2022-12-31-accounts - The Twickenham Museum

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

The Twickenham Museum

Annual Accounts Year Ended 31 December 2022

Financial Statements

	Page
Trustees’ Annual Report	3
Statement of Financial Activities	8
Balance Sheet	9
Notes to the Financial Statements	10
Independent Examiner’s Report to the Members	12

Reference and administrative details

Registered Charity Name The Twickenham Museum Charity Registration Number 1028984 Principal Office and registered office 25, The Embankment, Twickenham TW1 3DU Trustees David Cornwell- Chairman Anthony Nash – Treasurer (appointed June 2022) John Sheaf Michael Cherry Sandra Dempsey -Secretary Suzannah Herbert Independent Examiner Maurice Parry-Wingfield FCA 11 Montpelier Row Twickenham TW1 2NQ Bankers CAF Bank Ltd 25 Kings Hill West Malling Kent ME19 4JQ

Trustees Report

The Trustees present their report and the financial statements of the Twickenham Museum (the ‘Charity’) for the year ended 31[st] December 2022.

Chairman’s Statement

Following two years when the museum was heavily impacted by Covid lockdowns, 2022 saw the world return to something that felt a bit more like normal. As a purely volunteer led charity, the museum has hitherto operated on a modest level well within its financial resources. During 2022 we were most fortunate to receive two legacies totalling £440,000 from Freda Hammerton and Trevor Sutton which we hope will allow the museum to expand its horizons further. Firstly, the additional investments have allowed us to engage an experienced museum manager, Ricky Pound, to help with professionalising our day to day operations and widening our volunteer base and opening hours. I am pleased to say that the museum is now open for an additional four hours on a Friday bringing total opening hours up to 10 hours per week. If finding further volunteers permits, we may look to increase hours further during 2023. Ricky’s experience at local historic houses should prove invaluable in marketing the museum and improving its online presence through social media. We also have undertaken a review of internal systems, policies, and protocols to ensure that the charity complies with governance best practice and have recently upgraded our CCTV and alarm systems.

During the year the museum recorded 1,915 visitors and in 2023, with the extra hours of opening, we hope to exceed that number by a good margin.

Secondly, the additional funds also allow the trustees to invest further in the fabric of the museum which is an historically important Grade II listed building in its own right. During the year the trustees commissioned a building survey to report on the key structural matters that will need addressing in the coming years. Some of the bequest funds will be utilised firstly to meet any repairs that are required and secondly to improve the internal layout with new exhibition cases that will allow improved display of exhibits, which in turn should enhance our visitor experience. There is therefore much to do during the forthcoming year and we are fortunate in such difficult economic times to be in a financially robust position.

During the year the role of Treasurer was transferred from John Sheaf (who remains a trustee) to a new recruit to the trustee board, Anthony Nash. Anthony has a similar background to John having worked professionally in the banking industry before retiring in 2020. He is also a trustee and Chairman of another locally based charity. I would like to take this opportunity to thank John for his sterling work as Treasurer and indeed all the trustees, management committee members and volunteers for their continued dedication to the museum.

David Cornwell Chairman of the trustees

Structure, Governance and Management

Governing Document

The Charity is governed by a Trust Deed dated 3 November 1993. The objectives of the Trust are to advance the education of the people of Twickenham (to include the people of Teddington, Whitton, Hampton Wick, Hampton Hill and Hampton) by provision of a museum. The museum is operated from one site at 25, The Embankment, Twickenham which is owned by the Trust.

Recruitment and appointment of trustees and management committee

Trustees have been recruited on an informal basis often through other local historical organisations and charities with similar interests. The management committee consists of some trustees and other key volunteers to look after day to day running of the museum.

Trustee Induction and Training

The Trustee body has remained stable for a number of years and consists of retired professionals from the public and private sectors with many years’ experience of acting as trustees. In 2022 a new Treasurer was appointed who has 37 years’ experience in the financial sector and is also Chairman of a local care charity.

Risk Assessment

The Trustees regularly assess the risks to which the Charity is exposed, in particular those relating to the operations and finance. The Trustees are satisfied that systems, where practicable, are in place to mitigate exposure to the major risks.

Major risks of running the charity are:

Absence of sufficient and appropriate insurance

Appropriate insurance is in place to cover all aspects of the charity's operations including cover for public liability, employers' liability, building and contents. Levels of cover are reviewed annually by the trustees.

Damage to building through fire, flood, disrepair, etc

The museum is a Grade II listed building requiring any alterations, significant rebuilding, or repairs to be carried out in line with Listed Buildings Approvals. In 2022 a specialist buildings survey was conducted to review the fabric of the building with a view to making repairs and renewals in line with recommendations. The trustees intend to commence a programme of repairs during 2023 and thereafter having sought quotations from builders with appropriate experience working on historic houses and listed buildings.

New CCTV and alarm systems were installed in early 2023 to improve monitoring and reporting of perceived hazards.

Loss or damage to museum exhibits

The museum owns a number of valuable items for exhibition which are covered by speciality insurance. In January 2023 an upgraded CCTV system was installed to monitor exhibition spaces and linked to local fire and emergency alarm operators. Key computer files are backed up and stored remotely to ensure continuity in the case of damage or fire to software and systems.

Fall in value of investments and/or exposure to financial institutions

The trustees have made investments with two specialist charity investment funds. These funds are designed to provide a mixture of dividend income and capital growth over the longer term. The investments are however not immune to general market trends and have suffered some loss in value during the financial year. The trustees have taken the view that these funds should return to growth

in the medium term but will keep the mix of investments under regular review.

Cash deposits with CAF Bank and COIF Property Fund are covered by the government’s Deposit Protection Scheme.

Insufficient funding

Following the receipts of two bequests totalling £440,000 in 2022, the Charity is well funded to meet all of its day to day running costs for the foreseeable future. It also has funds to carry out a schedule of repairs to the fabric of the museum to preserve long term utilisation of the site as a museum in accordance with its objectives.

Fall in the number of volunteers

The charity relies on volunteers to staff the museum for visitors and is always seeking new volunteers since age or infirmity can prevent existing volunteers from continuing to provide services to the charity. A recent recruitment drive initiated by the new museum manager has increased the number of volunteers to enable opening one extra day per week.

Organisational Structure

The Charity is overseen by a board of trustees in the supervision of an executive committee responsible for the day to day management of the museum and its strategic direction, except for matters of policy, the approval of key expenditures and decisions in respect of investments. The board meets on at least a quarterly basis and more frequently where deemed necessary. The management committee meets on a monthly basis. Since November 2022, the day to day management of the museum has been contracted out to a professional museum manager who reports to the management committee. Financial control is the responsibility of the Treasurer who reports to the trustee board and who is a member of the management committee. Expenditure items are approved against a Delegation of Authority template approved by the Trustee Board.

Related Parties

A number of the trustees are also either trustees, executive committee members or members of the Borough of Twickenham Local History Society which is a separately managed charity with similar objectives to the museum. Related transactions are confined to the purchase of local history publications for onward sale by the museum. Purchases are made at a discounted rate.

Two members of the board are also trustees of other local related historical charities where there is occasional need to interact. Any conflicts of interest are perceived to be minimal.

Strategic Report

Objectives and Activities

The principal object is to run a museum dedicated to the history of the historic Borough of Twickenham. The museum is volunteer run apart from the recently appointed contract manager. The availability of volunteers restricts the number of hours that the museum can open and during the majority of 2022 the museum opened for a few hours each weekend. With the appointment of the museum manager in late 2022, the museum has extended its opening hours into Friday and will look to increase opening hours further where feasible during 2023.

Achievements and performance

Visitor numbers for the year were 1,915 based mostly on opening six hours per week. It is expected that numbers will increase during 2023 due to longer opening hours and increased awareness through advertising and social media.

Treasurer’s Financial Review

The Charity has no restricted funds.

In recent years the museum has operated at a modest level supported by a network of volunteers and with similarly modest levels of income and expenditure. The Charity has a strong asset base in the form of the freehold museum property and long-term investments held in specialist charity focused funds. During 2022 the charity was privileged to receive two bequests amounting to £440,000 from Freda Hammerton and Trevor Sutton which have considerably enhanced the asset base and given the trustees the opportunity to invest in the fabric of the Grade II listed property, engage a contract manager to assist with the running of operations and expand opening hours.

Hence the income for the year leapt significantly from £10,933 in FY21 to £464,411 in FY22 with a consequential increase in the annual surplus to £382,742 (post change in value of investments- (FY21 £26,263 restated)). This has required the Accounts to be produced on an accruals basis for the first time having previously been produced on a cash receipts and expenditure basis. It is expected that the Charity’s income will fall back to similar levels to FY21 in FY23 as no further bequests are expected to be received. In these accounts, FY21 has been restated on an accruals basis which has required minor changes to the accounts previously submitted to the Charity Commission. The impact has been an £1,057 increase in the annual surplus. FY22 has also been stated on an accruals basis but it is likely that the Charity will revert to cash accounting in FY23. Overall, the impact of the accrual accounting has been modest versus the cash accounting basis.

Of the bequest total of £440,000, £200,000 was invested in each of the COIF Property Fund and M&G Charifund to obtain both dividend income and capital growth, the dividend income to finance day to day running costs of the museum. The balance was placed on cash deposit with CAF Bank to provide a liquidity buffer. The impact on investment values of the Russian invasion of Ukraine has impacted on markets worldwide and the overall value of the Charity’s investments which have shown a reduction in value of £69,958 during the year compared to FY21’s increase of £20,139. The trustees keep the value of its investments under regular review. It is the intention to utilise part of the investment portfolio in financing repairs and improvements to the museum during 2023 to both preserve the fabric of the museum building and improve the showcasing of exhibits and visitor experience.

The asset base of the Charity is much enhanced by the bequests and strong liquidity is maintained through readily available cash reserves with CAF Bank and COIF Deposit Fund. The freehold value of 25 The Embankment is held in the balance sheet at its original probate value and the trustees believe there is considerable hidden value should a revaluation be undertaken.

Anthony Nash- Treasurer

Reserves and Reserves Policy

Given previous very modest levels of expenditure and strong asset base, the trustees have not maintained a formal reserves policy. Whilst expenditure (other than capital investment) will likely increase in FY23 so will the level of dividends received which should cover the expected running costs. Reserves can be liquidated at relatively short notice should major financing needs arise. In the medium term it is the Charity’s objective to ensure that investment income covers day to day running expenses.

Trustees' responsibilities statement

The Trustees are responsible for preparing the Trustees' Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The Charity trustees are required to prepare financial statements for each year which give a true and fair view of the state of affairs of the Charity and the incoming resources and application of resources, including the income and expenditure, for that period.

In preparing these financial statements, the Trustees are required to:

select suitable accounting policies and then apply them consistently;
observe the methods and principles in the applicable Charities SORP;
make judgments and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed, and explained in the financial statements;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity's transactions and disclose with reasonable accuracy at any time the financial position of the charity. They are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Independent Examiner

Each of the persons who is a Trustee at the date of approval of this report confirms that:

so far as they are aware, there is no relevant financial information of which the Charity's Independent Examiner is unaware; and
they have taken all steps that they ought to have taken as a Trustee to make themselves aware of any relevant financial information and to establish that the charity's Independent Examiner is aware of that information.

The Trustees' Annual Report was approved on 26 June 2023 and signed on behalf of the Board of Trustees by:

………………………………………………………………………. David Cornwell - Chairman For the Trustees

The Twickenham Museum

Statement of Financial Activities for the Year Ended

31 December 2022

		Unrestricte	Restricted		Total	Total
		d Funds	Funds		Funds	Funds
	Not	2022			202	20
	e		2022		2	21
		£			£	£
			£
Income &
Expenditure
Donations &	1	440,652		0	440,652	1,457
Legacies
Charitable	2	456		0	456	297
Activities
Investment	3	23,303		0	23,303	9,179
Income
				0
Total Income		464,411			464,411	10,933
Expenditure
				0
Expenditure on	4	11,711			11,711	4,809
Charitable
Activities
Total		11,711		0	11,711	4,809
Expenditure
Net Surplus		452,700		0	452,700	6,124
Change in Value	5	(69,958)		0	(69,958)	20,139
of investments
Net change in		382,742		0	382,742	26,263
movement of
funds

Reconciliation of
funds
Total funds	427,176	427,176	400,913
brought forward
Total funds	809,918	809,918	427,176
carried forward

Because of the exceptionally large donations received in the year, these Accounts are required to be drawn up on the earnings basis, with the comparative figures shown for the preceding year similarly restated. It is anticipated that next year’s Accounts will revert to the cash basis.

The Twickenham Museum

Balance Sheet at 31 December 2022

		2	2
		022	021
		£	£
	No
	te
Fixed Assets
Tangible	6	147,142	147,142
Assets
Investments	7	555,367	225,326
		702,509	372,468
Current Assets
Debtors &	8		1,057
Prepayments
Cash at bank	9	107,469	53,651
Creditors and		60	0
accrued
charges: falling
due within 1
year
Net Current		107,409	54,708
Assets

Net Assets 809,918 427,176 Total Charity 809,918 427,176 Funds

These financial statements were approved by the Board of Trustees and authorised for issue on 26th June 2023 and are signed on behalf of the Board by:

…………………………………………………….

Anthony Nash Treasurer

David Cornwell Chairman

The Twickenham Museum

Accounts for the Year Ended

31 December 2022

Notes to the Financial Statements

Accounting policies

Basis of preparation

The financial statements have been prepared on the historical basis and on the earnings basis in accordance with FRS102 with items recognised at cost or transaction value unless otherwise stated in the relevant notes to these accounts. The financial statements are prepared in sterling, which is the functional currency of the entity.

Going concern

There are no material uncertainties about the Charity's ability to continue its activities.

Fund accounting

Unrestricted funds are available for use at the discretion of the Trustees to further any of the charity's purposes.

Restricted funds are those funds that can be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor. There are currently no Restricted funds.

Incoming resources

All incoming resources are included in the statement of financial activities when entitlement has passed to the Charity, it is probable that the economic benefits associated with the transaction will flow to the charity and the amount can be reliably measured. The following specific policies are applied to particular categories of income:

income from donations or grants is recognised when there is evidence of entitlement to the gift, receipt is probable and its amount can be measured reliably.
legacy income is recognised when receipt is probable and entitlement is established.

Resources expended

Expenditure is recognised on an earnings basis as the liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is classified under headings of the statement of financial activities to which it relates:

expenditure on charitable activities includes all costs incurred by the charity in undertaking activities that further its charitable aims, including those support costs and costs relating to the governance of the charity apportioned to charitable activities.
other expenditure includes all expenditure that is neither related to raising funds for the charity nor part of its expenditure on charitable activities.

Tangible assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. The freehold of 25, The Embankment, Twickenham is held at original probate cost and has not been depreciated since the current value is considered to be significantly in excess of balance sheet valuation.

The trustees have not hitherto ascribed any value to Heritage Assets held by the museum as exhibits and collections. All such assets have previously been acquired free of cost and have been insured for a total sum of £15,000.

Notes to the Accounts

1. The Charity received during the year bequests of £425,000 from Freda Hammerton and of £15,010 from Trevor Sutton. Both bequests were made on an unrestricted basis. In addition, the charity received donations from museum visitors and other donations and voluntary gifts.

2. Charitable activities consisted of the sale of publications and postcards.

3. Investment income consisted of dividends from the charity’s investments in the M&G Charibond, M&G Charifund and COIF Property Investment funds and interest income from its investment in the COIF Property investment Fund (see also Note 7 below) and CAF Bank Gold deposit account.

4. Expenditure related to day to day expenses of running the museum and contractor fees for a part time manager engaged in November 2022.

5. Change in value of investments . During the year the Charity invested a further £200,000 in the COIF Property Fund and £200,000 in the M&G Charifund. Investments were valued at mid price as at 31 December 2022 and compared to unit fund prices as at the previous financial year end or the date of further investment during the year. The fall in value reflects the market wide fall in investment values following the Russian invasion of Ukraine. The board keeps values under review on a regular basis to decide whether to maintain the investments or diversify into other forms of investment. The combination of funds is designed to produce long term capital growth and dividend income which will be used to finance the museum’s main running costs.

Decrease in Value: COIF Property Fund £44,925; M&G Charibond £4,816; M&G Charifund £20,218

The Charity owns the freehold of 25 The Embankment Twickenham, TW1 3DU which is held in the Balance Sheet at probate value as at 1994. The property was originally a dwelling house, is Grade II listed and has been converted into use as a museum. The trustees believe the property has considerable hidden value if revalued a today’s open market rate.
Investments consist of the following:

COIF Property Fund £232,797 including a new investment of £200,00 made in May 2022

M&G Charibond Fund £40,561

M&G Charifund Fund £ 282,010 including a new investment of £200,00 made in May 2022

COIF Property Fund advised on 18 October 2022 that the redemption notice period to redeem funds had been extended from 90 days to six months. There is therefore a degree of illiquidity in this asset class. The trustees believe that there are sufficient other liquid assets in the form of cash deposits and the Charibond and Charifund funds to meet the foreseeable needs of the charity.

Debtors & Prepayments : represents prepayments for items of expense incurred in Financial Year 2021 but related to the 2022 Financial Year, and the net balance of prepayments and accruals for Financial Year 2022.
Cash at Bank : the charity has two cash deposits: i) the COIF Deposit Fund of £48,450 and ii) the CAF Bank Gold Account of £58,819. In addition, a constant balance of £200 is maintained on the CAF Bank Cash account with an automatic sweep between the Cash and Gold (Deposit) account.

Independent Examiner’s Opinion

I report to the trustees on my examination of the accounts of the above charity (“the Trust”) for the year ended 31 December 2022.

Responsibilities and basis of report As the charity's trustees, you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (“the Act”).

I report in respect of my examination of the Trust’s accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.

Independent Examiner's statement

The charity’s gross income exceeded £250,000 and I am qualified to undertake the examination by being a Fellow of the Institute of Chartered Accountants in England and Wales.

I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination which gives me cause to believe that in any material respect:

the accounting records were not kept in accordance with section 130 of the Charities Act; or
the accounts did not accord with the accounting records; or
the accounts did not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair’ view which is not a matter considered as part of an independent examination.

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

Signed:

Date: 26[th] June 2023

Name: Maurice Parry-Wingfield

Relevant Fellow of the Institute of Chartered Accountants in England and professional Wales qualification(s) or body (if any):

Address: 11 Montpelier Row Twickenham TW1 2NQ