gift aided to the BFI (199) (2,739) - (2,938) (3,160)

Net profit - - - - -

Balance Sheet

Debtors 47 1,059 93 1,199 1,267Cash at bank and in hand 1,450 1,259 - 2,709 2,993Current liabilities (337) (2,318) - (2,655) (3,007)

Total (BFI interest) 1,160 - 93 1,253 1,253

British Screen Finance Limited (BSF)BFI (Big Screen) Limited (operates the theatrical and commercial activities of the BFI IMAX)Connoisseur Video Limited (DVD publishing overseas - dormant)Project Rosebud Limited (e-commerce development - dormant with nil assets and investment value)

BSF, in addition, holds the following investments: Ordinary shares Holding

of £1 each

Subsidiary undertakings

National Film Finance Consortium Limited (NFFC) 100 100%European Co-Production Fund Limited (ECF) 2 100%British Screen Rights Limited (BSR) 2 100%The Greenlight Fund Limited (GLF) 2 100%

Associated undertakings

British Film-Makers Limited (BFM) 50 50%

The investments held by the Charity are summarised as follows: 2015

£'000

Cost


Impairment

At 1 April 2014 and 31 March 2015 (57)

Net Book Value


The BFI holds 100% of the issued share capital of the following undertakings, which are registered in England and Wales:

NFFC is a dormant company. ECF was a company that made loans to films produced by European co-producers. BSR acquired and sold rights in feature films. GLF managed theinvestment of some National Lottery proceeds into feature films on behalf of the Arts Council of England and is now dormant. BFM collects and distributes film revenues on behalf of BSFand third parties. Its results are not material to the Group. All group companies are registered in England and Wales.

Trading subsidiaries are involved in activities wholly consistent with the BFI's charitable aims and objectives and remit taxable profits to the BFI under Gift Aid. Their income and expenditureare consolidated into the Group accounts.

Goodwill arises on consolidation of British Screen Finance Limited (BSF) and its subsidiary companies, which were acquired on 29 June 2011, and is being amortised over ten years on astraight line basis.

86



15. FILM RIGHTS (Group and Charity)

2014-15 2013-14 2012-13 2011-12 2010-11

£'000 £'000 £'000 £'000 £'000

Production Awards 6,022 14,166 15,968 20,348 17,261Development and Vision Awards 1,188 876 270 813 752Other Awards 351 316 137 - -

7,561 15,358 16,375 21,161 18,013

2014-15 2013-14 2012-13 2011-12 2010-11

£'000 £'000 £'000 £'000 £'000

15,358 16,375 21,161 18,013 20,893

16,892 27,208 25,933 20,882 15,307

(149) (34) (197) - (390)(1,088) (17) (325) (84) (26)

(389) (791) (593) (550) (194)(4,307) (2,934) (5,640) (3,368) (6,160)

(13,519) (19,293) (18,850) (13,053) (9,323)(5,676) (5,069) (7,249) (5,285) (6,680)

2,670 1,781 3,822 1,193 1,420

(911) (2,205) (2,242) (3,477) (962)(1,320) 337 555 6,890 4,128

7,561 15,358 16,375 21,161 18,013

The value of new commitments made in the year will vary due to timing differences arising from the closure of awards.

To the extent that the development award had an impairment provision, the impairment provision was written back before the full value of the award was decommitted.

2014-15 2013-14 2012-13 2011-12 2010-11

£'000 £'000 £'000 £'000 £'000

(13,519) (19,293) (18,850) (13,053) (9,323)(5,676) (5,069) (7,249) (5,285) (6,680)

(19,195) (24,362) (26,099) (18,338) (16,003)

2,670 1,781 3,822 1,193 1,420

Net movement in impairments (16,525) (22,581) (22,277) (17,145) (14,583)

The value of impairments on new film rights in the year is always governed by the value of awards made and therefore can vary considerably year to year.

Film rights valuation at 1 April

New commitments: made in year

Decommitments: new film rights in yearDecommitments: historical portfolio

Repayment of investments: new film rights in yearRepayment of investments: historical portfolio

Impairments: new film rights in yearImpairments: historical portfolioImpairments written back

Movements in impairments in the year are as follows:

Impairments: new film rights in yearImpairments: historical portfolio

Impairments written back: historical portfolio

Fair value movement in year: decrease for income already receivedFair value movement in year: (decrease) / increase in additional income expectation

Film rights valuation at 31 March

The fair value of film rights at 31 March is as follows:

Movements in the valuation of film rights

Film rights fall within the definition of 'available for sale' financial assets and are held at fair value. The valuation approach to establish the fair value of the film rights portfolio is set out in Note1 Accounting Policies.

The BFI's primary objective in investing in film rights is to support the future success of British film by backing new voices, new stories, new ideas and skills, enriching and diversifying Britishfilm production. Thus whilst the potential commerciality of a project is important in our assessment of an application it is not the key funding criteria.

Production awards are made to producers to co-finance feature film productions and from which we are entitled to recoup our award and take a share of net profits from the film. The value ofthe productions will be dependent upon many factors which are inherently uncertain; the ability of sales agents to meet sales estimates, how the film will be critically and commerciallyreceived (including box office projections) all play a role. Further details are set out in the impairments note below.

Development awards are made to producers to support a film development. In the event that the development project progresses into a feature film production, we would be entitled to berepaid our award and take a share of net profits. Accordingly development awards are impaired in full in the year in which the award is made, unless there is a reasonable anticipation of itprogressing to production.

Vision Awards are made to production companies to enable them to develop their business and the awards are repayable from any applicable feature film production made by the productioncompany. As we do not expect all recipients to be required to repay the award in full we routinely impair 50% of the award in the year in which it is committed.

Other awards include distribution awards which are awards made to distributors to support the release of a film in the UK and targeted development awards which are awarded to supportnew talent. These awards are written off in full in the year unless there is a reasonable expectation of recoupment.

The decommitments in 2014-15 of £1.2m are substantially higher than those of prior years due largely to a review of the historic development awards which resulted in a number of awardsbeing reduced in value.

Of the recoupment received in 2014-15, £0.6m was in respect of 52 production awards (an average of £12,049 per award) which were valued at nil at 1 April 2014 (2013-14: £0.6m on 45production awards with a nil balance at 1 April 2013). Due to the low average return and the uncertainties of any future receipts we feel that to value these individual awards at year end atother than zero would not have a material impact upon the film rights valuation. Our policy is to only revalue film rights upwards when there is clear evidence of future revenues.

Because of this uncertainty, new production awards are written down to 20% (2014: 20%) of the award amount in the year that they are first committed, based on historic performance of theportfolio. However, in the event that there is evidence that potential future incomes would exceed 20% of the initial award such as pre-sales and sales estimates, the higher value indicatedby these estimates would be used. As at 31 March 2015 45% (2014: 43%) of the total new production awards were written down to 20%.

If those production awards issued in year where the 20% valuation is applied were to experience recoupment levels at +/- 5% of the award amount, the impact on the valuation of film rights at 31 March 2015 would be +/- £0.4m (2014: £0.4m).

Where the valuation of new production awards has not been based on the 20%, were the recoupment levels and valuation to vary by +/- 5%, the impact on the valuation of film rights at 31March 2015 would be £0.01m (2014: £0.5m).

For historic production awards (i.e. not new production awards), were the recoupment levels and valuation to vary by +/- 5%, the impact of the valuation of film rights at 31 March 2015 wouldbe £0.7m for 178 awards (2014: £0.5m for 94 awards).

We have reduced over time the base valuation rate of new production awards from 50% as at 1 April 2010, to 30% as at 1 April 2011 and to 20% as at 31 March 2015, with a consequenteffect on the historic portfolio. This reflects the changing position taken with regard to our awards and the assessment of experienced performance. Based on the current valuation point of20%, we anticipate the net impairment figure will be reduced in future years. 87



15. FILM RIGHTS (Group and Charity) (CONTINUED)

Additional commentary on movements each year

2014-15 2013-14

£'000 £'000

3,557 5,425(911) (2,205)

(1,320) 337

1,326 3,557

16. NATIONAL LOTTERY DISTRIBUTION FUND (Group and Charity)

The movement in balances held at the NLDF is: 2015 2014

£'000 £'000

Balance at 1 April 2014 55,817 52,841

Income received from the Lottery receipts 52,777 44,891Investment income earned on NLDF balances 213 210

Available for distribution 108,807 97,942

Cash drawn down (47,647) (42,125)

Balance at 31 March 2015 61,160 55,817

Following the changes in the year in the NLDF investments by the National Debt Commissioners, there were no unrealised gains in the year (2014: £nil).

Repayment from the Olympic Lottery Distribution Fund (OLDF)

17. STOCKS AND WORK IN PROGRESS (Group and Charity)

2015 2014

£'000 £'000

Raw materials 12 16Work in progress 16 29Finished goods 389 343

417 388

With the wind-up of the OLDF and transfer of funds into the NLDF in the year ending 31 March 2015, £4m (2014: £nil) was repaid to the BFI. This repays in part those funds transferred to the OLDF as a contribution towards the costs of running the 2012 Olympic and Paralympic Games under Statutory Instrument (SI 2008 No. 255 The Payments into the OLDF etc Order 2008) under which the BFI/UKFC contributed £21.8m to the total transfer from the NLDF of £1,085m.

The funds are invested on behalf of the NLDF by the National Debt Commissioners. The BFI's distribution is in accordance with Sections 22 and 23 of the National Lottery etc. Act 1993 (as amended by the National Lottery Act 1998). The BFI is required by statute to show on the balance sheet the lower of the market value or the cost of the investment as at the year end.

Fair value reserve at 1 AprilDecrease for income received(Decrease)/increase for expected future income

Fair value at 31 March

In 2010-11 the main additional impairments related to Brighton Rock (£0.6m), Chalet Girl (£0.5m), Tracker (£0.5m) and Another Year (£0.6m). The fair value gains reflected the immediatesuccess of The King's Speech which recouped its initial investment within weeks of its critical and commercial success. With the announcement of the closure of the UK Film Council, thelevels of new awards made inevitably fell, which had an impact on new film rights in the year.

In 2011-12 the largest increase in provisions related to the write off of the remaining rights valuation on Sunshine (£1.9m), Notes On A Scandal (£0.6m) and Wuthering Heights (£0.3m) andan additional provision with regard to Attack The Block (£0.3m). The fair value gains reflected the on-going commercial success of The King's Speech and anticipated future revenues fromthis, with the project having a year end fair value of £6.3m.

In 2012-13 with the launch of the new Film Forever plan and the announcement of our Lottery funding strategy, the levels of commitments began to increase. New projects with titles taken to film rights included Belle, The Invisible Woman and '71. The largest increase in provisions related to writing off the remaining rights valuations on Great Expectations (£0.6m), Seven Psychopaths (£0.6m) and Streetdance Encore (£0.5m). Overall the fair value reserve fell by £1.7m due to the recoupment funds in relation to The King's Speech previously anticipated in this reserve.

In 2013-14 the levels of commitment remained broadly consistent with those of the previous year, in line with the Film Forever business plan. New projects with titles taken to film rightsincluded Bill, The Riot Club, Sunset Song and Suffragette. The largest increase in provisions related to the write off of rights valuations for Under the Skin (£0.9m), Bill (£0.8m) and Jimmy'sHall (£0.6m). Overall the fair value reserve fell by £1.9m due in part to the recoupment funds in relation to The King's Speech previously anticipated in this reserve.

In 2014-15 the level of new commitments crystallising as film rights reduced primarily due to the lower number and value of production awards in the year. New film rights recognised in theyear include Trespass Against Us and High Rise. The largest movement in provisions relates to the write off of rights valuations for High Rise (£1m), War on Everyone (£0.9m) and TheOnes Below (£0.6m). Overall the fair value reserve has fallen by £2.2m largely due to the recoupment of funds in relation to The King's Speech and a reduction in the future valuation of thisproject.

Fair value adjustments in the year can be summarised as follows:

88



18. DEBTORS

Group Group Charity Charity

2015 2014 2015 2014

£'000 £'000 £'000 £'000

Trade debtors 2,368 1,496 2,298 1,150Amount owed by subsidiary undertakings - - 1,758 2,292Other debtors 1,195 1,499 1,241 1,499Prepayments and accrued income 2,282 2,035 1,375 1,208

5,845 5,030 6,672 6,149


2015 2014 2015 2014

£'000 £'000 £'000 £'000

Additional analysis of debtors

Central Government bodies 270 1,292 333 1,293Local authorities - 34 - 34Public corporations and trading funds 194 12 2,070 615Bodies external to Government 5,381 3,692 4,269 4,207

5,845 5,030 6,672 6,149

19. FINANCIAL RISKS (Group and Charity)

Liquidity risks

Interest rate risks

Other price risks

Foreign currency risks

The BFI’s financial assets are not exposed to material foreign exchange risks, as long-term balances are held in sterling.

20. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Restated Restated


2015 2014 2015 2014

£'000 £'000 £'000 £'000

Trade creditors (1,504) (1,099) (1,436) (1,048)Amount owed to subsidiary undertakings - - (93) (93)Other taxes and social security costs (486) (493) (486) (493)Other creditors (1,413) (580) (1,342) (441)Lottery awards payable (see Note 22) (28,610) (28,198) (28,610) (28,198)Accruals (4,890) (4,969) (4,757) (4,882)Deferred income (see Note 21) (1,389) (1,176) (939) (738)

(38,292) (36,515) (37,663) (35,893)Additional analysis of creditors

Central Government bodies (746) (864) (746) (864)Bodies external to Government (37,546) (35,651) (36,917) (35,029)

(38,292) (36,515) (37,663) (35,893)

The Governors consider that, as the NLDF balance notified by the Secretary of State for Culture, Media and Sport and the BFI's own Lottery cash holding amount to £65.6m at the balance sheet date (2014: £58.3m), sufficient liquid resources are available to cover all existing commitments totalling £49.1m (2014 Restated: £62.3m) and any other payables. The non-Lottery cash holdings are considered sufficient to cover the non-Lottery other payables.

The BFI’s largest financial asset is retained in the NLDF, which invests in a narrow band of low risk assets such as Government bonds and cash. Neither the BFI nor its Governors has anycontrol over these investments. The interest rate risks in respect of these financial assets are disclosed in the financial statements of the NLDF. The market value at year end of the BFI’s

investment in the NLDF was £61.2m (2014: £55.8m) and the average investment return for the year was 0.5% (2014: 0.5%).

Film rights at 31 March 2015 have a valuation of £7.6m (2014: £15.4m). The Governors consider that the BFI is not exposed to significant other price risks.

Cash drawn from the NLDF, DCMS or received from other sources, to pay grant commitments and operating costs are held in variable rate bank accounts and the average interest ratereturn for the year was 0.1% (2014: 0.1%). The group cash balance at the year end was £10.5m (2014: £8.3m).

Under Financial Reporting Standards (FRS 25, 26 and 29) film rights fall within the definition of financial instruments and within that meet the definition of ‘Available for sale financial assets’

and are therefore shown in the balance sheet at fair value.

Establishing the fair value of film rights is subjective and therefore contains an element of risk. The fair value is based on a review of external evidence such as the sales agents estimates asto the likely revenues generated by a project, and depending on where it is in the life cycle of the project, upon actual performance of the film to date. This is matched with the knowledge andexperience of the staff and management involved in the process of assessing the projects both at application stage and as they come to fruition. Any reduction in fair value is immediatelytaken to the SOFA in the year.

The valuation of film rights are subject to ongoing review to ensure a fair value is maintained with any impairments being charged as expenditure. Any increase in the fair value beyond the original investment value is taken to reserves and only released as income upon the actual receipt of funds.

In 2015 £14.9m (15.0%) of the incoming resources were derived from DCMS Grant-in-Aid (2014: £22.4m, 24%); £0.6m (0.6%) (2014: £1.9m, 2%) related to the DCMS capital provision for the year; £11.1m (11.2%) was generated from other legacies, grants and donations (2014: £3.8m, 4%) and £17.4m (17.5%) (2014: £16.7m, 18%) were resources generated from charitable activities. £1.4m (1.4%) (2014: £1.4m, 2%) came from donated services and facilities. As a Lottery Distributor, £54.0m (54.3%) of incoming resources was from Lottery proceeds and receipts (2014: £47.9m, 50%).

Financial Reporting Standards require disclosure of the role which financial instruments have had during the period, in creating or changing the risks the BFI faces in undertaking its role.

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21. DEFERRED INCOME


2015 2014 2015 2014

£'000 £'000 £'000 £'000

At 1 April 2014 (1,176) (2,223) (738) (1,710)Amount released to incoming resources 1,176 2,223 738 1,710Amount deferred in year (1,389) (1,176) (939) (738)

At 31 March 2015 (1,389) (1,176) (939) (738)

Restated

2015 2014

£'000 £'000

At 1 April 2014 (59,010) (34,509)New films right commitments in year (16,892) (27,208)New non-film rights commitments in year (8,881) (42,000)Commitments transferred from Creative England - (78)Decommitments 1,237 925Amounts paid 41,120 43,860

At 31 March 2015 (42,426) (59,010)

Decommitments arise when any element of the award is not utilised once contracts are signed and drawdown has commenced.Restated

New commitments made during the year: 2015 2014

£'000 £'000

Film fund awards taken as film rights 16,892 27,208

Multi year awards for the period to March 2017:Creative Skillset awards 300 21,000Film Network Fund 1,128 9,025Focal points awards - 1,800Film Festivals awards - 600

1,428 32,425Project funding:Creative England 3,850 3,896International awards 1,848 2,089Film Festivals awards 388 1,434Film Academy awards 100 700Programme Development Fund 1,053 695Film Culture awards - 498BFI Neighbourhood awards 214 263Total project awards 7,453 9,575

New commitments in year 25,773 69,208

Restated

2015 2014

Ageing of commitments - estimated dates of payment £'000 £'000

Creditors: amounts falling due within one yearYear ended 31 March 2015 - (28,198)Year ended 31 March 2016 (28,610) -

(28,610) (28,198)Creditors: amounts falling due after more than one yearYear ended 31 March 2016 - (15,406)Year ended 31 March 2017 (13,816) (15,406)

(13,816) (30,812)

(42,426) (59,010)

Award commitments payable beyond 31 March 2016, relate to the multi-year awards made to Into Film, Creative Skillset, the Film Hub Lead Organisations and under the Film Festivals Fund covering the period to March 2017.

Mainly relates to performance related grants received in the year, deferred to match future performance, and advance ticket sales.

22. OTHER PAYABLES - AWARD COMMITMENTS (Group and Charity)

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23. STATEMENT OF FUNDS (Group) Restated

At 1 April At 31 March

2014 Income Expenditure Transfers 2015

£'000 £'000 £'000 £'000 £'000 £'000

Unrestricted funds:

Income funds excluding pensions asset/liability 24,963 41,691 (43,709) - 1,208 24,153 Pension reserve (38,360) - (803) (17,872) - (57,035)Fixed asset revaluation reserve 5,423 - (845) 2,014 - 6,592Total unrestricted funds (7,974) 41,691 (45,357) (15,858) 1,208 (26,290)

Restricted funds:

Fixed Assets 12,965 - (374) - - 12,591Fixed asset revaluation reserve 8,535 - (537) 2,439 - 10,437

21,500 - (911) 2,439 - 23,028Charitable Activities:

Donated Services and Facilities - 1,395 (1,395) - - -TV Grants - 1,066 (1,066) - - -Arts Council England - 60 (60) - - -Band Service Amenities Fund - 38 (38) - - -British Council - 56 (56) - - -British Council - 12 (12) - - -Chaplin Foundation 41 - - - - 41Charlie Morgan - 20 (20) - - -Creative Access - 15 (15) - - -Creative Skillset - 11 (11) - - -David Lean Foundation - 63 (63) - - -Esmee Fairbairn Foundation - 30 (30) - - -Europa Cinemas - 15 (15) - - -European Commission - 269 (269) - - -European Commission - 24 (24) - - -Film London - 60 (60) - - -Garfield Weston Foundation - 100 - - (51) 49Matt Spick - 30 (30) - - -Michael Marks Charitable Trust - 10 (10) - - -Mohamed S. Farsi Foundation - 30 (30) - - -Northern Ireland Screen - 25 (25) - - -Simon Hessel - 50 (50) - - -Sir John Cass's Foundation - 14 (14) - - -The Eric Anker-Petersen Charity - 130 (130) - - -The Film Foundation - 24 (24) - - -The Reuben Foundation - 50 (50) - - -The Wellcome Trust - 56 (56) - - -Unlocking Film Heritage 13,351 - (2,791) - (965) 9,595Other up to £10,000 - 53 (53) - - -

Total restricted funds excluding lottery 34,892 3,706 (7,308) 2,439 (1,016) 32,713

Lottery funds:

Lottery reserve (1,026) 53,983 (31,937) - (192) 20,828 Lottery fair value reserve 3,557 - - (2,231) - 1,326 Lottery share of pension reserve (1,663) - (40) (1,148) - (2,851)Total Lottery funds 868 53,983 (31,977) (3,379) (192) 19,303

Total funds 27,786 99,380 (84,642) (16,798) - 25,726

Restricted funds: Description:

Fixed assetsArts Council England Archive Gala - performance of new score and education activity and ExperimentaBand Service Amenities Fund Archive Gala and recording of score British Council Funding for Education programme Reframing LanguagesBritish Council Funding for Industry programme at the LFFCharlie Morgan BFI Raw Creative Access Training support re MarketingCreative Skillset BFI Flare programmeDavid Lean Foundation Support for restoration work and promotion of archive materialsEsmee Fairbairn Foundation Support for restoration work and promotion of archive materialsEuropa Cinemas BFI Southbank programmingEuropean Commission Support for the provision of Media Desk servicesEuropean Commission Supporting the EC Film Literacy education projectFilm London Funding for Industry programme and Mayor's Gala at the LFFGarfield Weston Foundation Archive - Special Collections store capital fundingMatt Spick Battles of Coronel and Falkland Islands film restorationMichael Marks Charitable Trust Shooting Stars film restorationMohamed S. Farsi Foundation UFH - blockbusters (sci-fi) and Gaslight film remasteringNorthern Ireland Screen Support for Audience developmentSimon Hessel Women in Love film remasteringSir John Cass's Foundation Support for the Cultural Campus for Lambeth at BFI Southbank.The Eric Anker-Petersen Charity Victorian Cinema film restoration project The Film Foundation Bluebeard's Castle film restoration The Reuben Foundation BFI Reuben Library The Wellcome Trust People Awards - The Midwich Experiment (Sci-fi education)

Art Award for We cannot Unsee - sci-fi educationUnlocking Film Heritage

Other up to £10,000 Various grant awards towards education, restoration and programming

Other recognised

gains/(losses)

Development, planning and initial awards for the Unlocking Film Heritage programme of projects. Total funding of £15m was awarded bythe Lottery under Section 27 dispensation towards improving public access to the UK's film archives from 2013/14 to 2016/17.

Transfers represent fixed assets funded by restricted grants, which have been transferred to unrestricted assets on completion.

Assets subject to ongoing restrictions and their associated depreciation. This is primarily the BFI London IMAX, as described in Note 11.

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23. STATEMENT OF FUNDS (Group) (CONTINUED)

Fund balances at 31 March 2015 are represented by: Unrestricted Restricted Total

£'000 £'000 £'000

Tangible fixed assets 28,185 23,028 51,213Intangible fixed assets 984 - 984

Film rights - 7,561 7,561National Lottery Distribution Fund - 61,160 61,160

Stocks and work in progress 417 - 417 Debtors 4,975 870 5,845 Cash at bank and in hand 5,856 4,685 10,541

Current assets 11,248 74,276 85,524Current liabilities (9,672) (28,620) (38,292)Income funds excluding pensions asset/liability 30,745 68,684 99,429Creditors due after more than one year - (13,816) (13,816)Long term pension liabilities (57,035) (2,852) (59,887)

Total net assets (26,290) 52,016 25,726- -

Net free reserves 2015 2014

Unrestricted Unrestricted

£'000 £'000

Current assets 11,248 8,494Current liabilities (9,672) (6,873)

Net free reserves 1,576 1,621

Operating statement - Charity only 2015 2014

Total Total

£'000 £'000

Incoming resources 95,932 89,892Resources expended (83,975) (119,794)Operating surplus/(deficit) 11,957 (29,902)

BFI (Big Screen) Limited and British Screen Group surpluses gift aided to the BFI 2,938 3,160Actuarial losses on defined benefit pension schemes (19,020) (1,513)Movement in fair value reserves (2,231) (1,868)Movement in fixed asset revaluation reserves 4,453 2,182

Charity only funds at 1 April 2014 27,786 55,727

Charity only funds at 31 March 2015 25,883 27,786

24. VOLUNTARY INCOME (Group)

2015 2014

£'000 £'000

Lottery proceeds 52,990 45,101Lottery recoupment income 941 2,214Revenue Grant in Aid funding 14,936 22,374Capital Grant in Aid funding 561 1,927Other grants, legacies and donations 11,181 3,751Donated services and facilities 1,395 1,441

82,004 76,808

Incoming resources from charitable activities (earned income) includes Sponsorship income

Education, Learning & Audiences includes sponsorship income raised from the costs of generating voluntary income 1,351 963

Costs of generating funds

Costs of generating voluntary income (1,090) (1,483)

25. LEASE COMMITMENTS (Group and Charity)

At 31 March 2015, the Charity had annual commitments in respect of non-cancellable operating leases as set out below:

Land and Land and

buildings buildings Other Other

2015 2014 2015 2014

£'000 £'000 £'000 £'000

Leases which expire:Less than 1 year - - (70) (1)Within 2 to 5 years - - (99) (69)Over 5 years (1,515) (1,515) - -

(1,515) (1,515) (169) (70)

Costs of generating voluntary income is the staff and other costs of the in-house teams who source funding from individuals, trusts, foundations and corporations. In addition to the abovevoluntary income, income from charitable activities includes sponsorship income of £1,351,000 (2014: £963,000) raised by the teams. This income primarily relates to the corporatesponsorship of the London Film Festival and BFI Flare (formerly known as the London Lesbian & Gay Film Festival).

Restricted funds are committed as directed by the donors/grantors. Unrestricted funds are available to fund revenue initiatives identified during the year and to provide a reserve against unforeseen costs arising.

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26. CAPITAL COMMITMENTS (Group and Charity)

27. CONTINGENT AND OTHER LIABILITIES (Group and Charity)

There were no provisions other than those under FRS17: Retirement Benefits (see note 10).

28. FINANCIAL COMMITMENTS

2015 2014

Restated

£'000 £'000

Prior year awards

Production awards 22 182Development awards 40 -Targetted development awards 189 -Distribution awards - 150

In year awards

Production awards 5,351 545Distribution awards 113 1,625Development awards 439 497Targeted Development Programme 195 188Vision awards 50 100

6,399 3,287

29. POST BALANCE SHEET EVENTS (Group and Charity)

30. GRANT-IN-AID AND LOTTERY AWARDS (Group and Charity)

Grant-in-Aid awards

Awards in the year were: 2015 2014

£'000 £'000

Creative England 960 980Film London 840 858Film Agency for Wales 128 128Northern Ireland Screen: Irish Language Fund 3,000 3,000Northern Ireland Screen: Ulster Scots Fund 1,000 1,000Film Academy awards 776 702Cultural Venues and Archives Fund 700 709

Creative Europe partners 164 -

7,568 7,377

Full details of all Lottery commitments made in the year are shown in the accompanying Lottery financial statements.

31. TAX STATUS (Group and Charity)

Its subsidiaries' total taxable profits are either gifted to the Charity or tax losses have been utilised and therefore no tax is payable.

Financial commitments - non-film rights awards notified but not yet recognised in the financial statements

Lottery awards

With the closure of the UK Film Council, the BFI took responsibility on behalf of DCMS for the administration of Grant-in-Aid awards made to third party and partner organisations in the film sector, andreceived additional funding for this.

From 1 April 2015 the administration of the Europe-wide Creative Europe programme was changed by the EU. Prior to this BFI provided the hub point (Media Desk) for the Creative Europe programme inEngland, with equivalent directly funded Media Desks in the nations. From April 2015 the BFI, in partnership with the British Council, became the lead hub of Creative Europe programme, receiving fundsfrom Brussels and passing these on as appropriate to the other national hubs at the British Council, Creative Scotland and the Arts Councils of Wales and Ireland.

The BFI is a registered charity and as such is potentially exempt from taxation of its income and gains to the extent that they are applied to its charitable objectives.

As at 31 March 2015, the BFI had capital commitments outstanding of £604,000 (£2014: £433,000) relating to the UFH Digitisation infrastructure.

Some grant funding in the current and previous years could potentially become repayable in the event of the assets funded being disposed of by the BFI, subject to time and other restrictions set out in thegrant agreements (see note 11).

At the date of the statement of financial position there were financial commitments representing film rights investments made by the BFI where the investment decisions had been taken by the BFI and notified to the applicants but either the contracts had not been signed and/or the conditions precedent not met. Therefore work had not commenced on the assets in which the BFI is investing, so neither the asset nor the matching liability are represented in the balance sheet at that date.

The increase in financial commitments is primarily caused by three production awards totalling £4.2m, where the decision to make the award happened in the last two months of the year and was notified to the applicants, but either contracts had not been signed and/or conditions precedent not met by the date of the balance sheet.

At the time of signing the accounts there had been no post balance sheet events which would adjust the figures reported in the financial statements. The accounts were authorised for issue on the datethe Comptroller and Auditor General signed the audit report.

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32. RELATED PARTIES (Group and Charity)

All awards outstanding are payable upon the meeting of conditions precedent within individual contracts.

The following related party transactions occurred during the period:Relationship to New Awards Balances

Role with recipient of made outstanding

Recipient of funding Name BFI funding 2015 31 March 2015

£ £

Grant-in-Aid Funding

Ffilm Cymru Wales Heather Stewart Employee Board Member until 4 April 2014 128,000 6,400

Lottery Awards New Awards

Relationship to made Balance

Role with recipient of Year Ended as at

Recipient of funding Name BFI funding 31 March 2015 31 March 2015

Blueprint Pictures (Posh) Limited Pete Czernin Governor Director 6,000 - Blueprint Pictures Ltd Pete Czernin Governor Director 18,401 - British Federation of Film Societies Jim Dempster Employee BFFS trustee and treasurer 318,000 212,000 Creative Skillset Tim Richards Governor Director and Trustee 300,000 300,000 Ffilm Cymru Wales Heather Stewart Employee Board Member until 4 April 2014 607,500 480,000

Charles Cecil is a director of Screen Yorkshire. Screen Yorkshire independently co-funded a number of projects across the year with the BFI.

33. LOSSES AND SPECIAL PAYMENTS (Group and Charity)

Amanda Nevill (Chief Executive) is a Director and Trustee of the BFI Trust, with which there were a number of transactions in the year - see Note 5.


Using the power granted by the Section 27 of the National Lotteries Act etc 1993, the Secretary of State gave permission in 2012-13 for an award of £15,000,000 to the BFI in relation to Unlocking FilmHeritage, the BFI's Archive Strategy as outlined in Film Forever future plan, for both the national and regional moving image archives. The awards was made in March 2013 and was shown on theStatement of Financial Activities within Gross transfers between funds. At 31 March 2015 a balance of funds of £9,595,000 (2014: £13,351,000) remained (note 23).

Screen East, the regional screen agency under the RIFE programme, went into liquidation in September 2010. The agency had received grant and Lottery awards from the UKFC. A protective claim of£1,046,686 was lodged with the liquidator. This claim was transferred to the BFI on 1 April 2011 and remains unadjusted. In the year ended March 2015 £0.2m (2014: £0.2m) was received from theliquidator in partial settlement of this. However until the conclusion of the liquidation process it is unclear what further funds may be recoverable from the liquidator and recovery of funds has not beenanticipated in these financial statements.

The BFI maintains a publicly available register of Governors’ interests. Given their broad experience across the film sector, it is inevitable that Governors had connections with or interests in projects and organisations that may from time to time have come to the BFI for funding. All Governors were therefore required to declare any direct interest in and commercial relationships with award applications made to the BFI and that they had no role in the award making process. Similarly, BFI employees were excluded from decision making around any relevant application involving any organisation or company in which they have a declared interest.

During the year the BFI entered into transactions, in the ordinary course of business, with related parties. National Lottery awards are included in film rights at the date of the balance sheet or written off toexpenditure within the year.

94

The BFI is a non-departmental public body sponsored by the Department for Culture, Media and Sport (DCMS). DCMS is a related party and during the year the BFI had material transactions with DCMS (note 5).

Registered charity no: 287780

GROUP AND LOTTERY

ANNUAL REPORT AND FINANCIAL STATEMENTS 2014-15


For the year ended 31 March 2015


95


STATEMENT OF GOVERNORS AND ACCOUNTING OFFICER’S RESPONSIBILITIES

The Governors and Chief Executive are responsible for preparing for financial statements for the

Lottery distribution activities of the BFI for each financial year under section 35(2) and (3) of the

National Lottery etc. Act 1993 in the form and on the basis directed by the Secretary of State for

Culture, Media and Sport with the consent of the Treasury. The accounts are prepared on an

accruals basis except in relation to the recognition of commitments and must show a true and

fair view of the state of affairs of the BFI Lottery Fund distribution activities and of its income

and expenditure and cash flows for the financial year.

In preparing these financial statements, the Governors and Chief Executive are required to:

• Observe the accounts directions issued by the Secretary of State, including the relevant

accounting and disclosure requirements; apply suitable accounting policies on a consistent

basis;

• Make judgements and estimates on a reasonable basis;

• State whether applicable accounting standards have been followed, and disclose and explain

any material departures in the financial statements; and

• Prepare the financial statements on the going concern basis, unless it is inappropriate to

presume that the BFI Lottery distribution activities will continue in operation.

The Accounting Officer for the DCMS has designated the Chief Executive of the BFI as the

Accounting Officer for the BFI. The relevant responsibilities of an Accounting Officer, including

responsibility for the propriety and regularity of the public finances for which the Accounting

Officer is answerable and for keeping of proper records and for safeguarding the BFI’s assets are

set out in Managing Public Money published by the HM Treasury and in the Financial Directions

issued by the Secretary of State for Culture, Media and Sport under section 26(3) of the National

Lottery etc. Act 1993.

96

Alison Cornwell

Chair, Audit, Risk and Governance Committee

Amanda Nevill

Chief Executive

THE CERTIFICATE AND REPORT OF THE COMPTROLLER AND AUDITOR GENERAL TO THE

HOUSES OF PARLIAMENT

I certify that I have audited the financial statements of the British Film Institute’s Lottery Distribution Activities for the year ended 31 March 2015 under the National Lottery etc. Act 1993. The financial statements comprise: the Statements of Comprehensive Net Expenditure, Financial Position, Cash Flows, Changes in Equity; and the related notes. These financial statements have been prepared under the accounting policies set out within them. I have also audited the information in the Remuneration Report that is described in that report as having been audited.

Respective responsibilities of the Governors, Accounting Officer and auditor

As explained more fully in the Statement of Governors and Accounting Officer’s Responsibilities, the

Governors and the Accounting Officer are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. My responsibility is to audit, certify and report on the financial statements in accordance with the National Lottery etc. Act 1993. I conducted my audit in accordance with International Standards on Auditing (UK and Ireland). Those standards require me and my staff to comply with the Auditing Practices Board’s Ethical Standards for Auditors.

Scope of the audit of the financial statements

An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the circumstances of the British Film Institute’s Lottery Distribution Activities and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the British Film Institute; and the overall presentation of the financial statements. In addition I read all the financial and non-financial information in the Annual Report and Governance Statement to identify material inconsistencies with the audited financial statements and to identify any information that is apparently materially incorrect based on, or materially inconsistent with, the knowledge acquired by me in the course of performing the audit. If I become aware of any apparent material misstatements or inconsistencies I consider the implications for my certificate.

I am required to obtain evidence sufficient to give reasonable assurance that the expenditure and income recorded in the financial statements have been applied to the purposes intended by Parliament and the financial transactions recorded in the financial statements conform to the authorities which govern them.

Opinion on regularity

In my opinion, in all material respects the expenditure and income recorded in the financial statements have been applied to the purposes intended by Parliament and the financial transactions recorded in the financial statements conform to the authorities which govern them.

Opinion on financial statements

In my opinion:

the financial statements give a true and fair view of the state of the affairs of the British FilmInstitute’s Lottery Distribution Activities as at 31 March 2015 and of the net surplus for the yearthen ended; and

97

the financial statements have been properly prepared in accordance with the National Lottery etc.Act 1993 and Secretary of State directions issued thereunder.

Opinion on other matters

In my opinion:

the part of the Remuneration Report to be audited has been properly prepared in accordance withSecretary of State directions made under the National Lottery etc. Act 1993; and

the information given in What we delivered this year, Key Performance Measures, FinancialReview, Environmental Sustainability, and How the BFI is Governed sections of the AnnualReport for the financial year for which the financial statements are prepared is consistent with thefinancial statements.

Matters on which I report by exception

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

adequate accounting records have not been kept; or

the financial statements and the part of the Remuneration Report to be audited are not inagreement with the accounting records; or

I have not received all of the information and explanations I require for my audit; or

the Governance Statement does not reflect compliance with HM Treasury’s guidance.

Report

I have no observations to make on these financial statements.

Sir Amyas C E Morse Date



157-197 Buckingham Palace Road

Victoria

London

SW1W 9SP

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16 July 2015

STATEMENT OF COMPREHENSIVE NET EXPENDITURE


Notes 2014-15 2013-14

(Restated)

£'000 £'000

Income

Proceeds from the National Lottery 3 52,777 44,891National Lottery Distribution Fund investment income 3 213 210Recoupment income

Arts Council England and UK Film Council portfolio 4 941 2,201BFI portfolio 4 - 13

Transfer of activities to BFI 5 - 498

Other income 45 -

Total income 53,976 47,813

Expenditure

Lottery - non-film rights awards 6 (10,160) (41,952)

Impairments against film rights 7 (19,195) (24,362)Reversal of impairments against film rights 7 2,670 1,781

10 (4,678) (4,686)Operating costs Pension costs (430) (361)

Restructuring costs 11 (709) (282)

Total expenditure (32,502) (69,862)

Operating surplus / (deficit) 21,474 (22,049)

Bank interest receivable 7 -

Surplus / (deficit) on ordinary activities before taxation 21,481 (22,049)

Tax on surplus on ordinary activities for the year - -

Surplus / (deficit) for the year 21,481 (22,049)

Other comprehensive expenditure

Actuarial loss (1,006) (41)Movement in fair valuation reserve (2,231) (1,868)

Total other comprehensive expenditure (3,237) (1,909)

Total comprehensive income / (expenditure) 18,244 - (23,958)

All activities were on a continuing basis. The accompanying notes 1 to 26 form an integral part of this statement ofcomprehensive net expenditure.

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STATEMENT OF FINANCIAL POSITION

31 MARCH 2015

Notes At 31.3.2015 At 31.3.2014 At 1.4.2013

(Restated) (Restated)

£'000 £'000 £'000

Non-current assets

Trade and other receivables falling due after one year 12 1,797 1,989 1,648

Total non-current assets 1,797 1,989 1,648

Current assets

Film rights 7 7,561 15,358 16,375 National Lottery Distribution Fund 3 61,160 55,817 52,841 Trade and other receivables falling due within one year 12 2,188 2,049 2,757 Cash and cash equivalents 13 4,396 2,538 4,631

Total current assets 75,305 75,762 76,604

Current liabilities

Trade and other payables 15 (472) (455) (88)Other payables - award commitments 16 (34,211) (34,050) (8,429)

Total current liabilities (34,683) (34,505) (8,517)

For the year ended 31 March 40,622 41,257 68,087

Non-current liabilities

Other payables - award commitments payable after more than one year 16 (17,686) (34,554) -

Pension liability 9 (2,851) (1,663) (1,426)Provision for award commitments 17 (367) (3,758) (41,080)

Total non-current liabilities (20,904) (39,975) (42,506)

Assets less liabilities 21,515 3,271 27,229

21,515 -

Capital and reserves

Lottery reserve 23,040 1,377 23,230 Fair valuation reserve 1,326 3,557 5,425 Pension reserve (2,851) (1,663) (1,426)

21,515 3,271 27,229

21,515 -

The accompanying notes 1 to 26 form an integral part of this statement of financial position.

The financial statements were approved and authorised for signature by the Governors on 14 July 2015.

________________

Amanda Nevill

__________________

Alison CornwellChair, Audit, Risk and Governance Committee

Chief Executive

100

STATEMENT OF CASH FLOWS


Notes 2014-15 2013-14

(Restated)

£'000 £'000

Net cash inflow from operating activities 21 (45,796) (44,218)

Cashflows from investing activities 21 47,654 42,125

(Decrease)/increase in cash in the year 21 1,858 (2,093)

Cash and cash equivalents at 1 April 2,538 4,631

Cash and cash equivalents at 31 March 4,396 2,538

The accompanying notes 1 to 26 form an integral part of this statement of cash flows.

101

STATEMENT OF CHANGES IN EQUITY


Lottery Fair Valuation Pension Total

Reserve Reserve Reserve Reserve

£'000 £'000 £'000 £'000

Balance at 1 April 2013 (restated) 23,230 5,425 (1,426) 27,229

Surplus for the year (restated) (21,853) - (196) (22,049)

Remeasurements in the year - - (41) (41)

Movement in fair valuation reserve - (1,868) - (1,868)

Balance at 31 March 2014 (restated) 1,377 3,557 (1,663) 3,271

Surplus/(deficit) for the year 21,663 - (182) 21,481

Re-measurements in the year - - (1,006) (1,006)

Movement in fair valuation reserve - (2,231) - (2,231)

Balance at 31 March 2015 23,040 1,326 (2,851) 21,515

The accompanying notes 1 to 26 form an integral part of the statement of changes in equity.

102


1. ACCOUNTING POLICIES

Transfer of Lottery distributor status

Apportioned costs

National Lottery Distribution Fund

Financial instruments

Film rights

In accordance with the Direction issued by the Secretary of State for Culture, Media and Sport, financial statements have also been prepared for the BFI Group activities as a whole.

Other Lottery financial instruments include trade receivables and payables that arise directly from Lottery operations. The main risks arising from the financial instruments in the Lotteryaccounts are interest rate risk, foreign currency risk and other price risk.

The share of proceeds and investment returns attributed to the BFI has been treated as income within these financial statements.

As required by the Secretary of State for Culture, Media and Sport in the revised Accounts Direction, Lottery awards are now to be accounted for on an accruals basis. Where the BFI has made a firm offer of a grant to a film rights or a non-film rights project, which together with the relevant conditions has been accepted by the recipient and the conditions of the grant have been fully met, the award is recognised as a payable. Where the BFI has agreed in principle to fund a scheme or project and made an offer, but the offer has not been accepted nor the associated conditions precedent met, the award is provided for in full at the year end. However, where the BFI has agreed in principle to fund a project in which it will take rights of recoupment ('film rights'), but the offer has not been accepted nor the associated conditions met, as the associated assets of the project can not yet exist, the award is treated as a financial commitment at the year end. These financial commitments are recognised by way of a note to the financial statements, whereas the liabilties and provision are recognised in the financial statements.

The changes in the Accounts Direction have led to a restatement of the 2013-14 figures as detailed in note 2.

The BFI incurred costs which are shared between Lottery and other activities, relating to operating costs for the year, restructuring costs and costs arising from capital spend attributable toLottery. The BFI is required to apportion costs in accordance with the principles of full cost recovery as outlined in Managing Public Money. In addition to costs wholly attributable to Lotteryactivities, an assessment is made of the other costs attributable to Lottery activities incurred by service and other departments. This is based on a combination of head count, office spaceoccupied, activity levels and additional expenditure incurred. These departments include Finance & Resources, Marketing, Monitoring, Partnerships and the offices of the Chief Executiveand Deputy Chief Executive.

From 1 April 2011, the status of Lottery Distributor for Film was transferred to the British Film Institute (BFI) from the UK Film Council (UKFC) in accordance with Statutory InstrumentSI685/2011. The UKFC’s Lottery assets and liabilities, and share of future revenue streams, transferred to the BFI as at that date. Under the Transfer of Undertakings (Protection ofEmployment) (TUPE) legislation the related staff employed on Lottery activities also transferred to the BFI.

These financial statements are prepared on a going concern basis under the historical cost convention, and in accordance with the Accounts Direction issued by the Secretary of State forCulture, Media and Sport with the consent of Treasury. These meet the requirements of section 35(3) of the National Lottery etc Act 1993 (as amended by the National Lottery Act 1998)and applicable Accounting Standards, except certain headings have been amended in order to reflect special circumstances of the charity. The requirements of the Accounts Directionsissued to the BFI for its activities as a Lottery distributor under the National Lottery etc Act 1993 have been followed for the treatment of the Lottery awards. These were revised in 2014-15by the Department for Culture, Media and Sport (DCMS) so awards are accounted for on an accruals basis rather than a commitment basis, leading to the restatement of the prior yearfigures in these financial statements. See note 2.

The financial statements have been prepared in accordance with the Government Financial Reporting Manual (FReM) issued by HM Treasury. The accounting policies contained in theFReM apply International Financial Reporting Standards as adapted or interpreted for the public sector context. Where the FReM permits a choice of accounting policy, the accountingpolicy which is judged to be most appropriate to the particular circumstances of the BFI for the purpose of giving a true and fair view has been selected. The particular policies adopted bythe BFI are described below and they have been applied consistently in dealing with items that are considered material to the accounts.

Award commitments payable within one year of the statement of financial position are recognised in the statement as current liabilities. Those payable more than one year from the date ofthe statement of financial position are shown as commitments payable over more than one year. Commitments for future years have been entered into which take into account incomeforecasts provided by the Department for Culture, Media and Sport (DCMS). These forecasts take a conservative view of future income.

There are no standards and interpretations in issue but not yet adopted by the BFI that the directors anticipate will have a material effect on the reported income or net assets.

Accruals convention

Income and expenditure is accounted for on a receivable basis. The exception to this is recoupment income because of the inherent difficulties in relating the income to the period to which it relates. Recoupment income is therefore accounted for upon notification of amounts received by the BFI. Commitments are reported as per the National Lottery etc. Act 1993.

In 2013-14, in line with our five year Business Plan Film Forever 2012-17 , multi-year lottery awards were made covering the four years to March 2017. These include the awards to Into Film regarding our education strategy, Creative Skillset regarding industry skills and training and Unlocking Film Heritage. In line with the National Lottery etc Act 1993 and BFI Lottery Accounts Direction these awards have been accounted for on an accruals basis with the full committed funds being taken to the statement of comprehensive net expenditure in the year in which the award was approved in principle by the BFI.

Certain aspects of these financial statements involve the exercise of judgement in ascertaining the valuations used. In the year these included the valuations of film rights, the basis of therecharge of operating costs and the costs arising from the transfer of functionality to the BFI.

A copy of the Accounts Direction is available from the Secretary to the Board of Governors, 21 Stephen Street, London W1T 1LN.

Balances held in the National Lottery Distribution Fund (NLDF) remain under the stewardship of the Secretary of State for Culture, Media and Sport. The share of these balancesattributable to the BFI is as shown in the financial statements at an estimate of market value and, at the date of the statement of financial position, has been certified by the Secretary ofState for Culture, Media and Sport as being available for distribution by the BFI in respect of current and future commitments.

Film rights represent loans paid and advances paid and payable to filmmakers. All advances to filmmakers are repayable under certain conditions. Where a feature film made with theassistance of the BFI is successfully released, the BFI is entitled to participate in revenues generated by that success. This can lead to repayment of the investment in full, together with ashare of the profits generated by the film.

Under International Financial Reporting Standards (IAS 32, 39 and IFRS 7) film rights fall within the definition of Financial Instruments. Within that, they meet the definition of 'available for sale' financial assets and are therefore shown in the statement of financial position at fair value. The fair value is based upon cash flows and models of future income that may be generated by the film right asset. The calculations behind these models are based upon external factors such as sales agents estimates; actual sales made, the recoupment order agreed in the financing contract between investors, the skills and expertise of management involved in this calculation and a review of the historic performance of the portfolio.

When an advance is made (satisfying the definition of an award liability as above) it is taken to the statement of financial position initially at the full value of the award. An assessment is then made of the likely repayment of an advance that will occur over the next three years, with the valuation reduced by impairments to the extent that full repayment of an advance, through actual receipts and the value of future estimated receipts, is considered doubtful. The initial impairment is calculated either as standard percentage suggested by historic recoupment performance of that particular type of award, or based on the value suggested by future estimated receipts. The approach taken will depend on the stage of the film, the type of award and other external factors.

In subsequent years, the valuations are reviewed to ensure that all revenues due are received and the valuation remains appropriate. The valuations are based on the best availableinformation at the statement of financial position date and, particularly in relation to new awards, the valuations will change over time. For instance, following the release of a film, theactuality of sales of territories and box office performance may exceed or fall below the intial valuations.

Film is released in different countries and on different platforms at different times, with for instance the DVD release of a film being at least a year after the cinema release. However, thevaluation assessment of the film rights covers the full release cycle of the film. Reflecting this, management will not typically reverse an impairment provision on films in the first threefinancial years following award unless it is triggered by a cash receipt in the financial year.

103



Foreign currencies

Lease costs and commitments

Pensions

Reserves

Estimates and judgements

· IFRS 13 - Fair value measurement· IAS 36 - 'Impairment of assets' on recoverable amount disclosures (amendment)

The pension reserve represents the liability arising on the valuation of the BFI pension fund at year end, as notified by the actuaries.

Film recoupment income

Income received from film rights is offset against the value of the film rights on the statement of financial position.

Income in excess of the original value of the rights is taken to the statement of comprehensive income as film recoupment income and, where appropriate, through the fair value reserve.

Estimates and judgements have been used in the production of these accounts, notably with regard to the valuation of film rights as at the year end. Details on the judgements andestimation involved are set out in the Film Rights accounting policy above and note 7: Film Rights and Impairments.

The Lottery reserve primarily represents the carrying value of film investments made by the UK Film Council prior to 31 March 2011 and British Film Institute since 1 April 2011, anduncommitted funds held at the National Lottery Distribution Fund, which are offset by all outstanding award liabilities.

If the valuation of the film rights is in excess of the amount of the award investment based on estimated recoupment over the next three financial years, then this is taken to a fair valuereserve, and released to income as the recoupment is received.

The BFI operates a defined benefit pension scheme for employees, with an apportionment of the costs and liability being made to Lottery on an assessment of appropriate relative levels ofstaffing.

The pension liabilities and assets of the scheme are recorded in accordance with IAS 19. IAS 19 was revised in 2011 and is required to be applied for annual periods beginning on or after 1January 2013. The revised IAS is referred to as IAS19 (2011), It measures the value of pension assets and liabilities at the statement of financial position date, determines the benefitsaccrued in the year, and the interest on the scheme's assets and liabilities. The valuation is undertaken by a qualified actuary.

Rentals payable under operating leases are charged in the group statement of financial activity on a straight-line basis over the lease term. The proportion of costs which relate to Lotteryactivities is charged within these accounts.

Monetary assets and liabilities denominated in foreign currencies are retranslated at the rate of exchange ruling at the date of the statement of financial position. Transactions in foreigncurrencies are recorded at the rate ruling at the date of the transaction. All differences are taken to the statement of comprehensive net expenditure.

The fair value movement in the year of £2.23m is made up of a decrease in the fair value of film rights of £1.32m and a release from the reserve of £0.91m against recoupment received inthe year and taken as recoupment to the statement of comprehensive net expenditure.

A defined pension scheme is a post employment benefit plan. The BFI's net obligation in respect of this is calculated by estimating the amount of future benefits that employees haveearned in return for their service in the current and prior periods. That benefit is discounted to determine the present value.

Standards, amendments and interpretations to existing standards not yet effective

The application of any new or amended International Financial Reporting Standards is governed by their adoption into the FReM issued by HM Treasury. Usually such changes are not putinto effect by the FReM until the effective date of the related IFRS, although occasionally some changes are adopted early or might be delayed. The following standards have beenpublished but are not effective for the periods presented. The BFI has chosen not to adopt these standards early as they are either not relevant to the circumstances of the BFI LotteryDistribution activities or are not considered to have a significant impact on the financial statements:

Movements in impairments shown in the statement of comprehensive net expenditure reflect the net effect of increases and decreases in impairments against film rights in the year. Any impairment may be reversed in part or in full if the valuation understates the fair value of the film rights. Advances for development and short film awards are fully impaired in the year of the award, unless there is a reasonable expectation of repayment. These awards are of low value and management do not feel that to include a valuation would have a material impact upon the user of these accounts.

If the valuation of the film rights is in excess of the amount of the award investment based on estimated recoupment over the next three financial years, this is taken to a fair value reserveand released to income as the recoupment is received. In the context of the life of a film and its distribution cycle, three years is felt to be a reasonable period over which a meaningfulforecast can be taken.

Should the full amount of an award for film rights not be utilised, any unused element of the funding will be decommitted. If such a decommitment exceeds the impaired value of the film,then any necessary impairment will be released back to the statement of comprehensive net expenditure so the remaining impairment is not greater than the value of the revised investmentvalue.

104


2. RETROSPECTIVE RESTATEMENT

At 1 April 2013 31 March 2013

published

accounts

Accounting

policy change

(see 1 below)

1 April 2013

restated

£'000 £'000 £'000

1,648 - 1,648

76,604 - 76,604

(88) - (88)

(8,429) - (8,429)

(8,517) - (8,517)

- (41,080) (41,080)

Statement of financial position Non-current assetsCurrent assetsCurrent liabilities:

Trade and other payablesOther payables - award commitments Total current liabilitiesNon-current liabilities:

Provision for award commitments Pension liabillity (1,426) - (1,426)

Assets less liabilities 68,309 (41,080) 27,229


Lottery reserve 64,310 (41,080) 23,230

Fair valuation reserve 5,425 - 5,425

Pension reserve (1,426) - (1,426)

68,309 (41,080) 27,229


31 March 2014

published

accounts

Impact of

accounting

policy change

at 1 April 2013

(see 1 below)

Impact of

accounting

policy change

in 2013-14

(see 2 below)

Adjustment

of error

(see 3 below)

31 March

2014 restated

£'000 £'000 £'000 £'000 £'000

Expenditure:

Total multi-year funding (71,625) 41,000 - (1,050) (31,675)

Total project funding (7,872) 80 (1,862) - (9,654)

Total activity support (623) - - - (623)

Lottery - non-film rights awards (80,120) 41,080 (1,862) (1,050) (41,952)

(62,126) 41,080 (1,862) (1,050) (23,958)

Statement of financial position

Non-current assets 1,989 - - - 1,989

Current assets 75,762 - - - 75,762

Current liabilities:

Trade and other payables (455) - - - (455)

Other payables - award commitments (33,700) - - (350) (34,050)

Total current liabilities (34,155) - - (350) (34,505)

Non-current liabilities:

Other payables - award commitments payable after more than one year (35,750) - 1,896 (700) (34,554)

Provision for award commitments - - (3,758) - (3,758)

Pension liability (1,663) - - - (1,663)

Assets less liabilties 6,183 - (1,862) (1,050) 3,271


Lottery reserve 4,289 - (1,862) (1,050) 1,377

Fair valuation reserve 3,557 - - - 3,557

Pension reserve (1,663) - - - (1,663)

6,183 - (1,862) (1,050) 3,271

Following the change in the Lottery Accounts Direction for 2014-15 issued by the Secretary of State to the BFI, from 1 April 2014 Lottery awards are to be recorded on an accruals basisrather than a commitments basis as had previously been the case. Approriate changes to accounting policies are outlined in Note 1 above. This note shows the restatements resultingfrom this.

(2) The additional adjustment required at 31 March 2014 from the accounting policy change is to recognise a provision at year end of £3.8m, comprising £1.9m as that part of the UnlockingFilm Heritage award not yet falling due at 31 March 2014, and £1.9m of new award commitments made during the year.

Statement of comprehensive net expenditure (extract only)

(3) As a result of the review of recognition points arising from the new Lottery Accounts Direction, it became apparent that in the audited accounts for 2013-14 in respect of the two TalentNetwork awards, we had only recognised the first year of what were multi-year commitments, with the subsequent years only being recognised for the first time in 2014-15. This adjustmentcorrects this, so that we reflect the awards in line with our accounting policies and recognition point for awards.

In addition, there is a restatement arising from the recongnition of two multi-year Talent Network awards, where only the first years' awards were recognised in the published accounts for2013-14 erroneously.

In prior year published accounts the different categories of awards were shown on the Statement of Comprehensive Net Expenditure, but in the the current year are summarised in a singletotal of Lottery - non-film rights awards, with the analysis given in note 6.

Total comprehensive net (expenditure)/income

The retrospective restatements detailed above have an impact on the statements of cash flows for 2013-14 in respect of two lines in the reconciliation of the operating surplus to the netcash flow from activities. These specific lines are: the operating surplus reduces (or the operating deficit increases) because of the increase in the multi-year and project funding recognisedin the SOCNE; and the associated increase in the non-current liabilities for non-film rights because of the increase in the provision or because of the increase in award commitmentspayable.

(1) The change of accounting policy relates to the change in recognition points arising from the new Lottery Accounts Direction issued in 2014 with immediate effect. This has led to the recognition of £41m of awards in the accounts by way of provision as at 1 April 2013, where the award had been notified to the grant recipient but contracts had not yet been signed or conditions precedent remained outstanding. This adjustment relates primarily to the award of £26m to Film Nation UK/Into Film and the award of £15m for Unlocking Film Heritage, both previously treated as soft commitments at 31 March 2013 and crystalising as hard commitments in 2013-14. This adjustment moves these awards out of 2013-14 expenditure and into a provision at 1 April 2013.

105


3. LOTTERY INCOME AND THE NATIONAL LOTTERY DISTRIBUTION FUND

The movement in balances held at the NLDF is as follows: 2014-15 2013-14

£'000 £'000

Opening balance held at the NLDF 55,817 52,841Income received from the Lottery 48,757 44,891Share of income following closure of the Olympic Lottery Distribution Fund (OLDF) 4,020 -Investment income earned 213 210

Available for distribution 108,807 97,942

Cash drawn down (47,647) (42,125)

Balance as at 31 March 61,160 55,817

2014-15 2013-14

£'000 £'000

379 460Unclaimed prize money 1,307 483

2014-15 2013-14

£'000 £'000

Total film receipts taken as income 941 2,2144,697 3,725

5,638 5,939

5. TRANSFER OF ACTIVITIES FROM CREATIVE ENGLAND

Creative England assets and liabilities transferred 1 April 2013

£'000

Cash at bank and in hand 576

Creditors amounts falling due within one year (78)

Net assets 498

6. NON-FILM RIGHTS AWARDS

Following the changes in the year in the NLDF investments by the National Debt Commissioners, there were no unrealised gains in the year (2014: nil).

Income received from the Lottery

Repayment of diversion regarding promotion of new games, prizes and price modelling

- repayment in the period to 2024 of the £58.2m deducted from Lottery receipts at source in 2013-14 by Camelot, in relation to promotion of the new games, prizes and price modelling thatcame into effect in October 2013. The BFI's share of this was £1.6m.

With the wind-up of the OLDF in 2014 and the transfer of funds back to the NLDF, £4m (2014: £nil) was repaid to the BFI. This repays in part those funds transferred to the OLDF as acontribution towards the costs of running the 2012 Olympic and Paralympic Games under Statutory Instrument (SI 2008 No. 255 The Payments into the OLDF etc Order 2008) under whichthe BFI/UKFC contributed £21.8m to the total transfer from the NLDF of £1,085m.

Repayment of the remaining £0.8m of the diversion regarding Lottery promotion is anticipated by 2024, however due to the uncertainties around the timings and actuality of the remainingrepayments, it has not been felt appropriate to treat this as income receivable as at the date of the statement of financial position.

Income received from a film rights is offset against the value of the film rights on the statement of financial position. Income in excess of the original value of the rights is taken to thestatement of comprehensive net expenditure as film recoupment income through the movement in fair value reserve.

- receipts of unclaimed prize money.

On 1 April 2013, the BFI took over responsibility for a range of activities previously undertaken by Creative England relating to audiences. As a result, Lottery assets totalling £576,000 weretransferred to the BFI along with five staff who transferred under Transfer of Undertakings (Protection of Employment) Regulations (TUPE). The Lottery assets and liabilities transferred aresummarised below:

A full analysis of recoupment income received in the year can be found in schedule 1 to these accounts.

Total film receipts taken against film rights on the statement of financial position

The funds are invested on behalf of the NLDF by the National Debt Commissioners. The BFI's distribution is in accordance with Sections 22 and 23 of the National Lottery etc. Act 1993 (asamended by the National Lottery Act 1998). The BFI is required by statute to show on the statement of financial position the lower of the market value or the cost of the investment as at theyear end.

The BFI receives income generated from rights in the portfolio of film projects invested in since 1 April 2011. Additionally under the transfer agreement with UKFC, the BFI receives allfuture income generated from rights in the portfolio of films transferred from the UKFC and Arts Council England at that date.

4. FILM RIGHTS RECEIPTS AND RECOUPMENT INCOME

The underlying cause of the increased income from Lottery is increased ticket sales. However, the income includes two other variable factors:

The activity support areas itemised below are those areas where it is deemed that activity on behalf of the industry and indeed the public at large, and funded by Lottery monies, are mostcost effectively and efficiently carried out by the BFI as the lead body for the film sector.

Repayment from the Olympic Lottery Distribution Fund (OLDF)

Non-film rights awards are made across a number of schemes operated by the BFI. While the majority of awards are for single projects which are anticipated to be completed within oneyear, some awards have been made over the period to March 2017, the period covered by the BFI Business Plan Film Forever to allow projects to run over a longer time scale and therebybenefit from the certainty and development potential of a longer funded period. In comparison to the previous years, no significant multi-year awards were made in 2014-15 and those of theprevious year are still live, leading to the reduction in value in new non-film rights awards in the year.

In addition, commitments of £498,000 outstanding at 1 April 2013 were also transferred across and are stated in full in expenditure in the restated figures for 2013-14.

As at 1 April

2013

Income received from Lottery therefore contains:

106


Analysis of non-film rights awards by strand: 2013-14

(Restated)

New awards in the

year

Decommit-

ments

Awards net of

fall ins

Awards net of

fall ins

£'000 £'000 £'000 £'000

Multi-year funding to period ending March 2017

Creative Skillset awards (300) - (300) (21,000)Film Network fund (1,128) - (1,128) (9,025)Focal points awards - - - (1,800)Film Festival awards - - - (600)Total multi-year funding (1,428) - (1,428) (32,425)

Project funding

Creative England (3,850) - (3,850) (3,895)International awards (1,935) 24 (1,911) (1,978)Film Academy awards (90) 27 (63) (700)Programme Development Fund (1,119) 13 (1,106) (695)Film Festivals awards (545) - (545) (1,427)Rewarding Success (334) - (334) (277)BFI Neighbourhood awards (214) - (214) (263)Film Culture awards - - - (498)Distribution and Exhibition awards - 41 41 96Film Fund and Regional awards (non-film rights) - 55 55 733Total project funding (8,087) 160 (7,927) (8,904)

Activity support

International (140) - (140) (138)Neighbourhoods (22) - (22) -Research and statistics (643) - (643) (485)Total activity support (805) - (805) (623)

Total Lottery non-film rights (10,320) 160 (10,160) (41,952)

7. FILM RIGHTS AND IMPAIRMENTS

2014-15 2013-14 2012-13 2011-12 2010-11

£'000 £'000 £'000 £'000 £'000

Production Awards 6,022 14,166 15,968 20,348 17,261Development and Vision Awards 1,188 876 270 813 752Other Awards 351 316 137 - -

7,561 15,358 16,375 21,161 18,013

2014-15 2013-14 2012-13 2011-12 2010-11

£'000 £'000 £'000 £'000 £'000

15,358 16,375 21,161 18,013 20,893

16,892 27,208 25,933 20,882 15,307

(149) (34) (197) - (390)(1,088) (17) (325) (84) (26)

(389) (791) (593) (550) (194)(4,307) (2,934) (5,640) (3,368) (6,160)

(13,519) (19,293) (18,850) (13,053) (9,323)(5,676) (5,069) (7,249) (5,285) (6,680)

2,670 1,781 3,822 1,193 1,420

(911) (2,205) (2,242) (3,477) (962)(1,320) 337 555 6,890 4,128

7,561 15,358 16,375 21,161 18,013

Vision Awards are made to production companies to enable them to develop their business and the awards are repayable from any applicable feature film production made by theproduction company. As we do not expect all recipients to be required to repay the award in full we routinely impair 50% of the award in the year in which it is committed.

Other awards include distribution awards which are awards made to distributors to support the release of a film in the UK and targeted development awards which are awarded to supportnew talent. These awards are written off in full in the year unless there is a reasonable expectation of recoupment.

Development awards are made to producers to support a film development. In the event that the development project progresses into a feature film production, we would be entitled to berepaid our award and take a share of net profits. Accordingly development awards are impaired in full in the year in which the award is made, unless there is a reasonable anticipation of itprogressing to production.

6. NON-FILM RIGHTS AWARDS (CONTINUED)

2014-15

A decommitment (or fall in) is when an award is reduced for any reason with the agreement, and usually at the volition of, the award recipient. The balance is written back against therelevant award strand in the statement of comprehensive net expenditure.

The BFI's primary objective in investing in film rights is to support the future success of British film by backing new voices, new stories, new ideas and skills, enriching and diversifyingBritish film production. Thus whilst the potential commerciality of a project is important in our assessment of an application it is not the key funding criteria.

The fair value of film rights at 31 March is as follows:

Film rights fall within the definition of 'available for sale' financial assets and are held at fair value. The valuation approach to establish the fair value of the film rights portfolio is set out inNote 1 Accounting Policies.

New commitments: made in year

Decommitments: new film rights in yearDecommitments: historical portfolio

Production awards are made to producers to co-finance feature film productions and from which we are entitled to recoup our award and take a share of net profits from the film. The valueof the productions will be dependent upon many factors which are inherently uncertain; the ability of sales agents to meet sales estimates, how the film will be critically and commerciallyreceived (including box office projections) all play a role. Further details are set out in the impairments note below.

Movements in the valuation of film rights

Film rights valuation at 1 April

Repayment of investments: new film rights in yearRepayment of investments: historical portfolio

Impairments: new film rights in yearImpairments: historical portfolioImpairments written back

Fair value movement in year: decrease for income already receivedFair value movement in year: increase/(decrease) in additional income expectation

Film rights valuation at 31 March

107


2014-15 2013-14 2012-13 2011-12 2010-11

£'000 £'000 £'000 £'000 £'000

(13,519) (19,293) (18,850) (13,053) (9,323)(5,676) (5,069) (7,249) (5,285) (6,680)

(19,195) (24,362) (26,099) (18,338) (16,003)

2,670 1,781 3,822 1,193 1,420

Net movement in impairments (16,525) (22,581) (22,277) (17,145) (14,583)

Additional commentary on movements each year

2014-15 2013-14

£'000 £'000

3,557 5,425(911) (2,205)

(1,320) 337

1,326 3,557

The value of new commitments made in the year will vary due to timing differences arising from the closure of awards.

The decommitments in 2014-15 of £1.2m are substantially higher than those of prior years due largely to a review of the historic development awards which resulted in a number of awardsbeing reduced in value.

To the extent that the development award had an impairment provision, the impairment provision was written back before the full value of the award was decommitted.

Of the recoupment received in 2014-15, £0.6m was in respect of 52 production awards (an average of £12,049 per award) which were valued at nil at 1 April 2014 (2013-14: £0.6m on 45production awards with a nil balance at 1 April 2013). Due to the low average return and the uncertainties of any future receipts we feel that to value these individual awards at year end atother than zero would not have a material impact upon the film rights valuation. Our policy is to only revalue film rights upwards when there is clear evidence of future revenues.

7. FILM RIGHTS AND IMPAIRMENTS (CONTINUED)

Movements in impairments in the year are as follows:

Impairments: new film rights in yearImpairments: historical portfolio

Impairments written back: historical portfolio

The value of impairments on new film rights in the year is always governed by the value of awards made and therefore can vary considerably year to year.

Because of this uncertainty, new production awards are written down to 20% (2014: 20%) of the award amount in the year that they are first committed, based on historic performance of theportfolio. However, in the event that there is evidence that potential future incomes would exceed 20% of the initial award such as pre-sales and sales estimates, the higher value indicatedby these estimates would be used. As at 31 March 2015 45% (2014: 43%) of the total new production awards were written down to 20%.

If those production awards issued in year where the 20% valuation is applied were to experience recoupment levels at +/- 5% of the award amount, the impact on the valuation of film rights at 31 March 2015 would be +/- £0.4m (2014: £0.4m).

Where the valuation of new production awards has not been based on the 20%, were the recoupment levels and valuation to vary by +/- 5%, the impact on the valuation of film rights at 31March 2015 would be £0.01m (2014: £0.5m).

For historic production awards (i.e. not new production awards), were the recoupment levels and valuation to vary by +/- 5%, the impact of the valuation of film rights at 31 March 2015would be £0.7m for 178 awards (2014: £0.5m for 94 awards).

We have reduced over time the base valuation rate of new production awards from 50% as at 1 April 2010, to 30% as at 1 April 2011 and to 20% as at 31 March 2015, with a consequenteffect on the historic portfolio. This reflects the changing position taken with regard to our awards and the assessment of experienced performance. Based on the current valuation point of20%, we anticipate the net impairment figure will be reduced in future years.

In 2010-11 the main additional impairments related to Brighton Rock (£0.6m), Chalet Girl (£0.5m), Tracker (£0.5m) and Another Year (£0.6m). The fair value gains reflected the immediatesuccess of The King's Speech which recouped its initial investment within weeks of its critical and commercial success. With the announcement of the closure of the UK Film Council, thelevels of new awards made inevitably fell, which had an impact on new film rights in the year.

In 2011-12 the largest increase in provisions related to the write off of the remaining rights valuation on Sunshine (£1.9m), Notes On A Scandal (£0.6m) and Wuthering Heights (£0.3m) andan additional provision with regard to Attack The Block (£0.3m). The fair value gains reflected the on-going commercial success of The King's Speech and anticipated future revenues fromthis, with the project having a year end fair value of £6.3m.

Fair value reserve at 1 AprilDecrease for income received(Decrease)/increase for expected future income

Fair value at 31 March

In 2012-13 with the launch of the new Film Forever plan and the announcement of our Lottery funding strategy, the levels of commitments began to increase. New projects with titles takento film rights included Belle, The Invisible Woman and '71. The largest increase in provisions related to writing off the remaining rights valuations on Great Expectations (£0.6m), SevenPsychopaths (£0.6m) and Streetdance Encore (£0.5m). Overall the fair value reserve fell by £1.7m due to the recoupment funds in relation to The King's Speech previously anticipated inthis reserve.

In 2013-14 the levels of commitment remained broadly consistent with those of the previous year, in line with the Film Forever business plan. New projects with titles taken to film rightsincluded Bill, The Riot Club, Sunset Song and Suffragette. The largest increase in provisions related to the write off of rights valuations for Under the Skin (£0.9m), Bill (£0.8m) and Jimmy'sHall (£0.6m). Overall the fair value reserve fell by £1.9m due in part to the recoupment funds in relation to The King's Speech previously anticipated in this reserve.

In 2014-15 the level of new commitments crystallising as film rights reduced primarily due to the lower number and value of production awards in the year. New film rights recognised in theyear include Trespass Against Us and High Rise. The largest movement in provisions relates to the write off of rights valuations for High Rise (£1m), War on Everyone (£0.9m) and TheOnes Below (£0.6m). Overall the fair value reserve has fallen by £2.2m largely due to the recoupment of funds in relation to The King's Speech and a reduction in the future valuation of thisproject.

Fair value adjustments in the year can be summarised as follows:

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8. STAFF COSTS

No member of the Board of Governors received remuneration during the year (2014: none).

The costs of staff working wholly on Lottery activities comprised: 2014-15 2013-14

£'000 £'000

Wages and salaries 1,488 1,451Social Security costs 172 150Pension service costs and other pension costs 311 279

1,971 1,880

The average number of staff (full-time equivalents) employed during the year was made up as follows: 2014-15 2013-14

Number Number

Management and administration:Permanent staff 28 27

28 27

Attributable

2014-15 to Lottery

£ % £

Amanda NevillSalary and benefits 141,297 77,713Bonus - -

Total 141,297 55.0% 77,713

Pension contribution 17,238 9,481

Attributable

2013-14 to Lottery

£ % £

Amanda NevillSalary and benefits 139,896 76,943Bonus - -

Total 139,896 55.0% 76,943

Pension contribution 29,098 16,004

9. PENSION BENEFITS

Number

Salaries/

pensions Average age

£'000s

Actives 291 11,168 45 Deferred pensioners 467 1,474 46 Pensioners 328 2,245 69 Unfunded pensioners 44 167 68

2014-15 2013-14

% %

Rate of increase in salaries 3.7 4.1Rate of increase in pension payments 2.4 2.8Discount rate 3.3 4.5Inflation assumption (CPI) 2.4 2.8

Average life expectancy at 65: Males Females

Current pensioners 22.2 25.2Future pensioners 24.5 27.5

In 2013-14 the BFI adopted the revision to pensions reporting as per IAS19 and this has not had a material impact on the financial statements. The prior year comparatives for total pensionassets and liabilities and the net pension liability have not changed with the revised valuation methodology. However we have reclassified the disclosure of the actuarial gains and losses(now called remeasurements) and items recognised in the statement of comprehensive net expenditure in the prior year comparative figures below.

Following the advice of the consulting actuaries to the scheme, the BFI’s employer contributions for current service (as a percentage of the pensionable salary) were set at 12.2%throughout the year (2014: 12.8%).

The BFI is an admitted body of the LPFA. The majority of the Charity's staff are members of the scheme. The table below summarises the full membership data of the scheme as at 31March 2013 for members receiving funded benefits, and as at 31 March 2015 for any members receiving unfunded benefits

A valuation under IAS19 as at March 2015 was carried out by a qualified independent actuary. The assumptions used by the actuary for the BFI’s scheme were:

Although membership of the scheme is open to all employees, only those costs relating to staff employed on Lottery activities are disclosed in these accounts. An apportionment of thepension assets and liabilities is calculated on the basis of the numbers of staff employed on Lottery activities and their pensions contributions in year as a percentage of those of the wholeorganisation.

Staff costs for the year are contained within the costs apportioned from grant-in-aid on the statement of comprehensive net expenditure.

The percentage of the remuneration of the Chief Executive Officer apportioned to Lottery is reviewed on an annual basis.

The pension scheme is a defined benefit scheme and is funded by employees and employers at actuarially determined rates. Employer contributions charged for members of the scheme amounted to £248,000 (2014: £169,000)

The remuneration of the Chief Executive Officer and costs attributable to Lottery during the year are as follows:

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9. PENSION BENEFITS (CONTINUED)

The estimated asset allocation as at 31 March was: 2014-15 2013-14

Long term Long term

rate of return rate of return

expected expected

£'000 £'000

Equities 3,186 3,592LDI/cashflow matching 550 407Target return portfolio 2,128 2,033Infrastructure 360 271Commodities 66 68Property 205 203Cash 844 203

Total market value of assets 7,339 6,777

The net pension liability was: At 31.3.2015 At 31.3.2014 At 1.4.2013

£'000 £'000 £'000

Present value of funded obligation (10,190) (8,440) (7,970)Fair value of scheme asset 7,339 6,777 6,544

Net liability (2,851) (1,663) (1,426)

The amounts recognised in the statement of comprehensive net expenditure are as follows: 2014-15 2013-14

£'000 £'000

(348) (191)(72) (165)

Service costNet interest on the defined liability Administration expenses (10) (10)

Total (430) (366)

Actual return on plan assets 455 152

Amounts recognised in statement of changes in equity: 2014-15 2013-14

£'000 £'000

Return on plan assets in excess of interest 151 (39)Other actuarial gains/(losses) on assets - 34Change in financial assumption (1,154) (225)Change in demographic assumptions - (27)Experience gain/(loss) of defined benefit obligation (3) 216

Remeasurements recognised in the statement of changes in equity (1,006) (41)

Cumulative remeasurements in statement of changes in equity (4,100) (3,093)

Changes in the present value of the defined benefit obligation: 2014-15 2013-14

£'000 £'000

Opening defined benefit obligation (8,440) (7,970)Current service cost (202) (191)Interest cost (377) (355)Contributions by members (97) (57)Change in financial assumptions (1,154) (225)Change in demographic assumptions - (27)Experience gain/(loss) on defined benefit (3) 216Impact of settlements and curtailments (146) -Benefits paid 229 169

Closing defined benefit obligation (10,190) (8,440)

Changes in the fair value of the scheme assets: 2014-15 2013-14

£'000 £'000

Opening fair value of employer assets 6,777 6,544Contributions by members 97 57Contributions by employer 248 169Interest on assets 305 191Return on assets less interest 151 (39)Other actuarial gains/(losses) - 34Admin expenses (10) (10)Benefits paid (229) (169)

Closing fair value of employer assets 7,339 6,777

The overall expected rate of return on scheme assets for accounting years beginning on or after 1 January 2013, the expected return and the interest cost have been replaced with a singlenet interest cost, which has effectively set the expected return on assets to be equal to the discount rate of 3.3%.

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9. PENSION BENEFITS (CONTINUED)

The sensitivity analysis on the major assumptions in the above is:£'000 £'000 £'000

Adjustment to discount rate +0.1% 0.0% -0.1%Present value of total obligation 10,000 10,190 10,384 Projected service cost 308 315 322

Adjustment to long term salary increase +0.1% 0.0% -0.1%Present value of total obligation 10,214 10,190 10,167 Projected service cost 315 315 315

Adjustment to pension increases and deferred valuation +0.1% 0.0% -0.1%Present value of total obligation 10,362 10,190 10,022 Projected service cost 322 315 308

Adjustment to mortality age rating assumption +0.1% 0.0% -0.1%Present value of total obligation 9,867 10,190 10,513 Projected service cost 305 315 324

A history of experience gains and losses is shown below: 2014-15 2013-14

£'000 £'000

Fair value of employer assets 7,339 6,777Present value of defined benefit obligation (10,190) (8,440)Deficit (2,851) (1,663)

Experience (losses)/gains on assets 455 152Experience gains/(losses) on liabilities (3) 216

10. OPERATING COSTS

2014-15 2013-14

£'000 £'000

Operating costs 4,626 4,346Auditor's remuneration - National Audit Office 52 40Release of bad debt provision - 300

4,678 4,686

11. RESTRUCTURING COSTS

2014-15 2013-14

£'000 £'000

Release of prepayment of capital transfer to BFI 369 187Other costs of change 340 95

709 282

Operating costs relate to the costs of those departments that directly administer Lottery Distribution activities and the costs relating to centralised functions within the BFI that areapportioned to Lottery. These are the offices of the CEO and Deputy CEO, Partnerships, Finance, Facilities, HR, IT, Monitoring, Marketing, Strategic Development, Research and Statisticsand Certification. The apportionment is based on a review of the work of these departments and is set at an appropriate percentage recharge in light of this.

Auditor's remuneration was £51,500 which includes additional fees of £6,000 for the National Audit Office relating to the prior year audit (2014: £40,500).

In 2013-14 repayment of £300,000 was received in respect of a historical debtor from UK Film Council which had previously been provided against in full.

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12. TRADE AND OTHER RECEIVABLES

At 31.3.2015 At 31.3.2014 At 1.4.2013

£'000 £'000 £'000

Trade and other receivables falling due within one year

Prepayments and accrued income 417 290 187 Trade debtors 490 487 970 VAT receivable 92 1,197 332 Other receivables - BFI non-Lottery 876 - 401 Other receivables 313 75 867

Total trade and other receivables 2,188 2,049 2,757

At 31.3.2015 At 31.3.2014 At 1.4.2013

£'000 £'000 £'000

Trade and other receivables falling due after one year

Prepayments and accrued income 1,797 1,989 1,648

Total trade and other receivables 1,797 1,989 1,648

At 31.3.2015 At 31.3.2014 At 1.4.2013

£'000 £'000 £'000

Analysis of trade and other receivables

Payable by central government 3,182 3,477 1,014Payable by local authorities - - 0Payable by bodies external of Government 803 561 3,391

3,985 4,038 4,405

13. CASH AND CASH EQUIVALENTS

All Lottery cash balances are held in commercial bank accounts.

14. FINANCIAL RISKS

Film rights

At 31.3.2015 At 31.3.2014

£'000 £'000

Film rights valuations at 31 March 7,561 15,358

Liquidity risks

Lottery cash inflows can be analysed as: £'000 % £'000 %

Income received from the National Lottery 52,777 90.0% 44,891 87.1%Investment returns from the balance held at the NLDF 213 0.3% 210 0.4%Recoupment income from film rights 5,638 9.6% 5,939 11.5%Other legacies, grants and donations 45 0.1% 498 1.0%

58,673 100.0% 51,538 100.0%

2014-15 2013-14

£'000 £'000

61,160 55,8174,396 2,538

65,556 58,355

2014-15 2013-14

restated

£'000 £'000

Lottery awards payable 51,897 68,604367 3,758

6,399 3,287

58,663 75,649

Under/(over) commitment against funds available at 31 March 6,893 (17,294)

NLDF balance at 31 March as notified by the Secretary of State for Culture, Media and SportLottery funds held in cash and cash equivalents by the BFI at 31 March

Provision for non-Lottery film rights awardsFilm rights award allocations noted as commitments

The over-commitment of funds in 2013-14 reflects the granting of multi-year commitments payable over the period to 2017. Commitments for future years have been entered into which takeinto account income forecasts provided by the Department for Culture, Media and Sport (DCMS). These forecasts take a conservative view of future income.

International Financial Reporting Standards require disclosure of the role which financial instruments have had during the period, in creating or changing the risks the BFI faces in undertakingits role.

Under International Financial Reporting Standards relating to Financial Instruments (IAS32, IAS39 and IFRS7), film rights fall within the definition of financial instruments and within that meetthe definition of ‘available for sale financial assets’ and are therefore shown in the statement of financial position at fair value.

Establishing the fair value of film rights is subjective and therefore contains an element of risk. The fair value is based on a review of external evidence such as the sales agents' estimatesas to the likely revenues generated by a project, where it is in the life cycle of the project, and upon actual performance of the film to date. This is matched with the knowledge and experienceof the staff and management involved in the process of assessing the projects both at application stage and as they come to fruition. Any reduction in fair value is immediately taken to thestatement of comprehensive net expenditure in the year.

The valuation of film rights is subject to on-going review to ensure a fair value is maintained, with any impairments being charged as expenditure. Any increase in the fair value beyond theoriginal investment value is taken to reserves and only released as income on the actual receipt of funds.

2014-15 2013-14

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14. FINANCIAL RISKS (CONTINUED)

Interest rate risks

2014-15 2013-14

£'000 £'000

61,160 55,817Average investment return at NLDF 0.50% 0.78%

2014-15 2013-14

£000s £000s

4,396 2,5380.20% 0.10%

Foreign currency risks

15. TRADE AND OTHER PAYABLES

At 31.3.2015 At 31.3.2014 At 1.4.2013

£'000 £'000 £'000

Other payables - BFI non-Lottery - 157 -Other payables 472 298 88

472 455 88

Analysis of other payables:Payable to central government - 157 -Payable to bodies external of government 472 298 88

472 455 88

16. OTHER PAYABLES - AWARDS COMMITMENTS

At 31.3.2014

At 31.3.2015 restated

£'000 £'000

68,604 8,429 16,892 27,208 3,758 39,184 8,881 40,216

(1,237) (925)

At 1 AprilNew film rights commitments in yearCommitments transferred from prior year provision for non-film rights awards New non-film rights commitments in yearDecommitmentsAmounts paid (45,001) (45,508)

At 31 March 51,897 68,604

Commitments transferred from the provision for non-film rights awards are as follows: At 31.3.2015 At 31.3.2014

Prior Year Provision New Provisions Total restated

£'000 £'000 £'000 £'000

Creative England - 3,850 3,850 3,920Unlocking Film Heritage 1,896 - 1,896 13,104International awards 28 1,848 1,876 2,061Film festival awards 1,063 388 1,451 971Programme Development Fund awards 187 1,053 1,240 1,636Film Audience Network awards - 1,128 1,128 9,015Talent development awards 400 - 400 350Creative Skillset - 300 300 21,000Neighbourhood awards 77 214 291 196Film Academy awards - 100 100 700Film Culture awards 61 - 61 437Other awards 46 - 46 10Film Educations awards - - - 26,000

3,758 8,881 12,639 79,400

The BFI’s financial assets are not exposed to material foreign exchange risks as long-term balances are held in sterling.

Average interest rate on cash held in variable rate bank accounts

Cash drawn from the NLDF, or received from other sources, to pay grant commitments and operating costs are held in variable rate bank accounts:

An analysis of new fllm rights commitments in the year is to be found in Schedule 1 below. An analysis of provisions for award commitments is to be found in note 17 below.

Lottery funds held in cash and cash equivalents by the BFI at 31 March

In consequence, and as anticipated, the value of commitments outstanding at 31 March 2015 has reduced, as one year's worth of payments against these awards has been released duringthe year, with no substantial further multi-year awards being made.

Decommitments arise when any element of the award is not utilised once contracts are signed and drawdown has commenced.

It is anticipated that all other payables as at 31 March 2015 fall due within one year.

Market value of BFI investment at NLDF at 31 March

The BFI’s largest financial asset is retained in the NLDF, which invests in a narrow band of low risk assets such as Government bonds and cash. Neither the BFI nor its Governors has anycontrol over these investments. The interest rate risks in respect of these financial assets are disclosed in the financial statements of the NLDF.

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16. OTHER PAYABLES - AWARDS COMMITMENTS (CONTINUED)

New non-film rights commitments in the year: 2013-14

2014-15 restated

£'000 £'000

Multi-year awards for the period to March 2017:

Creative Skillset awards 300 21,000Film Network Fund 1,128 9,025Focal points awards - 1,400Film Festivals Fund - 600Total multi-year awards 1,428 32,025

Project funding:

Creative England 3,850 3,850International awards 1,848 2,061Film Festivals awards 388 371Film Academy awards 100 700Programme Development Fund 1,053 508Film Culture awards - 515BFI Neighbourhood awards 214 186Total project awards 7,453 8,191

New commitments in year 8,881 40,216

2014-15 2013-14

£'000 £'000

Non-film rights awards taken to SOCNE in the year 10,160 41,952Less spend on activity support in year (805) (623)Less new awards in year taken to SOCNE but recorded by way of provision at year end (367) (1,862)Add back decommitments of awards from prior years taken as negative spend on SOCNE (107) 749

New non-film rights commitments taken as awards payable 8,881 40,216

Ageing of award commitments, estimated date of payment At 31.3.2015 At 31.3.2014 At 1.4.2013

Restated

£'000 £'000 £'000

Year ended 31 March 2014 - - 8,429Year ended 31 March 2015 - 34,050 -Year ended 31 March 2016 34,211 17,277 -Year ended 31 March 2017 17,686 17,277 -

51,897 68,604 8,429

17. PROVISIONS

2013-14

2014-15 restated

£'000 £'000

At 1 April 3,758 41,080New provisions in the year 9,408 42,078Provisions written back in year (160) -Transferred to other payables - award commitments (12,639) (79,400)

At 31 March 367 3,758

A provision written back arises when the conditions of the terms of the award are not met prior to signature of contract.

The year end provision relates to awards made by the BFI across a number of strands:2013-14

2014-15 Restated At 1.4.2013

£'000 £'000 £'000

Film Academies 57 - -Film Culture - 61 -Film Education - - 26,000Film Festivals 156 1,063 -International 87 28 -Neighbourhood - 77 -Other Partnerships - 46 80Programme Development Fund 67 187 -Talent network - 400 -Unlocking Film Heritage - 1,896 15,000

367 3,758 41,080

At the date of the statement of financial position the BFI Lottery activities had no further provisions (2014: £nil).

The provision for non-film rights awards recognises those awards which have been made by the BFI, but where at the date of the statement of financial position either contracts have notbeen signed and/or the conditions precedent not met. Therefore these transactions are recognised as an award commitment but are not included in awards payable at the date of thestatement of financial position.

Reconciliaition of new awards in year per the statement of comprehensive net expenditure to new commitments, awards payable on the statement of financial position:

Commitments payable beyond 31 March 2016, relate to the multi-year awards made to Into Film, Creative Skillset, the Film Hub Lead Organisations, Unlocking Film Heritage and under theFilm Festivals Fund covering the period to March 2017. No commitments are anticipated to run beyond the BFI Business Plan Film Forever 2012-17.

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18. LEASES

At 31.3.2015 At 31.3.2014

£'000 £'000

Amounts payable within one yearAmounts payable within two to five years 1,160 1,160Amounts payable beyond five years 4,640 4,640

1,160 2,320

The proportion of these costs relating to these leases that form part of the costs apportioned to Lottery are:

At 31.3.2015 At 31.3.2014

£'000 £'000

Amounts payable within one yearAmounts payable within two to five years 261 261Amounts payable beyond five years 1,044 1,044

261 522

19. FINANCIAL COMMITMENTS AND CONTINGENT ASSETS

At 31.3.2015 At 31.3.2014

Restated

Prior year awards £'000 £'000

Production awardsDevelopment awards 22 182Targetted development awards 40 -Distribution awards 189 -

- 150In year awards

Production awardsDistribution awards 5,351 545Development awards 113 1,625Targeted Development Programme 439 497Vision awards 195 188

50 1006,399 3,287

20. CAPITAL COMMITMENTS

21. NOTES TO THE STATEMENT OF CASH FLOWS

Reconciliation of operating surplus to net cash flow from operating activities: 2014-15 2013-14

Restated

£'000 £'000

21,481 (22,049)5,566 (851)

(5,290) (2,609)17 367

(16,707) 60,175(3,391) (37,322)

182 196

Operating surplus/(deficit)Decrease/(increase) in film rightsIncrease in trade receivablesIncrease/(decrease) in trade payables(Decrease)/increase in award payables(Decrease)/increase in provisionsNon-cash pension movementsInterest receivedCash receipts from National Lottery Distribution Fund (7) -

(47,647) (42,125)Net cash from operating activities

(45,796) (44,218)

Cash flow from investing activities2014-15 2013-14

Restated

£'000 £'000

Interest receivedCash receipts from National Lottery Distribution Fund 7 -

47,647 42,125

Net cashflow from operating activities 47,654 42,125

As at 31 March 2015, the BFI had total minimum payments under a non-cancellable operating leases relating to the BFI offices in London, as set out below.

At 31 March 2015 the BFI Lottery activites had no contingent assets (2014: nil).

At the date of the statement of financial position there were financial commitments representing film rights investments made by the BFI where the investment decisions had been taken by the BFI andnotified to the applicants but either the contracts had not been signed and/or the conditions precedent not met. Therefore work had not commenced on the assets in which the BFI is investing, soneither the asset nor the matching liability are represented in the statement of financial position at that date.

Financial commitments - non-film rights awards notified but not yet recognised in the financial statements

The increase in financial commitments is primarily caused by three production awards totalling £4.2m, where the decision to make the award happened in the last two months of the year and wasnotified to the applicants, but either contracts had not been signed and/or conditions precedent not me by the date of the statement of financial position.

As at 31 March 2015, the BFI had no capital commitments outstanding, therefore no costs are attributable to Lottery at the date of the statement of financial position (2014: £0.1m).

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21. NOTES TO THE STATEMENT OF CASH FLOWS (CONTINUED)

2014-15 2013-14

Restated

£'000 £'000

Opening cash balances at 1 AprilMovement in year 2,538 4,631

1,858 (2,093)

Closing cash balances at 31 March 4,396 2,538

22. EVENTS AFTER THE REPORTING PERIOD

These accounts were authorised for issue on the date they were certified by the Comptroller and Auditor General

23. LOSSES AND SPECIAL PAYMENTS

24. SEGMENTAL REPORTING

25. ANALYSIS OF TOTAL EXPENDITURE BETWEEN ADMINISTRATIVE AND PROGRAMME SPEND

26. RELATED PARTIES

New awards

Relationship to made Balance

Recipient of funding

Role with recipient of year ended as at

Name BFI funding 31.3.2015 31.3.2015

£ £

Blueprint Pictures (Posh) LtdBlueprint Pictures Ltd

Pete Czernin Governor Director 6,000 -

British Federation of Film SocietiesPete Czernin Governor Director 18,401 -

Creative SkillsetJim Dempster Employee Trustee 318,000 212,000

Film Agency WalesTim Richards Governor Director and trustee 300,000 300,000Heather Stewart Employee Board member 607,500 480,000

Using the power granted by the Section 27 of the National Lotteries Act etc 1993, the Secretary of State gave permission in 2012-13 for an award of £15,000,000 to the BFI in relation to Unlocking FilmHeritage, the BFI's archive strategy as outlined in the Film Forever future plan, for both the national and regional moving image archives. The award was made in March 2013, it was recorded as acommitment during 2012-13 and at the 31 March 2015 the sum of £9.8m remained payable.

There were no events after the reporting period either adjusting or non-adjusting which are not disclosed elsewhere in the notes to the financial statements.

Screen East, the regional screen agency under the RIFE programme, went into liquidation in September 2010. The agency had received grants and Lottery awards from the UKFC. A protective claimof £1,046,686 was lodged with the liquidator. This claim was transferred to the BFI on 1 April 2011 and remains unadjusted. In the year ended 31 March 2015 £0.2 m (2014: £0.2m) was received fromthe liquidator in partial settlement of this. However, until the conclusion of the liquidation process, it is unclear what further funds may be recoverable from the liquidator, and recovery of funds has notbeen anticipated in these financial statements.

The BFI is required under the Lotteries Act to produce statutory accounts which cover its operations as a Lottery distributor to 31 March 2015. These are reported to the Board of Governors and theChief Executive Officer as a stand-alone entity. Therefore in the context of IFRS8 no additional disclosure of segmental reporting is deemed appropriate.

Under the definitions of the Financial Reporting Manual 2014-15 all activities in these accounts are programme spend.


Following the change in the Lottery Accounts Direction for 2014-15 issued by the Secretary of State, we are required to present the statement of cash flows using the direct method. Under LotteryAccounts Directions for prior years, we had previously presented the statement of cash flows using the layout for the indirect method.

The 2013-14 cash flow has also been restated in line with the retrospective restatements detailed in note 2 above in respect of two lines in the reconciliation of the operating surplus to the net cash flowfrom activities. These specific lines are: the operating surplus reduces (or the operating deficit increases) because of the increase in the multi-year and project funding recognised in the SOCNE; andthe associated increase in the non-current liabilities for non-film rights because of the increase in the provision or because of the increase in award commitments payable.

Charles Cecil is a director of Screen Yorkshire. Screen Yorkshire independently co-funded a number of projects across the year with the BFI.

The BFI maintains a publicly available register of Governors’ interests. Given their broad experience across the film sector, it is inevitable that Governors have connections with or interests in projectsand organisations that may from time to time have come to the BFI for funding. All Governors are therefore required to declare any direct interest in and commercial relationships with awardapplications made to the BFI and that they had no role in the award-making process. Similarly, BFI employees were excluded from the decision-making around any relevant application involving anyorganisation or company in which they have a declared interest.

During the year the BFI entered into transactions, in the ordinary course of business, with related parties. National Lottery awards are included in film rights at the date of the statement of financialposition or written off to expenditure within the year.

All awards outstanding are payable upon the meeting of conditions precedent within individual contracts.

The following related party transactions occurred during the period:

The BFI is a non-departmental public body sponsored by the Department for Culture, Media and Sport (DCMS). DCMS is regarded as a related party and during the year the BFI, as a Lotterydistributor, had material transactions with DCMS.

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ma

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500

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s Lt

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Aw

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50,0

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Wild

gaze

Film

s Lt

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n A

war

d50

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(25,

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00

Pat

he P

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411

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ture

Com

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(90,

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30,0

3560

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0

Abb

ott V

isio

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97)

3,39

70

AL

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s Lt

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(27,

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27,2

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AL

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here

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191

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as Q

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35,0

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Pic

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egin

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Film

Pro

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Dan

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Film

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Four

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Mod

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1,00

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Pab

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Brix

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7,67

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Film

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Two

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37,5

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5,75

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5,00

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Cor

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13,6

600

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s Lt

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(2,5

00)

2,50

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Run

away

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0 M

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1,13

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500

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126


Schedule 2: New Soft Commitments

Year Ended 31 March 2015

New Soft

Producer Project Commitments

£

(MG Pictures Ltd) Motion Group Pictures Departure 35,00010ft Films ltd A Syrian Love Story 35,000Adventure Pictures Ltd Molly [FKA Seed] 19,250Agile Films Beast 18,000Apocalypso Pictures Ltd Journey To Lubeck 57,000Archer Street Ltd Frostbite aka Killer High 24,350Bard Entertainments Ltd Iona 35,000Bend It Films Blake and Jungli 34,000Bigscope Films Limited HERETIC 37,000BLUE HORIZON PRODUCTIONS (2010) LTD THE ITALIAN CHAPEL 20,000Blueprint Pictures The Outcast 1,000Blueprint Pictures Ltd THREE MILES NORTH OF MOLKOM 5,401Blueprint Pictures Ltd THREE MILES NORTH OF MOLKOM 12,000Breaking Productions Ltd. Who's Gonna Love Me Now? 10,000Bridge + Tunnel Productions The Good Iranian 17,750BRITDOC Films Ltd Untitled MIA Project 0Calamity Films BABIES 34,500Cannon and Morley Productions Ltd Night Train 19,250Century Films Ltd Mani and Naseem 13,930CMP Film Ltd. CHINESE WHISPERS 43,000Cuba Pictures Ltd THE ONES BELOW 35,000Dan Films Limited Sweetheart [FKA Helen] 18,000Dan Films Limited Hair of the Dog 22,250Daybreak Pictures Ltd The Muslim Patrol 19,250Ealing Studios Enterprises Ltd Vanished (previously titled 'The Account') 21,000Ecosse Films Ltd The Boy Who Would Be Shakespeare 25,000Edge City Films The Creator 24,500Element Pictures & Cineman Films SISTERS 14,750ELEVENTH HOUR FILMS ‘Silvertown’ aka ‘Codenames’ 30,000Emu Films Sapphire 22,750Emu Films Ltd THE SECRETS OF THE UNIVERSE 44,000Endor Productions Ltd The Strays 14,250Escape Films Ltd Bummer 15,000Ethel & Ernest Productions Ltd Ethel & Ernest 35,000Everyone's Going to Die Limited Firebird 10,000Everything is Illustrated Tender Hearts 10,500Fable Pictures Ltd Country Music 5,500Feet Films Ltd & Free Range Films Ltd Up A Tree in the Park at Night with a Hedgehog 19,750Fly Film Company Ltd Like A Virgin 8,750FMO Films Ltd (SPV of Potboiler Productions) Trespass Against Us 35,000Forward Films Ltd The Book of Stolen Time 13,500forward slash films ltd Irene's Ghost 5,000forward slash films ltd Irene's Ghost 10,000forward slash films ltd Irene's Ghost 10,000Ga Films Ltd DOWN BY LAW 30,000Golden Arrow Pictures Ltd She Who Brings Gifts 22,000Golden Arrow Pictures Ltd She Who Brings Gifts 16,000GreenAcre films Ltd Been So Long 18,000GreenAcre films Ltd Relax 1,500Harbour Pictures Productions Ltd Swallows & Amazons 30,000Harbour Pictures Productions Ltd Swallows & Amazons 35,000Hellflower Film THE LOVERS AND THE DESPOT 35,000Impact Film & Television Ltd Coram Boy 7,500JLB PRODUCTIONS LTD THE NOISIEST HOUR 23,000JLB PRODUCTIONS LTD The noisiest hour 11,000Julian Corkle Limited Julian Corkle is a Filthy Liar 4,720Julian Corkle Limited Julian Corkle is a Filthy Liar 12,750Kennedy Mellor Ltd The Lonely Londoners 2,500Kindle Entertainment Four Children and It 5,000Leopardrama Limited Danny La Rue 14,500Lesata Productions JOY 16,000Melwood Pictures GECKO 16,000Met Film Ltd How To Change The World 35,000Mint Pictures Ltd ZIMBABWE ROCK 25,000Modern Films Ltd The Horned Man 18,500NDF Productions LTD City Of Tiny Lights 16,250NDF Productions LTD City of Tiny Lights 35,000Newscope Films LTD SECRET (previously known as DEFENCE OF THE REALM) 12,500Newscope Films LTD A Bollywoof Tale 17,500Newscope Films LTD A BOLLYWOOF TALE 36,400Newscope Films LTD Darkness Visible 3,750Nexus Productions RADIO JONES AND THE ROBOT DAD 50,000Number 9 Films Limited The Future 0Origin Pictures Ltd SILENCERS 37,000Pari Passu Films Limited FEST 4,000Pari Passu Films Limited Hunting Lila 25,500Passion Pictures (Films) Ltd Paul Wright Untitled 2nd Feature 35,200Passion Pictures (Films) Ltd MONSOON 44,500Piccadilly Pictures (Services) Ltd Night and Day 30,000Poisson Rouge Pictures Seekers 33,931Recorded Picture Company Limited High Rise 35,000Reprisal Films War on Everyone 35,000Reprisal Films War on Everyone 24,000Rook Films Ltd Freefire 30,000Rook Films Ltd Untitled Peter Strickland Film 30,000

127


New Soft


£

Runaway Fridge TV Ltd The Boy Who Loves Lights 9,500Salon Workshop Ivan and the Dogs 26,580Salon Workshop Intercourse: the life and work of Andrea Dworkin 13,000Sarah Radclyffe Productions Ltd The Great Stink 21,800SEROTONIN FILMS LTD Modern Life is Rubbish 31,750Shona Films Limited Tusk 9,250Shona Films Limited Wake Up Dead 29,500Sigma Films Ltd Lion Rampant 40,450Singer Films Cold Hands 17,500Singer Films Cold Hands 2,500Sixteen Films Waterfall 22,500SIXTEEN FILMS LTD CATCH THE MOON 22,000Slingshot Productions Ltd LONDONSTANI 1,000Spirit Base Ltd HEADING OUT 39,750Stigma Films Ltd Bride or Groom [FKA Wedding Body Swap] 27,000Stray Bear Productions Ltd Bad Drawings 12,000Studio AKA Ltd The Yeti Project 54,619Studio AKA Ltd The Yeti Project 30,000Studio of the North Ltd Bit By Bit 29,306SUMS* Film and Media Ltd. PHONE BOOK 27,750Sweet As A Ltd. Out of Step 8,250

The Artangel TrustTHE EARTH TREMBLED AND THE SKY WAS AFRAID AND THE TWO EYES WERE NOT BROTHERS 35,000

The Devil Outside Ltd The Devil Outside 37,500The Ideas Room Ltd The Reason I Jump 18,000The Knitwits Ltd The Knitwits 28,500Touchpaper Television Ltd The Summer Book 4,000TS Films Ltd The Humans 24,750Unanimous Entertainment The Turning Leaves 23,500Unanimous Entertainment Girl With A Clock For A Heart 6,170Unanimous Entertainment GIRL WITH A CLOCK FOR A HEART 10,500Universal Spirits Ltd The Incident 35,000Warp Films Horkmor 21,500Wilder Films Limited Death in the Jungle 22,000Wilder Films Limited Death in the Jungle 2,500Wildgaze Films Four Stars, Funny & Moving (aka Madame Depardieu) 4,000World's End Pictures Limited RISE 7,500YIPP FILMS Poppies to Pomegranates 25,000Young Films Ltd Lockerbie 25,000Young Films Ltd Lockerbie 16,670Zeitgeist Films Ltd Tell It To The Bees 27,000

American Honey 35,000

Development Fund (incl Pre-Prod) 2,739,777

10ft Films ltd A Syrian Love Story 100,000Aardman Animations Limited Early Man United 2,000,000Bard Entertainments Ltd Iona 500,000Blueprint Pictures (Posh) Limited The Riot Club 6,000Bob and Terry Limited War on Everyone 160,000Breaking Productions Ltd. Who's Gonna Love Me Now? 200,000Bypass Ltd Bypass 28,550Calamity Films PRIDE 50,000City Of Tiny Lights Ltd City Of Tiny Lights 834,485Crossover Labs Ltd Love Is All 55,000Darlow Smithson Productions Ltd / Dream Alliance Productions Ltd Dark Horse 6,400Departure Film Limited Departure 350,000EdgelandRoadMovie Light Years 31,000Ethel & Ernest Productions Ltd Ethel & Ernest 1,200,000Ffilm Cymru Wales Cinematic - additional 7,500Fly Film Company Ltd Hockney: A Life in Pictures (working title) 140,000GRAND UNION PRODUCTIONS/CUBA PICTURES The Ones Below 750,000Hellflower Film The Lovers and the Despot 250,000Honeytrap Honeytrap Ltd. 32,000Hot Property Films Limited The Museum of Innocence 210,000I Am Belfast Ltd I Am Belfast 90,000I Am Belfast Ltd I Am Belfast 12,000iFeatures Ltd NORFOLK 17,431iFeatures Ltd Spaceship 186,667iFeatures Ltd Norfolk 4,500Malady Films Ltd The Falling 40,000Met Film Production Ltd How To Change The World 300,000Pulse Films SPV 1 Limited American Honey 1,000,000Recorded Picture Company Limited HIGH RISE 1,300,000Recorded Picture Company Limited High Rise 35,000Remainder Ltd Remainder 17,500Reprisal Films War On Everyone 1,000,000Ruby Films Limited Suffragette (a/k/a The Fury) 28,750Ruby Films Limited Suffragette (a/k/a The Fury) 15,333SUNSET SONG Ltd Sunset Song 12,600Testament Films Limited Testament of Youth 50,000

The Artangel TrustTHE EARTH TREMBLED AND THE SKY WAS AFRAID AND THE TWO EYES WERE NOT BROTHERS 100,000

The Fyzz Facility Film One Ltd The Survivalist 230,000The Fyzz Facility Film One Ltd The Survivalist 19,000The Fyzz Facility Film Three Ltd A Patch of Fog 280,000The Fyzz Facility Film Three Ltd A Patch of Fog 29,000

128


New Soft


£

Third Films Ltd Light Years 450,000Tigerlily Films Ltd REMAINDER 35,000Trespass Against Us Ltd Trespass Against Us 700,000UME 7 FILMS THE GOOB 24,057Universal Spirits Ltd The Incident 580,000Wild Bobcat Ltd The Incident - sustainability 6,000Wildgaze Films A Nazi Legacy: What Our Fathers Did 80,000

Production Fund 13,553,773

Altitude Film Distribution LOVE IS STRANGE 106,000Curzon Film World Ltd Two Days One Night 100,000Curzon Film World Ltd Lilting 30,000Curzon Film World Ltd Citizenfour 50,000Curzon Film World Ltd Ida 40,000Curzon Film World Ltd Still Alice 150,000Curzon Film World Ltd Wild Tales 100,000Dogwoof Ltd DIOR AND I 60,000Koch Media Limited X+Y 300,000Koch Media Ltd All This Mayhem 40,000Metrodome Distribution Ltd The Falling 0Peccadillo Pictures Ltd Appropriate Behaviour 20,000Picturehouse Ent Ltd 20,000 Days on Earth 80,000Picturehouse Entertainment Limited THE KEEPER OF LOST CAUSES 150,000Picturehouse Entertainment Limited Dark Horse 0Praslin Pictures Limited Will & Testament 55,000Soda Pictures Ltd FACE OF AN ANGEL 7,850STUDIOCANAL LTD THE WIND RISES 40,000

STUDIOCANAL LTDTHE 100 YEAR OLD MAN WHO CLIMBED OUT THE WINDOW AND DISAPPEARED 150,000

STUDIOCANAL LTD '71 300,000The Grandmaster Metrodome Distribution Ltd 90,500Third Films Limited Bypass 12,949Trinity Filmed Entertainment BELIEVE 80,925Verve Pictures Ltd Gone Too Far 53,963

Distribution Fund 2,017,187

Altitude Film Sales Ltd Catch Me Daddy 15,000Altitude Film Sales Ltd The Hallow 10,160Altitude Film Sales Ltd Palio 4,264BANKSIDE FILMS X+Y 7,976British Council Short Filmmaker Travel Grant Scheme 14 - 15 20,000Dogwoof Ltd HOW TO CHANGE THE WORLD 12,086Drafthouse Films 20,000 Days on Earth 25,000Film Export UK UK Industry Presence at Film Markets and Festivals 2015-17 487,500Film London Limited Strand 3, Production Finance Market (PFM) 15,000Film London Ltd Film London 2014-17: Strand 2, London Screenings 270,000Film London Ltd Film London 2014: strand 1, BFC 600,000Fortissimo Films THEEB 5,977GoDigital, Inc. GOD HELP THE GIRL 25,000HanWay Films Ltd The Riot Club 4,348Honeytrap Ltd. Honeytrap 3,925Independent Film Company Hyena 6,625LE PACTE Queen and Country 14,042Le Petit Bureau The Goob 4,425Le Petit Bureau The Goob 2,625Mark Stewart Productions Ltd The Last Man on the Moon 8,463Moviehouse Entertainment Ltd the Ecstasy Of Wilko Johnson 9,200Oscilloscope Pictures, Inc PULP a film about life, death and supermarkets 25,000Power to the Pixel Ltd Power To The Pixel 2014 30,000Protagonist Pictures SECOND COMING 663Protagonist Pictures DARK HORSE 5,967Samuel Goldwyn Films X+Y 25,000Sarajevo Film Festival - Obala Art Centar Sarajevo Film Festival 2014 15,000Screen Media Films The Face of An Angel 25,000Spotlight Pictures, LLC The Beat Beneath My Feet 2,875Strand Releasing Lilting 19,000Submarine Entertainment Drug Lord: Legend of Shorty 13,375The Film Sales Company Dreamcatcher 9,381The Film Sales Company A Nazi Legacy: What Our Fathers Did 4,638The Film Sales Company Orion: The Man Who Would Be King 2,515The Match Factory Snow in paradise 7,865The Match Factory BYPASS 6,450The Match Factory GmbH 45 Years 8,700Tribeca Enterprises LLC HYENA 22,194Various UK delegation to Shanghai and Beijing 95,000Ville de Dinard - Festival du Film Britannique Dinard British Film Festival 2014 20,000VISIT FILMS Just Jim 5,787WestEnd Films LTD The Face of an Angel 10,909Wide The Narrow Frame of Midnight 7,915Wild Bunch S.A Jimmy's Hall 15,000Wild Bunch S.A MISS JULIE 4,715

0International Fund incl Film Export Fund 1,934,565

129


New Soft


£

104 Films Ltd Disability Cinema Development Programme Year 2 50,000Aardman Animations Limited Aardman Animation Development Initiative - Year 2 194,852Film London Limited London Calling and London Calling Plus 2014-15 152,000Film London Ltd Microwave 2014-15 238,406Various NET.WORK Online Platform 200,000

Targetted development Fund 835,258

42 M&P Ltd Vision Awards - Year 2 100,000Cowboy Films Ltd Vision Awards - Year 2 100,000Fly Film Company Ltd Vision Awards - Year 2 50,000Forward Films Ltd Vision Awards - Year 2 50,000Inflammable Films Ltd Vision Awards - Year 2 50,000Lupus Films Vision Awards - Year 2 100,000Origin Pictures Ltd Vision Awards - Year 2 50,000Passion Pictures (Films) Ltd Vision Awards - Year 2 100,000Rainy Day Films Vision Awards - Year 2 50,000Roast Beef Productions Vision Awards - Year 2 50,000Stray Bear Productions Ltd Vision Awards - Year 2 50,000Third Films Limited Vision Awards - Year 2 50,000Wildgaze Films Ltd Vision Awards - Year 2 100,000

Vision awards 900,000

Abandon Normal Devices Ltd Watch the Skies! 80,000Africa in Motion (AiM) Film Festival Ltd South Africa at 20: The Freedom Tour 55,000Cambridge Film Trust Sci-Fi Station X: Sci Fi Weekend 60,000Centre for the Moving Image Adapting Miss Highsmith 6,942Centre for the Moving Image Martin Scorsese's Masterpieces of Polish Cinema 66,836Chapter (Cardiff) Limited Sci-Fi- Days of Fear and Wonder 44,250Cinema Nation C.I.C Scalarama [2015] 43,000Film London Limited Greater London Sci Fi activity 53,110Film London Limited Singa-longa London 4,250Greater Manchester Arts Centre Limited Film Hub NWC Sci-Fi Proposal 51,100Independent Cinema Office Astley Baker retrospective (working title) 45,000Institute of Contemporary Arts Limited 'Onwards and Outwards' 48,800Lions Gate UK Ltd BFI Presents: Testament of Youth 16,000Lux This is Now: Film and Video After Punk 25,500Nottingham Media Centre Limited 'Sci-Fi: Days of Fear and Wonder' Blockbuster Season 25,500Nottingham Media Centre Limited Britain on Film 17,730Queen's University of Belfast Sci-Fi NI (part of BFI Sci-Fi: Days of Fear and Wonder) 43,500Regional Screen Scotland Film Hub Scotland - Phase 2 Sci-fi 25,000The Sheffield Media and Exhibition Centre Ltd Sci-Fi - Film Hub North - Phase 1 18,000The Sheffield Media and Exhibition Centre Ltd Sci-Fi - Blockbuster - Film Hub North - Phase 2 50,000The Watershed Arts Trust Limited Sci-Fi -Film Hub South West & West Mids - Phase 1 60,000The Watershed Arts Trust Limited Sci-Fi - Film Hub South West & West Mids - Phase 2 52,400The Watershed Arts Trust Limited Impact of Conflict 77,000The Watershed Arts Trust Limited Love Strand 3 Bid Development 20,000University of Brighton South East Sci-Fi 50,415UP PROJECTS The Floating Cinema Extra Ordinary Tour 80,000

Programme Development fund 1,119,333

British Federation of Film Societies BFI Film Audience Network Strategic Partners 318,000Independent Cinema Office BFI Film Audience Network Strategic Partners 810,000

Audience Network Fund 1,128,000

Aberystwyth University Abertoir International Horror Festival 5,000Aesthetica Magazine Ltd Aesthetica Short Film Festival 2014 12,000Afrika Eye CIC Afrika Eye Film Festival 2014 5,000Bath Film Festival Bath Film Festival 2014 8,000Belfast Film Festival Ltd 15th Belfast Film Festival 20,000Border Crossings Company Limited Origins: Festival of First Nation 2015 6,500Borderlines Film Festival Community Interest Company Borderlines Film Festival 2015 22,000Borderlines Film Festival Community Interest Company Festival of British Cinema 2014 5,000Bridport Arts Centre From Page to Screen 2015 5,000Cambridge Film Trust 2014 Cambridge Film Festival 25,000Chichester Cinema at New Park The 23rd Chichester international Film Festival 8,000Derby QUAD Limited Derby Film Festival 2015 7,500East End Film Festival CIC East End Film Festival 15,000Flatpack Festival Ltd Flatpack Film Festival 2015 25,000Glasgow Film Theatre Glasgow Film Festival 25,000Leeds City Council Leeds International Film Festival (LIFF), 2014 35,000Leeds City Council 16th Leeds Young Film Festival 25,000LOCO, The London Comedy Film Festival Ltd LOCO London Comedy Film Festival 2014 10,000London Indian Film Festival Limited London Indian Film Festival 16,000Nottingham Media Centre Limited Mayhem X - the tenth edition of the Mayhem Film Festival 5,000Purbeck Film Charitable Trust Purbeck Film Festival 2014 5,000SCMG Enterprises Ltd Bradford Animation Festival (BAF) 2014 11,000SCMG Enterprises Ltd Widescreen Weekend (2015 ) 8,000Slapstick festival Ltd. Slapstick 2015 12,000The Edinburgh International Film Festival Ltd Edinburgh International Film Festival 150,000The Royal African Society Film Africa 2014 5,000The Sensoria Festival Sensoria 2014 5,000The White Bus Limited Southend-on-Sea Film Festival 10,000Tongues on Fire Limited London Asian Film Festival 2015 8,000UK Jewish Film Ltd UK Jewish Film Festival 2014 10,000

130


New Soft


£

University of Brighton CINECITY The Brighton Film Festival 2014 15,000WOW WALES ONE WORLD FILM FESTIVAL WOW Wales One World Film Festival 2015 9,000Zebra Access Deaffest 2015 7,000Zoom Cymru Limited The Zoom International Youth Film Festival 5,000

Film Festivals Fund 545,000

0ACE - Friends of St Ives Corn Exchange Screen St Ives 2,937Aik Saath Aik Saath Community Cinema 5,045Bromsgrove Arts Centre Trust Artrix Arts Centre 2,937Chapter (Cardiff) Ltd Valleys Cinema 17,170Clements Hall Trust South Bank Community Cinema (SBCC) 798Constantine Enterprises Company The Tolmen Centre 2,937Cornwall Arts Centre Trust (Truro) Ltd C Fylm 24,785Cornwall Arts Centre Trust (Truro) Ltd Troon C Fylm Club 5,276Dornoch and District Community Association Dornoch Cinema 4,590East Meon Village Hall East Meon Cinema 2,937Electric Palace Cinema CIC Electric Palace Cinema 2,937Ginger Bread House Presents... Ginger Bread House Presents... 1,603Grassington Hub Grassington Hub Community Cinema 4,793Greater Morpeth Development Trust GMDT Community Cinema 4,793High & Low Bishopside Village Hall Pateley Bridge Memorial Hall 2,937Holbeton Village Hall Holbeton Film Club 1,447Huxley Village Hall Huxley Village Hall 4,089Hythe & Dibden Parish Council Hythe Cinema (Moviola) 2,937Live & Local All Our Yesterdays + Breaking British (working titles) 7,848Llancarfan and District Community Association Llancarfan Community Cinema 1,069Masham Town Hall Community Charity Masham Town Hall 4,590Mid Border Community Arts Presteigne Screen 2,937Milnathort Town Hall Association Milnathort Filmhouse 4,793North East Arts Touring Limited New Deer Public Hall 4,793Oxen Park Cinema Club The Carthouse Community Cinema 2,937Passmore Edwards Institute Hayle Film Club 4,800Re-Dock Community Interest Company St Helens Small Cinema/ Take2 Film Society 5,350Sandford and Upper Avondale Community Council Sandford Cinema (SCEG) 5,037Sawston Village College Sawston Cinema 4,673Selsey Town Council Selsey Cinema Club 4,878Slough Borough Council West Wing - Curve Cinema & Slough Co-op Film Society 2,937Stockbridge Town Hall Stockbridge Film Night 2,937Swale Community Leisure Limited Sheppey Touring Cinema 29,422The Anchor Bar Limited Newcastle Community Cinema 4,793The Black Box Trust Black Box 4,793The Cinema Museum The Cinema Museum 2,937The Horsebridge Arts & Community Centre Film @ The Horsebridge 4,793The Mark Trust Sharrow Reels 3,307The Queen's University Belfast (Queen's Film Theatre) Fermanagh Film Club 4,216Urchfont Village Hall Urchfont Village Hall 712Wokingham Film Society Wokingham Film Society 4,793

Neighbourhood 214,294

Dundee Film School Regional Film Academy 12,915GMAC Film Regional activity fund - Scotland 3,000Screen Education Edinburgh BFI Film Academy Network Course, Highlands Scotland 16,000Screen Education Edinburgh Residential (BFI Scottish Youth Film Academy) 37,500Station House Media Unit SHMU Film Academy 14,969The Company Midlands Ltd Birmingham Film Academy 16,000The Nerve Centre Film Academy at Nerve Centre, Belfast 16,000The Nerve Centre BFI Regional Activity Fund - Northern Ireland 3,000

Screen Education Edinburgh 36,790

Film Academy 156,174

Creative Skillset BFI Intern Scheme 300,000Creative England Creative England 3,850,000

Interns Scheme 4,150,000

How To Change The World Ltd How to Change the World - tax credit advance 140,000

Tax Credit Advances 140,000

Total awards 2014-15 29,433,361

Soft commitments as listed above are net of soft decommitments (fall ins) of £209,926 where awards fell in within the year in which the award wasmade.

131


Schedule 3: Lottery commitments (soft) made by delegate bodies


Award Recipient Project £

Creative England

104 Films Into Darkness 30,00065 Wilding Films Limited Elsewhere 21,000Amanda Boyle Outland 26,000Bend It Films Fraud 30,000Bonafide Films Limited Film Enterprise Business Investment 170,000Born Risky Limited Slow Light 11,000Burn Productions Limited Burn, Burn, Burn 114,975Cinescope Entertainment Packaged 16,500Creative England - Various awardees Ishorts Alumni 200,000Creative England Direct Lottery Award Network London Film Festival 10,920Creative England Direct Lottery Award Network London Film Festival 2015 11,640Creative England Direct Lottery Award TalentX Programme 13,500Creative England Direct Lottery Award Market Trader Online 14,400Creative England Direct Lottery Award Emerging Talent Professional Development 20,000Creative England Direct Lottery Award Cannes 2015 Market 20,000Creative England Direct Lottery Award iSHorts 2 Skills & Training - Mentoring Support 20,000Creative England Direct Lottery Award Talent Centres Bristol Talent Module 20,000Creative England Direct Lottery Award Sheffield Talent Centre Lottery Activity 2014-15 25,000Creative England Direct Lottery Award Brighton Talent Centre Activity 2014-15 25,000Creative England Direct Lottery Award Festivals and International Markets 2014 32,100Creative England Direct Lottery Award Market Trader Cohort Programme 37,100Creative England Direct Lottery Award iShorts2 Production Award 46,000Creative England Direct Lottery Award Funny Girls Production Programme Activity 50,000Creative England Direct Lottery Award Compass 2 - Film Enterprise Programme 85,000Creative England Direct Lottery Award Network Weekender Programme 88,000Creative England Direct Lottery Award Regional New Writing Partnership Direct lottery award 145,000Daniel Jewel London Noir 29,000Dave Mills The First Coming 11,000David Schofield STAIN 26,000Diarmuid Hughes Three Women Wait for Death 11,000Elaine Gracie Sarah Chong is Going to Kill herself 11,000EMU Films Film Enterprise Business Investment 150,000Faye Ward Johnson Vs Johnsons 30,000Fifth Column Films Limited Truck 36,000Film and Music Entertainment How to sell a War 25,000Flatpack Film Festival Talent Modules 25,000Fliss Buckles Bang Up 11,000Glimmer Films ORION: The Mask of Elvis 80,975Helen Gladders Rhona and Donna 11,000Honlodge Films Steven 20,000Hummingbird Films B&B 200,000Ifeatures Limited Ifeatures 3 10,000Ifeatures Limited Ifeatures 2 Production Award 40,000Ifeatures Limited iFeatures3 Production Award 551,489Inflammable Films Ltd The Dying Hours (Working Title) 30,000Isabel Anderton The Tentmaster's Daughter 14,000Jeva Films Limited Enter the Dragons 30,000John Loden Limited The Damage Done 23,500Kenny Emson Bai 19,000Life To Live Films Estuary Girl 30,000Lookout Point One Clear Call 30,000Lunar Lander Films You're Almost There 30,000Manmade Films Film Enterprise Business Planning 10,000MeWe 360 MeWe 360 50,000Mint Pictures Ltd Duffy 23,500Momac Films Ltd Old Boys (working title) 150,000Newscope Films Limited Fastest Way Down 25,000Nitrate Film The Ecstacy of Wilko Johnson 95,000Northern Film & Media Talent Modules (North East):How to Get a First Feature Made 25,000Olsberg SPI Quantifying and Documenting Film and Television Tourism in England 47,500Pico Pictures Limited How to Live Yours 201,300Pinball Films Ltd The Hippies: Punk Rocked mt Cradle 100,000Pulse Films Life after Dad 17,000Quark Films Ltd Pin Cushion 20,750Red Production Company Cardboard Mummy 30,000Redbird Wrong Planet 30,000Rooks Nest Entertainment Matinee Idol 30,000Salon Development Ltd Meet Me in Ten Years 11,500Sarah Brocklehurst Productions Ltd Animals 18,000Sarah Brocklehurst Productions Ltd Underdog 25,500Selena Cunningham Julian 11,000Slam Films Ltd Snodgrass 25,000Steel Mill Pictures Danger Close 29,000

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Stigma Films Ltd Ernestine and Kit 25,000Stigma Films Ltd Lights Out 30,000Tantrum Films Ltd Sweet Shadow 25,000The Imaginarium Studios The Ritual 30,000Third Films Ltd Light Years 10,500Wigwam Films Ltd Offbeat 10,00041 awards < £10,000 203,250

4,076,899

Creative Skillset

104 Films Ltd New & Emerging Disabled Film Talent Workshop Programme 12,814

104 Films LtdLow Budget Cinema Creative & Production Development Programme For High Level Disabled Creative & Producing Talent 29,100

3Dami 3Dami summer studios 49,982Birds Eye View Filmonomics 30,000Blink Productions Blink University 11,670Bournemouth University Fast Forward: Getting up to speed with current VFX practice 17,992Centre for the Moving Image Scottish Film Talent Network 34,000Creative England Interchange (working title) 25,000Creative England Net.Work at LFF 26,873Creative England Interchange Community (working title) 35,000Creative England Lining Up (working title) 40,000Creative England iShorts 42,000Crossover Labs Oculus Rift Crossover Hack 15,600Crossover Labs Crossover Labs Cross Media Producer Training 30,000Dogwoof Ltd Dogwoof Development Plan 12,810Edinburgh International Film Festival EIFF 2014 Industry Events 15,500Edinburgh International Film Festival EIFF Network 30,000Edinburgh Napier University - Screen Academy Scotland Screen Academy Scotland Course Enhancement and Bursaries 2014-15 149,577Escape Studios Ltd VFX HE Online Mentoring 35,000Film Agency For Wales Launchpad 28,000Film Distributors' Association AN INTERMEDIATE COURSE IN DISTRIBUTION 20,200Film London Microwave Green Light team support 2015 12,000Film London Microwave: Microschool 2014 39,200Film London Build Your Audience 2015 40,000Film London London Calling 2014/5 42,000Film London Microwave Training 2015 / 2017 60,315Film Nation trading as Into Film Skills Fusion II 55,000Film4 Film4 Innovation Forum 2014 25,000

filmtiki LimitedInteractive Audiences - how to create new business models through audience engagement 17,500

Four Corners Limited Digital Film MicroLab 24,970High Definition & Digital Cinema Ltd Digital Imaging Technician Training 18,750Hook Pictures Hook Pictures Company and Personnel Development Training 10,000Independent Cinema Office Women's Exhibition Leadership Programme 45,000Independent Cinema Office ICO 2015 Grant Slate 115,000Independent Cinema Office Film Sales, Distribution and Exhibition Traineeship (working title) 130,000International Film Festival Rotterdam Rotterdam Lab 13,448KES International Operations Ltd Archive Sector Enterprise Training (ASSET) 46,000Kulturveranstaltungen des Bundes in Berlin GmbH, International Filmfestival Berlin - Berlinale Talents Berlinale Talents 2015 20,000Lighthouse Arts & Training Lighthouse Online Platforms Residency & Lab (working title) 10,000Lighthouse Arts & Training Guiding Lights 7 45,000London Film School 2015 (-2017)London Film School / Creative Skillset Film Academy Bursary & CEO Funding 242,333Media Business Insight Restoration and Archive 26,000Micro Budget Mentor Limited Micro-Budget Mentor 10,000Mobsventures Ltd Slenky Film Makers 16,200National Film & Television School Inside Pictures 90,000National Film & Television School h 2014-15NFTS Application to Skillset Film Academies Course Enhancement and Outreach 780,403National Film & Television School - Short Courses BAME Leadership Programme 60,000Northern Film & Media RISE (Working Title) 34,000Power to the Pixel Ltd Power to the Pixel: The Cross-Media Forum 2014 20,000Power to the Pixel Ltd The Pixel Lab: The Cross-Media Workshop 2015 20,000Sara Putt Associates Sara Putt Associates Trainee Scheme 20,000Sheffield Doc/Fest Future Producer School 2015 25,650Studiocanal Studiocanal Training Programme 12,091Talking Point Film and Television Ltd Props department training programme 26,055The Production Guild Limited Post Production Co-ordinator 30,000The Production Guild Limited Location Assistant 35,000The Production Guild Limited Runner Basic Training 42,270The Production Guild Limited Production Accountant Training Scheme 55,000The Production Guild Limited Assistant Production Accountant Training Scheme 2015 175,000University of York Introduction to Visual Effects Compositing Using Nuke 16,200Watersprite: The Cambridge International Student Film Festival The Insight Sessions - Watersprite 13,030York St John University Creating Cinematic Voices: from Script to Mixing 12,135Yorkshire Film Archive Film Archives for the Future 31,000

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149 awards less than £10,000 each 280,1613,532,829

Total awards by delegate bodies 2014-15 7,609,728

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STATUTORY BACKGROUND

Statement of compliance with the Government’s Lottery policy and financial directions

Financial directions Under the National Lottery etc Act 1993, the Secretary of State issued financial directions to the British Film Institute (the BFI). These are as follows:

The BFI shall comply with the requirements contained within the Statement of Financial Requirements, which have the status of directions under section 26 of the National Lottery etc. Act 1993, (“the Act”) as amended by the National Lottery Act 1998 (“the 1998 Act”).

The BFI has implemented procedures to ensure the provisions of the Statement of Financial Requirements are followed and the BFI confirms that, to the best of its knowledge, it complied fully with the financial requirements in 2014-15.

The BFI shall devise and abide by a procedure for handling potential conflicts of interest which may arise in the evaluation of applications by BFI or individual members of the BFI. This procedure together with a statement confirming the arrangements that have been applied, should be provided to the Secretary of State for Culture, Media and Sport before the distribution of any funds under section 25 of the Act, and thereafter at the beginning of each financial year.

The BFI has in place procedures for dealing with conflicts of interest and, to the best of its knowledge, it abided by this procedure in 2014-15.

Policy directions Under the National Lottery etc Act 1993, the Secretary of State for Culture, Media and Sport issued policy directions, which the BFI must take into account in distributing National Lottery funds.

A) The need to involve the public and local communities where reasonably practicable, in makingpolicies and setting priorities.

The BFI consulted widely on its five year strategy including its proposed new and existing Lottery funding schemes, through a wide-scale public consultation undertaken in 2012.

In 2014-15 the BFI ran two major consultation events in London and Yorkshire which provided the opportunity to provide an update on the BFI’s progress in relation to its strategic plan targets but also discussing issues facing the UK film sector.

In addition, during the year the Government undertook a Triennial Review of the BFI which included an extensive public consultation. The results of the consultation were extremely positive with an 85% approval rating for the BFI’s leadership and advocacy work.

B) The need to increase access and participation for those sections of society who do notcurrently benefit from opportunities available in the United Kingdom.

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The BFI aims to ensure that equality and diversity are central to all activities thus allowing sections of society to have access to or benefit from funding, taking into account differences in values, attitudes, cultural perspectives, beliefs, ethnic background, able or disabled, skills, knowledge, geography, age and life experiences. Previously, the BFI Board agreed a Diversity Strategy in February 2014 and in summer 2014 the BFI Film Fund launched its 3 ticks initiative to further imbed diversity of applicant organisations to the BFI Film Fund.

The full roll-out of the BFI Diversity Fund which will help promote equal access, participation as well as strengthening cultural diversity, will be undertaken early in 2015-16.

C) The need to inspire children and young people, awakening their interest and involvement inthe activities covered by the good cause.

The BFI is fully committed to education and learning and strongly believes that film has the power to transform the way people see and understand the world and as such has committed a significant investment into the BFI 5-19 education scheme, which is managed by Into Film.

In 2013-14, although very much a start-up year, the 5-19 education fund has established 10,500 film clubs.

During the year, Into Film implemented a detailed programme for film education and learning across the UK which is aimed at people of all ages to include a new education offer aimed at inspiring young people from 5-19 to watch, understand and make films. To date an estimated 1m young people have benefited from the programme.

D) The need to improve community cohesion and/or social inclusion.

The BFI ensures that the benefits of Lottery funding are spread widely, in both geographical and social terms. Creativity and diversity in the film sector is enriched by encouraging the participation of people from a wide range of communities.

E) The need to encourage new talent, innovation, and excellence and help people to developnew skills.

The BFI provides opportunities for filmmaking talent to flourish. The freshness and relevance of the films produced have been recognised by the international film industry awards they have won. As well as direct support for filmmaking, the BFI invests in training talent, notably in partnership with Creative Skillset, the Sector Skills Council for the audiovisual industry, a comprehensive funding programme was delivered during the year for training and skills; and in establishing a new UK Talent Network – Net.work – across the UK with talent centres established in Brighton, Sheffield, Cardiff, Belfast and Glasgow.

F) The need to ensure that money is distributed for projects which promote public value andwhich are not intended primarily for private gain.

It has always been a primary intention of the National Lottery that it should improve the quality of life for people throughout the UK.

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All applicants, including private, voluntary or commercial organisations, have to be able to demonstrate the benefit to the public that would result from their proposed project. The BFI applies a range of criteria in order to ascertain that an appropriate level of public benefit is derived from the project. The criteria include the creative and technical quality of the project and its contribution towards the BFI’s strategic objectives.

G) The need to further the objectives of sustainable development.

The BFI provides leadership and practical support for the wider film industry, including leading the UK-wide sustainability Group. Following the launch of the British Standard (BS 8909), specifically for film, sustainability is an intrinsic element to the new five year plan.

The Greening the Screen event was held, in partnership with BAFTA, which examined the latest thinking on sustainable and low impact production and business practices within film, television and the games industry.

Technological development is supported through encouraging the use of digital production techniques and associated processes.

On location filming of any Lottery-funded films, producers are expected to be sensitive to the needs of the environment and the use of natural resources, returning locations back to their original state in environmental terms, after use.

The BFI works with other Lottery Distributors and the Department for Culture, Media and Sport in developing proposals for sustainable development.

H) The importance of ensuring equality of opportunity and the desirability of reducing economicand social deprivation and of ensuring that all areas of the United Kingdom have access to the money distributed.

All parts of the country have access to BFI Lottery funding through applications for training, development, production, education, distribution, exhibition and unlocking film heritage activity.

I) The desirability of the British Film Institute working jointly with other organisations, includingother distributors.

The BFI is increasing its partnership working with other Lottery distributors, most notably with Arts Council England and the Heritage Lottery Fund.

The BFI delegates funding to Creative England in support of its strategic objectives that can be delivered at a local and/or regional level. Creative Skillset and the national screen agencies of Wales – Film Agency for Wales – Northern Ireland – Northern Ireland Screen – and Scotland – Creative Scotland were other Lottery delegate partners delivering key aspects of our strategy.

J) The need to ensure that all those receiving Lottery money acknowledge it using the commonLottery branding.

The BFI ensures that the Lottery is credited on all projects in receipt of Lottery funding through the use of the credits on films and branding on other materials.

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K) The need to require an element of partnership funding, or contributions in kind from other sources, to the extent that this is reasonable to achieve for different kinds of applicants in particular areas. The BFI requires all applications to include an element of partnership funding, to demonstrate commitment to the project. The level of partnership funding required depends on each fund and the activity being supported. L) The need (a) for money distributed to be distributed to projects only where they are for a specific, time-limited, purpose, (b) to ensure that the BFI has the necessary information and expert advice to make decisions on each application and (c) for applicants to demonstrate the financial viability of projects. Funding is either provided on a specifically time limited basis or will only benefit individuals while they remain within the definition of a particular programme. The BFI undertakes an appraisal of each application for funding prior to final decision. The BFI reserves the right to request that applicants provide any additional information that may be required in order to properly assess such application, in addition to the requirements set out in the application guidelines. It also seeks, where necessary, the confidential, independent and objective views of expert advisers. As a publicly accountable body, the BFI has a duty to ensure that National Lottery funds are properly spent and accounted for, that risk is minimised, and that fraud is avoided. M) Where setting up costs are sought, the need for a clear business plan showing how any running and maintenance costs will be met for a reasonable period. Financial viability is a key factor in the assessment of BFI Lottery applications and is examined using appropriate criteria for all funded applications in the context of assessing the potential risk of each Lottery award. Each potential recipient of Lottery funding has to demonstrate that its finances are secure and, in respect of larger projects, sufficient to ensure project exploitation after the funding period. N) The need to ensure that film is central to the lives of UK citizens, and to improve the quality of British film and raise its profile in the marketplace, by:

i. Expanding education and learning opportunities and boosting audience choice across the UK;

ii. Supporting the future success of British film; iii. Unlocking film heritage for everyone in the UK to enjoy.

The allocation of National Lottery funds by the BFI is influenced by the need to strengthen the industry’s structure and workforce; to improve the quality and commercial viability of British films; and to support the distribution of specialised film in the analogue and digital environments, helping to ensure UK audiences have access to film in all its variety.

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O) Where awards are made in relation to feature film production or distribution projects the BFI should take into account:

A clearly identified target audience for their projects

The need for recipients of awards for film production to pay the set contribution towards the Skills Investment Fund (SIF)

The need for recipients of awards to comply with recognised industry best practice and agreements relating to pay and the employment of trainees

The need to conserve and expand the UK’s film heritage by requiring the deposit of Lottery funded productions and other selected material in the collections of the British Film Institute or regional archives

The need for feature film development and production projects to be capable of qualifying as “British films” in accordance with the procedures set out by the DCMS

The need to improve public access to film through the use of audio-description and/or subtitling for the hard of hearing.

All relevant projects in receipt of this type of funding are required, contractually, to comply with these conditions.

Awards of £5m and above - Progress

Lottery administrative costs for the last five years

Financial year ending 31 March

Actual Operating Costs £m

Inflated operating costs (CPI - 2011 = base year)

2011 £ 5.27 £ 5.27

2012 £ 4.19 £ 5.50

2013 £ 4.69 £ 5.66

2014 £ 5.05 £ 5.80

2015 £ 4.96 £ 5.89

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BRITISH FILM INSTITUTE GROUP AND LOTTERY ANNUAL ...

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